Congressional Record United States Th of America PROCEEDINGS and DEBATES of the 110 CONGRESS, SECOND SESSION

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E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 110 CONGRESS, SECOND SESSION

Vol. 154 WASHINGTON, THURSDAY, APRIL 3, 2008 No. 52 Senate The Senate met at 9:30 a.m. and was appoint the Honorable MARK L. PRYOR, a government owns and the cost of govern- called to order by the Honorable MARK Senator from the State of Arkansas, to per- ment land ownership to taxpayers. A bill (S. 2811) to require citizens’ approval L. PRYOR, a Senator from the State of form the duties of the Chair. of federal government land grabs. Arkansas. ROBERT C. BYRD, President pro tempore. Mr. REID. Mr. President, I object to PRAYER Mr. PRYOR thereupon assumed the further proceedings regarding these chair as Acting President pro tempore. bills en bloc. The Chaplain, Dr. Barry C. Black, of- f The ACTING PRESIDENT pro tem- fered the following prayer: pore. Objection being heard, the bills Let us pray. RECOGNITION OF THE MAJORITY will be placed on the calendar. O Thou Giver of every good and per- LEADER f fect gift, satisfy the hungers of our The ACTING PRESIDENT pro tem- HOUSING DEBATE hearts, minds, and souls. Make us to lie pore. The majority leader is recog- down in green pastures and restore our nized. Mr. REID. Mr. President, the Senate souls. Lead us in the paths of right- is evenly divided: 51 Democrats, 49 Re- f eousness that we may live with integ- publicans. Is the bill that is going to be rity. SCHEDULE the subject matter of the housing de- Guide our Senators. Grant them the Mr. REID. Mr. President, following bate perfect? It is not perfect. But with courage to give themselves to the dis- my remarks and those of the Repub- the Senate as evenly divided as it is, cipline of introspection that enables lican leader, if he chooses to make any we have to work on a compromise them to hear Your voice. Awaken them remarks, the Senate will adopt the mo- basis. We are not going to get every- to the fact that truth is more than the- tion to proceed to H.R. 3221 and Sen- thing we want. The Republicans are ory but commands a commitment. Help ator DODD or his designee will be recog- not going to get everything they want. them to discipline themselves to follow nized to offer a substitute amendment I was interested to see people in the the truth wherever it leads. Motivate on his behalf and that of Senator SHEL- press today telling us how they could them by the magnitude of the respon- BY. Following opening statements by have done a much better job on this sibilities You have entrusted to them. Senators DODD and SHELBY, Senator work Senators DODD and SHELBY have We pray in Your great Name. Amen. DURBIN will be recognized to offer an done. I am satisfied with what we have. Is it everything I want? Of course not. f amendment related to bankruptcy. If I were a dictator, I would come up f PLEDGE OF ALLEGIANCE with a different bill. But I am not. The MEASURES PLACED ON THE CAL- The Honorable MARK L. PRYOR led Senate is such that everyone’s rights ENDAR—S. 2807, S. 2808, S. 2809, S. the Pledge of Allegiance, as follows: are protected. When you have a body 2810, AND S. 2811 I pledge allegiance to the Flag of the that is so evenly divided, with the pro- United States of America, and to the Repub- Mr. REID. Mr. President, I under- cedures we have in the Senate, there lic for which it stands, one nation under God, stand there are five bills at the desk has to be compromise. indivisible, with liberty and justice for all. due for a second reading. I admire and congratulate Senators DODD and SHELBY for working this out f The ACTING PRESIDENT pro tempore. The clerk will read the titles of to the point where we are. I have com- APPOINTMENT OF ACTING the bills for a second time. plimented them on a number of occa- PRESIDENT PRO TEMPORE The legislative clerk read as follows: sions. The last time I did it was last The PRESIDING OFFICER. The A bill (S. 2807) to protect the liberty and night, indicating what good work they clerk will please read a communication property of all Americans. have done. But, also, to get this bill where it is to the Senate from the President pro A bill (S. 2808) to require that citizens within a National Heritage Area are in- now, we needed cooperation from other tempore (Mr. BYRD). formed of the designation and that govern- people: for example, those who run the The legislative clerk read the fol- ment officials must receive permission to Finance Committee—Senator BAUCUS lowing letter: enter private property. and Senator GRASSLEY. There are some U.S. SENATE, A bill (S. 2809) to ensure that there are no tax measures in this housing bill, and PRESIDENT PRO TEMPORE, adverse effects of a National Heritage Area Washington, DC, April 3, 2008. designation to local communities and home they had to sign off on that. They did To the Senate: owners. that. Their staffs worked hand in hand Under the provisions of rule I, paragraph 3, A bill (S. 2810) to require an annual report with the Banking Committee staff, and of the Standing Rules of the Senate, I hereby detailing the amount of property the federal we have their product.

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

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VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00001 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.000 S03APPT1 ccoleman on PRODPC75 with SENATE S2368 CONGRESSIONAL RECORD — SENATE April 3, 2008 I look forward to a good debate on CONGRATULATING SENATORS (The amendment is printed in today’s this legislation. There will be amend- SHELBY AND DODD RECORD under ‘‘Text of Amendments.’’) Mr. DODD. Mr. President, let me, ments offered to take provisions out of Mr. MCCONNELL. Mr. President, let the bill. There will be amendments of- me begin this morning by congratu- first of all, begin by thanking the majority leader, Senator REID, and the fered to put provisions in the bill. That lating my good friends Senator SHELBY Republican leader, Senator MCCON- is the way it should be. I would hope and Senator DODD for their great work that people would be willing to have in getting us to the point we are today. NELL. We would not be where we are at this moment without their leadership. relatively limited time. We wish to Of course, Senator GRASSLEY and Sen- So any discussion of where we are on move forward on this bill as quickly as ator BAUCUS were deeply involved in we can. that with regard to the tax portion of this matter begins with them and their At this stage, I have had a number of the bipartisan bill we have before us. I staffs for helping us organize the effort conversations with the Republican think this is a good start to the debate. over the last number of hours, begin- leader as to what we hope can be ac- I also say to my good friend, the ma- ning earlier this week, as we returned complished in this bill. I think at this jority leader, I think this is a good ex- from the 2-week Easter break, to try to time it is far too early to talk about ample of how we can work together and fashion together a proposal, at least on timelines and when, in fact, we are accomplish something on an important matters with which there was common going to get it done. We do know there issue for the country. We know now we agreement. As the leader has pointed out, there is an emergency out there and we need will have amendments on both sides be- are many matters here with which to do it as quickly as we can. I applaud cause that is the way the Senate oper- there is significant disagreement. They the bipartisan work, as I have indi- ates. It is my hope we can get to the are not part of the pending substitute. cated. I think we need to continue this end of the trail here in the very near Senator SHELBY and I and our respec- effort of bipartisanship. I think it is future and have a bipartisan bill we tive staffs, along with many others— critical to do this, to complete this ac- can all feel proud of. certainly the Finance Committee, be- tion on this important legislation, and I want to begin the debate by again cause there are portions of this that in an expedited manner. thanking Senator SHELBY and Senator are exclusively the jurisdiction of the DODD for getting us to this point. We I have not had the chance privately Finance Committee—have worked over look forward to moving forward as rap- to ask the Republican leader—and I the last 2 days to find those issues upon idly as possible. normally do not do this—but I will vio- which there was common agreement, late my own rules today and ask the f or at least levels of spending on which Republican leader if he could agree to a RESERVATION OF LEADER TIME there was common agreement, to move unanimous consent to provide for hous- forward on as the centerpiece, with the ing-related amendments only. The ACTING PRESIDENT pro tempore. Under the previous order, the full understanding our colleagues will The ACTING PRESIDENT pro tem- leadership time is reserved. offer various other ideas either to in- pore. The Republican leader. crease amounts of money or to add ad- f Mr. MCCONNELL. Mr. President, let ditional provisions to this bill. me say my expectation is that the NEW DIRECTION FOR ENERGY What is important here is we are fi- amendments that will be offered to the INDEPENDENCE, NATIONAL SE- nally working on this issue. As I point- bill will be housing-related, but I am CURITY, AND CONSUMER PRO- ed out earlier this week, we have close not in a position at the beginning of TECTION ACT AND THE RENEW- to 8,000 foreclosures a day occurring in the bill to enter into such a consent ABLE ENERGY AND ENERGY this country, not to mention, of course, agreement. I think there is a wide- CONSERVATION TAX ACT OF 2007 the residual effects spreading across spread feeling on both sides of the aisle The ACTING PRESIDENT pro tem- the economy of our Nation—the con- that we need to get an accomplishment pore. Under the previous order, the tagion effect affecting students loans, here, that we need to do it on a bipar- Senate adopts the motion to proceed to car loans, people who are current in tisan basis. But I am not in a position H.R. 3221, which the clerk will report. their mortgage but are watching the other than to say to my good friend The legislative clerk read as follows: value of their house decline because that is my expectation. I am not in a A bill (H.R. 3221) moving the United States their neighbor’s house is in foreclosure, position to agree to such a consent toward greater energy independence and se- watching home sales drop. This is in here at the outset of the bill. curity, developing innovative new tech- the midst of an economy that is stum- nologies, reducing carbon emissions, cre- bling along, to put it mildly, with a fis- The ACTING PRESIDENT pro tem- ating green jobs, protecting consumers, in- cal situation in dire straits. The dollar pore. The majority leader. creasing clean renewable energy production, has been weakened. Inflation is rising. Mr. REID. Mr. President, we have an and modernizing our energy infrastructure, Unemployment rates are increasing. extremely important hearing that is and to amend the Internal Revenue Code of Consumer confidence is at a low point, going to start at 10 o’clock or there- 1986 to provide tax incentives for the production of renewable energy and energy con- the lowest it has been in years. abouts, being conducted by the two servation. So it has been critical, in my view, managers of this bill. The assistant aside from the specifics which you will The ACTING PRESIDENT pro tem- leader, Senator DURBIN, has agreed to hear about over the coming days, that pore. The Senator from Connecticut. manage this bill until these two good we do everything possible to remind men can complete enough of their work AMENDMENT NO. 4387 the American people that in this body at the hearing to come back and man- (Purpose: To provide a complete substitute) Democrats and Republicans can come age the bill. Senator DURBIN is experi- Mr. DODD. Mr. President, I have an together to try to take intelligent enced, and he will handle things ex- amendment at the desk. steps to move against the flow of the tremely well, as well as anyone could I call up that amendment. economy heading in the wrong direc- do that. I appreciate his stepping in. He The ACTING PRESIDENT pro tem- tion. had his own schedule, and he set that pore. The clerk will report the amend- This proposal we bring to you as a aside to work on this bill. I appreciate ment. substitute this morning on behalf of that very much. The legislative clerk read as follows: myself and Senator SHELBY, along with The Senator from Connecticut [Mr. DODD], the leadership, is that first major step. f for himself and Mr. SHELBY, proposes an Is it the end game? Absolutely not. Are amendment numbered 4387. there ideas I would love to have had in- RECOGNITION OF THE MINORITY Mr. DODD. Mr. President, I ask unan- cluded in this bill? Absolutely. Are LEADER imous consent that reading of the there matters here the Senator from amendment be dispensed with. Alabama would like to have included The ACTING PRESIDENT pro tem- The ACTING PRESIDENT pro tem- or excluded? Absolutely. But we real- pore. The Republican leader is recog- pore. Without objection, it is so or- ized we were not going to be able to do nized. dered. that in this discussion over the last 2

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00002 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.004 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2369 days, that we needed at least to come GRASSLEY, who did very good and im- Tax provisions. Senator BAUCUS and up with a core group of issues around portant work in the Finance Com- Senator GRASSLEY worked out a pack- which there was general agreement, mittee over this same period of time, age of tax provisions as well. I will and then from that move forward. That the fruits of which are also reflected in mention them briefly and let them de- is the good news. the package that is now before us in scribe the provisions more fully them- A month ago, we had a cloture mo- the substitute. This package includes a selves. They include a home buyer tax tion on going to a housing debate. It number of important provisions: credit to incentivize the purchase of was defeated. You could not even get to Foreclosure mitigation fund—$4 bil- foreclosed properties, the Isakson- a debate on this housing crisis. That lion for towns and cities to acquire Stabenow-Cardin proposal. No. 2 is a now is behind us. There are matters foreclosed and abandoned properties, property tax deduction to help people that occurred over the last several renovate them, and put them in the offset rising mortgage payments. We weeks that I think probably had a lot hands of qualified home buyers or turn will provide a modest tax cut to mid- of influence on what has caused us to them into rental housing as the local dle-income families of $100 to $250 who come here this morning. The Bear markets dictate. That is important be- don’t already itemize their deductions. cause when you have a foreclosed prop- Stearns, JPMorgan situation, which we Senator BAYH and Senator BAUCUS of- will be hearing about later this morn- erty in the neighborhood, every other fered that idea. Mortgage revenue ing in the Banking Committee, was property in that neighborhood declines bonds to help communities raise re- certainly one. I suspect the other in value immediately. So trying to do sources to invest in affordable mort- something about foreclosed properties major event was the fact that we went gages and rental housing—it goes right to put them back on the market and home for a couple weeks. to the heart of the problem we are get them back with people living in There is nothing like going home and talking about. Net operating loss them, either by purchase or rental, to get a message. Members went back carryback will help businesses ride out home—Democrats and Republicans— which will also benefit the neighbors in that community, not to mention prop- the current downturn. and they heard from their constitu- This package is a good start. I wish erty taxes, services, and the like—it is ents. They watched what happened on to thank as well Senator KERRY, Sen- a major provision, one which I am glad Wall Street in New York when all of a ator AKAKA, and Senator NORM COLE- is included. sudden there was an arrangement, Foreclosure prevention counseling— MAN for talking about veterans and which I think was the right one, prob- $100 million of additional funding in making sure those serving our country ably, with some minor differences, that fiscal year 2008 to bring borrowers and in Afghanistan, Iraq, and elsewhere are saved a major collapse in our financial lenders to the table to work out terms not going to have their properties fore- institutions. that will prevent foreclosures. This closed in the midst of all of this. But they asked the very legitimate brings the budget for foreclosure pre- There are other provisions as well question: If it was good enough for peo- vention counseling to $280 million for that I am not going into here, but ple to get together to solve a problem this fiscal year. That is up from $42 needless to say, again, these are items on Wall Street, what about the prob- million last year. Now, would we have upon which we could agree, both Demo- lem on Main Street? What are you liked to have done more? Absolutely, crats and Republicans, to serve as the doing here to see to it that I can stay we would have liked to have done core of the coming debate. Our action in my home, that our neighborhood is more. Senator SCHUMER and Senator today does not preclude, as I have said, not going to collapse—that our taxes MURRAY wanted $200 million. My col- further legislative action by the Sen- and properties and neighborhoods are league from Alabama will tell you ate. In fact, I am committed to going not going to further deteriorate? So I there was not a lot of appetite for this forward and doing more. In fact, I will suspect more than anything else going proposal here, to put it mildly, so we hold a hearing next week on the home home made a big difference, and we are compromised between $200 million and preservation idea that a number of here this morning to then talk about virtually zero and got it to $100 mil- Democrats and Republicans are at- what we can do. lion. I am told by the nonprofits that tracted to. Senator SHELBY, to his Two days ago, the majority leader there are adequate funds here now in credit—I appreciate his willingness to and the Republican leader asked Sen- the calendar year to assist in the coun- be a part of that debate and discussion ator SHELBY and myself to put together seling effort, which can make a huge during the coming days. There was a a consensus package to move this proc- difference. reluctance, and I would have loved to ess forward, and I am pleased to say we FHA modernization. The bill also in- have included that in this package. have complied with the wishes of the cludes the FHA modernization legisla- There is resistance to that idea at this two leaders in crafting a compromise tion which passed this body 93 to 1 last juncture, but I am still determined to proposal that we believe merits the full fall, with some improvements. For ex- do everything I can in the coming days support of this body. ample, we increased the FHA loan lim- to have that included as well, to see to Again, I thank the majority leader its from the current $362,000 to as high it that we really get a floor and a bot- and the Republican leader for their as $550,000. This will make FHA more tom on this issue as quickly as we can. leadership and support in this effort. available and usable to people who live My colleague from Alabama is here. We worked very intensely through in higher cost States. It would also We are both going to be going over to Tuesday night until yesterday evening strengthen the solvency of the FHA chair a hearing, so I want to give him to put together this package that is be- fund. FHA can help an awful lot of peo- some time to discuss this. fore us. This effort built on the consid- ple seeking safe, solid, affordable, Let me thank Senator REID and Sen- erable time that we have spent in the fixed-rate mortgages. We think it is a ator DURBIN for their efforts. They will Banking Committee over the past 15 very important component to our com- be offering ideas as well to improve and months, I might add, in hearings, prehensive strategy. strengthen this legislation. Some of meetings, and briefings, on the causes Better disclosure. Senator JACK REED these ideas we will welcome, others we of and remedies to the current eco- has included a provision in the legisla- will oppose. nomic crisis. Senator SHELBY and I tion that improves disclosure. It up- Senator SHELBY and I will consult said yesterday that at times of crisis dates penalties for lenders who fail to with each other in that process to de- such as this, inaction is not an option. make disclosures. These kinds of dis- termine how to go forward, but we With more than 7,000 Americans going closures might have helped prevent want to stick with this core idea if we into foreclosure every single day, true some abusive lending if they had been can. Other ideas that come to the table leaders cannot simply turn passively in place in years past. I would point we will certainly consider and may, in away. Our agreement takes important out that I think another Senator also fact, be added to the package, but I action to address symptoms of this cri- had disclosure provisions in this bill, think we want to try to keep this core sis in a constructive and sensible man- and this is a compromise between Sen- package whole and together if we can, ner. ator REID and a Republican Senator rather than having it unravel. I would be remiss if I did not also who was also interested in disclosure So with that, I thank the majority mention Senator BAUCUS and Senator language. leader, the Republican leader, and I

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We have worked hard, mittee is a good committee with good sions prepared in a bipartisan fashion saved hard, and will be putting down a 20 working members who care about these by the chairman and ranking member percent down payment on the home with a 30 issues, and we are determined to make of the Finance Committee, Senator year fixed mortgage. An important factor in a difference. BAUCUS and Senator GRASSLEY. our being able to purchase a home is how With that, I yield the floor. I believe this is a focused and tar- much the market has softened. House prices The ACTING PRESIDENT pro tem- geted piece of legislation that will adare dropping because the market was incred- ibly inflated. pore. The Senator from Alabama is rec- dress in an appropriate manner a num- Yes, people are losing their homes to fore- ognized. ber of the difficulties we are now facing closure, but more often than not they Mr. SHELBY. Mr. President, this in the housing market. There is no shouldn’t have been in those homes in the morning I am pleased to join my friend doubt that we are experiencing serious first place. I have very little sympathy for and colleague, the chairman of the economic stress in communities across someone who took out two risky mortgages Senate Banking Committee, Senator the Nation. As I said in the beginning to cover 100 percent of the cost of a home DODD, in supporting the pending of my remarks, the American people that they could not afford. amendment. expect us here in the Senate to provide And the letter goes on: When a crisis such as the one we are effective and timely solutions. But I In fact, I would consider it an absolute slap now facing arises, I believe the Amer- would caution my colleagues here that in the face to see my tax dollars being spent on people to allow them to stay in the home ican people expect us to provide effec- while we are in agreement on the meas- tive and timely solutions. Chairman they can’t afford when I have been saving for ures contained in this bill, there is a years to get into the home that I hope I can DODD and I have worked together to de- line that I believe we should not cross. afford. velop a package of targeted measures That line is represented by a taxpayer- The letter goes on: intended to help stabilize and strength- funded bailout of investors or home- I recognize that much of the debate centers en the housing and the financial mar- owners who freely and willingly en- around predatory lending practices, and peo- kets. We chose not to pursue partisan tered into mortgages that they knew ple being duped into a mortgage they didn’t goals here. Instead, we are focusing our or should have known they could not fully understand. I feel for those people. I efforts on achieving the best possible afford. Nor should we be using taxpayer really do. But there must come a point when results in a bipartisan fashion. I com- dollars to bail out financial institu- people take responsibility for their actions. mend the chairman for his willingness tions that also contributed to this If you didn’t read your mortgage before you signed, you made a big mistake, and now are to work with me in this manner. problem. Chairman DODD and I will going to pay for it. It is not the Federal Gov- The amendment before us provides shortly be attending a Banking Com- immediate help to the marketplace by ernment’s job to save people from the nat- mittee hearing in the Senate where we ural consequences of their actions. reforming the Federal Housing Admin- will be examining that very question in The letter reads on: istration, allowing it to provide greater relation to the Bear Stearns situation. liquidity and thereby enhancing the As you look for a solution to the current While there are a large and growing situation please consider the position many options available to America’s home- number of homes entering foreclosure, of us are in. We work hard, we save, and we owners. It also provides additional I believe we must remember that the buy a home we can afford. Do you really funding for foreclosure prevention vast majority of homeowners are living want to punish us by using our tax dollars in counseling, which will hopefully help within their means and are making a bailout for those who got in over their many homeowners stay current on their mortgage payments. While some heads? Do you want to reward poor fiscal dis- their mortgages and be able to remain would argue that we have a responsi- cipline and encourage people once again to in their homes. bility to aid those who find themselves bite off more than they can chew knowing In order to prevent this situation that Uncle Sam is going to come to the res- underwater on their mortgages or un- cue? I believe that people like me are very from repeating itself, the amendment able to afford their increasing pay- much in the majority in this Nation. But the increases the disclosures—this is very ments, I would argue, on the contrary, media attention isn’t going to focus on us. It important—disclosures made to con- that we also have a responsibility to doesn’t make for good TV. They are going to sumers when they obtain mortgages those who have made prudent financial focus on the family that is losing their home and close their loans. I believe that decisions and those who may be look- because of ‘‘corporate greed.’’ No mention giving consumers; that is, buyers, more ing to enter the housing market for the will be made of the family that simply want- information and greater ability to un- first time. There is a large group of ed more than they can afford and now has to derstand the choices they are making pay the price. Americans who see falling home prices Please be an advocate not only for fiscal will help them avoid the pitfalls and not only as an opportunity to buy for discipline and responsibility in the govern- bad decisions many underinformed con- the first time but also as an oppor- ment, but in each and every American as an sumers made in the recent past. tunity to move up. We must not forget individual. To better protect our soldiers, sail- them in our zeal to do something here. I think that is a good letter. I believe ors, and airmen, the amendment ex- Recently, I received a letter from an these are wise words, and I believe they tends additional consumer protections individual stationed in Japan. I think are words that I hope we can keep in and provides those returning from com- he very effectively makes the case for mind to encourage my colleagues as we bat a chance to get back on their feet the other side of the housing market, work through this legislation. before they face foreclosure. That is and I would like to share this with my I yield the floor. the least we can do. Senate colleagues. I will read it into The ACTING PRESIDENT pro tem- In an effort to provide communities the RECORD: pore. The Senator from Illinois is rec- with the ability to clean up the damage Dear Sir: While I’m not a resident of your ognized. caused by the foreclosures that have State of Alabama, I would like to share my AMENDMENT NO. 4388 already occurred, we have included opinion with you on a very important issue. (Purpose: To address the treatment of pri- funding to allow States and commu- My wife and I are very concerned with the mary mortgages in bankruptcy, and for nities to buy and repair foreclosed resi- direction government policy seems to be other purposes) dences. Attached to this funding is a taking on the debate over the ‘‘housing cri- Mr. DURBIN. Mr. President, pursu- requirement that any profits from the sis.’’ I am an employee of the Department of ant to the unanimous consent agree- sale of properties must be used to buy Defense and I am serving overseas in Japan. Before we came here, we lived in Wash- ment, I send an amendment to the and repair additional properties, simi- ington, DC, an area with a very high cost of desk. lar to a revolving fund. I believe that living. From the very first paycheck I re- The ACTING PRESIDENT pro tem- reuse of this funding in this manner ceived we have been saving every month for pore. The clerk will report the amend- will maximize the impact of these dolan eventual down payment on a home. We ment.

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00004 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.007 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2371 The legislative clerk read as follows: promise, this effort, I found there was issues of our time, and those following The Senator from Illinois [Mr. DURBIN], for a glaring omission—my amendment debate in the gallery or through C– himself and Mr. REID, proposes an amend- was gone. The bankruptcy amendment SPAN would hear both sides of the de- ment numbered 4388. I offered on the original bill had been bate and form their own opinions and Mr. DURBIN. Mr. President, I ask stripped from it. I wasn’t surprised. feel like we were doing our job. Let’s unanimous consent that the reading of There was a genuine effort and under- do that on this amendment. the amendment be dispensed with. taking to find common ground between On the bankruptcy amendment I The ACTING PRESIDENT pro tem- Republicans and Democrats. Clearly, have offered with Senator REID, let’s pore. Without objection, it is so or- there was opposition to my proposal. I have that kind of debate. dered. had an option at that point, as a Sen- I am going to yield now to the Sen- (The amendment is printed in today’s ator—and every Senator has this op- ator from Oklahoma at this point and RECORD under ‘‘Text of Amendments.’’) tion—to stop the train, to hold things ask unanimous consent to reclaim the Mr. DURBIN. Mr. President, I am up, and say that is the end of the story. floor after he completes his remarks. going to make a brief opening state- I have seen it done, where some Sen- The ACTING PRESIDENT pro tem- ment because I know the Senator from ators have made a career by being ob- pore. Is there objection? Without objec- Oklahoma, Mr. INHOFE, would like to stinate, saying nothing will happen tion, it is so ordered. take the floor and has to go to a com- until I get my way. Sometimes they Mr. DURBIN. Mr. President, I ask the mittee meeting. I am going to stay prevail but not always. The net result Senator, would he state publicly the here to manage this bill while Senators is an elongated Senate process and a time he thinks he might need? DODD and SHELBY are off to a Banking lot of wasted time. Mr. INHOFE. Yes. It is my under- Committee hearing with the head of Those who follow the Senate pro- standing we had up to 30 minutes. It is the Federal Reserve, Mr. Bernanke. ceedings on C–SPAN may be familiar not my intention to take that much The rules of the Senate are written with the so-called quorum call, which time, but there might be someone else so that virtually any Senator can stop basically means nothing happens but on our side who will want some of the the train. It is a strange way to do for a clerk who, every 5 or 10 minutes, time, in which case I will yield to business around here, but it is the way reads a name to remind people we still them. So it could take that long. we have done it historically. The so- have a pulse in the Senate. But that is Mr. DURBIN. Then, I ask unanimous called filibuster is where a Senator can a delay, it is a lack of effort, and it is consent that when 30 minutes has ex- take to the floor and say: Stop. I don’t a waste of time. So I made the decision pired, or if the Senator has not used all want this to go forward. Literally, that not to use my right as a Senator to that, I be allowed to reclaim the floor interrupts the proceedings of the Sen- stop this bill. I thought that would and describe the amendment I have ate until that Senator yields the floor have been selfish, self-centered and, laid at the desk. or is persuaded by an agreement to co- honestly, didn’t serve the purpose we The ACTING PRESIDENT pro tem- operate with the progress that is need- are all trying to serve. All I asked in pore. Without objection, it is so or- ed. return was to be able to offer this dered. This bill is critically important for amendment. All I ask my colleagues, in The Senator from Oklahoma is recog- America. It is relating to our housing return, is to give me a vote. I don’t nized. crisis—and it is a crisis. We proposed, know if I can prevail. It has substantial VICTORY IN IRAQ AND THE MIDDLE EAST on the Democratic side, a housing opposition. I wish to give my point of Mr. INHOFE. Mr. President, I thank stimulus bill that had five or six com- view, state my case for the amend- the Senator from Illinois for his co- ponent parts and that I thought was a ment, and I welcome those who are op- operation. As I said, if we have any good, fair, and important piece of legis- posed to do the same. other Members of our side who wish to lation. It included a provision that In fact, I am prepared to do some- come down and talk about this, there may have been one of the major provi- thing that is rarely done on the floor of was that length of time set aside. So I sions of that bill I had authored related the Senate today. I am prepared to reserve that time for anybody else who to the Bankruptcy Code. It turns out stand here and debate my amendment. wants to speak. If anybody is listening this was the most controversial part of I welcome those who oppose it, and I and they wish to use some of this 30 the Democratic housing stimulus pack- would debate it on the merits of what minutes, they are welcome to do it. age. It drew more fire than anything I have to offer. You don’t see that I returned 2 days ago from Iraq. It is else. There were other provisions even much anymore in this great delibera- my 18th trip in the area, in the theater. the President objected to, but it tive body. People give their speeches Sometimes it was Afghanistan and seemed like most of the opposition was and leave. I will stick around and I will other areas, but it was in that zone directed at my amendment, which I be prepared to debate the merits of it there. I wished to take this oppor- will describe. and then I will accept the decision of tunity to kind of show where we are There came a time this week, the Senate as to whether this amend- today, how we got here, and where we though, where we were going to return ment should be included in the pack- are going to go. Some good things are to the bill with the controversy associ- age. happening over there. A lot of people ated with it—this Democratic stimulus All I ask is that, in good faith, those don’t believe it, and some people don’t package—where an opportunity pre- who oppose the amendment give us a want to believe it. sented itself. Senator SHELBY from timely debate and a vote. Let’s not The first thing I wish to do is try to Alabama, the ranking Republican on drag this out forever. There are Mem- give an indication as to where we start- the Banking Committee, approached bers on both sides of the aisle who ed and how this whole thing started. Senator DODD, the chairman, and sug- would like to offer their amendments. I We keep hearing quotes from people— gested we try to work this out. In fact, wish to say, at the outset, I will not be and misquotes—such as General Cody. that effort was undertaken with the unreasonable in the debate time I ask He is very certain the Army—even blessing and approval of both HARRY for. I hope we can reach an agreement though it is stressed—the soldiers REID, the majority leader, and Senator where we can actually have a complete themselves are in a position to con- MCCONNELL, the Republican leader. A debate and vote on this amendment by tinue as they have been. But there is a lot of hard work went into the com- 12:15 today. I am prepared to do that. problem. I think the world needs to promise. The staff, as usual, had to As I said, whatever the decision of the know how we got into this problem in burn the midnight oil to get this bill Senate, I accept it. Let’s move forward. the first place. ready—not just the Banking Com- When I ran for the Senate—I left the It began in the 1990s during the Clin- mittee but also the Finance Com- House of Representatives—I did it be- ton administration. I have a chart. mittee. The end result is the substitute cause I respected this institution. I When I make this statement, people amendment that is pending before the knew so many fine people who served tend not to believe it is true. At that Senate at this moment. here, and I looked forward to the possi- time, we downgraded the military, dur- I will tell you, as I walked through bility that on the floor of the Senate ing those 8 years in the 1990s, by ap- this substitute amendment, this com- we could engage and debate on the proximately $412 billion. If you look at

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00005 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.009 S03APPT1 ccoleman on PRODPC75 with SENATE S2372 CONGRESSIONAL RECORD — SENATE April 3, 2008 where we were during the beginning of and increasing the force strength and quarters. I took the little girl up to her the Clinton administration, that would capability of our American military. bedroom—she wanted to see her little be this black line on the chart. If you Nonetheless, it is very significant that animals—only to find they had used merely put into this chart the inflation people realize that when this adminis- her bedroom for a torture chamber, and rate and kept the funding of the mili- tration took over, and 9/11 came about, there were body parts just scattered tary at a constant level, it would be this was the condition of our military. around in different areas. When we saw this black line. However, the red line It should not have been that way. The this, we realized what an animal this down here was the Clinton budget. The terrorist movement was active through man we were dealing with was. budget came in—if you added up all 8 the 1990s and during the Clinton admin- After 1991, we went back several dif- years—at $412 billion below what the istration. ferent times, only to find that Saddam static budget would have been with in- In February of 1993, there was a car Hussein went after everybody who he flation added. bomb planted in the underground park- suspected had been opposed to him dur- I say that, and it sounds a little bit ing garage below the World Trade Cen- ing that first war, and he took care of like something people are hearing for ter. We knew that, and that was prior them in different ways. He tortured the first time. Yet it should not be the to 9/11. In June of 1996, Khobar Towers, thousands of people to death. You have first time. I know there wasn’t one we remember, were bombed by to have gone over there, as I did, and month that went by in the 1990s that I Hezbollah, with intelligence pointing looked into the graves and seen people didn’t come down to the Senate floor to support by al-Qaida. The embassies who had been buried alive. His sons and say this euphoric attitude that the in Kenya and Tanzania, in 1998, were would raid weddings that were taking Cold War is over and we don’t need a blown up, and that was done by the ter- place. They would rape the bride, and military anymore is something that is rorists. We all remember what hap- then they would bury her alive. People going to come back to haunt us. Well, pened in Yemen, when a small craft who were going to be tortured to death it has come back to haunt us. This is went into the USS Cole and killed a by Saddam Hussein were begging to be the problem we have. It is very much number of Americans. That was an- dropped into the vats of acid head first like during the Carter administration other terrorist attack. so they would die quicker, or into the in the 1970s, when President Ronald So this terrorism was going on all grinders, or the limbs that were cut off. during the time we were downsizing Reagan inherited a hollow force when We really cannot draw a distinction our military. The next thing we find he took office. It was. between al-Qaida and Saddam Hussein out is we are in a position where we When you are decreasing the funding in terms of the fact they are terrorists have a down-sized military, and 9/11 of the military over 8 years, you are and they have no regard for human life. comes along and 3,000 Americans are dropping behind in your modernization We just recently found an al-Qaida tor- killed by terrorists, and we found out program, and it means your force ture manual. The very things Saddam other terrorist attacks were planned at strength will be dropped, and it was a Hussein was doing in torturing people, that time. That is when this all start- downgrading of about 40 percent. they are doing now. Take a look at this One of the things that concerned me ed. chart. They are using flames on the at that time was there is this feeling I have to say—because right now I throat; cutting the feet open so if they among the American people that we am missing a hearing, which I will go live, they will never be able to walk have the best of everything; that when to when my remarks are finished—in again; hanging by the arms while they our kids go into combat, they are talking about this stressed situation of had electrodes going in; drills used on armed and equipped with the very best our Army, people need to understand their hands; and, of course, chopping equipment that is out there. Unfortu- how we got into this situation. After off their limbs. This is a manual teach- nately, that is not true. It should be my 18th trip over there, and every time ing them how to do it. We watched this true. I think the American people in talking to the young people over and saw this was happening. I would would demand—if they knew we were there, yes, they are stressed and their think any reasonable person would say having these problems—that we would families are stressed and, yes, they that alone would have been enough to give our kids the very best of every- have had more deployments, and they go in to stop that reign of tyranny that thing. should be 12 months instead of 15 I have always been very appreciative months but they understand this has to was taking place at that time. But of GEN John Jumper, who, in 1998, be done. We cannot compromise our there are other reasons too. might been the Vice Chief of the Air victory. So we went in after 9/11 for The second reason is there were Force. He stood up and said Russia was three reasons. training camps located in Iraq in making a strike vehicle—he was refer- First, we went in to liberate Iraq places such as Sargot, Ramadi, ring to the SU–25 and SU–30 vehicles— from a tyrannical leader. I remember Samarra, and one of them was in Salm- and selling them all over the world to so well in 1991, after the first Iraq war, on Pac. Salmon Pac is a community in countries such as China, or potential I had an occasion to be on the first Iraq where they have a fuselage of a 707 adversaries, which are better than our freedom flight. It was 1991. There were on the ground, and they were teaching best strike vehicles, the F–15 and the nine of us, Democrats and Republicans. people how to hijack airplanes. We will F–16. In some areas, they were better. We were the first ones, in fact, to go to never know whether the perpetrators He talked about the stealth capabili- Kuwait City, but the Iraqis did not of 9/11 were trained in Salmon Pac. We ties of what the Russians were making even know at that time the war was don’t know that. We never will know. as opposed to what we had. At that over. They were burning oilfields. The Nonetheless, those are four training time, there was one sale of around 240 day would turn into night because of camps in Iraq. They are all closed now. of these vehicles to the Chinese. So the smoke. That was the environment They are not training anymore. That they had equipment that was better we were in at that time. alone is certainly itself enough reason than ours. We had a person of nobility in Ku- to have gone in there. Another example is the NLOS can- wait who had a palace by the Persian The third reason is to help the Iraqi non. This is the best thing we have. Gulf who was with us. He had a 7-year- people create a free and democratic The Paladin is World War II tech- old daughter. They went with us. Alex- country. People say: Why do we care nology. With the Paladin, after every ander Haig, Tony Cuello was one of the about the Iraqis? We have problems at shot of this cannon, you have to swab party who went over. At that time, he home. Why are we spending all this the breach. You saw pictures of this in was, I believe, the Democratic whip of money? Why do we care about what prior wars. But this isn’t acceptable be- the House of Representatives. So it was kind of democracy they have? And they cause there are five countries making a a mixture of people. This man of nobil- thought it was impossible to start one, better one than we are making, includ- ity and his daughter wanted to see anyway. One reason is, if they do not ing South Africa. what their house looked like, if it was do it, it is going to be a problem area So what we have been attempting to torn up during the first gulf war. When for terrorists in the Middle East until do, after this period of time was over, we got there, we found out that Sad- they are fighting on our soil. The was to start upgrading, modernizing, dam Hussein had used it for a head- troops who are over there know this.

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00006 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.011 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2373 I just got back. I talked with many watched what has happened since that We see these things happening. I al- troops. In fact, now we have the Okla- time. ways make a point when I visit with homa 45th over there, and we visited One of the reasons the surge has people in the markets, if I see someone with most of them. They understand worked so successfully is that we have carrying a little baby, I will go in there why they are there. had the religious leaders realizing that intentionally without any kind of ar- What would happen? There were a lot if we leave, Iran will come in and fill mament, with an interpreter. The in- of surrender resolutions, a lot of cut- the vacuum, and they cannot have that terpreter will tell us just what they are and-run resolutions that got a lot of happen. So the religious leaders, the saying. And people with young kids attention in this body. I can remember imams, the clerics started giving posi- love the Americans. when moveon.org had the big ad cam- tive messages about the United States I have to say this too. We are going paign portraying David Petraeus, one of America. to see, and have seen already, a lot of of our great American heroes, as ‘‘Gen- A year ago, we had our defense intel- accusations that we in the United eral Betray Us.’’ It was unconscion- ligence attending the weekly meetings States, in our Department of Defense, able. There were resolutions to disavow of the mosques. I think they meet CIA, and the rest of agencies, are what he said. There were 25 Members of every Friday. At that time, 85 percent guilty of all kinds of torture. It is true this Senate body who opposed those of the messages that were given in the that back in Abu Ghraib, when it first resolutions. mosques by the clerics and the imams happened, there were some people there When the terrorists see this, they are were anti-American messages. As of who did the wrong thing. I think there hoping and praying that we, the Ameri- April of last year, almost a year ago, were 11 of them altogether. They were cans, are going to leave Iraq. On Au- there had been virtually none. They doing some things that were perhaps gust 28, 2007, Ahmadinejad made a are all now positive messages. What not the kinds of things we would en- dorse. That was taken care of by the statement. He was referring to these does that mean? It means that the U.S. Army. They took care of it. But resolutions that are going to draw our Iraqi citizens have now—just like, Mr. that came out, and people started talk- people out of Iraq. He said: President, anyplace in your State of ing about what the Americans were Soon we will see a huge power vacuum in Arkansas or elsewhere in our commu- doing. Yet look what is in their man- the region. Of course, we are prepared to fill nities, we have Neighborhood Watch that gap. . . . ual, the types of inhumane torture. programs. Now they have them. They I went to Bucca. Bucca is where we We are talking about Ahmadinejad. have their own citizens going in with have the most detainees in Iraq. I was That is why the Iraqis are getting so bait cans, drawing circles around the wanting to find out for sure by going cooperative with us. They don’t want undetonated IEDs so our troops will around and interviewing detainees. I that vacuum filled. not be killed. We watched in Anbar all I was talking the other day with BG interviewed, I would say, about 40 or 50 the incidents. They have been down of them. I picked them out myself. I Jimmy Cash. He is retired. He is the from 40 a day to 10 a day. We have seen took an interpreter. Each one said: We former command director inside the economic growth, the markets open never were tortured when we were cap- Cheyenne Mountain complex in the and crowded. The large project in the tured. We have been detained. We will late 1980s. He said: I watched Iran and Sunni Triangle is now back on track. be going back to where we came from. Iraq shoot missiles every day, all day They are going to have the capability They have become real supporters of long for months. They killed hundreds to help their people now. the United States. They were treated of thousands of their own people. They The Iraqi Army is starting to per- right. They were treated humanely. were fighting for control of the Middle form really well. This surprises a lot of They are teaching them to read. They East. people because they don’t think the are teaching them to study their Which reminds me, when all these Iraqi security forces have the capa- Koran. They are teaching them car- people are talking about weapons of bility of being the type of soldiers they pentry and other trades because one of mass destruction, we knew they had are today. We saw this the other day. the biggest problems they have—it is weapons of mass destruction then. We In fact, I was over there the other day easy to recruit people when there is knew they were killing hundreds of in Bucca in Basra when they went in total unemployment. The unemploy- thousands of their own people in the and took care of the problems so we ment rate is so high. They have to feed north, the Kurds, and they were using didn’t have to do it. This is what we their families some way. Now we have weapons of mass destruction to send are seeing. trained them, and they are able to go chemical warheads up there that have If you have any question that it is back and get jobs and take care of the effect of burning people to death true, all you have to do is look at some their families without having to do it from the inside out, the most painful of the people who never really wanted through the military. thing—women, babies, everybody, to be friends of the Bush administra- I just say to you, Mr. President, since thousands and thousands of them. tion who were opposed to the liberation this whole situation began—and I hap- Anyway, if he were to fill that vacu- of Iraq. One such person was Katie pened to be in Fallujah during each of um, we do not know how long it will Couric. This shocked everybody when the two elections that took place, and take for America to be a target on our she was interviewed. That was in Sep- I watched the Iraqi security forces go soil. tember 2007 by Bob Schieffer. This was down to vote when they knew they If we look at what is working, one of live on TV. She had made a trip, after were risking their lives. They voted the the things I noticed on the many trips she had been criticizing the war, criti- day before so they could offer security. I have taken over there—about a year cizing the Bush administration, criti- I watched those people risking their ago, a little more than 13 months ago, cizing the whole liberation effort. She lives—remember the purple finger— the surge began. That was General went over and came back and said: knowing their lives were at risk when Petraeus. What did he say? GEN David Well, I was surprised, you know, after I they voted. This is the democracy they Petraeus said we have to go in there went to Eastern Baghdad. I was taken to the have been looking for. Democracy has with a surge capability in certain Allawi market— been working. I came back this last areas. He was concerned about some of I have been there also— time thinking the surge has been pro- the areas around the triangle. As we gressing so well; if we just keep it up, went in there and positioned ourselves, which was near Haifa Street which was the scene of that very bloody gun battle back in really good things are happening over we found that he was right in his anal- January, and you know this market seemed there. ysis as to where we needed to have to be thriving and there were a lot of people Considering we started with a down- more troops stationed—in Fallujah and out and about. A lot of family-owned busi- grading of some $412 million in our Ramadi. Remember, just about 2 years nesses and vegetables stalls and so you do military, then 9/11 came and we were ago, they declared that Ramadi would see signs of life that seem to be normal . . . forced into a war as a result of that, we become the terrorist capital of the the situation is improving. have done so well. world. Now Ramadi is under total secu- That is not me talking, that is Katie Mr. President, I was a part of the rity, not by the United States but by Couric, whom we least expected that draft many years ago, and I was a be- the Iraqi security forces. So we have from. liever for quite a number of years,

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00007 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.013 S03APPT1 ccoleman on PRODPC75 with SENATE S2374 CONGRESSIONAL RECORD — SENATE April 3, 2008 until the first gulf war, that we should studies. He graduated in May 2003 with hon- Behind Kavanagh was a laptop computer, have mandatory service because I know ors from the Economics Program. on which she had just checked her e-mail. what a great thing it did for my life. In his senior year, he applied to, was tested The subject line of one of Cleary’s final mes- for, and was accepted into the Marine Flight But when you go over today and you sages to her, sent Dec. 17, read: ‘‘So good to Officer Program. He was notified that his hear your voice today, Love.’’ see an all-volunteer force and see what class would be deferred to January and en- After Kavanagh’s bridal shower—attended they are capable of doing and what listed in the U.S. Army. He went to Basic by 50 people at Apple Tree Terrace, Newberry they have done, you come back so Training three weeks after college gradua- Estates, Dallas, where the wedding reception proud that they started out down here tion, earned his Airborne Wings and Sapper was to be—she traveled to Virginia, where with very little to work with, and they Tab, and graduated from the SAS she was living. have been able to sustain it. Antiterrorist Course. He was a player-coach She was packing her belongings for the Are they overworked right now? Are of the Ft. Leonard Wood soccer team, which move to an apartment at Cleary’s military base in Georgia, where they planned to live they deployed too often and too long— won the Post Commander’s Cup. His last soccer competition was as player-coach of 1st/ until Cleary’s enlistment was complete in 15 months? Yes, they are. It looks as 15th Infantry Soccer Team that played a December 2006. though we are going to be able to drop Thanksgiving Day game with the Republic of It was there on Tuesday night when she that down to 12 months. But the troops Georgia Army Team. learned the devastating news her soon-to-be themselves say: Whatever it takes, we Mike’s military decorations include the husband had been killed. are going to do this. They know the al- Combat Action Badge, Bronze Star Purple Her mother, brother and close friend drove ternative. The alternative is the war Heart, Army Commendation Medal, Air the 250 miles to tell her face-to-face, she said. will be waged on American soil. We Force Commendation Medal, Army Achieve- ment Medal, Good Conduct Medal, and three Kavanagh struggled but couldn’t describe don’t want that to happen. campaign medals. He was awarded the Over- her initial reaction Thursday before a family Mr. President, I yield the floor. seas Military Service and Active Duty Army member walked into the office, approached The ACTING PRESIDENT pro tem- Ribbons, as well as Meritorious and Valorous her crying and offered condolences. The two pore. The assistant majority leader. Unit Citations. sustained a lengthy embrace as they whis- Mr. DURBIN. Mr. President, I yield Mike is survived by his parents, Marianne pered to each other and sobbed. 10 minutes to the Senator from Penn- and Jack Cleary, Dallas; sisters, Erin Flana- Several minutes later, Kavanagh discussed sylvania before we claim the floor to gan, her husband James and their three chil- how she’s coping with the tragedy. ‘‘I’ve just been with family. I’ll have to describe my amendment. dren, Bedford, N.H.; Shannon Cleary, Maui, HI; Kelly Cleary and Fred Tangeman, take it one day at a time,’’ she said. The ACTING PRESIDENT pro tem- ‘‘And, I have a new family, right Jack?’’ pore. Without objection, it is so or- DeLand, FL; brother, Patrick Cleary, Dallas; his loving fiance´e, Erin Kavanagh, Dallas, she innocently asked Cleary’s father, who dered. The Senator from Pennsylvania. and his maternal grandfather Joseph Nemeth said yes without delay. Cleary tried to, and usually did, call every Mr. CASEY. Mr. President, I ask of Waverly, N.Y. unanimous consent to speak as in other day, Kavanagh and Jack Cleary said. morning business. [From citizensvoice.com, Dec. 23, 2005] He last called each of them Monday, they said. The ACTING PRESIDENT pro tem- A FAMILY MOURNS A FALLEN SOLDIER Toward the end, he focused on talking pore. Without objection, it is so or- (By Robert Kalinowski) about a Dodge Ram pickup truck he bought dered. DALLAS.—It was at her bridal shower Sun- and was waiting for him and where he and Mr. CASEY. Mr. President, I ask day when Erin Kavanagh had one of her last Kavanagh should go on their honeymoon, unanimous consent to have printed in conversations with fiance´, 1st Lt. Michael they said. the RECORD the two documents I have Cleary. The honeymoon location was still being fi- in front of me, one of which is a de- ‘‘Mike called during the shower and said, nalized. scription of the life of one of our fallen ‘Have fun doing whatever girls do at bridal ‘‘Erin said she didn’t care (where they were showers. I love you,’’’ Kavanagh recalled, going), but he said, ’Dad, I think that means soldiers, as well as a news article from her voice soft and crackling with a cup of she really does,’’’ Jack Cleary recalled. the Citizens’ Voice newspaper dated water she was sipping in hand. Cleary and Kavanagh began dating on Nov. December 23, 2005. A grand wedding was set for mid-February. 25, 2004, which was Kavanagh’s 24th birthday, There being no objection, the mate- Cleary was ‘‘packing up’’ in Iraq, scheduled while Cleary was home before deploying to rial was ordered to be printed in the to complete his yearlong tour in 10 days. The Iraq. RECORD, as follows: couple was to move into an apartment near The two knew each other since they were his Georgia Army base Jan. 4, she said. children and graduated together from Dallas First Lieutenant Michael J. Cleary, of Dal- ‘‘I kind of thought we were free and clear,’’ High School in 1999. After high school, las, born April 4, 1981 was killed in action by Kavanagh said Thursday with Cleary’s dad, Cleary decided to follow in his dad’s foot- hostile forces on December 20, near Samarra, Jack, by her side just two days after Cleary steps to Hamilton College in New York state. Iraq. Lt. Cleary had just completed a was killed in action. Pursuing an economics degree, Cleary was demolitions mission when an ambush oc- The two spoke at length about the heroic in his junior year when he first considered curred. Mike was Platoon Leader of the Ex- 24-year-old Army officer from the office of the military. He was troubled by the Sept. plosive Ordinance Disposal Team in E Com- Jack Cleary’s Dallas-based business, Cleary 11, 2001, attacks, his dad said. pany, 1st of the 15th Infantry Regiment, 3rd Forest Products. ‘‘He came home for Thanksgiving in No- Brigade, 3rd Infantry Division. Cleary and another soldier from his unit, vember and told us he all but signed the final Mike graduated from Dallas Senior High in Spc. Richard Junior D. Naputi, 24, of Guam, papers to join the Army special forces,’’ said June 1999. While at Dallas, he was a four- died Tuesday in Taji, Iraq, when an impro- Jack Cleary, a decorated Army veteran of year letterman in both soccer and tennis, vised explosive device detonated near their the Vietnam War. and captain of both teams his senior year. He Humvee during combat operations, the De- His parents convinced him to finish college was named to all star teams in both sports. partment of Defense reported Thursday. first. While doing so, he applied for the Ma- He was selected to attend the National They were assigned to the 1st Battalion 15th rine Corps officer flight school. When told Youth Leadership Forum on law in his junior Infantry Regiment, 3rd Brigade, 3rd Infantry his entry would be delayed, he ‘‘said ‘I’m not year and was involved in many school activi- Division, Fort Benning, Ga. waiting’’’ and decided to enlist in the regular ties including National Honor Society. He re- Kavanagh sporadically cried while slowly Army. ceived the Dr. Pepper Soccer MVP Scholar- flipping though a thick stack of pictures of After completing basic training, Cleary ship and the History Scholarship at gradua- Cleary. was quickly promoted several ranks and en- tion and was offered academic scholarships There were photos of him fishing and hunt- tered the Army’s Officer Candidate School. at Ursinus College, Gettysburg, Dickinson, ing. Some were of him with family and some He was commissioned first lieutenant in De- and Lafayette. He chose Hamilton College in with fellow soldiers in Iraq. She cracked a cember 2003 and trained extensively for his Clinton, NY. small laugh at one of him chopping down a eventual deployment to Iraq, where he was a While at Hamilton, Mike participated in Christmas tree last year. platoon leader and champion for his soldiers, varsity soccer and lettered in varsity tennis. The 25-year-old then paused when she came his dad said. He joined Sigma Phi Fraternity and became across one of the couple and their parents, ‘‘He loved the guys he was with. They were the chapter president. He gave up intercolle- immediately recalling the date it was taken: doing their job,’’ Jack Cleary said. giate sports and participated in all frater- May 19, 2005. The military has offered Cleary’s family a nity intramural sports, winning the Ham- That was the day her lifelong friend and full honors burial in Arlington National ilton Golf Intramural Championship. He then-boyfriend asked her to be his wife. Cemetery. wanted to enlist in Special Forces imme- It was the last full day they spent to- Jack Cleary said the family is honored by diately after the attacks of September 11, gether. The next day, Cleary shipped off to the request, but will likely decline. but chose to follow the advice of his mother finish his tour after a two-week leave at ‘‘Our feeling is home,’’ he said with a and stayed in school until completing his home, she said. pause. ‘‘We want Mike home.’’

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.015 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2375 HONORING OUR ARMED FORCES which is that First Lieutenant Cleary J. Cleary at this time, and we wish for FIRST LIEUTENANT MICHAEL CLEARY was the fourth generation of that fam- him and for his family all of God’s Mr. CASEY. Mr. President, I rise this ily to serve his country. His father, blessings. morning to speak about a young man Jack Cleary, was a decorated Army Mr. President, I yield the floor. from my home region of northeastern veteran from the Vietnam war, and The ACTING PRESIDENT pro tem- Pennsylvania who lost his life in the then two generations before that. So pore. The assistant majority leader. war in Iraq, 1LT Michael J. Cleary of this is a family who has sacrificed in Mr. DURBIN. Mr. President, pending Dallas, PA. He was born April 4, 1981, generation after generation, and we are before the Senate is an amendment to and we are thinking of him today for so thinking of them today. Tomorrow, the housing bill, which I offered earlier many reasons, not the least of which is they should have been able to celebrate and on which I have asked the Repub- a birthday tomorrow. I want to provide Michael’s birthday, which would have lican side to consider a unanimous con- somewhat of a biographical sketch, and been his 27th birthday, but they can- sent request so that we can debate and then talk a little bit about his life. not. They are strong people. They un- vote on it still this morning. I hope Michael Cleary was a graduate of derstand the sacrifice he made, and we they will consider that in a timely Dallas High School in Luzerne County, are thinking about them this morning manner. I am prepared to offer an PA, in June of 1999. He was captain of and tomorrow and on so many other equal amount of time to both sides of two teams there, both soccer and ten- days. the aisle on the substance of this nis. He was an active member of so I think sometimes it is very difficult amendment and then accept a vote at many organizations, including a proud for us to fully comprehend—those of us 12:15. member of the National Honor Society. who have not had a close family mem- We have proffered this unanimous He had opportunities at several col- ber lost in combat—what this means to consent request, and I hope, in the in- leges, but he chose Hamilton College in a family, what it means to a commu- terest of time and fairness, that the the State of New York. While at Ham- nity such as northeastern Pennsyl- Republican minority will accede to ilton, he participated in varsity soccer vania, in Luzerne County, even years this request, or if they wish to modify and received letters in varsity tennis. later now. It is difficult because in so it, let us know as quickly as possible. He was the chapter president of the many parts of our State, as is true of Here is what this amendment is all Sigma Phi fraternity. And despite all the whole country, when we lose one about. We have 2 million people about of his college and academic interests, soldier, especially in a small town, in a to lose their homes. These are people he also had a feeling in his heart for his smaller community, the impact is dev- who bought a home with a subprime country, and he wanted to serve. He astating. And not only the initial im- mortgage. A subprime mortgage usu- wanted to enlist in special forces impact of that, but months and years ally meant some exotic brew of terms mediately after the attacks of Sep- later. for a mortgage which didn’t exist tradi- tember 11 but chose to follow the ad- I think it is important we don’t just tionally or historically. It might be an vice of his mother—which for all of us look back and remember and pay trib- adjusted rate mortgage where you pay is the right thing to do—and she urged ute to the day they died and to the sac- a low interest rate on the front end and him to stay in school and to complete rifice they made, as important as that then, after 1 year, 3 years, or 5 years his studies. is, but we should be remembering, as that interest rate would go up. There He did that, and he graduated in May well, their life, their life of achieve- were even mortgages offered that were of 2003 with honors from the economics ment and triumph, and their life of interest only, so that people were pay- program. Ultimately, his dream was service because when these families ing low monthly payments of interest fulfilled when he joined the military. look back on these young people, they but not retiring the debt on the house. Unfortunately, he lost his life in De- are not just going to remember their The principal debt remained the same. cember of 2005. His military decora- The theory was that as long as the tions include the following: the Combat service in the military. Family mem- Action Badge, the Bronze Star, the bers know our fighting men and women value of real estate was going up in Purple Heart, the Army Commendation weren’t born into divisions and pla- America, you couldn’t go wrong. No Medal, the Air Force Commendation toons. They weren’t born with a uni- matter what deal you signed up for to Medal, the Army Achievement Medal, form on; they were born into families— get into a house, if the house was going the Good Conduct Medal, and three families of mothers and fathers and to appreciate in value, don’t worry campaign medals. brothers and sisters and aunts and un- about it. It is hard to describe in a short cles and cousins and friends and so There were also people who took that amount of time, even in a writeup in many others we all know are part of all mortgage on their home and consoli- the newspaper, as local papers did at of our families. So I think it is impor- dated a lot of other debts they had on that time, but probably the best way to tant to remember these young men and cars and other things, home improve- encapsulate what Michael Cleary’s life women, to the extent that we can, on ments, and put it all in that mortgage has meant to this country is to remem- their birthday or some other signifi- so that they had a mortgage debt that ber the words of Abraham Lincoln cant moment in their life. was actually greater than the current when he talked about the sacrifice of Finally, let me say this: The news ar- value of the home. our soldiers. When he spoke about the ticle I cited from December of 2005 These so-called subprime mortgages battle of Gettysburg, he spoke of those talked about the plans Michael Cleary were being written right and left. In who gave the last full measure of devo- had to be married to Erin Kavanagh. I the old days, going back to when I first tion to their country. We now can say will not review the whole article, but bought a home, there used to be pretty that about so many of our young men suffice it to say that it is a powerful close scrutiny of your credit record. and women who fought in Iraq, and one story of what one soldier’s hopes and They used to require 10 percent of the of them was Michael Cleary. He indeed dreams were—to serve his country but value of the home as a downpayment, gave the last full measure of devotion to come home and then start a new life or 5 percent. You had to pay points; in to the country he loved. and to be married. So we are remem- other words, thousands of dollars at He didn’t have to do it. He had a bering her as well today and remem- the closing. It was pretty tough in great career ahead of him because of bering they graduated together from those days. his academic achievements and be- Dallas High School in that year of 1999. Well, the whole climate of home cause of his leadership qualities. He We are grateful this day in so many lending changed with the subprime could have pursued another path, but ways, but it is difficult to fully explain mortgages. More and more people he chose to give back. He chose to sac- how grateful we are for his life of serv- moved into homes. The values of homes rifice for his country, knowing full well ice and sacrifice, his life of courage and were mushrooming, and it looked as that he could be asked by God to give commitment, and his life which was fo- though we were just riding the crest of the last full measure of devotion, and cused on the future, his own future but a wave. Well, guess what happened. The he did. also the future of our country. So to- wave crested and started to fall. And We are thinking of his family today morrow, as his family celebrates his when it fell with the subprime mort- for so many reasons, not the least of birthday, we are remembering Michael gages, a lot of people were hurt. The

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.016 S03APPT1 ccoleman on PRODPC75 with SENATE S2376 CONGRESSIONAL RECORD — SENATE April 3, 2008 so-called adjustment of the mortgage are afraid the $500,000 home today will If I walk into a bankruptcy court and took place and an affordable monthly be worth $450,000 next year—not a I own a farm and I say I cannot make payment became unaffordable. All of a smart deal. my farm payments, my mortgage on sudden, the low interest rate blossomed As long as this mentality is out my farm, the bankruptcy court has the into a much larger interest rate. Or there, the housing industry is flat. legal authority to change the mortgage perhaps a family stumbled—somebody That doesn’t hurt just your realtors terms on my farm or on my ranch or on lost a job, a divorce, a serious illness in and your developers, it hurts home- my vacation condo—I don’t own one— the family—and with that stumble, builders, skilled craftsmen, people who or on the big boat I just bought and on they missed a few payments. supply homes—from those who are gar- which I can’t make the payments. The Well, now, add this up into a nation deners and do the landscaping, to fur- bankruptcy court can change every of 300 million people, and we end up niture—you name it. All of these re- single one of those, but it cannot with 2 million folks who face the pros- lated industries are slowing down into change or modify the mortgage on your pect of losing their homes. Now, a lot this recession which Mr. Bernanke fi- home. Why? Of all of the things in the of people say, well, isn’t it a darned nally conceded yesterday may be on world they can change, why not that? shame. But why did they sign up for the horizon. That is why addressing It turns out that by tradition it has those crazy things to start with? They this home crisis is important—not just never happened. So I bring the amend- should have used better judgment. for 2 million people who had the mort- ment and propose the court be given They should accept their medicine at gages, but if we do not deal with those that authority. this point and maybe they will be a lit- 2 million people losing their homes, it The group that is opposed to this, tle smarter the next time around. is going to have a dampening effect on screaming bloody murder, is none If it were that easy, we could write it our entire economy. It is going to hurt other than the mortgage bankers, the off as the moral hazard of making a all of us. same people who brought us the bad decision, of irresponsible bor- A recession is a period of time in subprime mortgage mess. They do not rowing. But it turns out to be more sig- which businesses fail, jobs are lost, want to see the terms of their subprime nificant. Two million people losing consumer confidence is low, the econ- mortgages changed in court. And they their home in a nation of 300 million omy slows down. It happens in a free say: If you change them, interest rates doesn’t sound like much, but 2 million market economy. But you do not want will go up. people losing their home will affect the it to go on too long because it can have What I did, working with that indus- value of homes around them. a long-term negative impact. try, is say: I will apply this to a narrow What is the value of my home in What we are trying to do today is to group of people, the most limited group Springfield, IL? Well, if you ask an ap- pass a bill to breathe some life back I can find that still has some impact on praiser or realtor, they will say: I don’t into the housing industry and housing this issue, and I will narrow the discre- know, but I will tell you what I will do. market in America. The bill is good, tion of the bankruptcy court. So listen I will look at other homes in the neigh- and it has a lot of good provisions. I am to where this amendment takes us. First, you have to qualify to go into borhood that have gone for sale—com- happy to support it. I think there are court. We changed the law sometime a parable sales, comparable values. So things in this bill which will be of few years ago. To qualify to go into they look up and down the block and value to us as a nation. I think vir- bankruptcy court you have to have a around the block, in the neighborhood, tually every one of them has some im- certain income; you have to go through and look at what homes are selling for, pact, some positive impact. But there certain processes and disclosures—even is not a single one of them that will comparing them to my home, and they credit counseling. All that is required have the positive impact of the amend- come up with a valuation on my home. before you can walk into the court. Well, if down the block and around ment I offer. Here is what the amend- Second, this only applies to your the corner a home was foreclosed ment says. home. I don’t want a person walking in upon—in other words, the people were Currently—now—if you find you can- saying: I bought 100 acres down in forced out of the home, there was a not pay your bills and you still have a southern California and I need help—no forced sale of the home, and it was sold job, you can go into chapter 13 in bank- way. Just your home. for less than fair market value—that ruptcy. You go to the bankruptcy court Third, it only applies to existing value will be calculated into the ap- and say: I am in a mess. I am in over mortgages as of the date of the enact- praisal of my home. The experts tell us my head. I have more debt than I can ment of this bill. A mortgage you enter that 2 million people losing their take care of. Will the bankruptcy court into after the day this bill is enacted homes in America will drag down the work with my creditors so I can have would not apply. value of 44 million homes. It is a ripple an arrangement to pay off my debts? I Fourth, the court can only reduce effect. would have to change the terms of the principal on the mortgage—the As the value of homes declines, more some of the debts, but at the end of the amount that you owe—no lower than people face the reality that the mort- day I will get out of this mess. the fair market value of the home. You gage principal, the amount they owe on The bankruptcy court takes a look at protect the lender. If you go through the mortgage, is greater than the value it and decides whether it is going to foreclosure and have an auction, it can of their home. The shorthand term work. You may be dreaming. You may sell for a lot less than fair market they use is, you are ‘‘underwater.’’ not even have a chance. Your creditors value. So fair market value is the bot- Your mortgage value, your mortgage may not want to cooperate. So this tom line. principal is greater than the value of chapter 13 is just an effort to try to Fifth, the interest rate the bank- your home, so you can’t borrow against help people get out of this mess. ruptcy court can impose can be no the value of your home anymore. You We think about 600,000 people facing lower than the prime rate plus a pre- are already in debt over the value of mortgage foreclosure will take this op- mium for risk. your home. That is the third ripple. tion and go to bankruptcy court. If Sixth, the term of the mortgage can Then there is the fourth, the men- they go into the bankruptcy court and be no more than 30 years. tality of buyers across America. This is try to work out their debts and keep And then, seventh—and we did this the one that troubles me the most. For their homes, they have a problem. saying to the banking industry: What over 70 percent of people in America, if Under current bankruptcy law, you more can you ask? If in the next 5 you ask them are they going to buy a cannot modify the terms of the mort- years you sell that home and it has ap- home, and they say no, when you say: gage on your home. In other words, at preciated in value, any increase in Can’t you get a mortgage, they say: the end of the day, you are still stuck value over the fair market value as of Yes, we can get a mortgage. Why won’t with that same subprime mortgage the date of the bankruptcy goes to the you buy a home? They say: I don’t that may have toppled you in the first lender, not to the owner. What more think it is a good investment. place. The reason I offer this amend- can we do to protect these bankers— Seventy percent of people in America ment and the reason I want to change fair market value on one end, any ap- today say buying a home, real estate, that one provision is because it is fun- preciation in value on the other end. is not a good investment. Why? They damentally unfair. And they still oppose it.

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.017 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2377 I hope my colleagues in the Senate not have done what they did with re- There are plenty of communities in will take a look at this. The credit spect to Bear Stearns and other invest- America where we have already seen unions support this because they don’t ment banks because the implications those kinds of reductions, all of which get into the crazy loan business that of their failure could have had a pro- run completely counter to how we some of these mortgages did. A group found impact, spilling down into our build a community and to what we are that includes the AARP, groups all economy. But when the pain is trick- trying to do in order to restore eco- across America, consumer groups, they ling up to a Bear Stearns, and finally nomic strength in the country. understand this is only reasonable. The the administration notices—that very Just this last weekend I attended, New York Times has editorialized in same pain has been felt for over a year with Mayor Menino, at a high school in favor of it. I think this is an approach now by people being foreclosed on in Roxbury, in Massachusetts, in Boston, which will help a number of people. It the economy—it really is an under- a homeowner foreclosure prevention is narrow and focused. It is limited in scoring of the degree to which an ad- workshop. I was literally stunned at its scope, and it is really directed to- ministration is out of touch with the the numbers of people who had come ward giving people another chance to real concerns and realities in the life of into this high school on a Sunday stay in their homes. They still have to the American people. afternoon, bringing all their financial pay the mortgage. They don’t get off We need to show that commitment, records because they had been unable the hook, but they can stay in their here and now, in passing this fore- to get hold of a real human being to homes. closure act to deal with the problem talk to in order to try to work out a Stabilizing the housing market, sta- nationally. We need to do it now. It is reasonable agreement for what they bilizing your neighborhood and my long overdue. As many as 8,000 fore- could pay and be able to stay in their neighborhood, breathing some life back closures are occurring daily. Some of homes. into this housing industry, that is the these loans we know were absolutely Rather than face one of those endless way to turn this recession around. This predatory; almost, I believe, criminal. phone calls where you press 2 to talk to amendment I offer on the Bankruptcy People knowingly went out, knowingly somebody who will tell you to press 4 made loans to people they knew were Code will help more people than all of who will give you an automated re- not capable, ultimately, of meeting the the provisions combined in the rest of sponse to press 7 or whatever it is—we adjusted rate mortgages, but because this housing act. This reaches a lot of have the lenders there. We brought the of the benefit to them and the imme- people. Hundreds of thousands could various lenders there and people were diate take in terms of the points they qualify. I urge my colleagues on both able to go through a screening process would make and the commissions and sides of the aisle to please consider this and then go back to a room, sit down returns on those transactions, they amendment. with the lenders, tell them their pre- went ahead and did it. Frankly, some Mr. President, at this point I see two dicament, and actually negotiate a re- of those came from the very same peo- of my colleagues on the Senate floor, financing. ple who have just been bailed out by Senator SMITH of Oregon and Senator I met people that afternoon who were the Federal Government. KERRY of Massachusetts, and I would I commend our majority leader for smiling, who said to me: Thank you for like to yield to them for whatever peri- his efforts to bring this to the Senate getting us together. Now I can stay in ods they would like to speak and then floor now and his efforts, together with my home. reclaim the floor on my amendment. That is all it takes, that kind of ef- Senator DODD, to try to work through Mr. President, let me make a unani- this particular legislation. Let me fort. I talked to one woman who, to- mous consent request that when the share with my colleagues, last week- gether with her husband, is paying two Senators have completed their re- end—things have gotten so bad in Bos- $5,000 a month for their home, for their marks I be recognized again on my ton that Mayor Tom Merino recently mortgage. They have two mortgages amendment. opened a war room where city officials now. They are both working, both of The ACTING PRESIDENT pro tem- are working together on a day-by-day them are working. pore. Without objection, it is so or- basis to fight the wave of foreclosures But I asked her what her rate was. dered. The Senator from Massachusetts that we have seen in recent days. What are you paying for a rate? She is recognized. A few months ago I was in the city of said: Well, I am paying 7.25 percent on Mr. KERRY. Mr. President, I thank Brockton in Massachusetts and met one, and I am paying 9.25 percent on the distinguished assistant leader for with the mayor. He said: You have to the other. Nobody, with the current his comments and his leadership in this take a moment and come upstairs and discount rates in America, is paying area. As he may recall, we were to- meet with me with these folks who are those kinds of rates. It is absurd. gether at a meeting at the White House here, and impromptu we went upstairs I also had the woman next to that a month and a half, 2 months ago now and there was a group of people from particular one who was waiting in line, with the President, with Secretary the community who came together in who, when she heard the 7.25 and 9.25 Paulson, Vice President CHENEY, and a desperation to try to figure out how said: That is nothing. I am paying 13.25 small group of Senators there to talk they were going to deal with the fore- percent on mine. So if we were to re- about the stimulus package. As I know closures in Brockton. This mayor had negotiate, according to a fair standard he may recall, I raised at that time the already processed some 400 foreclosures of what the rate is, with what the na- housing crisis, saying to the President in Brockton, and he was staring at an tional interest rates are today, and that the entire cause of everything additional 800 or so that were going to fixed rates that are available to people, that was bringing us there to discuss come at them. a lot of those folks could stay in their the stimulus was in fact the subprime What happens to a community al- homes, and they can afford to service crisis and that no stimulus package ready struggling to get their economy their mortgage. should be passed that didn’t in effect back on track when they face that kind What we need do is stop the greed stem the tide of foreclosures and ad- of wave of foreclosures is, street by and unbelievable sort of arrogance of dress the uncertainties in the market- street, house by house, as they get some of these companies, some of those place and the lack of confidence. So I boarded up and people leave the homes, people who asked literally to be able to know he joins me in expressing regret the rest of the property values start to renegotiate: We were told no. I will tell that not withstanding the nodding go down—the local gas station, the you in a moment about a woman I met heads and comments of affirmation, local 7–Eleven, the pharmacy—every- in Lawrence, MA, where this predica- absolutely nothing happened. Nothing body begins to feel the impact. ment is also going on. happened. But most important, from the may- The fact is that nationwide, by last Sadly, it is not until the Federal or’s point of view and from the Govern- year, we all knew that 2.5 million Government puts up $400 billion to bail ment’s point of view, they begin to see mortgages were already in default. out Bear Stearns and other investment a decline in revenues. The only place That was 40 percent more than 2 years banks that you really get some kind of mayors can go in any kind of wholesale earlier. And despite a 40-percent in- response from the Federal Government. fashion to deal with a decline of reve- crease, there was no response from this I am not complaining that they should nues is to cut fire, police, and schools. administration. Communities across

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00011 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.018 S03APPT1 ccoleman on PRODPC75 with SENATE S2378 CONGRESSIONAL RECORD — SENATE April 3, 2008 the country are being hit hard. Last I talked with a woman by the name me in this effort as a member of the Fi- year the mortgage foreclosures in Mas- of Rosa Hernandez, who has four chil- nance Committee. We both passed an sachusetts alone were up 128 percent, dren, works two jobs, one as a nursing amendment in the Finance Committee and the foreclosure rates of five Massa- assistant at the local nursing home, in to the stimulus package. We had hoped chusetts metro areas were in the top order to support her family and to be this would have been included in the 100 in this country. able to earn enough to own her home. stimulus package a few months ago so How did we get here? Well, we got She did everything she could in order this good could have begun to take here because lenders lowered their to make her house a home. She fixed hold so that families who have been standards for lending but did not ap- the roof, she bought a new boiler, she foreclosed on in the last few months propriately plan for the increased risk updated the electrical system of her would not have been. Regrettably it did they incurred when they lowered the new house, and she did it with this in- not happen. But we are here now. standards. They flooded the market crease in value that the company came I am appreciative of him and his ef- with mortgage loans, ignoring the and loaned her. After she was hospital- forts to help include that in the bill to risks to borrowers and to their own ized twice last year she could no longer provide an additional $10 billion. We bottom line. afford to work two jobs. At the same originally sought $15 billion of tax-ex- As usual, most of these people turn time her subprime mortgage interest empt private activity bonds that fi- around and expect us to bail them out; rates went up from 4.5 percent 5 years nance our housing agencies. What the in most cases to bail them out first. ago to 7.5 percent. She told me, housing agencies would do with this For some time, some of us here in Con- through a translator, that when she money is take the proceeds from the gress have been screaming about preda- could not make the payments, she bonds and use them directly to refi- tory lending practices. I happen to went to her lender. Her lender refused nance subprime loans, provide mort- think it is usury to allow 30 percent to make loan modifications that would gages for first-time home buyers, for rates. A whole bunch of Americans do allow her to stay in her home. Her multifamily rental housing. not know they are actually paying 30 lender told her they were going to de- In the case of Massachusetts, that percent rates after a group of penalties value her home down to about $99,000. I would mean about $211 million of targeted mortgage relief to the home- on their credit cards. think she had a total of $220,000 in the owners of our State. Similarly, every There are even more Americans, mil- home. They are going to devalue it to State in the country would benefit lions of them, who are paying 18 per- $99,000 and put it on the market and from this provision. I thank Chairman cent. I urge any American to go back sell it. She said: I can afford to pay BAUCUS and Senator DODD for their ef- and look at what their rate is at the $99,000. Let me stay in it for that. They forts to include this provision in the bottom in the fine print on their credit refused to let her stay in, even though final bill because of what it can do to card or ATM statements and they will she could service that payment with be shocked by the levels of interest help struggling families. the job she has with a family of four, they are paying. In 2006, State and local governments stay in her home. They are prepared to I think these are excessive. These are financed 120,000 new homes with mort- wrong. Many people I know, all those kick her out and then put it on the gage revenue bonds. With the addi- of us who went to law school, learned market and sell it to someone else for tional $10 billion in funds, States and about ‘‘buyer beware,’’ ‘‘caveat the same price. That is disgraceful. localities can equal that amount and emptor.’’ That is one of the first things That is disgusting. And that is the kind finance approximately 80,000 more you learn in law school. of unregulated practice that is taking home loans. According to the National But the fact is, we put standards in place out there because people have Association of Home Builders, every place through the years as to what is walked away from any sense of com- mortgage revenue bond new home loan an unfair practice. We have unfair mon decency and responsibility. produces almost two full-time jobs, trade practice laws in many States, The fact is that thousands of families $75,000 in additional wages and salaries, and they are simply not being applied. such as hers have been through the $41,000 in new Federal, State, and local But legislators in this case have same kind of predicament where they revenues. Each new home then results backed up and turned a blind eye to are forced to start all over again. Each in an average of about $3,700 that gets what are unfair practices in the mar- time a house is foreclosed on, a fam- spent by the new occupants on appli- ketplace. Now, were there abuses on ily’s economic dream lies in tatters. ances, furnishings, property alter- the other side of the ledger? The an- But it is not only the family that faces ations, all of which provide a real shot swer is: Yes, there were. Some home- the foreclosure that suffers; the entire in the arm to our economy. owners inflated their income. Some community suffers. I have talked to po- The reason this mortgage revenue misrepresented themselves to get a lice officers who tell me about the in- bond proposal is so important is that bigger home than they could afford, creased work they have now to try to to many lower income families, they and obviously we are not talking about patrol by houses that they know are are having difficulty refinancing their bailing out people from those kinds of abandoned and boarded up. The prop- existing mortgages. This additional situations. But there is blame enough erty values of entire streets and com- funding makes it easier for families to go around. munities start to drop, which affects facing foreclosure. It will make it easi- I will tell you what has not been the entire ability of that community to er for first-time home buyers to buy a enough to go around, and that is a be able to function. As I described ear- home, which means that the glut in the rapid and appropriate response from lier, crime rates go up, neighborhoods marketplace today of all of those the Federal Government in order to get torn apart, schools are disrupted homes that have already been fore- deal with this problem. Lenders are because when the family gets kicked closed will finally find a group of peo- now getting help. But homeowners are out, kids are yanked out of the class- ple because of these bonds who will be still struggling. The fact is there are a room and you end up with a complete able to take those houses off the mar- lot of homeowners out there who have disruption to the school system. ket and become part of the community. the ability to pay for a mortgage. They According to the census, by late 2007 The goal is simple. We want to pro- cannot carry the increased rates and a higher percentage of houses in the vide assistance to those who need it they cannot necessarily carry the in- Northeast sat vacant than at any time most. The extra $10 billion for this pro- flated levels that some of them have in the last 50 years, probably since the gram is a proven way to help Rosa Her- been put into because of these preda- Great Depression. nandez or others be able to stay in tory practices. So today we are debating the Fore- their homes. I might add also, before I Let me give you an example. This closure Act of 2008. This has the oppor- close and cede the floor to my col- week I went to Lawrence, MA and met tunity to be able to deal with this cri- league, there is in this bill also $4 bil- with homeowners who are facing fore- sis. It reflects a bipartisan com- lion for the community development closure. Approximately 700 homes were promise. It is a good first step toward block grant, which a number of us have foreclosed in Lawrence last year alone. addressing this crisis. It includes a pro- advocated strongly for, that will also I am told that number is going to rise vision, and I thank Senator SMITH from help local communities to deal with for this year. Oregon for his long participation with the effects of the housing crisis.

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00012 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.020 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2379 As we all know, the community de- produces in surplus actually goes to ernments are permitted to issue tax-ex- velopment block grant is the only real the general revenue. Some of us believe empt bonds, called qualified mortgage flexibility mayors get in dealing with money produced by housing, that cre- bonds, to finance new mortgage loans crises in their community. So I am de- ates a profit in effect or a surplus for to first-time home buyers. What our lighted that is here and that we can the Federal Government, ought to go legislation does is temporarily expand help local governments be able to deal back into housing rather than contin- the use of this program to include refi- with this crisis. ually have housing be the stepchild of nancing of existing subprime loans. It Finally, there is a provision I fought American policy. We hope we will ulti- would also provide a $10 billion infor in this legislation that I am pleased mately be able to do that. crease in tax-exempt bond authority is in it, which is the proposal I put for- I urge my colleagues to vote for this which could be used to provide these ward to address the foreclosure con- legislation. I thank my colleague from refinancing loans, issue new mortgages cerns of our returning veterans. Those Oregon for his patience and, most im- for first-time home buyers, and, fi- who have served our country in Iraq portantly, for his coefforts in this ini- nally, invest in multifamily rental and Afghanistan should never come tiative. housing. Our proposal would also ex- home to a home that is in danger of I yield the floor. empt mortgage revenue bonds from the foreclosure. But some are. You have a The PRESIDING OFFICER (Mr. alternative minimum tax to make lot of National Guard folks who are WHITEHOUSE). The Senator from Or- them more attractive to investors and doing their second or third deploy- egon. to cut home-buyer mortgage costs fur- ment, and many of these people are in Mr. SMITH. Mr. President, I thank ther. small businesses, or in some cases even Senator KERRY, my colleague from For Oregon, the increased bond cap sole proprietors. They have taken a Massachusetts, for his kind words. We will translate to roughly $122 million pay cut, in many cases, to serve their come to the floor today as Republicans in new bond authority to address the country. They do not get paid as much and Democrats trying to work out a State’s housing needs. Our neighbors in for serving on active duty. The result bill that will make a difference on the Washington State will receive roughly is that many of them have been put central plank of the current economic $210 million in new bonding authority, into difficulty. slowdown. It is a time, frankly, to note enough to produce more than 1,300 What we do is extend the foreclosure we are finally working in a way that loans. In Arizona, where the delin- grace period from 90 days to 9 months, will make a difference and make quency rate has jumped from 2.9 per- and we extend the freeze on mortgage progress for the American people. cent in the fourth quarter of 2005 to 5.45 interest rates for the first year a sol- Tuesday evening, I went home and percent in the fourth quarter of last dier is home. This is one of the ways we TiVo’d the news. I saw Senator REID year, an estimated 1,400 new mortgage can make good on the rhetoric which is and Senator MCCONNELL standing to- loans will be generated by this bill. present all over the country about how gether before the cameras. Behind Michigan, which had a delinquency we care for the veterans but, in fact, them were Senators DODD and SHELBY, rate of 8.9 percent at the end of the whether it is the VA budget or coun- as well as Senator BAUCUS and Senator fourth quarter of last year, will have seling or post-traumatic stress syn- GRASSLEY from the Finance Com- its bond cap increased by more than drome, or a host of other things, we mittee, who have worked with Senator $332 million, enough to generate more have rarely put enough money there to KERRY. When I saw these Senators to- than 3,300 new home loans or refi- keep pace with that rhetoric. gether in a joint press conference, I nancing. This helps to do it. I do thank Sen- thought I also heard a collective sigh Another example, Arkansas, with a ator DODD for his work to include those of relief from the American people that delinquency rate of 6.6 percent as of provisions in this bill. I do not think finally the Senate was proceeding in a last December, will receive more than anybody wants to see an Iraq or Af- way they expect. I, for one, was breath- $92 million in increased bonding au- ghanistan or any other area veteran ing a sigh of relief that there was thority which would lead to more than join their brothers and sisters who agreement and that we are here pro- 1,100 new loans. Nationwide it is esti- served in Vietnam, too many of whom ductively engaged in finding a solution. mated our proposal would lead to were in the ranks of the homeless or I also thank Senator KERRY. He and I roughly 80,000 new loans. the dispossessed during those years. We have been at this amendment now for To anyone who questions whether ad- owe them more for their plights. This months. I have had the privilege of dressing the housing crisis is economic helps to do that. working with him on many issues over stimulus, I would say each one of these I close by drawing attention to the a long time. I am currently on the Fi- new home loans is projected to produce fact that a record 37.3 million house- nance Committee, and this amendment almost two full-time jobs; $75,000 in ad- holds currently pay more than 30 per- we actually got approved in the Fi- ditional wages and salaries; $41,000 in cent of their income on housing costs, nance Committee in the last stimulus new Federal, State, and local revenues; and more than 17 million Americans package. I wish it had survived that and an average of $3,700 in new spend- are paying more than half of their in- process because it would already be ing on appliances, furnishings, and come to be in their homes. So as we making a difference. But with the help property alterations. consider additional remedies down the of leaders on the Finance Committee Our proposal is not going to solve all road, I hope we are going to deal with and the approval of the Banking Com- that ails the housing economy, but it is the fact that we can create jobs while mittee, it has now been included in the an important and good start, and it easing the affordable lending housing underlying bill. I thank all of them for will provide real relief to working fam- crisis if we were to pass this and pay this. ilies at risk of losing their homes. This more attention. As I noted back in January, we of- relief is targeted, not a bailout to in- I used to be chairman of the Housing fered this legislation as an amendment. vestors who were looking to cash in on Subcommittee on Banking before I The committee approved our amend- the housing boom. The new housing went over to Finance. ment with an overwhelming 20-to-1 bi- bond authority will be subject to the I know for almost 10 years we were partisan vote. Again, we were not able program’s income and purchase price struggling to get one voucher or two to keep it in the package, but it is in requirements. In 2006, mortgage rev- for housing. It wasn’t until 1999 that we the package today. enue bond borrowers had an average in- got the first 50,000 vouchers in 10 years Across the country, rising interest come of $45,000 and bought first-time and the year after 100,000. But we have rates and slumping home values are homes with an average purchase price neglected housing as a matter of na- creating the perfect financial storm for of $137,000. tional policy for almost 20 years now. many American families. The legisla- I wish to say, again, how pleased I What some of us wish to do is create a tion Senator KERRY and I authored is am the Senate is finally moving to de- housing trust fund that takes money aimed at stemming this tide and probate on this housing package. If we are from the surplus that comes through viding homeowners an option to avoid serious about stimulating the econ- the FHA lending program, insurance foreclosure and stay in their homes. omy, we need to take a look at the root program. But the money that housing Under current law, State and local gov- causes of this slowdown. First among

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.021 S03APPT1 ccoleman on PRODPC75 with SENATE S2380 CONGRESSIONAL RECORD — SENATE April 3, 2008 those is housing. There are a number of It is a pattern across the country courts to cram down mortgages will in- important items in the bill we are de- where people have faced foreclosures. crease interest rates. bating. I was disappointed, however, The difficulty which I see with the The effect of my bill, which is a great the AMT exemption for the low-income Durbin amendment is it will impact on deal more modest, will not, I submit, housing tax credit was not included in the ability of borrowers to secure have that effect. The essence of the bill the base bill. This is something Sen- mortgages in the future because lend- which I have proposed will apply only ator CANTWELL and I have been advo- ers will be unwilling to loan money to mortgages given, borrowings, prior cating and will continue to work this where there is the prospect that Con- to the date of the introduction of my week to see if we can add to the bill. gress will intervene and grant author- bill and will sunset in 7 years. I hope we can work quickly, though, ity to bankruptcy courts similar to I think it is important the legislation as Americans, as Republicans and that suggested by Senator DURBIN now pending in the Senate deal with Democrats, to get this bill to the Presi- today. the so-called little guy, the guy who dent, a bill he can sign, so we can, The core of the consideration was ar- lives on Main Street. We have already through common sense and common ticulated by Justice Stevens in a case seen very substantial relief for Wall ground, achieve some common good for captioned Nobleman v. American Sav- Street in the Bear Stearns bailout. I the American people. ings, in 1993, where Justice Stevens am opposed to bailouts. If the entre- I yield the floor. said: preneurs on Wall Street are making in- The PRESIDING OFFICER. The Re- At first blush it seems somewhat strange vestments with the prospect or the ex- publican leader. that the Bankruptcy code should provide less pectation or the hope of big profits, Mr. MCCONNELL. I ask unanimous protection to an individual’s interest in re- and they find their judgment is bad and consent to proceed as in morning busi- taining possession of his or her home than of those profits are not realized and in- ness. other assets. The anomaly is, however, ex- stead there are losses, it seems to me The PRESIDING OFFICER. Without plained by the legislative history indicating that favorable treatment of residential they ought not to be coming to the objection, it is so ordered. mortgages was intended to encourage the taxpayers for a bailout. Where they are (The remarks of Mr. MCCONNELL are flow of capital into the home lending mar- looking for big-time speculative prof- printed in today’s RECORD under ket. its, and they are wrong, they ought to ‘‘Morning Business.’’) So you have the anomalous situa- sustain those losses instead of having The PRESIDING OFFICER. The Sen- tion, as articulated by Justice Stevens, the losses sustained by the taxpayers. ator from Pennsylvania. that on the principal home the bank- It is understandable that the Federal AMENDMENT NO. 4388 ruptcy court does not have such au- Reserve took an exceptional view of Mr. SPECTER. Mr. President, I have thority. That is for a very sound public the Bear Stearns situation in order to sought recognition to comment on the policy reason: that if the bankruptcy avoid a potential ripple effect and dev- pending Durbin amendment. court did have that authority, then astating consequences on the economy. Mr. CORNYN. Mr. President, before lenders would be unwilling to lend It was not a gigantic bailout, in any the Senator begins, I wonder if he will money for first-home mortgages. So if event, when Bear Stearns stock was yield for a unanimous consent request. you have a second home or if you have selling for $150 or thereabouts a year Mr. SPECTER. I will. a yacht or if you have other assets, the ago, and the initial bailout was for $2 Mr. CORNYN. Mr. President, I ask bankruptcy court does have that au- and the prospect of increasing that to unanimous consent that following the thority, but for good reason it does not $10. comments of the Senator from Penn- have the authority on first homes. But I believe the current legislation sylvania, the Senator from Montana be There have been a number of studies pending before the Senate is unduly recognized and then I be recognized fol- on the subject concluding that the im- balanced for the big guy as opposed to lowing the Senator from Montana. pact of the Durbin amendment would the little guy or the person who oper- The PRESIDING OFFICER. Without be deleterious to the ability of people ates on Wall Street as opposed to the objection, it is so ordered. to get mortgages because of the reluc- person who lives on Main Street. That The Senator from Pennsylvania. tance of lenders to put up the money. is why I support the focus of attention Mr. SPECTER. Mr. President, I com- Professor Joseph Mason of Drexel which Senator DURBIN has brought mend the distinguished Senator from University testified before the Senate with his bill—although for the reasons Illinois for offering this amendment Judiciary Committee that ‘‘it is I have stated I disagree, and my bill and for initiating very considerable straightforward to conclude’’ that takes a much more modest approach— discussion on the plight now being cramdowns will increase the cost of Senator DURBIN and I worked long and faced by many individuals who are mortgage credit. hard to try to reach some accommoda- faced with mortgage foreclosure. In its analysis of economic stimulus tion and some compromise, and we He and I have had very extensive dis- options, the Congressional Budget Of- could not do it because our approaches cussions on his proposal and my legis- fice noted that one of the costs of are so basically different. lative proposal, which has been intro- cramdown proposals ‘‘could be higher We finally had a vote on our bill in duced as S. 2133, which differs from the mortgage interest rates.’’ the Judiciary Committee today. Our Durbin amendment in that it provides Federal Chairman Bernanke testified legislation was introduced last fall and authority for the bankruptcy court to before Congress that modification of could have been acted on by the Senate change the variable interest rate mort- mortgages ‘‘would probably lead to a long time ago. We could have brought gages which have caused so much con- concern about the value of existing this matter to the floor and stimulated fusion and so much difficulty in lead- mortgages and probably higher interest other amendments and other discus- ing to foreclosures by people who could rates for mortgages in the future.’’ sion. The delay of months has resulted not pay the increases which were noted In studying the impact of cramdowns in many foreclosures. In the Judiciary by the variable interest rate mort- for farm real estate in Chapter 12 bank- Committee today, on a 10-to-9 party- gages. ruptcy, the U.S. Department of Agri- line vote, my bill was defeated, and the There have been a number of situa- culture estimated that cramdowns Durbin bill was passed for action on tions where the mortgage rate has raise the interest rates on farm real es- the floor. But events on the floor have jumped far in excess of what the bor- tate loans by between 25 and 100 basis finally overtaken the committee ac- rower had anticipated. points. tion. The committee did act today. A homeowner in Lithonia, GA, who Even the report cited by supporters Mr. DURBIN. Mr. President, will the borrowed on a variable interest rate of Senator DURBIN’s bill concluded in- Senator yield for a question? mortgage, found the interest payments terest rates will increase. In their Mr. SPECTER. I do. rising from $1,079 to $1,444, which the paper, ‘‘The Effect of Bankruptcy Mr. DURBIN. Mr. President, if I borrower could not afford. Strip-Down on Mortgage Interest could very briefly, because I know oth- A first-time home buyer in De Soto, Rates,’’ Georgetown law professor ers are here to speak, I would like to TX, found their variable interest rate Adam Levitin and Joshua Goodman ac- distinguish, if I can, three or four ap- mortgage moving from $1,400 to $1,900. knowledge that allowing bankruptcy proaches where we differ between us.

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.022 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2381 The first element that is important— Mr. SPECTER. Mr. President, the mittee tax package as part of the pend- and I wish to make sure it is clear for Senator from Illinois is correct. It may ing consensus amendment assembled the record—my amendment gives to be that my proposal is too modest in by the two leaders and by Senators the bankruptcy court the authority to that respect. I am not in concrete on DODD and SHELBY. modify the mortgage. But under your that specific provision because I think Today, many American families find amendment, or your approach, the ulti- that could be modified to accommodate their home is threatened. A weak hous- mate decision on whether a mortgage different markets without dealing with ing market has spread weakness is going to be modified still has to be the underlying principles I am con- throughout the larger economy. More approved by the lending institution; is cerned with. than 5 million households now owe that not correct? Mr. DURBIN. I thank the Senator for more than their house is worth. That is Mr. SPECTER. Mr. President, I an- yielding. about 1 out of every 10 home mort- swer the distinguished Senator from Il- I might say to the Chair, I have spo- gages. As prices fall, that number is ex- linois through the Chair by saying that ken to the Senator in the hopes that pected to grow. is correct. My bill does allow for the we can bring this to a vote. I have spo- Our tax package seeks to stabilize modification of the principal sum but ken to the minority leader, Senator the housing market by providing tem- only where the lender is in agreement. MCCONNELL, and he has said there are porary, targeted, and timely tax relief I do not do that to give the lender con- other Members who wish to come to to the housing market. We have devel- trol of the situation. I do that to avoid the floor to speak on this amendment, oped a consensus package that is lim- having a principle established where and I hope they will. There is no point ited to four provisions and these provi- lenders in the future will be unwilling in dragging this out indefinitely. There sions focus solely on our ailing housing to loan money for mortgages if they are many other amendments that are sector. The Finance Committee passed think the bankruptcy court has the au- going to be offered and I wish to bring the first two provisions early this year thority to reduce the principal over this to a vote. as part of the economic stimulus pack- their objection. But if the lender agrees I thank the Senator from Pennsyl- age. First, our package increases the to it—and I think it is important be- vania for yielding for a question. number of mortgage revenue bonds. cause the bankruptcy court would not Mr. SPECTER. Mr. President, I Mortgage revenue bonds are tax-ex- have the authority to reduce the prin- thank the Senator from Illinois for the empt bonds issued by State and local cipal unless there is the provision I questions. I think the questions clarify housing finance agencies. With the pro- have by obtaining the lender’s agree- the positions. It is almost like debating ceeds, these agencies can extend mort- ment. an issue in the world’s greatest delib- gages to home buyers at interest rates But the principle that the Senator erative body. Too often speeches are below the market rate. This will help. from Illinois seeks to reduce the prin- made with no one present except the It will help homeowners avoid fore- cipal sum, I think, is sound, so long as Presiding Officer and perhaps someone you do not destroy the ability of the closure and will increase first-time who is listening on C–SPAN 2, besides home purchases. lender to control it so as to not dis- my sisters. But we need more of this courage future lenders. So my answer The subprime and affordable mort- kind of a discussion in the Senate to il- gage markets have virtually collapsed. is yes. luminate and provide a little life and a Mr. DURBIN. Mr. President, if the As a result, demand for mortgages fi- little spontaneity besides Senators who Senator will yield for only two or three nanced by housing finance agencies is rise and read from a text, and fre- more questions. increasing. State housing agencies can I might acknowledge the fact that quently reading badly from a text. respond immediately to the growing currently those lenders can renegotiate I agree with the Senator from Illinois risks of foreclosure. These agencies can the terms of a mortgage without a that we ought to move ahead on this issue more mortgage revenue bonds. bankruptcy court and that giving them bill and vote as soon as possible, and I That can provide States the option to the last word is going to diminish, I be- join him in urging people who have refinance subprime mortgages, and ad- lieve, the likelihood that they would amendments to come to the floor. It is ditional mortgage revenue bonds can agree to anything by the bankruptcy my intention to offer another—my help clear out the glut of existing court. amendment, S. 2133, and to have a vote homes on the market through first- I might also say that under chapter on that after we conclude with the time home purchases. 12 bankruptcies and on farm loans a amendment by the Senator from Illi- Our proposal includes a second provi- few years ago, we gave this authority nois. sion that the Finance Committee to the Bankruptcy Court and the lend- I yield the floor. passed earlier this year. That is ex- ers said: Oh, interest rates will go up, The PRESIDING OFFICER. The Sen- tending the carryback period for net and they didn’t. ator from Montana is recognized. operating losses, otherwise known as But I wish to ask this specific ques- Mr. BAUCUS. Mr. President, I agree NOLs, from 2 years to 4 years. tion. My amendment limits these with the Senator from Pennsylvania. Generally, cyclical businesses have modifications to mortgages that are The last 10, 15 minutes has been one of profitable years followed by loss years. subprime mortgages, and the Specter the more edifying, constructive, and During a loss period, a company will bill, S. 2133, says these modifications helpful explanations on various ap- carry back the net operating losses would apply to any type of loan, even proaches. He made the statement that from the loss years to their prior prof- prime fixed rate mortgages. Is that not perhaps there should be more of that itable years. They will file a quick re- correct? on the Senate floor, a point with which fund claim and that quick refund claim Mr. SPECTER. It would apply only I strongly agree. I thank both Senators will act as a cash infusion that will as long as they are variable interest for that dialog. allow the company to survive a loss pe- rate mortgages. Mr. BAUCUS. Mr. President, Charles riod. Mr. DURBIN. Mr. President, I wish to Dickens wrote: The housing industry in particular also ask the Senator from Pennsyl- Home is a name, a word, will greatly benefit from an increased vania, through the Chair: Is it true it is a strong one; NOL carryback period. The expanded that the Senator limits the application stronger than a magician ever spoke, period will allow builders to avoid sell- of his modification of mortgages by the or a spirit ever answered to, ing land and houses at distressed Bankruptcy Court to families earning in the strongest conjuration. prices, and it will provide less costly fi- less than 150 percent of State median Simply put, we are here today to help nancing. income, which would be somewhere in families keep their homes. We are here An increased NOL carryback period the range of $60,000 to $70,000 a year in today to move a package of tax provi- will improve business conditions for most States—annual income of most sions that will help those families to the eventual return of the housing States—and would not cover those, for keep their homes. Our package does so market, and the expanded period would example, in the State of California and with tax relief for homeowners, for give the housing industry cash to meet other States where they have higher home buyers, and for home builders. payroll, which would certainly limit incomes and higher mortgages? We are offering this Finance Com- additional job losses.

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00015 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.024 S03APPT1 ccoleman on PRODPC75 with SENATE S2382 CONGRESSIONAL RECORD — SENATE April 3, 2008 Third, our proposal provides broad- I urge my colleagues to support the actually go in and rewrite the interest based tax relief for low-income individ- package. rate so people could afford their home. uals and those who have already paid I yield the floor. As a matter of fact, the cramdown ex- off their mortgages. Under our pro- The PRESIDING OFFICER. The Sen- ception, which this amendment would posal, homeowners would be allowed to ator from Texas is recognized. eliminate, actually helps people buy deduct local real estate property taxes Mr. CORNYN. Mr. President, the homes. It is pretty clear—Senator from their Federal tax return, even if Senator from Georgia has asked me to SPECTER from Pennsylvania quoted a they don’t itemize. According to the yield 1 minute of my time, and I will do U.S. Supreme Court opinion relative to Joint Committee on Taxation, more so without yielding the floor. this, but it is pretty clear that the con- than 28 million taxpayers pay property The PRESIDING OFFICER. Without gressional intent to exclude home taxes but don’t itemize. Our proposal objection, it is so ordered. mortgages from cramdown was in- would provide these 28 million tax- Mr. ISAKSON. Mr. President, I thank tended. Some have disputed that Con- payers a deduction for the amount of the Senator from Texas. gress was pursuing a policy of making their property taxes up to $500 for indi- While the chairman of the Finance home mortgages more available when viduals and $1,000 for married filers. Committee is on the floor, I express my we created the cramdown exception. Most often, nonitemizers are low or appreciation to him, Chairman BAUCUS, Senator DURBIN, I believe, has said middle-income people. Our proposal on the hard work that has been done on that the cramdown exception for home mortgages makes no sense whatsoever. will also benefit those who are not this particular legislation, in par- The record from the 1978 act clearly likely to itemize because they have al- ticular, the tax credit on foreclosed shows that Congress viewed exceptions ready paid off their mortgages. Senior homes, and to praise his staff for the to cramdown as a means of making citizens clearly would benefit. The late night concentrated hours Tuesday mortgages more available. The Senate Congressional Research Service esti- night and early Wednesday morning when this was put together. It was a re- Judiciary Committee report explained mates that nearly 130,000 property tax- that the purpose of the real estate ex- payers could benefit in my home State markable effort and I wanted the chairman to know how much I appreciate it. ception was to: ‘‘afford greater protec- of Montana alone. tion’’ to real estate financing ‘‘by cre- Fourth, our package provides a home Mr. BAUCUS. Mr. President, if I might respond to the Senator from ating a safe harbor that would facili- ownership tax credit for the purchase tate, rather than discourage, this type of homes subject to foreclosure. Behind Georgia, I certainly appreciate those remarks. He is to be complimented for of financing.’’ each foreclosed property is a family As I alluded, the courts have recog- bringing the idea forward to me person- kicked to the curb, and the suffering nized this policy in interpreting the ally and to others. It is a major con- does not end there. Foreclosed and va- act, most notable in Justice Stevens’ tribution to the solution we are pro- cant homes are a blight on the neigh- concurrence in Nobleman v. American viding here. We did have to tailor it borhood. They drag down home prices. Savings Bank. So I would say that the down a little bit within the confines of They are targets for vandalism and Democratic Congress of 1978, President the package. I thank the Senator from burglaries. Congress should encourage Carter, and Justice Stevens all have Georgia for being agreeable and for people to purchase those properties. acknowledged that this policy of ex- That will help to stabilize home prices working with us to find a way to make cepting home mortgages from and get the housing industry back on this work. cramdown makes sense and helps keep The PRESIDING OFFICER. The Sen- track. mortgage rates low, which I think Our proposal provides a one-time ator from Texas is recognized. ought to be our policy. credit for taxpayers of $7,000. The cred- Mr. CORNYN. Mr. President, I want Inadvertently, I think this amend- it will be claimed over 2 years and the to address the Durbin amendment be- ment would also encourage more peo- home purchase would have to be made cause I am concerned that the Durbin ple to seek bankruptcy as a way to deal in the following 12 months. The short- amendment would hurt low and mid- with their financial difficulties. It has term nature of this credit is critical to dle-income families by making home been argued that this provision would providing immediate stimulus. It also mortgage interest payments higher, actually encourage borrowers to nego- ensures that we do not oversubsidize make them more expensive, by discour- tiate with their lender. The one prob- the housing industry or exacerbate the aging credit counseling and mortgage lem with that is, as we all know, most current oversupply of residential renegotiations and inadvertently steer- mortgages these days are actually sold homes. ing more American homeowners into by the lender; they are packaged and This focused package of four pro- bankruptcy. then purchased as securities and sold posals will go far. It will go far to ad- Let me try to quantify what I mean on the open market. It is, in fact, what dress the housing downturn and eco- in terms of the expense. It is estimated has happened in the subprime mort- nomic weakness in our country. I am that the so-called cramdown provision gage market, which has created this proud we have all pulled together on would raise interest rates on average crisis. The people who actually bought this with Senator GRASSLEY and oth- by about 11⁄2 percent. In Texas the aver- those securities now find that they are ers, and I hope the Senate can pass it age home loan is $122,000 a year. The worth dramatically less than they into law expeditiously. monthly payment for a 30-year fixed thought because of the problems these A lot of irresponsible actions led to home mortgage at 6 percent is $734. If mortgage holders are having. So it is the housing crisis, but now a lot of re- you add a percentage point and a half certainly not a given that they will be sponsible homeowners, home buyers to that, it goes up by $122 a month. So in a position to negotiate with the and home builders are caught up in it. if these estimates are correct—and I lender, who no longer even holds that Tax relief and mortgage help to folks think they are the best information we mortgage. who played by the rules in the housing have available to us now—the average I am concerned, though, that the market is the right thing for Congress increase to Texas homeowners would amendment goes too far in those rare to do. The tax provisions in this pack- be almost $1,500 a year. It would be cases where negotiations are still pos- age will keep property values up, keep $1,465 a year. For that reason, among sible to remove the homeowner’s incen- folks in their homes, and keep busi- others, I oppose the Durbin amend- tive to negotiate and, instead, steer nesses afloat, and those are all keys to ment. them into bankruptcy. The Durbin handling the housing crisis. The bill actually risks increasing the amendment would, in fact, create a si- In sum, this is an effort to provide cost of owning a home for every Amer- ren’s song that would lure struggling tax relief to homeowners, home buyers, ican, and not just for people in my families onto the rocks of bankruptcy. and home builders. It is an attempt to State, in Texas. There has been a little For most Americans, our homes are help families keep their homes. It is an history to this provision as well. our largest and most-cherished invest- effort to preserve an important word The Democratic Congress and Presi- ment. The chance to have their mort- stronger than any magician ever spoke dent Jimmy Carter back in 1978 had a gage decreased by a bankruptcy court, or any spirit ever answered to—the reason for excluding from cramdown basically to renegotiate what a nego- word called ‘‘home.’’ the ability for a bankruptcy judge to tiated interest rate is, would encourage

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00016 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.026 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2383 struggling families to seek bankruptcy would increase annual costs about monthly payments were $5,300 every protection instead of trying to nego- $1,500. So I must oppose it. month. They called about it, and they tiate and get their finances back in Mr. DURBIN. Will the Senator yield were told it just wasn’t true. The paper order in a way that will preserve their for a further question? they signed was for $5,300 every month credit and will not lure them into Mr. CORNYN. I will. for the length of the mortgage. Then bankruptcy. Mr. DURBIN. Is the Senator aware they learned that not only was there I think it is worth noting that bank- that my amendment limits the modi- no cash back, but this broker walked ruptcy itself has lasting and serious fication of mortgages in bankruptcy to off with $20,000 in his pocket. These are consequences to the credit rating of those on primary residences, existing retired people. They were confronted the people who seek it. Bankruptcy is as of the date of the enactment of this with hundreds of pages of loan docu- not in the long-term interest of every law, and that it would not apply to any ments, filled with small print. They family who falls behind on their mort- future mortgages and would not have trusted their broker. gage. We should encourage negotiation an impact on future mortgages, those Not too long ago, my husband and I where possible. In fact, we know that is that are going to be issued. So the bought a home. We trusted our broker. what happens anyway. Very few mort- credit industry is saying: We are afraid He went through the papers with us. gage holders refuse to negotiate with this is going to apply to everybody. Candidly, I do not believe most people the borrower when they get behind in There is a limited application of a nar- read every line of what amounts to a their payments because, frankly, they row class of people who would be eligi- stack about 6 inches high of papers don’t want the property back. They ble. when you buy a home. want to continue the loan in effect, if Mr. CORNYN. Mr. President, I appre- For the Simmons family, they dipped possible. ciate the clarification. I also note that into their life savings. They are afraid So I think the Durbin amendment ac- the tendency in Washington and in they may lose their home. This is ex- tually discourages negotiation and cre- Congress, and the Federal Government actly the type of situation our bill ates an effective magnet, attracting generally, is for things to get bigger would prevent. people into bankruptcy. I have already rather than to contract. So while I ap- Let me give you another story of talked about why I think that is a bad preciate the clarification, I am not Steve and Valvina McFatten. They live idea. consoled by the current limitation. in Fresno, and they are in this photo Of course, this amendment also The PRESIDING OFFICER (Mrs. with their children and dog in front of waives the bankruptcy law’s coun- MCCASKILL). The Senator from Cali- their house. They have two teenage seling requirement when a home is in fornia is recognized. daughters. Steve is an assembly-line foreclosure, which is inconsistent with Mrs. FEINSTEIN. Madam President, worker. Valvina is an office assistant. the underlying Shelby-Dodd com- I am a cosponsor of the Durbin amend- They both work. promise that provides $100 million to ment and am very happy to support it. In 2005, a bank told them they could encourage credit counseling. Later, Senator MARTINEZ and I will be handle a mortgage of up to $135,000. The goal of the bill should be to help submitting an amendment. The Sen- When they saw their dream home the struggling families get back on their ator is in the Banking Committee now next year—listed at $250,000—they feet, not encourage bankruptcy filings and will come to the floor shortly. thought it was out of reach. But a that would raise mortgage rates for ev- I wish to take this opportunity to broker steered them into two mort- erybody, ruin the credit of the bor- speak about this amendment. It is also gages for $250,000 for only $1,000 down, rower, and ultimately not solve the supported by Senators BOXER, OBAMA, with an adjustable interest rate. Their problem it is intended to solve. For SALAZAR, DOLE, DURBIN, and CLINTON. combined monthly payments were that reason, I oppose the Durbin Essentially, this amendment deals with $1,600. Now, the McFattens have weak amendment and encourage my col- the fact that today there is a very thin credit, modest income, and two chil- leagues to do likewise. patchwork of State licensing for bro- dren to raise. They told their broker Mr. DURBIN. Will the Senator yield kers. It is insufficient. There are no na- they could not afford this loan. The for a question? tional standards for the licensing of a broker told them not to worry, that Mr. CORNYN. Yes. mortgage broker in this subprime mar- their monthly payments included their Mr. DURBIN. Mr. President, I ac- ketplace. In many States, there are property taxes, their mortgage insur- knowledge that the Senator is correct really no requirements. What that has ance, and a warranty for home repairs. that this modification of a mortgage done is enabled bad actors to flourish. Well, did that turn out? No. Here is on a primary residence would be a I wish to give you two examples of what the real deal was: no money to- change in bankruptcy law. I ask the what a bad actor as a subprime mort- ward property taxes, no money toward Senator from Texas, is he aware that gage broker means. insurance, and no warranty. It was can- in the 1980s we created chapter 12 bank- I met this family in the picture in celed without their knowledge. ruptcy for farms and created the oppor- Los Angeles this past week. This is the These are two examples of what is tunity for the bankruptcy court to Simmons family. Mr. Simmons worked happening in California. Many Ameri- modify mortgages on family homes and for Northrop Grumman for 20 years, cans trying to get a piece of the Amer- farms, and at the time the banking in- and Mrs. Simmons has been a checker ican dream have actually been sold a dustry said the same thing about that at Alpha Beta for 26 years. They are re- bill of goods by unscrupulous brokers change as they have about my amend- tired. They have owned this home in and lenders. When I was in Los Ange- ment—that it would raise interest Los Angeles for 39 years. Mr. Simmons les, the San Bernardino district attor- rates? Is the Senator aware of the fact had a stroke. When he had this stroke, ney, the Los Angeles district attorney, that there was no significant increase they obviously had additional medical and the State attorney general had in interest rates on farms as a result of expenses. Last year, they were in the just arrested nine bad actors in the the creation of chapter 12 bank- market for a better rate than the 8 per- mortgage broker business. So it is ruptcies? cent they were paying on the loan on going on all of the time. People are Mr. CORNYN. I accept what the Sen- their house which remained and was told: Don’t worry, you don’t need a big ator says. I have no reason to dispute $550,000. They got a cold-call from an downpayment. You can get into a zero- it. I, frankly, have no knowledge of it. unlicensed broker, who offered them a interest loan. Don’t worry about what I know that currently we have roughly $629,000 loan with these terms: $25,000 you are getting into. Home values al- 2 percent of the mortgages in America cash back, a 4.5-percent interest rate, ways rise. Don’t worry about the ad- that are in foreclosure proceedings. and monthly payments of $2,000 after justable interest rate; you can always While there is undoubtedly a serious four months at $5,300 to lower the in- refinance. Don’t worry, you cannot problem, I don’t think this is the right terest rate. They studied it and said, lose. solution to it. I said that some esti- ‘‘We can afford this.’’ And so they did Well, the fact is that you can lose, mates are that it would increase inter- it. Here is what really happened. The and you can lose big. I can say that ev- est rates by 1.5 percent on mortgages. interest rate was 11.2 percent, not 4.5 erybody should read the fine print and On a $122,000 mortgage in Texas, it percent. There was no cash back. The take the time to understand exactly

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00017 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.029 S03APPT1 ccoleman on PRODPC75 with SENATE S2384 CONGRESSIONAL RECORD — SENATE April 3, 2008 what their mortgage documents say. The bill would also establish a na- This is going on, and it is going on The fact is that people have difficulty tional database so individuals buying a all over California. The areas I just understanding these very legal docu- home who wanted to use a subprime pointed out, the 4 out of the 10 highest ments. They tend to depend on their mortgage broker could go on the Inter- areas are not the most affluent places mortgage broker. So the damage is net and find out if that broker is, in in my State. They are places where staggering. fact, licensed. families just like the Simmons have There were more than 2 million fil- The State would have the responsi- heard the rhetoric: We can put you into ings last year, and another 2 million bility to carry out these minimum the American dream; we can enable are expected this year. Senator standards and could add any standards you to buy a home; and here, I, the BOXER’s and my State is ground zero, they wished. But State regulators mortgage broker am willing to sit with 4 of the 10 metropolitan areas would be required to develop a satisfac- down and make you all these commit- with the highest foreclosure rates in tory licensing system within 1 year fol- ments. Then they find out the commit- the Nation. No. 2 is Stockton. No. 4 is lowing the enactment of this legisla- ments are ashes. San Bernardino. No. 5 is Sacramento. tion. If this does not occur, the Hous- This has to stop. There is no place for No. 7 is Bakersfield. It just so happens ing and Urban Development Secretary the predator in this industry. I know that these are areas with a lot of mid- is empowered to quickly develop a na- Citibank told me they oppose the legis- dle-class, hard-working families who tional database and license-generating lation. I say to Citibank: Are you tend to trust their broker. Both people revenue for its implementation proud of this? Is this the way you want in the family work. They may not all through fees to license applicants. to do business? be college graduates. They may have a There is broad bipartisan support for And I say to realtors who do not tough time understanding the fine this amendment. Our amendment is want these brokers to be licensed: Is print, and they depend on the person similar to a provision authored by Rep- that the way you want to do business? who comes to them as a professional resentative SPENCER BACHUS, a Repub- If it is, I am against what you want. and makes personal representations to lican from Alabama, the ranking mem- I hope this amendment is adopted. It them. ber of the House Committee on Finan- My State accounts for more than 20 has been talked about, it has been cial Services. dealt with in general terms in a past percent of the Nation’s foreclosure fil- The national licensing concept for ings. It is very serious. We have now bill that passed the House. The Presi- mortgage lenders and brokers was in- dent’s working group said we should learned how easy it is for anyone to get cluded in the comprehensive mortgage consider it. We now have the chance to into the mortgage business in some reform bill which passed the House in do it. States and, quite frankly, it is aston- November. And last month, the Presi- ishing. A simple Internet search will We face 2 million additional fore- dent’s working group on financial mar- closures, and we have to do something show how easy it is. kets recommended a similar proposal about predatory lenders and brokers, These are statements taken right off in their report on the housing crisis. and this amendment is a beginning. the Internet for a broker. Here is the I will conclude. The emergence in re- Mr. DURBIN. Madam President, will source: http://www.cflicense.com. We cent years of subprime and other exotic the Senator yield for a question? accessed this site on the 27th of Feb- mortgage products have put many Mrs. FEINSTEIN. I certainly will. ruary of this year. Here is what they American home buyers at great finan- Mr. DURBIN. Through the Chair, I advertised: cial risk, and many of these products am happy to be a cosponsor of the Sen- No experience, education or exam is nec- require little or no downpayment. They ator’s amendment. The last point she essary. allow people with bad credit to get in made is the one I found almost nothing To sell subprime mortgages in the over their head. They do not verify short of amazing: that the largest State of California. their wages. Many have exaggerated banks that are involved in the mort- And here is also what we learned: wages on the loan documents. And gage business, and the realtors who are You can hire unlicensed sales agents to most lenders and brokers offered these involved, obviously, in these trans- originate loans under your company license. mortgages, though, in a responsible actions are resisting Senator FEIN- In fact, a lot of the real estate indus- fashion. But many others used preda- try is opposed to mortgage licensing. tory tactics, such as failing to disclose STEIN’s amendment that would provide They want to be able to do that. But the full risk in order to place some basic standards for the licensure our job is to decide, is this in the best unsuspecting borrowers into mortgages of mortgage brokers. That is the point interest of the consumer? I don’t be- they could not afford. I would like to make, through the lieve it is. As a matter of fact, I find it Madam President, my heart broke Chair, to the Senator from California. I rather outrageous. I say to the real es- when I met the Simmons family. When continue to wonder why these noble tate industry: This does you no good to I think of somebody working for 20 professions are protecting the bottom have unlicensed subprime mortgage years for a defense firm in California, feeders of our economy, those who are brokers who give bogus information to his wife working for 26 years as a preying on people such as the Sim- your clients. checker in a supermarket so they could mons. So here is what this bipartisan buy and sustain a home which, as we I have stories in Illinois I can tell amendment would do. First, it would can see, they have kept in pristine con- that will match each one of the Sen- establish some minimum, basic Federal dition, having a health problem—name- ator from California, where there is license requirements. They would en- ly, a stroke by Mr. Simmons; it is dif- basic exploitation of people by those sure mortgage brokers and lenders are ficult for him to get around, it is dif- who mislead people in terrible finan- trained in ethics, consumer protection, ficult for him to speak—costing them cial circumstances, people of limited lending laws, and the subprime mar- extra, using the home as a basis to try experience and education who are try- ketplace. To be licensed, you would to refinance to take some money out of ing to understand the complexity of have to have no felony convictions, this house to pay for medical bills. mortgages and closings and interest have no similar license revoked, dem- What is happening now? A bad actor rates and all of the matters that have onstrate a record of financial responsi- got hold of them. They did not realize to be understood well. bility, successfully complete edu- what they were getting into. He prom- I ask the Senator from California, cational requirements, at least 20 ised certain things which did not come Madam President, does she have the hours of approved courses—it seems to through. And now this couple faces los- support of any financial institutions or me that is pretty basic—pass a coming their home. any of these professions that should be prehensive written exam, and meet an Fortunately, we were able to hook in support of State licensing of these annual license review and renewal re- them up last week with a community mortgage brokers? quirement. It would also require that pro bono law firm that will now rep- Mrs. FEINSTEIN. Let me answer all mortgage brokers and lenders pro- resent them and deal with their mort- that. Not to the best of my knowledge. vide fingerprints, a summary of work gage company and try to see if they Let me also say—and perhaps I do, but experience, and consent to a back- can recondition some of this loan back I will find out—let me also say ground check to authorities. to what they were promised. Citibank and even the California real

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00018 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.030 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2385 estate establishment want exemptions. nanced and on with the rest of their large community that will come in and Well, I am not willing to give exemp- lives. work with the homeowner and with the tions. I say for shame if this is the way That is the kind of relief I offered on lending agencies to try to work out you want to practice your business. It behalf of several of my Republican col- terms. is not acceptable. leagues in the Security Against Fore- Many of these will be able to get refi- Mr. DURBIN. I thank the Senator closure and Education Act, or SAFE nanced. It has to be voluntary on both from California. Act, of 2008. It provided help for fami- sides, but as has been said earlier on Mrs. FEINSTEIN. I yield the floor. lies to refinance distressed subprime this floor, lenders have a real disincen- The PRESIDING OFFICER. The Sen- mortgages, help for neighborhoods for tive for foreclosing. They got into the ator from Missouri. the purchase of foreclosed homes, help business not to own homes, they got in Mr. BOND. Madam President, too for returning war vets coming home to the business to receive payments. Very many families in Missouri and across the threat of foreclosure, and reform of often this means there is common the Nation are feeling the pain of the the Federal Housing Administration ground which can be agreeable to the housing crisis. They need our help now. that we all agreed upon last year and homeowners and the lenders to stay This Senate is coming together on a bi- still have not been able to pass. the costs and the risks of foreclosure. partisan basis to provide some relief to These proposals, I am very happy to Foreclosure not only is devastating deal with some of the real problems we say, form the core of the Foreclosure to the family, it is very devastating to find in communities throughout our Prevention Act substitute amendment the neighborhood. The neighbors see Nation. that is before us today. I thank Sen- their home values go down, and the Over the Easter break, I traveled ators DODD and SHELBY who came to- whole community suffers. That is why around the State. I talked with a lot of gether and assembled this bipartisan I had mayors and council members and folks who have a real and deep interest package of relief for families and city aldermen coming out and saying, in this housing crisis. I met with fami- neighborhoods. They took proposals what can we do? I said: Get good edu- lies struggling under the threat of fore- from our SAFE Act, housing proposals cation. closure, neighborhood groups coun- from our Democratic colleagues, and As the Senator from California said, seling families on how to keep their provisions from our friends on the Fi- we need better education for people be- homes, government officials at the nance Committee to make this relief fore they seek to buy a home, and cer- local level—mayors and council mem- package. tainly we need education and coun- bers—who were trying to find ways Most importantly, this measure will seling for those who see mortgage pay- they could assist, community leaders help struggling families refinance their ments rising above their reach. asking for our help. They told me subprime mortgages by authorizing Back to the provisions in this bill. about the neighborhoods devastated by State housing finance agencies to issue We supported on our side—and this foreclosures. More critically, they told $10 billion in tax-exempt bonds and use measure includes—help for struggling me of the personal problems faced by the proceeds for refinancing. neighborhoods by providing tax credits families running into foreclosure where I happen to know very well how effec- for that purpose over the next year of their adjustable rates had risen so high tively our Missouri Housing Develop- a home in or facing foreclosure. It is they could no longer afford them. And ment Corporation functions, and if $7,000 available for families moving in they talked to me about the devasta- they have this authority and if they and living in the home over 2 years to tion of family after family being can sell their bonds, then they will be keep the neighborhoods from being threatened with losing their home. able to refinance where people have flooded with properties in foreclosure, I did not hear from speculators who seen their mortgage payments escalate which drags down property values for overbuilt and are now caught with too beyond their ability to pay. This is the everyone. These tax credits should help much inventory. I did not hear from in- kind of assistance we expect from our all homeowners in the neighborhood by vestors who bought a second or third housing finance agencies, and we need stabilizing property values as families vacation home, expecting that the to empower them. get back into vacant homes and add price would go up more than they paid Secondly, to help families know their value. for it and now regret their bad deci- options to avoid foreclosure and keep Not surprisingly—not surprisingly— sions. And I did not hear from the them in their homes, it provides an ad- when I laid out this proposal to the greedy lenders who went out and of- ditional $100 million for loan coun- roundtables and the discussion groups I fered terms that were too good to be seling. I was proud to be able to join had around the State, one of the things true. Some of the worst ones were the with my colleague from Connecticut, the mayors and the city councilmen no-downpayment loans. Many others Senator DODD, in the Housing and liked the most was this ability to get offered unbelievable teaser rates and Urban Development appropriations bill those homes in foreclosure sold and oc- then put out paper that was absolutely last year to put $180 million in coun- cupied by borrowers who would be con- unaffordable by the borrowers. They seling. Congress passed it in December. tributing members of the community spread this toxic paper throughout the The first of these funds has gone out, and helping to stabilize those commu- system. It is putting at risk not only and they tell me already they are hav- nities. They recognize the importance our national financial system, but that ing a great effect. Many say that this has for their communities as well toxic stuff has spread to international knowledge means power. Housing coun- as the families who would be living markets, and markets across the world selors I met with over the recess told there. are feeling the pain of our subprime me how these counseling funds are One other part of this proposal that crisis. helping families know how to renego- is very important to me is that the In Missouri, I heard from mothers tiate with their banks to get good refi- measure proposes new loan disclosure and fathers who want to keep their nancing and keep their homes. requirements with a prominent, plain home. I heard from fixed-income sen- The message all of us ought to carry English explanation of key loan condi- iors who thought they had a deal they back to our home States when we talk tions. I want the borrowers to see in could live with until the rates started to people who are threatened by these big type any teaser rates or introduc- adjusting and the mortgages got out of problems is that if you see your mort- tory rates, anything that will change their ability to pay. These folks do not gage rates going up beyond your abil- the terms of their payments or limit want a government handout. They do ity to pay, if you have concerns about their ability and lead to foreclosure. not want a bailout. They do not want whether you can meet the terms of the I have had the distinction of living in the Federal Government buying their financing, don’t wait until foreclosure several houses in the last few years. As mortgage or buying the homes around proceedings are initiated. Don’t wait we have moved from house to house them. They are hard-working Ameri- until you get hauled up on the court- and purchased homes, I have seen that cans who want to be able to meet their house steps to see your property sold. stack of documents. As the occupant of original commitments and keep the There are counseling agencies that we the chair, I used to be a lawyer. I am promises they made. They need tar- have funded and will be funded addi- recovering from it now. I have looked geted temporary help to get them refi- tionally across the country in every at those documents and tried to make

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00019 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.032 S03APPT1 ccoleman on PRODPC75 with SENATE S2386 CONGRESSIONAL RECORD — SENATE April 3, 2008 sense of them, and I tell you there is would get rid of the idea that it is the attorney, and I have been one in the not enough time if you are purchasing American dream to put somebody into past, we know what happens at a real a house. It took me about 45 minutes a house with no equity in it. That is estate closing. You give people a stack to sign all the pieces of paper that asking for trouble, and that is one of of papers and you turn the corners and came before me. Now, that doesn’t help the sources of the trouble we face. say: Keep signing until you are fin- anybody. The Truth in Lending Act has I would say one other thing. A lot of ished. If someone has the nerve to ask: gone to ridiculous extremes. Unfortu- people are now realizing that this hous- What am I signing? Nine times out of nately, we let lawyers draft that, and ing crisis is the basis of financial chal- ten, it is going to be dismissed by the there ought to be a law against lawyers lenges and financial difficulties in the realtor or the lawyer in the room: Oh, drafting any kind of disclosure docu- United States and possibly even inter- it is another Federal form required by ments. We need to have those simple, nationally. I said earlier, this toxic law. Just sign it. Everything is fine. in plain English, so you know what paper has been spread throughout the At the end of the day, let’s be honest. your rate is, what it could rise to, world, and there are banks in other No one has read all of those forms. No whether there is a prepayment penalty, countries, there are investment houses one understands all those forms, par- and whether you can refinance it. That in other countries that are suffering ticularly those who are borrowing is on the first or second page. because of it. There had to be steps money. But the fine print in those Tell me something I need to know. taken at the Federal level, and some of forms is going to dictate their lives, Don’t make me sign 30 pages saying I the steps were a little bit breath- and they do not even know it. How have read all the fine type or all the taking. I was not wild about seeing the many of us take the time to carefully fine print. Fed have to move in and wipe out Bear read the back of our monthly credit Everybody knows that is a joke. Let Stearns and provide the guarantees, card statement? Not me. And the print us put disclosure in plain terms. That but I am willing to accept what the is so fine, even with these glasses should be a help in the future. Chairman said, and what others have which I have all over my house, I can’t keep up with it and understand it. We also have a provision from Sen- said, that this was necessary to stop So what Senator JACK REED proposed ator COLEMAN of Minnesota in this bill the domino effect of collapsing Federal to give returning war veterans more was that there be a cover sheet to the institutions and federally insured insti- disclosing documents which says: You time to avoid home foreclosure. Cur- tutions, and it is necessary to stop a rently, they have a 3-month window are borrowing X number of dollars, the worldwide panic from subprime loans. interest rate is X, the monthly pay- from their return to work out any There are other steps that have been ment will be X, the interest rate can mortgage difficulties they have. This taken as well—lowering the Fed rate to increase to X number, your monthly may not be enough time for them. So 1 1 3 ⁄4, 2 ⁄4. These steps are necessary on a payment can increase to a certain this proposed measure would extend macro level. But let me tell you one the protection against foreclosure to 6 amount, and there is or is not a pen- thing. This macro problem has a micro alty for repaying your mortgage. Pret- months after arrival home. That is the problem basis. The problem we face is ty simple, right? Well, you ought to see least we can do for our returning he- not just what happens in Washington what the financial institutions did to roes. or happens in New York or happens at JACK REED’s very simple proposal—one We have included provisions of the the Federal Reserve. This problem de- Federal Housing Act reform bill, which that made sense. pends upon how we solve the problems The reason it caught my attention is passed the Senate 93 to 1 last year. of the families facing foreclosure, of it amends the Truth in Lending law in That bipartisan, near unanimous re- the communities seeing a wave of fore- America. I have kind of a special at- form bill deserves to become law. FHA closures driving down property values. tachment to this, because the first per- is one of our key financing insuring This problem requires also that we son I ever worked for on Capitol Hill agencies for lower income people. We work for a solution that begins at the was Senator Paul Douglas, who tried to need to make sure it works. We have ground up; that takes care of the fami- pass the Truth in Lending Act for 18 heard about the possible application of lies in need; that takes care of the years. He was fought by the banks and FHA Secure to assist borrowers whose communities facing these problems and never succeeded. He left Congress in mortgage payments have gone beyond not do only what has been done nation- 1966, and Senator William Proxmire of their reach, but it is too limited. They ally, what we read about in the head- Wisconsin passed it. can’t use it. We need to loosen up the lines, but what we can only see in com- It was, I am sure, a good-faith effort terms so that the terms are not so munity newspapers back home, as to for better disclosure at closing, but the strict that FHA is in the position of how we help families and communities law is so complicated, so arcane, that what some people used to characterize struggling with foreclosure. at the end of the day it did not serve as a bank being a place that lends you This housing bill before us represents the ultimate purpose Senator Douglas an umbrella and takes it back when it the needs and values of our families sought. So I was anxious to read what starts to rain. The FHA holds out great and neighborhoods. It doesn’t provide the banking institutions would agree promise for being able to insure loans for any government buyouts of mort- to as part of the compromise bill before and get people in houses, but when gages, as some propose. It does not pro- us. I hope my colleagues will take a they say, if you do anything, if there is vide for refinancing of vacation or in- few minutes and go to section 501 of anything, if you miss any step, you vestment homes, as some fear. To- this bill and try to make sense out of can’t get the protection, it seems to me gether, our housing proposal will help this. What I described to you, in Sen- maybe we have tightened it down too families and neighborhoods across this ator JACK REED’s proposals, I could ex- hard. country get through the crisis and help plain at any town meeting in Illinois— I believe, however, for the future, it our financial systems to maintain sta- any Senator could—and people would ought to be the policy of the FHA—and bility. But most of all, for our families, say: Sure, why shouldn’t we know this? I would hope it would be the policy of for our neighborhoods, for our commu- We might have avoided some of the any responsible mortgage broker or nities, I urge my colleagues to support problems we have today if the bor- lender—not to make any no-downpay- this measure. rowers actually knew what they were ment loans. No-downpayment loans are Madam President, I yield the floor. getting into. one of the most significant contribu- The PRESIDING OFFICER. The Sen- Try to make sense out of what the fi- tors to housing foreclosures and failure ator from Illinois. nancial institutions agreed to in this to be able to meet those terms. If you Mr. DURBIN. Madam President, I bill. I have read through it. I don’t get don’t have the money to buy a house, thank the Senator from Missouri for it. I mean, it does try my patience that there is nothing wrong with living in a his statement. He made reference to at this moment in history, with so rented house. I have lived in rented something which I thought was so ob- many people facing mortgage fore- houses. You can save up the money to vious. Senator JACK REED of Rhode Is- closures, we do not have an appetite in buy a house. But to buy a house re- land had an amendment to the original the Senate to change the basic laws sponsibly, you need to have some bill, and since Senator BOND is an at- and rules to have more oversight and downpayment. I hope that the FHA torney, and the Presiding Officer is an avoid this happening again.

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00020 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.033 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2387 If it is uncomfortable for us to be someone challenges it or they say owners will have to go into bankruptcy plowing through all this legislation, something and I challenge it. Wouldn’t to get it. That is no news. He has made think about how uncomfortable it is that be exciting? C–SPAN might adver- that very clear. I believe otherwise; for 2 million homeowners facing the tise that is going to happen on the that voluntary efforts and programs loss of their homes. floor of the Senate, it is so rare. outside of bankruptcy will be quicker Senator FEINSTEIN was here a few I am ready. I hope, if the Senator and more efficient, in terms of helping moments ago, talking about these from Iowa is here on my amendment, people keep their homes and shoring up homeowners in her State. I have met that we can be engaged in a debate the housing market. We need to let them in my State. They are in Mis- shortly. these efforts work. souri, they are in Iowa. These are I yield the floor. Also, people will not risk ruining unsuspecting people, many of them re- The PRESIDING OFFICER. The Sen- their credit history by filing for bank- tired, many of them with limited expe- ator from Iowa is recognized. ruptcy just because they think that rience and education, drawn into com- Mr. GRASSLEY. Madam President, I this is the only way maybe they are plicated loans that have traps every rise for two purposes. One, to state going to be able to keep their home. time you turn. If you reach a situation some views on the Durbin amendment The mortgage banking industry needs where you have lost a job, where you and, No. 2, to give very short remarks to be doing all it can to make sure that have a serious medical bill, where on tax provisions that are part of the all homeowners in distress, not just the something has occurred here, you could underlying housing bill. I would like to ones in bankruptcy, are getting help in lose your home. A lifetime of savings speak on the Durbin amendment for making their payments. could be gone. the reason that I am the author of the I think more importantly, we have That isn’t right. I understand people bankruptcy reform provisions that been told the cramdown provision in have to accept responsibility for their passed here, maybe 3 or 4 years ago, Senator DURBIN’s amendment will in- actions, but you know a lot of these and are now law. I would like to speak crease the cost of mortgages for all people are being preyed upon, they are on the tax provisions as ranking Re- borrowers in the form of higher inter- being deceived. I have seen it happen. I publican on the Senate Finance Com- est rates or higher downpayments, or have talked to the families back in Illi- mittee. both. Independent experts, as well as nois. We had a chance, with this bill, to Senator DURBIN and I have had op- the Congressional Budget Office—and I put a very important and simple provi- portunities to work together on many like quoting the Congressional Budget sion in, on which the Senator from issues, and in fact we are working to- Office because they are not partisan— Missouri spoke. We didn’t do it. I gether on other things this very day, have concluded that there will be an might say, I see the Senator from Iowa, unrelated to this bill. I appreciate the interest rate increase for all home and I don’t want to take any additional opportunities to cooperate in a bipar- mortgages, between 1 and 2 percent. time, but I wish to say through the tisan way with Senator DURBIN. Sen- Higher interest rates will deny many Presiding Officer: We convened this ator DURBIN, many months ago, was Americans the ability to buy a home morning at 9:30. My amendment, which very polite, coming to me and asking and will make it more expensive for is pending, has been on the floor for me to take a look at his bankruptcy other Americans to get a home loan. virtually 3 hours now—almost 3 hours. language. It is probably similar to the So, in effect, this will put up barriers— I have stayed that entire period of time one that is before us right now. I know maybe unintended barriers, but real to entertain any questions or to engage the language has been changed some barriers, the experts tell us—to the in any debate related to this amend- since then, but it is basically the same American dream of owning a home. The fact is, in 1978, a Democratic- ment. concept. He asked me to consider it. There have been a lot of speeches I and my staff did consider it, and I controlled Congress and a Democratic about other issues. I don’t wish to be am standing here now to speak against President specifically—and I wish to emphasize ‘‘specifically’’—exempted critical of my colleagues. I have done it. But Senator DURBIN was very cour- primary residences from cramdown to the same thing. They have issues that teous in giving me a heads up, not just keep interest rates low for primary are important to them relating to this a few weeks ago but a long time ago. I homes and to ensure credit was avail- bill and other subjects. That is their want my colleagues to know Senator able for low-income borrowers. In fact, right. DURBIN is an easy Senator to work U.S. Supreme Court Justice Stevens I tried to get an agreement that at with, even if you disagree with him. 12:15 we would vote on my amendment, So I am here to voice opposition to explained, in the Nobleman case, that the legislative history of the 1978 bank- up or down, win or lose; let’s debate it Senator DURBIN’s bankruptcy amend- ruptcy law indicated very clearly that: and vote on it. I asked the Republican ment. While I appreciate Senator DUR- . . . favorable treatment of residential minority leader and he said: Too soon. BIN’s sincerity in trying to alleviate mortgages was intended to encourage the Other Members want to come and the home mortgage crisis, I believe his flow of capital into the home lending mar- speak to this amendment. I don’t want amendment is misguided and will have ket. to foreclose anyone’s opportunity to serious unintended consequences. So I Debate surrounding the Senate speak on the floor for or against this am going to point out some of my conversion of the 1978 act indicates that amendment, but why are we wasting cerns. exceptions for real estate liens were al- this time? That is my question. This is First, the proposal would make filing lowed with the explicit goal of making an important bill. There are a lot of bankruptcy a deceptively attractive home mortgages more available and very important amendments. Let’s get option for people trying to keep their more affordable than other kinds of on with it. Three hours should be homes. But we do not want to encour- credit. So I think, from the history of enough for this amendment. It is way age people to go into bankruptcy for the 1978 act, there is a sound policy too much. We could have debated this the sole reason of keeping their homes. basis for this decision to not allow thoroughly in a matter of an hour. Un- Rather, we should be working on solu- cramdown for primary homes in bank- fortunately, a lot of Members have not tions outside of bankruptcy to address ruptcy. come to the floor. this issue, and that is what a great part Mr. DURBIN. Will the Senator yield There should reach a point where the of the other provisions of this housing for a question? minority leader says to his colleagues: legislation before us is all about. That Mr. GRASSLEY. Yes. You had your chance. Now let’s vote. is what a lot of the things the Federal Mr. DURBIN. I would like to ask the That is kind of the normal consequence Reserve and the Secretary of the Senator—I don’t question what he has in life—you snooze, you lose, whether Treasury are trying to do, both said, but after that, in the 1980s, we you are in the Senate or not. So I en- through public policy as well as created a new chapter in bankruptcy, courage those who support or oppose through encouraging private sector Chapter 12. my amendment, come to the floor. I policy. Mr. GRASSLEY. Now you are getting am here. Let’s have something unprec- Other solutions need to be sought be- personal. edented, a debate, an actual debate in fore bankruptcy. In order to get the re- Mr. DURBIN. That is why I wish to the Senate, where I say something and lief Senator DURBIN wants, home- make this point. Because we said that

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00021 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.046 S03APPT1 ccoleman on PRODPC75 with SENATE S2388 CONGRESSIONAL RECORD — SENATE April 3, 2008 when it came to the so-called cant at this point. According to the Mr. DURBIN. I am saying your state- cramdown or modification of mort- USCOURTS.GOV Web site, the Federal ment should be modified. gages, we would make an exception and courts Government Web site, for fiscal Mr. GRASSLEY. I am looking at my the exception would apply to the year 2006 there were only 348 Chapter 12 staff because I am not a lawyer. My homes of farmers and their farm prop- filings; in fiscal year 2007, there were staff would disagree with you that my erty. We said if they go into bank- only 361 Chapter 12 filings. This would statement is inaccurate. But I will not ruptcy, they can have the mortgage on compare to what, at least I believe, you go into that now. their farm home crammed down or are saying are possibly at least 600,000 Furthermore, according to the Dur- modified. filings under your amendment. bin amendment, subprime loans are de- At the time, the banking industry Moreover, it took Congress over two fined to be any loan with an interest said this is a terrible decision because decades to make Chapter 12 a perma- rate of 3 to 5 percent over the Treasury we are going to have to raise interest nent part of the Bankruptcy Code be- yield rates for comparable loans. It is rates on farms. You are going to regret cause people were concerned about the my understanding that this definition this. We did it anyway, and there was possible negative consequences to al- could include prime loans and home eq- no significant increase in interest lowing cramdown for family farms. uity lines of credit, which would en- rates. Chapter 12 was initially only enacted compass a large number of loans. I would like to ask, through the as a temporary provision. The cramdown provision is just one In addition, I would like to say that Chair, whether the Senator from the of several problematic provisions in great agricultural State of Iowa ob- the definition of family farm which can Senator DURBIN’s amendment. The jects to cramming down mortgages on file under Chapter 12 is very limited. In amendment will increase bankruptcy farm homes under Chapter 12. fact, Chapter 12 only applies to a lim- filings, something I really do not think Mr. GRASSLEY. Madam President, I ited number of farms—those that have we should encourage. We should be am glad to answer that. First, let me less than $3.2 million in debt; debt has doing everything we can to keep people explain why I said he is getting per- to arise out of the farming operation; out of bankruptcy. It ought to be very sonal. I am the author of that Chapter 50 percent of income within the last 3 much a last resort, particularly be- 12 bankruptcy provision. I am going to years has to come from farming in- cause filing bankruptcy in and of itself address it very soon. So if you would come; and 80 percent of the assets in hurts a consumer’s credit rating. I listen, I think I will answer your ques- the estate have to be related to farm- think we can all agree that bankruptcy tions. I appreciate what you are saying ing operations. Those are some of the should be a last resort and one should and, in fact, I anticipated that, and I requirements. not file for bankruptcy unless it is ab- hope I am ready for it. I am sure it is So probably Chapter 12 ended up, solutely necessary. The amendment going to be difficult to satisfy the Sen- quite frankly, being a lot more narrow will increase mortgage interest rates ator from Illinois, though. than maybe I originally intended. But I and downpayments for other home- The amendment of Senator DURBIN think it is working. will not only increase interest rates on Finally, I want to go to the owners and potential home buyers. The mortgages and make home ownership cramdown that is allowed for boats, be- Durbin bankruptcy amendment will in- more expensive for everyone, many ex- cause boats are like cars: their values ject greater risk into and negatively perts tell us this proposal will also diminish rather than increase, which is impact our financial markets. have an adverse impact on financial very different from real estate, where I would like to be clear: I want to markets because of difficulties and un- values are expected to rise over the help homeowners weather the storm certainty in valuing the mortgages long term. just as much as the next Senator. I that back up securities. In addition, in- Proponents of Senator DURBIN’s want to support constructive solutions nocent investors would be hurt. So the amendment argue that the way the to help homeowners meet their obliga- Durbin amendment would cause other amendment is now drafted, only a very tions so they do not lose their homes. adverse impacts beyond higher costs of limited number of loans will qualify for In fact, I have worked very hard with home loans. cramdown in bankruptcy. Now, while other Senators to craft tax provisions Proponents of this amendment, par- the amendment does attempt to limit that I am soon going to address that ticularly the cramdown provisions, the scope of the legislation from how it are currently contained in the under- argue that primary residences should was originally drafted when Senator lying housing proposal before us. But I be crammed down in bankruptcy just DURBIN introduced his bankruptcy pro- am concerned that the Durbin bank- as second homes, family farms, and posal as a stand-alone bill—that was ruptcy amendment we are considering boats are. But there are good reasons probably soon after he had talked to right now—if we adopt that, we are why primary homes are treated dif- me about it several months ago—the going to pass legislation that would do ferently from these other things. reality is that the language still is ex- a great deal of harm. I am concerned First, interest rates and tremely broad. Cramdown and other about the possibility of the amendment downpayments for vacation homes are loan modifications are available for helping some, but hurting many oth- significantly higher than for primary many loans, both nontraditional and ers. I am not alone in my concerns. homes. If we are to start treating pri- subprime as defined by Senator DUR- Many experts agree that the Durbin mary homes the same as vacation BIN’s amendment, made before the bankruptcy cramdown proposal is prob- homes, I am told that then interest amendment’s effective date. That is, of lematic and could have serious adverse rates are certain to rise to the same course, a lot of loans. Since there is no consequences. So I am asking my col- level of second homes where cramdown sunset date in the amendment, bor- leagues to vote against the Durbin is permitted. rowers could file for bankruptcy and bankruptcy amendment. Second, Chapter 12, referred to by the still get this cramdown relief years and I said that I am the ranking Repub- Senator from Illinois, only applies to years from now. lican on the Senate Finance Com- very small commercial farming and Mr. DURBIN. Would the Senator mittee. I now wish to give a short ranching operations, not all farms and yield for a question? statement about some of the tax provi- not all ranches. There are very specific Mr. GRASSLEY. Yes. sions. I may have to be more specific requirements that need to be met in Mr. DURBIN. I ask the Senator, when we get into debate on this, so this order to be able to file under Chapter through the Chair, if he is aware of the is kind of a preliminary notice of where 12. So we are not talking about the fact that this only applies to mort- the committee is coming from. First of same number of loans that could be eli- gages, subprime mortgages on a pri- all, as usual, I find it very necessary to gible under the Durbin amendment. I mary residence that had been entered thank Chairman BAUCUS for his cour- would be glad to give some statistics into as of the date of the enactment of tesy and hard work in the legislative on that, but I am going to wait and see legislation, not to any future mort- effort. Our goal was to develop a bipar- if the Senator from Illinois is satisfied. gages of any kind? tisan tax package that responds to the Actually, I will give these numbers Mr. GRASSLEY. So then you are needs of Americans and, in particular, now because I think they are signifi- saying my statement was wrong? the housing market.

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00022 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.047 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2389 Americans are struggling to keep This bill also offers a tax credit to is the problem: If banks today, if mort- their homes and their jobs. As eco- help people buy homes that are in fore- gage lenders today were jumping for- nomic conditions continue to worsen, closure. These homes are depressing ward to renegotiate these mortgages, it is appropriate that Congress act to home values in the marketplace. It is we would not be standing here in this enact tax laws that address the hous- important that this inventory is moved debate. They are not. People are in a ing problem. After all, the housing so as to help retain home values. position where they are about to lose problem is at the root of the current This bill also increases the cap on their homes, and these mortgage insti- economic turmoil and anxiety that mortgage revenue bonds to give people tutions are not responding. people have. in distressed loans additional options I will give you an example. A woman Last year, we responded to the call for refinancing. This is not a bailout named Carol Thomas in Peoria, IL, re- for help. Congress enacted the Mort- for homeowners; this is a provision tired as a drugstore clerk, spent her gage Debt Relief Act of 2007 which was that helps enable people to keep their lifetime in that very basic job, retired signed into law by the President. This homes and to pay mortgages. with her husband, who worked at a fac- law excludes from income discharges of As we proceed on this bill, I am ask- tory. They bought a little home in Peo- indebtedness incurred by taxpayers to ing everybody to keep in mind what I ria. After they retired, her husband got acquire homes. It also extends the tax said at the beginning: We need to ad- sick. He could not climb the stairs any- deduction for mortgage insurance pre- dress the housing downturn, but we more. She wanted to keep him home as miums. need to show restraint. We need to long as possible and knew he could not Earlier this year, Congress acted at limit the relief so that it eases the get upstairs to the bedroom, so she lightning speed to enact a stimulus problem, but does not create new ones. went looking for another house, a package that delivers additional relief We need to be considerate of the many smaller house but one floor. She found to American taxpayers. As a result of Americans who worked hard to save one near where she lived, and she ended that legislation, Treasury will be send- and buy homes and who will ultimately up buying the house. ing out rebate checks in a few weeks pay the price for this relief, if the relief Unfortunately, the medical bills got that will give the economy a much is used, and we expect it will be. They the best of them. She ended up needing needed boost. should benefit, too, in that any tar- some money to pay off medical bills. We have carefully balanced this tax geted relief will, in fact, give the econ- Now, this is the No. 1 reason people do relief package being considered today omy a boost and not be a drag on the file bankruptcy in America: medical on the floor. It addresses the housing economy, drag it down even further. bills. But to avoid bankruptcy, she downturn but is limited so as to ensure We want to keep people employed, and thought: Maybe I can borrow more that it helps the problem and does not particularly the taxpayers who were money on my home. She got ahold of simply create new problems. We are conservative in their financial plans one of those mortgage lenders. And mindful that any relief that benefits should not be harmed as a result of this is why I support Senator FEIN- one sector of the public does not do so this. STEIN’s effort to license these mortgage at the expense of another sector. The I yield the floor. brokers. She could not have received other sector is the taxpaying popu- The PRESIDING OFFICER. The Sen- worse advice. This poor woman who lation that carefully managed their ator from Illinois is recognized. was no business expert, no college family budget, especially as it is re- Mr. DURBIN. Madam President, I graduate, just a hard-working woman lated to housing costs. Taxpayers bear thank my colleague from Iowa. He and who deserves a decent retirement, was the burden of a bailout of these risky I are friends. We have worked together advised to consolidate her debts in her mortgages that went south. So it is im- and continue to work together on new mortgage. They brought together portant that we have a compassionate many issues. We have profound dis- all of the debts she had and lumped view that recognizes taxpayers possibly agreements on some issues, but we them into a new debt on her home. picking up some of the tab. have managed to maintain our friend- They were so unscrupulous and so de- Once again, the Senate is stepping in ship regardless. ceptive that they brought into this to help Americans in distress. The tax We had the responsibility for a num- package of consolidated loans a zero- relief package helps encourage home ber of years of dealing with the Bank- percent loan she had from the city of ownership and encourages the basic ruptcy Code. I will say to my friend Peoria for home improvements. Can businesses that are tied to the housing from Iowa, for a man who is not an at- you imagine? This woman was paying industry to recover some losses. Keep torney, I was always impressed by his off that home-improvement loan with in mind that those businesses create knowledge of the issues and his ability zero percent, and this unscrupulous jobs. More jobs means a stronger econ- to articulate his position effectively mortgage broker and lender ended up omy. whether his opponents were attorneys putting that debt into her home where In 2002, Congress passed a stimulus or not. So I thank you very much for she was paying interest on it now. bill that provided some of the very your comments today. I respect very Thanks so much for the help for Mrs. same relief that is contained in this much your point of view, although I Thomas. bill. In 2002, Congress passed, with disagree with the conclusions. It did not take but a year for the bot- overwhelming support, a provision to The purpose here is not to send peo- tom to fall out. The reset came in. Her extend the net operating loss ple to bankruptcy court, it is the oppo- husband has since passed away. She carryback. This provision passed with- site. Going to bankruptcy court these was trying to get by on meager savings out controversy. Hopefully, there will days is not a trip to Disney World. It is and Social Security. Her mortgage pay- be no controversy this time. Then, a problem. You have to go through ment doubled, and there she stood, again, earlier this year the Senate Fi- credit counseling, you have to gather about to lose her home and her retire- nance Committee passed a similar pro- all of your documentation, walk into a ment, thinking about going back to vision to extend the net operating loss courtroom, usually with a lawyer, and work to save the home. carryback once again, with over- be prepared for a pretty tough ordeal. That is when she showed up at that whelming support by the committee. And then, if you successfully complete little gathering I had to talk about this Relying on our successes in the past, the bankruptcy, you carry that stigma issue. It is a heartbreaking situation. we have included similar provisions in with you for years. Whenever you want She said to me ahead of time, before this bill. However, the net operating to apply for a loan, one of the ques- the press conference got started: I hope loss provision in this bill is even more tions asked is: Have you ever filed for I do not cry. I said: Just be as strong as conservative than the relief offered in bankruptcy? So I do not believe people you can. And she did not cry. the past. Instead of a 5-year carryback, are gleefully jumping at the chance to She contained her emotions but al- this proposal offers a 4-year carryback. go to bankruptcy court. For most of most lost it when she talked about her This provision, of course, is a no- them, it is an embarrassing experience, husband and what he went through. brainer. It helps the very industries it is a humbling experience, and it is She then said: I don’t know which way suffering from this housing downturn one they want to avoid. to turn. I call this mortgage company. and will help Americans continue to be The purpose of this bankruptcy pro- I will not give their names here be- employed. vision is to avoid that experience. Here cause there is a good ending to this.

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00023 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.048 S03APPT1 ccoleman on PRODPC75 with SENATE S2390 CONGRESSIONAL RECORD — SENATE April 3, 2008 She said: I call the mortgage com- faulted on a mortgage with our com- tion. We have reached the point where pany and they say to me, you clearly pany. we just come down to the floor and can’t make these payments, so just You think of these cases, and you read speeches and finish the speeches stop making payments. wonder what is going through the and leave the floor. That is unfortu- So she said: I didn’t send in the minds of these financial institutions. nate. It would be better for the debate, monthly payment which would have Here many of them have created this for the Senate, and for people following exhausted my savings. Then they sent subprime mortgage mess which was a it to hear both sides of the story, to me a notice and said: You are in de- catalyst for this recession, which we hear me defend my amendment and fault. You are facing foreclosure. I are sadly heading into according to Mr. those who are critical of it express can’t win. I follow their instructions; Bernanke, and these same mortgage their point of view. It doesn’t happen they tell me they are going to fore- bankers still rule the debate in the much. It should happen more. I hope it close. Senate. Doesn’t this tell you a great will happen soon. She had some counselors helping her, story about this institution; that the I am going to renew my request of and the counselors said to me: Would mortgage bankers responsible for this the Republican leader after the lunch you call the mortgage institution and mortgage foreclosure crisis are telling period which many Senators now are see if you can talk to them? people: Don’t vote for that Durbin involved in to try to bring this to a So I did. I called and left a message amendment. We are opposed to that. vote. I think we have given Senators for the vice president of this major And Senators say: That is what mort- over 3 hours to come to the floor, and company. If I gave their name, it would gage bankers say, and that is where I exactly three Republicans have come be recognized instantly. am going to be. to speak to this amendment. If it is one I said: Please give this woman We have a responsibility beyond the an hour, then we have 46 more hours to straight advice and figure out if there special interest groups that line the go because there are 49 Republican is any way she can stay in her home. hallways in nice silk suits. We have a Senators. That is unfortunate. It is un- Within 24 hours this vice president responsibility to a lot of people like necessary. I hope those who do come to said: We will take care of it. Ms. Thom- Carol Thomas and Irene Hernandez. the floor will read this amendment as can stay in her home, new interest These are hard-working people who de- carefully. rate, much lower percent interest rate, serve a break. Many of them were ex- The argument that this change in the and she is OK. Don’t worry about it. ploited, deceived. They deserve a bankruptcy law is going to raise inter- Why did she have to go through that? chance. That is all I am asking. The est rates is one that cannot be sus- Why did I have to make that call? Do tained. When I asked Senator GRASS- vast majority of them will never end Senators have to get on the phone, all LEY about the provision relating to up in bankruptcy court, will never 100 of us, and call on behalf of 2 million farmers’ homes being allowed to be have the benefit of this proposal. But home owners to get this straightened treated this way, he said it was a lim- some of them will. Some of them are out? I had to make that call because ited number of farmers who have filed going to be able to keep their homes that mortgage company wouldn’t step for bankruptcy. He is right. But if the up and do that until somebody pushed because of this. principle is sound for a farmer’s home, I cannot imagine what it would have them. I didn’t have any threat I could why is it not sound for a person living meant to my family when I was raising hang over their head other than the in town? If a farmer can go into court them if I thought I was going to lose embarrassment to their company of and ask the bankruptcy court to my home—not only the embarrassment not helping this poor woman out. But change the terms of the mortgage so of it, the uncertainty of where they they finally did it. Why did I have to that they can stay on the farm, why is would go, but moving out of the neigh- make that phone call? Why did she this inappropriate when it comes to borhood, changing schools, leaving have to go through month after month those living in town? The principle is of being beaten up by people on the their friends. That is something we the same, and the principle is sound. phone giving her conflicting advice? should not just look on as a routine oc- It is true that chapter 12 bank- That is why this is needed, not so currence in life. It is something they ruptcies for those facing agricultural that Carol Thomas and people such as will never, ever forget. That is why shortcomings are restricted, but so is her end up in bankruptcy court but so this bill is important. this provision, restricted to those who that the mortgage lenders know if they I have been on the Senate floor now qualify for bankruptcy; to those who will not sit down and work with people, for 3 hours and 10 minutes with my have a primary residence, a home at those folks may end up in bankruptcy amendment. I have invited every Sen- stake; for existing mortgages, as of the court and the bankruptcy judge may ator who wants to come to this floor to date of enactment of this law, not modify the terms of the mortgage. If oppose or support this amendment to after; to provide, as well, that the they know that is coming, they might come on down. The Senate floor is mortgage terms can only be reduced sit down and talk to Carol Thomas or empty but for the Presiding Officer, for the principal to fair market value, somebody before it reaches that point. whom I thank very much for being no lower; that the interest rate on the Some of my colleagues may have here. There have been three Senators new mortgage modification cannot be been listening or on the Senate floor on the other side of the aisle who have lower than the prime rate plus a pre- earlier when my colleague from Massa- come to speak against my amendment. mium for risk; that the term of the chusetts, Senator KERRY, told his When I asked the Republican minority new mortgage modification cannot be story. Isn’t this a great story? Irene leader if we could schedule this for a more than 30 years; that we protect the Hernandez of Lawrence, MA, a mother vote up or down, let’s have the decision lending institution; if the property ap- trying to raise her children, ends up of the Senate, he said: Senators want preciates in value over the next 5 years over her head with a mortgage. They to speak. Well, good. That is appro- after the bankruptcy, any appreciation come in and tell her that since she has priate. There should be speeches, and I in value goes to the lender, not to the defaulted, they are going to have to hope even debate. But I have to urge owner of the property. We have put all foreclose on her mortgage and toss her my colleagues, if they believe there is of these provisions in there. We keep out of the house. a sense of urgency about the housing narrowing it down to what I think is a They say: Your $210,000 house is now crisis, please come to the floor. Please very discrete group of people. It is not only worth $99,000. So we are going to join us in a conversation for or against prospective. It does not apply to things toss you out and we are going to sell the provision. in the future. your house for $99,000. I respect Senator GRASSLEY of Iowa Once every 60 years or so we have a Irene Hernandez says: I will buy it. I who opposes my provision. I respect housing crisis in America. I am glad it can pay a mortgage on $99,000. You the fact that he came to the floor and doesn’t occur more often. To respond in know that. I have been paying this expressed his point of view and sub- a temporary, focused, and narrowly mortgage. So why don’t you let me buy mitted to a question or two. For some gauged way is appropriate. I think it it? who don’t follow the Senate, this is a gives people a fighting chance. They said: No. You are disqualified. rare occurrence. A Senator actually al- I have taken the floor most of the You are disqualified because you de- lowed another Senator to ask a ques- morning. I know my colleague from

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00024 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.042 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2391 Louisiana is here and has a very impor- lies. Some of them, in my opinion, de- In Jefferson Parish, LA, it is 2.6 per- tant statement to make regarding this serve help. Maybe some of them don’t. cent. bill and her region of the country. I I hope this bill will sort the wheat from In St. Tammany Parish, LA, it is 2.4 thank Senator LANDRIEU for being such the chaff because maybe some of these percent. a strong advocate for the State of Lou- people entered into the kind of loans In Vermilion Parish, LA, it is 1.0 per- isiana and for their recovery from Hur- they shouldn’t have. Maybe they cent. ricane Katrina. should have read the fine print, and So my amendment is drafted to ad- I yield the floor. they didn’t. I am not here saying every dress something that will help these The PRESIDING OFFICER. The Sen- single one deserves a handout, but I am families. ator from Louisiana. saying they deserve this Senate to talk After the storm, when these homes Ms. LANDRIEU. I thank my col- about what help they might need to re- were destroyed, we passed a special league from Illinois for those com- ceive and the ramifications. community development block grant, ments. I do appreciate his help because If the whole financial establishment extra grants to Mississippi and Lou- from the beginning of the catastrophe could get together and have a debate isiana and Alabama and Texas, sort of we faced from Hurricanes Katrina and about Bear Sterns and Wall Street and like we did right after the Twin Towers Rita, the anniversaries of which we what it might mean, what it would fell in New York, there was some extra will not celebrate, by any chance, but mean to the country if Bear Sterns col- community development block grants mark by the end of August of this year lapsed, and they debated and came up sent. The Congress did the same. Not and, of course, 3 weeks later in Sep- with a solution, we most certainly need everything we did was perfect in that tember, we still are struggling. I thank to be on this Senate floor talking regard. There were still some discrep- the Senator from Illinois for his con- about what solutions might be appro- ancies in how it was allocated. But suf- stant help and support as we work priate for homeowners. I understand fice it to say for this discussion that through how to recover, how to rebuild the Bear Sterns issue was that they money was sent, and out of that with a Federal agency, FEMA, that were all intertwined and, if they failed, money, Mississippi created the Home- was caught flat footed and poorly maybe all the other banks would fail. owners Assistance Program and Lou- staffed and poorly resourced and dis- Let me say for the record that in isiana created the Road Home Pro- organized. Initially, it made some im- places such as Detroit, if all of these gram. provements, but we still have great homes fail, it will put such a burden on These were grants that were given to challenges when it comes to the re- that city or that area that others who homeowners to try to help them be- building of the gulf coast. had nothing to do with any of this may tween what their insurance would That is why I am here to take this also fail. That is the principle. It is the pay—and many of these homes were opportunity, while we are on a housing same principle for which the Fed sort fully paid. These are problems where bill for the Nation, and there is some of bailed out Bear Sterns. And we most the mortgages were completely paid real urgency to get real help to real certainly need to be on the floor of the off. Some of these properties had insur- people who need the Federal Govern- Senate talking about not trying to ance. Some of these properties did not ment to act to help stabilize markets save people who did the wrong thing have insurance because they were not appropriately. And as we are talking but trying to help people who did noth- in a flood plain, and they were not re- about this, I wanted to offer an amending wrong and may get pulled down by quired to have insurance. So these are ment that I would like to speak on, one maybe whatever people want to charac- homeowners who did not do anything amendment that I intend to offer to terize as our inaction or inappropriate wrong. The homeowners I am talk make sure this bill, in its attempt to regulation, whatever. But this is not talking about did just about every- help homeowners struggling to get normal. We are on the floor talking thing right. Some of them maybe back in their homes, as this bill tries about these numbers because they are should have had insurance and did not, to help neighborhoods stabilize from high. but, believe me, they are suffering the Detroit to California to the east coast, Let me show you what the gulf coast consequences of that. We are not bail- as this bill attempts to do other things, numbers, though, look like because it ing everybody out. is striking. that we do continue to give appropriate But what we did do was allow them Let’s take St. Bernard Parish. Let’s aid and support to the hundreds of to take this Road Home grant. Then in look at this chart with the other one so the tax law they can also take a cas- thousands of homeowners who are still we can get a comparison. Remember, struggling despite the good work this ualty deduction. This is the problem: If Detroit has 41,000 homes, or 4.9 percent, my amendment, which I am going to Congress has done to give them help. that were destroyed. That is basically A chart illustrates this, if I could put offer when I can, and ask for a vote on this Detroit, Livonia, Dearborn area. it—and I will offer this amendment not it up. We have heard a lot about the Let me tell you about what the peo- just for myself but for Senator COCH- city of Detroit and a region which has, ple from St. Bernard are still reeling RAN, Senator VITTER, and Senator outside of Stockton, CA, and Las from. It is not a 5-percent, it is not a WICKER. All of us are together in a bi- Vegas, NV, the highest percentage of 10-percent, it is a 54-percent destruc- partisan way asking the Congress to foreclosures, almost 5 percent in this tion rate—54 percent. There is no coun- give us some relief. If this amendment region, which is a significant percent- ty or parish in the country that is ex- I am going to offer is not adopted, age. Stockton, CA, almost 5 percent; periencing right now the devastation of these families—I am going to give you Las Vegas, 4.2; other communities from homes, including those that are closed, an example of the Jones family and the Sacramento to Miami, FL, to the Den- empty or vacated. ver-Aurora area, Fort Lauderdale, a Now, we are recovering from a dis- Smith family—will end up paying fairly significant percentage of homes aster, which is not necessarily the much more in taxes than they can af- that are foreclosed. In some areas, it is same thing as a foreclosure. But I hold ford, and it will be counterproductive quite a few people. these charts up to show the nature and to our recovery effort. Let’s look at San Bernardino, CA. the scope of the problem. Let’s take the Jones family. They This is 51,000 homes. That is a lot of In Cameron Parish, it is not 4 per- earn $75,000 a year. Their home was homes, a big place, lots of people, lots cent, it is not 10 percent. It is 46 per- substantially damaged. They did not of children. You can imagine in your cent. take a casualty deduction as the cur- mind, if you are from a community of In Plaquemines Parish, it is 44 per- rent law allows. They paid the full 50,000, how big that could be. They are cent. In Orleans, it is 78,000 households, amount of the taxes. Then out of the not all in this situation, clustered, 41 percent. community development block grant— 51,000 foreclosures all in the same In Hancock County, MS, it is 27 per- let’s say they are in Mississippi—they block. Some of them are spread cent. received a grant from the State of Mis- throughout a great area. But that is In Harrison County, MS, it is 10 per- sissippi of $75,000, from the Mississippi still a large number. cent. Homeowners Assistance Program. This is why we have come to the In Jackson County, MS, it is 4 per- Their Road Home grant will not be floor to try to bring help to these fami- cent. taxed. This family is fine.

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00025 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.043 S03APPT1 ccoleman on PRODPC75 with SENATE S2392 CONGRESSIONAL RECORD — SENATE April 3, 2008 But for this family, the Smith fam- encing some difficulty with their mort- broad precedent that the Government ily—which makes the same amount of gages. But I have to ask this Congress will simply bail people out whenever money, and their house was completely to please continue to know that we they lose money or face tough times in damaged—they did take the deduction. still have homeowners who are strug- the housing market. Financial invest- They got about a $7,000 benefit. Be- gling after 21⁄2 years to get back into ments involve both risk and reward, cause of what we did, they got their their homes, with some very com- and contracts are legal documents; we $75,000 grant, but if they have to pay plicated help that we and the States need to reinforce accountability taxes on this, their tax could be as high and the parishes are trying to give amongst all parties for these elements. as $24,000. them. I also believe that any efforts to ad- Now, the people whom I represent in So my amendment will correct that. dress foreclosures should be done in a Louisiana—and I am sure this is the I will offer it when we move to that thoughtful, comprehensive manner. same for Mississippi—can barely pay part of the legislation. I will also have Any effort to provide foreclosure relief their utility bills right now, their in- several other amendments that will must carefully address any risk to tax- surance bills. They most certainly can- help the recovery process move for- payers. not pay a $24,000 tax bill. ward. They are all about housing. They As part of the housing package before If my amendment is not adopted— are all about helping people get back in the Senate, we are considering an and I think it has good support from their houses. They are not necessarily amendment which would give bank- Finance on both sides—this family that on a different subject or anything be- ruptcy judges the ability to modify I told you about that makes only cause I realize we will have other dis- mortgage contracts after the fact. $75,000 a year, that had their home de- cussions later. The bankruptcy modification provi- stroyed—through no fault of their But while we are on housing and sion would undermine the recovery of own—because of a confluence of things while we are trying to fix it for every- the housing market and the economy we have done, will end up having to body in the country, let’s please stay by creating a credit crunch: It would pay $24,000. focused and give a few tweaks here and have a negative impact in the financial So you may ask me: Senator, how ex- there to keep this recovery going in markets, making it difficult to value pensive is your amendment? It is not the right direction on the gulf coast be- mortgages that underlay securities. cheap. The score for this amendment is cause we have a long way to go. The provision will discourage $1 billion. It is not cheap. But we have I see my colleague from Kansas, and securitization, and securitization en- to provide this support for these gulf I yield the floor. courages homeownership. coast families or you will have thou- Mr. ALLARD. Madam President, Securitization frees up capital to go sands and thousands of families suffer homeownership has long been the back into making more mortgages. Ap- who arguably need the most help in the American dream, and over the last dec- proximately 84 percent of primary country. ade record numbers of families have home mortgages are securitized; how- These are families who at one time been able to achieve the dream of ever, looking at second homes, where owned homes such as this, as shown in homeownership. Unfortunately, too the mortgage can be modified in bank- this picture. This happens to be a dou- many homeowners now find themselves ruptcy, we see that only 9 percent are ble. I will show you another picture of in mortgages they can’t afford. Many securitized. Justice Stevens of the Su- another home. These are people who of them knowingly or unknowingly preme Court reiterated in the Noble- did not do anything wrong. They did took out exotic mortgages that made man case that ‘‘the favorable treat- not take out any subprime loan. They wildly unrealistic assumptions about ment of residential mortgagees was in- did not try to take out a low adjustable the housing market; namely, that tended to encourage the flow of capital mortgage. They took out their regular housing values would continue to dra- into the home lending market.’’ 30-year mortgage. They paid off their matically increase. The cramdown amendment would sig- regular 30-year mortgage. They paid in- As we all now know, home price nificantly increase the cost of home- surance their whole life. They will have growth was unsustainable. Unfortu- ownership: This provision will inject to end up paying $24,000 in taxes, and it nately, too many families are now fac- risk into the lending process. Whether will be the straw that breaks the cam- ing the possibility of foreclosure. Just the other side likes it or not, the mar- el’s back. as ownership brings many benefits to kets will price to this risk by increas- So you have heard me speak before families and neighborhoods, fore- ing the cost of mortgages for primary about this issue. I know it can be a lit- closures have dramatic negative con- residences in the form of higher inter- tle complicated. We are not trying to sequences for both individual home- est rates, down payments, points and ask for double dipping or anything. But owners and the economy as a whole. fees. It is a basic tenant of the free I am going to be offering this amend- We have seen a rapid increase in the markets that more risk requires a risk ment. It is important to remember, if number of foreclosures, and many ex- premium. Even the Congressional we do not do this, we will have thou- perts predict that the number will con- Budget Office noted in a recent report sands of people, homeowners, who are tinue to climb in the near future. Obvi- that one of the costs of the bill ‘‘would trying to stay in their homes, rebuild ously, this creates great hardships for be higher mortgage interest rates.’’ Es- these neighborhoods that are virtually the families facing this possibility. Ac- timates are that the provision will in- destroyed, not on a beach—even though cordingly, Congress is currently con- crease mortgage interest rates by 1.5 that is the case in some places in Mis- sidering various proposals to help pre- percent to 2 percent. Assuming an in- sissippi—in the middle of the city, not vent foreclosures. crease of 1.5 percent, for a Colorado close to any water or any beach, 5 min- As part of any proposal, though, I family with an average sized loan— utes from the Super Dome, where the think we must be careful not to reward $184,362—their monthly mortgage pay- Hornets will be playing in one of their irresponsible behavior. Borrowers have ment would increase by $184. For those division championship games in a cou- a responsibility to understand the families who can still afford a home, it ple days, 5 minutes from the Super terms of their loan, and lenders have a will cost them anywhere from $23,000, Dome. responsibility to provide them with in rural areas, to well over $500,000, in They did not even know the levees clear, accurate information in order to many metropolitan suburbs, in extra were going to break. The Federal lev- help them understand the terms. Bor- interest over the life of a 30-year mort- ees broke and put their homes under- rowers have a responsibility to only gage. That money should be used for water. As shown in this picture, this is borrow what they can repay, but lend- bills, their children’s education, or where the water line is. These families ers have a responsibility to only lend other expenses. will have to pay $24,000 in taxes if we to those who can repay. The other side likes to claim that the cannot get this fixed. Should Congress choose to provide talk of increased interest rates is little So the bottom line is this: I am relief, it should not do so in a manner more than a scare tactic. They couldn’t happy to try to vote for this bill for that is simply a ‘‘bail out’’ for either be more wrong. These effects are not Michigan and California and places lenders or borrowers who acted irre- merely a hypothetical. We have seen that have families that are experi- sponsibly. We should also not set a the effects in a real life case example:

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00026 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.044 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2393 secondary homes. A bankruptcy judge The PRESIDING OFFICER (Mr. lating as well. The oath is very simple. can currently change the balance on a SALAZAR). The Senator from Kansas. It is, ‘‘First, do no harm.’’ That is the mortgage for a second home. As a re- Mr. BROWNBACK. Thank you very first premise that you operate on: sult of this, the cost of buying a second much, Mr. President. ‘‘First, do no harm.’’ home is higher—interest rates, down- I thank my colleague from Lou- I appreciate the amendment my col- payment, shorter repayment period— isiana. I appreciate the information she league from Illinois has up on the re- than a primary home. Title IV will in- has put forward. I will certainly be structuring of loans within bank- crease the cost of buying a primary looking at it and considering it. ruptcy, cramdown provisions on resi- home similar to the cost of buying a I am delighted we are on the housing dential homes people own. I understand second home. bill. Chairman Bernanke of the Federal the provision. As to my background in The bankruptcy provision would have Reserve, who was in front of the Joint the law practice I had, such as it was— a price far too high: Every quarter Economic Committee yesterday, I I am not bragging about a fabulous law point increase in mortgage interest thought did a nice job testifying. There practice; it was a pretty simple pedes- rates will prevent 1.1 million Ameri- are lot of interesting things going on trian law practice in Manhattan, KS— cans from being able to afford a home. as to what he was talking about taking we did bankruptcies and we had provi- This provision could price homes out of place. But he was saying the primary sions similar to these in other areas. reach for 9 million Americans. Those thing to watch in the economy right They were not existing on the loans. So advocating for this ill-advised provi- now is housing, the price of housing, it I think I have some familiarity with sion have estimated that it could help is holding or declining—it is declining the impact of this. I believe this one as many as 600,000 families, although in a number of key areas—but to watch violates the oath of: ‘‘First, do no more realistic estimates put this num- that marketplace because that is the harm.’’ ber closer to only 15,000. We can surely linchpin issue. He urged Congress to I know my colleague from Illinois find a better way to help a small num- act on housing. has all the right intentions, and I have ber of families than to deny home- So I am delighted we have this bill worked closely with him on a number ownership to 9 million families and in- up. I am delighted we have a bipartisan of issues. He is a very successful, able crease costs for millions more. Quite bill that I can look at and say a num- legislator. I believe this one violates simply, the cost for this provision, in ber of the provisions look pretty good. that oath of: ‘‘First, do no harm.’’ I say terms of what it will mean for families, We do not try to get too one-sided one that advisedly. A number of people is far too high. Congress shouldn’t be way or the other so it gets held up. Be- looking at this believe this provision, forcing families into bankruptcy for cause this is something we need to act if added to this bill and becoming the mortgage relief. on. I think it would be a good con- law of the United States, will drive up The bankruptcy amendment is bad fidence builder for the housing market mortgage interest rates on residential policy: The provision would reopen the homes 1 to 2 percent because it intro- bankruptcy code and would undo the across the country if we can get some- duces a degree of uncertainty. Markets 2005 requirement for prebankruptcy thing through here, through the House, and signed by the President. do not like uncertainty, so they factor counseling. Senator DURBIN’s proposal Having confidence is a key part of would grant new powers to bankruptcy in for uncertainty. It is believed this judges to change the terms of primary the marketplace. Confidence is a key would increase mortgage interest rates mortgages. Judges have little, if any, part of what they did on the Bear 1 to 2 percent. I think there could be expertise in the complexity in mort- Stearns bailout. He said a year ago some fluff in that number. It could be gage terms. The bankruptcy code is not they probably would not have done it. low, initially. Typically, as well, mar- the right area to address the subprime A year from now, they probably would kets will look at things, and at first issues and mortgage markets. The Sen- not do it. But right now things are too they will factor more risk in until they ate Banking Committee, the House Fi- shaky and it could cause things to have had some practice with this and nancial Services Committee, Federal crumble. The key piece to watch is seen how it hits in the numbers. So banking regulators, and industry are housing. maybe over a period of time it would all working. These are the appropriate So it is good we are working on this not have as much of an impact. But areas. legislation. It is good we are working earlier on it could have more of an im- The bankruptcy provision will dis- in a bipartisan fashion. I will be filing pact. Right at the point in time when courage other alternatives: It will unan amendment that I think can be very we are trying to stimulate the housing dermine efforts to put the two parties helpful in the pay-fors on this because market, you up your mortgage interest to the mortgage contract together. we need to pay for this. We are in a dif- rates on your primary residence 1 to 2 Borrowers must file for bankruptcy in ficult budgetary situation, so we have percent, possibly more, because early order for the proposed changes to work. a commission bill to look at all spend- on the market has not factored in: The HOPE NOW Alliance has helped ing within HUD and within Treasury What will this actually do? more than a million homeowners and to make recommendations for pro- The other thing it could well do on through workouts and repayment grams to be eliminated and then re- top of increasing interest rates is re- plans. In Colorado, the Foreclosure quiring a vote of Congress, up or down, duce the number of people who could Hotline received thousands of calls and whether to eliminate these programs borrow to buy a home. In fact, in 1978 has been able to help 80 percent who and then use those funds to pay for Congress specifically barred cramdown called. The hotlines are not perfect, some of the efforts that are taking on primary residences to keep interest and they cannot help all borrowers, but place here. rates low for primary homes and to en- they are helping many. The 1 million I think this is the sort of thing we sure that lenders provide credit to low- plus families helped didn’t have to pay ought to look at and the sort of thing income borrowers. As many people are a bankruptcy attorney; they didn’t we ought to do in paying for this be- in a low-income situation, a more frag- have to deal with the long-term prob- cause nobody wants the deficit to go up ile economic situation, if things go lems caused by filing for bankruptcy; further. I think that is everybody’s ob- south for them on a set of items, they the Federal Government didn’t have to jective. So we are going to be putting have no choice but to pursue bank- spend taxpayer dollars. That is a far forward that amendment and at the ap- ruptcy. So now then you introduce an- better approach. Drying up the credit propriate time bring that up. other set of risk factors on low-income markets and making loan terms less One of the key things we need to look individuals where it is going to make it favorable will make it far more dif- at and to do on this is something every harder for them to get a mortgage to ficult for homeowners to refinance physician in the United States does buy a home. their loans, thus creating new prob- when they become a physician. They We want people to be able to buy lems where none existed previously. take an oath. We take an oath of office. homes. We want particularly low-in- I know that many families are hurt- We swear to uphold and abide by the come individuals to be able to buy ing from foreclosures, but this amend- Constitution. A physician takes an homes. If we introduce another factor ment isn’t the right approach, and I oath. It is a very simple, very old oath. of uncertainty that is going to drive in- urge my colleagues to oppose it. I think it is a very good one for legis- terest rates up, it could well end up

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.006 S03APPT1 ccoleman on PRODPC75 with SENATE S2394 CONGRESSIONAL RECORD — SENATE April 3, 2008 working out that a low-income indi- arguments on the other side. I have to the Senator from Kansas that if we vidual will have their interest rates used cramdown provisions in other are talking about a limited group of driven up even more than the 1 to 2 bankruptcy settings, in business set- people who fit the description I have percent, as the factors for risk are tings. It does introduce a factor of risk. given here, how can you project this to built into it. It does allow restructuring to take have an impact on real estate mort- Again, I add, these are things that place. gages of 1 and 2 percent into the fu- are unknown. I have groups that are I think where we are right now, with ture? saying this is indeed the case. I don’t his statements and with our ability to The last time we dealt with this issue think we particularly know on this move a piece of legislation, the key in Congress was 30 years ago. The last provision. But you are introducing that thing we should do is to get the base time we had a housing crisis was 60 period of uncertainty with it. legislation moving forward, add things years ago. It isn’t as if we are meeting If I could say to my colleague: I know where we can get broad bipartisan sup- every 6 months to change the law on you have talked a long time and you port, not introduce more risk into the mortgages and bankruptcy. I ask the know this issue very well; I wish to fin- marketplace and possibly limit mort- Senator: How much more can I do to ish my statement and then I am happy gageholders. I am presuming my col- deal with his concern and the stated to take questions or comments, be- league from Illinois has facts he is put- concerns of the banking industry about cause I know there will be extensive re- ting forward which say this is not uncertainty? buttal taking place on it. going to take place. I think it is too Mr. BROWNBACK. Mr. President, re- I am talking about my experience. I much of a possibility that it will take sponding to my colleague through the am talking about what I believe will place, and that it will first do harm. Chair, a couple of things. I appreciate happen in this marketplace. I know it For those reasons, with all due respect that the Senator has narrowed this is intended to have a positive effect, to its supporters, I don’t think this is a down from when he started, because he but I think it violates this first ‘‘do no wise provision. Of course, I don’t think started with a much broader amend- harm’’ provision. this is the time for us to do it. I think ment; no question about it. I think I wish to add some other comments. we ought to spend a lot more time what the Senator has done is advisable What we are trying to do here is to studying and thinking about this. I be- and good. stimulate a housing market, not intro- lieve this is not the bill for this amend- The base of the concern remains then duce factors of risk into the housing ment, and I object to the Durbin the same, that now you have narrowed market. We have a good bipartisan pro- amendment. this in on a smaller class that you are posal that is being put on the floor by Mr. DURBIN. Mr. President, would going to raise the interest rates on be- Senators DODD and SHELBY, two senior the Senator yield for a question? cause of the uncertainty that is going Members of this body who have seen a Mr. BROWNBACK. I am happy to to be conducted there, or the likelihood lot and who have worked on a lot. I yield. of this having impacts on the mortgage think our wisest course at this point in Mr. DURBIN. I have two questions. I marketplace and reducing their ability time would be to work together on know the Senator from Massachusetts, to get these houses on the market, those provisions where we can get bi- Senator KENNEDY, wishes to speak on which could further depress the prices partisan support rather than intro- an unrelated issue. First, I wish to ask on those houses. I think this is first do ducing factors that are highly likely to the Senator from Kansas, through the no harm. I appreciate that the Senator slow down a bill. We need to encourage Chair, on the issue of uncertainty: Is has narrowed this and he has narrowed the market by showing an ability to the Senator from Kansas aware that on it substantially. work together. this amendment I am offering, I have I would also point out—and it was This amendment, I believe, will be narrowed the class of people eligible 1978 when we did the overall—we took highly controversial and will continue for this benefit, which would be modi- up bankruptcy reform. We did that to have the effect of slowing this bill fication of mortgage in Bankruptcy within the last 5 or 6 years where we down. The amendment would actually Court, to those who first qualify to go had broad bankruptcy reform, and this create an ability for unsecured credi- into Bankruptcy Court which, in many sort of provision could have come for- tors as well of an individual, to reduce instances, requires credit counseling; ward in that bankruptcy reform at that their exposure, at the expense of a secondly, that they must be talking point in time. I voted against that mortgageholder in consumer bank- about property that is their primary bankruptcy reform. I didn’t think that ruptcy proceedings. I think this is an residence, not a piece of real estate overall was the way to go and that unintended consequence, but it is a they happen to own; third, that it be again was based on the experience I consequence of it. This would be bad subject to a mortgage which is a had in dealing with bankruptcy. policy. This was considered in 1978. We subprime mortgage, not a prime rate I appreciate the Senator’s efforts. I want these mortgages to have as low a mortgage; and fourth, that it has to be think the basic issue he is introducing rate as we possibly can. a mortgage that exists as of the date of here continues to be the same even if it Potentially 4.5 million Americans the enactment of this legislation and is within a narrow marketplace. could be priced out of the housing mar- none in the future? Also, that if there Mr. DURBIN. Will the Senator yield ket for every 1 percent increase in is to be a modification of the mortgage, for one more question? mortgages. That is according to home it can be to a principal level no lower Mr. BROWNBACK. Yes. builders. They are saying that. So if than the current fair market value; Mr. DURBIN. I wish to ask the Sen- you have a 2-percent increase, you are that the interest rate imposed by the ator from the great farming State of looking at the possibility of keeping 9 court be no lower than the prime rate Kansas if, in his private practice expe- million Americans priced out of the plus a premium for risk; that the term rience with bankruptcy, he ever dealt housing market at a time when we of the modification of the mortgage with a chapter 12 bankruptcy involving want them in the housing market. can be no more than 30 years, and that farm real estate and whether he be- That is not going in the right direc- if within 5 years of bankruptcy the lieves that the change in the bank- tion. property is sold at a price higher than ruptcy law in the 1980s, which allowed Having said all of that, I think there the fair market value at the time of cramdown or modification of the mort- are people who could look at this an- bankruptcy, all of the proceeds will go gages on farm homes, was unreason- other way. Indeed, I asked Chairman to the lender—not to the owner, but to able; whether he believes that the Bernanke about this particular provi- the lender? banking institutions which fought that sion, because he said we ought to do I say to the Senator from Kansas chapter 12 bankruptcy saying it would work on the housing market. I asked that every time the banking and finan- raise interest rates 1 or 2 percent on him about this particular provision and cial institutions came to me and said: farmers—and it didn’t turn out to be he did not take a stance on it. He just It is too uncertain, too many people the case—whether we ought to believe said he didn’t take a stance on prior could benefit from this, every time those financial institutions again bankruptcy reform. He said there are they did that I would narrow this more today when we talk about using the arguments on both sides. So I recognize and more and more. I would further say same provision—or a similar provision,

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.054 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2395 I should say—as chapter 12 to deal with that we can schedule it for a vote. I of billions of dollars flow out of the the current housing crisis? Did the have asked repeatedly for that. I don’t Treasury, and when you stand up and Senator from Kansas feel it was unfair know what more I can do other than be say: Can we not this afternoon help to allow cramdowns or modifications of here and be available for any debate stop some of these foreclosures of mortgages in farm bankruptcies in his they want to take place. homes of working-class people, they own State under chapter 12? This is a critically important bill. say: No go, no way, we are not going to Mr. BROWNBACK. Mr. President, if I There are several important amend- let you take action, but we are fine could respond to my colleague through ments, and I think mine might be one with the hundreds of billions of dollars the Chair, again in my limited back- of them. But if Members won’t come to that have flowed out of the Treasury in ground—I have actually taught agri- the floor and debate it, apparently they the last several days. What possible cultural law and written a book on it. either don’t have an interest in the justification is there for that? It is not very good. I doubt my col- amendment or the bill. I hope they will Finally, when I asked the Federal Re- league has read it. I would recommend seriously consider coming to the floor serve—I said: Well, we have the imme- this chapter of it for him if he wishes in the very near future. diate crisis, but we are also going to The PRESIDING OFFICER. The ma- to read it. have the crisis in the States. States In the provisions that were done at jority leader is recognized. Mr. REID. Mr. President, we have an have two options: they can either raise that time before either of us were in their taxes or cut services. What are the Senate, what you were doing was interesting situation. We have a substitute amendment that has been laid they going to cut? Medicaid is first. taking business bankruptcy reorga- They are the poorest of the poor. When nizations and allowing for farm appli- down. We have worked hard to get it here. We started on the bill at 9:30 this we ask the leader of the Federal Re- cation because it was a different busi- serve, the architect—because he is the ness type of setting that was taking morning. It is now 2 o’clock. We have one amendment that has been laid man in charge—whether he believes we place. It did introduce risks that are ought to reach out and help those fami- even still factored in today, because down. I even tried to arrange a vote on a resolution honoring the 4,000 Ameri- lies, he said he did not have a position this is a provision that is allowed with- on that and that is a position that will in it. cans who have been killed in Iraq. We can’t even get that up for a vote. I have to be taken up by the Congress of Now, as I mentioned earlier, over a the United States. Why doesn’t he tell period of time as markets get adjusted don’t know what is going on. We are going to work through this. I asked for that to the Republican leaders? Why? to these, they say: Well, OK, this factor Here you are trying to take some kind is only going to happen in this series of a consent agreement that any amendments that would be offered would be of a position, and this is the old Chi- cases. Or they looked at lower end in- cago movie that I remember so well come clients and they said this is a related to the housing bill. No, we can’t do that yet. I realize the majority where they talk about ‘‘Give us the old more likely situation where we are razzle-dazzle. I will razzle-dazzle me, going to see this taking place. There- we have is very slim, but we do have the majority and that gives us certain too.’’ We are finding out that the fore, we are not going to loan to this rights. I am going to exercise those American homeowners, who are hard guy, or it only goes to a bank that is rights. pressed, are being given the old razzle- willing to get into a more aggressive I would like to have a housing bill. I dazzle. loan position and is desirous to do it. think it is important to the country. I I applaud the determination and res- So it does have those impacts. hope the American people see what we But what you were doing with that olution the leader has shown on this have put up with now during the last 15 chapter reorganization during the farm issue. Real people are hurting. We are months. Every step of the way is a here this afternoon waiting to take crisis was taking a business reorganiza- struggle. We are not able to legislate. tion and allowing for the differences in some action, ready to move ahead on a We are constantly trying to figure a proposal that has broad support, and agriculture which are substantial. Now way procedurally to get past the mi- you are getting into the basic housing we find out the emptiness and vacuous- nority, which is still upset about the ness of the Republican response. market with this. This isn’t a business November 2006 elections. That is what Mr. REID. Will the Senator yield for reorganization; this is a housing mar- this is all about. We are in the major- a question? ket issue, and you are introducing the ity, as slim as it might be, and they very factors I talk about—in a limited have to get over this. Let us work to- Mr. KENNEDY. I will yield. fashion; I appreciate that greatly. I gether. We want to work. We want to Mr. REID. Does the Senator from think it is less harmful potentially pass things. My friend has offered an Massachusetts realize that today, this than the original design of the Durbin amendment. day in April, April 3, 2008, almost 8,000 amendment. I appreciate your heart on Let’s vote on it. people will be pushed out of their it. It is going to have an introduction The PRESIDING OFFICER. The Sen- homes because their foreclosure has of factors of uncertainty and will drive ator from Massachusetts is recognized. been completed? They are gone—8,000 interest rates up, and it will drive lend- Mr. KENNEDY. Mr. President, I see today and 8,000 tomorrow. Now, fore- ers out in this situation. That is what our leader leaving the floor. He was ex- closures usually don’t happen on week- will happen. I don’t think we should go pressing his frustration about the lack ends; it is during the week. So this that route. of action. I join him in underlining week, 5 times 8,000 is 40,000 people, ap- The PRESIDING OFFICER. The Sen- what he has stated here. Yesterday, a proximately, who will be out of their ator from Illinois is recognized. number of us, including the chairman homes while we have been here this Mr. DURBIN. Mr. President, before I of the Joint Economic Committee, lis- week. If we don’t get something done yield the floor, as I see Senator KEN- tened to Mr. Bernanke. Mr. Bernanke today, we will start tomorrow, and NEDY is here and wishes to speak, I was before the Joint Economic Com- there will be another 8,000. Is the Sen- wish to make a point for the RECORD. mittee talking about how they had let ator aware of that? We introduced this amendment 4 go more than $200 billion over the pe- hours ago. I have come to the floor, riod of these last weeks—$200 billion in Mr. KENNEDY. Well, I have been and but for a brief period off the floor, secret transactions, without any guar- aware of it because we have listened to to entertain any debate on this amend- antees to the American taxpayers. And our good leaders, including yourself, ment. In 4 hours there have been four here we have a proposal that the Sen- Senator DURBIN, Senator SCHUMER, and Republican Senators who have come to ator from Illinois, Mr. DURBIN, and Senator DODD, talking about between the floor, one each hour, to oppose this Senator DODD and others are involved 8,000 and 12,000. amendment. At this rate, with 49 Re- with in the Banking Committee, trying I had a chance to be out in Youngs- publican Senators, in 45 hours we to do something about the fact that town, OH, recently. Five-thousand should be able to close this amendment homes are being foreclosed while we homes are empty there, and it is in- and vote on it. I say that facetiously. are here on the floor of the Senate. creasing every single day just in that I hope those who have an interest in What is it about the other side that one community. That is being rep- the amendment will come forward and they are quite prepared to see hundreds licated in my State. People are saying:

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00029 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.055 S03APPT1 ccoleman on PRODPC75 with SENATE S2396 CONGRESSIONAL RECORD — SENATE April 3, 2008 Where is the action? Where is the lead- when we could bring the membership Mr. KENNEDY. Mr. President, I ership? When are you going to do some- together to honor those names? What thank the majority leader for his lead- thing on this issue? We are interested is the possible problem? Where is the ership in making this all possible. in getting something done. Republican leader? Can he explain to Mr. President, the war in Iraq has Mr. Bernanke was asked, after he be- the American people why we cannot deeply divided our country. But what- came Chairman of the Federal Reserve: have that? Usually, if they are going to ever our views are about the war, we How are things going in terms of our object, at least they indicate why. Why know our soldiers are serving nobly economy? ‘‘Fine,’’ he said. He never ex- don’t they take the floor? Why can’t under extraordinarily difficult cir- ercised the bully pulpit to stop the ex- they give an explanation to the Amer- cumstances and that far too many are plosiveness that is taking place in the ican people? Look at these pages. On making the ultimate sacrifice for our housing market and put so many each one of these pages is 50 names. country. The war continues to impose homeowners at risk. Look at these pages. There are 50 an enormous human toll on our sol- This is as bad as Katrina and as bad names on each and every one of them diers, their families, and their loved as the Iraq war. We have a similar re- with their home addresses. We ought to ones. Our men and women in uniform sponse from the administration, and be able to take a few moments for have served with great courage and that is a failure of leadership and a those who want to speak to be able to honor for 5 years, and last week, during failure of action. The American people express themselves and pass this reso- the recess of Congress, we reached a sad milestone—the loss of 4,000 service ought to understand that. lution and include it in the RECORD at Mr. REID. Will the Senator yield for this time, where we have paused as a men and women in support of Oper- another question? Nation out of respect for the loss of ation Iraqi Freedom. An additional Mr. KENNEDY. Yes. some 4,000 Americans. 30,000 service men and women have Mr. REID. Did the Senator hear me I thank the majority leader for all he been wounded. We have also lost nearly when I said we have asked for an agree- has done. Since I have the floor, I will 500 service men and women in support ment that the only amendments that just take a few moments here, obvi- of Operation Enduring Freedom in Af- will be offered on this bill are relating ously, before the Senator from Illinois, ghanistan. This loss of life is deeply distressing, to housing? Is he aware that they said whose amendment is pending. I will and the impact of the wars in Iraq and no deal? And is the Senator aware that withhold at any time he thinks he can Afghanistan continues to be dev- Senator DURBIN had offered an amend- get action. ment at approximately 10 o’clock this Mr. President, this is the resolution astating to families and communities morning, and there have only been four we will be offering. It honors the sac- around our Nation. We honor their service, and we pray that God’s grace speakers, with not long speeches, and rifice of the members of the Armed and mercy may ease the anguish of that we are not voting because of the Forces who were killed in Iraq and Af- those they have left behind. speeches, because they are gone? Is the ghanistan: Senator aware that I said: Okay, how It is fitting, therefore, that today we Whereas 4,009 members of the United honor and remember the courageous about voting on a resolution offered by States Armed Forces have lost their lives in men and women who gave the last full the Senator from Massachusetts that support of Operation Iraqi Freedom and 487 honors the lives of 4,000 Americans who members of the United States Armed Forces measure of their devotion to our coun- have been killed in Iraq? Is he aware have lost their lives in support of Operation try in these wars. From Lexington and that we could not get a vote on that? Enduring Freedom; Concord and Gettysburg, to Normandy Mr. KENNEDY. Well, it is difficult to Whereas we honor the ultimate sacrifice and Iwo Jima, to Korea and Vietnam, that these men and women made for our to Iraq and Afghanistan today, these believe, Mr. President. We had our mo- country; ment just last week in which those of heroes are part of a long line of coura- Whereas the sacrifices of the fallen are in geous patriots who stood their ground us who were there in the Rotunda lis- keeping with the highest traditions of the tened to our leader, who spoke so well, United States Army, Navy, Marine Corps, with uncommon valor and sacrificed for all of us. so movingly, as well as the other lead- Air Force, and Coast Guard; Since the terrorist attack by al- ers, both Republicans and Democrats, Whereas, as their families and loved ones Qaida on September 11, millions of to honor the anniversary of the war. have sacrificed as well, we honor them in commemorating the memory of those that Americans have proudly and volun- Now, in the last few days, we have an- lost their lives; tarily defended our country and our other moment of special significance, Whereas the following 4,009 members— Constitution by serving in our Armed and that is the 4,000 soldiers—just with It starts off listing the fallen mem- Forces, our Reserves, and our National regard to Iraq—who have been lost and bers of the Armed Forces. Guard. Their devotion to duty is be- 500 more in terms of Afghanistan. I was Mr. REID. Mr. President, will my yond question, and their valor is prov- very grateful to the Senator and to our friend yield? en. They volunteered to serve and help other colleagues—and I am sure on the Mr. KENNEDY. Yes. us meet the immense challenge we other side as well—who thought it Mr. REID. Mr. President, progress in face. They knew the vast danger to life would be useful to memorialize in the this body is sometimes very hard to and limb and were well aware that at CONGRESSIONAL RECORD the names of come by, but progress has been made. I any moment they might make the ulti- these extraordinary men and women, appreciate Senator KENNEDY coming to mate sacrifice. And as of today, 4,496 listing their names, hometowns, their the floor. As those of us who have such have made that sacrifice in Iraq and ranks, and their service, and that we affection and love for him know, once Afghanistan. They were all patriots. could include that in the RECORD at in a while he raises his voice. As a re- They put themselves in harm’s way to this time. We are trying to do it at an sult of raising his voice, I ask unani- protect us all. And because of their appropriate time because we have been mous consent that at 2:45 p.m. today, dedication and sacrifice, we continue reminded about the loss of the 4,000— the Senate proceed to vote on the adop- to enjoy the freedoms we cherish in our not as an add-on to some other kind of tion of S. Res. 501, honoring the sac- democracy. action here but to give respect and dig- rifice of the members of the U.S. Each of these men and women has a nity and honor to these individuals and Armed Forces who have been killed in poignant story to tell. Just as poignant do so by having a rollcall vote to send Iraq and Afghanistan; that upon adop- are the fond memories of their loved a special message to their families and tion of the resolution, the preamble be ones here at home. I know something friends in their communities that we agreed to, with no intervening action of that feeling. I was 12 years old when honor their service. Why is it that we of our debate; and that no amendments my mother became a Gold Star moth- cannot get an agreement on that? be in order to the resolution or the pre- er. It still seems like only yesterday The good Senator—I will not insult amble. when that knock on our door came in his intelligence. I read the resolution, The PRESIDING OFFICER. Is there 1944, and we learned that my oldest and it may be 8 lines long. It is hon- objection? Without objection, it is so brother, Joe, had been lost in World oring these extraordinary men and ordered. War II. women and in tribute to their valor. Mr. REID. Mr. President, I appreciate I know there is no easy way to mend Why is it that we cannot have a time the Senator yielding. these broken hearts, no way to lift the

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There this resolution and thank him for his loved one, but I hope the families may were six or eight personal stories of leadership on this important issue. find some comfort in the words of their lives. I took the time to read it Mr. President, I suggest the absence Abraham Lincoln in that famous letter carefully to try to absorb what was of a quorum. he sent to a bereaved mother during happening to these men and women The PRESIDING OFFICER. The the Civil War. He wrote: and their families. clerk will call the roll. Dear Madam, I feel how weak and fruitless I think I can speak for the Senator The assistant legislative clerk pro- must be any words of mine which should at- from Massachusetts. We have cast be- ceeded to call the roll. tempt to beguile you from the grief of a loss tween us thousands of votes on the Mr. DURBIN. Mr. President, I ask so overwhelming. But I cannot refrain from floor of the Senate, myself in the tendering to you the consolation that may unanimous consent that the order for be found in the thanks of the Republic they House of Representatives as well. I can- the quorum call be rescinded. died to save. I pray that our Heavenly Father not think of another vote more pro- The PRESIDING OFFICER. Without may assuage the anguish of your bereave- found and more important than the objection, it is so ordered. ment, and leave you only the cherished vote to authorize the invasion of Iraq Mr. DURBIN. Mr. President, earlier, memory of the loved and the lost, and the in October 2002. Senator KENNEDY and I when I was speaking to Senator KEN- solemn pride that must be yours to have laid joined 21 of our colleagues in voting NEDY’s resolution, I made reference to so costly a sacrifice upon the altar of free- against that authorization to go to dom. a New York Times article. It is an arti- war. At the time, it was not the most cle from Tuesday, March 25. It tells in The consequences of the decisions we popular vote, but it turned out to be make in Congress profoundly affect our a very graphic way the correspondence the right vote. Not to take anything of fallen soldiers and the cir- military, their families, and the com- away from these brave men and women munities they have left. We have an ob- cumstances they faced in Iraq before who have given so much for our coun- they died. As I mentioned before, I read ligation to our soldiers to make sen- try, but this war may be the most fatal sible decisions that will not place them this article in its entirety and was foreign policy mistake of the modern moved by it. needlessly in harm’s way. era, and we continue to pay for it every It is fitting that we now pause to rec- I ask unanimous consent to have day in American lives and blood and ognize, remember, and honor those who printed in the RECORD this New York treasure and in our reputation and have lost their lives far from home for Times article so my colleagues and safety in the world. our grateful Nation in Iraq and Afghan- others have an opportunity to read it The fact that the Senator from Mas- istan. as well. sachusetts would take some time—even The PRESIDING OFFICER. The Sen- There being no objection, the mate- ator from Illinois. a brief period of time—to remind us is rial was ordered to be printed in the Mr. DURBIN. Mr. President, I thank something that should be done and I RECORD, as follows: am glad is being done. I know this will my colleague from Massachusetts. I [From the New York Times, Mar. 25, 2008] have been a Senator for a number of receive an overwhelmingly unanimous vote of support, as it should. We all SIX OF THE FALLEN, IN WORDS THEY SENT years and have visited Iraq and Af- HOME ghanistan on three separate occasions. want to be on record. But I hope that also, the next time this matter comes FROM LATEST 1,000, WORDS BY E-MAIL, AND IN I try my best to meet with as many of JOURNALS TO THOSE AT HOME up for a debate about the policy of this our soldiers as possible—but, of course, [By Lizette Alvarez and Andrew W. Lehren] focus on those from Illinois—to sit and war in Iraq, some of our colleagues who By the time Specialist Jerry Ryen King de- eat lunch with them and talk about the want to just continue this indefinitely for years and years will reflect on how cided to write about his experiences in Iraq, Cubs, the White Sox, the Bears, the the teenage paratrooper had more to share Bulls, the news back home. The thing many more American lives will be sac- than most other soldiers. that haunts me—and I thank the Sen- rificed if that happens. That is the sad In two operations to clear the outskirts of ator from Massachusetts for reminding reality of where we are. the village of Turki in the deadly Diyala me—the thing that haunts me are the The Senator could not, because his Province, Specialist King and the rest of the frequent conversations where they say: stack of papers would be dramatically Fifth Squadron faced days of firefights, gre- Does anybody know we are still here? larger, include the names of all those nade attacks and land mines. Well-trained Does anybody back home know what who have been seriously wounded or in- insurgents had burrowed deep into muddy canals, a throwback to the trenches of World we are going through? It really is jured in this war. They deserve our thanks and our recognition as well. War I. As the fighting wore on, B–1 bombers heartbreaking to think that these men and F–16s were called in to drop a series of and women are risking their lives Many of them will carry scars for a powerful bombs. every day while we go about our safe, lifetime. Some are very visible scars Once the area was clear of insurgents, the secure, normal, daily routine and how and some not visible. They are strug- squadron, part of the 82nd Airborne Division, little focus we put on this war and the gling with lives, facing blindness, burns uncovered hidden caches of weapons. men and women who are fighting it for and amputations, traumatic brain inju- Two months later, Specialist King, a hand- us and particularly those who have ries, and post-traumatic stress dis- some former honors student and double-sport given their lives. order. I visit these veterans hospitals athlete from Georgia, sat down at this com- and see those veterans of past wars who puter. In informal but powerful prose, he We have lost almost 150 soldiers in Il- began a journal. linois. I took an inspiration from the are still paying the price today, alive— Senator from Massachusetts and said I maybe barely alive—but paying the After 232 long, desolate, morose, but somewhat days of tranquility into deployment, was going to send a note to every fam- price for their service. I’ve decided that I should start writing some ily in Illinois who loses a soldier. I I hope beyond the resolutions we will of the things I experienced here in Iraq. I thought after a year or two that task have the resolve to make sure we keep have to say that the events that I have en- would have been completed. After 5 our word to these veterans, that when countered here have changed my outlook on years, it is not. Sadly, in our State and they come home they will receive the life . . . every other State we are still losing best medical care, they will receive our The most recent mission started out as a lives. The fact that the Senator from help to continue their lives, to go to 24–36 hour air-assault sniper mission in a Massachusetts would take the time to school or to own a home. When I read known al-Qaida stronghold just north of about the percentages—half the home- Baghdad. We landed a few hours before day- come to the floor today as a solemn re- break and as soon as I got off the helicopter minder of what this means to us, less people in America are veterans— my night vision broke, I was surrounded by should mean to us, and what it means when I read that the unemployment the sound of artillery rounds, people scream- to these families is something I deeply rate among returning veterans is so ing in Arabic, automatic weapons, and the appreciate. high, it is a grim reminder that those terrain didn’t look anything like what we

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00031 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.058 S03APPT1 ccoleman on PRODPC75 with SENATE S2398 CONGRESSIONAL RECORD — SENATE April 3, 2008 were briefed. I knew it was going to be a bad In excerpts published here from journals, Tuesday, Oct. 3, 2006 day and a half. blogs and e-mail, six soldiers who died in the Mood: gloomy Jerry Ryen King, Journal Entry, most recent group of 1,000 mostly skim the The life of an infantryman is never safe March 7, 2007 alarming particulars of combat, a kindness . . . how do I know, well I live it every day. shown their relatives and close friends. In- I lost a good friend of mine just two days A month later, Special King was sitting instead, they plunge readily into the mundane, ago to an enemy sniper. The worst feeling in side his combat outpost, an abandoned but no less important rhythms of home. the world is having lost one of your own and school in Sadah, when suicide bombers ex- They fire off comments about holiday cele- not being able to fight back. The more I go ploded two dump trucks just outside the brations, impending weddings, credit card on patrol, the more alert I tend to be, but re- building. The school partly collapsed, killing bills, school antics and the creeping anxiety gardless of the situation here in Iraq is that Specialist King on April 23, 2007, along with of family members who are coping with one we are never safe. No matter the counter- eight other soldiers, and making the blast deployment too many. measures we take to prevent any attacks. one of the most lethal for Americans fight- At other moments, the service members They seem to seep through the cracks. Every ing in Iraq. describe the humor of daily life down range, day a soldier is lost or wounded by enemy at- In that instant, Specialist King became as they call it. Hurriedly, with little time to tacks. I for one would like to make it home one of 4,000 service members and Defense De- worry about spelling or grammar, they riff to my family one day. Pray for us and keep partment civilians to die in the Iraq war—a on the chaos around them and reveal mous in your thoughts . . . for an infantry- milestone that was reached late Sunday, five ments of fear. As casualties climb and the vi- man’s life is never safe. years since the war began in March 2003. The olence intensifies, so does their urge to share Juan Campos, Myspace Blog last four members of that group, like the their grief and foreboding. majority of the most recent 1,000 to die, were A LAST GOODBYE Sergeant Campos, a member of the First killed by an improvised explosive device, Hey beautiful well we were on blackout Battalion, 26th Infantry, Charlie Company known as a I.E.D. They died at 10 p.m. Sun- again, we lost yet some more soldiers. I cant out of Germany, was one of thousands of in- day on a patrol in Bagdad, military officials wait to get out of this place and return to fantrymen assigned to stabilize Baghdad and said; their names have not yet been released. you where i belong. I dont know how much the surrounding areas last year during the The next day we cleared an area that made more of this place i can take. i try to be hard troop buildup. Troops were sent deep into in- me feel as if I were in Vietnam. Honestly, it and brave for my guys but i dont know how surgent neighborhoods, where they lived in was one of the scariest times of my life. At long i can keep that up you know. its like small outposts, patrolled on foot, cleared one point I was in water up to my waist and everytime we go out, any little bump or houses, mingled with Iraqis and rebuilt the heard an AK fire in my direction. But all in sounds freaks me out. maybe im jus stressin infrastructure. The extra 30,000 service members—160,000 all the day was going pretty good, no one is all. hopefully ill get over it . . . was hurt, I got to shoot a few rounds, toss a you know, you never think that anything in all—were deployed to Iraq to help quell grenade, and we were walking to where the is or can happen to you, at first you feel in- the runaway violence that threatened large- helicopter was supposed to pick us up. vincible, but then little by little things start scale civil war. Most soldiers spent 15 Jerry Ryen King, Journal Entry, to wear on you. . . months in Iraq, a length of time that mili- March 7, 2007 well im sure well be able to save a couple tary commanders have said is unsustainable. of bucks if you stay with your mom . . . and Many had fought in the war at least once. A The year 2007 would prove to be especially at the same time you can help her with some few had been in Iraq multiple times. hard on American service members; more of of the bills for the time being. it doesnt My only goals are to make it out of this them died last year than in any other since bother me. as long as you guys are content is place alive and return you guys and make the war began. Many of those deaths came in all that matters. I love and miss you guys you as happy as I can. the midst of the 30,000-troop buildup known like crazy. I know i miss both of you too. at Juan Campos, E-Mail Message to his Wife, as ‘‘the surge,’’ the linchpin of President times id like to even just spend 1 minute out Dec. 15, 2006 Bush’s strategy to tamp down widespread vi- of this nightmare just to hold and kiss you olence between Islamic Sunnis and Shiites, guys to make it seem a little bit easier. im But to Sergeant Campos and the rest of much of it in Baghdad. In April, May and sure he will like whatever you get him for Charlie Company in Adhamiya, a north June alone, 331 American service members xmas, and i know that as he gets older he’ll Baghdad stronghold for Sunni insurgents, died, making it the war’s deadliest three- understand how things work. well things the buildup seemed oddly invisible. The men month period. here always seem to be . . . uhm whats the patrolled almost every day, sometimes 16 to But by fall, the strategy, bolstered by new word . . . interesting i guess you can say. 18 hours a day for months, often in 120-degree alliances with Sunni tribal chiefs and a deci- you never know whats gonna happen and weather. Exhaustion was too kind a word for sion by the Shiite cleric Moktada al-Sadr to thats the worst part. do me a favor though, their fatigue. order his militia to stop fighting, appeared when you go to my sisters or moms or wher- More than 150 soldiers lived in a two-story to be paying off as the country entered a pe- ever you see my family let them know that house with portable toilets, no air-condi- riod of relative calm. Military casualties and i love them very much..ok? well i better get tioning and temperamental showers. Sleep Iraqi civilian deaths fell, and the October- going, i have a lot of stuff to do. but hope- came only a few hours at a time. The fight- December period produced the fewest casual- fully ill get to hear from you pretty soon. ing was vicious. Adhamiya was such a mag- ties of any three months of the war. The past *muah* and hugs. tell mijo im proud of him net for sectarian bloodletting that the mili- month, though, has seen an uptick in too! tary built a wall around it to contain the vi- killings and explosions, particularly suicide love always, olence. bombings. The violence has traveled north to your other half ‘‘They walled us in and left us there,’’ Staff Mosul, where the group calling itself Al Juan Campos, E-mail Message to His Wife, Sgt. Robin Johnson, 28, said of the 110 men in Qaeda in Mesopotamia remains strong. Dec. 12, 2006 Charlie Company. ‘‘We were a family. I Everything changed in a matter of 15 min- would die for these guys before I die for my utes . . . About the time I was opening my When Staff Sgt. Juan Campos, 27, flew own blood brother.’’ MRE (meal ready to eat) I heard an explo- from Baghdad to Texas for two weeks last On patrol, sniper fire rang out so routinely sion. Everyone started running towards the year, there was more on his mind than rest that soldiers in Sergeant Campos’s platoon sound of the explosion. Apparently a suicide and relaxation. He visited his father’s grave, seldom stood still for more than four sec- bomber had blown himself up killing four which he had never seen. He spent time with onds. They scoured rooftops for Iraqi chil- soldiers from my squadron and injuring an- his grandparents and touched base with the dren who lobbed grenades at American sol- other. Our 36 hour mission turned into an- rest of his rambling, extended family. diers for a handful of cash. Roadside bombs other air-assault into a totally different The day he was scheduled to return to war, burst from inside drainage pipes, impossible city, the clearing of it, and 5 more days. We Sergeant Campos and his wife went out danc- to detect from the street. The bombs grew did find over 100 RPG’s, IED making mate- ing and drinking all evening with friends. larger by the month. rials, insurgents implacing IED’s, artillery Calm and reserved by nature, Sergeant Last year, these powerful improvised ex- rounds, a sniper rifle, and sort of like a ter- Campos could out-salsa and out-hip-hop plosive devices were responsible for a major- rorist training book and cd’s. most anyone on the dance floor. At the air- ity of American fatalities, a new milestone. Jerry Ryen King, Journal Entry, port, his wife, Jamie Campos, who had grown The bombs also killed multiple soldiers more March 7, 2007. used to the upheaval of deployment, sur- often than in the past, a testament to their prised herself. potency. Unlike the soldiers of some previous wars, ‘‘I cried and I have never ever cried be- ‘‘It was the most horrible thing you could who were only occasionally able to send let- fore,’’ said Mrs. Campos, 26, who has a 9- possibly imagine,’’ Sergeant Johnson said. ters back home to loved ones, many of those year-old son, Andre. ‘‘It was just really real- ‘‘As soon as you left the gate, you could die who died left behind an extraordinary elec- ly weird. He knew, and I kind of knew. It felt at any second. If you went out for a day and tronic testimony describing in detail the different.’’ you weren’t attacked, it was confusing.’’ labor, the fears and the banality of serving We both felt that it was the last goodbye,’’ Charlie Company soldiers found a steady in Iraq. she said. stream of Iraqis killed by insurgents for

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00032 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.014 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2399 money or revenge. Some had their faces my clothes were being worn by other people. I try not to cry. I have never cried this wiped clean by acid. Others were missing I couldn’t figure it out so I knew right off much my entire life. Two great men got their heads or limbs. the bat to go to Hill. I saw him walking down taken from us way too soon. I wonder why it ‘‘IT COULD HAVE BEEN ME’’ the hall wearing five of my winter jackets. was them and not me. I sit here right now To tell the story of iraq is a hard one. He sold half my wardrobe right off his back wondering why did they go to the gates of Ryan Wood, Myspace Blog to people in our company and my mattress heaven and not me. I try every night to was in someone else’s room. So then I had go count my blessing that I made it another Sgt. Ryan M. Wood, 22, a gifted artist, pro- to around and buy all my stuff back. (Now I day but why are we in this hell over here? lific writer and a sly romantic from Okla- think he won). Why? I can’t stop asking why? homa, was also one of the bluntest soldiers Daniel J. Agami, Charlie Company. Eulogy Ryan Hill, Myspace Blog, inside Charlie Company. Sent via e-mail Message to his Mother, Nov. 1, 2006 Jan. 29, 2007 it is fighting extreme boredom with the Private Hill was riding in a Humvee on lingering thought in the forefront of your Jan. 20, 2007, when an I.E.D. buried in the mind that any minute on this patrol could be To keep their spirits up, combat soldiers middle of the road detonated under his seat, my last endeavour, only highlighted by learned to appreciate the incongruities of killing him instantly. times of such extreme terror and an adrena- war in Iraq. Jokes scrawled inside a Port-o- Sergeant Campos was riding in a Humvee line rush that no drug can touch. what [ex- Potty quickly made the rounds. Situational on May 14, 2007, two weeks after returning pletive] circumstances thinking ‘‘that humor, from goofy to macabre, proved plen- from Texas, when it hit an I.E.D. The bomb should’ve been me’’ or ‘‘it could’ve been me’’. tiful. lifted the Humvee five feet off the ground wondering if that pile of trash will suddenly A really girly guy who was a cheerleader in and engulfed it in flames. ‘‘That’s when we explode killing you or worse one of your be- high school, got knocked down and nearly just left hope at the door,’’ Sergeant John- loved comrads . . . only backed by the past hurt by the wind of the helicopter. Listening son said. Severely burned over 80 percent of thoughts and experiences of really losing to Dickson recite what was in every single his body, Sergeant Campos lived two weeks. friends of yours and not feeling completely MRE was pretty funny. A cow charged and He died June 1. Another soldier, Pfc. Nich- hopeless that it was all for nothing because nearly trampled one of my friends when we olas S. Hartge, 20, of Indiana, died in the all in all, you know the final outcome of this were raiding a compound. And lastly, I same attack. war. it is walking on that thin line between thought that it was pretty comical that I Private Agami was driving a Bradley fight- sanity and insanity. that feeling of total shot at a guy a long ways out but missed and ing vehicle on June 21, 2007, when it hit an abandonment by a government and a coun- later after taking his house and using it as a I.E.D. The explosion flipped the 30-ton vehi- try you used to love because politics are patrol base he offered me Chai and rice. cle, which also carried Sergeant Wood. Both fighting this war . . . and its a losing battle Jerry Ryen King, Diyala Province men were killed, along with three other sol- . . . and we’re the ones ultimently paying diers and an Iraqi interpreter. the price. Even a trip to the dentist, with its fringe ‘‘Obviously, it came to a point, you didn’t Ryan Wood, Myspace Blog, Adhamiya benefits, is cause for amusement in a war care anymore if it got better,’’ said Staff zone. Sgt. Jeremy S. Rausch, 31, one of Sergeant For the soldiers in Iraq, reconciling Campos’s best friends in Charlie Company. Last Sat. I had two of my wisdom teeth ‘‘You didn’t care about the people because Adhamiya with America was not always pulled. After taking double the prescribe easy. One place was buried in garbage and they didn’t care about themselves. We had percocot and morphine pills that the doctor already lost enough people that we just gore and hopelessness. The other seemed gave me for the pain I decided to catch a unmoored from the war, fixated on the minu- thought, you know, ‘why?’’’ flight back to my FOB (forward operation During their time in Adhamiya, the sol- tia of daily life and the hiccups of the fa- base). It was the coolest Blackhawk ride I’ve mous. The media was content to indulge. diers of Charlie Company caught more than had, I was absolutely ripped and I talked the two dozen high-value targets, found nearly 50 What the Hell America?? pilots into leaving the doors open. We had ‘‘What the hell happened?’’ any intelligent weapons caches, detained innumerable insur- four more guys die a couple days ago. They gents and won countless combat awards. American might ask themselves throughout hit an IED, it killed everyone in the humvee. their day. While the ignorant, dragging They lost 14 men. Their mission was hailed a It’s starting to get a little scary. We made it success. themselves to thier closed off cubicle, con- our first six months with just two deaths and template the simple things in life such as that was plenty. But now just in the past JUST IN CASE ‘‘fast food tonight?’’ or ‘‘I wonder what moti- two and a half weeks we’ve had nine more Texan to the core, enamored of the mili- vated Brittany Spears to shave her un- guys get killed, and over 50 wounded. I’m tary, Specialist Daniel E. Gomez, 21, an sightly, mishaped domepiece?’’ just hoping that I can make it the 75 more Army combat medic in the division’s Alpha To the simpleton, this news might appear days or so that we have left of combat oper- Company, relied on his books, his iPod and ‘‘devastating.’’ I assume not everyone thinks ations before we start packing. an Xbox to distract him from the swirl. this way, but from my little corner of the Jerry Ryen King, Journal Entry, April 11, 2007 Strange but this place where we are at is earth, Iraq, a spot in the world a majority of unreal almost. I hope I come back mentally Americans could’nt point out on the map, it Among the guys in Charlie Company, Pri- in shape. LOL. certainly appears so. . . . To all Americans I vate Agami, 25, was one of the boldest and Daniel Gomez, Myspace Blog, have but one phrase that helps me through- most resilient. He was the kind of guy who Sept. 9, 2006 out my day of constant dangers and ever joined an endurance ski contest on a whim. present death around the corner, ‘‘WHO THE He took pride in being the guy who tended He came in fourth. He had never skied in his to wounded soldiers under fire, patching [expletive] CARES!’’ Wow America, we have life. truly become a nation of self-absorbed re- them up to help them survive. Private Agami had time for everyone, and As the violence intensified, Specialist tards. . . . This world has serious problems everyone had time for him. Affectionately and it’s time for America to start addressing Gomez set aside thoughts of a free Iraq or a called G.I. Jew, he held his religion up to the safer America and, like generations of sol- them. light. He used it to build tolerance among Ryan Wood, Myspace Blog, diers before him, simply started fighting for the troops and shatter stereotypes; few in his the soldier next to him. May 26, 2007 unit had ever met a Jew. He flew the Israeli A few days ago I realized why I am here in flag over his cot in Adhamiya. He painted The somberness of the job was hard to Baghdad dealing with all the gunfire, the the words Hebrew Hammer onto his rifle. He shake off. But, day to day, there was no more rocket attacks, the IEDs, the car bombs, the even managed to keep kosher, a feat that re- reliable antidote than Pfc. Daniel J. Agami, death. I have only been here going on a quired a steady diet of protein shakes and ce- a South Floridian with biceps the size of can- month and a half. Already I have seen what real. taloupes, and Pfc. Ryan J. Hill, a self-de- war really is. . . but officially it’s called scribed hellion who loved his ‘‘momma’’ and Commander Mom, I can’t wait to come ‘‘full spectrum operations.’’ No, I don’t down hailed from what he called the ‘‘felony flats’’ home and when I do, don’t worry I’ll have a Bush, he is my CinC, and I think he is doing of Oregon. Funny men in the best sense of lot to say to the congregation. Don’t worry a good job with what Clinton left him. I the word, the two provided a valuable and es- about my mental state either, we all receive don’t debate why we are involved in Iraq. I sential commodity in a war zone. counseling and help from doctors when some- just know why I am here. It is not for the Their mother jokes—the kind that begin, thing like this happens. I am a strong indi- smiling Iraqi kids, or even the feeling of ‘‘your mother is so . . .’’—were legendary, vidual physically and mentally and if there wearing the uniform ( it feels damn good culminating in a Myspace joke-off. It ended is one thing the army teaches you, it is how though:). I am here for the soldier on patrol abruptly after an enough-is-enough phone to deal with death. Every day that passes it with me. call from Private Hill’s mother, who ranked gets easier and easier. I miss you guys very But why are you there in the States? Why No. 1 on his list of heroes in Myspace. Pri- much and I love you! are you having that nice dinner, watching vate Agami proclaimed victory. Daniel Agami, e-mail Message to his Mother, TV, going out on dates. . . . About a month later . . . I went to my Oct. 28, 2006 Daniel Gomez, E-mail to Friends and Family, room and my mattress was missing and all It did not get easier. Sept. 27, 2006

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00033 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.016 S03APPT1 ccoleman on PRODPC75 with SENATE S2400 CONGRESSIONAL RECORD — SENATE April 3, 2008 And then Specialist Gomez fell in love. An Mr. SANDERS. Mr. President, I ask People who are borrowing money to e-mail flirtation with Katy Broom, his sis- unanimous consent to speak as in send their kids to college are paying ter’s close friend, gradually led to a cyber ex- morning business. outrageously high rates, and certainly change of guarded promises about the future. The PRESIDING OFFICER. Without we know, given the crisis we are debat- Headed home for a rest break in May, the objection, it is so ordered. tentativeness lifted and they began to rely ing today, that mortgage interest rates on each other to get through the day. The Mr. SANDERS. Mr. President, I con- are off the charts. two joked about ‘‘the best sex we never had.’’ gratulate Majority Leader REID and With this amendment I will be offer- . . . this R&R there is someone new in my Minority Leader MCCONNELL, as well as ing, it would cap all interest rates at 8 life. Exactly what she is to me, and what I Committee Chairman DODD, and rank- percent above what the IRS charges in- am to her is uncertain, but it’s not really ing committee member SHELBY for come tax deadbeats. That is the for- important at the moment. Just the thought their hard work in beginning the proc- mula we are using. Currently, the IRS that I could spent a second of my life with ess of trying to bring relief to families charges a 6-percent interest rate to her, before I have to come back here makes who are struggling to hold on to their Americans who are late on paying their everything worth it. homes. I think they are taking a good income tax returns. That is what we Daniel Gomez, Myspace Blog, step forward. I think we have to do a May 9, 2007 are doing today. The IRS adjusts these lot more to address this very serious rates every quarter based on the Fed- crisis. eral funds rate. If the Federal funds Rest and relaxation in Georgia went better It is no secret to anyone that the than expected. He fell in love with the love rate rises, the interest rate the IRS of his life all over again, this time in person. middle class in this country is in great charges late filers goes up. If the Fed- The couple shared one kiss during his leave. danger. It is shrinking. Some think it eral funds rate goes down, so does the ‘‘He was everything I expected and more,’’ is on the verge of collapse. Workers interest rate the IRS charges late fil- said Ms. Broom, 20, who spent one week and today who are going to fill up their ers. two days with him. ‘‘It was kind of surreal car’s gas tank are paying $3.20 for a If the amendment I am offering were when we met. It’s almost like a perfect love gallon of gas in the State of Vermont, signed into law today, all interest rates and war story.’’ and there is a fear that may go higher. in this country would be capped at 14 Not many soldiers leave behind a just-in- People are paying higher and higher case letter. Specialist Gomez did. He handed percent, including subprime mort- Ms. Broom an envelope at the airport with prices for food. Since President Bush gages, credit cards, auto loans, payday the ’words, ‘‘Don’t read unless something has been President, some 8 million loans, and income tax refund anticipa- happens to me.’’ Americans have lost their health insur- tion loans. Why 14 percent? Why do we On July 18, 2007, two months after his ance, health care costs are soaring, and pick that number? It is an interesting leave, Specialist Gomez died in Adhamiya a college education is unaffordable. In point. I am glad you asked that ques- when the Bradley fighting vehicle he was in the meantime, wages, the real median tion, Mr. President, and here is the an- struck a roadside bomb. The explosion and family income for the average Amer- swer. Because 14 percent happens to be flames also killed three other soldiers. ican family is going down, and the gap Ms. Broom waited three days after she got the same level that former Senator Al word to open the letter. She sat alone in the between the very rich and everybody D’Amato chose when he offered an couple’s favorite spot, her apartment bal- else is getting wider. So we have some amendment in 1991 to cap credit card cony. very serious problems. Among other as- interest rates. Al D’Amato, Senator ‘‘I was very thankful that he wrote it,’’ she pects of that crisis is that the personal from New York, offered that amend- said of the letter. ‘‘I have opened and closed savings rate today is below zero, which, ment. it so many times, I’m surprised it hasn’t fall- up until 2005, hasn’t happened since the Do you know what the vote was on en apart.’’ Great Depression. So what is hap- that bipartisan amendment, offered by R+R 2007 pening is that people are working the Republican Senator from New Hey baby. If you’re reading this, then longer and longer hours, their wages York? That amendment passed the something has happen to me and I am sorry. are going down, we are losing good- Senate by a vote of 74 to 19—74 to 19— I promised you I would come back to you, paying jobs, and they do not have a huge bipartisan vote. And among but I guess it was a promise I could not keep. enough money to survive on so they those Members who are today in the You know I never believe in writing ‘‘death are borrowing more and more money. letters.’’ I knew if I left one for my folks it Senate, and who cosponsored that would scare them. Then I met you. We were That is the reality. amendment, were Senators SPECTER, supposed to meet, darling. I needed someone There is a lot, to my mind, that we LIEBERMAN, and DOMENICI, among oth- to make me smile, someone that was an old have to consider as a country to begin ers. Unfortunately, that amendment romantic like I was. I was going through a addressing the fact that poverty is ended up not being signed into law. very rough time in Iraq and I was starting to going up, the middle class is declining, Like my amendment, the D’Amato doubt my mental state. Then one day after a and the gap between the rich and ev- amendment was also pegged slightly patrol, I go to my facebook and there you erybody else is growing wider. There is above the interest rates for late income were.... a lot we have to do. But as we now tax filers. I have the feeling that in my I can’t stop crying while I am writing this focus on the mortgage crisis, we have letter, but I have to talk to you one last career in the Senate I will not often be time, because maybe the last time I heard to take a hard look at interest rates in quoting former Senator D’Amato, prob- your voice I did not know it would be the this country. I intend to offer an ably won’t be doing that, but let me last time I heard your voice.... amendment to the housing bill that I quote what Senator D’Amato said on I Love You. Go be happy, go raise a family. want to say a few words on now and I the Senate floor in 1991. This is what Teach your kids right from wrong, and have will speak to at greater length later. he said. faith, darling. l think I knew I loved you be- My amendment will clearly not solve Fourteen percent is certainly a reasonable fore I met. I love you, Katy. * Kiss * Goodbye all of the problems facing the middle rate of interest for banks to charge cus- Mr. DURBIN. Mr. President, I yield class, but it will do one very important tomers for credit card debt. It allows a com- the floor and suggest the absence of a thing: It will take one action that is fortable profit margin, but keeps banks in quorum. long overdue, and that is it would stop line so that interest rates rise and fall with The PRESIDING OFFICER. The big banks, credit card companies, pay- the health of the economy. clerk will call the roll. day lenders, mortgage bankers, and He was then the chairman of the The assistant legislative clerk pro- other lenders from ripping off Amer- Banking Committee. ceeded to call the roll. ican consumers by charging outrageous I say to my colleagues that if the The PRESIDING OFFICER (Mr. NEL- interest rates. Senate in 1991 thought that interest SON of Nebraska). The Senator from I do a national radio show every Fri- rates should be capped, trust me, we Vermont. day afternoon where people call in. And should at least do as much today, be- Mr. SANDERS. Mr. President, I ask you know what they say? They say: We cause the problem is in fact much more unanimous consent that the order for are sick and tired of paying 20, 25, 30 severe. the quorum call be rescinded. percent interest rates when, in fact, we A recent report, published by Tamara The PRESIDING OFFICER. Without pay our debt on time every single Draut, the Director of the Economic objection, it is so ordered. month. That is what they are saying. Opportunity Program at Demos, found

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00034 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.018 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2401 that one-third of all credit card holders Mr. SANDERS. Unfortunately, in Vietnam, Korea, Gettysburg, and Tren- in this country are paying interest many cases interest rates for con- ton. rates above 20 percent and as high as 41 sumers are going up at the worst pos- We have lost 69 brave volunteers percent—more than double what they sible time. One of the reasons for this from Kentucky. They are not forgotten paid in interest rates in 1990. In other is the virtual lack of regulation when by their families, they are not forgot- words, if we had a problem then, the it comes to interest rates. For exam- ten by the U.S. Senate, and they are problem today is much more severe. ple, credit card companies are able to not forgotten by those who carry on Between 1989 and 2006, Americans’ raise interest rates at any time for any the fight. overall credit card debt grew by 315 reason, and recently that is exactly percent from $211 billion to $876 billion. what, for example, the Bank of Amer- The PRESIDING OFFICER. The Sen- One-third of low- and middle-income ica has done. According to a recent ator from Massachusetts is recognized. families reported going into credit card Business Week article: Mr. KENNEDY. Mr. President, I ask debt to pay for rent, utilities, and food Bank of America sent letters notifying for the yeas and nays. in 2006. some responsible card holders that it would The PRESIDING OFFICER. Is there a Now, I don’t know about Nebraska, more than double their rates to as high as 28 but I will tell you that in the State of percent, without giving an explanation for sufficient second? There is a sufficient Vermont there are a lot of people who the increase. Fine print at the end of the let- second. The question is on agreeing to are buying their food with credit cards. ter advised calling a 800 number for the rea- the resolution. The clerk will call the They do not have the cash. They have son, but consumers who called said they roll. were unable to get a clear answer. What is to go in debt to buy food and pay for striking is how arbitrary the Bank of Amer- The assistant legislative clerk called other basic necessities. All of this— ica rate increases appear, credit industry ex- the roll. high interest rates—has resulted in perts say. Mr. DURBIN. I announce that the credit card companies earning $90.1 bil- This is unacceptable. Lenders should Senator from New York (Mrs. CLIN- lion in interest in 2006 alone—credit not be able to raise interest rates at TON), the Senator from Hawaii (Mr. card companies ripping off the Amer- any time for any reason. INOUYE), and the Senator from Illinois ican people and earning huge profits. There are Biblical references to what (Mr. OBAMA) are necessarily absent. But credit card companies aren’t the can be described as usury; that when only ones charging outrageous interest Mr. KYL. The following Senators are people are down and in need of money, necessarily absent: the Senator from rates, and that is why my amendment there is a strong moral objection to Georgia (Mr. CHAMBLISS) and the Sen- expands on the D’Amato amendment to charging them sky-high interest rates. ator from Arizona (Mr. MCCAIN). cover all forms of loans. For example, In the ‘‘Divine Comedy’’ by Dante, the Center for Responsible Lending has there is reserved a special place for The result was announced—yeas 95, found that some American consumers people who charge usurious interest nays 0, as follows: are paying interest rates for payday rates, the inner ring of the Seventh [Rollcall Vote No. 87 Leg.] loans as high as 800 percent. And if you Circle of Hell. want to know why these outrageous I don’t wish this on the credit card YEAS—95 levels of interest on credit cards and companies or the mortgage lenders, but Akaka Domenici Menendez payday loans are relevant to the debate this is what I do say. In this country Alexander Dorgan Mikulski on foreclosure, let me quote from two Allard Durbin Murkowski today, especially as interest rates go Barrasso Ensign Murray articles on the subject. The first is a down from the Fed, it is an outrage Baucus Enzi Nelson (FL) recent Reuters article entitled ‘‘Pay that millions of our fellow Americans Bayh Feingold Nelson (NE) Day Loans Exacerbate Housing Crisis.’’ Bennett Feinstein Pryor are paying 25 percent or 30 percent in- Biden Graham According to this article: terest rates, and our amendment would Reed Bingaman Grassley Reid As hundreds of thousands of American begin to address this issue. The time is Bond Gregg Roberts Boxer Hagel homeowners fall behind on their mortgage long overdue for us to move in that di- Rockefeller Brown Harkin payments, more people are turning to short- Salazar rection. I ask at the appropriate time Brownback Hatch term loans with sky-high interest rates just Sanders for the support of my colleagues. Bunning Hutchison to get by. While figures are hard to come by, Schumer Burr Inhofe f Sessions evidence from nonprofit credit and mortgage Byrd Isakson Shelby counselors suggests that the number of peo- HONORING THE SACRIFICE OF Cantwell Johnson ple using these so-called ‘‘pay day loans’’ is Smith MEMBERS OF THE UNITED Cardin Kennedy growing as the U.S. housing crisis deepens, a Carper Kerry Snowe negative sign for economic recovery. STATES ARMED FORCES WHO Casey Klobuchar Specter HAVE BEEN KILLED IN IRAQ Coburn Kohl Stabenow The second article is from a recent Stevens AND AFGHANISTAN Cochran Kyl front-page story from USA Today. The Coleman Landrieu Sununu title of the article says it all. ‘‘Facing The PRESIDING OFFICER. Under Collins Lautenberg Tester Thune losses on bad loans, banks boost credit the previous order, the Senate will pro- Conrad Leahy Corker Levin Vitter card rates.’’ According to the article: ceed to the consideration of S. Res. 501, Cornyn Lieberman Voinovich Even as the Federal Reserve has aggres- which the clerk will report. Craig Lincoln Warner sively slashed short-term interest rates, The assistant legislative clerk read Crapo Lugar Webb banks are raising rates on credit cards. as follows: DeMint Martinez Whitehouse Dodd McCaskill Wicker Federal Reserve lowering; banks in- A resolution (S. Res. 501) honoring the sac- Dole McConnell Wyden creasing. This should not happen. When rifice of members of the United States the Federal Reserve has slashed the Armed Forces who have been killed in Iraq NOT VOTING—5 and Afghanistan. Federal funds rate five times, from a Chambliss Inouye Obama high of 5.25 percent down to 2.25 per- Mr. MCCONNELL. Mr. President, the Clinton McCain cent, credit card interest rates should resolution before the Senate honors the sacrifice of the members of our Armed The resolution (S. Res. 501) was be going down, not up. Interest rates agreed to. for payday loans should be going down, Forces who have given their lives in not up. Mortgage interest rates should Iraq and Afghanistan. It is fitting that The preamble was agreed to. be going down, not up. we honor their service and their sac- The resolution, with its preamble, is The PRESIDING OFFICER. If the rifice. printed in todays RECORD under ‘‘Sub- Senator can suspend for just a second? The resolution states that sacrifices mitted Resolutions.’’ Mr. SANDERS. I ask unanimous con- of the fallen are in keeping with the sent for an additional 2 minutes, highest traditions of the U.S. Army, Mrs. LINCOLN. Madam President, I please. Navy, Marine Corps, Air Force and move to reconsider the vote and lay The PRESIDING OFFICER. Without Coast Guard. These selfless Americans that motion on the table. objection, it is so ordered. Please pro- have upheld the fine traditions of those The motion to lay on the table was ceed. who fought at Guadalcanal, Inchon, in agreed to.

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00035 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.061 S03APPT1 ccoleman on PRODPC75 with SENATE S2402 CONGRESSIONAL RECORD — SENATE April 3, 2008 NEW DIRECTION FOR ENERGY to 24,000 people and their families. I are we? We have an underlying bill, ne- INDEPENDENCE, NATIONAL SE- don’t know how many it would add up gotiated on a bipartisan basis by Sen- CURITY, AND CONSUMER PRO- to, but their families are out. So if on ator SHELBY and Senator DODD. Then TECTION ACT AND THE RENEW- some phantom matter of principle the we have, with all due respect to our ABLE ENERGY AND ENERGY Republicans are going to say: You are friends on the other side, an expression CONSERVATION TAX ACT OF going to have to get 60 votes on this, of incredulity that 60 votes might be 2007—Continued then I guess we will not have a bill. I required for something in the Senate. The PRESIDING OFFICER (Ms. ask my friends who have been in the Let me quote my good friend the ma- KLOBUCHAR). The majority leader is Senate much longer than I why we jority leader who said last year: recognized. have to do that. In the Senate, it has always been the case Mr. REID. Madam President, we are I think we are in an impossible situa- you need 60 votes. I don’t have 60 votes. in a situation that is hard for me to tion. I admire, I have said many times, Senator REID said in January of last comprehend, but that is where we are. the good work done by Senators DODD year: We have an amendment pending, the and SHELBY. I have also said the sub- Sixty votes are required for just about ev- Durbin amendment, and we cannot get stitute amendment that is before us is erything. We may have to come up with a a vote. That is unfortunate. far from being perfect. I have had number of resolutions that require 60 votes. We have been told by the minority members of my own party say: Why did My point is—I say this with the they want a 60-vote threshold. I cannot you give up on that or why did you add greatest respect and admiration for my understand—there are a lot of people that? For example, Senator SHELBY, counterpart—acting like this is un- who have been in the Senate a lot why did we raise the downpayment to usual is—well, it is clearly not the longer than I have. But I do not know 3.5 percent? It was a compromise. The case. where we came up with a 60-vote deal. House wanted 1 percent. People over Why would Members on my side want We should legislate. If someone on here wanted 6 percent. We com- to subject this proposal to a 60-vote the minority side would offer a motion promised. The whole substitute before threshold? It is the most controversial to table and that motion fails, they us is a compromise. Legislation is the provision in the bill. It is the principal still are protected with the 60-vote art of compromise. I would be satisfied reason my side was unwilling to go to margin. I do not understand why we if we walked out of this Chamber today the bill as previously crafted. So why cannot move forward on this legisla- with just the substitute amendment as would anyone feel aggrieved that the tion. It appears we cannot. It appears having been agreed upon. most controversial part of the bill, the we cannot. Some think we have done too much issue which needed to come out in It appears we have legislated our for certain segments of society and we order to craft a bipartisan beginning, hearts out to try to arrive at a bipar- haven’t done enough, on my side, for which Senators DODD and SHELBY did, tisan arrangement. Let’s go back and the middle class. ‘‘Other side’’ people why would anybody be incredulous start at the beginning. think we have done far too much, that that 60 votes would be required for Madam President, we offered a we should back off. Government is in- this? That is routine in the Senate. It Democratic package. In good faith, volved in this too much. is also frustrating to the majority. I Senators DODD and SHELBY, along with I repeat, that is what legislation is was in the majority recently. But that the Finance Committee chair and all about. It is compromising. The is the way it is. To act like it is some- ranking member, came with a package American people are waiting for us to how unusual strikes me as somewhat for us. If you look at it, the only thing act. Someone please explain to me, I odd. taken out of the Democratic package say to my friend, the Republican lead- I would be happy to propose a unani- was the bankruptcy amendment. Many er, why do we need to have 60 votes on mous consent request now, if the ma- other provisions were changed dras- every amendment that comes along? jority leader would like me to, that we tically, but that was the only one that We have another amendment sponsored have a vote on this amendment in the was taken out. by Senators FEINSTEIN and MARTINEZ. very near future at a 60-vote threshold. Senator DURBIN has offered to send it There are some people who are con- It is quite routine and common in the to the bill. During the negotiations, cerned about that. They don’t like it. Senate. It would allow us to dispose of Senators DODD and SHELBY knew we on It is a licensing provision. All kinds of the Durbin amendment and move on to this side of the aisle wanted that bank- special interest groups have weighed in completion of the bill in the near fu- ruptcy amendment in the bill, so the on this. Should we have 60 votes on ture, something most of my Members minority would have to take it out. that? Senator SCHUMER has been some- would like to do. I assume, based on But negotiating in good faith, and rec- what aggrieved at both me and Senator what my good friend said, that he ognizing that a legislator is someone DODD because of a provision in here for would object to that, so I would not who needs to be able to compromise, in counseling that is not $500 million. It is propose it, but I would be happy to. It the presence of Senator DODD we $100 million. would allow us to do what I think he agreed to take that provision out. It was a compromise. Our bill had wants to do, which is to go on and vote That is where we are. We are not $200 million. Senator SCHUMER wanted on the Durbin amendment and move going to agree to a 60-vote margin. It is $500 million. But do we need to have 60 ahead with amendments on both sides unfair. It is unfair that every time votes on that? If that is the case, we of the aisle. someone thinks they may lose, they would not get 60 votes on anything. The PRESIDING OFFICER. The ma- want a 60-vote margin. I do not com- There may be a point that there are jority leader. prehend that. It has not been that way so many amendments offered that I Mr. REID. Madam President, I apolo- until the recent minority came into would consult with the Republican gize. I was interrupted. Did the Senator power, or lack of power, whatever the leader and say: Well, maybe we need to make a suggestion? What was that? case may be. file cloture on this bill. We have been Mr. MCCONNELL. I did not make a Today about 8,000 people will be told: here since 9:30 this morning on this consent request. But I said I would be You are out of your home forever. bill, and we have not had a single vote. happy, if you would like me to, that we Someone else owns your home. Fore- Again, through the Chair, I ask the vote on the Durbin amendment shortly closure is over with—Friday, tomor- distinguished Republican leader, why with a 60-vote threshold, which is pret- row, another 8,000 people. Because of can’t we move forward and try to dis- ty common around here on all matters our inaction today and tomorrow, that pose of, affirmatively or negatively, of controversy. I was pointing out that is 16,000 people. Fortunately, fore- the Durbin amendment? this Durbin amendment is the most closure finalizations do not occur on The PRESIDING OFFICER. The Re- controversial part of the bill. Both weekends. That is standard law around publican leader is recognized. sides knew that. I don’t know why we the country. So we come back Monday. Mr. MCCONNELL. Madam President, don’t have a vote at 60 like we do on It is a nonvote day that has been with all due respect to my good friend virtually everything of controversy in scheduled for several months. That will the majority leader, this is somewhat the Senate. Then dispose of the Durbin be another 8,000 people. Now we are up of a manufactured controversy. Where amendment and move on.

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00036 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.064 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2403 Mr. REID. I suggest the absence of a The PRESIDING OFFICER. Are there was in the chair as Presiding Officer. quorum. any other Senators in the Chamber de- He called the vote—a voice vote. It was The PRESIDING OFFICER. The siring to vote? supposed to be ‘‘the ayes have it,’’ but clerk will call the roll. The result was announced—yeas 58, there were a bunch of Republicans on The legislative clerk proceeded to nays 36, as follows: the floor and, in full-throated voice, we call the roll. [Rollcall Vote No. 88 Leg.] said ‘‘no.’’ I think one timid soul said Mr. VOINOVICH. Madam President, I YEAS—58 ‘‘aye.’’ The Presiding Officer said: ‘‘The ask unanimous consent that the order Alexander Dole McConnell nos appear to have it, the nos do have for the quorum call be rescinded. Allard Domenici Murkowski it.’’ He called the vote, but not the way The PRESIDING OFFICER. Is there Barrasso Ensign Nelson (NE) his side of the aisle wanted it called. Of objection? Baucus Enzi Pryor course, about 10 minutes later, the ap- Bennett Graham Roberts Ms. STABENOW. Madam President, Brownback Grassley propriate number of people were on the there is an objection on behalf of the Sessions Bunning Gregg Shelby floor and the vote was reversed. So this majority leader. I object. Burr Hagel Smith is not the first time the Senator from Byrd Hatch The PRESIDING OFFICER. Objec- Snowe Carper Hutchison Illinois has done something unusual Specter tion is heard. Chambliss Inhofe and in a way to move the process along The clerk will continue to call the Coburn Isakson Stevens and be fair in it. I always have appre- roll. Cochran Johnson Sununu Tester ciated that. The legislative clerk continued with Coleman Kyl Collins Landrieu Thune The PRESIDING OFFICER. The Sen- the call of the roll. Corker Lieberman Vitter ator from Ohio is recognized—the Sen- Mr. CHAMBLISS. Madam President, Cornyn Lincoln Voinovich ator from Louisiana is recognized. I ask unanimous consent that the order Craig Lugar Warner Ms. LANDRIEU. Madam President, for the quorum call be rescinded. Crapo Martinez Wicker DeMint McCaskill may I inquire about the order of The PRESIDING OFFICER. Is there amendments that will be offered? Is NAYS—36 objection to dispensing with the there an order? quorum call? Akaka Feingold Murray Mr. DODD. May I ask the Senator Without objection, it is so ordered. Bayh Feinstein Nelson (FL) Biden Harkin Reed from Ohio to yield without giving up VOTE EXPLANATION Bingaman Kennedy Reid his right to the floor? Mr. CHAMBLISS. Madam President, Brown Kerry Rockefeller Mr. VOINOVICH. Yes. I was unavoidably detained on the last Cantwell Klobuchar Salazar The PRESIDING OFFICER. The Sen- Cardin Kohl Sanders vote. Had I been present to vote on S. Casey Lautenberg Schumer ator from Connecticut. Res. 501, I would have voted in the af- Conrad Leahy Stabenow Mr. DODD. Senator SHELBY will be firmative. I would like to be recorded Dodd Levin Webb coming over shortly. A lot of Members Dorgan Menendez Whitehouse have amendments they want to offer. as such. Durbin Mikulski Wyden The PRESIDING OFFICER. The We wish to obviously accommodate as NOT VOTING—6 RECORD will so note the Senator’s posi- many people as we can. I don’t know tion. Bond Clinton McCain what the leader’s intentions are for Mr. CHAMBLISS. I thank the Sen- Boxer Inouye Obama this evening, but we will try to accom- ator. The motion was agreed to. modate people and go back and forth in The PRESIDING OFFICER. The ma- The PRESIDING OFFICER. The ma- the normal process. We will be here jority leader is recognized. jority leader is recognized. while Senator VOINOVICH is offering his Mr. REID. Madam President, I say to Mr. REID. Madam President, I had amendment. I know Senator SCHUMER my friend from Georgia, we vote in a the good fortune in 1982 to be elected to is next in line. We will have to sit down very hurried fashion lots of times. It is the House of Representatives, one of and work out an order after that. a wonder we do not make more mis- the biggest thrills of my life. As a re- Ms. LANDRIEU. Madam President, takes. I have done the same thing the sult of that, I have made some very reserving the right to object— Senator from Georgia has done. You good friends. One of the people who Mr. DODD. Reserving the right to ob- should not be embarrassed. It happens came in that class of 1982 was RICHARD ject, I will try to accommodate every- all the time. I am glad the RECORD re- DURBIN of Illinois. body. flects your feelings. We know your feel- What everybody here witnessed was Ms. LANDRIEU. My suggestion is ings on this issue. an act of unselfishness. Senator DURBIN that we get an order now. Mr. CHAMBLISS. Thank you. procedurally moved to table his own Mr. DODD. I am going to try to do The PRESIDING OFFICER. The Sen- amendment. That is unheard of in the that. ator from Illinois is recognized. Senate. He did that in an effort to The PRESIDING OFFICER. The Sen- AMENDMENT NO. 4388 move this along. He knew where the ator from Ohio is recognized. Mr. DURBIN. Madam President, in votes were. I want the RECORD to be AMENDMENT NO. 4406 TO AMENDMENT NO. 4387 the interest of moving forward this im- spread with the fact that this is a fine Mr. VOINOVICH. Madam President, I portant housing stimulus bill as quick- legislator, a good human being. The send amendment No. 4406 to the desk. ly as possible, I move to table the pend- people of Illinois are so fortunate to The PRESIDING OFFICER. The ing amendment and ask for the yeas have this man who cares so much clerk will report. and nays. about people. In front of all of my col- The bill clerk read as follows: The PRESIDING OFFICER. Is there a leagues, Democrats and Republicans, I The Senator from Ohio [Mr. VOINOVICH], for sufficient second? express my appreciation to DICK DUR- himself, Ms. STABENOW, Mr. HATCH, Mr. There is a sufficient second. BIN for doing something that is un- ROCKEFELLER, Mr. SMITH, Ms. CANTWELL, Mr. The question is on agreeing to the heard of here, something very unself- VITTER, and Mr. LEVIN, proposes an amend- ish, for which he gets no credit. ment numbered 4406. motion. Mr. VOINOVICH. Madam President, I Mr. KYL. Will the leader yield for a The clerk will call the roll. ask unanimous consent that reading of The legislative clerk called the roll. question? the amendment be dispensed with. Mr. REID. Yes. Mr. DURBIN. I announce that the The PRESIDING OFFICER. Without OXER Mr. KYL. Madam President, I served Senator from California (Mrs. B ), objection, it is so ordered. the Senator from New York (Mrs. CLIN- in the House of Representatives with The amendment is as follows: TON), the Senator from Hawaii (Mr. the Senator from Illinois as well. This (Purpose: To protect families most vulner- INOUYE), and the Senator from Illinois isn’t the first time he has done some- able to foreclosure due to a sudden loss of (Mr. OBAMA) are necessarily absent. thing unheard of. I was in the minority income by extending the depreication in- Mr. KYL. The following Senators are in the House of Representatives and on centive to loss companies that have accu- necessarily absent: the Senator from a particular vote—I don’t know how mulated alternative minimum tax and re- Missouri (Mr. BOND) and the Senator many were on the floor, but probably search and development tax credits) from Arizona (Mr. MCCAIN). about a dozen altogether—DICK DURBIN At the end of title VI, insert the following:

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ELECTION TO ACCELERATE AMT AND bonus depreciation amount which is to be al- in the plan to turn things around for R AND D CREDITS IN LIEU OF BONUS located to each of the limitations described workers in these and other manufac- DEPRECIATION. in subparagraph (B). turing States so families have the in- (a) IN GENERAL.—Section 168(k), as amend- ‘‘(ii) BUSINESS CREDIT LIMITATION.—The ed by this Act, is amended by adding at the come to stay in their homes. portion of the bonus depreciation amount al- Our amendment will help unprofit- end the following new paragraph: located to the limitation described in sub- ‘‘(5) ELECTION TO ACCELERATE AMT AND R paragraph (B)(i) shall not exceed an amount able companies—many of which are in AND D CREDITS IN LIEU OF BONUS DEPRECIA- equal to the portion of the credit allowable Ohio—to use existing AMT and R&D TION.— under section 38 for the taxable year which is credits in 2008 to stimulate their busi- ‘‘(A) IN GENERAL.—If a corporation which is allocable to business credit carryforwards to nesses, turn profits, and create new an eligible taxpayer (within the meaning of such taxable year which are— jobs. The amendment would allow com- paragraph (4)) for purposes of this subsection ‘‘(I) from taxable years beginning before panies operating in the red to use the elects to have this paragraph apply— January 1, 2006, and ‘‘(i) no additional depreciation shall be al- AMT and R&D credits already on their ‘‘(II) properly allocable (determined under books instead of bonus depreciation de- lowed under paragraph (1) for any qualified the rules of section 38(d)) to the research property placed in service during any taxable credit determined under section 41(a). ductions, as long as the money is used year to which paragraph (1) would otherwise ‘‘(iii) ALTERNATIVE MINIMUM TAX CREDIT to expand operations in the United apply, and LIMITATION.—The portion of the bonus depre- States. ‘‘(ii) the limitations described in subpara- ciation amount allocated to the limitation Bonus depreciation has already been graph (B) for such taxable year shall be in- described in subparagraph (B)(ii) shall not included in the economic stimulus creased by an aggregate amount not in ex- exceed an amount equal to the portion of the package, but it left out companies that cess of the bonus depreciation amount for minimum tax credit allowable under section such taxable year. don’t have income against which to de- 53 for the taxable year which is allocable to duct their expenses because they are ‘‘(B) LIMITATIONS TO BE INCREASED.—The the adjusted minimum tax imposed for tax- limitations described in this subparagraph not making any money. This is an im- able years beginning before January 1, 2006. are— ‘‘(E) CREDIT REFUNDABLE.—Any aggregate portant thing. Ironically, these are the ‘‘(i) the limitation under section 38(c), and increases in the credits allowed under sec- companies that are most in need of re- ‘‘(ii) the limitation under section 53(c). tion 38 or 53 by reason of this paragraph lief during a strained economy, but ‘‘(C) BONUS DEPRECIATION AMOUNT.—For shall, for purposes of this title, be treated as they are not receiving it. purposes of this paragraph— a credit allowed to the taxpayer under sub- My colleagues should also note that ‘‘(i) IN GENERAL.—The bonus depreciation part C of part IV of subchapter A. amount for any applicable taxable year is an this amendment is fiscally responsible ‘‘(F) OTHER RULES.— amount equal to the product of 20 percent because it simply allows for the speed- ‘‘(i) ELECTION.—Any election under this and the excess (if any) of— ier use of tax credits that would be paragraph (including any allocation under ‘‘(I) the aggregate amount of depreciation used anyway in the future. In other subparagraph (D)) may be revoked only with which would be determined under this sec- words—and I wasn’t aware of this— the consent of the Secretary. tion for the taxable year if no election under ‘‘(ii) DEDUCTION ALLOWED IN COMPUTING companies that are not making money this paragraph were made and if this sub- MINIMUM TAX.—Notwithstanding this para- pay an AMT corporate tax, and what section applied only to eligible qualified graph, paragraph (2)(G) shall apply with re- happens is when they do start making property, over spect to the deduction computed under this money, they deduct the corporate AMT ‘‘(II) the aggregate amount of depreciation section (after application of this paragraph) allowable under this section for the taxable from the taxes, so in effect they get with respect to property placed in service year. credit for that corporate AMT. We are during any applicable taxable year.’’. ‘‘(ii) ELIGIBLE QUALIFIED PROPERTY.—For basically saying let’s let those compa- (b) EFFECTIVE DATE.—The amendments purposes of clause (i), the term ‘eligible made by this section shall apply to property nies—because they cannot use the qualified property’ means qualified property placed in service after December 31, 2007, in bonus depreciation—use that AMT under paragraph (2), except that in applying taxable years ending after such date. credit so they can create jobs and keep paragraph (2) for purposes of this clause— people working. So this basically lets ‘‘(I) ‘March 31, 2008’ shall be substituted for Mr. VOINOVICH. Madam President, along with my colleague from Michi- them use these credits speedier than ‘December 31, 2007’ each place it appears in they would ordinarily be used if we subparagraph (A) and clauses (i) and (ii) of gan, Senator STABENOW, we have subparagraph (E) thereof, worked to craft an amendment to help waited over a longer period of time. ‘‘(II) only adjusted basis attributable to struggling companies and their em- I want everybody to know we will manufacture, construction, or production ployees during this time of economic continue to work with the Joint Com- after March 31, 2008, and before January 1, downturn. The two of us have been mittee on Taxation to get a fiscally re- 2009, shall be taken into account under sub- joined by a bipartisan group of cospon- sponsible revenue estimate. We have paragraph (B)(ii) thereof, and sors, including Senators HATCH, SMITH, every reason to believe it is going to be ‘‘(III) in the case of property which is a VITTER, LEVIN, CANTWELL, and ROCKE- very small during this 10-year period. passenger aircraft, the written binding con- FELLER. As a matter of fact, if you take into tract limitation under subparagraph consideration that these companies, (A)(iii)(I) thereof shall not apply. Without a job and financial security, down the road, would use the R&D or ‘‘(iii) MAXIMUM AMOUNT.—The bonus depre- it is extremely difficult to keep paying ciation amount for any applicable taxable your mortgage and keep your home out their corporate AMT, it could end up year shall not exceed the applicable limita- of foreclosure. A job is the first step in being a wash. tion under clause (iv), reduced (but not below ensuring that Americans can achieve This bipartisan amendment has wide- zero) by the bonus depreciation amount for the dream of home ownership. ranging support from the biotech in- any preceding taxable year. My hometown of Cleveland is the epi- dustry, to the American auto industry, ‘‘(iv) APPLICABLE LIMITATION.—For pur- center of the foreclosure crisis, and to the coal industry. All of these indus- poses of clause (iii), the term ‘applicable lim- with Ohio ranked No. 1 in foreclosures tries are hurting and need a boost to itation’ means, with respect to any eligible nationwide, according to the Mortgage get back on track. This amendment taxpayer, the lesser of— would give them that boost to make in- ‘‘(I) $50,000,000, or Bankers Association, addressing this ‘‘(II) 50 percent of the sum of the amounts issue is of critical importance to me vestments now and create jobs so determined with respect to the eligible tax- and all of my constituents in the great Americans can keep their homes. I payer under clauses (ii) and (iii) of subpara- State of Ohio. The reason Ohio is expe- urge my colleagues to support this graph (D). riencing a foreclosure crisis has noth- amendment and work to protect their ‘‘(v) AGGREGATION RULE.—All corporations ing to do with speculators. It has to do constituents’ jobs and homes. which are treated as a single employer under with a bubble of rapidly rising prices. I yield the floor to the Senator from section 52(a) shall be treated as 1 taxpayer Ohio has a foreclosure crisis despite Michigan, whom I appreciate joining for purposes of applying the limitation under the fact that house prices never did in- me on this amendment. It is something this subparagraph and determining the appli- crease there as they did in other parts the two of us have been working on for cable limitation under clause (iv). of the country. Ohio families have been quite some time. I am glad we have a ‘‘(D) ALLOCATION OF BONUS DEPRECIATION AMOUNTS.— losing their homes because Ohio manu- bipartisan group that understands how ‘‘(i) IN GENERAL.—Subject to clauses (ii) facturing workers have been losing important it is to our respective States and (iii), the taxpayer shall, at such time their jobs. and to this country. and in such manner as the Secretary may It is the same story next door in The PRESIDING OFFICER. The Sen- prescribe, specify the portion (if any) of the Michigan. Our amendment is one step ator from Michigan is recognized.

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00038 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.013 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2405 Ms. STABENOW. Madam President, I tant middle-class jobs and keep fami- trouble in our country today, solve the first give thanks to my colleague and lies out of foreclosure. From manufac- housing crisis. friend from Ohio. We have been work- turing States such as Michigan, fami- I did not agree with the stimulus ing together on this issue. Michigan lies are not losing their homes because package we debated a month ago. I did and Ohio are part of the epicenter as of a housing bubble, they are losing not agree with borrowing $150 billion we have seen the downturn in the econ- their homes because they lost their and standing on street corners and omy since 2000. We have seen 3 million jobs, their livelihood. They have ex- handing out $500 bills. That helps manufacturing jobs—middle-class jobs hausted their unemployment benefits someone, but it does not help the econ- that created the standard of living in and they have spent all of their sav- omy in general because that money has this country—that have been lost. ings, probably dipped into the equity in not been handed out yet. This amendment addresses those their houses, and they cannot afford to What we do today, and if it were to companies that have done the right pay the mortgages anymore. This is a become law in a reasonable period of thing, that have paid good wages, pro- daily reality for the families I rep- time, would deal with one of the bigger vided health insurance, provided pen- resent in Michigan. industries in our country. I think few sions, that now find themselves in a The bonus depreciation provision we people, unless you look at it, recognize challenging time but that we want to passed in the stimulus package earlier the value of the housing industry to continue to support so they can con- this year gave manufacturers a strong our country, its breadth and its depth. tinue to keep great American jobs in incentive to increase their capital in- One of the things I monitor in Idaho, this country. vestments in an effort to stimulate the and I know my colleague from Mon- I am so pleased we are joined by oth- economy. Unfortunately, that did tana, who is on the floor, monitors as ers in a truly bipartisan effort. We nothing for manufacturers that are chairman of the Finance Committee is have four Democrats and four Repub- struggling the most right now, the mill closures; that is, sawmill closures, licans cosponsoring the amendment. ones that are not profitable, that are across the United States since the first of the year because the timber industry We have Senators HATCH, ROCKE- being forced to shut down plants and is flat. It is at a 40-year low in prices of FELLER, CANTWELL, VITTER, LEVIN, and lay off workers. dimensional lumber. SMITH coming together from all parts Our amendment would also give Why is it? Because the housing indus- of the country, representing important these struggling manufacturers an in- try is flat. Talk to plumbing fixture American industries that are asking to centive to be here in America and in- manufacturers and everybody else out be recognized and to basically allow vest in American jobs. By utilizing the there and look at the breadth and the them to use the AMT and R&D credits AMT and R&D credit provision, manu- depth of the housing economy. they have already accumulated. They facturers in this loss position that have So it is time we deal with the real have made investments and we want built up AMT and research and devel- problem. Had we dealt with it a month them to make more, and we want to opment tax credits will now be able to ago, possibly the House would have create a mechanism that allows them use their credits, stimulate the econ- been done with it, it could have been to benefit from the mechanisms we are omy, and create new jobs. These manu- signed into law, and, more impor- putting into place to support industries facturers will be able to recover their tantly, it would be recognized in the that need assistance in this difficult accumulated credits—in other words, marketplace today as a reality and the time and need to be ready to come out they have invested and developed cred- marketplace would be adjusting. That of this economic downturn as quickly its. They just cannot use them because is the banking industry, that is the as possible. they are currently not making a profit. mortgage industry, that is the housing There is no question that we are in a This will allow them to recover those industry. housing and economic crisis in Amer- credits after they have made new in- There are real problems out there, ica. Few States have been hurt worse vestments, which will help them to and they are very real problems if you than Michigan and Ohio. In Michigan fully realize the intended benefits of are involved in it. If you have been alone, right now, we rank No. 6 in the the bonus depreciation provision and conned into a subprime loan and it number of foreclosures. Last year, put them on equal ground with profit- sounded so good at the time you took 87,000 households were foreclosed upon; able companies. it and it turned south on you and your 87,000 families faced the loss of their This amendment will not only allow values drop, that is one thing and you homes and their piece of the American these manufacturers to stay afloat in are out on the street or you simply dream. this time of economic uncertainty, but walked because you used the ‘‘credit Last year, Michigan lost 62,000 goodwill help them invest, expand, and cre- card’’ economy of the subprime market paying jobs. Unfortunately, we are not ate more American jobs. It will allow to buy a house. alone. In February, the manufacturing them to avoid laying off more workers, If I am across the street from you sector lost 52,000 jobs. Over the last 7 many of whom are the most vulnerable and you have left your house and the years, manufacturing has lost more when it comes to the issue of fore- bank now has it and they knock it than 3.6 million jobs. Again, these are closure, losing their home. down 20 percent in the market, what middle-class jobs and these companies Adopting this amendment is an im- does that do to the value of your home? have stepped forward to do the right portant first step in addressing the cri- You may be in better shape. You may thing and pay health care, pensions, sis facing our Nation. It cannot wait have a fixed-rate 30-year mortgage. and provide a standard of living that for another day. We would very much You may not be losing your job or you has been unsurpassed in the world. appreciate strong bipartisan support may not be in a subprime market, but Yet the Labor Department an- for this amendment that is a very im- your house went down 20 percent be- nounced that the number of new people portant piece of addressing what is cause the house across the street that signing up for unemployment benefits happening to so many millions of is comparable went down 20 percent. last week shot up to the highest levels American families across this country. That is the reality of the world in in more than 2 years, from a seasonal I urge colleagues to join us in this bi- which we are playing, and that is why adjusted 38,000 people to 407,000 people. partisan amendment. I was so extremely pleased when Sen- In Michigan alone, right now, our un- The PRESIDING OFFICER. The Sen- ator DODD and Senator SHELBY came to employment rate is 7.2 percent. Amer- ator from Idaho is recognized. grips with this issue in a very real, ican families are in a state of crisis. Mr. CRAIG. Madam President, I hope honest, brokered bill in a bipartisan They are losing their homes, their jobs the tabling motion that the Senate has way and have brought to the floor the and, of course, we cannot ignore this dealt with has broken the logjam and bill before us. I hope the House will re- situation. We need to do everything we can move to the amendments, such spond quickly, and we can get this to possible to be able to support families, as the one we are now on, and work our the President and it actually can be- workers, and businesses that are being way through the evening. The reason I come law in our timeframe so the mar- affected. say that is because there are a good kets can begin to react. The Voinovich-Stabenow amendment many of us, well over a month ago, who Back at the time we were debating would help save many of these impor- said if you want to fix the economic the $150 billion bailout, I and Senator

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It is may be politically correct for the time Overall, I think it is a pretty good certainly a package I wish to support, and the White House and the majority package, as I have said, and I will sup- that I hope we can move in a timely party in the Congress may agree with port it as long as we do not mess it up and responsible way to conclude be- it, but when will it get to the ground with more partisan-like amendments cause it is, in my opinion, the greatest and how much will it stimulate? that might make their way to the final stimulus to the biggest problem in the I had a lot of people in Idaho say: text. economy today. LARRY, we are not going to buy any- I believe in compromises when it is In Idaho, a State that has experi- thing; we are going to pay off the cred- necessary and appropriate and when enced phenomenal growth over the last it card debt; in other words, we are not issues are as big as this issue is, when good number of years, those foregoing to move the money through the the problem is as big as this problem closures are beginning to develop. But market in a way to stimulate the econ- is, whether it is Boise, ID, or Las unlike some States, we have something omy, we are simply going to put it in Vegas, NV, or San Diego, CA, or Se- else happening. We have sawmills savings or pay off a debt. We are not attle, WA, it is a problem that deserves going down and lights going out and going to go out and buy a new Chinese to be dealt with in a timely and an ap- hard-working men and women simply or Japanese television set or anything propriate way. not having their jobs in the housing in- in the market that was not produced in Extending the carryback period for dustry because the housing industry is our market that is oftentimes the kind net operating losses will allow these flat. of consumer product that kind of companies, these builders to receive This kind of legislation, when it be- money buys today. the infusion of cash helping them stay comes law, will work in the market- So Senator ISAKSON and I said we in business and pay their employees. place to solve those problems and allow ought to go back and look at history The legislation will also help the the markets to adjust in a way we and what worked. In the seventies, we buyer, as I have mentioned. We are pro- ought to be allowing them to do, not to had a housing bubble, and it broke. The posing to provide additional money to step in and fix it with a Federal bailout housing industry said we have a 3-year tax-exempt private activity bonds au- but to allow the markets to adjust, the inventory. At that time—and I was not thority to be used to refinance buyers to adjust, and those who may here; some who serve today were here— subprime loans which will keep fami- have been victimized, in part, by the they put a tax credit out there, and lies in their homes and make it easier uniqueness of the loan packages of a they said: If you are going to be an for them, the home buyers, to buy that few years ago, to make sure they can owner occupant and you are going to home. be helped a bit. But more importantly, buy out of inventory or repo or bank- We are also going to allow taxpayers they have learned their lesson that ruptcy, you get the credit. What was who do not itemize on their Federal there is no free ride, that you cannot supposedly a 3-year glut in the market taxes, which tends to be middle-class buy a house with a credit card, that a of housing inventory turned into a 12- and lower income families, to deduct little savings and a little investment and a little fortuitousness can help you to 15-month glut, and the lights came property taxes from their Federal tax into probably one of the largest invest- on in our sawmills, workers went back liability. Frankly, that is a good deal. ments you will make in your lifetime to work, contractors went back to That makes sense in this interim pe- and historically—and it will be true to- work, and we were able to effectively riod of time. morrow as it was true yesterday—will get that economy stabilized. Finally, the last tax provision in this In December of 2007, housing starts legislation, in my opinion, is one of the be the best buy you have ever made in your lifetime and that is to own a fell to the weakest level since May of most important provisions in the bill home in a community of your interest 1991. As a whole, housing starts were because it is the Isakson concept I listened to, helped develop, bought into and your support. down 24.8 percent in 2007, the second I hope we can work this through the very early on several months ago as we largest decline on record, and housing evening. I hope we can move to final were looking at this problem, and that prices declined almost 9 percent in the passage with the quick handling of is giving taxpayers a $7,000 direct tax final quarter of 2007, the largest year- these amendments. It is important we credit to buy homes that have been to-year drop in a 20-year history of the get this work done and say to the foreclosed on, payable over a 2-year pe- index. That is what we were looking at American people: You see, when there riod of time. in February and in January and saying is a big problem out there, the Con- Foreclosed homes are a significant to this Senate in a bipartisan way: gress can respond in a responsible way. Let’s fix this problem; let’s do it now; problem in any housing market. For I yield the floor. let’s do it sooner rather than later. the reasons I explained a few moments The PRESIDING OFFICER. The Sen- It is now later, and I wish it had been ago, they drive down the prices of ev- ator from Connecticut is recognized. done earlier. But, most importantly, erybody else’s values. They are often- Mr. DODD. Madam President, I first the Congress has recognized it, or at times not maintained, they are at- thank the Senator from Idaho for his least the Senate has recognized it. tracted to vandalism and burglary, and very generous comments about the ef- Leaders such as Senators DODD and they become eyesores in communities fort. We appreciate that very much. SHELBY have recognized it and they if banks and those companies that hold His willingness to work with us will be have come to an agreement. I hope we them are not doing the due diligence to of help to see if we cannot move this stick to that agreement. make sure the lawns are mowed and legislation along. There are amendments floating the house is maintained and at least I am going to ask consent to get a around that ought not pass, and if they the house looks as if it is being occu- batting order of amendments. Madam do pass, all of us will have to reevalu- pied. President, we have already considered ate the compromise because the com- Oftentimes, if there are too many in the Durbin amendment. We are now promise, in large part, is a bipartisan the market, that simply does not hap- considering the Voinovich-Stabenow effort to solve this problem. pen. This tax credit will help clear our amendment. Following that amend- We owe it to the American people housing inventory sitting in today’s ment, Senator MURRAY and Senator this time to get it right, this time to market. I talked about the seventies. SCHUMER have an amendment, Senator fix the underlying primary problem There is no reason to believe we cannot SPECTER—I should refer to them by that is dragging the economy down, clear the inventory in a reasonable pe- number. The Voinovich amendment is threatening everyone out there in that riod of time. amendment No. 4406, the Murray-Schu- industry, in the mortgage banking in- Lastly, let me once again turn to mer amendment is No. 4397, the Spec- dustry, and we ought to get it done in Senator DODD and Senator SHELBY and ter amendment is No. 4392, the Fein- a way that makes it work. thank them. We are all partisan, but stein-Martinez amendment is No. 4393, I believed all along that a timely tar- we are all bipartisan when we see big and an amendment offered by Senator geted housing stimulus bill would focus issues that deserve a solution, that de- KYL of Arizona is No. 4407. I ask unani- on the builders and the buyers, and I mand it, and these two Senators mous consent that those amendments

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I do believe weakens the foundation of a commu- the leadership, with the possibility of the current scope of the Voinovich nity. votes on one or all these amendments amendment is too large, and they are This crisis has already rippled across this evening, with a couple more to- very agreeable and are working with our economy. If we don’t take aggres- morrow. Joint Tax in amending the language to sive steps to prevent it from becoming The PRESIDING OFFICER. Is there get it down to about $1 billion over 10 worse, it is going to take that much objection? years. longer for our neighborhoods and our Mr. BAUCUS. Reserving the right to Mr. DODD. Madam President, if I hometowns to recover. That is why I object. may, since the Senator from Montana rise this afternoon to offer an amend- The PRESIDING OFFICER. The Sen- has spoken on this amendment, I wish ment with Senators SCHUMER, CASEY, ator from Montana. to advise Members that any amend- and BROWN which I believe will help Mr. BAUCUS. I want to ask the ment that is within the jurisdiction of make this bill much stronger. Our chairman of the Banking Committee to the Finance Committee, I am going to amendment will provide an additional read those amendments off one more defer entirely to the Senator from $100 million for housing counselors, time. Montana and his colleague from Iowa who really are our front line of defense Mr. DODD. Be happy to. Presently, as to their advice and counsel. So if in the fight to prevent more families we are considering the Voinovich- you have any amendment that impacts from losing their homes. What our Stabenow amendment, No. 4406. The the Finance Committee, I am happy to amendment does is double the money next amendment would be the amend- see you, but I will turn you right over for housing counseling that is in this ment offered by Senators MURRAY and to see the Senator from Montana to bill. It builds on our efforts we started SCHUMER, No. 4397. There is then an talk about it. So I am going to make it last year. amendment offered by Senator SPEC- clear we are going to rely entirely on In last year’s omnibus budget, we in- TER, No. 4392; an amendment offered by the judgment of the Finance Com- cluded $180 million through the Senators FEINSTEIN and MARTINEZ, mittee on any amendments that affect NeighborWorks America Program for which is amendment No. 4393; and an that committee. housing counseling to help 450,000 amendment offered by Senator KYL, Mr. BAUCUS. Thank you very much. homeowners who are in trouble today. No. 4407. There are other amendments, The PRESIDING OFFICER. The Sen- As chairman of the Appropriations but these are the four or five we are ator from Washington. Subcommittee on Transportation and going to try to deal with here by set- AMENDMENT NO. 4397 TO AMENDMENT NO. 4387 Housing, I worked hard with my col- ting aside the underlying amendment Mrs. MURRAY. Madam President, I league, Senator BOND, to push for that and debating them. ask unanimous consent to set aside the money. The bill before us today would Mr. BAUCUS. I object, Madam Presi- Voinovich amendment in order to call provide the resources to help another dent. There is one in there I don’t want up amendment No. 4397. 250,000 homeowners, and our amend- on that list, so I object. The PRESIDING OFFICER. Without ment would enable us to bring the The PRESIDING OFFICER. Objec- objection, it is so ordered, and the total number of families helped tion is heard. clerk will report. through this bill to 500,000. Mr. BAUCUS. It is the Ensign amend- The bill clerk read as follows: Many homeowners today don’t know ment. Take that off the list. The Senator from Washington [Mrs. MUR- that they can get help if they get be- Mr. DODD. It is not on there. RAY], for herself, Mr. SCHUMER, Mr. CASEY, hind on their mortgage. Too many of Mr. BAUCUS. It is not on there? OK, and Mr. BROWN, proposes an amendment them don’t make contact with their good. I am okay as long as that amend- numbered 4397. lender when they miss their first payment is not on there. Mrs. MURRAY. Madam President, I ment, and too many just feel intimi- The PRESIDING OFFICER. Is the ob- ask unanimous consent that further dated or don’t trust their bank enough jection withdrawn? reading of the amendment be dispensed to make a call. But housing counselors Mr. BAUCUS. Yes. with. can help these families. They can help The PRESIDING OFFICER. Without The PRESIDING OFFICER. Without them negotiate with their lender, read- objection, it is so ordered. objection, it is so ordered. just their payment, or learn how to Mr. DODD. May I also just request The amendment is as follows: budget their expenses better. that Members let the staff know how (Purpose: To increase funding for housing The last couple of years have really much time they may need. It would counseling resources) proven that this kind of assistance help us to inform other people about On page 58, line 10, strike ‘‘$100,000,000’’ and may be the most cost-effective and im- when their amendments are coming up. all that follows through ‘‘2008’’ on line 11, portant piece of the solution to the So if you need a half hour, 15 minutes, and insert the following: ‘‘$200,000,000, to re- housing crisis, and that is why we be- or whatever to explain your amend- main available until December 31, 2008’’. lieve we must ensure that counseling ment, we can let others know about Mrs. MURRAY. Madam President, I agencies get more resources as soon as coming over and offering their amend- offer this amendment for myself and possible if we are going to turn around ments in a timely fashion. Senator SCHUMER, Senator CASEY, and this economic crisis. The PRESIDING OFFICER. The Sen- Senator BROWN. According to the Secretary of Hous- ator from Montana. I am extremely happy that we do ing and Urban Development, 96 percent Mr. BAUCUS. Madam President, I be- have a bipartisan bill now that proof the families who get counseling lieve the Voinovich amendment is the vides a solution to the problem at the avoid foreclosure. Let me say that pending amendment. I have spoken to very center of our Nation’s economic again. Ninety-six percent of the fami- that amendment and at this point can- downturn—the housing crisis—that has lies who get counseling avoid fore- not agree to it. It costs about $3 billion shaken communities across this coun- closure. That means almost all the peo- over 10 years. I have spoken to the try. We know that each month this ple who seek help from an expert will sponsors and asked them to rewrite year thousands of homeowners will see not lose their homes. that amendment and talk to the Joint their interest rates rise, and many We know the demand is there. Last Committee on Taxation to get the more will find themselves underwater year, the demand for the $180 million score down to about $1 billion, and as the housing market in their region made available for counseling in the they are working on that right now. I continues to suffer. If the Federal Gov- omnibus was twice as high as the very much hope they can get that ernment doesn’t take action, as many money available, and that happened amendment down to a billion because as 2 million American families are even though counseling agents across

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Why should a and people in those communities and who is facing a challenge today to mortgage counselor help solve not just other communities across the country know that there is help out there, and problems of individual foreclosures but are very worried. We all know that when they call, we want to make sure of declining home prices and declining foreclosures have left our neighbor- there is a knowledgeable counselor on economy and financial ripples through- hoods full of vacant homes. Families the other end of the line who can give out the world, in London and Shang- are distressed, they are in trouble, and them the help they need. hai? The answer is simple: The major- State and local governments are seeing So here is the bottom line. We know ity of those in foreclosure do not have their tax revenues drop now, even as we have millions of people who need to have their houses foreclosed upon. the needs out there are piling up. help, and we know housing counseling They have the resources, and the price These counseling agencies we provide can make a difference. So I think it of their home is such that a simple re- the funding for are telling us they need would be unconscionable not to provide financing would work. desperately more resources to help ad- this money, and I urge my colleagues In the old days—when banks were the dress this. In my home State of Wash- to support this amendment that will only issuer of mortgages, they issued ington, the number of calls to coun- put the resources out there to make them and held them—none of this selors doubled in just the first few sure families in all our communities would have happened. The mortgage months of this year, and we know that can pick up their phone, make a call, counselor from the bank would have is true across the country. But if the get the help they need, and keep their gone over to the homeowner and helped numbers aren’t compelling enough, let investment in their home and their se- him or her rework this. Madam Presi- me tell you personally about a few peo- curity for the future. dent, 60 percent of those in foreclosure ple I know who have been helped. Madam President, I have been proud or about to go into foreclosure are One of them is a man named Clifford. to work with the Senator from New prime borrowers; most of them, the He is a gentleman from my State, and York, as well as others, on this bill, majority, are in home refinancings, not I don’t want to use his last name to and I know he is on the floor and ready new homes; and many of them were protect his privacy, but he told me to speak as well. duped through no fault of their own. what happened to him. He and his fam- I yield the floor. A mortgage counselor on the scene, ily thought they had achieved the The PRESIDING OFFICER. The Sen- provided there are dollars to refinance, American dream by owning a home. ator from New York is recognized. can help that homeowner refinance. Their home represented stability. It Mr. SCHUMER. Madam President, I I ask unanimous consent that Sen- was an important investment in their am proud to rise in support of the ator KLOBUCHAR, the Presiding Officer, future. But they started having trouble amendment offered by the Senator be added as a cosponsor of our amend- with their mortgage because Clifford from Washington, the Senator from ment. lost his factory job, and pretty soon his Pennsylvania, the Senator from Ohio, The PRESIDING OFFICER. Without wife got sick and she needed surgery. and myself, and I first wish to thank objection, it is so ordered. Before they knew it, they were a cou- Senator MURRAY for her leadership on Mr. SCHUMER. I thank her for al- ple of months behind and were strug- this issue. This is crucial, and when ways being on top of things. gling with their mortgage company Senators CASEY, BROWN, and I sent her In any case, a mortgage counselor about how they could ever catch up. a request to include this money first in could easily do the job in so many They turned eventually to Consumer the appropriations bill and then in the cases, but there are none around. Fore- Counseling Northwest, got a counselor omnibus bill, Senators DODD and BOND closure counselors are skilled and who gave them help and advice, and he offered an amendment for another $100 work. There are groups throughout the told me that made all the difference. million, and by the time we got country that do this and do it well, Clifford’s housing counselors were able through with conference, $180 million with very little waste and much dedi- to help him get his payments reduced, was offered. So I thank all my col- cation. That is why Senators CASEY, and now his family has been able to leagues. We also have Senators CLIN- BROWN, and I went to Senator MURRAY pay the mortgage and keep their home. TON, MENENDEZ, and KERRY as cospon- and asked her to put this in the omni- Madam President, there are many sors of our amendment. bus bill. That is why she did it, and families like Clifford’s across the coun- Madam President, as you know, we that is why Senators BOND and DODD try—people who are teetering on the are in the midst of a massive spike in added additional money in an amend- edge and just need a little bit of help mortgage delinquency and fore- ment. We need these people. and counseling to avoid a crisis. closures. Housing prices are going I wish to tell a story. I have told it Earlier this year, at an event with down at record levels. We haven’t seen before on this floor, but I want to make Senators BOND and COCHRAN—and with housing prices go down this much since sure people hear about it. It shows the Representatives OLVER and KNOLLEN- the Depression. Our economy, the na- need for counselors. It is about Frank BERG from the House—I had an oppor- tional economy, is heading south. Yet Ruggiero, a homeowner from Ozone tunity to meet a single mom from where is the President? The President Park in Queens. Frank is a retired sub- Ohio. She told us she had fallen on very has been in Bucharest, both literally way motorman. He had a pension of hard times, which in turn led her to and figuratively. The President is lit- $28,000 a year, Social Security of $11,000 fall behind, and she soon found out she erally in Bucharest today, but he has a year—$39,000 income a year. He lived couldn’t pay her mortgage. But thanks been in Bucharest for months when it in his nice little brick house with a to help from NeighborWorks America, comes to the economy and housing. He mortgage of $1,100 a month or about she told us that she and her children is nowhere to be seen here. $12,000 a year and happily paid the didn’t lose their home and they were Foreclosure filings are soaring. They mortgage for 16 years of the 30-year able to stay there. She told me that are up 57 percent in January. From De- mortgage. when she got behind, she just got com- cember to January alone, foreclosures Then Frank got diabetes. He needed pletely overwhelmed. She told me she increased 8 percent. The 57-percent fig- $50,000 for some kind of treatment that didn’t know what to do. She said: You ure is over the year. Home foreclosure his medical plan would not pay for. In- know, this is not something they teach filings topped 1.3 million in 2007, and stead of going to the bank, which was you in school. more than 2 million are likely now. We Frank’s mistake—because banks have Well, these counselors made a dif- are all more than aware of the havoc not caused this problem; it is the inde- ference in her life and thousands of this has wreaked in neighborhoods, on pendent mortgage companies, unregu- others. We should not turn our back on Main Street, on Wall Street, and lated, that caused it—he saw an ad in families today who want to make a call throughout the Nation and even the the paper for one of these fiends—they and get help, who want to get their world. So it is amazing that with all of are not all fiends but this person was—

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00042 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.078 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2409 that said ‘‘get quick cash; refinance selors. It is not huge science. You do for these mitigation activities. Several your home.’’ not need a Ph.D. in mathematics or an states were underrepresented in the appli- Frank called, and he came over. accounting degree to be a mortgage cant pool, in part because those states had Frank said: How much more will I pay? counselor. You have to take a little not seen high rates of foreclosure up to that He said: You will pay $100 more in point. Now, however, many of the states that course and learn it. It is easy for the did not apply or receive an initial grant have January. various groups that have done this for seen a dramatic increase in home fore- And Frank says: I can easily afford years but were not faced with a flood of closures and are in desperate need of these $1,200 a month to cure my diabetes. foreclosures to do it again. We could supplemental counseling resources. That is worth it. He signed a new 30- probably prevent about 50 percent of In particular, there is a need to expand the year mortgage and sure enough, his all the foreclosures that are about to capacity of housing counselors to assist de- mortgage only went up to $1,200 in Jan- happen, maybe even more, because 60 linquent homeowners with accurate and honest information and options, budget and uary. percent are prime borrowers, and even What he was never told was that the workout plans, loan modifications, refi- some of the nonprime borrowers could nancing or responsible sales of the residence. following January his mortgage would be helped by this, depending on the It is also essential given the nature of this go up to $3,900 a month. That is easy value of the home and the cost of their crisis to ensure an ongoing, adequate level of math. That is about $47,000 a year. mortgage and the mortgage processing support for mortgage foreclosure activities. Frank’s total income was $39,000 a agreement. We urge you to fund the foreclosure miti- year. Even if he didn’t pay one nickel That is all we want to do. In this gation counseling program at no less than for the whole year for any food or heat package originally that we offered $200 million in order for housing counselors to keep pace with rising rates of foreclosure or taxes, he couldn’t pay it. about 3 weeks ago, there was $200 mil- What happened? This more relates to in rural and urban neighborhoods. Thank lion. That is not enough. Senator MUR- you for your consideration of this important the amendment of my colleague from RAY and I and others wanted to ask for request. California—the mortgage broker was $500 million, but we were asked by the Sincerely, paid a huge commission to dupe Frank. majority leader to keep the cost down PEG MALLOY, He duped him legally because there are so we offered $200 million. Madam President, NNA. no regulations. It said on the big docu- President, $200 million is not enough. DAVID C. BROWN, ment Frank signed, on page 23—I am a We need more than that. Executive Director, NNA. lawyer, but I couldn’t understand it—6 We did appropriate $180 million in the points above LIBOR after 4 months, omnibus bill, as I mentioned before, Mr. SCHUMER. It is a letter dated after this, after that—it said the mort- that Senator MURRAY put together—at yesterday, to Senator DODD and Sen- gage would go up that much, but no least her part of it. Now there is talk ator SHELBY, signed by about 100 orga- right person would understand it. It we don’t need the $180 million; they nizations that do this, saying the fol- wasn’t in plain English, and it wasn’t have not even spent that. Why give lowing: available. The mortgage broker made a them more? We respectfully request that you fund this huge fee, walked off into the sunset, Here is a letter. I ask unanimous con- program for not less than $200 million as was initially proposed by Senator Reid in S. 2636. and Frank was about to lose his home. sent the letter be printed in the The irony is, Frank was a prime bor- RECORD. They said they have received applica- rower. He had never missed a payment There being no objection, the mate- tions for $340 million in grants, twice on his mortgage, he had never missed a rial was ordered to be printed in the the $180 million Congress appropriated. payment on his credit card. His FICO RECORD, as follows: Several States were underrepresented score was above 700. He easily could rein the original applicant pool because APRIL 2, 2008. finance. Frank is a good customer for a Hon. CHRISTOPHER DODD, they had not seen high rates of fore- lending institution. But there was no Chairman, Senate Committee on Banking, Hous- closure, but now many of them have one to help him. There was no bank. It ing and Urban Affairs, U.S. Senate, Wash- applied. Of the $180 million, $130 mil- was a mortgage broker, independent, ington, DC. lion has already been spent in a short 6 who got money from a mortgage com- Hon. RICHARD SHELBY, weeks. The only reason the rest has not pany, independent, both unregulated. Ranking Member, Senate Committee on Bank- been spent is they are keeping it aside That relates to the amendment of my ing, Housing and Urban Affairs, U.S. Sen- for a very rainy day. They could spend friend from California. They are off ate, Washington, DC. that in a minute if we were to ask DEAR CHAIRMAN DODD AND RANKING MEM- into the sunset with their profits, and BER SHELBY: As you consider the current them to in report language, should this Frank is stuck and no one is there. The housing stimulus legislation we urge you to bill get that far, which I hope and pray mortgage company didn’t hold the restore essential funding for foreclosure pre- it does. mortgage, they chopped it up in 40 vention counseling. We respectfully request So we need the money. It is not much pieces and gave it to some investment that you fund this program for not less than money. We are putting $4 billion in for house that sold securities, and it is $200 million as was initially proposed by Sen- CDBG. That is worthy, but it is not as now scattered among thousands of in- ator Reid in S. 2636. important as mortgage counselors. We vestors in little tiny pieces in different As you well know, the nation is experi- are putting $6 billion in for the loss encing a serious spike in mortgage delin- degrees of reliability. quency and foreclosures. In 2006 more than carryback provisions, the FOLs, to So Frank is out there alone. If there 1.3 million homes were in default, up 42 per- help homebuilders. We can’t afford a were a mortgage counselor on the cent from the year before. Foreclosures are needed $100 million more for mortgage scene, that mortgage counselor could expected to be greatest in 2008 when one in counselors, who do more good to pre- easily help Frank refinance. three loans is predicted to end in default as vent foreclosure and provide more bang You say, where would they get the a result of mortgage payment resets on ad- for the buck than any other part of this money for refinancing? Good news; fi- justable rate loans. The crisis is widespread bill, bar none? nally, after months of prodding by my- and not just confined to the urban housing Why the $100 million was cut out—I market. Increasingly, rural borrowers are ODD was told they said they didn’t need it. self and Senator D and others, subject to harsher prepayment penalties and Fannie Mae and Freddie Mac have targeted lending discrimination so the pros- This letter proves conclusively they made $200 billion available for these perity and stability of rural counties, like need it. It is now in the RECORD. I urge kinds of mortgages. their urban and suburban counterparts, is my colleagues to look at it. We des- But the dollars are not going to walk becoming jeopardized. perately need it. over to Frank’s house in Ozone Park, The FY 2008 HUD Appropriations Act pro- I hope we will have bipartisan sup- Queens, and say: Here we are. You need vided $180 million for use by the Neighbor- port for this amendment. Senator a mortgage counselor. And that is what hood Reinvestment Corporation to provide BOND, who has been a leader on these the amendment of the Senator from mortgage foreclosure prevention counseling. issues, supported the amendment, with Neighborhood Reinvestment received appli- Washington and the Senator from cations for $340 million in grants to combat Senator DODD, to put in the original Pennsylvania and the Senator from the foreclosure crisis. With only two weeks $200 million. This is hardly a partisan Ohio and my amendment does. It sim- to apply for funds, demand was nearly twice issue. This is not a bill that costs $15 ply provides more mortgage coun- the $180 million that Congress appropriated billion. Another $100 million is not

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00043 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.080 S03APPT1 ccoleman on PRODPC75 with SENATE S2410 CONGRESSIONAL RECORD — SENATE April 3, 2008 going to make that much difference, sive subprime lending has occurred much too This is a community because they are especially when we are doing $6 billion often. As a result, roughly 2.2 million Amer- mainly working class, not necessarily for the loss carrybacks, and $4 billion ican households have been projected to lose college graduates, who are eager pawns for CDBG. I urge my colleagues to sup- their homes, and as much as $164 billion due for bad actors in the mortgage and to subprime mortgage foreclosures. port it. It is a much needed amendment Many of the provisions of the amendment lending business. that will do tremendous good. It will are consistent with NAR’s ‘‘Responsible Now, having said that, not all bro- help the Frank Ruggieros and the mil- Lending Principles.’’ We believe our prin- kers are bad actors; many of them are lions of others like him to keep their ciples provide an appropriate basis for legis- honorable professionals. The fact is, homes. It will prevent housing prices in lation that would help eliminate irrespon- this is a profession. This is what you do their neighborhoods and in the country sible practices such as making loans without as a mortgage broker, as a lender. from declining more than they have to. sufficient regard to the borrower’s ability to You should have standards. You repay the loan and avoid foreclosure. should have to pass a test. You should It will stabilize mortgage markets and The National Association of REALTORS thus stabilize many of our largest supports responsible lending, mortgage serv- have to get a license, and you should banks and institutions, both here and icing, and appraisal practices. We support have to renew that license periodically. abroad. this amendment that will help close the door How else can you be able to go out, get So this little amendment is like on abusive lending practices. on a phone, call people and say: Look, Mighty Mite—it is small, it is at the I wish to say on behalf of the cospon- I can refinance your house at 4 percent. center, but it has tremendous power to sors of this amendment and myself, You bring in the eager homeowner, and ripple outward and affect us positively. thank you to the National Association then the reality is something very dif- I urge my colleagues on both sides of of Realtors. ferent. the aisle to support it so we might We are very grateful for the support. These bad actors must be stopped. strengthen this bill. The fact is, mortgage fraud complaints There is only one way to stop them; I yield the floor. have jumped more than 700 percent that is, have minimum Federal stand- The PRESIDING OFFICER. The Sen- over the last 5 years, from 5,623 in 2002 ards, allow the States—and in my ator from California is recognized. to 46,717 last year. Mortgage fraud State it would be the Corporation De- Mrs. FEINSTEIN. Madam President, complaints in my State, California— partment that would do this, that sets I do not see anyone on the Republican Senator BOXER’s and my State—have up the licenses, that sets up the train- side on the floor, although if they are increased 400 percent over the last 5 ing. And individuals would go through coming, now would be a good time. I years, from 1,143 in 2002 to 4,060 last the training, they would have their believe Senator MARTINEZ and I are up, year. background checked, they would get a after a Republican, for an amendment. All you have to do is take a look at license, and the license would go up for I am prepared to proceed. the jump in these complaints and the renewal annually. Madam President, although I spoke jump in convictions to know there are Some object to it. My goodness, at- about this amendment this morning, I scams going on and we need to stop torneys have to renew their licenses. wish to speak about it again. This them. The best way to stop them is to Why not someone who puts out mort- amendment is called the SAFE Mort- license these brokers and lenders so we gages which is very often everything gage Licensing Act, ‘‘licensing’’ being prevent the 25-year-old scam artist—I an individual owns? Why is it not im- the dispositive word. I am very proud do not pull this out of the air; this is a portant for them to have a license and to work with this with Senator MAR- fact—who can come in, get on a tele- have that license renewed? TINEZ of Florida. He is on his way and phone, and tell lenders or tell individ- Once again, I would like to tell you he will be making a statement fol- uals what they can do to refinance about this family. I do so because I met lowing mine. This amendment is co- their house and do it all in a bogus them in Los Angeles last week. This is sponsored by Senators BOXER, OBAMA, manner. the Simmons family. Look at their DOLE, DURBIN, SALAZAR, and CLINTON. We have 10 States that are mortgage house. It is not a mansion. It is a one- One of the things I didn’t realize is fraud hot spots in the United States. story, well-kept stucco home with how big scams are a part of the They are California, New York, Texas, flowers planted, bushes trimmed. subprime market. I remember picking Florida, Georgia, Utah, Illinois, Indi- The gentleman, Mr. Simmons, was an up a USA Today newspaper in January ana, Ohio, and Michigan. These are employee of Northrop Grumman for 20 and the headline reading, ‘‘Housing mortgage fraud hot spots because of years; his wife employed as a food Scams Rising, FBI Says. 2007 Convic- the number of complaints and convic- checker at Alpha Beta for 26 years. tions More Than Doubled.’’ tions of mortgage fraud coming from They have owned this home for 39 As we began to look at this, we found these States. So the time has come to years. Mr. Simmons had a stroke. They there was a very real problem. The do something about it. found they needed cash. They received problem is that there is but a thin Now, there are some people in this a cold call, a phone call from some- patchwork of State regulations. They body who say: Do not pass this bill body. They wanted $500,000, to be able vary. Some do not have any. Some are today; put it in regular order. Let it go to get a loan, take this out, use it for pretty good; some are not so good. So to the committee. medical expenses. we put together this bill, Senator MAR- Let it go to the committee, and it They offered them a $629,000 loan TINEZ and I, and I am very proud to say will be another year before this bill is with $25,000 cash back, 4.5 percent in- it is supported by the National Asso- before us. And I will bet any amount of terest rate, and monthly payments of ciation of Mortgage Brokers, by the money the mortgage fraud will con- $2,000. Now, they are not college grad- Conference of Bank Supervisors, by the tinue because all of the conditions are uates. These are working people who mayor of Los Angeles, and by the Na- ripe for it. did everything they could to buy a tional Association of Realtors. I wish The only way to handle it is to pass home, who have kept that home up for to read, if I might, the realtors letter this bill so we set into motion some 39 years in good condition, and who because I think it is important to the minimum national standard and allow today are going to lose that home. discussion. the States to carry out this minimum And here is why: There was no cash On behalf of over 1.3 million members of standard and add to it anything the back, different from what they were the National Association of REALTORS, I States might want. promised. The interest was 11.2 percent want to share our views on the SAFE Mort- As I say, the 1.3 million-member Na- on this loan. The monthly payments gage Licensing Act offered by Senators Fein- tional Association of Realtors is in were not $2,000 as they were told; it was stein and Martinez. support of this amendment. And the $5,300. When they had to make the first We believe this amendment will go far to- group that regulates them is in support payment, they called the broker and wards preventing another subprime market of the amendment as well. Today, failure that would further erode confidence said: You told us $2,000. Why is it in the Nation’s housing finance system. subprime mortgages are 30 percent of $5,300? While responsible subprime lenders have all the mortgages in the largest State The broker said: It is only that for 4 played an important role in helping millions in the Union. Thirty percent of every months, to draw down the interest of consumers achieve homeownership, abu- mortgage is subprime in California. rate.

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00044 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.081 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2411 They said: Ok, I guess we can do it that equity, building that equity over in the Nation’s housing finance system. for 4 months. It was not only for 4 the years, being able to finance retire- While responsible subprime lenders have months, it was for the length of the ment from the equity in a home when played an important role in helping millions mortgage. And the broker walks off they choose to sell it is such a big deal. of consumers achieve homeownership, abusive subprime lending has occurred much too with a $20,000 fee. And to have bad actors, flim-flam art- often. As a result, roughly 2.2 million Amer- Now, in my book this is fraud. There ists going around suckering in people ican households have been projected to lose are some who say: Oh, people get the makes me angry. So I would hope this their homes and as much as $164 billion due papers. Let them read through them. body, on behalf of Senator MARTINEZ to subprime mortgage foreclosures. You have bought a home, Mr. Presi- and me, will be willing to pass this leg- Many of the provisions of the amendment dent. I have bought a home. I did not islation today. are consistent with NAR’s ‘‘Responsible read all of the fine print on all of the I ask unanimous consent to add Sen- Lending Principles.’’ We believe our principles provide an appropriate basis for legis- documents. I depend on the word of the ator KLOBUCHAR as a cosponsor. lation that would help eliminate irrespon- broker. And I believe most people do The PRESIDING OFFICER (Mr. sible practices such as making loans without that. WHITEHOUSE). Without objection, it is sufficient regard to the borrower’s ability to Now, I am not a lawyer. I do have a so ordered. repay the loan and avoid foreclosure. college degree. What if I only had a Mrs. FEINSTEIN. I ask unanimous The National Association of REALTORS high school degree or not even that? I consent to add to the RECORD letters supports responsible lending, mortgage serv- worked all my life. I do not understand from the State Bank Supervisors and icing and appraisal practices. We support the fine print. This is why you have the National Association of Mortgage this amendment that will help close the door professionals representing you to tell Brokers in support of this amendment. on abusive lending practices. There being no objection, the mate- Sincerely, you the truth. RICHARD F. GAYLORD, There is a penalty—should be—if rial was ordered to be printed in the 2008 President. Record, as follows: they do not tell you the truth. Buying Mrs. FEINSTEIN. I yield to the dis- a home should not be a scam. Refi- CONFERENCE OF tinguished Senator from Florida, Mr. nancing a home should not be a scam. STATE BANK SUPERVISORS, MARTINEZ. So we then went on the Internet. Let’s Washington, DC, April 3, 2008. DEAR SENATOR: The Conference of State The PRESIDING OFFICER. The Sen- see what companies advertising to em- ator from Florida is recognized. ploy brokers say. And here is one of Bank Supervisors (CSBS) supports the Se- cure and Fair Enforcement for Mortgage Li- Mr. MARTINEZ. I thank the Senator them. Here is the source. We accessed censing Act of 2008 (S. 2595 the SAFE Mort- from California. What a pleasure it is it on February 27 for brokers: No expe- gage Licensing Act of 2008) introduced by to work with the Senator on this bill, rience, education, or exam is nec- Senators Feinstein and Martinez. this important piece of legislation. She essary. No experience, education, or The SAFE Mortgage Licensing Act of 2008 has stated it so well. exam is necessary. will help protect borrowers from unscrupu- I want to perhaps go over a few items They go on to say to the company: lous lenders and brokers and improve trans- I think ought to be also said. I know You can hire unlicensed sales agents to parency in the mortgage lending process. CSBS encourages Congress to include this bi- when I first became Secretary of Hous- originate loans under your company li- partisan reform in a legislative package to ing and Urban Development I was cense. address the current mortgage crisis. shocked at the role, ever-increasing I do not think they should be able to State regulators recognize that this reform and prominent role, that mortgage bro- do that because it is these people who effort builds on state initiatives to mod- kers play in the home purchasing proc- pick up the phone and call the home- ernize our mortgage regulatory system. Spe- ess. owners and offer that second mortgage. cifically, the legislation establishes a na- When there is such a close working Particularly in the subprime market, tionwide mortgage lending database that co- relationship with a customer—there where many people have very little, if ordinates with the Nationwide Mortgage Li- censing System currently being operated by are issues that deal with premiums, any, downpayment, this presents enor- CSBS and the American Association of Resi- there is the question of fiduciary re- mous difficulty. dential Mortgage Regulators (AARMR). sponsibility—all of these issues arise Consequently, we have a real prob- By January of this year, 42 state agencies because of that relationship, and often- lem. I hope this amendment passes representing mortgage regulators in 40 times it is the closest point of contact today. Perhaps some people do not like states have signed a statement of intent in- with the customer. And many times this or that. It can be worked out in dicating their commitment to participate in they are the most vulnerable of cus- the CSBS/AARMR Nationwide Mortgage Li- conference. But when we are passing tomers. this bill, we ought to pass something censing System. Eventually, CSBS and AARMR expect all 50 will transition onto the So that is why I am delighted to join that says once and for all the Federal System. The System successfully began op- with the Senator from California in the Government is willing to step in, set erations on January 2, with 7 states launch- Safe Mortgage Licensing Act. I hope, minimum standards; you, the State, ing the system. An additional 9 states will be like her, that we can get at it and talk set up your laws, set up your licensing on by the end of 2008 with the rest of the about it, and I would like for us to requirements. These are the minimum states rolling on in 2009 and beyond. work with the managers of the bill. I standards, and you can add to them Again, we strongly encourage you to in- know there are some concerns that the and see that those people, mortgage clude the provisions of the SAFE Mortgage Senator mentioned perhaps that can be Licensing Act in legislation designed to re- brokers and lenders, are licensed. solve the current mortgage crisis. resolved in conference. But I look for- The legislation also creates a data- Sincerely ward to working with the bill man- base so that I, Joe Doe, about to buy a NEIL MILNER, agers toward the resolution of those house, can go into my computer, if I President and CEO. small issues that may remain. have one, and see that my mortgage With foreclosures at record levels and broker is licensed, know that he has NATIONAL ASSOCIATION OF REALTORS, home prices in steady decline, we must been to school, know that he has been Washington, DC, April 3, 2008. act quickly to restore consumer con- informed of ethics, know that he does Hon. DIANE FEINSTEIN, fidence in the housing market. Florida not have a felony background right U.S. Senate, Washington, DC. has the dubious distinction of ranking now, you can have a felony back- Hon. MEL MARTINEZ, No. 2 in the Nation in foreclosures. In ground—and know that his license is U.S. Senate, February, Florida had one foreclosure renewed annually so he is kept up to Washington, DC. filing for every 254 households, up more date on ethics and best practices. DEAR SENATORS FEINSTEIN AND MARTINEZ: than 7 percent from January’s rate— This industry, real estate, because it On behalf of over 1.3 million members of the truly frightening. controls such a large proportion of National Association of REALTORS, I want Last year, more than 2 percent of most people’s wealth, their homes— to share our views on the SAFE Mortgage Florida’s households entered some Licensing Act amendment offered by Sen- their home is their rock. Everything ators Feinstein and Martinez. form of foreclosure, and that is a 124- flows from that home ownership. And We believe this amendment will go far to- percent increase from the year of 2006. for most people buying a home is truly ward preventing another subprime market Many of these foreclosures can be at- the American dream. Owning, having failure that would further erode confidence tributed to predatory lending practices

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00045 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.082 S03APPT1 ccoleman on PRODPC75 with SENATE S2412 CONGRESSIONAL RECORD — SENATE April 3, 2008 of unscrupulous mortgage brokers. And gage loan originators employed by na- amount contained in paragraph (1) shall be while the mortgage broker industry tional banks within 12 months of this increased by an amount equal to— ought to be commended for supporting legislation being enacted. ‘‘(A) such dollar amount, multiplied by this bill, and to my own profession of The SAFE Act has been endorsed by ‘‘(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar law, there are always bad actors out mortgage regulators in 40 States, and year, determined by substituting ‘calendar there. That is what this is getting at. the National Association of Realtors year 2007’ for ‘calendar year 1992’ in subpara- Let me point out, in the State of agrees with and supports this amend- graph (B) thereof. Florida we have the dubious distinc- ment. Any increase determined under the preceding tion of leading the country when it I thank the Senator from California sentence shall be rounded to the nearest comes to foreclosures. This is the list for working with me on this important multiple of $1,000.’’. of the top cities across the country. piece of legislation. We need to do (b) CONFORMING AMENDMENT.—So much of And you can see why the Senators from more to empower families who have subparagraph (A) of section 121(b)(2) of the Florida and California are here talking worked hard, who look to home owner- Internal Revenue Code of 1986 as precedes about this. We have been hit hard. ship as an important piece of their clause (i) thereof is amended to read as follows: No. 1 leading the country is Cape American dream. While there are de- ‘‘(A) LIMITATION FOR CERTAIN JOINT RE- Coral-Fort Myers, FL, at 5.8 percent. tails to be worked out, I look forward TURNS.—Paragraph (1) shall be applied by Then we have No. 2, which is Port St. to working with Chairman DODD and doubling the dollar amount specified in such Lucie, FL, at 3.9 percent. Then Miami, Ranking Member SHELBY to see if we paragraph if—’’. Miami Beach, and Kendall at 3.1 per- cannot eliminate any concerns that (c) EFFECTIVE DATE.—The amendments cent; Fort Lauderdale, Pampano, Deer- might be out there. We don’t want to made by this section shall apply to years be- field Beach at 3 percent. And then after throw the net so wide it may ensnare ginning after December 31, 2008. a couple of California communities and people for whom we are not intending Mr. KYL. Mr. President, this amend- Ohio, we have Naples-Marco Island, FL, this to be their concern, but we also ment is actually very simple, and I at 2.7 percent. This is concentrated in are committed to getting this done. think it will be another one of the some of the better areas of Florida This is an important step forward. I things that we can do to help promote where home prices have been in a dra- look forward to moving the process home ownership and the transfer of matic rise for many months and years along. property to make it less expensive for in the recent past. I appreciate working with the distin- people and, frankly, to advance a pol- The current system provides little guished Senator from California. icy that we should have advanced a coordination between State regulators I thank the Chair, yield the floor, long time ago. and, therefore, exposes consumers to and suggest the absence of quorum. Most people know under current law predatory loan originators who have The PRESIDING OFFICER. The they can exclude $250,000—for a mar- crossed State lines. The creation of a clerk will call the roll. ried couple it is $500,000—from the cap- nationwide system will eliminate bad The legislative clerk proceeded to ital gains when they sell their prin- actors by keeping track of those who call the roll. cipal residence. In other words, even violated the law, had their licenses re- Mr. KYL. Mr. President, I ask unani- though you may make $250,000 on the voked or failed to fulfill appropriate mous consent that the order for the value of your home when you sell it, educational requirements that will quorum call be rescinded. that is excluded from the capital gains benefit families and eventually the The PRESIDING OFFICER. Without that would otherwise have to be paid. marketplace. objection, it is so ordered. You are limited by some require- It would give home buyers more Mr. KYL. Mr. President, I ask unani- ments. You have to live in the home transparency and more peace of mind mous consent that the pending amend- for 2 years. You have to own and oc- as they make one of the most impor- ment be laid aside for the purpose of cupy the home in 2 of the previous 5 tant decisions and, frankly, maybe the my offering an amendment. years from the sale. But you are able largest financial decision of their lives. The PRESIDING OFFICER. Is there to exclude from the capital gains The SAFE Mortgage Licensing Act objection? $250,000. The problem is, as we found would, for the first time, establish a Without objection, it is so ordered. out with the alternative minimum tax, national professional licensing stand- AMENDMENT NO. 4407 TO AMENDMENT NO. 4387 inflation can drive the value of this ex- ard for mortgage brokers and lenders. Mr. KYL. Mr. President, I ask that clusion down. This would ensure that all mortgage amendment No. 4407 be called up. I be- So what this amendment does, sim- professionals are trained in Federal lieve it is at the desk. ply, is index the exclusion for inflation. lending laws, ethics, consumer protec- The PRESIDING OFFICER. The It is very simple. I cannot imagine it tion, and subprime market lending. clerk will report. would be controversial. What this The legislation also would create a na- The legislative clerk read as follows: would do, of course, is to preserve the tional database that consumers can use The Senator from Arizona [Mr. KYL] pro- value of this deduction that we have all to verify the credentials of the brokers poses an amendment numbered 4407 to taken advantage of for the future and and lenders. This amendment would re- amendment No. 4387. thereby encourage individuals to pur- quire all residential mortgage loan Mr. KYL. Mr. President, I ask unani- chase a new home. Of course, much of originators to be licensed, provide fin- mous consent that reading of the what we are trying to do in this legis- gerprints, and a summary of work ex- amendment be dispensed with. lation is encourage home ownership perience, and consent to a background The PRESIDING OFFICER. Without but, more than that, encourage people check. objection, it is so ordered. to purchase homes or be able to trans- States are given 12 months to develop The amendment is as follows: act the sale and purchase of a home. licensing standards to ensure that ap- (Purpose: To amend the Internal Revenue There is another point I want to plicants meet the following minimum Code of 1986 to adjust for inflation the dol- make, and it is important because criteria: No felony convictions; no lar limitation for the principal residence some people have been caught in an in- similar license ever revoked; a dem- gain exclusion) nocent situation with regard to the onstrated record of financial responsi- At the end add the following: foreclosures we are concerned about. bility; successful completion of edu- TITLE l—PRINCIPAL RESIDENCE GAIN People do not buy homes, for the most cational requirements; and passage of a EXCLUSION part, to make money. Now, it is true written exam. If this does not occur, SEC. l01. INFLATION ADJUSTMENT FOR PRIN- there were speculators in this red hot the Housing and Urban Development CIPAL RESIDENCE GAIN EXCLUSION housing market and, obviously, we are Secretary is empowered to develop the DOLLAR LIMITATION. in no mood to bail out speculators. But national database and license, gener- (a) IN GENERAL.—Section 121(b) of the In- most people buy a home to raise their ternal Revenue Code of 1986 (relating to limi- ating revenue for its implementation tations) is amended by adding at the end the family, and they live in the home. through fees to license applicants. The following new paragraph: This exclusion, of course, requires Federal Reserve, Treasury, and FDIC ‘‘(4) INFLATION ADJUSTMENT.—In the case of they live in the home for 2 years out of must also register all residential mort- any calendar year after 2008, the dollar 5 years before the sale. So we are not

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00046 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.084 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2413 talking about the situation where bro- So I would pause at this point to see TITLE l—HURRICANE-RELATED kers would buy a home and then wait a if anyone has any objection or ques- CASUALTY LOSSES couple months and flip it and sell it tions about it. I will yield the floor SEC. l01. USE OF AMENDED INCOME TAX RE- and make a big profit. This is for le- otherwise. But I would love the oppor- TURNS TO TAKE INTO ACCOUNT RE- CEIPT OF CERTAIN HURRICANE-RE- gitimate folks who bought a home to tunity to get into a discussion about it LATED CASUALTY LOSS GRANTS BY live in and have their family live in it and see if there is any concern on any- DISALLOWING PREVIOUSLY TAKEN and then sold it. body’s part about it. CASUALTY LOSS DEDUCTIONS. A large portion of a capital gain on a The PRESIDING OFFICER. The Sen- Notwithstanding any other provision of home is now inflation. That is the hard the Internal Revenue Code of 1986, if a tax- ator from Connecticut. payer claims a deduction for any taxable reality of it. I do not think any of my Mr. DODD. Mr. President, if I may, year with respect to a casualty loss to a per- colleagues believe it should be subject let me say to my friend from Arizona, sonal residence (within the meaning of sec- to taxation. Unfortunately, inflation I do not know. I have asked Senator tion 121 of such Code) resulting from Hurri- now is around 4 percent. It is growing BAUCUS and Senator GRASSLEY, with cane Katrina or Hurricane Rita and in a sub- faster than that. Therefore, for the fu- matters involving tax policy, to come sequent taxable year receives a grant under ture I think this is an important over and defer to them. Public Law 109-148, 109-234, or 110-116 as reim- amendment as well. Mr. KYL. I appreciate that. bursement for such loss from the State of So this amendment protects home- Louisiana or the State of Mississippi, such Mr. DODD. This is within their juris- taxpayer may elect to file an amended in- owners from unexpected changes in diction, and I just do not feel com- come tax return for the taxable year in family status, employment, and health. petent to address this as an issue. I am which such deduction was allowed and dis- It would help elderly taxpayers who told by staff we are waiting for a score allow such deduction. If elected, such amend- sell their home and choose to move on this, how you would score it. That ed return must be filed not later than the into less expensive housing during much I do know, that you have to score due date for filing the tax return for the tax- their retirement. Frequently, there is a tax amendments. So I will let them able year in which the taxpayer receives capital gain on their longtime resi- come over and make a case for or such reimbursement or the date that is 4 dence, and it would help them avoid months after the date of the enactment of against when they arrive. They should this Act, whichever is later. Any increase in having to pay a capital gains tax. be here at some point to respond to the Federal income tax resulting from such dis- It clearly simplifies tax administra- Senator from Arizona. I apologize to allowance shall not be subject to any penalty tion and record keeping. It would pro- him, but I just do not feel— or interest under such Code if such amended vide people with a much easier situa- Mr. KYL. Mr. President, I appreciate return is so filed. tion for acquiring a home. that. We have an estimated cost, but TITLE l—GO ZONE PROPERTY Mr. President, there are some addi- perhaps we should wait until my col- SEC. l01. WAIVER OF DEADLINE ON CONSTRUC- tional arguments that I could make. leagues get here. I will be happy to dis- TION OF GO ZONE PROPERTY ELIGI- Let me cite a couple statistics. Then I cuss that aspect of it as well. BLE FOR BONUS DEPRECIATION. (a) IN GENERAL.—Subparagraph (B) of sec- am hoping I can perhaps engage some With that, if there is no further dis- of my colleagues in a discussion to see tion 1400N(d)(3) of the Internal Revenue Code cussion, then I will be happy to yield of 1986 is amended to read as follows: if there would actually be a need to the floor. But I certainly hope my col- ‘‘(B) without regard to ‘and before January vote on this amendment or whether we leagues will take a look at this amend- 1, 2009’ in clause (i) thereof,’’. could agree to it. ment and join me in supporting this (b) EFFECTIVE DATE.—The amendment Let me cite a couple statistics. Usu- amendment for the benefit of home- made by this section shall apply to property ally we do not like to get into this owners all over the United States of placed in service after December 31, 2007. much detail, but I think in this case it America. Ms. LANDRIEU. Mr. President, I makes sense. We have seen housing Mr. President, I yield the floor. really appreciate the cooperation of prices now fall from what some call The PRESIDING OFFICER. The Sen- the manager because this is a very im- their bubble highs—the value that was ator from Louisiana. portant amendment for the gulf coast. driven up so dramatically, and now it Ms. LANDRIEU. Mr. President, I ask It is an amendment I offer with the has fallen. Alan Greenspan famously unanimous consent to lay the pending support of the Senators from Mis- called it the froth in the housing mar- amendment aside so I can offer the sissippi—Mr. COCHRAN and Mr. WICK- ket. amendment I spoke on earlier today. ER—as well as Senator VITTER from But housing prices are still much The PRESIDING OFFICER. Is there Louisiana. higher than they were in 1997. I think objection? We have been waiting for some time about my State. I think about the Sen- Without objection, it is so ordered. now for some housing bill to get to the ator from California, her State, and floor of the Senate where we could AMENDMENT NO. 4389 TO AMENDMENT NO. 4387 those States where property values ap- offer a small number of amendments Ms. LANDRIEU. Mr. President, I call preciated, but a lot of that apprecia- that are essential to give aid during up amendment No. 4389 for its imme- tion is now due to inflation. the ongoing housing crisis that exists diate consideration. Here are a couple of interesting stats: in the gulf today. The median single-family home price The PRESIDING OFFICER. The I say to the Presiding Officer, as you in 1997 was $146,000. A decade later, in clerk will report. know, as you remember because you 2007, the median home price was The legislative clerk read as follows: have been down to Louisiana, to New $247,200—over $100,000 more in just 10 The Senator from Louisiana [Ms. Orleans particularly—and we are very years. The median home price in Cali- LANDRIEU], for herself, Mr. COCHRAN, Mr. grateful for the support that so many VITTER, and Mr. WICKER, proposes an amend- fornia 10 years ago was $186,500, rough- ment numbered 4389 to amendment No. 4387. Senators have given—throughout the ly. In February of 2008 it was $409,240— gulf coast, literally from Mobile to in other words, an increase of $222,750. Ms. LANDRIEU. Mr. President, I ask Beaumont, and particularly from Bi- So, very clearly, there is a huge in- unanimous consent that reading of the loxi to Cameron Parish, there is still a flation factor going into the value of amendment be dispensed with. tremendous crisis in housing and re- these homes, and we are going to have The PRESIDING OFFICER. Without construction. to pay capital gains tax on that above objection, it is so ordered. I am not going to belabor the point— the $250,000 level if we do not index The amendment is as follows: only to say that I have had Secretary that amount for inflation. (Purpose: To amend the Internal Revenue Chertoff on the record as late as 3 So I could go on. I think it is so sim- Code of 1986 to allow use of amended in- weeks ago, Chief Paulson today, the IG ple. It is a proposition that I would as- come tax returns to take into account re- of the Homeland Security Committee ceipt of certain hurricane-related casualty sume would have support from both loss grants by disallowing previously taken today in Homeland Security saying the sides of the aisle. There is nothing po- casualty loss deductions, and to waive the Stafford Act was not intended to han- litical about this, of course, and it deadline on the construction of GO Zone dle catastrophic disasters and that would certainly help a lot of our home- property which is eligible for bonus depre- FEMA has yet to make any substantial owners at a time when we are search- ciation) progress in getting ready to handle cating for ways to do exactly that. At the end add the following: astrophic disasters. They have made

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00047 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.087 S03APPT1 ccoleman on PRODPC75 with SENATE S2414 CONGRESSIONAL RECORD — SENATE April 3, 2008 moderate progress. They have made was worth $500,000, and your insurance have to start your project by a certain modest but not substantial progress. has refused to pay you, it is not a time and finish by a certain time. The Our people need substantial every- whole lot of money to rebuild your problem is, the recovery has been so thing. They needed it yesterday. They house with labor costs that are going much slower than everybody antici- need it today. This amendment will up at 20 percent or more since the pated because we have never really help them get a little bit of it now. My storm. gone through this catastrophic situa- amendment basically will allow the So what is happening now is, when tion. Senator COCHRAN is right when he people of Mississippi and Louisiana and they receive these grants—and under says we should eliminate the start Texas and Alabama—those who are af- the tax law, they can take a casualty date. We are not asking for an exten- fected by Katrina, Rita, and Wilma, deduction. If they did that last year, sion, so technically it really shouldn’t which was one of the worst seasons of what happens this year—by April 15, add money. We are not asking to ex- hurricane disaster, in 2005—to basically which is in about 2 weeks—for that tend it to any time or to let a lot of receive the aid we have already sent to family who makes $75,000 a year—let’s new people come in. But for the same them through the community develop- say the Smith family—let’s take the universe, just don’t make them start ment block grants. In Louisiana we Jones and Smith families. They make their project the way it said, but let call it the Road Home Program. These about the same amount of money. One them end it. That is also in my amend- programs were designed at the State family this year who took the casualty ment. So we will solve two big prob- level, but they were funded by us. In loss deduction is going to have to pay lems: We will help our businesses, Mississippi it is called the Mississippi $24,000 in taxes. The family only makes many small businesses, get the full Homeowner Assistance Program. It has $75,000, if they are lucky enough to benefit of what we wanted to give them literally sent direct lifesaving aid to have the job they had before Katrina anyway, actually work for them, and over 150,000 families in Louisiana and and Rita struck. we will make this grant program work about probably 50,000 to 75,000 in Mis- Now, this amendment is not cheap. I for them. sissippi. I do not have the Mississippi make no bones about it. It is about $1 Now, let me be clear. When we pass numbers. billion. It can be done on an emergency this amendment, which I hope we will My amendment will help to correct basis. This most certainly is an emer- do by unanimous consent or get a large this great injustice that is occurring gency in housing. vote on it because I think we really now. We did not intend for this to So that is the essence of the amend- should do it in a bipartisan way, the occur, but it is going to occur if this ment. The Finance Committee is well people to whom we give this tax amendment or something like this aware of it. We have been talking break—this will lower their rate to amendment is not adopted. about it with them for over a year now their regular rate they will have to We sent under a design, basically de- actually. We have just been waiting for pay. They have to go back and reim- signed by this Congress, an approxi- a time to get it fixed. burse the Treasury for that deduction mately $150,000 grant to homeowners to Now, again, this is an emergency. It they took. So, in other words, we are help close the gap between what their is a real problem. It is almost April 15. not allowing them to take two bene- insurance covered and the total cost of We have, I would argue, families in fits. They are going to have to lower their loss. As I have said many times, America who need the most help on their tax this year, eliminate the tax homes that were worth $1 million or $2 housing. I feel very sorry for people on Road Home, and go back and pay million were totally destroyed, as well who are losing their homes in fore- the Federal Government the benefit as homes that were worth $50,000. closure, and I am not even going to try they took. Their CPAs will have to fig- Many of these homes were not in the to say whether they are suffering more ure that out. But if we don’t do this, flood plain. They were not required to than the people in the gulf south. All I there will be people who will be stuck have flood insurance. They were de- can say is the people in the gulf south with a tax bill they could not possibly stroyed by the failure of a Federal didn’t take out any adjustable mort- pay, and they shouldn’t have to; they levee system that collapsed, as well as gages. The people in the gulf south, have suffered enough. historic highs of flooding and water most of them had already paid their 30- So I know the Senator from Con- coming from Hurricane Rita, which year mortgage. They own their house necticut, the chairman of the Banking was one of the toughest and most ag- scot-free. They paid for it. Now they Committee, knows full well what is gressive storms on record. have lost everything, and we are trying happening down in the gulf. This is So the long and short of it is, when to help them, but in my view, every- only one thing we are attempting to we sent this $150,000 grant—we are still thing we try to do to help them kind fix. I have several other amendments I in the process of sending it. It has been of—sometimes it turns out to not help intend to offer, if my colleagues would very slow, very frustrating, and just so them as much as we would like. There allow me, at an appropriate time, but aggravating to so many people who are is no textbook. There is no Stafford this is the amendment I wanted to get holding on by their fingernails to try Act. There is no way to help people in. April 15 is right around the corner, to save what equity they had in their who lost everything because of levees and they need to know what our inten- homes, which, as you know, for most that should have held but didn’t. We tion is. This will help so many people. American families that is their per- are making it up as we go along, and I appreciate it. I will ask for this sonal wealth. I think 95 percent of all this is part of my job here to do this. amendment to be voted on when the Americans have almost 100 percent of So we have to fix this, and that is what first group, however large that group their entire personal wealth tied up in this amendment will do. I am very is—2, 5, 6, 10—whenever the first group their home. So this issue of helping proud that the Senators from both of amendments is voted on, I would homeowners in the gulf coast is lit- States have agreed to cosponsor this. like for this to be included in that erally trying to help restore to them a On behalf of Senator COCHRAN, at his group. I ask unanimous consent for lifetime of work. In some instances, request—and I am happy to support that to be the case. generations of work have been lost in it—there is also a small change in this The PRESIDING OFFICER. Is there this storm. amendment which will allow this de- objection? Now, we are not making everybody duction—this goes on the accelerated Ms. LANDRIEU. Mr. President, I will whole. Believe me, there has been depreciation piece that we gave to help repeat for the Senator from Con- enough pain in the gulf coast to go some of our businesses. We lost 20,000 necticut that I will be happy to take around for a century or more. But what businesses that weekend. I think Mis- this amendment whenever, but I would happens is, when they receive their sissippi lost 1,800. That is a lot of busi- like it to be voted on in the first group $150,000 grant—and most people have nesses to lose over a weekend. To help of amendments, however big that group received an average of about $65,000. those businesses and people get back is and whenever that group will be The authorized level is $150,000, but you on their feet, this Congress extended to taken up. have to qualify for that amount. So the them a way to accelerate their depre- Mr. DODD. Mr. President, if I may, average is about $60,000, which sounds ciation, but we said: The way to get reserving the right to object, I would like a lot of money, but if your house that accelerated depreciation is you say to my colleague, this is a tax

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00048 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.088 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2415 amendment, and I am very carefully amendment No. 4401 and ask for its im- gages, credit cards, auto loans, payday deferring any questions regarding tax mediate consideration. loans, and income tax refund anticipa- matters to the Finance Committee, to The PRESIDING OFFICER. Is there tion loans. Senator BAUCUS and Senator GRASS- objection? Without objection, it is so Why 14 percent? How did we come up LEY, as to how they want to proceed. ordered. with that magical number? Well, it is So I really would be hesitant about The clerk will report. interesting. I will tell you why we agreeing to—no votes have been agreed The legislative clerk read as follows: came up with that number. In 1991, our to on anything at this point. I would The Senator from Vermont [Mr. SANDERS] former colleague, the Republican Sen- strongly recommend that my colleague proposes an amendment numbered 4401. ator from New York, the former chair- from Louisiana talk to Senator BAUCUS Mr. SANDERS. Mr. President, I ask man of the Banking Committee, as I about this. unanimous consent that reading of the recall, Al D’Amato, offered an amend- Ms. LANDRIEU. I appreciate that. amendment be dispensed with. ment that would cap credit card inter- Let me tell my colleague that I have, The PRESIDING OFFICER. Without est rates at 14 percent. Senator and it is included in their tax package. objection, it is so ordered. D’Amato was not remembered as a rad- So just so the Senator from Con- The amendment is as follows: ical extremist. He was the chairman of necticut knows, I will not agree to any (Purpose: To establish a national consumer the committee. Here is what is inter- votes going forward unless this amend- credit usury rate, and for other purposes) esting. That amendment to cap inter- ment is in the group. So I am fine, and At the appropriate place, insert the fol- est rates at 14 percent for credit cards I will just stay here. The Finance Com- lowing new section: won on the floor of the Senate by a mittee is well aware of this, and they SEC. ll. NATIONAL CONSUMER CREDIT USURY vote of 74 to 19; it was not even close. have actually put it in their package. RATE. It had strong bipartisan support. My concern is that their package may Section 107 of the Truth in Lending Act (15 If I might, obviously, 1991 was a while U.S.C. 1606) is amended by adding at the end not ever really sort of get to the floor. the following: ago and many people who served are no There are some things in that package ‘‘(f) NATIONAL CONSUMER CREDIT USURY longer here. But a number of people that I think really need to be voted on. RATE.—The annual percentage rate applica- who served in 1991 are still here today. So that is OK. I will just stay here, and ble to any extension of credit may not ex- These are the people who voted in 1991 we will work on what we can do. I real- ceed by more than 8 percentage points the for the D’Amato amendment to cap ly appreciate it. rate established under section 6621(a)(2) of credit card interest rates at 14 percent Mr. DODD. Mr. President, further, the Internal Revenue Code of 1986, as deter- in alphabetical order: Senators AKAKA, mined by the Board.’’. having spoken with Senator BAUCUS BAUCUS, BIDEN, BYRD, COCHRAN, and his staff on this matter, they are Mr. SANDERS. Mr. President, this CONRAD, DODD, DOMENICI, GRASSLEY, trying to accommodate the various amendment is extremely important be- INOUYE, KENNEDY, KERRY, KOHL, LAU- amendments that are being posed in cause it addresses not only the fore- TENBERG, LEAHY, LEVIN, LIEBERMAN, the area the Senator is also suggesting closure crisis we are seeing in this MCCAIN, MIKULSKI, REID, ROCKEFELLER, some ideas for, and I think they are de- country, but it is also an issue that im- SHELBY, SPECTER, STEVENS, and WAR- sirous of accommodating as many as pacts millions and millions of Ameri- NER. Those 25 Members, in 1991, voted they can, provided it can be worked cans every single day of their lives well to cap interest rates at 14 percent on out. I don’t know enough about this to above and beyond the housing crisis. credit cards. say any more than that. They are What this amendment essentially In truth, this amendment goes be- working on it. It might make more says is the time is long overdue for this yond credit cards to other areas where sense to work with them to make sure Congress to have the courage to stand people are today paying very high in- we are OK. up to the banks, credit card companies, terest rates. Similar to my amend- Ms. LANDRIEU. Mr. President, and mortgage lenders who are charging ment, the D’Amato amendment of 1991 again, I just want to be clear that I outrageously high interest rates and was also pegged slightly above the in- would expect this to be in the first ripping off the American people. I terest rates for late income tax filers. group of votes that are taken as we know when I go back to Vermont, I We are using the same formula proceed on this bill. Whether it is 2 or talk to people who say: Why is it I am D’Amato used. 3 or 10 or 20, this needs to be in it or I paying 20, 25, 28 percent interest rates Let me quote Senator D’Amato on will object to going forward. Thank on my credit card? I can tell you, as a the floor in 1991: you. former member of the Financial Serv- Fourteen percent is certainly a reasonable The PRESIDING OFFICER. Does the ices Committee in the House, we heard rate of interest for banks to charge cus- Senator withdraw her unanimous con- horror story after horror story about tomers for credit card debt. It allows a com- sent or is there objection? payday lending. fortable profit margin but keeps banks in Mr. DODD. I have to object to any We know mortgage brokers are, in line so that interest rates rise and fall with unanimous consent request at this some cases, bringing forth unscrupu- the health of the economy. time. lously dishonest packages that drive Other people went to the floor and The PRESIDING OFFICER. Objec- interest rates up far beyond what also spoke on this issue. Senator tion is heard. should be charged in this country. This LIEBERMAN spoke on it and Senator Mr. DODD. Does my colleague from is an issue we must address, and now is DOMENICI spoke on it as well. Louisiana need to be heard any further the time to do that. What I say to my colleagues is, if on the amendment? Specifically, this amendment would this legislation, which passed with Ms. LANDRIEU. No. Thank you. cap all interest rates at 8 percent above overwhelming support in 1991, made Mr. DODD. Mr. President, I note the what the IRS charges income tax dead- sense then, let me tell you, it makes a absence of a quorum. beats. Currently, the IRS charges a 6- lot more sense today. A recent report The PRESIDING OFFICER. The percent interest rate to Americans who published by Tamara Draut, the direc- clerk will call the roll. are late on paying their income tax re- tor of the Economic Opportunity Pro- The legislative clerk proceeded to turns. The IRS adjusts these rates gram at Demos, found that one-third of call the roll. every quarter based on the Federal all credit card holders in this country Mr. SANDERS. Mr. President, I ask funds rate. If the Federal funds rate are paying interest rates above 20 per- unanimous consent that the order for rises, the interest rate the IRS charges cent and as high as 41 percent—more the quorum call be rescinded. late filers goes up as well. If the Fed- than double what they paid in interest The PRESIDING OFFICER (Mr. NEL- eral funds rate goes down, so does the in 1990. So if we had over 70 Members of SON of Florida). Without objection, it is interest rate the IRS charges late fil- the Senate voting to cap interest rates so ordered. ers. at 14 percent in 1991, today the vote AMENDMENT NO. 4401 TO AMENDMENT NO. 4387 If the amendment I am offering were should be even higher because the cri- Mr. SANDERS. Mr. President, I ask to become law today, all interest rates sis is far more severe. unanimous consent to lay the pending would be capped in this country at 14 Between 1989 and 2006, Americans’ amendment aside so I may call up my percent, including subprime mort- overall credit card debt grew by 315

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00049 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.089 S03APPT1 ccoleman on PRODPC75 with SENATE S2416 CONGRESSIONAL RECORD — SENATE April 3, 2008 percent, from $211 billion to $876 bil- tle print on page 4: They can raise in- It is about the credit vulnerability of lion. All over this country, people who terest rates any time for any reason. America. Housing is the first canary in are not earning enough money to pay You don’t even have to be late paying the cage the Senator shared, if he will for basic needs are buying groceries your phone bill or rent. They can raise allow me to use that analogy. Credit and gasoline to fill up their car with it for any reason whatsoever. cards will quickly follow. credit cards. And then, in turn, what One of the interesting facts, in terms I say to the Senator from Vermont, happens is they are paying 20, 25 per- of credit cards, is people would be when we debated bankruptcy reform on cent interest rates, and we have the stunned to know that the credit card the floor of the Senate 3 or 4 years ago, cycle of misery going around and companies send out, every single the credit card industry was pushing around, where they are too poor to pay year—do you know how many of these that bill because they wanted credit with cash, so they pay with credit, and things they send out? Four billion. We card debt to survive bankruptcy so you credit card interest rates are soaring, are a country of 300 million people. I could carry it to the grave. I put a pro- and they go deeper into debt. thought I was getting all of them but vision in that bill that said on a I know this is a hard vote. It is no se- apparently not. They seem to come to monthly statement for a credit card cret to anybody in the Senate that the my house twice a day. Apparently, oth- asking for a minimum monthly pay- financial services industry is enor- ers are getting them as well. They send ment, you have to disclose to the per- mously powerful. But it is time for us out 4 billion of these fancy brochures, son holding the credit card how long it to think about the folks back home urging you to buy into the credit card would take them to pay off the balance who are going deeper into debt and to thing and it costs them a fortune. But, if they paid the minimum monthly stand with them and put a cap on in- obviously, they can afford to do that payment. The credit card industry re- terest rates. because they are ripping off the Amer- fused, saying it was technically impos- One-third of low- and middle-income ican people, and they are charging 20, sible to calculate. Does anybody be- families reported going into credit card 25, and 30 percent, in some cases, in in- lieve that? debt to pay for rent, utilities, and food terest. This is unacceptable behavior. I say to the Senator from Vermont, in 2006. That same year, Americans Lenders should not be able to raise in- they had a feature on ‘‘NOVA,’’ which charged $51 billion worth of fast food terest rates at any time for any reason. I think is an extraordinary program, on their credit card, a 29-fold increase I am not going to go into a religious about credit cards. They heralded this since 2001. theme now. I am not going to do that. one man who is the guru of credit cards All of this, and more, has allowed But I know the Presiding Officer is a who dreamed up lowering the percent- credit card companies to earn $90 bil- religious person and probably more fa- age of minimum monthly payments lion in interest in 2006 alone. I will re- miliar with the Bible than I am. But he from 5 percent a month to 2 percent be- peat that. will know that the word ‘‘usury’’ is cause he created an endless stream of But credit card companies are not mentioned in the Bible on many occa- debt. If you pay 2 percent, you will the only ones charging outrageous in- sions. I will not quote from them, but never catch up with yourself. You will terest rates. That is why this amend- in Leviticus chapter 25, verses 35 to 37, pay debt forever. ment I am offering expands on the the issue about usury rates is, in fact, So those who think this amendment D’Amato amendment to cover all forms addressed. of the Senator from Vermont is unre- of loans. I will talk about Dante’s ‘‘Divine lated to our conversation about hous- For example, the Center for Respon- Comedy.’’ In the ‘‘Divine Comedy’’ by ing are wrong. sible Lending has found some American Dante, he speaks about a special place The last point I will make is, I thank consumers are paying interest rates for for people who charge usurious interest the Senator from Vermont for men- payday loans as high as 800 percent. I rates, and that is the inner ring of the tioning payday loans. They rip off think all the Senators understand this. Seventh Circle of Hell. members of the military like no other These types of outrageous interests I don’t particularly wish that on the entity in America, and they are a should not be allowed to continue. banking industry and all the lobbyists blight on America’s credit horizon. When the Federal Reserve has slashed who come here every day. I don’t wish I thank the Senator for offering this the Federal funds rate five times, from that on them. But I do wish they would amendment. My question is, Can I sign a high of 5.25 percent to 2.25 percent, take a deep breath and understand that on as a cosponsor? credit card interest rates should be this is not just an economic issue, it is Mr. SANDERS. With pleasure. I going down, not up. Interest rates for a moral issue. People who are strug- thank the Senator from Illinois. payday loans should be going down, not gling to pay their bills, who are going Mr. President, I will conclude be- up. If the Fed is cutting interest rates, into debt, through no fault of their cause the Senator from Illinois made how in God’s name—and why—are peo- own, should not have to pay 25 or 30 the point better than I can make it. ple paying higher and higher interest percent interest rates. Every Member of the Senate knows rates on their credit cards, their mort- Mr. DURBIN. Mr. President, will the this is a huge issue. In their heart, gages, and in other areas? Senator yield for a question? every Senator knows there is some- One of the reasons for this scam, this Mr. SANDERS. I will be very happy thing immoral, that there is something rip-off, is the virtual lack of regulation to yield to the Senator from Illinois. outrageous about hard-working people in this country when it comes to inter- Mr. DURBIN. I direct my question paying 25, 30 percent, especially at a est rates. For example, credit card through the Chair to the Senator and time when the Fed is lowering interest companies are able to raise interest thank him for offering the amendment rates. rates at any time for any reason. I sus- and say to the Senator from Vermont I say to my colleagues, it is no great pect I am not the only Member of the that over a year ago, while making a secret. The financial services industry Senate who talked to a constituent phone call to someone in a financial in- is very powerful. We all know that. who said: I pay my credit card bill on stitution in New York on an unrelated They make huge campaign contribu- time every single month, and I used to issue, the person said to me: Watch out tions. They have a lot of power here. be paying 9 percent, but now they for subprime mortgages. It did not reg- But I hope that on this amendment, we raised it to 14 percent. What did I do ister with me, but I should have paid have the courage to stand up to them. wrong? Why are they raising my inter- closer attention. A few months ago, In concluding, I remind my col- est rates? while making a similar call to a finan- leagues that in 1991, when Senator Every Member of the Senate has, cial institution in New York, the fellow D’Amato offered a similar amendment, himself or herself, received, along with said: Watch out for credit cards be- there was overwhelming bipartisan everybody else in this country, all cause people are shifting their debt support. The American people want us these fancy prospectives that come now into credit card debt with the sky- to act on this issue. As the Senator from the credit card companies, saying high interest rates. from Illinois indicated, this is directly zero percent interest rate or 2 percent Many people listening may ask what related to the housing crisis, and I interest rate. But they forget to tell is this about. This is supposed to be think it is time we move forward and you in big bold print what is in the lit- about housing. It is not about housing. put a cap on interest rates.

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00050 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.091 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2417 I yield the floor. Robert Wagner, Pat Boone, and all sell you a deferred annuity. I don’t The PRESIDING OFFICER. The Sen- these familiar, trusted faces saying: know how these people look themselves ator from Missouri. You know, don’t miss out. There are in a mirror. Mrs. MCCASKILL. Mr. President, I advertisements that are being mar- We had a witness in front of our com- commend Senator SANDERS on his keted to elderly people across this mittee whose mother was in her amendment and look forward to sup- country that are saying: Don’t pass up eighties and sold a deferred annuity porting it. We have a lot of work to do this Government benefit you are enti- and a reverse mortgage at the same on credit cards. It is much worse than tled to. time. It is unconscionable to make the people realize in terms of some of the I have to tell the truth, I don’t think sale and make the money. It is a get- practices the credit card industry has anybody envisioned reverse mortgages rich-quick scheme for some of these employed. One of my favorites is trying were going to be called ‘‘a Government sales people. If we can provide certified to lure people to their limit on credit, benefit you are entitled to.’’ Why are counselors who are truly independent and when they get them there, raising they saying that? They are saying that to make sure that every elderly person their interest rates and telling them: because ultimately the taxpayers are understands exactly what they are get- Well, you are at your credit limit. on the hook for these loans. ting into, and if we can make sure they I can give many examples of how Guess what. The people who are sell- are not being marketed products that that practice is utilized, including ing them are making commissions, and are inappropriate by the same people sending people the check already made they have no risk. We kind of like who are selling them reverse mort- out so if they sign their name on that these reverse mortgages around here gages, and if we can make sure we are check and use it, then they are at their because, guess what, we make some not closing a blind eye to this because credit limit and up pops their interest money on it, too. That is, the Federal we are benefiting in the short run from rate. All kinds of tricks are used to try Government. So there is a push to lift the marketing of these products, then I to—by the way, don’t ever try to pay the lid on how many reverse mortgages think reverse mortgages have an ap- off a bunch of credit cards because it is can be marketed to elderly people be- propriate place as one potential help to hard to pay them off. First, they don’t cause the Federal Government is get- people in their elderly years who need want you to pay in full every month ting some of the money when they are to get the equity out of their homes for and they don’t want you to pay them sold. But we are going down a dan- emergencies or medical bills or even to off. For gosh sakes, they don’t want gerous path because we are marketing send a loved one to college. Right now, you to cancel a card. They will imme- a product that is complicated and ex- it is a dangerous situation. diately take notice you lost your card pensive to the most vulnerable popu- I look forward to hopefully having because they are on the hook. In fact, lation in America. unanimous, bipartisan support for this I pointed out in one of the hearings we For many of these elderly people, all amendment. As I say, HUD has been had to the credit card executives, the they have is their home. For many of very helpful in drafting this language, only thing that is easy to understand these elderly people, they do not have along with AARP, along with our colon this is the first line which says if a loved one with whom they can talk leagues on the other side of the aisle. It you lose your credit card or your credit about whether this financial instru- is well thought out. I think it is very card is stolen, call this phone number ment is a good idea. appropriate, noncontroversial. It is not because they know they are on the Don’t get me wrong, some reverse opposed by the industry. There are hook if the credit card is lost or stolen, mortgages are good and they may be many good guys who are doing this so they are interested in you getting to appropriate in some circumstances. work. We want to make sure we are them in those circumstances. All the But here is what is not appropriate: We protecting the elderly from the bad other circumstances you press this require counseling. We have appro- guys and making sure we are not number and maybe you will get some- priated a whopping $300 million for standing here 5 years from now saying: one who will talk to you after you have counseling. They have to have coun- Why didn’t we do something about re- hung on the phone for 2 hours. seling in every case, so guess who is verse mortgages? It is the same kind of I do not rise to talk about credit paying for the counseling? Bad news: dangerous mix we have in the subprime cards today. I rise to talk about re- The lenders are paying for the coun- mortgages. verse mortgages. I have an amendment seling. So the same people who want to Mr. President, I yield the floor. that will be called up at a later time. I close the loans are paying the coun- The PRESIDING OFFICER. The am proud we have been working on this selors who are supposed to be giving chairman of the Banking Committee. amendment. We had a hearing on this these elderly people advice that is un- Mr. DODD. Mr. President, before our subject in the Aging Committee. We biased as to whether this is a good idea colleague from Missouri leaves the have been working with Senator SHEL- for them. floor, I thank her. She has done a ter- BY and his staff. We have been working The amendment will step up to the rific job on this proposal. I know she is with HUD. AARP has been helping with plate and say we are not going to re- working with Senator SHELBY and oth- this amendment. They did a massive peat the subprime fiasco with the Na- ers on the committee in crafting this report that they issued about reverse tion’s ‘‘greatest generation.’’ We are proposal in a way that can make a dif- mortgages. going to, in fact, fund the counselors so ference. If we look at the subprime mess and they get good, independent informa- Our colleague is absolutely correct in sit back and say, what caused the prob- tion. We are going to make sure those describing this problem. It is des- lem, the root of the problem is the peo- counselors are certified. Right now, picable in many ways how people are ple selling the subprime mortgages had they can have a criminal record, they being lured into arrangements they no risk. If you have a risk, you are can have no training. This is the wild, cannot afford. It would be devastating careful. If you have no risk, then it is wild west out there selling a financial for them economically. I thank her for very simple: I just have to close the product that is expensive and com- the proposal and let her know we are sale. plicated to our elderly. It does not take going to do everything we can in these We are doing the exact same thing a rocket scientist to figure out that is hours of trying to work this out to ac- with reverse mortgages. If you are a dangerous combination. commodate this very important idea. watching any cable TV—and probably The other thing this amendment does She has put in tremendous effort on way too many people in this Chamber is it is going to prohibit someone who this issue and needs to be recognized. I are watching way too much cable TV is marketing one of these reverse mort- thank the Senator from Missouri, and right now because everybody is watch- gages from being able to sell another we will try to be helpful on this amending the cable news channels because we product. Believe it or not, there are ac- ment. I thank the Senator for raising are all addicted to the Presidential tually some people who are sitting it. race and every twist and turn it en- down with elderly people right now in My colleague from Vermont, Senator compasses—if you are watching any of America saying: We are going to get SANDERS, who has left the Chamber, of- the cable news shows, you are seeing you a reverse mortgage and, by the fered his amendment. I listened to my advertisements over and over again by way, at the same time, we are going to colleague from Missouri. I spent the

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00051 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.092 S03APPT1 ccoleman on PRODPC75 with SENATE S2418 CONGRESSIONAL RECORD — SENATE April 3, 2008 last 20 years or so dealing with the The PRESIDING OFFICER. The Sen- I yield the floor. credit card industry and various prob- ator from Nevada. The PRESIDING OFFICER. The Sen- lems with it. I have not done terribly Mr. ENSIGN. Mr. President, I ask ator from Montana. well, I might point out, trying to mod- unanimous consent that the order for Mr. BAUCUS. Mr. President, all of us ify some of these ideas that have be- the quorum call be rescinded. are concerned about ways to protect come outrageous. Senator CARL LEVIN The PRESIDING OFFICER. Without and to make our country more self-suf- of Michigan cares deeply about the objection, it is so ordered. ficient in the production of energy. We issue as well. We have been preoccupied Mr. ENSIGN. Mr. President, I ask have made many attempts on this with the housing issue, obviously, in unanimous consent to set aside the floor, in fact a major bill was voted on the Banking Committee over the last pending amendment and call up last year and was actually one vote shy year, but we are also crafting legisla- amendment No. 4419 and ask for its im- of the necessary 60 votes. tion dealing with the credit card com- mediate consideration. Many of us are working here, includ- panies. Mr. DODD. Reserving the right to ob- ing the Senator from Nevada, as well Many are doing the right things ject, Mr. President, I see my colleague as the Senator from Washington, Sen- today. Some of the major companies from Montana is here, and we need to ator CANTWELL, to find a way to bring are. I don’t want to suggest here it is see the amendment, first of all. I have up a significant energy bill later this an indictment of every credit card no idea what the amendment is. year. There are various candidate bills company, nor do any of us have any ob- The PRESIDING OFFICER. Is there for that. One is something called the jection to credit cards. It has been a objection? extenders, and I think that is one of tremendously valuable vehicle for a Mr. BAUCUS. I object. several ways where we can get this significant number of consumers. But The PRESIDING OFFICER. Objec- done. Extenders is going to pass. That an abuse of the process, and where lit- tion is heard. is not an idle bill. It is going to pass. erally they are targeting some of the The Senator from Nevada. The amendment offered by Senator most vulnerable people in our society Mr. ENSIGN. Mr. President, the ENSIGN is unpaid for, and, to be honest, and targeting them in such a way amendment I was attempting to offer I frankly think the other body—some where the slightest delay, even an hour is a bipartisan amendment on renew- of them are called Blue Dogs—is not or so, can add significant cost, fees, able energy at a time when our country going to put up with it. We have to pay and an interest rate climb, makes it is looking for cleaner sources of en- for an energy bill, and we are working virtually impossible for some people to ergy. We are also looking for more do- on the offsets so we can get it paid for ever get out from underneath their mestic sources of energy and at ways and so we can get it enacted into law. credit card debt. to help our economy. This housing bill So I think, at this point, it would be The average person in this country is not just a housing bill, it is a bill to a mistake to bring up this version be- today, an adult, has a revolving debt help our economy. It is a bill to keep cause it would not survive a point of exceeding $9,300, getting close to us from going further into recession. order challenge, and I urge the Senator $10,000, I was told the other day. And 95 The amendment I introduce is a bill from Nevada to work with the Finance percent of that is credit card debt. This Senator CANTWELL and I have worked Committee, work with others together, is, obviously, heading in the wrong dion for the last several weeks because in a concerted way, to get something rection at a time when we have a nega- there has been an impasse on renew- passed rather than going solo and try- tive savings rate and consumer debt is able energy legislation. The offsets ing on his own to push something that mounting. We need to be doing every- that were included in the original bill is not part of a team but, rather, as an thing we can to make it possible for were unacceptable. And because there individual. Because individual efforts people to have credit cards, for the are going to be very few vehicles that are not going to be as successful as credit card industry to make a legiti- are moving this year, we are trying to team efforts, and so I urge the Senator mate profit in that industry—that is get this amendment on this bill to try to be a part of the team so we can get critically important—but not to make to get renewable tax credits included this thing passed. it impossible for people to pay off these so it can be signed into law this year. Mr. ENSIGN. Will the Senator yield obligations and to get their lives in The problem is, if you wait too long for a question? order. on these renewable tax credits, these Mr. BAUCUS. Through the Chair, I This is one of the concerns I had with businesses will shut down because they will be glad to. the bankruptcy bill a few years ago require time in advance for planning Mr. ENSIGN. Mr. President, we have when it was adopted; that bankruptcy and business development. So it is crit- over 20 cosponsors of the bill we intro- legislation made it so difficult for peo- ical we get this done. duced today. It is a bipartisan effort. ple with credit cards to get out from I know the chairman of the Finance We are working as part of a team. under those obligations if they took Committee is working on a bill, he is What we are trying to do is work to- the bankruptcy act. So there are a lot working on some offsets, but the prob- gether. of issues to talk about, and Senator lem I see with what he is doing is it So I would ask the Senator: With 20 SANDERS has raised an important issue may not pass later on in the year, and Republicans and Democrats cospon- and certainly Senator MCCASKILL has it also may be too late. So this bill soring this bill together, does he con- as well in talking about these prob- may be the best vehicle we have to en- sider them to be working as individuals lems. I want my colleagues to know sure America becomes less dependent or as part of a team? We will probably that at some point we are going to on foreign sources of oil and other en- have over 50 cosponsors by the early craft legislation dealing with this issue ergy sources. It may be the last chance in a comprehensive and thoughtful part of next week. It seems to me that manner so we don’t allow the abuses to we have to preserve over 100,000 jobs in the way the Senate works is getting go on where people never, ever can the United States that have been and people together and not worrying manage to climb out from under those can be created in the renewables indus- about whether you are a Republican or obligations, saddling them with life- try. And it may be the last chance we Democrat but worrying about what is long economic burdens and making it have this year to significantly help the right for the American people. That is impossible for them to accumulate environment in America. what we are attempting to do. wealth and provide for the needs of So I appreciate that the Democratic Mr. BAUCUS. I deeply appreciate the their families. chairman of the Finance Committee Senator wanting to be part of the So I appreciate very much their rais- has objected to us bringing up this team. There is another number here ing these concerns as they have this amendment, but we are going to con- called 60. And it is my judgment that evening. tinue to try to get this amendment on with more working together on meas- I suggest the absence of a quorum. this bill. Mr. President, I think it is a ures with others, the greater the likeli- The PRESIDING OFFICER. The mistake at this critical time for renew- hood we will get this passed. We all clerk will call the roll. ables and for our country that an ob- want it passed. Let us do it in the con- The assistant legislative clerk pro- jection has been made to our offering text and in a forum in which we can ceeded to call the roll. of this amendment at this time. get it passed.

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00052 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.093 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2419 I yield the floor, and I suggest the ab- come in and buy a home because of the principal residence in the United States dur- sence of a quorum. uncertainty in the market. It is tar- ing any taxable year, there shall be allowed The PRESIDING OFFICER. The geted in that it only applies to those of as a credit against the tax imposed by this clerk will call the roll. subtitle for the taxable year an amount limited income, middle-income fami- equal to so much of the purchase price of the The assistant legislative clerk pro- lies. It uses the same dollar limits that residence as does not exceed $7,000. ceeded to call the roll. are currently used in the District of ‘‘(2) ALLOCATION OF CREDIT AMOUNT.—The Mr. CARDIN. Mr. President, I ask Columbia tax credit that has been so amount of the credit allowed under para- unanimous consent that the order for successful in encouraging families to graph (1) shall be equally divided among the the quorum call be rescinded. buy homes within our Nation’s Capital. 2 taxable years beginning with the taxable The PRESIDING OFFICER (Mr. About 3,000 to 4,000 individuals every year in which the purchase of the principal SANDERS). Without objection, it is so year take advantage of the tax credit residence is made. ordered. ‘‘(b) LIMITATIONS.— we provide for the residents of the Dis- ‘‘(1) LIMITATION BASED ON MODIFIED AD- Mr. CARDIN. Mr. President, I ask trict to buy a home. JUSTED GROSS INCOME.— unanimous consent that the pending This credit, which is temporary and ‘‘(A) IN GENERAL.—The amount allowable amendment be set aside so I can offer which is targeted, which is aimed at as a credit under subsection (a) (determined an amendment. middle-income families, which is aimed without regard to this subsection) for the The PRESIDING OFFICER. Is there at first-time home buyers, which is taxable year shall be reduced (but not below objection? aimed at getting more interest among zero) by the amount which bears the same ratio to the credit so allowable as— Mr. CARDIN. Mr. President, I ask consumers into our housing so we can unanimous consent to withdraw that ‘‘(i) the excess (if any) of— try to help our economy—I think it is ‘‘(I) the taxpayer’s modified adjusted gross amendment for a moment so we can the right complement to the legisla- income for such taxable year, over make sure everyone has copies of it. I tion that is before us. ‘‘(II) $70,000 ($110,000 in the case of a joint will use this time now to speak on the The legislation before us is aimed at return), bears to amendment, and then I will offer it trying to help people to be able to find ‘‘(ii) $20,000. when I have completed. mortgages. It is aimed at dealing with ‘‘(B) MODIFIED ADJUSTED GROSS INCOME.— The PRESIDING OFFICER. The homes that are in foreclosure, trying For purposes of paragraph (1), the term amendment is not yet pending. ‘modified adjusted gross income’ means the to allow people to stay in their homes, adjusted gross income of the taxpayer for the AMENDMENT NO. 4421 TO AMENDMENT NO. 4387 and allowing local governments to taxable year increased by any amount ex- Mr. CARDIN. Mr. President, the have more ability to deal with refi- cluded from gross income under section 911, amendment I will be offering shortly, nancing homes for those who have 931, or 933. along with Senator ENSIGN, is an subprime mortgages. I have already ‘‘(2) LIMITATION BASED ON AMOUNT OF TAX.— amendment that would try to help the talked on the floor about this issue. It In the case of a taxable year to which section housing market itself. It would provide is aimed at trying to get better advice 26(a)(2) does not apply, the credit allowed a tax credit, a temporary tax credit under subsection (a) for any taxable year to people who may be buying homes, shall not exceed the excess of— just for this next year, for residential and it also has a tax credit. I acknowl- ‘‘(A) the sum of the regular tax liability home purchases. It is for someone who edge Senator ISAKSON, who has worked (as defined in section 26(b)) plus the tax im- is using the house as their primary res- on that. It deals with distressed prop- posed by section 55, over idence. It would be a $7,000 credit erties. I would also like to acknowl- ‘‘(B) the sum of the credits allowable under spread out over 2 years. It would be edge that my colleague, Senator this subpart (other than this section and section 23) for the taxable year. aimed at trying to get people to buy STABENOW, has been a longtime pro- ‘‘(c) DEFINITIONS AND SPECIAL RULES.—For homes today. ponent of tax credits to stimulate purposes of this section— As I am sure you are aware and as home buys. This amendment is aimed ‘‘(1) FIRST-TIME HOMEBUYER.— has been explained on this floor, there at generating more interest in home ‘‘(A) IN GENERAL.—The term ‘first-time is a glut on the housing market. There buys so we can help bring our economy homebuyer’ has the same meaning as when are so many homes that people are try- back to recovery. used in section 72(t)(8)(D)(i). ing to sell, and potential buyers are re- I thank my colleague, Senator EN- ‘‘(B) ONE-TIME ONLY.—If an individual is luctant to come in to purchase a home SIGN, for his input in helping to craft treated as a first-time homebuyer with re- because they don’t know whether the this amendment and his cosponsorship spect to any principal residence, such indi- value will go down. They are waiting. vidual may not be treated as a first-time of it. I urge our colleagues to consider homebuyer with respect to any other prin- They are sitting it out. that. cipal residence. It was the housing market that trig- Mr. President, I now offer that ‘‘(C) MARRIED INDIVIDUALS FILING JOINT- gered our current downturn in the amendment. LY.—In the case of married individuals who economy. We need to pay attention to The PRESIDING OFFICER. The file a joint return, the credit under this sec- the housing market in order to get our clerk will report the amendment. tion is allowable only if both individuals are economy back on track. The bill clerk read as follows: first-time homebuyers. The intent of this amendment is to The Senator from Maryland [Mr. CARDIN], ‘‘(D) OTHER TAXPAYERS.—If 2 or more indi- get more interest by home buyers so for himself and Mr. ENSIGN, proposes an viduals who are not married purchase a prin- amendment numbered 4421 to amendment cipal residence— they will buy homes today knowing ‘‘(i) the credit under this section is allow- that the Government, through a tax number 4387. The amendment is as follows: able only if each of the individuals is a first- credit, is covering some of their risks time homebuyer, and and making it more affordable for (Purpose: To amend the Internal Revenue ‘‘(ii) the amount of the credit allowed them to be able to buy a home. That is Code of 1986 to allow a credit against in- under subsection (a) shall be allocated exactly what this amendment would come tax for the purchase of a principal among such individuals in such manner as residence by a first-time homebuyer) do. the Secretary may prescribe. At the end, insert the following: Senator ENSIGN and I have crafted ‘‘(2) PRINCIPAL RESIDENCE.—The term ‘prin- this amendment so it is temporary. It TITLE l—FIRST-TIME HOMEBUYERS’ TAX cipal residence’ has the same meaning as CREDIT when used in section 121. is available only for the next year. We SEC. l01. CREDIT FOR FIRST-TIME HOME- ‘‘(3) PURCHASE.— have crafted it so it is targeted. It only BUYERS. ‘‘(A) IN GENERAL.—The term ‘purchase’ applies to first-time home buyers, (a) IN GENERAL.—Subpart A of part IV of means any acquisition, but only if— those who are most in need. In the Na- subchapter A of chapter 1 of the Internal ‘‘(i) the property is not acquired from a tion, approximately 35 percent of those Revenue Code of 1986 (relating to nonrefund- person whose relationship to the person ac- who buy homes are first-time home able personal credits) is amended by insert- quiring it would result in the disallowance of buyers. In my own city of Baltimore, it ing after section 25D the following new sec- losses under section 267 or 707(b) (but, in ap- is closer to 65 percent. So it is a large tion: plying section 267 (b) and (c) for purposes of ‘‘SEC. 25E. PURCHASE OF PRINCIPAL RESIDENCE this section, paragraph (4) of section 267(c) number of people who are potentially BY FIRST-TIME HOMEBUYER. shall be treated as providing that the family in the market, but they are the most ‘‘(a) ALLOWANCE OF CREDIT.— of an individual shall include only the indi- reluctant—those who do not own ‘‘(1) IN GENERAL.—In the case of an individual’s spouse, ancestors, and lineal de- homes today are the most reluctant to vidual who is a first-time homebuyer of a scendants), and

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00053 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.094 S03APPT1 ccoleman on PRODPC75 with SENATE S2420 CONGRESSIONAL RECORD — SENATE April 3, 2008 ‘‘(ii) the basis of the property in the hands enue Code of 1986 is amended by inserting neighborhood between the number of of the person acquiring it is not deter- after the item relating to section 25D the fol- foreclosures and the rise of violent mined— lowing new item: crime. This is an issue that should in- ‘‘(I) in whole or in part by reference to the ‘‘Sec. 25E. Purchase of principal residence volve all of us. adjusted basis of such property in the hands by first-time homebuyer.’’. of the person from whom acquired, or I also wish to thank Senator DODD. Mr. CARDIN. I now yield to the Sen- He has done a great service to our Na- ‘‘(II) under section 1014(a) (relating to ator from Nevada. property acquired from a decedent). tion in being able to bring forward a The PRESIDING OFFICER. The Sen- ‘‘(B) CONSTRUCTION.—A residence which is bill that has bipartisan support. That constructed by the taxpayer shall be treated ator from Nevada is recognized. is not easy today; it is very difficult. as purchased by the taxpayer. Mr. ENSIGN. Mr. President, I wish to We now have the opportunity to move ‘‘(4) PURCHASE PRICE.—The term ‘purchase applaud the Senator from Maryland, forward. price’ means the adjusted basis of the prin- Mr. CARDIN, for his great work. It has I was explaining to Senator DODD cipal residence on the date of acquisition been a pleasure working with his staff (within the meaning of section that one of my constituents a little bit and with him personally on this very earlier this evening said: You know, we 72(t)(8)(D)(iii)). important amendment. ‘‘(d) DENIAL OF DOUBLE BENEFIT.—No credit are so encouraged that Democrats and shall be allowed under subsection (a) for any We are trying to help the housing sit- Republicans could come together on a expense for which a deduction or credit is al- uation in the United States. My State, housing bill, that there is now hope we lowed under any other provision of this chap- Nevada, leads in foreclosures. I saw a can act quickly. ter. statistic the other day that, after a What he said to me is interesting. He ‘‘(e) RECAPTURE IN THE CASE OF CERTAIN record month of foreclosures in Feb- said: You know, there are a lot of good DISPOSITIONS.—In the event that a tax- ruary, foreclosures in March were up payer— things in this bill. I think I could have ‘‘(1) disposes of the principal residence another 50 percent over February. So it done it better. There are some things I with respect to which a credit is allowed is a huge problem. There are a lot of would like to have seen in there. But under subsection (a), or young people out there—first-time what I like is you are able to move, ‘‘(2) fails to occupy such residence as the home buyers—who want to get into the you are able to get something done. It taxpayer’s principal residence, marketplace to try to participate in is a real signal to this country that at any time within 24 months after the date the American dream. That is what this Congress is engaged on the housing cri- on which the taxpayer purchased such resi- amendment is about. It is targeted dence, then the remaining portion of the sis and wants to do something to help credit allowed under subsection (a) shall be right at those young people, or the sin- that person who today is in danger of disallowed in the taxable year during which gle person, who is trying to buy a home losing his or her home because of a such disposition occurred or in which the for the first time. And maybe they foreclosure, or is in danger of walking taxpayer failed to occupy the residence as a might even be a little older but have away. principal residence, and in any subsequent never been able to afford a home until One of the things I found amazing is taxable year in which the remaining portion now. This might be the economic in- 50 percent of people walk away from of the credit would, but for this subsection, centive to get them into owning their their homes; they do not even try. This have been allowed. home for the first time. ‘‘(f) BASIS ADJUSTMENT.—For purposes of bill will give them hope that the Gov- this subtitle, if a credit is allowed under this There are so many benefits to home ernment is on their side. It can provide section with respect to the purchase of any ownership. There is more of a sense of some additional financing, it is going residence, the basis of such residence shall be community when you are paying prop- to provide some additional help and reduced by the amount of the credit so al- erty taxes; you care more about the counseling, it is going to provide an op- lowed. schools; you care more about where portunity for that person to maintain ‘‘(g) PROPERTY TO WHICH SECTION AP- those taxes are going. the American dream. PLIES.—The provisions of this section shall So this is an excellent amendment at apply to a principal residence if the tax- The American dream is about being payer’s date of acquisition of the residence a great time when we are trying to able to succeed in this country. The (within the meaning of section help the housing market. But we will most visible sign is owning a home. A 72(t)(8)(D)(iii)) and date of settlement on also be helping individual Americans lot of people are going to lose their such residence are during the period begin- with this tax credit at the same time. homes as a result of this recession. ning on the date of the enactment of this I wish to applaud the leadership of Sen- This legislation will make it possible section and ending on the date that is 1 year ator CARDIN on this. We worked to- for more Americans to save their after such date.’’. gether well when we were both on the (b) CONFORMING AMENDMENTS.— homes. (1) Section 24(b)(3)(B) of the Internal Rev- Ways and Means Committee in the The amendment Senator ENSIGN and enue Code of 1986 is amended by striking House of Representatives. This is an- I are offering is a way in which we be- ‘‘and 25B’’ and inserting ‘‘, 25B, and 25E’’. other example of what bipartisanship lieve, I think our colleagues believe, (2) Section 25(e)(1)(C)(ii) of such Code is can be about. It is about putting the that this body has a responsibility to amended by inserting ‘‘25E,’’ after ‘‘25D,’’. country before your party and looking help build our economy. One of the (3) Section 25B(g)(2) of such Code is amend- for solutions that actually work. So I ways we can do it is by encouraging ed by striking ‘‘section 23’’ and inserting am proud to cosponsor this amendment more home ownership. ‘‘sections 23 and 25E’’. and be the lead Republican on it. I hope (4) Section 25D(c)(2) of such Code is amend- This amendment, by providing a tax ed by striking ‘‘and 25B’’ and inserting ‘‘25B, this amendment can be adopted as part credit, is saying: The Government is on and 25E’’. of the final package. your side. Go now, buy a home, we will (5) Section 26(a)(1) of such Code is amended I yield the floor. help you hedge against the potential by striking ‘‘and 25B’’ and inserting ‘‘25B, The PRESIDING OFFICER. The Sen- risk and make it a little more afford- and 25E’’. ator from Maryland. able for you to own a home. (6) Section 904(i) of such Code is amended Mr. CARDIN. Mr. President, let me I encourage my colleagues to accept by striking ‘‘and 25B’’ and inserting ‘‘25B, say to my colleague again from Ne- that amendment. and 25E’’. vada, the two of us did work together I yield the floor. (7) Subsection (a) of section 1016 of such very closely in the other body, and now Code is amended by striking ‘‘and’’ at the Mr. ISAKSON. Would the Senator end of paragraph (36), by striking the period it is a real pleasure to serve together in yield for a question? at the end of paragraph (37) and inserting ‘‘, this body. It is a great honor. Mr. CARDIN. I yield. and’’, and by adding at the end the following I think the comments the Senator Mr. ISAKSON. Mr. President, I wish new paragraph: has made about home ownership are so to ask the Senator from Maryland a ‘‘(38) to the extent provided in section important. Home ownership is criti- point of clarification for the Members. 25E(f).’’. cally important to our country. We This amendment is an additional tax (8) Section 1400C(d)(2) of such Code is know where there is home ownership, credit in addition to the one that is al- amended by striking ‘‘and 25D’’ and inserting schools are better, the crime is less. ‘‘25D, and 25E’’. ready in the bill; is that correct? (c) CLERICAL AMENDMENT.—The table of One of the statistics I found very in- Mr. CARDIN. That is correct. sections for subpart A of part IV of sub- teresting was a study in Chicago that Mr. ISAKSON. So what you are chapter A of chapter 1 of the Internal Rev- there was a distinct relationship in a doing, you leave targeted the stimulus

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00054 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.025 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2421 to absorb the foreclosed properties, but foreclosures in communities where we fact that now is the time of the fore- you add a stimulus for first-time home never thought we would see foreclosure crisis, that the homeowner, on buyers in the marketplace? closures is recordbreaking. That is not their principal residence, could then Mr. CARDIN. The Senator is correct. the type of records we want to have. take $25,000 out of their retirement Mr. ISAKSON. I wanted to make sure So as the Senator knows, it not only plan without having to pay that pen- that is reflected in the RECORD. affects that homeowner who is going to alty. The PRESIDING OFFICER. The Sen- potentially lose his or her home, it af- Now, of course, if they keep it out, ator from Connecticut. fects every house in the community. I they are then going to have to pay in- Mr. DODD. Mr. President, I wish to was talking with some of the housing come tax on that, which has up to that thank my colleague from Maryland for authority people, some of the people point been nontaxable because it has his generous comments about the ef- from the nonprofit community who been in the retirement plan. But if fort and to also commend him and Sen- work with these neighborhoods, and they put it back in within a 3-year pe- ator ENSIGN and others who are work- the cost to the neighborhood is stag- riod, they would avoid the income tax. ing on these ideas to provide some re- gering when you have foreclosed prop- So we are trying to make it available lief and some opportunity for people. I erties. So we are going to have to do under the theory that if it is going to think he said it well. something about that. purchase a home and to give someone a It becomes almost axiomatic, maybe But it would be a lot better invest- break by going into their retirement it is becoming overused, but it cer- ment that we prevent the foreclosures savings, then it ought to be good public tainly captures what all of us feel. for those who are financially able to policy to help them save their home That is, there is no greater wealth cre- stay in their homes. I think that is from foreclosure by going into their re- ator, there is nothing more to stabilize what your legislation does. I applaud tirement savings in order to save their a family or a community, there is you for that. Every person we can keep home. nothing that does more for families in the home who can afford to stay That is why we think, at least from than having a stable, reliable home. It there will benefit many more people in the early signals from the staff on both sounds maybe silly to some people. that community. By the way, it is good sides of the aisle, this would be a salu- I am old enough to remember when for local Government. It will help their tary amendment that may get some se- this issue was never a partisan issue. In property tax revenues. It is good for rious consideration to accept. This benefit is limited to 2 years, so fact, some of the strongest advocates of local governments; I think it will reit is not going to be permanent. So it affordable shelter came from some of duce their costs. I think it is a win-win will address the situation here. Why? the most conservative Members of this situation. So I congratulate you for Because in most instances, for Ameri- body historically. Going back, I recall bringing forward a bill we can act on cans, their home is the single source of as a young man growing up listening to quickly, in order to save homes for peo- wealth for those Americans. So it the distinguished Senators from Ala- ple who otherwise are likely to lose bama and others, they were ‘‘Mr. Hous- makes sense, it makes common sense, their homes and to strengthen neigh- to allow homeowners to use every tool ing’’ in those days. They made a huge borhoods that would otherwise be suf- difference. This was an issue where we available to stay in their own home fering as a result of those foreclosures. and avoid foreclosure and save their all worked together to see to it that I yield the floor. greatest investment. families and individuals had the oppor- The PRESIDING OFFICER. The Sen- So I am certainly encouraging my tunity to have affordable shelter. ator from Florida. colleagues to support this amendment, So our colleague from Maryland is Mr. NELSON of Florida. Mr. Presi- and at the appropriate time, with the absolutely correct. In fact, you could dent, I wish to first extend my appre- approval of the chairman of the com- make the case even more so today. And ciation to the Senator in the chair for mittee, we will actually offer the to watch what has happened over the the courtesy he extended to me earlier amendment. last relatively short period of time, with regard to the duties of the Pre- I yield the floor and I suggest the ab- values decreasing, prices falling, which siding Officer. The Senator from sence of a quorum. has been good news to some degree, ex- Vermont is very kind. The PRESIDING OFFICER. The cept that obviously as supply increases Later on, I will be offering an amend- clerk will call the roll. demand and neighborhoods deterio- ment with Senator COLEMAN, and we The bill clerk proceeded to call the rate—we were talking about the city of think this is an amendment that will roll. Baltimore. possibly be accepted. So I am going to Mr. DODD. I ask unanimous consent I do not know if my colleague heard wait and not offer the amendment that the order for the quorum call be me talking about Bridgeport, CT, the until Senator COLEMAN is able to be rescinded. other day. I have a new mayor that got here. The PRESIDING OFFICER. Without elected, Bill Finch, former State Sen- But I wish to go on and set the record objection, it is so ordered. ator in Connecticut. He got elected to of what this amendment would be. Mr. DODD. Mr. President, I ask unan- be mayor in my biggest city in Con- Under current law, if a person has a imous consent that at 7:40 tonight, the necticut. He walks in to be mayor, he 401(k) retirement plan and they want Senate proceed to vote in relation to has got between 5,000 and 6,000 fore- to buy a house and it is to be their the following two amendments, with no closures in a city in Fairfield County, principal residence, they can take up amendments in order to the amend- one of the most affluent counties in to $10,000 out of their retirement plan ments prior to the vote; that if a point America, hearing as many as 6,000 fam- for the purchase of that house and not of order is raised against any of the ilies could be losing their homes in the pay the penalty under law for taking amendments covered in this agreement coming days. assets out of their retirement plan. for tonight and Friday and a motion to So his point here about how to make Now, since that is available to us waive the appropriate point of order is sure we rehabilitate, provide oppor- under current law, would it not make made, then there be 2 minutes of de- tunity, create those ideas and thoughts sense for a person, if they are about to bate with respect to the waiver prior to that will make it possible for people to lose their home, their principal resi- a vote on the motion to waive, equally move into a home, to acquire a home, dence, to be able to take money out of divided and controlled in the usual is critically important. their retirement plan in order to save form; and that upon the use or yielding I commend him for that, thank him their home from foreclosure, if it were back of the time, the Senate proceed to for his generous comments about the done in a limited period of time, if it vote in relation to the amendments in effort here tonight. were the principal residence for them, the order listed for today and Friday: Mr. CARDIN. Let me thank again the not to have to pay that 10-percent pen- Murray-Schumer amendment No. 4397, Senator from Connecticut. The cir- alty? and the Kyl amendment No. 4407; that cumstances in Baltimore, in Maryland, So that is the essence of the amend- when the Senate resumes consideration in June we ranked 40th in the Nation in ment. It would allow a person, under of the bill on Friday, the Senate then foreclosures. We now rank in the teens, these circumstances, and this would proceed to vote in relation to the fol- 18th in foreclosures. The number of only be available for 2 years, given the lowing two amendments: Voinovich-

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00055 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.096 S03APPT1 ccoleman on PRODPC75 with SENATE S2422 CONGRESSIONAL RECORD — SENATE April 3, 2008 Stabenow amendment No. 4406 and the Mr. President, I ask unanimous con- [Rollcall Vote No. 89 Leg.] Landrieu, et al., amendment No. 4389, sent that Senator JACK REED of Rhode YEAS—44 with no amendment in order to the Island be listed as a cosponsor of this Akaka Johnson Reed amendments prior to a vote; that in amendment. Baucus Kerry Reid the sequence of votes for today and Bayh Klobuchar Rockefeller The PRESIDING OFFICER. Without Bond Kohl Salazar Friday, after the first vote, the remain- objection, it is so ordered. Brown Landrieu Sanders ing vote be 10 minutes in duration. Is there further debate on the motion Cantwell Leahy Schumer The PRESIDING OFFICER. Is there Cardin Levin to waive? Smith objection? Carper Lincoln Snowe Casey McCaskill The Senator from Alabama. Specter Mr. KYL. Mr. President, reserving Coleman Menendez Stabenow the right to object, but I will not ob- Mr. SHELBY. Mr. President, Senator Collins Mikulski Tester Durbin Murray ject, it is my understanding it would be DODD and I agreed to provide an addi- Voinovich tional $100 million for foreclosure Feingold Nelson (FL) the intention of the majority leader Feinstein Nelson (NE) Whitehouse that immediately following the prayer counseling. This is already in addition Harkin Pryor Wyden to the $180 million provided for the and pledge and the opening of the ses- NAYS—40 sion, we would begin the votes, that same purpose earlier. Alexander Dole Martinez there would not be a long period of It is my strong belief that we should Allard Ensign McConnell leader time taken in speaking by the conduct some due diligence on the Barrasso Enzi Murkowski leaders; is that correct? money we have already provided to en- Bennett Graham Roberts Brownback Grassley The PRESIDING OFFICER. The ma- sure that it is being spent properly Sessions Burr Gregg Shelby jority leader. and, most importantly, that it is actu- Chambliss Hagel Mr. REID. I say to my friend, I am Stevens ally helping people. Coburn Hatch Sununu Cochran Hutchison always very short in my speeches. But Thune In the interest of reaching an accom- Corker Inhofe we will have to talk to Senator MCCON- Vitter modation, I agreed to provide an addi- Cornyn Isakson NELL. I am happy to set a good example Warner tional $100 million. It is in the amend- Craig Kyl and have about a minute and a half. DeMint Lieberman Wicker Mr. KYL. I appreciate that very ment. This brings the total spending Dodd Lugar for counseling for 2008 up to $280 mil- much. I do not object, therefore. NOT VOTING—16 Mr. DODD. Mr. President, I said 7:40. lion, an amount that represents a $238 million increase from last year. That is Biden Conrad Lautenberg Let me modify the request and say 7:30. Bingaman Crapo McCain I was trying to provide a little leeway. a lot of money. Boxer Domenici Obama The PRESIDING OFFICER. Without If there is a gap between what we Bunning Dorgan Webb Byrd Inouye objection, it is so ordered. have provided and what is needed, that Clinton Kennedy The Senator from Arizona. need can be addressed through the nor- The PRESIDING OFFICER. On this AMENDMENT NO. 4397 mal appropriations process. Mr. KYL. Mr. President, with respect vote, the yeas are 44, the nays are 40. I think a point of order has already Three-fifths of the Senators duly cho- to Murray-Schumer amendment No. been raised. I hope it will be sustained. 4397, I make a point of order that the sen and sworn not having voted in the The PRESIDING OFFICER. All time amendment violates section 201(a) of S. affirmative, the motion is rejected. has expired. Con. Res. 21 of the 110th Congress. The point of order is sustained and The PRESIDING OFFICER. The Sen- The question is on agreeing to the the amendment falls. ator from Washington. motion to waive. AMENDMENT NO. 4407 Mrs. MURRAY. Mr. President, pursu- The yeas and nays were previously The PRESIDING OFFICER. The ant to section 201(b) of S. Con. Res. 21 ordered. question is on agreeing to the Kyl of the 110th Congress, I move to waive The clerk will call the roll. amendment No. 4407. The Senator from Montana is recog- the point of order for the consideration The bill clerk called the roll. of the pending amendment, and I ask nized. for the yeas and nays. Mr. DURBIN. I announce that the Mr. BAUCUS. Mr. President, I raise a The PRESIDING OFFICER. Is there a Senator from Delaware (Mr. BIDEN), point of order that the pending amend- sufficient second? the Senator from New Mexico (Mr. ment violates section 401 of Senate There appears to be a sufficient sec- BINGAMAN), the Senator from Cali- Concurrent Resolution 21 of the con- ond. fornia (Mrs. BOXER), the Senator from current resolution for the budget for The yeas and nays were ordered. West Virginia (Mr. BYRD), the Senator fiscal year 2008. The PRESIDING OFFICER. Under from New York (Mrs. CLINTON), the The PRESIDING OFFICER. The Sen- the order, there are 2 minutes to be Senator from North Dakota (Mr. ator from Arizona is recognized. equally divided for debate. CONRAD), the Senator from North Da- Mr. KYL. Mr. President, under sec- The Senator from Washington. kota (Mr. DORGAN), the Senator from tion 904, I move to waive the Budget Mrs. MURRAY. Mr. President, what Hawaii (Mr. INOUYE), the Senator from Act, and I will ask for the yeas and our amendment simply does is provide Massachusetts (Mr. KENNEDY), the Sen- nays after the presentation by Senator an additional $100 million for coun- ator from New Jersey (Mr. LAUTEN- BAUCUS and myself. seling so families do not go into fore- BERG), the Senator from Illinois (Mr. The PRESIDING OFFICER. Who closure. There is $15 billion in spending OBAMA), and the Senator from Virginia yields time on the motion to waive? in this underlying bill, all of which is (Mr. WEBB) are necessarily absent. Mr. BAUCUS. Mr. President, I will being declared an emergency. It seems Mr. KYL. The following Senators are take 30 seconds out of my time. to me that $100 million of it, which is necessarily absent: the Senator from This is not a proper amendment— a small additional amount compared to Kentucky (Mr. BUNNING), the Senator Mr. DODD. Mr. President, the Senate that $15 billion, that we know has a 96- from Idaho (Mr. CRAPO), the Senator is not in order. The PRESIDING OFFICER. The Sen- percent success rate of keeping fami- from New Mexico (Mr. DOMENICI), and lies in their home so they do not go the Senator from Arizona (Mr. ate will be in order. Mr. BAUCUS. Mr. President, this into foreclosure, is a very smart invest- MCCAIN). ment. amendment essentially indexes the Further, if present and voting, the I think it would be very foolish to capital gains exclusion for the sale of a Senator from Kentucky (Mr. BUNNING) block this on a budget point of order home. The problem is that homes are would have voted ‘‘no.’’ because it is one of the few issues in decreasing in value, not that they are this bill that will actually keep people The PRESIDING OFFICER. Are there increasing, and most people who are in their homes and prevent this crisis any other Senators in the Chamber de- trying to sell their homes have a much from getting larger. siring to vote? lower market value for their house. I urge my colleagues to vote against The yeas and nays resulted—yeas 44, Therefore, this is not a necessary pro- the budget point of order. nays 40, as follows: vision for them.

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00056 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.098 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2423 This amendment would apply to oth- from North Dakota (Mr. CONRAD), the The PRESIDING OFFICER. Without ers who are not subprime candidates Senator from North Dakota (Mr. DOR- objection, it is so ordered. who are in good shape and have noth- GAN), the Senator from Hawaii (Mr. AMENDMENT NO. 4389, AS MODIFIED ing to do with the subprime issue, and INOUYE), the Senator from Massachu- Mr. ROBERTS. Mr. President, I ask I don’t think we want to index for setts (Mr. KENNEDY), the Senator from unanimous consent that the pending them at this point. It is $50 billion that New Jersey (Mr. LAUTENBERG), the Sen- Landrieu amendment be modified to is the cost. It is unpaid for. This swal- ator from Illinois (Mr. OBAMA), and the include my amendment No. 4422. lows up the housing bill. This is not the Senator from Virginia (Mr. WEBB) are The PRESIDING OFFICER. Without proper time, and that is why the point necessarily absent. objection, the amendment will be so of order should stand because it vio- Mr. KYL. The following Senators are modified. lates the budget. necessarily absent: the Senator from The amendment, as modified, is as The PRESIDING OFFICER. The Sen- Kentucky (Mr. BUNNING), the Senator follows: ate will be in order. from Idaho (Mr. CRAPO), the Senator At the end add the following: The Senator from Arizona is recog- from New Mexico (Mr. DOMENICI), and TITLE l—HURRICANE-RELATED nized. the Senator from Arizona (Mr. CASUALTY LOSSES Mr. KYL. Mr. President, this amend- MCCAIN). SEC. l01. USE OF AMENDED INCOME TAX RE- ment is very simple. We all know that Further, if present and voting, the TURNS TO TAKE INTO ACCOUNT RE- CEIPT OF CERTAIN HURRICANE-RE- for individuals, there is a $250,000 ex- Senator from Kentucky (Mr. BUNNING) LATED CASUALTY LOSS GRANTS BY clusion from capital gain when you sell would have voted ‘‘yes.’’ DISALLOWING PREVIOUSLY TAKEN your owner-occupied property. For a The PRESIDING OFFICER. Are there CASUALTY LOSS DEDUCTIONS. couple, it is $500,000. But just like the any other Senators in the Chamber de- Notwithstanding any other provision of AMT, it is not indexed for inflation. siring to vote? the Internal Revenue Code of 1986, if a taxpayer claims a deduction for any taxable This amendment indexes that for infla- The result was announced—yeas 41, year with respect to a casualty loss to a per- tion. That is all it does. nays 44, as follows: sonal residence (within the meaning of sec- Now, to my colleague saying that [Rollcall Vote No. 90 Leg.] tion 121 of such Code) resulting from Hurri- home values are going down, here are YEAS—41 cane Katrina or Hurricane Rita and in a subsequent taxable year receives a grant under two statistics. I will cite one for the Alexander DeMint Martinez Public Law 109-148, 109-234, or 110-116 as reim- Nation and one for one State. Ten Allard Dole McConnell years ago, the median family priced Barrasso Ensign Murkowski bursement for such loss from the State of home was $146,000. Today, it is $247,000. Bayh Enzi Roberts Louisiana or the State of Mississippi, such Bennett Graham taxpayer may elect to file an amended in- That is $100,000. In California, the me- Sessions Bond Grassley Shelby come tax return for the taxable year in dian price 10 years ago was $186,000, Brownback Gregg Smith which such deduction was allowed and dis- roughly. It was $409,000 in February of Burr Hagel Specter allow such deduction. If elected, such amend- Chambliss Hatch Stevens this year, an increase of $222,000. The Coburn Hutchison ed return must be filed not later than the Sununu reality is that inflation has caused a Cochran Inhofe due date for filing the tax return for the tax- Thune tremendous increase in the value of Coleman Isakson able year in which the taxpayer receives Vitter homes, and when they are sold, people Cornyn Kyl such reimbursement or the date that is 4 Craig Lugar Wicker are going to have to pay the capital months after the date of the enactment of NAYS—44 this Act, whichever is later. Any increase in gains tax above $250,000. Federal income tax resulting from such dis- Could we have order? Akaka Johnson Pryor allowance shall not be subject to any penalty Baucus Kerry Reed The PRESIDING OFFICER. The Sen- or interest under such Code if such amended ate will be in order. Bingaman Klobuchar Reid Brown Kohl Rockefeller return is so filed. The Senator’s time has expired. Cantwell Landrieu Salazar TITLE l—GO ZONE PROPERTY Cardin Leahy Mr. KYL. Well, Mr. President, might Sanders SEC. l01. WAIVER OF DEADLINE ON CONSTRUC- Carper Levin I ask unanimous consent for 15 seconds Schumer TION OF GO ZONE PROPERTY ELIGI- Casey Lieberman Snowe BLE FOR BONUS DEPRECIATION. to make the point that the cost of this Collins Lincoln Stabenow (a) IN GENERAL.—Subparagraph (B) of sec- is $2.1 billion over 5 years, not the Corker McCaskill Tester Dodd Menendez tion 1400N(d)(3) of the Internal Revenue Code number the chairman indicated. Voinovich Durbin Mikulski of 1986 is amended to read as follows: Mr. BAUCUS. Mr. President, on my Feingold Murray Warner ‘‘(B) without regard to ‘and before January remaining time, the cost is $15 billion Feinstein Nelson (FL) Whitehouse 1, 2009’ in clause (i) thereof,’’. Wyden over 10 years. Harkin Nelson (NE) (b) EFFECTIVE DATE.—The amendment Mr. KYL. Ten years. NOT VOTING—15 made by this section shall apply to property Mr. BAUCUS. We are taking 10-year placed in service after December 31, 2007. Biden Conrad Kennedy numbers here. That is all we are talk- Boxer Crapo Lautenberg TITLE l—DISASTER TAX RELIEF ing about is 10 years, $15 billion. Bunning Domenici McCain ASSISTANCE Second, this is not targeted to people Byrd Dorgan Obama SEC. lll. TEMPORARY TAX RELIEF FOR KIOWA who need it the most. Who needs it the Clinton Inouye Webb COUNTY, KANSAS AND SUR- The PRESIDING OFFICER. On this ROUNDING AREA. most are those people whose homes are The following provisions of or relating to declining in value, not those homes vote, the yeas are 41, the nays are 44. the Internal Revenue Code of 1986 shall that are increasing in value. Three-fifths of the Senators duly cho- apply, in addition to the areas described in The PRESIDING OFFICER. All time sen and sworn not having voted in the such provisions, to an area with respect to has expired. affirmative, the motion is rejected, the which a major disaster has been declared by The question is on agreeing to the point of order is sustained, and the the President under section 401 of the Robert motion to waive the Budget Act. amendment falls. T. Stafford Disaster Relief and Emergency Mr. KYL. Mr. President, I thought Mr. DODD. Mr. President, I move to Assistance Act (FEMA-1699-DR, as in effect reconsider the vote, and I move to lay on the date of the enactment of this Act) by the yeas and nays had been ordered, reason of severe storms and tornados begin- but I ask for the yeas and nays. that motion on the table. ning on May 4, 2007, and determined by the The PRESIDING OFFICER. Is there a The motion to lay on the table was President to warrant individual or individual sufficient second? agreed to. and public assistance from the Federal Gov- There is a sufficient second. Mr. DODD. Mr. President, I suggest ernment under such Act with respect to The clerk will call the roll. the absence of a quorum. damages attributed to such storms and tor- The legislative clerk called the roll. The PRESIDING OFFICER. The nados: Mr. DURBIN. I announce that the clerk will call the roll. (1) SUSPENSION OF CERTAIN LIMITATIONS ON PERSONAL CASUALTY LOSSES.—Section Senator from Delaware (Mr. BIDEN), The legislative clerk proceeded to 1400S(b)(1) of the Internal Revenue Code of the Senator from California (Mrs. call the roll. 1986, by substituting ‘‘May 4, 2007’’ for ‘‘Au- BOXER), the Senator from West Vir- Mr. ROBERTS. Mr. President, I ask gust 25, 2005’’. ginia (Mr. BYRD), the Senator from unanimous consent that the order for (2) EXTENSION OF REPLACEMENT PERIOD FOR New York (Mrs. CLINTON), the Senator the quorum call be rescinded. NONRECOGNITION OF GAIN.—Section 405 of the

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00057 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.100 S03APPT1 ccoleman on PRODPC75 with SENATE S2424 CONGRESSIONAL RECORD — SENATE April 3, 2008 Katrina Emergency Tax Relief Act of 2005, after August 25, 2005, and before January 1, don, KY, was killed while engaging the by substituting ‘‘on or after May 4, 2007, by 2007’’ in subsection (a)(4)(A)(i), enemy in a firefight near Ramadi, Iraq, reason of the May 4, 2007, storms and tor- (C) by substituting ‘‘qualified storm dis- on February 3, 2006. He was 33 years nados’’ for ‘‘on or after August 25, 2005, by tribution’’ for ‘‘qualified Katrina distribu- old. reason of Hurricane Katrina’’. tion’’ each place it appears, As a special operations soldier, Ser- (3) EMPLOYEE RETENTION CREDIT FOR EM- (D) by substituting ‘‘after November 4, PLOYERS AFFECTED BY MAY 4 STORMS AND TOR- 2006, and before May 5, 2007’’ for ‘‘after Feb- geant First Class Cornett was among NADOS.—Section 1400R(a) of the Internal Rev- ruary 28, 2005, and before August 29, 2005’’ in the most elite of the men and women enue Code of 1986— subsection (b)(2)(B)(ii), who make up our fighting forces. A (A) by substituting ‘‘May 4, 2007’’ for ‘‘Au- (E) by substituting ‘‘beginning on May 4, veteran of nearly 15 years, he received gust 28, 2005’’ each place it appears, 2007, and ending on November 5, 2007’’ for many awards, medals, and decorations (B) by substituting ‘‘January 1, 2008’’ for ‘‘beginning on August 25, 2005, and ending on throughout his career, including nine ‘‘January 1, 2006’’ both places it appears, and February 28, 2006’’ in subsection (b)(3)(A), Army Achievement Medals, four Army (C) only with respect to eligible employers (F) by substituting ‘‘qualified storm indi- who employed an average of not more than vidual’’ for ‘‘qualified Hurricane Katrina in- Commendation Medals, the Joint Serv- 200 employees on business days during the dividual’’ each place it appears, ice Commendation Medal, the Defense taxable year before May 4, 2007. (G) by substituting ‘‘December 31, 2007’’ for Meritorious Service Medal, the Purple (4) SPECIAL ALLOWANCE FOR CERTAIN PROP- ‘‘December 31, 2006’’ in subsection (c)(2)(A), Heart, and three Bronze Star Medals ERTY ACQUIRED ON OR AFTER MAY 5, 2007.—Sec- (H) by substituting ‘‘beginning on June 4, for Valor. tion 1400N(d) of such Code— 2007, and ending on December 31, 2007’’ for As a highly trained member of a spe- (A) by substituting ‘‘qualified Recovery ‘‘beginning on September 24, 2005, and ending cial operations team, Sergeant First Assistance property’’ for ‘‘qualified Gulf Op- on December 31, 2006’’ in subsection portunity Zone property’’ each place it ap- Class Cornett also earned the pres- (c)(4)(A)(i), tigious Ranger and Sapper tabs. pears, (I) by substituting ‘‘May 4, 2007’’ for ‘‘Au- (B) by substituting ‘‘May 5, 2007’’ for ‘‘Au- gust 25, 2005’’ in subsection (c)(4)(A)(ii), and ‘‘He was a very dedicated soldier, lov- gust 28, 2005’’ each place it appears, (J) by substituting ‘‘January 1, 2008’’ for ing husband, and devoted father and (C) by substituting ‘‘December 31, 2008’’ for ‘‘January 1, 2007’’ in subsection (d)(2)(A)(ii). grandfather,’’ says Lance’s wife, San- ‘‘December 31, 2007’’ in paragraph (2)(A)(v), VOTE EXPLANATIONS dra. ‘‘Lance lived by and died by the (D) by substituting ‘‘December 31, 2009’’ for words ‘Don’t Ever Give Up.’ He taught ‘‘December 31, 2008’’ in paragraph (2)(A)(v), Mr. DURBIN. Mr. President, my col- (E) by substituting ‘‘May 4, 2007’’ for ‘‘Au- league from Delaware, Senator BIDEN, us all to do the same.’’ gust 27, 2005’’ in paragraph (3)(A), was unable to get back to the Capitol Lance’s 10-year-old daughter, Chey- (F) by substituting ‘‘January 1, 2009’’ for in time for the two rollcall votes to- enne, adds simply, ‘‘I hope to follow in ‘‘January 1, 2008’’ in paragraph (3)(B), and night. my dad’s footsteps one day, and it was (G) determined without regard to para- He is a cochair of the Congressional truly an honor to be his daughter. He graph (6) thereof. was a true American soldier.’’ (5) INCREASE IN EXPENSING UNDER SECTION Fire Services Caucus and, at the time of the votes tonight, he was addressing Lance’s father, Rhudell Cornett, 179.—Section 1400N(e) of such Code, by sub- served as a Marine for 22 years, rising stituting ‘‘qualified section 179 Recovery As- his many friends in the fire service who sistance property’’ for ‘‘qualified section 179 were attending the 20th Annual Na- to the rank of master gunnery ser- Gulf Opportunity Zone property’’ each place tional Fire and Emergency Services geant. But having a Marine sergeant it appears. Dinner. for a father did not stop young Lance (6) EXPENSING FOR CERTAIN DEMOLITION AND Mrs. BOXER. Mr. President, had I from sometimes getting into trouble. CLEAN-UP COSTS.—Section 1400N(f) of such I’ll let his mother, Karen McMullen, Code— been present for the vote today to table the Durbin amendment to help families explain. (A) by substituting ‘‘qualified Recovery ‘‘While Lance’s father was in the Ma- save their homes in bankruptcy, I Assistance clean-up cost’’ for ‘‘qualified Gulf rines, when Lance was three and his Opportunity Zone clean-up cost’’ each place would have cast a vote of nay. I am a sister was four, and we were tempo- it appears, and cosponsor and strong supporter of the rarily assigned to a base in Albany, (B) by substituting ‘‘beginning on May 4, Durbin proposal, which could have GA, Lance decided to use the neigh- 2007, and ending on December 31, 2009’’ for helped more than 600,000 of these finan- ‘‘beginning on August 28, 2005, and ending on bor’s golf cart and take his sister for a cially troubled families keep their December 31, 2007’’ in paragraph (2) thereof. ride,’’ she says. ‘‘They went through homes by allowing them to modify (7) TREATMENT OF PUBLIC UTILITY PROPERTY the side of a trailer.’’ their mortgages in bankruptcy. DISASTER LOSSES.—Section 1400N(o) of such Growing up, young Lance loved to Code. Mr. ROBERTS. I suggest the absence camp, fish, ski, and go caving. He en- (8) TREATMENT OF NET OPERATING LOSSES of a quorum. joyed outdoor sports. He collected ATTRIBUTABLE TO STORM LOSSES.—Section The PRESIDING OFFICER. The dragon figurines. ‘‘Eye of the Tiger,’’ 1400N(k) of such Code— clerk will call the roll. (A) by substituting ‘‘qualified Recovery from the movie ‘‘Rocky III,’’ was his The assistant legislative clerk pro- Assistance loss’’ for ‘‘qualified Gulf Oppor- favorite song. tunity Zone loss’’ each place it appears, ceeded to call the roll. Lance’s sister, Cristal Chesnut, has (B) by substituting ‘‘after May 3, 2007, and Mr. DODD. Mr. President, I ask unan- fond memories of her brother. ‘‘He was before on January 1, 2010’’ for ‘‘after August imous consent that the order for the my best friend,’’ Cristal says. ‘‘We 27, 2005, and before January 1, 2008’’ each quorum call be rescinded. place it appears, went to school together. We worked to- The PRESIDING OFFICER. Without gether at McDonald’s and we did every- (C) by substituting ‘‘May 4, 2007’’ for ‘‘Au- objection, it is so ordered. gust 28, 2005’’ in paragraph (2)(B)(ii)(I) there- thing together.’’ of, f Lance went on to graduate from Lon- (D) by substituting ‘‘qualified Recovery MORNING BUSINESS don’s Laurel County High School. Fol- Assistance property’’ for ‘‘qualified Gulf Op- lowing in the footsteps of his father portunity Zone property’’ in paragraph Mr. DODD. Mr. President, I ask unan- and other veteran relatives, Lance en- (2)(B)(iv) thereof, and imous consent that the Senate proceed listed in the U.S. Army as an infantry- (E) by substituting ‘‘qualified Recovery As- to a period for the transaction of morn- sistance casualty loss’’ for ‘‘qualified Gulf man in August 1991. ing business, with Senators permitted He made the Army his career and Opportunity Zone casualty loss’’ each place to speak for up to 10 minutes each. it appears. sought to advance as far as he could, (9) TREATMENT OF REPRESENTATIONS RE- The PRESIDING OFFICER. Without eventually becoming a special oper- GARDING INCOME ELIGIBILITY FOR PURPOSES OF objection, it is so ordered. ations soldier. Special operations sol- QUALIFIED RENTAL PROJECT REQUIREMENTS.— f diers serve as the tip of the spear in Section 1400N(n) of such Code. our country’s war on terrorism. Ser- HONORING OUR ARMED FORCES (10) SPECIAL RULES FOR USE OF RETIREMENT geant First Class Cornett had to en- FUNDS.—Section 1400Q of such Code— SERGEANT FIRST CLASS LANCE S. CORNETT dure rigorous military training to earn (A) by substituting ‘‘qualified Recovery Assistance distribution’’ for ‘‘qualified hurri- Mr. MCCONNELL. Mr. President, I that position. cane distribution’’ each place it appears, rise today to speak for a soldier from That training included successful (B) by substituting ‘‘on or after May 4, Kentucky who has fallen in the war on completion of the air assault course, 2007, and before January 1, 2009’’ for ‘‘on or terror. SFC Lance S. Cornett of Lon- the basic airborne course, the sniper

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00058 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.027 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2425 course, the special forces diving super- Lance the day he died. This soldier coverage, small businesses and the self- visor course, and the military freefall stayed with Lance for 45 minutes after employed experience these problems jumpmaster course. he had been shot, covering him and most acutely. I mentioned earlier that Sergeant sheltering him in a ditch until he could Workers in the smallest businesses First Class Cornett also earned his be recovered. are almost three times as likely to be Ranger and Sapper tabs. That meant He received the Silver Star for his uninsured as those who work for the he had successfully completed combat heroic efforts. ‘‘He is a wonderful largest businesses. leadership training at the Army’s man,’’ Lance’s mother Karen said And when you look at who makes up Ranger school and in a Sapper leader about the warrior who became like a the uninsured, you find that over 60 course. brother to her son on his last day on percent are either self-employed or Lance was eventually assigned to the this Earth. work for business with fewer than 100 HHC Company, U.S. Army Special Op- Mr. President, my prayers are with employees. erations Command, based in Fort the Cornett family after the tragic loss This disparity is not because small Bragg, NC. His father, Rhudell, bought of their husband, father, brother and businesses don’t want to offer health Lance a huge sword with a skull and son. We are thinking today of his wife, insurance. It occurs because small crossbones on it that became his unit’s Sandra S. Cornett; his daughter, businesses face more obstacles than official team logo. Breanna Cheyenne Cornett; his step- large employers when they seek cov- Even while remaining the consum- children, Christopher Hart and Brandy erage. mate soldier, Lance never lost sight of Hart Rudy and her husband, Benjamin Administrative costs for health in- the simple pleasures of helping others. Rudy; his mother, Karen McMullen; his surance are higher for small businesses His wife, Sandra, tells us one story sister, Cristal Chesnut and her hus- than larger businesses. About 20–25 per- that illustrates this. band, Jimmy, and their son, Jesse; his cent of a small business’s premium ‘‘We were in London one winter and step-grandchildren, Logan and Taylor goes to administrative expenses, com- it was really cold outside and snow- Rudy; his grandmother, Mary Lou pared to about 10 percent for large em- ing,’’ Sandra recalls. ‘‘We passed a Egan his uncle Rayne Smith, along ployers. Small businesses are less able homeless man. Lance went down the with his wife Pam and their family; his to spread the risk of someone getting street and went back until he found uncle Warren ‘‘Jopo’’ Egan, along with sick than large employers. Even a sin- [him and] he gave him the coat off of his wife Patti and their family; and gle employee with a serious medical his back and all of the money he had. many other beloved family members condition can cause a dramatic in- He was that type of person.’’ and friends. Since Lance’s passing, his crease in a small business’s health in- His mother, Karen, tells another father, Rhudel Cornett, has also sadly surance premium. Small businesses are story that reveals the same sense of left us. also more likely to have lower wages caring and compassion in the man ev- I have tried to describe Lance and narrower profit margins than large eryone else called ‘‘Lance,’’ but she Cornett as best I can, Mr. President, businesses, making it more difficult for called ‘‘Lanny.’’ but his mother, Karen, knows and un- employers and employees to cover the ‘‘Lance came home on leave before he derstands her son more than I could cost of health coverage. Our bill ad- was married,’’ she says. ‘‘His uncle ever hope to. So I will let her have the dresses each of these problems. This is Rayne Smith wanted to build a brick closing words. not comprehensive health care reform. ‘‘He was and is the finest man I’ve firepit in his back yard. He asked We leave that to the next President. ever known, and it was an honor to be Lanny to help him. They went to buy But our legislation addresses one of his mom,’’ she says. the bricks and then Rayne said, ‘I don’t It is also an honor for this U.S. Sen- the most serious weaknesses in our know how many to get.’ ate to pay tribute to SFC Lance S. current health coverage system, by ‘‘Lanny said, ‘Let’s put it together Cornett’s lifetime of service. He gave making health coverage more acces- here in the parking lot and then we’ll his life in the performance of that serv- sible and affordable for small busi- know for sure.’ They built the entire ice. Our Nation is richer today for the nesses and the self-employed. IN- firepit in the parking lot before bring- sacrifice he made on behalf of free- More than a year ago, Senator L COLN and I reached out to the National ing the bricks home.’’ dom’s cause. Lance got married on February 10, Federation of Independent Business 1996, to Sandra S. Cornett at the Laurel f and the National Association of Real- County Courthouse. Together they SMALL BUSINESS HEALTH tors to see if it was possible to find raised three wonderful children, Bran- OPTIONS PROGRAM (SHOP) ACT common ground on an issue that pre- dy Hart Rudy, Christopher Hart, and Mr. DURBIN. Mr. President, yester- viously could not move forward in a Breanna Cheyenne Cornett. day I introduced a bipartisan bill with closely divided Senate. We indicated a When Lance was home with his fam- Senator SNOWE, Senator LINCOLN, and willingness to make changes to the ap- ily, he would enjoy their company, and Senator COLEMAN to make health cov- proach we took during the previous get down on the floor to play with his erage more accessible and affordable Congress, and they expressed a desire children. One time his mother asked for small businesses and the self-em- to work with us to try to find a middle him, ‘‘How do you do what you do?’’ ployed. ground that would allow us to move Lance said to her, ‘‘I turn my base- In Illinois and across the Nation, forward in a bipartisan manner. ball cap the right way when I’m home families and individuals agonize over Over the course of many months, we and backwards when I’m not. I sepa- the availability and rising cost of have succeeded in finding that middle rate my work from my life.’’ But health insurance. Those who don’t have ground. With the contributions of Sen- whether at home or at work, Lance ex- health insurance desperately want it. ators SNOWE and COLEMAN, we have de- celled at and was loved in both. And those who have health coverage veloped a bill that provides practical Lance was buried in Manchester, KY, realize how easily they could lose it. solutions to the very real problems and his uncle Rayne delivered the eu- Health insurance premiums continue small businesses and the self-employed logy at the funeral. In London, Eng- to rise faster than wages and the rate face in today’s health insurance sys- land, they also held a memorial serv- of inflation, placing a great strain on tem. ice. This was because Lance’s special businesses and family budgets. Our bill has three core elements: pur- operations unit had once served along- We are seeing the consequences. Peo- chasing pools for small businesses and side a British unit, and Lance earned ple are less likely to receive health the self-employed; health insurance so much respect from these men that coverage through their employer today rating reforms; and tax credits. they created a memorial to him and than in 2000. And the number of unin- Our bill would create incentives for just this last November 11, Veterans sured Americans has soared to 47 mil- States to establish purchasing pools Day, placed a wreath there to honor his lion, largely because of this drop in em- and would create a national pool that life. ployer-sponsored coverage. we call SHOP, the Small Business Recently, Lance’s family received a While everyone is struggling with ris- Health Options Program, for small visit from a soldier who was with ing health costs and reduced health businesses with up to 100 employees

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00059 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.032 S03APPT1 ccoleman on PRODPC75 with SENATE S2426 CONGRESSIONAL RECORD — SENATE April 3, 2008 and for the self-employed. Purchasing SMALL BUSINESS HEALTH PLAN on their own. This purchasing power pools will lower administrative costs, ACT OF 2008 will allow them to negotiate for better provide more private health insurance Mr. ENZI. Mr. President, I wish to prices and greater benefits. Just like plans for employers and employees to discuss the cost of health care and big businesses do. choose from, and enhance competition what the Senate can do this year to A report prepared by an independent by making it easier to compare those make health care more affordable for analyst found that Small Business plans and pick the one that best meets America’s working families. Health Plans would reduce health in- particular needs. Last summer I introduced a bill, Ten surance costs for small business by 12 Our bill would prohibit insurers from Steps to Transform Healthcare in percent—in today’s dollars, about setting premiums based on health sta- America, which if enacted would pro- $1,000 per employee—and would reduce tus in both the national SHOP pool and vide every American with private the number of uninsured in working in States’ small group markets. Over health insurance. To help spread the families by 8 percent, or approximately time, the rating rules in SHOP would word and get some suggestions and 1 million people. That is real relief. reduce insurers’ ability to use other comments from the people of Wyo- The American people overwhelm- factors in setting premiums in order to ming, I took it on the road and headed ingly support giving small businesses reduce the wide variation in premiums throughout our State, making 10 stops the same power that big companies that often exists today. The bill would to talk about my bill, Ten Steps to have to negotiate for better benefits provide incentives for states to adopt Transform Healthcare in America. and better prices. And small business similar rating rules. These rating I designed Ten Steps to be an evolv- owners for years have been asking for changes will make premiums more sta- ing product, something that could be the power that big businesses have, so ble from year to year and make cov- moved in pieces. I have found that Con- they can secure affordable health care erage more affordable for those who gress isn’t very successful doing things for their employees and their families. need it most. in a revolutionary way. I believe we Every day, emergency rooms treat To lower the cost of health coverage, can have success and accomplish real more than 30,000 uninsured Americans our bill would provide a tax credit to health care reform in an evolutionary who work for or depend on small busi- small businesses with up to 50 workers fashion. nesses. That is at least 30,000 reasons who pay at least 60 percent of their em- In just over 3 days we traveled over why we need to get something done ployees’ premiums. The size of the tax 1,200 miles, visited 10 towns, and met now to help create affordable, market- credit would be targeted to the size of with hundreds of Wyoming folks. They based choices for America’s small busi- the business. The full tax credit of all had one message for us—they are nesses and working families. $1,000 for self-only coverage and $2,000 worried about their health care, and so I am a former small business owner, for family coverage would be available am I. Of all of the Ten Steps, one in and I know something about the strug- to the smallest businesses, with the particular created a host of comments gle to provide affordable health cov- value of the tax credit phased down as and support: Step No. 4, Small Business erage to my own family and to my the size of the employer increases. Em- Health Plans. You see, 70 percent of the ‘‘work family.’’ And Senator NELSON is ployers who cover more than 60 percent people in Wyoming work for small a former State insurance commis- of the premium would be rewarded with businesses. They experience firsthand sioner, so he knows something about a bonus credit. the importance of protecting con- In addition, we would begin moving the challenges of finding affordable sumers. to a system where individual employ- health insurance and keeping it. So today I am introducing Step 4 of I also want to thank Senator GREGG ees would be able to choose their own my Ten Steps bill, the Small Business for his leadership on this issue. Senator health plan instead of having their em- Health Plans Act of 2008, to give a spe- GREGG has worked very hard to help ployer choose. Where rating rules per- cial level of focus to the need to find a find relief for small businesses, and I mit it, each worker would be able to way to help small businesses stem the very much appreciate his support and enroll in the health plan in SHOP that best meets his or her needs. tide of rising health care costs. They thank him for being a cosponsor of this The bill we have introduced reflects simply cannot keep up with the in- important legislation. our commitment to find reasonable creases and are clamoring for us in the Let’s take the first step toward more compromises and address the chal- Senate to do something, anything, to affordable health care for all Ameri- lenges faced by small employers and help. And do it now. cans by giving small business owners the self-employed. Small Business Health Plans is some- the power to create Small Business I am pleased that the National Fed- thing I have been working on for a Health Plans for themselves, their fam- eration of Independent Business and while with my friend, Senator BEN ilies, and their workers. Let’s give the National Association of Realtors NELSON. I want to thank Senator NEL- them the change they are seeking in- support the bill. SON for his leadership and expertise in stead of ‘‘more of the same’’ or more I am also delighted that this is a bi- this matter and for his steadfast sup- excuses for not acting. partisan bill. We reached out to Sen- port. I believe we can agree on 80 percent ator SNOWE last year, and she has made Step 4, the Small Business Health of the issues and on 80 percent of each valuable contributions to this bill. We Plans Act, will reduce the cost of issue. If we focus on that 80 percent, we are pleased that Senator COLEMAN also health care, especially for America’s can get things done. I have been and has joined us as a cosponsor of the bill. small business owners and working will continue to work with my col- I am also glad to say the Service Em- families. Today, of the 46 million peo- leagues and stakeholders to find that ployees International Union is supple without health insurance in this 80 percent on Small Business Health porting our bill. It is a true sign of our country, 12 million people own or work Plans to provide real relief for Amer- ability to find a reasonable middle for small businesses or live in families ica’s working families. The time for ac- ground that such a diverse group has that depend on small business wages. tion is now. come together to support this bill. Another 5 million are self-employed. f We recognize that other Senators, on That makes 17 million people who can’t both sides of the aisle, have a sincere afford decent health insurance right DHS APPOINTMENT FLEXIBILITY interest in addressing the problems now and would be helped by this bill. Mr. AKAKA. Mr. President, I rise to small businesses and the self-employed Small Business Health Plans, SBHPs, support a bill offered by my good friend are facing. We are committed to work- will allow business and trade associa- Senator VOINOVICH to treat the ap- ing with them to see if an even broader tions to band their members together pointment of the chief Human Capital consensus can be found. across State lines and offer group Officer, CHCO, at the Department of I hope my colleagues will take a health coverage to their employees. By Homeland Security, DHS, the same as close look at what we have developed banding groups of small businesses to- all other CHCO appointments. so far and join with us in the fight to gether on a regional or national basis, As part of the Homeland Security expand small businesses’ access to af- SBHPs create real purchasing power Act of 2002, Congress established fordable health insurance. that small businesses could never have CHCOs at Federal agencies to improve

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00060 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.002 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2427 workforce planning so agencies could fled by this seemingly unprovoked at- In the early days of my Senate ca- better meet their omissions. Agencies tack, investigators are not ruling out reer, Mary was instrumental in the be- were given the discretion whether to that Simmons may have been targeted ginnings of all aspects of running a designate the position as a political ap- based on his sexual orientation. U.S. Senate Office. She drafted and im- pointment or career civil servant. How- I believe that the Government’s first plemented the initial quality control ever, the act required the CHCO at duty is to defend its citizens, to defend procedures for all office documents, DHS to be a political appointee nomi- them against the harms that come out and correspondence. She managed the nated by the President. Where most of hate. Federal laws intended to pro- ‘‘conversion’’ of the office from type- agencies can select political or career tect individuals from heinous and vio- writers to computers—hard to fathom positions without having to go through lent crimes motivated by hate are woe- knowing what equipment we now have an external source, DHS has to go out- fully inadequate. This legislation at our fingertips. She also helped side its walls to have the President se- would better equip the Government to spearhead the first Utah Women’s Con- lect a person for this position. fulfill its most important obligation by ference, an annual event Elaine and I Throughout the Federal Government, protecting new groups of people as well have the pleasure of hosting for women the mix of political and career CHCOs as better protecting citizens already across Utah. From its beginnings with is almost equal. The important factor covered under deficient laws. I believe Jihan Sadat as the first keynote speak- is that each agency has the discretion that by passing this legislation and er to today, this conference has served to choose whether the CHCO position changing current law, we can change a vital purpose to bring together best fits into the framework of the hearts and minds as well. women from diverse backgrounds to agency and its human capital strategy f discuss the issues most important to as a political or civilian employee. their health and well-being. Her inno- DHS by statute does not have this COMMENDING THE PEACE CORPS vation and hard work, along with many flexibility. As such, we believe that Mr. CONRAD. Mr. President, I would others, has made this annual event the DHS should be treated like all other like to take a moment to commend the huge success that it is. Federal agencies and have the discre- Peace Corps and its volunteers for 47 Mary has worn many hats during her tion whether to make the position a years of service to our country. years of service: personal secretary, of- political or career civil service job. Our In 1960, John F. Kennedy challenged fice manager, legislative assistant, spe- bill would make the requirements for students to dedicate a portion of their cial assistant, and currently con- the CHCO position uniform for all lives to serving their country overseas stituent services representative. In agencies. in the cause of peace. A year later, as fact, she was even kind enough to DHS has faced many management President, he established the Peace wheel me to the Capitol for votes after challenges and integration issues. The Corps. And now, after 47 years, the I severed my Achilles tendon. She got DHS CHCO office has been working Peace Corps shines as a beacon of our pretty fast with my wheelchair. diligently to address the human capital commitment to the world. In her current position Mary helps challenges within DHS and through the Created to extend the volunteerism solve hundreds of constituent cases CHCO Council. The DHS CHCO has of the American people abroad, the each year that are brought to my at- partnered with other agencies to dis- Peace Corps has sent more than 190,000 tention by Utahns needing help work- cover best practices and tackle dif- citizens to nearly 140 countries as ing with the Federal Government. ficult issues of succession planning, ad- grassroots ambassadors of American Mary’s areas of expertise include: vet- ministration transition planning, hir- goodwill. They have made lasting con- erans and military affairs, transpor- ing strategies, and workforce flexibili- tributions in fields like agriculture, tation issues, and the U.S. Postal Serv- ties. CHCOs’ work is critical to the education, health care, and the envi- ice. While working with constituents, support of effective government man- ronment. Mary has always conveyed her warmth agement and strategic workforce plan- Twenty-seven North Dakotans cur- and deep caring for each person. Per- ning. Given DHS’s critical mission and rently serve in the Peace Corps. I know haps her work is summed up best in the the fact that it continues to remain on many individuals who volunteered words of gratitude expressed to Mary the Government Accountability Office their service. What I have heard of by a happy constituent: ‘‘What would High-Risk List, it is important to give their experiences is truly remarkable. we have done without you? You are our DHS the same flexibility as other Fed- President Kennedy challenged us to hero. I want to thank you for never eral agencies in appointing its CHCO. ask what we can do for our country. giving up. . .Thank you for making all I urge my colleagues to support this The men and women of the Peace Corps the difference in the world to my mom bill. rise to that challenge. Through their and us.’’ f service, they demonstrate to the world Even in the face of severe adversity, that America and her people truly do she always came to work each day with THE MATTHEW SHEPARD ACT OF care. a smile on her face and a willingness to 2007 f get the job done. I have always admired Mr. SMITH. Mr. President, I rise Mary for her courage and fortitude. As today to speak about the need for hate HONORING MARY LANGSTON a single mother for many years, she crimes legislation. Each Congress, Sen- TAYLOR raised three wonderful boys—Robby, ator KENNEDY and I introduce hate Mr. HATCH. Mr. President, thank David, and James. She has taught crimes legislation that would strength- you for the opportunity today to pay them well and has sacrificed many en and add new categories to current tribute to a wonderful woman, dedi- things for the happiness of her chil- hate crimes law, sending a signal that cated public servant and loyal friend— dren. Mary is not only the proud moth- violence of any kind is unacceptable in Ms. Mary Langston Taylor. Mary is reer of these three boys but the loving our society. Likewise, each Congress I tiring from my staff on May 1, 2008, stepmother to five children she was have come to the floor to highlight a after 31 years of dedicated service. fortunate to inherit when she wed separate hate crime that has occurred Mary has been with me from the be- Brian Taylor. They have formed a won- in our country. ginning. She joined my staff on Janu- derful partnership and it is always a On the night of January 21, 2008, in ary 1, 1977, the first week I was in of- pleasure to see them together. Charleston, SC, Adolphus Simmons was fice. You could say we have literally In addition to her Senate service, shot to death on the steps of his apart- grown up in this job together. I believe Mary has been a tireless advocate for ment. According to reports, Simmons the very first assignment I ever gave conservative ideals, and women’s had been dressed as a woman when the her was to take dictation for letters I issues. She has served as the president attack occurred. Friends say that Sim- wanted to send to all of my new col- of the Professional Republican Women mons, an 18-year-old transgender per- leagues. She didn’t miss a word then of Utah, is a member of the Women’s son, often dressed in women’s clothes. and is still one of the fastest people I State Legislative Council, and is cur- Sadly, the suspect charged with Sim- know at shorthand—a vanishing talent rently finishing her term as the presi- mons’ murder is only 15 years old. Baf- I might add. dent of the Salt Lake Council of

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Some countries, such as Bot- indicators and educate women on what the highlights of which was riding in a swana, were literally on a path to ex- resources are available to those in motorcade when President John F. tinction, with rates of HIV infection need. Kennedy visited Portland, ME. In addi- among pregnant women in some loca- Mr. President. I am truly grateful for tion, Rose Ann volunteered at the St. tions reaching as high as 40 and even 50 the service Mary Taylor has given to Vincent De Paul soup kitchen and was percent. In South Africa, while a third me, to our community, and to Utah. I known for her weekly trips to Bruns- of pregnant woman were infected with will miss Mary tremendously but know wick, ME to make her famous meatball the virus, the country’s political lead- that life holds many exciting and won- recipe for Vincenzo’s, a restaurant ers were actually denying that AIDS derful new opportunities for her to owned by her brother Andy. was caused by HIV infection, an omi- enjoy. When I think of the best way to With a marriage that is an enduring nous sign that little help was on the describe Mary, the word ‘‘loyal’’ just inspiration to us all and a standing tes- way for the over 4 million South Afri- seems to fit. Mary is a loyal friend, tament to their mutual devotion and cans—over 10 percent of the popu- mother, wife, and has been a tremen- love, Tony and Rose Mangino today are lation—dying of AIDS. dously loyal staff member for 31 years. the proud grandparents of three grand- In 2003, if a woman in sub-Saharan Someone once said: ‘‘Loyalty cannot be children, Christopher McCannell of Africa was infected with HIV, the fa- blueprinted. It cannot be produced on Washington, DC, Michael Fox of Den- miliar story was all too oft-repeated. an assembly line. In fact, it cannot be ver, CO, and Jennifer Fox, also of Den- She would very likely watch her hus- manufactured at all, for its origin is ver. They are also blessed with two band die first, and then her youngest the human heart.’’ This is Mary—her great-grandchildren, Zack and Coby children would also become infected ei- heart is pure and she is loyal to all. Fox, sons of Michael and his wife Ei- ther at birth or through breastfeeding, I want to wish Mary the very best in as she languished under her own death retirement and want her to know that leen Fox. I couldn’t be more pleased to join with the McCannell and Fox fami- sentence. Within a short time, her chil- I will pray for her continued good dren would be orphans, left to fend for health, success and happiness. May God lies in wishing Tony and Rose Mangino a happy diamond anniversary. themselves in the streets and slums of bless Mary and her family for her won- Nairobi, or Soweto, often getting sick derful service. f with their own HIV infections and f dying alone, without food or shelter or TRIBUTE TO MAJOR PERRY CELEBRATING THE MANGINOS’ medicine. JEFFERSON The sheer numbers at the time were DIAMOND ANNIVERSARY Mr. ALLARD. Mr. President, I rise staggering. The disease affected well Ms. SNOWE. Mr. President, I rise today to pay tribute to Major Perry over 20 million people in sub-Saharan today to honor and recognize the six- Jefferson. On April 3, 1969, Major Jef- Africa by the year 2000, roughly equiva- tieth wedding anniversary of Antonio ferson was an aerial observer on board lent to the total number of American and Rose Ann Mangino of Portland, ME an O–1G Bird Dog observation aircraft children under 6 years old. The problem on April 4, 2008. conducting a reconnaissance mission in seemed overwhelming, indeed hopeless. Originally born in Lewiston, ME, An- the Ninh Thuan Province of Vietnam What was the world doing to stop the tonio, Tony, graduated from Portland when the aircraft crashed. After an ex- carnage? Were there armies of doctors High School in 1942. He was the son of tensive search, Major Jefferson’s body sweeping in with the miracle drugs Camillo and Antoinette Mangino, who was not recovered and he was subse- that had been saving lives in America owned a small grocery store in Port- and other rich countries for nearly a quently listed Missing in Action. How- land. He had two brothers and three decade? No. The U.S. was spending ever, in 2001, after 32 years, a Viet- sisters. From 1943–1945, Tony served in under $200 million a year on HIV/AIDS namese national turned over remains the United States Army in the Third overseas, mostly on report-writing, that were identified to be that of Major Armored Division, where he was one of some condom marketing, and ‘‘capac- Jefferson. Today, Major Jefferson was the brave men who landed on the ity-building’’ programs that never ac- finally laid to rest in our nation’s most beaches of Normandy, 13 days after D– tually used any of the capacity sup- hallowed grounds in a moving cere- Day. Tony went on to fight the Nazi posedly built and that had no measur- army in Normandy, France and in Ger- mony at Arlington National Cemetery. able impact on the devouring epidemic. many. And he is one of the proud mem- While growing up in Colorado, Major Treatment was the demand of most bers of the ‘‘greatest generation’’ who Jefferson developed a love for geology, global health activists of the day. An can say they fought in the Battle of wilderness and the mines of Colorado; indignant group gathered in South Af- the Bulge. so much so, that his code word was Ge- rica in 2002. ‘‘While a necessary compo- Having served his Nation coura- neva Creek, after a tributary of the nent of the response to HIV/AIDS, pre- geously, placing his own life on the North Fork South Platte River in cen- vention will never be enough,’’ insisted line, Tony returned home to Maine tral Colorado. A graduate of Southern Winston Zulu of the Network of Zam- where he met Rose Ann Atripaldi, a Methodist University, Major Jefferson bian People Living with HIV/AIDS 1947 graduate of Portland High School joined the Colorado Air National Guard (NZP+). ‘‘When will the world wake up and the daughter of Vincent and Marie as a technician and intelligence officer to the fact that the 16 million Africans and one of five sisters and three broth- with the 120th Tactical Fighter Squad- that have already died of HIV/AIDS? ers. In 1948 Tony proposed to Rose, and ron when it was mobilized to Vietnam This is only the beginning if we con- they got married at St. Peter’s Catho- in 1968. Major Jefferson was a com- tinue down the prevention-only path. lic Church in Portland. Preferring not mitted patriot. While in Vietnam, he This movement will make treatment, to return to the family grocery busi- served his Nation with great distinc- which we all know strengthens preven- ness, Tony worked for the United tion. Major Jefferson embodies the tion efforts, our priority demand.’’ Do- States Postal Service as a letter car- spirit and character of Colorado, and I mestic and international chapters of rier, and he was actively involved in commend his service and sacrifice. ACT-UP and others were heckling U.S. his union and worked at the Postal The return of his remains brings clo- officials at international health con- Service until he retired. At the same sure to his family and friends. I am ferences, demanding antiretroviral time, Tony enjoyed selling real estate, grateful to have this opportunity and I treatment for people with HIV/AIDS in and worked as a part-time broker with hope that the 96,000 Americans missing the developing world, especially in Af- Deering Realty in Portland, helping to and unaccounted for while serving rica. sell property in areas of North Deering their country will eventually receive a And then something remarkable hap- in Portland. similar honor. pened. On a cold January night in

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And the cost of those drugs has has made it the most successful U.S. that every baby infected with HIV by dropped from $12,000 a year to under $300 a humanitarian effort in history because her mother during birth or year—which places a tremendous possibility it has literally saved the lives of mil- breastfeeding is a largely preventable within our grasp. Ladies and gentlemen, sel- lions, preserved families and commu- tragedy that should be eliminated. dom has history offered a greater oppor- nities, and rescued countless babies Although we have grave concerns tunity to do so much for so many...tonight I from being born with an AIDS death about many other policies in the House propose the Emergency Plan for AIDS Re- lief—a work of mercy beyond all current sentence. and Senate reauthorization bills, in- international efforts to help the people of Af- Five years later, the American people cluding the prevention policy, the ex- rica. This comprehensive plan will prevent 7 stand at a crossroads. PEPFAR is expansion of funding to rich countries, million new AIDS infections, treat at least 2 piring and the true test of our commit- the ‘‘mission creep’’ that diverts fund- million people with life-extending drugs, and ment to life-saving treatment is before ing from high-priority HIV/AIDS pro- provide humane care for millions of people us. We have a choice. Will we lose grams to lower-priority development suffering from AIDS, and for children or- heart? Will we lose our focus? Will we programs, and others, we chose to phaned by AIDS.—President George W. Bush, allow a program that was ambitious, focus in the Save Lives First Act on State of the Union Address, Jan. 28, 2003. inspiring, targeted and tangibly and the critical problem of the House and Glimmers of hope ignited around the measurably effective at saving lives be- Senate bills’ betrayal of the Presi- world that night, as the U.S. policy come diluted, vague, ill-defined and dent’s and the 108th Congress’ historic against providing treatment in a for- lose its life-saving impact? Will we commitment to life-saving HIV/AIDS eign aid program came to an abrupt allow partisanship and competing pri- treatment. and inspiring end. The Congress took orities and even some good intentions There is no question that PEPFAR up the challenge, and passed a bill a cloud and subvert the long-term suc- has been the most successful foreign few months later that was ground- cess of PEPFAR? Will we turn aid program since the Marshall Plan. breaking, a seismic shift in current PEPFAR into just another bloated, The structural reason for its success is policy and funding levels. The first and unmeasured and unmeasurable foreign that it approaches and addresses AIDS perhaps most dramatic policy shift was aid program with no accountability for what it is—a viral epidemic. the statutory requirement that over and no real impact, a program that Though much may have changed in the half, a full 55 percent of all $15 billion tries to do too much and accomplishes past four years, this simple fact has of the program’s funding be spent on too little? As funding increases and not, and will not, change. life-saving medical treatment for peo- rhetoric builds, will we, in this mo- Regardless of location, demography, ple with HIV/AIDS. ment of testing, betray our historic mode of transmission, and so forth, the People said it couldn’t be done. The commitment to Africa and the lives of basic method of combating an epi- naysayers said that Africans would not millions of its inhabitants? demic, any epidemic, is the same: find be able to adhere to complex drug regi- It is embarrassing to admit that we the infected, provide them care, and mens. They said that there simply find ourselves on a direct path to that help them prevent transmission to oth- wasn’t the capacity to absorb all those shameful outcome. The once loud and ers. There are 33 million people living dollars and build new clinics and ex- indignant voices demanding treatment with HIV, and only they can prevent pand hospital wings. They said people for Africans have found other prior- the transmission of the disease. If we wouldn’t come from miles around to ities, it would seem. Inexplicably and find the people with HIV, we could not get tested and treated. We wouldn’t be inexcusably, the House and Senate only treat them, but yes, prevent new able to use mopeds and bicycles to de- PEPFAR reauthorization bills, nego- infections as well. That’s why treat- liver drugs to the rural hinterlands. tiated with the approval of the Admin- ment and testing are critical to preven- There weren’t enough doctors. There istration, reverse what was undoubt- tion efforts. They are not the whole wasn’t sufficient logistic ability to edly the most important element of story—behavior change programs are store so many drugs. These arguments PEPFAR the requirement that the ma- needed—but diagnosis and treatment are being repeated today. They were jority of funding be spent on HIV/AIDS are two of the foundations of disease uninspired and uninformed in 2003 and treatment. What’s more, the bills more control. What’s more, prevention they still are today. The President’s than triple PEPFAR funding, but only through education is far less costly Emergency Plan for AIDS Relief, increase treatment targets by 50 per- than treatment. Uganda’s success in PEPFAR, has proven them all wrong. cent. Despite their $50 billion price- the 1990s proved that with the proper Since PEPFAR started, over 1.4 mil- tags, the House-passed bill and the message and political leadership, be- lion people who would either be dead or Senate committee-reported bill would havior change that reduces trans- dying today have received life-saving only add an additional one million peo- mission rates dramatically can be antiretroviral treatment. That’s mil- ple, of the many more millions in need, achieved fairly inexpensively. The cur- lions of children who didn’t become or- to the treatment rolls over the next rent PEPFAR program and its original phans. Millions of parents who get to five years. It seems that, after five authorizing legislation are appro- see their children grow up. Millions of years focusing on helping people with priately structured on this foundation moms whose babies were protected HIV/AIDS, the focus of the program of diagnosis, treatment and successful from infection. Countless communities under these proposed reauthorizations prevention. across the plains and prairies, streets would shift to helping the foreign aid So what are the mechanics of treat- and slums of Africa and the Caribbean, ‘‘industrial complex’’ of USAID con- ing people? First, you must diagnose where hope has taken a foothold. tractors based in the U.S. and Euro- those who are infected. That is why Where once stigma and despair kept pean capitals. The proposed reauthor- this bill designates specific funding for people from even getting tested, people ization bills would prioritize literally performing rapid tests, and sets testing now come out by the thousands on HIV every possible development cause ex- target goals. If we test 1 billion people testing days in Kampala and elsewhere. cept HIV diagnosis and treatment. over the next 5 years, we will discover PEPFAR is a comprehensive pro- It is this glaring policy reversal that the vast majority of all those living gram, investing heavily in prevention is the impetus for S. 2749, the ‘‘Save with HIV. However, experience shows and care as well as treatment. How- Lives First Act of 2008.’’ The bill rein- that people will not get tested, no mat- ever, the majority of the funds have states the current policy requiring at ter how much they may want to, with- been spent on treatment. The true na- least 55 percent of funding to go to life- out an incentive to know their status.µ ture of PEPFAR, the appeal of the pro- saving medical treatment for people in- It cannot be disputed that people

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These claims miss the point of to Fight HIV/AIDS, Tuberculosis and HIV positive, there is hope and health the Save Lives First Act—which is not Malaria, a multilateral organization in their future, they will have an in- to add to costs, but to prioritize how affiliated with the United Nations, to centive to get tested. The promise of a authorized funds are spent. As the at- which the U.S. is the largest (by far) longer and healthier life is necessary to tached treatment cost analysis shows, contributor. That is what the Global overcome the stigma—and, in a self-re- the total dollar amount for all drugs, Fund is for—to create efficiencies of inforcing loop, the presence of treat- test kits, and prevention-of-mother-to- scale and allow smaller donors to con- ment, and the effect of people literally child-transmission materials needed to tribute to those more efficient pro- returning from the dead, goes a long meet the goals in the bill is just over grams rather than reinventing the way to reduce HIV stigma. That is one $11 billion (using conservative assump- wheel and starting up their own bilat- of the reasons why the Save Lives First tions about costs that are likely to be eral programs. When other donors do Act maintains the 55 percent allocation lower in reality due to government dis- invest in bilateral efforts, it is almost of PEPFAR funding for treatment, and counts). A reauthorization bill con- always on the prevention side—funding seeks to increase the number of people taining $50 billion plus numerous ‘‘such needle exchanges for drug users, treated proportionally to the increase sums’’ authorities, such as the bills condom and ‘‘empowerment’’ programs in overall funding. under current consideration in the for prostitutes, and other prevention The AIDS drug nevirapine, which House and Senate, would contain suffi- efforts in Africa, Asia and eastern Eu- costs only $4 per treatment, can dra- cient money to meet these goals as rope, usually based on behavior change matically reduce the likelihood that a well as procure the infrastructure nec- programs. This is all the more reason newborn will become infected with essary to deliver these drugs and diag- why one donor, the U.S., needs to focus HIV. Yet a new U.N. report delivers the nostic tests. These costs are not added on diagnosis and treatment—the rest of news that only a quarter of HIV-posi- on top of the proposed reauthorization the donor community is not as com- tive pregnant women in poorer coun- spending levels, as some have claimed. mitted to these programs compared to tries are receiving the medication Rather, the Save Lives First Act takes other approaches. But let’s say that needed to prevent baby AIDS. Further- the first 55 percent of all funding in other donors want to support treat- more, the number of AIDS orphans in any reauthorization bill—whatever the ment—great! We welcome their partici- poorer countries continues to increase, ultimate amount of funding turns out pation. There is so much to do—be- and in sub-Saharan Africa an esti- to be—$30 billion, $50 billion or more tween 7 and 8.4 million people still need mated 12.1 million children in 2007 had (as is actually likely given the current treatment today. PEPFAR certainly lost one or both parents to HIV. appropriations frenzy in the Con- can’t treat everyone in a given year, By sticking to the fundamental dis- gress)—and directs it to treatment and will have to rely on the efforts of ease control methods of testing and costs. If meeting the heroic targets in others going forward, if we want to treatment, new infections are pre- our bill—adding 5 million new people bring hope to everyone affected by this vented. First, we have seen here in the to treatment (in addition to the 2 mil- dreadful disease. U.S. that people who know their HIV lion already in treatment), conducting status are less likely to engage in risky a billion HIV tests, and saving babies We are proud of PEPFAR and the behavior—they seek to protect them- from being infected by their moms— millions of miracles it has created al- selves and their partners. The Centers ends up costing more than 55 percent of ready in its first four years of oper- for Disease Control and Prevention re- PEPFAR funding, we challenge any ation. The American people can look at ports that the 25 percent of Americans critic to think of a better use of funds. PEPFAR and, unlike what they’ll find who don’t know their HIV status trans- However, as the attached chart dem- with most government programs, they mit 50–75 percent of new infections. onstrates, there will be plenty of can see measurable and tangible re- What’s more, a recent study has sug- money in a $50 billion bill left for pre- sults in the faces of the millions saved gested that increased testing in the vention and care after meeting the re- and cared for with U.S. funding. U.S. reduced infection. Further, people quirements of the Save Lives First Act. PEPFAR isn’t ‘‘broken,’’ and it doesn’t who are receiving treatment have less The current alternative to this ap- require ‘‘fixing’’ in its reauthoriza- of the virus in them, and are less infec- proach, as embodied by the House and tion—it’s a stunning success. The bur- tious. There is increasing evidence doc- Senate bills containing no money dedi- den of proof is on those who want to umenting this phenomenon. Behavior cated to testing and treatment—is that radically change PEPFAR policies, not change programs targeted to the gen- millions of people will die for lack of on those of us who want to preserve eral population, most of whom are treatment. In addition, the vast major- them. We look forward to working with uninfected, may help reduce infection ity of people with HIV will remain ig- the President and House and Senate rates to a point, but it is hard to think norant of their status, and will con- leaders to ensure that PEPFAR con- of a more direct preventive measure tinue to unknowingly infect others, tinues its successful, miraculous, life- than rendering an HIV positive person continuing the cycle that led to the saving track record. less infectious and less likely to infect devastating epidemic we now face. Let- Bertha, a 23-year-old PEPFAR treat- others. ting people die, and keeping people ig- ment client in Tanzania speaks for mil- Therefore, claims that the bill does norant of their status, is not the way lions when she says, ‘‘If it is not these not address prevention are simply un- to end this epidemic. We recognize this ARVs, I think I was dead long time ago true. First, billions and billions of dol- truth here in the U.S., where we spend because I use and I am still using these lars not dedicated to treatment and 11 percent annually on prevention, but drugs. Now I can do anything. I’m testing are available for prevention in 67 percent on treatment out of a total healthy and I’m strong.’’ the House and Senate bills. After budget of $23.3 billion spent on AIDS spending 55 percent of the $50 billion in domestically. Mr. President, I ask unanimous con- the bills on lifesaving treatment, there Some have argued that a heroic sent that my endnotes and graph be will still be $27.5 billion left over from American commitment to testing and printed in the RECORD. which prevention programs could be treatment such as the targets in the There being no objection, the mate- funded, dramatically more programs Save Lives First Act will discourage rial was ordered to be printed in the than under the current, $15 billion pro- other donors from supporting diagnosis RECORD, as follows:

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VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00065 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.034 S03APPT1 ccoleman on PRODPC75 with SENATE Insert offset folio 828 here ES03AP08.001 S2432 CONGRESSIONAL RECORD — SENATE April 3, 2008

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00066 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.034 S03APPT1 ccoleman on PRODPC75 with SENATE Insert offset folio 828/1 here ES03AP08.002 April 3, 2008 CONGRESSIONAL RECORD — SENATE S2433 ADDITIONAL STATEMENTS the El Malpais Conservation area in those needs of South Dakota through western New Mexico has had the ben- current projects, such as the Autism efit of special Federal protection. Two and Related Disorders Program, Birth IN CELEBRATION OF REBECCA decades ago with the help of the dele- to 3 Connections, Cheyenne River Res- WOOD WATKIN gation, Congress passed legislation to ervation Rural Health Outreach ∑ Mrs. BOXER. Mr. President, I am ensure the protection of this culturally Project, Deaf-Blind Program, Dietetic pleased and honored to salute my dear and geographically significant portion Internship, the Upper Midwest Public friend Rebecca, Becky, Wood Watkin as of New Mexico, while an amendment of Health Training Center, and the Pine she celebrates her 95th birthday. mine allowed the nearby native tribes Ridge Developmental Clinic, which was Born on April 4, 1913 in Portland, OR, to continue to utilize the area for their established in 2008. The Center for Dis- Becky graduated from Bryn Mawr Col- traditional religious and cultural ac- abilities is also working with other lege in 1933 and went on to the Univer- tivities. States to provide service in projects sity of Pennsylvania to study architec- Located just south of Grants, be- such as the Four-State Consortium on ture. Undeterred by the fact that the tween State highways 53 and 117, the El Studies in the Prevention of Fetal Al- architecture department did not accept Malpais conservation area is unlike cohol Syndrome/Fetal Alcohol Effect female students at that time, Becky any other in the United States. This and the Upper Midwest Public Health completed all required courses, and be- unique area is an important cultural Training Center. came the first woman graduate in ar- resource for the pueblos of Acoma, La- Over the last 35 years, the University chitecture from the University of guna, Zuni, and Ramah Navajo. El of South Dakota School of Medicine Pennsylvania in 1937. That same year, Malpais, meaning ‘‘the badlands,’’ de- and Health Sciences Center for Disabil- Becky relocated to San Francisco and scribes the hardened lava plains where ities has provided quality services to applied at a variety of architectural molten rock once flowed thousands of the people of South Dakota. Their goal, firms, none of which wanted a woman years ago. The uneven cooling of these to help those with disabilities live in the drafting room. Despite her dif- lava flows created many lava tube without limitations, has been dem- ficulties with finding employment in caves throughout the designation onstrated through the citizens with the male-dominated workforce, Becky which now provide for a unique hiking whom they have worked. Those ideals persevered, earning her California ar- experience. This exceptional conserva- have also been carried out by the stu- chitectural license in 1944. tion area also contains the West dents who have graduated and gone on A vanguard for aspiring women pro- Malpais and Cebolla Wilderness areas, to excel in their careers. fessionals everywhere, Becky opened spectacular sandstone cliffs and can- Not only has this center encouraged her own architectural practice in yons, and a habitat for a multitude of learning and research, but the Univer- Marin County in 1951. In the midst of desert vegetation such as aspen, pine, sity of South Dakota School of Medi- these professional milestones, Becky juniper, fir, grasses and cacti. The El cine and Health Sciences Center for also gave birth to three wonderful chil- Malpais conservation area offers visi- Disabilities also strives to bring to- dren. As a working mother, Becky tors guided tours, picnicking, camping, gether communities. Indeed, one of the looked for ways to use her personal and biking, and horseback riding in des- core functions of the center is commu- professional talents to help those in ignated areas. nity education. The center works to need, becoming a tremendous source of Last year I was able to help secure provide training and assistance, not support and energy to causes that she $250,000 for the purchase of 200 acres of only to individuals with disabilities believed helped the community, includ- inholdings at the El Malpais national and their families, but also to profes- ing the Ecumenical Housing Associa- conservation area. This additional sionals, paraprofessionals, policy- tion and Planned Parenthood. Mr. President, 1948 saw Becky enter acreage is an important additional step makers, students, and any member of the political realm for the first time, to preserving the history and consoli- the community who chooses to get in- by fundraising for Roger Kent, a local dating the varied landscapes contained volved. Democratic candidate for Congress. within this one of a kind conservation I am proud to honor the University of This initial political activity 60 years area. South Dakota School of Medicine and ago spearheaded a lifelong involvement Our public lands are truly national Health Sciences Center for Disabilities with Democratic politics, a passion of treasures, and as such, they demand for its 35 years of outstanding service. Becky’s that allowed her to work on our most thoughtful management. The It is an honor for me to share with my the presidential campaigns for Adlai outdoors in New Mexico reminds us all colleagues the exemplary leadership Stevenson, John Kennedy, Eugene of the things we hold so dear. I am and strong commitment to education McCarthy, George McGovern, and proud to have played a role in ensuring and research the University of South Jimmy Carter. the expansion and continued protection Dakota School of Medicine and Health Inspired by Becky’s trailblazing of El Malpais. This New Mexico treas- Sciences Center for Disabilities has story and her fervent belief in good ure remains much the same as it did as provided. I strongly commend their government, I first met Becky in the so many years ago, and I am glad this years of hard work and dedication, and 1960s as we worked together to end the will be the case for generations to I am very pleased that their substan- Vietnam war. As a young working come.∑ tial efforts are being publicly honored mother myself, Becky quickly became f and celebrated.∑ a deeply admired mentor. As the years 35TH ANNIVERSARY OF THE f passed and our friendship grew, she was CENTER FOR DISABILITIES UNIVERSITY OF SOUTH DAKOTA instrumental in helping me move up ∑ WOMEN’S BASKETBALL TEAM the political ladder from the board of Mr. JOHNSON. Mr. President, today supervisors to the House of Representa- I congratulate the University of South ∑ Mr. JOHNSON. Mr. President, today tives and then to the Senate. Dakota School of Medicine and Health I wish to publicly commend the Univer- As we celebrate the 95th year of her Sciences Center for Disabilities in sity of South Dakota women’s basket- remarkably courageous and passionate Vermillion, SD, which will celebrate ball team for their great season, and life, I remain in admiration of Becky’s its 35th anniversary in 2008. their 2nd place finish in the 2008 NCAA strong sense of civic duty, honesty, in- Started in September of 1973 as the Division II Women’s Basketball tour- tegrity, and perseverance. Along with Developmental Disabilities Evaluation nament. hundreds of her family, friends, and ad- Center, the Center for Disabilities has The USD women’s basketball team mirers, I wish her many more years of a long and distinguished history of pro- has worked especially hard this last continued happiness.∑ viding training, service, information, year, to reach the Division II cham- f and research not only to South Dakota pionship game. All South Dakotans are but to the entire region. My wife Bar- extremely proud of their wonderful ef- EL MALPAIS CONSERVATION AREA bara worked on the DDEC staff during forts and achievements in going so far. ∑ Mr. DOMENICI. Mr. President, the those initial years. Thirty-five years They finished with a 33–2 record, won turn of the year marked the 20th year later, the school continues to serve the North Central Conference with a

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00067 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.066 S03APPT1 ccoleman on PRODPC75 with SENATE S2434 CONGRESSIONAL RECORD — SENATE April 3, 2008 perfect 12–0 record and won the North H.R. 5501. An act to authorize appropria- EC–5642. A communication from the Direc- Central Region title for the first time tions for fiscal years 2009 through 2013 to pro- tor, Regulatory Management Division, Envi- in school history. They then won two vide assistance to foreign countries to com- ronmental Protection Agency, transmitting, out of three games in the Elite Eight bat HIV/AIDS, tuberculosis, and malaria, pursuant to law, the report of a rule entitled and for other purposes; to the Committee on ‘‘Acequinocyl; Pesticide Tolerance’’ (FRL Championship and finished in second Foreign Relations. No. 8356-6) received on March 31, 2008; to the place. f Committee on Agriculture, Nutrition, and These young women represented USD Forestry. and South Dakota in an extraordinary MEASURES DISCHARGED EC–5643. A communication from the Sec- fashion. Their hard work is representa- The following measure was dis- retary of Energy and the Secretary of De- fense, transmitting, a report entitled ‘‘Na- tive of South Dakota values and was charged from the Committee on Armed rewarded with a great season. I would tional Security and Nuclear Weapons in the Services by unanimous consent, and re- 21st Century’’; to the Committee on Armed like to give credit to the coaches, par- ferred as indicated: Services. ents, supporters and organizers, and es- S. 2764. A bill to amend the EC–5644. A communication from the Direc- pecially the hard work and dedication Servicemembers Civil Relief Act to enhance tor, Office of Congressional Affairs, Nuclear of these young players. I would like all protections for service-members relating to Regulatory Commission, transmitting, pur- of South Dakota to recognize the hard mortgages and mortgage foreclosures, and suant to law, the report of a rule entitled work, dedication, and sportsmanship for other purposes; to the Committee on Vet- ‘‘Fitness-for-Duty Programs’’ (RIN3150-AF12) this team has shown on their way erans’ Affairs. received on March 28, 2008; to the Committee on Environment and Public Works. through the tournament. f EC–5645. A communication from the Direc- I recognize Head Coach Chad Lavin, MEASURES PLACED ON THE tor, Regulatory Management Division, Envi- Assistant Coach Becky Flynn-Jensen CALENDAR ronmental Protection Agency, transmitting, for their guidance and support to help pursuant to law, the report of a rule entitled make this year’s team so successful. I The following bills were read the sec- ‘‘Approval and Promulgation of Implementa- also congratulate all of this year’s ond time, and placed on the calendar: tion Plans; State of Missouri’’ (FRL No. 8549- team members: Natalie Carda, Shan- S. 2807. A bill to protect the liberty and 8) received on March 27, 2008; to the Com- non Daly, Michelle Dirks, Anne property of all Americans. mittee on Environment and Public Works. S. 2808. A bill to require that citizens with- EC–5646. A communication from the Direc- Doshier, Kelli Fargen, Amber Hegge, tor, Regulatory Management Division, Envi- Jeana Hoffman, Jenna Hoffman, Kara in a National Heritage Area are informed of the designation and that government offi- ronmental Protection Agency, transmitting, Iverson, Jasmine Mosley, Amy cials must receive permission to enter pri- pursuant to law, the report of a rule entitled Robinette, Ashley Robinette, Annie vate property. ‘‘Approval and Promulgation of Implementa- Roche, Kendra Schomer, Bridget S. 2809. A bill to ensure that there are no tion Plans; State of Missouri’’ (FRL No. 8549- Yoerger, and Maggie Youngberg for adverse effects of a National Heritage Area 6) received on March 27, 2008; to the Com- their dedication and commitment this designation to local communities and home mittee on Environment and Public Works. EC–5647. A communication from the Direc- great season. owners. S. 2810. A bill to require an annual report tor, Regulatory Management Division, Envi- Again, congratulations to the Uni- ronmental Protection Agency, transmitting, versity South Dakota Coyotes women’s detailing the amount of property the Federal government owns and the cost of govern- pursuant to law, the report of a rule entitled basketball team on fighting their way ment land ownership to taxpayers. ‘‘National Perchloroethylene Air Emission to the championship game.∑ S. 2811. A bill to require citizens’ approval Standards for Dry Cleaning Facilities’’ of Federal government land grabs. ((RIN2060-AO52)(FRL No. 8547-4)) received on f March 27, 2008; to the Committee on Environ- f MESSAGES FROM THE PRESIDENT ment and Public Works. EXECUTIVE AND OTHER EC–5648. A communication from the Direc- Messages from the President of the tor, Regulatory Management Division, Envi- COMMUNICATIONS United States were communicated to ronmental Protection Agency, transmitting, the Senate by Mrs. Neiman, one of his The following communications were pursuant to law, the report of a rule entitled secretaries. laid before the Senate, together with ‘‘Virginia: Final Authorization of State Haz- accompanying papers, reports, and doc- ardous Waste Management Program Revi- f uments, and were referred as indicated: sion’’ (FRL No. 8548-9) received on March 27, 2008; to the Committee on Environment and EXECUTIVE MESSAGES REFERRED EC–5638. A communication from the Direc- Public Works. As in executive session the Presiding tor, Regulatory Management Division, Envi- EC–5649. A communication from the Direc- Officer laid before the Senate messages ronmental Protection Agency, transmitting, tor, Regulatory Management Division, Envi- pursuant to law, the report of a rule entitled ronmental Protection Agency, transmitting, from the President of the United ‘‘Ferric Citrate; Inert Ingredient; Exemption States submitting sundry nominations pursuant to law, the report of a rule entitled from the Requirement of a Tolerance’’ (FRL ‘‘NESHAP: National Emission Standards for which were referred to the appropriate No. 8071-2) received on March 31, 2008; to the Hazardous Air Pollutants: Standards for committees. Committee on Agriculture, Nutrition, and Hazardous Waste Combustors; Amendments’’ (The nominations received today are Forestry. (FRL No. 8549-4) received on March 27, 2008; printed at the end of the Senate pro- EC–5639. A communication from the Direc- to the Committee on Environment and Pub- ceedings.) tor, Regulatory Management Division, Envi- lic Works. ronmental Protection Agency, transmitting, EC–5650. A communication from the Direc- f pursuant to law, the report of a rule entitled tor, Regulatory Management Division, Envi- ‘‘S-Abscisic Acid, Temporary Exemption MESSAGE FROM THE HOUSE ronmental Protection Agency, transmitting, From the Requirement of a Tolerance’’ (FRL pursuant to law, the report of a rule entitled At 11:28 a.m., a message from the No. 8357-4) received on March 31, 2008; to the ‘‘Revision to the California State Implemen- House of Representatives, delivered by Committee on Agriculture, Nutrition, and tation Plan, Bay Area Quality Management Ms. Niland, one of its reading clerks, Forestry. District’’ (FRL No. 8547-6) received on March announced that the House has passed EC–5640. A communication from the Direc- 27, 2008; to the Committee on Environment tor, Regulatory Management Division, Envi- and Public Works. the following bill, in which it requests ronmental Protection Agency, transmitting, EC–5651. A communication from the Direc- the concurrence of the Senate: pursuant to law, the report of a rule entitled tor, Regulatory Management Division, Envi- H.R. 5501. An act to authorize appropria- ‘‘Flonicamid; Pesticide Tolerance’’ (FRL No. ronmental Protection Agency, transmitting, tions for fiscal years 2009 through 2013 to pro- 8356-7) received on March 31, 2008; to the pursuant to law, the report of a rule entitled vide assistance to foreign countries to com- Committee on Agriculture, Nutrition, and ‘‘Alabama: Final Authorization of State Haz- bat HIV/AIDS, tuberculosis, and malaria, Forestry. ardous Waste Management Program Revi- and for other purposes. EC–5641. A communication from the Direc- sion’’ (FRL No. 8550-3) received on March 31, tor, Regulatory Management Division, Envi- 2008; to the Committee on Environment and f ronmental Protection Agency, transmitting, Public Works. MEASURES REFERRED pursuant to law, the report of a rule entitled EC–5652. A communication from the Direc- ‘‘Dicamba; Pesticide Tolerance’’ (FRL No. tor, Regulatory Management Division, Envi- The following bill was read the first 8356-6) received on March 31, 2008; to the ronmental Protection Agency, transmitting, and the second times by unanimous Committee on Agriculture , Nutrition, and pursuant to law, the report of a rule entitled consent, and referred as indicated: Forestry. ‘‘Delegation of National Emission Standards

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00068 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.068 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2435 for Hazardous Air Pollutants for Source Cat- Intangibles Offshore/Section 482 Cost Shar- thority for the planning, design, and con- egories; State of Nevada, Nevada Division of ing Buy-in Payment Issue Directive No. 2’’ struction of the Eastern New Mexico Rural Environmental Protection’’ (FRL No. 8550-9) (Docket No. LMSB-04-0308-016) received on Water System, and for other purposes; to the received on March 31, 2008; to the Committee March 25, 2008; to the Committee on Finance. Committee on Energy and Natural Re- on Environment and Public Works. EC–5663. A communication from the Assist- sources. EC–5653. A communication from the Direc- ant Secretary, Office of Legislative Affairs, By Mr. KENNEDY (for himself, Mr. tor, Regulatory Management Division, Envi- Department of State, transmitting, pursuant SANDERS, Mrs. MURRAY, Mr. DODD, ronmental Protection Agency, transmitting, to law, a report relative to the Government Mr. REED, and Mr. LEVIN): pursuant to law, the report of a rule entitled of Cuba’s compliance with several agree- S. 2815. A bill to amend the Higher Edu- ‘‘Delegation of New Source Performance ments; to the Committee on Foreign Rela- cation Act of 1965 in order to increase unsub- Standards and National Emission Standards tions. sidized Stafford loan limits for under- for Hazardous Air Pollutants for the States EC–5664. A communication from the Direc- graduate students, provide for a secondary of Arizona and Nevada’’ (FRL No. 8551-1) re- tor, Office of Personnel Management, trans- market for FFEL loans, allow for the in- ceived on March 31, 2008; to the Committee mitting, pursuant to law, an annual report school deferment of PLUS loans, augment on Environment and Public Works. relative to Federal sector equal employment the maximum Federal Pell Grant for the EC–5654. A communication from the Direc- opportunity complaints filed with the Office lowest income students, and expand the tor, Regulatory Management Division, Envi- during fiscal year 2007; to the Committee on number of students eligible to obtain loans ronmental Protection Agency, transmitting, Homeland Security and Governmental Af- under the lender-of-last-resort program, and pursuant to law, the report of a rule entitled fairs. for other purposes; to the Committee on ‘‘Federal Implementation Plan for the Bil- Health, Education, Labor, and Pensions. lings/Laurel, Montana, Sulfur Dioxide Area’’ f By Mr. VOINOVICH (for himself and ((RIN2008-AA01)(FRL No. 8551-2)) received on REPORTS OF COMMITTEES Mr. AKAKA): March 31, 2008; to the Committee on Environ- S. 2816. A bill to provide for the appointment and Public Works. The following reports of committees ment of the Chief Human Capital Officer of EC–5655. A communication from the Direc- were submitted: the Department of Homeland Security by the tor, Regulatory Management Division, Envi- By Mr. LEAHY, from the Committee on Secretary of Homeland Security; to the Com- ronmental Protection Agency, transmitting, the Judiciary, without amendment and with mittee on Homeland Security and Govern- pursuant to law, the report of a rule entitled a preamble: mental Affairs. ‘‘Final 8-Hour Ozone National Ambient Air S. Res. 468. A resolution designating April By Mr. SALAZAR (for himself, Ms. Quality Standards Designations for the 2008 as ‘‘National 9–1–1 Education Month’’. COLLINS, Mr. BAUCUS, Mr. COLEMAN, Early Action Compact Areas’’ ((RIN2060- By Mr. KENNEDY, from the Committee on and Mr. TESTER): AO83)(FRL No. 8550-1)) received on March 31, Health, Education, Labor, and Pensions, S. 2817. A bill to establish the National 2008; to the Committee on Environment and with an amendment in the nature of a sub- Park Centennial Fund, and for other pur- Public Works. stitute: poses; to the Committee on Energy and Nat- EC–5656. A communication from the Pro- S. 579. A bill to amend the Public Health ural Resources. gram Manager, Centers for Medicare and Service Act to authorize the Director of the By Mr. ENZI (for himself, Mr. NELSON Medicaid Services, Department of Health National Institute of Environmental Health of Nebraska, and Mr. GREGG): and Human Services, transmitting, pursuant Sciences to make grants for the development S. 2818. A bill to amend the Employee Re- to law, the report of a rule entitled ‘‘Medi- and operation of research centers regarding tirement Income Security Act of 1974 and the care Program; Modification to the Weighting environmental factors that may be related Public Health Service Act to provide for en- Methodology Used to Calculate the Low-In- to the etiology of breast cancer. hanced health insurance marketplace pool- come Benchmark Amount’’ (RIN0938-AP25) ing and relating market rating; to the Com- received on March 31, 2008; to the Committee f mittee on Health, Education, Labor, and on Finance. Pensions. EC–5657. A communication from the Chief EXECUTIVE REPORTS OF By Mr. ROCKEFELLER (for himself, of the Publications and Regulations Branch, COMMITTEES Ms. SNOWE, and Mr. KENNEDY): Internal Revenue Service, Department of the The following executive reports of S. 2819. A bill to preserve access to Med- Treasury, transmitting, pursuant to law, the nominations were submitted: icaid and the State Children’s Health Insur- report of a rule entitled ‘‘Partnership Audit ance Program during an economic downturn, Techniques Guide—Chapters 1, 2, and 7’’ By Mr. LEAHY for the Committee on the and for other purposes; to the Committee on (Docket No. LMSB-04-0208-007) received on Judiciary. Finance. March 25, 2008; to the Committee on Finance. Catharina Haynes, of Texas, to be United By Mr. ROCKEFELLER (for himself EC–5658. A communication from the Chief States Circuit Judge for the Fifth Circuit. and Mr. GRAHAM): of the Publications and Regulations Branch, Rebecca A. Gregory, of Texas, to be United S. 2820. A bill to amend part A of title IV Internal Revenue Service, Department of the States Attorney for the Eastern District of of the Social Security Act to extend and ex- Treasury, transmitting, pursuant to law, the Texas for the term of four years. pand the number of States qualifying for report of a rule entitled ‘‘Coordinated Issue: (Nominations without an asterisk supplemental grants under the Temporary Cost Sharing Stock Based Compensation’’ were reported with the recommenda- Assistance for Needy Families program; to (Docket No. LMSB-04-0208-005) received on tion that they be confirmed.) the Committee on Finance. March 25, 2008; to the Committee on Finance. By Ms. CANTWELL (for herself, Mr. EC–5659. A communication from the Chief f ENSIGN, Mr. SALAZAR, Mr. SUNUNU, Ms. STABENOW, Mr. COLEMAN, Mr. of the Publications and Regulations Branch, INTRODUCTION OF BILLS AND Internal Revenue Service, Department of the SCHUMER, Ms. SNOWE, Mrs. FEINSTEIN, Treasury, transmitting, pursuant to law, the JOINT RESOLUTIONS Mr. MARTINEZ, Mr. SANDERS, Mr. report of a rule entitled ‘‘Classification of The following bills and joint resolu- GRAHAM, Ms. KLOBUCHAR, Mrs. DOLE, Certain Foreign Entities’’ (TD 9388) received tions were introduced, read the first Mr. DODD, Ms. COLLINS, Mrs. BOXER, on March 25, 2008; to the Committee on Fi- and second times by unanimous con- Mr. CORNYN, Mr. DOMENICI, Mr. CRAIG, Mr. SMITH, Mr. THUNE, Mr. nance. sent, and referred as indicated: EC–5660. A communication from the Chief ALLARD, Mr. HATCH, Mr. ROBERTS, of the Publications and Regulations Branch, By Mr. CONRAD (for himself and Ms. Ms. MURKOWSKI, Mr. STEVENS, Mrs. Internal Revenue Service, Department of the STABENOW): HUTCHISON, and Mr. BIDEN): Treasury, transmitting, pursuant to law, the S. 2812. A bill to amend title XVIII of the S. 2821. A bill to amend the Internal Rev- report of a rule entitled ‘‘Tier I Issue - For- Social Security Act to improve the provision enue Code of 1986 to provide for the limited eign Tax Credit Generator Directive’’ (Dock- of telehealth services under the Medicare continuation of clean energy production in- et No. LMSB-04-0208-003) received on March program; to the Committee on Finance. centives and incentives to improve energy 25, 2008; to the Committee on Finance. By Mr. BUNNING (for himself, Ms. efficiency in order to prevent a downturn in EC–5661. A communication from the Sec- STABENOW, and Mr. BAYH): these sectors that would result from a lapse retary of the Treasury, transmitting, pursu- S. 2813. A bill to require the Secretary of in the tax law; to the Committee on Finance. the Treasury to take action with respect to ant to law, the 2008 Annual Report of the f Boards of Trustees of the Federal Hospital currency manipulation by the People’s Re- Insurance Trust Fund and the Federal Sup- public of China, and for other purposes; to SUBMISSION OF CONCURRENT AND plementary Medical Insurance Trust Fund; the Committee on Banking, Housing, and SENATE RESOLUTIONS to the Committee on Finance . Urban Affairs. The following concurrent resolutions EC–5662. A communication from the Chief By Mr. BINGAMAN (for himself and of the Publications and Regulations Branch, Mr. DOMENICI): and Senate resolutions were read, and Internal Revenue Service, Department of the S. 2814. A bill to authorize the Secretary of referred (or acted upon), as indicated: Treasury, transmitting, pursuant to law, the the Interior to provide financial assistance By Mr. SPECTER (for himself, Mr. report of a rule entitled ‘‘Tier I Transfer of to the Eastern New Mexico Rural Water Au- WYDEN, and Mr. CASEY):

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00069 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.038 S03APPT1 ccoleman on PRODPC75 with SENATE S2436 CONGRESSIONAL RECORD — SENATE April 3, 2008 S. Res. 499. A resolution urging Palestinian States Code, to establish a program of eral civilian and military retirees to Authority President Mahmoud Abbas, who is educational assistance for members of pay health insurance premiums on a also the head of the Fatah Party, to offi- the Armed Forces who serve in the pretax basis and to allow a deduction cially abrogate the 10 articles in the Fatah Armed Forces after September 11, 2001, for TRICARE supplemental premiums. Constitution that call for Israel’s destruction and terrorism against Israel, oppose any and for other purposes. S. 1223 political solution, and label Zionism as rac- S. 45 At the request of Ms. LANDRIEU, the ism; to the Committee on Foreign Relations. At the request of Mr. ENSIGN, the name of the Senator from New Hamp- By Mr. KENNEDY (for himself and Mr. name of the Senator from Vermont shire (Mr. GREGG) was added as a co- BAYH): (Mr. SANDERS) was added as a cospon- sponsor of S. 1223, a bill to amend the S. Res. 500. A resolution honoring military sor of S. 45, a bill to amend title XVIII Robert T. Stafford Disaster Relief and children during ‘‘National Month of the Mili- tary Child’’; to the Committee on Armed of the Social Security Act to make a Emergency Assistance Act to support Services. technical correction in the definition efforts by local or regional television By Mr. KENNEDY (for himself, Mr. of outpatient speech-language pathol- or radio broadcasters to provide essen- REID, Mr. MCCONNELL, Mr. DURBIN, ogy services. tial public information programming Mr. KYL, Mr. AKAKA, Mr. ALEXANDER, S. 206 in the event of a major disaster, and Mr. ALLARD, Mr. BARRASSO, Mr. BAU- At the request of Mrs. FEINSTEIN, the for other purposes. CUS, Mr. BAYH, Mr. BENNETT, Mr. name of the Senator from Minnesota S. 1243 BIDEN, Mr. BINGAMAN, Mr. BOND, Mrs. BOXER, Mr. BROWN, Mr. BROWNBACK, (Ms. KLOBUCHAR) was added as a co- At the request of Mr. KERRY, the Mr. BUNNING, Mr. BURR, Mr. BYRD, sponsor of S. 206, a bill to amend title name of the Senator from Maine (Ms. Ms. CANTWELL, Mr. CARDIN, Mr. CAR- II of the Social Security Act to repeal COLLINS) was added as a cosponsor of S. PER, Mr. CASEY, Mr. CHAMBLISS, Mrs. the Government pension offset and 1243, a bill to amend title 10, United CLINTON, Mr. COBURN, Mr. COCHRAN, windfall elimination provisions. States Code, to reduce the age for re- Mr. COLEMAN, Ms. COLLINS, Mr. S. 329 ceipt of military retired pay for non- CONRAD, Mr. CORKER, Mr. CORNYN, At the request of Mr. CRAPO, the regular service from 60 years of age to Mr. CRAIG, Mr. CRAPO, Mr. DEMINT, 55 years of age. Mr. DODD, Mrs. DOLE, Mr. DOMENICI, name of the Senator from Indiana (Mr. Mr. DORGAN, Mr. ENSIGN, Mr. ENZI, LUGAR) was added as a cosponsor of S. S. 1954 Mr. FEINGOLD, Mrs. FEINSTEIN, Mr. 329, a bill to amend title XVIII of the At the request of Mr. BAUCUS, the GRAHAM, Mr. GRASSLEY, Mr. GREGG, Social Security Act to provide cov- name of the Senator from New York Mr. HAGEL, Mr. HARKIN, Mr. HATCH, erage for cardiac rehabilitation and (Mrs. CLINTON) was added as a cospon- Mrs. HUTCHISON, Mr. INHOFE, Mr. pulmonary rehabilitation services. sor of S. 1954, a bill to amend title INOUYE, Mr. ISAKSON, Mr. JOHNSON, S. 406 XVIII of the Social Security Act to im- Mr. KERRY, Ms. KLOBUCHAR, Mr. KOHL, Ms. LANDRIEU, Mr. LAUTEN- At the request of Mrs. HUTCHISON, the prove access to pharmacies under part BERG, Mr. LEAHY, Mr. LEVIN, Mr. name of the Senator from Oklahoma D. LIEBERMAN, Mrs. LINCOLN, Mr. (Mr. INHOFE) was added as a cosponsor S. 1995 LUGAR, Mr. MARTINEZ, Mr. MCCAIN, of S. 406, a bill to ensure local govern- At the request of Mr. SALAZAR, the Mrs. MCCASKILL, Mr. MENENDEZ, Ms. ments have the flexibility needed to name of the Senator from Idaho (Mr. MIKULSKI, Ms. MURKOWSKI, Mrs. MUR- enhance decision-making regarding CRAIG) was added as a cosponsor of S. RAY, Mr. NELSON of Florida, Mr. NEL- certain mass transit projects. 1995, a bill to amend the Internal Rev- SON of Nebraska, Mr. OBAMA, Mr. PRYOR, Mr. REED, Mr. ROBERTS, Mr. S. 439 enue Code of 1986 to reduce the tax on ROCKEFELLER, Mr. SALAZAR, Mr. At the request of Mr. REID, the name beer to its pre-1991 level. SANDERS, Mr. SCHUMER, Mr. SES- of the Senator from Oregon (Mr. SMITH) S. 2029 SIONS, Mr. SHELBY, Mr. SMITH, Ms. was added as a cosponsor of S. 439, a At the request of Mr. GRASSLEY, the SNOWE, Mr. SPECTER, Ms. STABENOW, bill to amend title 10, United States name of the Senator from New York Mr. STEVENS, Mr. SUNUNU, Mr. TEST- Code, to permit certain retired mem- (Mrs. CLINTON) was added as a cospon- ER, Mr. THUNE, Mr. VITTER, Mr. VOINOVICH, Mr. WARNER, Mr. WEBB, bers of the uniformed services who sor of S. 2029, a bill to amend title XI Mr. WHITEHOUSE, Mr. WICKER, and have a service-connected disability to of the Social Security Act to provide Mr. WYDEN): receive both disability compensation for transparency in the relationship be- S. Res. 501. A resolution honoring the sac- from the Department of Veterans Af- tween physicians and manufacturers of rifice of the members of the United States fairs for their disability and either re- drugs, devices, or medical supplies for Armed Forces who have been killed in Iraq tired pay by reason of their years of which payment is made under Medi- and Afghanistan; considered and agreed to. military service or Combat-Related care, Medicaid, or SCHIP. By Mr. ALLARD: S. Res. 502. A resolution commemorating Special Compensation. S. 2042 the 25th anniversary of the Space Founda- S. 459 At the request of Ms. STABENOW, the tion; to the Committee on Commerce, At the request of Ms. SNOWE, the name of the Senator from California Science, and Transportation. name of the Senator from Illinois (Mr. (Mrs. FEINSTEIN) was added as a co- By Mr. DURBIN (for himself, Mr. SPEC- OBAMA) was added as a cosponsor of S. sponsor of S. 2042, a bill to authorize TER, Mr. KENNEDY, Mr. DODD, Mr. 459, a bill to require that health plans the Secretary of Health and Human BROWN, and Mr. VOINOVICH): S. Res. 503. A resolution recognizing and provide coverage for a minimum hos- Services to conduct activities to rap- honoring the 40th anniversary of the Fair pital stay for mastectomies, idly advance treatments for spinal Housing Act and the 20th anniversary of the lumpectomies, and lymph node dissec- muscular atrophy, neuromuscular dis- Fair Housing Amendments Act of 1988; con- tion for the treatment of breast cancer ease, and other pediatric diseases, and sidered and agreed to. and coverage for secondary consulta- for other purposes. By Mr. WYDEN (for himself, Mr. ENZI, tions. S. 2240 Mr. WICKER, Mr. BROWN, and Mr. S. 582 At the request of Mr. VITTER, his WHITEHOUSE): S. Con. Res. 73. A concurrent resolution ex- At the request of Mr. VITTER, his name was added as a cosponsor of S. pressing Congressional support for the goals name was added as a cosponsor of S. 2240, a bill to prohibit termination of and ideals of National Health Care Decisions 582, a bill to amend the Internal Rev- employment of volunteer firefighters Day; considered and agreed to. enue Code of 1986 to classify automatic and emergency medical personnel re- f fire sprinkler systems as 5-year prop- sponding to emergencies, and for other erty for purposes of depreciation. purposes. ADDITIONAL COSPONSORS S. 773 S. 2384 S. 22 At the request of Mr. WARNER, the At the request of Mr. SALAZAR, the At the request of Mr. WEBB, the name name of the Senator from Vermont name of the Senator from Colorado of the Senator from Connecticut (Mr. (Mr. SANDERS) was added as a cospon- (Mr. ALLARD) was added as a cosponsor LIEBERMAN) was added as a cosponsor sor of S. 773, a bill to amend the Inter- of S. 2384, a bill to authorize the Chief of S. 22, a bill to amend title 38, United nal Revenue Code of 1986 to allow Fed- of Engineers to conduct a feasibility

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00070 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.042 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2437 study relating to the construction of a tive Order 13166 shall have no force or (Mr. NELSON), the Senator from Min- multipurpose project in the Fountain effect, and to prohibit the use of funds nesota (Ms. KLOBUCHAR), the Senator Creek watershed located in the State of for certain purposes. from Louisiana (Ms. LANDRIEU) and the Colorado. S. 2722 Senator from Michigan (Ms. STABENOW) S. 2386 At the request of Mrs. DOLE, the were added as cosponsors of S. Res. 470, At the request of Mrs. FEINSTEIN, the name of the Senator from Oklahoma a resolution calling on the relevant name of the Senator from New York (Mr. INHOFE) was added as a cosponsor governments, multilateral bodies, and (Mr. SCHUMER) was added as a cospon- of S. 2722, a bill to prohibit aliens who non-state actors in Chad, the Central sor of S. 2386, a bill to amend the Rob- are repeat drunk drivers from obtain- African Republic, and Sudan to devote ert T. Stafford Disaster Relief and ing legal status or immigration bene- ample political commitment and mate- Emergency Assistance Act, to author- fits. rial resources towards the achievement and implementation of a negotiated ize temporary mortgage and rental S. 2729 payments. resolution to the national and regional At the request of Mr. CORNYN, the conflicts in Chad, the Central African S. 2388 name of the Senator from Alaska (Ms. Republic, and Darfur, Sudan. At the request of Mrs. FEINSTEIN, the MURKOWSKI) was added as a cosponsor S. RES. 498 name of the Senator from New York of S. 2729, a bill to amend title XVIII of At the request of Mr. DODD, his name (Mr. SCHUMER) was added as a cospon- the Social Security Act to modify was added as a cosponsor of S. Res. 498, sor of S. 2388, a bill to amend the Rob- Medicare physician reimbursement a resolution designating April 8, 2008, ert T. Stafford Disaster Relief and policies to ensure a future physician as ‘‘National Cushing’s Syndrome Emergency Assistance Act, to increase workforce, and for other purposes. Awareness Day’’. the maximum amount of assistance to S. 2731 f individuals and households. At the request of Mr. BIDEN, the S. 2485 name of the Senator from Illinois (Mr. STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS At the request of Mr. TESTER, the DURBIN) was added as a cosponsor of S. name of the Senator from Tennessee 2731, a bill to authorize appropriations By Mr. CONRAD (for himself and (Mr. CORKER) was added as a cosponsor for fiscal years 2009 through 2013 to pro- Ms. STABENOW): of S. 2485, a bill to amend the Public vide assistance to foreign countries to S. 2812. A bill to amend title XVIII of Health Service Act to provide for the combat HIV/AIDS, tuberculosis, and the Social Security Act to improve the participation of physical therapists in malaria, and for other purposes. provision of telehealth services under the National Health Service Corps S. 2736 the Medicare program; to the Com- mittee on Finance. Loan Repayment Program, and for At the request of Mr. KOHL, the name Mr. CONRAD. Mr. President, today I other purposes. of the Senator from Michigan (Ms. rise with my colleague, Senator S. 2521 STABENOW) was added as a cosponsor of STABENOW, to introduce an important At the request of Mr. LIEBERMAN, the S. 2736, a bill to amend section 202 of piece of legislation for Medicare bene- name of the Senator from Vermont the Housing Act of 1959 to improve the ficiaries living in rural areas. The (Mr. SANDERS) was added as a cospon- program under such section for sup- Medicare Telehealth Improvement Act sor of S. 2521, a bill to provide benefits portive housing for the elderly, and for will ensure that rural beneficiaries to domestic partners of Federal em- other purposes. have access to health care services by ployees. S. 2743 connecting remote areas to the serv- S. 2602 At the request of Mr. CASEY, the ices often only available in large urban At the request of Mr. SALAZAR, the name of the Senator from California centers. name of the Senator from Colorado (Mrs. BOXER) was added as a cosponsor Fifteen years ago, I cofounded the (Mr. ALLARD) was added as a cosponsor of S. 2743, a bill to amend the Internal Congressional Steering Committee on of S. 2602, a bill to amend the Depart- Revenue Code of 1986 to provide for the Telemedicine and Health Care ment of the Interior, Environment, and establishment of financial security ac- Informatics to bring more attention to Related Agencies Appropriations Act, counts for the care of family members this technology and its potential. I 2008, to terminate the authority of the with disabilities, and for other pur- took an interest in this technology be- Secretary of the Treasury to deduct poses. cause in large, rural, medically under- amounts from certain States. S. 2766 served States like mine, telemedicine S. 2674 At the request of Mr. NELSON of Flor- provides access to care that is simply At the request of Mr. BURR, the name ida, the names of the Senator from unavailable otherwise. In many areas of the Senator from Georgia (Mr. Georgia (Mr. CHAMBLISS) and the Sen- of North Dakota, routine check-ups ISAKSON) was added as a cosponsor of S. ator from Mississippi (Mr. COCHRAN) with a specialist can require a 200 mile 2674, a bill to amend titles 10 and 38, were added as cosponsors of S. 2766, a round trip journey. That’s fine for a United States Code, to improve and en- bill to amend the Federal Water Pollu- young person on a nice spring day. But hance procedures for the retirement of tion Control Act to address certain dis- it doesn’t work for seniors in the mid- members of the Armed Forces for discharges incidental to the normal oper- dle of a North Dakota blizzard. ability and to improve and enhance au- ation of a recreational vessel. That’s why in 1997, we fought to provide Medicare coverage of telemedicine thorities for the rating and compensa- S.J. RES. 29 services. But access to this benefit was tion of service-connected disabilities in At the request of Mr. WYDEN, the veterans, and for other purposes. strictly limited. For example, the tele- name of the Senator from Ohio (Mr. health service must be provided in a S. 2715 BROWN) was added as a cosponsor of health professional shortage area or At the request of Mr. INHOFE, the S.J. Res. 29, a joint resolution express- county not classified as a metropolitan names of the Senator from Kentucky ing Congressional support for the goals statistical area. In addition, only con- (Mr. BUNNING) and the Senator from and ideals of National Health Care De- sultations, office visits, individual psy- North Carolina (Mrs. DOLE) were added cisions Day. chotherapy and pharmacologic man- as cosponsors of S. 2715, a bill to amend S. RES. 470 agement are covered services. More- title 4, United States Code, to declare At the request of Mr. FEINGOLD, the over, reimbursement, which is the English as the national language of the names of the Senator from New Jersey same as the current physician fee Government of the United States, and (Mr. MENENDEZ), the Senator from Ohio schedule amount, is limited to physi- for other purposes. (Mr. VOINOVICH), the Senator from cians, nurse practitioners, physician S. 2719 Delaware (Mr. BIDEN), the Senator assistants, nurse midwives, clinical At the request of Mrs. DOLE, the from New York (Mrs. CLINTON), the nurse specialists, clinical psycholo- name of the Senator from Oklahoma Senator from Connecticut (Mr. DODD), gists, clinical social workers, and reg- (Mr. INHOFE) was added as a cosponsor the Senator from Georgia (Mr. istered dieticians. Finally, only physi- of S. 2719, a bill to provide that Execu- ISAKSON), the Senator from Florida cian offices, hospitals, rural health

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00071 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.045 S03APPT1 ccoleman on PRODPC75 with SENATE S2438 CONGRESSIONAL RECORD — SENATE April 3, 2008 clinics, and Federally-qualified health AMERICAN TELEMEDICINE ASSOCIATION, We look forward to continuing to work centers are eligible to be originating Washington, DC, March 12, 2008. with you to secure passage of legislation to sites and receive the ‘‘facility fee.’’ Hon. KENT CONRAD, accelerate the adoption of telehealth to in- While this benefit has been helpful to U.S. Senate, crease quality and safety for patients. Washington, DC. Sincerely, seniors in rural areas, the adoption of DEAR SEN. CONRAD: I am pleased to express AMERICAN HEALTH CARE telemedicine in the Medicare program the strong support of the American Tele- ASSOCIATION. has been slow. That is because we had medicine Association for your proposed leg- AMERICAN HEALTH to place too many restrictions on the islation, the Medicare Telehealth Improve- INFORMATION benefit to control the estimated costs o ment Act of 2008. MANAGEMENT covering these services. However, expe- This legislation would improve the current ASSOCIATION. Medicare telehealth program in three signifi- CENTER FOR AGING rience has shown that the use of tele- cant ways. First, it would increase the num- medicine does not dramatically in- SERVICES TECHNOLOGIES. ber of eligible sites by adding skilled nursing NATIONAL CENTER FOR crease spending. In fact, it can actually facilities, dialysis centers and community ASSISTED LIVING. save money. mental health centers to the list of approved NATIONAL ASSOCIATION FOR That is why Senator STABENOW and I originating sites. These are areas where tele- THE SUPPORT OF LONG are introducing the Medicare Tele- medicine is proven to improve quality and TERM CARE. health Improvement Act today. More reduce costs. Second, this bill would expand the list of NATIONAL COUNCIL FOR seniors need to have access to this eligible providers under the Medicare tele- COMMUNITY BEHAVIORAL HEALTHCARE, technology in all areas of health care, health program. This is not only appropriate Rockville, MD, March 31, 2008. and our bill makes important changes but necessary as more and more health pro- Hon. KENT CONRAD, in Medicare coverage. fessions develop their telemedicine capabili- First, the Medicare Telehealth Im- ties. Hart Senate Office Bldg., Finally, your legislation would improve Washington, DC. provement Act would increase the Hon. DEBBIE STABENOW, number of originating sites eligible to the process used for updating covered Medi- care telehealth services by creating an advi- Hart Senate Office Bldg., receive the facility fee to include nurs- sory committee of telemedicine practi- Washington, DC. ing homes, dialysis facilities and com- tioners to advise CMS on the appropriate ad- DEAR SENATOR CONRAD AND SENATOR munity mental health centers. More- dition of deletion of telehealth services. This STABENOW: On behalf of the National Council over, it would allow any other site that committee, made up of physician and non- on Community Behavioral Healthcare—rep- has telecommunications systems to be physician providers, will improve the process resenting 1,400 Community Mental Health an originating site, but these sites by providing the perspective of those di- Centers and other community mental health and substance abuse agencies serving over 6 would not be eligible for the facility rectly involved in the provision of telehealth services. million low-income Americans with mental fee. The ATA is the leading resource and advo- illnesses and addiction disorders—I am writ- Second, the bill allows more pro- cate promoting access to medical care for ing to express our strong support for the viders to participate. For a number of consumers and health professionals via tele- Conrad/Stabenow Medicare Telehealth Im- years, we have advocated to include communications technology. ATA seeks to provement Act. physical therapists, occupational bring together groups from traditional medi- The National Council is particularly therapists, audiologists, and speech- cine, academic medical centers, technology pleased that you included provisions desig- language pathologists. This bill would and telecommunications companies, e- nating CMHCs as originating sites, thereby health, medical societies, government and make that change. authorizing to seek reimbursement directly others to overcome barriers to the advance- from Medicare for tele-mental health serv- Finally, we would improve the Medi- ment of telemedicine through the profes- ices in rural areas. care process for updating the list of eli- sional, ethical and equitable improvement in Such proposals have long enjoyed strong gible services. Despite widespread sup- health care delivery. bipartisan support. As an illustration, Presi- port for the inclusion of new codes, ATA is happy to support your proposed dent George W. Bush’s New Freedom Com- CMS has not sufficiently updated the bill, the Medicare Telehealth Improvements mission on Mental Health stated: ‘‘Tele- list of covered services in recent years. Act of 2008. health—using electronic information and Sincerely, In response, our bill creates an advi- telecommunications technologies to provide JONATHAN D. LINKOUS, sory panel that would give rec- long-distance clinical care and consultation, Executive Director. patient and professional health-related edu- ommendations on the addition or dele- cation, public health and health administration of services. MARCH 18, 2008. tion—is a greatly underused resource for Senator STABENOW and I have worked Hon. KENT CONRAD, mental health services.’’ The Commission to garner support from a variety of Chairman, Senate Budget Committee, Hart Sen- went on to note that tele-mental health can stakeholders. In fact, the bill we are in- ate Office Building, U.S. Senate, Wash- increase access to care for patients in remote troducing today has the support of the ington, DC. geographic areas, and is especially impor- DEAR CHAIRMAN CONRAD: Our coalition of tant for individuals with multiple chronic American Telemedicine Association, long term care and health information tech- the National Council on Community conditions, people with severe mental ill- nology organizations is pleased to support nesses, underserved populations, children Behavioral Healthcare, the American your efforts to expand the use of telehealth and the frail elderly [Achieving the Promise: Health Care Association, the American to skilled nursing facilities and other care Transforming Mental Health Care in Amer- Health Information Management Asso- settings serving Medicare patients. Tele- ica, pg. 80, July 2003]. health will enhance the quality of care for ciation, the Center for Aging Services Like other safety net providers in rural those with chronic illnesses, permanent dis- Technologies, the National Association America, CMHCs struggle to recruit skilled abilities, or terminal illnesses and will im- medical staff in health professional shortage for the Support of Long Term Care, and prove the communication and information areas. The only practical means of expanding the National Center for Assisted Liv- exchange between caregivers and patients. ing. According to the June 2007 Centers for access to mental health services in these re- This bill is a meaningful step to fur- Medicare & Medicaid Services Statistics re- gions is through the application of new technologies—including tele-mental health care. ther adoption of telehealth in the port, roughly 1.8 million persons received Medicare-covered care in skilled nursing fa- The National Council is committed to Medicare program. It will allow seniors working with both of your offices to secure to seek care in the comfort of their cilities in 2005. Long term care is a critical stakeholder in the adoption of health infor- passage of the Medicare Telehealth Improve- communities, instead of having to mation technology and the use of telehealth ment Act. drive hundreds of miles. I urge my col- to ensure continuous quality of care to our Sincerely, leagues to support this initiative to en- patients and residents. LINDA ROSENBERG, sure that every senior has access to the Your recognition of the importance of tele- President & CEO. care they need. health in the long term care setting will go Ms. STABENOW. I am pleased to join Mr. President, I ask unanimous con- a long way toward bringing the benefits of with my good friend, Senator KENT this technology to millions of Medicare pa- sent that letters of support be printed CONRAD, in introducing the Medicare tients. Your legislation will facilitate the in the RECORD. adoption of technologies that can save lives, Telehealth Improvement Act, which There being no objection, the mate- reduce administrative costs, and provide bet- improves access for many Medicare rial was ordered to be placed in the ter medical care, and we support your efforts beneficiaries by expanding telehealth RECORD, as follows: wholeheartedly. services.

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00072 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.047 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2439 As Senator CONRAD has noted, this care in the vast northern reaches of Michi- The source of water for the ENMRWS legislation makes a number of tech- gan for many years. In the best of times, is Ute Reservoir, a facility constructed nical corrections to promote tele- MACMHB member agencies have fought to by the State of New Mexico in the health. First, this bill would expand retain skilled professional staff, but the cur- early 1960s. In 1966, Congress authorized rent economic challenges that our state con- the number of sites that provide tele- fronts make personnel recruitment and re- Reclamation to study the feasibility of health services under Medicare to intention along with services delivery in rural a project that would utilize Ute Res- clude nursing homes, dialysis facilities, areas—even more difficult. By contrast, tele- ervoir to supply water to communities and community mental health centers. mental health care can partially compensate in eastern New Mexico, P.L. 89–561. Nu- Also, it would expand the list of pro- for these staff shortages and, furthermore, merous studies were completed, but it viders to include physical therapists, we believe that these services can be success- was not until recently that several occupational therapists, speech-lan- fully implemented and expanded in highly communities, concerned about their re- guage pathologists, and other providers urbanized communities including metropoli- liance on declining and degraded tan Detroit. determined appropriate by the Sec- Passage of the Stabenow/Conrad telehealth groundwater supplies in the area, retary of Health and Human Services. improvement legislation would be of great- began to plan seriously for the develop- Lastly, this bill would require the Cen- est benefit to individuals eligible for both ment of a regional water system that ters for Medicare and Medicaid Serv- Medicare and Medicaid—who compose rough- would make use of the renewable sup- ices to update the list of covered tele- ly one-third of the combined caseload of our ply available from Ute Reservoir. health services, along with the cre- member agencies. This patient population is As part of that process, the Eastern ation of a permanent advisory com- likely to have multiple chronic conditions in New Mexico Rural Water Authority addition to severe mental illnesses, and they mittee made up of physicians and non- was formed to carry out the develop- generally reside in underserved commu- ment of the ENMRWS. The Authority physicians to provide recommenda- nities. The expansion of tele-mental health tions to the Secretary and continue ex- services will substantially improve our abil- consists of six communities and two pansions of telehealth services forward. ity to provide long distance clinical con- counties in eastern New Mexico, and Michigan providers have been very sultation and health status monitoring for has been very effective in securing innovative in using telehealth, often these ‘‘dually eligible’’ persons. local funds and State funding to sup- out of necessity because of geographic Senator Stabenow, we deeply appreciate port the studies and planning nec- isolation. Telehealth allows providers your support. You can count on MACMHB essary to move the project forward. To and the National Council of Community Be- to collaborate across great distances date, the State of New Mexico has pro- havioral Healthcare to fight for passage of vided approximately $7.5 million to de- and share, rather than duplicate, serv- the Medicare Telehealth Improvement Act. ices. This helps save money and im- Sincerely, velop the ENMRWS. prove patient access. One innovation is DAVID A, KAKMIA, L.M.S.W., Mr. President, this is a very impor- the use of tele-mental health services. Executive Director. tant bill to the citizens of New Mexico. Many Michigan community mental It has the broad support of the commu- health centers have made tremendous By Mr. BINGAMAN (for himself nities in the region as well as financial strides in their ability to monitor pa- and Mr. DOMENICI): support from the State of New Mexico. tients and provide clinical consulta- S. 2814. A bill to authorize the Sec- There is no question that completion of tions long distance. retary of the Interior to provide finan- the ENMRWS will provide commu- I am very pleased that both the cial assistance to the Eastern New nities in Curry and Roosevelt counties Michigan Association of Community Mexico Rural Authority for the plan- with a long-term renewable source of Mental Health Boards and the National ning, design, and construction of the water that is needed to sustain current Council on Community Behavioral Eastern New Mexico Rural Water Sys- economic activity and support future Healthcare support this legislation. tem, and for other purposes; to the development in the region. I hope my I believe that the Medicare Tele- Committee on Energy and Natural Re- colleagues will support this legislation health Improvement Act will build sources. and help address one of the many press- upon already successful initiatives Mr. BINGAMAN. Mr. President, ing water needs in the rural West. happening in my home State of Michi- today, I am introducing a bill, with Mr. President, I ask unanimous con- gan and across the country. I urge my Senator DOMENICI’s support, that would sent that the text of the bill be printed colleagues to join with me and Senator authorize the Bureau of Reclamation in the RECORD. to help communities in eastern New There being no objection, the text of CONRAD in expanding upon this prom- the bill was ordered to be printed in ising technology. Mexico develop the Eastern New Mex- the RECORD, as follows: Mr. President, I ask unanimous con- ico Rural Water System, ENMRWS. sent that a letter of support be printed The water supply and long-term secu- S. 2814 rity to be made available by this Be it enacted by the Senate and House of Rep- in the RECORD. project is absolutely critical to the re- resentatives of the United States of America in There being no objection, the mate- Congress assembled, rial was ordered to be placed in the gion’s future. I look forward to working with my colleagues here in the Sen- SECTION 1. SHORT TITLE. RECORD, as follows: ate to help make this project a reality. This Act may be cited as the ‘‘Eastern New Mexico Rural Water System Authorization MICHIGAN ASSOCIATION OF COMMU- This is the third time this bill has NITY MENTAL HEALTH BOARDS, Act’’. Lansing, Mi, March 28, 2008. been introduced. In June 2004, it was SEC. 2. DEFINITIONS. Hon. DEBBIE STABENOW, the subject of a hearing before the In this Act: U.S. Senator; SH–133 Hart Senate Office Bldg., Water & Power Subcommittee of the (1) AUTHORITY.—The term ‘‘Authority’’ Washington, DC. Energy & Natural Resources Com- means the Eastern New Mexico Rural Water DEAR SENATOR STABENOW: On behalf of the mittee. At that hearing, the Bureau of Authority, an entity formed under State law Michigan Association of Community Mental Reclamation raised a number of issues for the purposes of planning, financing, de- Health Boards (MACMHB)—representing that needed to be addressed by the veloping, and operating the System. county administered community mental Project sponsors prior to securing Rec- (2) ENGINEERING REPORT.—The term ‘‘engi- health and substance abuse agencies serving neering report’’ means the report entitled low-income people with mental illnesses and lamation’s support. Last August, the ‘‘Eastern New Mexico Rural Water System addiction disorders statewide—I am writing Energy & Natural Resources Com- Preliminary Engineering Report’’ and dated to express our strong support for the mittee conducted a field hearing on the October 2006. Stabenow/Conrad Medicare Telehealth Im- project in Clovis, New Mexico, and it (3) PLAN.—The term ‘‘plan’’ means the op- provement Act. was clear that the sponsors have eration, maintenance, and replacement plan MACMHB is particularly pleased that you worked diligently to address the issues required by section 4(b). included provisions designating CMHCs as raised by Reclamation. Given that (4) SECRETARY.—The term ‘‘Secretary’’ originating sites, thereby authorizing these progress and the broad support that ex- means the Secretary of the Interior. agencies to seek reimbursement directly (5) STATE.—The term ‘‘State’’ means the from Medicare for tele-mental health serv- ists for the project, it is time to move State of New Mexico. ices. forward with Federal authorization (6) SYSTEM.— As you well know, we have consistently under Reclamation’s rural water pro- (A) IN GENERAL.—The term ‘‘System’’ struggled to expand access to mental health gram. means the Eastern New Mexico Rural Water

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00073 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.048 S03APPT1 ccoleman on PRODPC75 with SENATE S2440 CONGRESSIONAL RECORD — SENATE April 3, 2008 System, a water delivery project designed to (A) IN GENERAL.—The Secretary shall enter Mr. KENNEDY. Mr. President, Amer- deliver approximately 16,500 acre-feet of into a cooperative agreement with the Au- icans are facing economic challenges at water per year from the Ute Reservoir to the thority to provide financial assistance and every turn. They see jobs disappearing, cities of Clovis, Elida, Grady, Melrose, any other assistance requested by the Au- homes being foreclosed, debts soaring, Portales, and Texico and other locations in thority for planning, design, related Curry, Roosevelt, and Quay Counties in the preconstruction activities, and construction and benefits worth less and less. Now State. of the System. families are finding that the loans they (B) INCLUSIONS.—The term ‘‘System’’ in- (B) REQUIREMENTS.—The cooperative rely on to afford the high cost of col- cludes the major components and associated agreement entered into under subparagraph lege may also be at risk. infrastructure identified as the ‘‘Best Tech- (A) shall, at a minimum, specify the respon- Some lenders have stopped making nical Alternative’’ in the engineering report. sibilities of the Secretary and the Authority private student loans, and others have (7) UTE RESERVOIR.—The term ‘‘Ute Res- with respect to— even temporarily stopped making loans ervoir’’ means the impoundment of water (i) ensuring that the cost-share require- created in 1962 by the construction of the Ute ments established by section 3(b) are met; under the Federal program. We can’t Dam on the Canadian River, located approxi- (ii) completing the planning and final de- allow problems in the credit market to mately 32 miles upstream of the border be- sign of the System; prevent students from going to college. tween New Mexico and Texas. (iii) any environmental and cultural re- We have been working with the Sec- SEC. 3. EASTERN NEW MEXICO RURAL WATER source compliance activities required for the retary of Education to take steps to SYSTEM. System; and see that all Federal backstops are in (a) FINANCIAL ASSISTANCE.— (iv) the construction of the System. place and operational in order to pro- (b) TECHNICAL ASSISTANCE.—At the request (1) IN GENERAL.—The Secretary may protect students from these problems. vide financial and technical assistance to the of the Authority, the Secretary may provide Authority to assist in planning, designing, to the Authority any technical assistance Today, I am introducing legislation conducting related preconstruction activi- that is necessary to assist the Authority in for additional steps to protect students ties for, and constructing the System. planning, designing, constructing, and oper- by reducing their reliance on loans, (2) USE.— ating the System. and by improving the existing Federal (A) IN GENERAL.—Any financial assistance (c) BIOLOGICAL ASSESSMENT.—The Sec- student loan programs to give them provided under paragraph (1) shall be obli- retary shall consult with the New Mexico better terms and conditions. Interstate Stream Commission and the Au- gated and expended only in accordance with The legislation does three things. It a cooperative agreement entered into under thority in preparing any biological assess- section 5(a)(2). ment under the Endangered Species Act of increases grant aid for the neediest (B) LIMITATIONS.—Financial assistance pro- 1973 (16 U.S.C. 1531 et seq.) that may be re- students. It expands options for stu- vided under paragraph (1) shall not be used— quired for planning and constructing the dents and parents under the Federal (i) for any activity that is inconsistent System. loan programs so that fewer of them with constructing the System; or (d) EFFECT.—Nothing in this Act–— will have to turn to higher cost private (ii) to plan or construct facilities used to (1) affects or preempts— loans. It takes steps to shore up the re- supply irrigation water for irrigated agricul- (A) State water law; or liability of the current Federal loan (B) an interstate compact relating to the tural purposes. programs so that families will have (b) COST-SHARING REQUIREMENT.— allocation of water; or (1) IN GENERAL.—The Federal share of the (2) confers on any non-Federal entity the timely and reliable access to Federal total cost of any activity or construction ability to exercise any Federal rights to— loans. carried out using amounts made available (A) the water of a stream; or Over 6 million students relied on Fed- under this Act shall be not more than 75 per- (B) any groundwater resource. eral loans last year. It is essential to cent of the total cost of the System. SEC. 6. AUTHORIZATION OF APPROPRIATIONS. make sure this support is there for (2) SYSTEM DEVELOPMENT COSTS.—For pur- (a) IN GENERAL.—In accordance with the them when they need it. In the past 20 poses of paragraph (1), the total cost of the adjustment carried out under subsection (b), years, the cost of college has tripled, System shall include any costs incurred by there is authorized to be appropriated to the and more and more students are rely- the Authority or the State on or after Octo- Secretary to carry out this Act an amount ber 1, 2003, for the development of the Sys- not greater than $327,000,000. ing on student loans to afford a college tem. (b) ADJUSTMENT.—The amount made avail- education. In 1993, less than half of all (c) LIMITATION.—No amounts made available under subsection (a) shall be adjusted to graduates took out loans, but in 2004, able under this Act may be used for the con- reflect changes in construction costs occur- nearly 2⁄3 did so. struction of the System until— ring after January 1, 2007, as indicated by en- The average U.S. student now grad- (1) a plan is developed under section 4(b); gineering cost indices applicable to the types uates with more than $19,000 of student and of construction necessary to carry out this loan debt. As a result, they are under (2) the Secretary and the Authority have Act. increasing pressure to give up lower- complied with any requirements of the Na- (c) NONREIMBURSABLE AMOUNTS.—Amounts tional Environmental Policy Act of 1969 (42 made available to the Authority in accord- paying jobs and careers they may pre- U.S.C. 4321 et seq.) applicable to the System. ance with the cost-sharing requirement fer, due to the burden of repaying their (d) TITLE TO PROJECT WORKS.—Title to the under section 3(b) shall be nonreimbursable loan debts. infrastructure of the System shall be held by and nonreturnable to the United States. Legislation was enacted last year the Authority or as may otherwise be speci- (d) AVAILABILITY OF FUNDS.—At the end of that increased grant aid and made Fed- fied under State law. each fiscal year, any unexpended funds ap- eral loans cheaper for students by re- SEC. 4. OPERATION, MAINTENANCE, AND RE- propriated pursuant to this Act shall be reducing interest rates. We also provided PLACEMENT COSTS. tained for use in future fiscal years con- (a) IN GENERAL.—The Authority shall be sistent with this Act. that no graduates should have to pay responsible for the annual operation, mainte- more than 15 percent of their income in nance, and replacement costs associated By Mr. KENNEDY (for himself, monthly loan payments, and that those with the System. Mr. SANDERS, Mrs. MURRAY, Mr. who enter public service will have their (b) OPERATION, MAINTENANCE, AND RE- DODD, Mr. REED, and Mr. loans completely forgiven. But these PLACEMENT PLAN.—The Authority, in con- LEVIN): benefits will be meaningless if students sultation with the Secretary, shall develop cannot obtain the loans needed to gain an operation, maintenance, and replacement S. 2815. A bill to amend the Higher plan that establishes the rates and fees for Education Act of 1965 in order to in- a degree. beneficiaries of the System in the amount crease unsubsidized Stafford loan lim- In recent weeks, the credit market necessary to ensure that the System is prop- its for undergraduate students, provide crisis has made it more difficult for erly maintained and capable of delivering ap- for a secondary market for FFEL lenders to obtain capital for student proximately 16,500 acre-feet of water per loans, allow for the in-school loans. As a result, some lenders are year. deferment of PLUS loans, augment the leaving the student loan market and SEC. 5. ADMINISTRATIVE PROVISIONS. maximum Federal Pell Grant for the those operating outside the Federal (a) COOPERATIVE AGREEMENTS.— lowest income students, and expand loan program are cutting back on loans (1) IN GENERAL.—The Secretary may enter the number of students eligible to ob- to high risk borrowers. into any contract, grant, cooperative agreement, or other agreement that is necessary tain loans under the lender-of-last-re- So far, because of the attractiveness to carry out this Act. sort program, and for other purposes; of the Federal guarantee in the Federal (2) COOPERATIVE AGREEMENT FOR PROVISION to the Committee on Health, Edu- loan program, other lenders are step- OF FINANCIAL ASSISTANCE.— cation, Labor, and Pensions. ping in to fill the gaps in that program.

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00074 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.051 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2441 Since the interest rates in that pro- It makes Federal loans for parents formula, the parents are expected to gram are capped, students are pro- more attractive by enabling parents to contribute between $8,000 and $10,000 a tected from inflated interest costs. defer payments on the loans while stu- year from their earnings with the rest But students who need to go beyond dents are in college just as students to be obtained through grants and the Federal loan program will have a can defer payments on their own loans. loans. After accounting for all federal, more difficult time finding lenders, and It also takes steps to shore up the state, and institutional aid, this family their rates will go up. Federal loan program to ensure there still faces over $2,600 in unmet costs Also, parents who traditionally had are no disruptions in access for stu- each year—on top of their expected various options for borrowing to fi- dents. family contribution. The estimate is nance college for their children are see- It makes it easier for schools to use conservative, because many parents ing those options disappear. Some no the ‘‘Lender-of-Last-Resort’’ program don’t have the $8,000–10,000 they’re ex- longer have access to low-cost home when students or schools have prob- pected to contribute. equity lines of credit. Others are being lems finding lenders. To make up the difference, many turned down for additional loans as It provides an additional backstop to families can take out federal parent they struggle to pay their own mort- give lenders access to the capital they ‘‘PLUS’’ loans at a 7.9 percent interest gages. need for new loans, if the situation rate. If they don’t qualify for such As I mentioned, we are already tak- worsens. loans because of poor credit, their chil- ing action to ensure that programs al- I will take a moment to describe each dren may have to turn to higher cost ready in place to protect students and of these provisions. families from credit market disrup- private loans. The best way to help students and The bill increases eligibility for Fed- tions are fully operational. families afford college is to increase I have urged Secretary Spellings to eral student loans in order to give stu- grant aid. More aid up front means make it as easy as possible for colleges dents a better, lower-cost option than and families to participate in the exist- fewer loans and less debt on graduation relying on private lenders. ing loan program that allows students day. That is why the Democratic Con- It allows undergraduates dependent and parents to borrow directly from gress delivered on our promise last on their parents to borrow up to $1,000 the Federal Government, without year to raise the Pell Grant. The max- more a year. It tracks current law by going through a bank. This Direct imum grant will increase to $5,400 by allowing independent students to bor- Loan program uses Treasury funds. It 2012—an increase of $1,350 over the row twice that amount. It also allows does not rely on capital from the pri- level at which it had stagnated under students whose parents are not able to vate financial markets, so it’s insu- the current administration. borrow under the Federal parent loan lated from the market disruptions now This increase in up-front aid means program because of poor credit to bor- taking place. that students eligible for the maximum row an additional $2,000 per year. I have also urged the Secretary to Pell grant will have to borrow $6,000 In addition, the bill increases the put in place a plan to activate the less in loans over the course of their total amount that students can borrow ‘‘Lender-of-Last-Resort’’ program, college career. over the course of their college career. which enables the Secretary to advance The legislation I am introducing Dependent students will be able to bor- capital to designated lenders and guar- builds on that progress, and focuses on row up to $29,500. Independent students, anty agencies, so they can help stu- students who need it most. Currently, and students whose parents don’t have dents who are having trouble finding over 2.6 million students—half of all access to PLUS parent loans, can bor- loans through other banks. Pell Grant recipients—come from fami- row up to $57,500. These programs are now in the law, lies whose income, under the Federal Further, the legislation makes fed- and nearly 2,000 colleges are already formula, makes them eligible for the eral parent loans more attractive. Cur- signed up to use the Direct Loan Pro- maximum amount of Federal assist- rently, most parents have the option of gram. ance because they are determined to be borrowing low-cost federal loans—up to We’re also taking steps to help stu- unable to contribute to their children’s the cost of attendance—for their chil- dents and parents who must borrow college bills. Still, after all grant aid, dren. In the 2006–2007 school year, outside the Federal loan program, these families face an average unmet 600,000 parents borrowed approximately since they are the ones most likely to need of $5,600, which they are forced to $8 billion in PLUS loans, and the aver- be affected by the credit market de- borrow in order to pay for college. This age loan was $13,600. cline. bill brings additional assistance to Many parents in recent years have Currently, however, many students these students, by increasing the max- not taken advantage of PLUS loans, and parents don’t know about their imum Pell Grant for these students by because they had other options, such as Federal options. According to Depart- up to $750. home equity lines of credit, or private ment of Education estimates, between Because Federal grant aid has not loans with good terms and conditions. 40 and 60 percent of students who turn kept pace with the rising cost of col- This year, for the first time in a dec- to high-cost private loans are not actu- lege in recent decades, many students ade, the number of PLUS loan bor- ally taking full advantage of Federal have been forced to turn to loans. The rowers declined—by about 160,000. At grants and loans first. We’re taking steps to correct that bill helps students who still need to the same time, student and parent de- problem in the Higher Education Reau- borrow for college by guaranteeing pendence on private loans has in- thorization bill that’s in conference their access to additional low-cost fed- creased. In the 2006–2007 school year, now. eral loans, rather than forcing them to over $17 billion in private student loans But there is much more we can do to turn to the more expensive private were used to finance higher education. reduce families’ reliance on high-cost loan market. With the credit crunch making it private loans. The legislation I am of- Currently, undergraduate students harder and more expensive for parents fering today will increase access for who are dependents of their parents to borrow from private sources, this students and families to low-cost Fed- can take out loans of between $3,500 legislation will make it easier for par- eral loans. It will also strengthen the and $5,500 annually, depending what ents to obtain Federal loans. Specifi- backstops in the Federal program, to year of college they’re in. The total cally, it allows parents to defer pay- ensure students and families will con- amount they can borrow is $23,000. ment on those loans until their chil- tinue to have access to Federal loans. Independent students can borrow about dren graduate from school—just as stu- The legislation cuts back in several double that amount. dents are able to do under their own ways on the number of private loans Consider what this means for a mid- Federal loans. that families have to take out: dle-class family in Massachusetts This provision protects parents from It increases Pell Grant aid for the struggling to send a child to college. having to make any payments over the lowest income students. Here is a family that makes $68,700— next few years, and allows them to use It increases the amount that stu- the median income in our State. On av- that time to meet other financial obli- dents can borrow under the Federal erage, these families will spend $17,424 gations, such as getting their mort- loan program. a year for college. Based on the federal gages back on track.

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00075 Fmt 4624 Sfmt 0634 E:\CR\FM\G03AP6.038 S03APPT1 ccoleman on PRODPC75 with SENATE S2442 CONGRESSIONAL RECORD — SENATE April 3, 2008 In addition to these provisions that that the borrower signed up for. The measured in semester, trimester, quarter, or significantly reduce families’ need to Department can contract with the clock hours bears to one academic year; turn to the private loan market, the same loan servicers that private banks ‘‘(ii) in the case of such a student at an eli- legislation also takes two important use, and the transition will be seamless gible institution who has successfully completed such first and second years but has steps to strengthen the backstops in for borrowers. not successfully completed the remainder of the Federal loan program, to ensure We hope that these additional protec- a program of undergraduate education— that students and parents can continue tions for students and families will not ‘‘(I) $7,000; or to have timely, uninterrupted access to be needed. But given the uncertainties ‘‘(II) if such student is enrolled in a pro- Federal loans. in the overall economy and the credit gram of undergraduate education, the re- First, it makes it easier for students markets, Congress has an obligation to mainder of which is less than one academic and schools to participate in the shore up programs on which millions of year, the maximum annual loan amount that ‘‘Lender-of-Last-Resort’’ program. Cur- students heavily depend. Few things such student may receive may not exceed the amount that bears the same ratio to the rent law requires designated lenders to are more important than ensuring that amount specified in subclause (I) as such re- make loans to students who are having families can afford a college degree for mainder measured in semester, trimester, trouble finding a Federal student loan their children, and the goal of this leg- quarter, or clock hours bears to one aca- elsewhere. But the program requires islation is to make that possible. I urge demic year; and individual students to demonstrate my colleagues to support it. ‘‘(iii) in the case of such a student enrolled that they can’t find a loan before they Mr. President, I ask unanimous con- in coursework specified in sections can turn to a ‘‘lender of last resort.’’ sent that the text of the bill be printed 484(b)(3)(B) and 484(b)(4)(B), $6,000 for If the current market worsens, more in the RECORD. coursework necessary for enrollment in an lenders may stop making Federal stu- There being no objection, the text of undergraduate degree or certificate program. ‘‘(B) AGGREGATE LIMITS.—The maximum dent loans, and this ‘‘lender-of-last-re- the bill was ordered to be printed in aggregate amount of loans under this section sort’’ process will become untenable. the RECORD, as follows: a student described in subparagraph (A) may Nationally, 18 million students are en- S. 2815 borrow shall be $57,500. Interest capitalized rolled in colleges and universities. We Be it enacted by the Senate and House of Rep- shall not be deemed to exceed such max- can’t require each of them to dem- resentatives of the United States of America in imum aggregate amount.’’. onstrate they can’t find another lender Congress assembled, (b) CONFORMING AMENDMENTS.—Section before using this safety net. SECTION 1. SHORT TITLE. 428H(d) of the Higher Education Act of 1965 The legislation instead allows finan- This Act may be cited as the ‘‘Strength- (as amended by subsection (a)) (20 U.S.C. cial aid officers and colleges to make ening Student Aid for All Act’’. 1078–8(d)) is further amended— (1) in paragraph (2)— this determination on behalf of all SEC. 2. INCREASING UNSUBSIDIZED STAFFORD LOAN LIMITS FOR UNDERGRADUATE (A) in the paragraph heading, by striking their students, so that students can STUDENTS. ‘‘INDEPENDENT, GRADUATE,’’ and inserting easily obtain a loan through a ‘‘lender (a) AMENDMENTS.—Section 428H(d) of the ‘‘GRADUATE’’; of last resort.’’ Consider the difference Higher Education Act of 1965 (20 U.S.C. 1078– (B) in the matter preceding subparagraph this would make at state universities, 8(d)) is amended— (A), by striking ‘‘an independent student’’ some of which enroll more than 50,000 (1) in paragraph (1), by striking ‘‘para- and all that follows through ‘‘Program)’’ and college and graduate students and gen- graphs (2) and (3)’’ and inserting ‘‘paragraphs inserting ‘‘a student who is a graduate or erally rely on one or two primary lend- (2) through (5)’’; and professional student’’; (2) by adding at the end the following: (C) by striking subparagraphs (A) and (B); ers. (D) in subparagraph (D)— The Clinton Administration enacted ‘‘(4) ANNUAL AND AGGREGATE LIMITS FOR UN- DERGRADUATE DEPENDENT STUDENTS.— (i) in the matter preceding clause (i), by in- such a policy in 1998—the last time ‘‘(A) ANNUAL LIMITS.—The maximum an- serting ‘‘graduate’’ before ‘‘student’’; lenders threatened to leave the pro- nual amount of loans under this section an (ii) in clause (i), by striking ‘‘$4,000’’ and gram. The legislation requires the Sec- undergraduate dependent student (except an all that follows through ‘‘degree,’’; and retary to make clear that colleges have undergraduate dependent student whose par- (iii) in clause (ii), by striking ‘‘in the case’’ this option should they need it. ents are unable to borrow under section 428B and all that follows through ‘‘degree,’’; and Finally, many lenders who have an- or the Federal Direct PLUS Loan Program) (E) by redesignating subparagraphs (C) and nounced they will not be able to make may borrow in any academic year (as defined (D) (as amended by subparagraph (D)) as subparagraphs (A) and (B), respectively; and loans for this college year have had to in section 481(a)(2)) or its equivalent shall be the sum of the amount determined under (2) in the paragraph heading of paragraph make that decision because they can- paragraph (1), plus $1,000. (3), by striking ‘‘INDEPENDENT, GRADUATE,’’ not obtain capital for those loans ‘‘(B) AGGREGATE LIMITS.—The maximum and inserting ‘‘GRADUATE’’. through their traditional sources in aggregate amount of loans under this section SEC. 3. IN-SCHOOL DEFERMENT OF PLUS LOANS. the private financial markets. a student described in subparagraph (A) may Section 428B(d)(1) of the Higher Education Many of these lenders sell the loans borrow shall be $29,500. Interest capitalized Act of 1965 (20 U.S.C. 1078–2(d)(1)) is amend- they originate in order to replenish shall not be deemed to exceed such max- ed— their capital and make new loans. But imum aggregate amount. (1) by striking ‘‘deferral during’’ and in- these so-called ‘‘secondary markets’’ ‘‘(5) ANNUAL AND AGGREGATE LIMITS FOR UN- serting ‘‘deferral— have begun to close because of the DERGRADUATE INDEPENDENT STUDENTS.— ‘‘(B) during’’; and ‘‘(A) ANNUAL LIMITS.—The maximum an- (2) by inserting before subparagraph (B) (as credit crunch. nual amount of loans under this section an Some lenders can’t find a buyer for added by paragraph (1)) the following: undergraduate independent student, or an ‘‘(A) in the case of the parents of a depend- their loans. They are stuck with the undergraduate dependent student whose parent student, until the student ceases to be loans now on their books, and have no ents are unable to borrow under section 428B enrolled in an undergraduate program of capital for new loans in the fall. Over or the Federal Direct PLUS Loan Program, study at an institution of higher education the past month, this has caused some may borrow in any academic year (as defined on at least a half-time basis; or’’. in section 481(a)(2)) or its equivalent shall be lenders to announce that they will stop SEC. 4. SECONDARY MARKET OF LAST RESORT. making new Federal loans. the sum of the amount determined under paragraph (1), plus— (a) IN GENERAL.—Part B of title IV of the This legislation provides a back-up ‘‘(i) in the case of such a student attending Higher Education Act of 1965 (20 U.S.C. 1071 plan for lenders who need it, in case an eligible institution who has not com- et seq.) is amended by adding at the end the the private credit markets are unavail- pleted such student’s first 2 years of under- following: able to lenders. It allows the Secretary graduate study— ‘‘SEC. 440B. SECONDARY MARKET OF LAST RE- of Education to act as a ‘‘secondary ‘‘(I) $6,000, if such student is enrolled in a SORT. market of last resort,’’ by buying the program whose length is at least one aca- ‘‘(a) IN GENERAL.—Notwithstanding any loans that lenders are currently hold- demic year in length; or other provision of this Act and subject to ing on their books and cannot sell. ‘‘(II) if such student is enrolled in a pro- subsections (b), (c), and (d), the Secretary— This will not cause students any gram of undergraduate education which is ‘‘(1) shall serve as the secondary market of less than one academic year, the maximum last resort for loans under section 428, 428B, greater complexity—under the program annual loan amount that such student may 428C, or 428H; established by this legislation, student receive may not exceed the amount that ‘‘(2) shall buy any such loan that an eligi- loans will continue to be serviced bears the same ratio to the amount specified ble lender wishes to sell to the Secretary, at under the same terms and conditions in clause (i) as the length of such program a price equal to the sum of—

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‘‘(A) the total of the outstanding principal the amount of the lowest assessment of ad- ‘‘(C) FORMULA OTHERWISE UNAFFECTED.— of such loan and any accrued, unpaid inter- justed available income in the table de- Except as provided in subparagraphs (A) and est due on such loan; and scribed in section 477(d) (or a successor table (B), nothing in this paragraph shall be con- ‘‘(B) a premium in the amount equal to the prescribed by the Secretary under section strued to alter the requirements of this sec- cost of originating a similar loan under part 478).’’. tion, or authorize the imposition of addi- D; (c) INDEPENDENT STUDENTS WITH DEPEND- tional requirements, for the determination ‘‘(3) shall hold and service such loan under ENTS OTHER THAN A SPOUSE.—Section 477(a) and allocation of Federal Pell Grants under section 428, 428B, 428C or 428H in the same of the Higher Education Act of 1965 (20 U.S.C. this section.’’. manner as the Secretary holds and services 1087qq(a)) is amended— SEC. 6. LENDER-OF-LAST-RESORT. similar loans under part D; and (1) in paragraph (3), by striking ‘‘dividing (a) IN GENERAL.—Section 428(j) of the High- ‘‘(4) may not alter the terms and condi- the assessment resulting under paragraph er Education Act of 1965 (20 U.S.C. 1078(j)) is tions of a promissory note of such loan under (2)’’ and inserting ‘‘if the amount of the as- amended— section 428, 428B, 428C, or 428H except as nec- sessment resulting under paragraph (2) is a (1) in the first sentence of paragraph (1), by essary to comply with paragraphs (1) positive number, dividing such assessment’’; striking ‘‘part.’’ and inserting ‘‘part or who through (3), and shall not require the execu- (2) in paragraph (4)(B), by striking the attend an institution of higher education in tion of a new promissory note. semicolon and inserting a period; and the State that is designated under paragraph ‘‘(b) REPRESENTATIVE SUBSET OF LOANS.— (3) by striking the matter following para- (4).’’; An eligible lender that wishes to sell to the graph (4)(B). (2) in paragraph (2)(B), by inserting ‘‘, in Secretary loans under section 428, 428B, 428C, (d) ASSESSMENT SCHEDULES AND RATES.— the case of students applying for loans under or 428H, that do not represent 100 percent of Section 478(e)(1) of the Higher Education Act this subsection because of an inability to all loans under such sections that are held of 1965 (20 U.S.C. 1087rr(e)(1)) is amended by otherwise obtain loans under this part,’’ by the lender, shall offer for sale to the Sec- striking ‘‘increasing’’ and inserting ‘‘adjust- after ‘‘lender, nor’’; retary a subset of the loans under such sec- ing’’. (3) in paragraph (3)(C)— tions held by the lender that is representa- (e) SIMPLIFIED NEEDS TESTS.—– (A) in the first sentence, by inserting ‘‘or tive (including representative with respect (1) SIMPLIFIED NEEDS TESTS.—Section 479(c) designates an institution of higher education to risk of default) of the lender’s total port- of the Higher Education Act of 1965 (20 U.S.C. for participation in the program under this folio of loans under such sections. 1087ss) is further amended— subsection under paragraph (4),’’ after ‘‘(c) SUNSET PROVISION.— (A) in the subsection heading, by striking ‘‘under this part’’; and ‘‘(1) IN GENERAL.—Except as provided in ‘‘EXPECTED’’; and (B) in the third sentence, by inserting ‘‘or paragraph (2), the authority provided to the (B) in the matter preceding paragraph (1), to eligible borrowers who attend an institu- Secretary under subsection (a) shall expire by striking ‘‘equal to zero’’ and inserting tion in the State that is designated under on July 1, 2009. ‘‘equal to the amount of the lowest assess- paragraph (4)’’ after ‘‘problems’’; and ‘‘(2) EXTENSION.—If the Secretary deter- ment of adjusted available income in the (4) by adding at the end the following: mines that economic circumstances neces- table described in section 477(d) (or a suc- ‘‘(4) INSTITUTION-WIDE STUDENT QUALIFICA- sitate extending the authority provided cessor table prescribed by the Secretary TION.—Upon the request of an institution of under subsection (a) in order to continue to under section 478)’’. higher education, the Secretary shall des- ensure timely, uninterrupted access to stu- (2) CONFORMING AMENDMENTS TO THE COL- ignate such institution for participation in dent loans, the Secretary may extend the LEGE COST REDUCTION AND ACCESS ACT.— the lender-of-last-resort program under this sunset provision under paragraph (1). The (A) AMENDMENT.—Section 602(a)(3) of the paragraph in the State where the institution Secretary may make multiple extensions College Cost Reduction and Access Act (Pub- is located. If the Secretary designates an in- under this paragraph, except that each such lic Law 110–84) is amended in the quoted ma- stitution under this paragraph, the guaranty extension may not be for a period of more terial inserted by subparagraph (C), by strik- agency shall make loans, in the same man- than 12 months.’’. ner as such loans are made under paragraph (b) EFFECTIVE DATE.—The amendment ing ‘‘zero expected family contribution’’ and made by subsection (a) shall take effect on inserting ‘‘expected family contribution (1), to students of the designated institution the date of enactment of this Act. under this subsection.’’. who are eligible to receive interest benefits (B) EFFECTIVE DATE.—The amendment paid on the students’ behalf under subsection SEC. 5. NEGATIVE EXPECTED FAMILY CONTRIBU- TION. made by subparagraph (A) shall take effect (a) of this section, regardless of whether the (a) DEPENDENT STUDENTS.—Section 475 of on July 1, 2009, as if enacted on the date of students are otherwise unable to obtain the Higher Education Act of 1965 (20 U.S.C. enactment of the College Cost Reduction and loans under this part.’’. 1087oo) is amended— Access Act (Public Law 110–84). (b) EFFECTIVE DATE.—The amendments (1) in subsection (b)(3)— (f) FEDERAL PELL GRANTS.—Section 401(b) made by subsection (a) shall take effect on (A) in subparagraph (C)— of the Higher Education Act of 1965 (20 U.S.C. the date of enactment of this Act. (i) by striking ‘‘dividing the assessment re- 1070a(b)) is amended by inserting after para- SEC. 7. MANDATORY ADVANCES. sulting under paragraph (2)’’ and inserting graph (7) the following: (a) IN GENERAL.—Section 421(b) of the ‘‘if the amount of the assessment resulting ‘‘(8) INCREASED AMOUNT FOR STUDENTS Higher Education Act of 1965 (20 U.S.C. under paragraph (2) is a positive number, di- WITH NEGATIVE EXPECTED FAMILY CONTRIBU- 1071(b)) is amended— viding such assessment’’; and TION.— (1) in paragraph (4), by striking ‘‘programs, (ii) by striking the semicolon and inserting ‘‘(A) IN GENERAL.—Notwithstanding para- and’’ and inserting ‘‘programs,’’; a period; and graph (2)(A) and any other provision of law (2) in paragraph (5), by striking ‘‘agen- (B) by striking the matter following sub- and subject to subparagraph (B) and (C), in cies.’’ and inserting ‘‘agencies, and’’; and paragraph (C); and the case of a student whose expected family (3) by adding at the end the following: (2) in subsection (g)(6), by inserting ‘‘and contribution is a negative number, such stu- ‘‘(6) there is authorized to be appropriated, the absolute value of the amount of the low- dent shall be eligible for a Federal Pell and there are appropriated, out of any est assessment of adjusted available income Grant under this section in the amount money in the Treasury not otherwise appro- in the table described in section 475(e) (or a equal to the sum of— priated, such sums as may be necessary for successor table prescribed by the Secretary ‘‘(i) the maximum Federal Pell Grant for the purpose of carrying out section under section 478),’’ after ‘‘subsection (c)(1)’’. which a student shall be eligible during an 427(c)(7).’’. (b) INDEPENDENT STUDENTS WITHOUT DE- award year, as specified in the last enacted (b) EFFECTIVE DATE.—The amendments PENDENTS OTHER THAN A SPOUSE.—Section appropriation Act applicable to that award made by subsection (a) shall take effect on 476 of the Higher Education Act of 1965 (20 year; the date of enactment of this Act. U.S.C. 1087pp) is amended— ‘‘(ii) the Federal Pell Grant increase de- SEC. 8. EFFECTIVE DATE. (1) in subsection (a)— scribed in paragraph (9) applicable to that Except as otherwise provided, the amend- (A) in paragraph (2), by striking ‘‘dividing award year; and ments made by this Act shall take effect on the sum resulting under paragraph (1)’’ and ‘‘(iii) an additional amount equal to the July 1, 2008. inserting ‘‘if the sum resulting under para- absolute value of the student’s expected fam- graph (1) is a positive number, dividing such ily contribution. BY Mr. VOINOVICH (for himself sum’’; and ‘‘(B) COST OF ATTENDANCE LIMIT.—Notwith- and Mr. AKAKA): (B) in the matter following paragraph standing paragraph (3), in the case of a stu- S. 2816. A bill to provide for the ap- (3)(B), by striking ‘‘less than zero’’ and in- dent whose expected family contribution is a pointment of the Chief Human Capital serting ‘‘less than the amount of the lowest negative number, the student’s Federal Pell Officer of the Department of Homeland assessment of adjusted available income in Grant under this subpart, as calculated Security by the Secretary of Homeland the table described in section 477(d) (or a suc- under subparagraph (A), shall not exceed the cessor table prescribed by the Secretary student’s cost of attendance at such institu- Security; to the Committee on Home- under section 478)’’; and tion, and if the amount of the student’s Fed- land Security and Governmental Af- (2) in paragraph (b)(5), by inserting before eral Pell Grant exceeds such cost of attend- fairs. the period at the end ‘‘, except that in no ance for that year, such amount shall be re- Mr. VOINOVICH. Mr. President, I case shall the assessed amount be less than duced accordingly. rise today to introduce legislation to

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00077 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.053 S03APPT1 ccoleman on PRODPC75 with SENATE S2444 CONGRESSIONAL RECORD — SENATE April 3, 2008 correct what I perceive to be an anom- tem. The centennial celebration will be proved by the Park Service and Con- aly in the law. I am grateful to be an opportunity to resurrect the spirit gress. joined in my efforts by my good friend that drove people like Enos Mills, one This bill provides $100 million in and partner in human capital reform, of the founders of Rocky Mountain Na- mandatory spending for each of the fis- Senator AKAKA. tional Park, to work tirelessly to pro- cal years from 2008 to 2017 to carry out The enabling statute of the Depart- tect our Nation’s crown jewels for fu- special, select Centennial projects ment of Homeland Security requires ture generations. ‘‘In years to come throughout the National Park System. the Chief Human Capital Officer, or when I am asleep beneath the pines,’’ Non-federal philanthropic participa- CHCO, to be appointed by the Presi- Mills proclaimed in 1909, ‘‘thousands of tion is encouraged, but not required, dent. This differs from all other depart- families will find rest and hope in this for a project to be executed with Fed- ments and agencies where the head of park.’’ He was right. Thanks to the ex- eral money from the Centennial Fund. the agency designates the CHCO. Using cellent work of the Park Service and To ensure that Congress has the op- that authority, agency heads have var- its employees over the past 90 years, portunity to review and approve the ied in appointing Chief Human Capital the 3.2 million visitors that come to proposed project list, the bill requires Officers who are political appointees as Rocky Mountain National Park each the Secretary oflnterior to submit to well as career employees. year experience the same wild lands Congress, as part of the President’s an- This bill would strike the provision and spectacular vistas that our ances- nual budget submission, a list of proof statute that requires the Chief tors enjoyed. posed Centennial projects. The yearly Human Capital Officer to be appointed The coming of the 2016 centennial of project lists are to be developed by the by the President. Therefore, the De- the National Park System is an oppor- Secretary with input from the public partment would be covered by section tunity to restore the luster of our na- and National Park Service employees. 1401 of title 5, which directs the head of tional parks and inspire future genera- Projects must meet specific criteria each agency to appoint the CHCO. Of tions to protect these national treas- set forth in the bill. All projects must the 23 agencies that make up the Chief ures. be consistent with Park Service poli- Human Capital Officers Council, 11 are Secretary Kempthorne took an im- cies and adopted park planning docu- career employees. portant step in this direction when, in ments and be representative of the As the Department prepares for its August 2006, he announced that the Na- breadth of the national park system. first transition between administra- tional Park Service will undertake the The bill also requires that project pro- tions, it is imperative that there are Centennial Initiative to prepare for the posals fall into one of seven categories able and capable individuals in place to 100th anniversary of the Park System or ‘‘initiatives’’ defined in the bill: continue its important mission and all in 2016. As part of the Centennial Ini- Education, Diversity, Supporting Park related functions. Key to a successful tiative, Secretary Kempthorne pro- Professionals, Environmental Leader- Department of Homeland Security is a posed the creation of a partnership be- ship, Natural Resource Protection, Cul- well trained workforce. I believe cen- tween: the federal government; the pri- tural Resource Protection, and Visitor tral to this smooth transition would be vate, philanthropic sector; and other Enjoyment and Health, and Construc- a career Chief Human Capital Officer. non-federal sources. The goal of this tion. No more than 30 percent of the While I have no intention of mandating partnership would be to increase phil- amounts available in the fund in any that position be a career position, I be- anthropic contributions to the parks fiscal year may be spent on construc- lieve the Secretary of the Department by providing Federal matching funds tion activities. of Homeland Security should have the for donations made by Americans for The National Park Centennial Fund flexibility and authority to hire a ca- projects that improve the parks and Act also specifies that the Federal dol- reer employee to that position, just as visitor experiences. This program is lars made available from the Centen- all other agency heads do, and I urge called the Centennial Challenge. nial Fund shall supplement and not re- my colleagues to support this bill. When Secretary Kempthorne pre- place annual Park Service expendi- By Mr. SALAZAR (for himself, sented this proposal to the Senate En- tures, and that adequate permanent Ms. COLLINS, Mr. BAUCUS, Mr. ergy and Natural Resources Committee staffing levels must be maintained. COLEMAN, and Mr. TESTER): last year, I offered my strong support The Secretary is required to submit a S. 2817. A bill to establish the Na- for the concept. However, the legisla- report to Congress each year detailing tional Park Centennial Fund, and for tion offered by the Administration to Centennial Fund accounting, results, other purposes; to the Committee on put the Centennial Challenge into ac- and Park Service staffing levels. Energy and Natural Resources. tion suffered from a number of defi- The National Park Centennial Fund Mr. SALAZAR. Mr. President, today ciencies—namely, a lack of a spending Act bill proposes to pay for the Centen- I am proud to introduce the National offset and an unclear delineation of the nial Fund by establishing a new con- Park Centennial Fund Act, a bill that public’s and Congress’ role in the pro- servation royalty from unanticipated will help restore the grandeur of our gram. There were also concerns about off-shore oil and gas revenues in the national parks in preparation for the the bill’s effect on other Park Service Gulf of Mexico that the Federal Gov- 100th birthday of the National Park accounts, friends groups, and existing ernment is now collecting. In 2008, off- System in 2016. I am pleased to intro- philanthropic initiatives. shore oil and gas lease sales have al- duce this bill with Senator COLLINS, The National Park Centennial Fund ready generated more than $4 billion in Senator BAUCUS, Senator COLEMAN, and Act that we are introducing today an- revenue above Department of Interior Senator TESTER. I want to thank them swers many of these questions and, I projections. Rather than returning all for their work and for their support of believe, is a legislative package that is these revenues—which were generated this bill, which I hope we can pass this worthy of bipartisan support and pas- from the depletion of a natural re- year. sage. source—to the Federal treasury, the Nearly a century ago, following the This bill takes Secretary National Park Centennial Fund Act re- extraordinary vision of leaders whose Kempthorne’s Centennial Challenge invests up to $1 billion in the Centen- dreams were ahead of their time, we as proposal from vision to reality by es- nial Fund and the permanent protec- Americans pledged to protect our Na- tablishing the Centennial Challenge tion of our national treasures. tion’s most special lands and treasures. Fund, a matching donation fund in the Moreover, the bill supplements the At places like Yellowstone, Yosemite, federal treasury that will provide up to funding from this conservation royalty Mesa Verde, and Gettysburg we have $100 million a year to the national with revenues that would be generated set aside for permanent protection parks in support of signature ‘‘Centen- through the sale of a new postage those landscapes that conjure the sub- nial projects and programs.’’ This stamp celebrating the 100th anniver- lime, those historic treasures that tell would allow supporters of the parks to sary of the National Park System. the American story, and those cultural match their contributions with federal I want to again thank my colleagues, sites that help define us as a people. dollars to carry out a program or a Senator COLLINS, Senator BAUCUS, Sen- In 2016, we will celebrate the 100th project at a national park unit, pro- ator COLEMAN, and Senator TESTER, for anniversary of the National Park Sys- vided that the project or program is ap- their support and for their work on this

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00078 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.054 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2445 bill. This is an effort that is worthy of protection, cultural resources protec- 40 States will face severe budget short- broad, bipartisan support, and it is a tion or visitor enjoyment and health. falls in 2009. bill which I hope we will pass this year. For example, at Acadia National As a former Governor, who survived Finally, I would like to note that I Park, officials are undertaking an en- the tough times of the 1980s, I can at- see another bill that I have introduced, vironmental leadership project to test to the enormous budget pressures S. 2194, as complementary to this ef- make Acadia virtually car-free by pro- States face when the economy slows. fort. The National Park Ranger School viding a variety of public transpor- State revenues often evaporate rapidly Partnership Act, which I introduced tation options within the park. This during an economic downturn. Unlike with Senator CONRAD, would provide partnership with the local community the Federal Government, States cannot greater opportunities for our kids to will include providing a central park- borrow infinite amounts of debt from experience and learn from the tremen- ing and bus boarding area for park visi- China and other countries. By law, 49 dous resources in our national parks by tors to use the Island Explore bus sys- States—including West Virginia—are establishing partnerships between NPS tem. Since 1999, these low-emissions required to balance their budgets and, and local schools under the No Child propane vehicles have carried more in times of economic downturn, this Left Behind Act. The bill would also than 1.5 million riders. In doing so, task becomes significantly more dif- create a pilot grant program aimed at they removed 424,000 vehicles from the ficult. getting more school children into the park and reduced pollution by 24 tons. Some of my colleagues may be won- national parks. We propose two offsets in the Na- dering why health care is such a big I look forward to working with my tional Park Centennial Fund Act. The deal when we have all these other prob- colleagues to pass both of these bills. first is a postal stamp for National lems to worry about—the mortgage cri- Ms. COLLINS. Mr. President, I am Parks, estimated to raise about $10 sis, the credit crunch, and a weak dol- proud to join Senator SALAZAR in in- million annually. lar. Well, I would say to my colleagues troducing the National Park Centen- The second offset is from unantici- that we don’t have to look very far for nial Fund Act. This bill celebrates the pated revenues from offshore oil and an answer to this very question. As we 100th anniversary of the National Park gas leases. Thus far for fiscal year 2008, saw during the economic downturn of System by infusing our parks with $1 bids and royalties from offshore oil and 2001–2003, decreased access to health billion over 10 years, which will be gas leases are $4.2 billion higher than care coverage was a huge crisis for matched by an additional $1 billion in CBO anticipated. The National Park working families. private donations. This challenge fund Centennial Fund Act bill would take There was a huge loss in private adds to efforts to increase the oper- these revenues that were not antici- health care coverage. Data from the ations budget of the National Park pated each year and dedicate them into Center for Studying Health System Service by $1 billion over the next dec- the centennial fund until the total in Change indicates that the proportion of ade. the fund reaches $1 billion. If we are de- the under-65 population with employer- We Americans love our National pleting one natural resource, I believe sponsored coverage fell from 67 percent Parks. In fact, in a December 2007 Har- we should return part of the revenues in 2001 to 63.4 percent in 2003. After ad- ris Interactive Poll, the National Park to the protection of other natural re- justing for population growth, this Service ranked as the most popular sources like our National Parks. means that nearly 9 million fewer peo- Federal Government service. Mr. President, I thank Senator ple were covered by employer-spon- In 1872, Congress designated Yellow- SALAZAR for his leadership on this bill sored health insurance during the re- stone as the world’s first national and Senators BAUCUS, COLEMAN and cession than would have been the case park, and in 1916 the National Park TESTER for their support. I urge all my if coverage rates remained unchanged. Service formally was created to man- colleagues to consider joining us on Medicaid also didn’t fare very well age what had become a 6 million acre this important legislation. during the last recession. It is consist- system of national protected areas. ently the first program slated for cuts Today the National Park System By Mr. ROCKEFELLER (for him- during a state budget squeeze. Accord- protects more than 84 million acres. self, Ms. SNOWE, and Mr. KEN- ing to the Kaiser Commission on Med- National Parks conserve our culture NEDY): icaid and the Uninsured, between fiscal and our places of natural beauty and S. 2819. A bill to preserve access to years 2002 and 2005, the loss of revenue value. They also provide recreation op- Medicaid and the State Children’s led all 50 States to reduce Medicaid portunities for more than 270 million Health Insurance Program during an provider payment rates and implement visitors each year. economic downturn, and for other pur- prescription drug cost controls, 38 My State of Maine is home to the poses; to the Committee on Finance. States to reduce Medicaid eligibility first National Park east of the Mis- Mr. ROCKEFELLER. Mr. President, I and 34 States to reduce benefits. sissippi River, Acadia National Park, a rise today with my esteemed col- These cuts placed a huge burden on true gem on Maine’s rocky coast. Visi- leagues—Senator OLYMPIA SNOWE of Medicaid providers and the working tors enjoy granite mountain tops, spar- Maine and Senator EDWARD KENNEDY of families who depend on Medicaid to kling lakes, forested valleys, meadows, Massachusetts—to introduce a timely meet their health care needs. While marshes, and a spectacular coastline. and vital piece of legislation, the Eco- Congress did ultimately respond to the They can hike up Cadillac Mountain, nomic Recovery in Health Care Act of last economic downturn by providing the tallest mountain on the east coast, 2008. This bill will preserve access to $20 billion in State fiscal relief in 2003, which offers amazing views of Porcu- health care for our most vulnerable and this relief went a long way to pre- pine Islands and Frenchman Bay. citizens during this time of economic serve health care coverage for millions The National Park Centennial Fund uncertainty. of working families, we cannot dis- Act will maintain and improve all of Earlier this week, Federal Reserve count the fact that one million low-in- our parks for the next century of en- Chairman Ben Bernanke confirmed come people had already lost Medicaid joyment. The bill establishes a manda- what we have all long-suspected—that coverage because we waited two years tory annual fund of $100 million, which the U.S. economy could be headed for a into the recession to act. will be matched by private donations protracted recession. The tell-tale In response to this current downturn, for projects in parks around the coun- warning signs of recession have been state legislatures are already begin- try. visible in the states for at least a full ning to limit access to Medicaid and Eligible projects will be prioritized quarter now. According to the National CHIP in preparation for the harsh eco- through input from both the public and Governors Association, the recent economic times ahead. According to the a broad cross-section of National Park nomic downturn has left 18 States with Center on Budget and Policy Priorities, Service employees. Centennial chal- budget shortfalls totaling $14 million at least 10 states have implemented or lenge projects may fall into one of in 2008, and 21 States project shortfalls are considering budget cuts that will these categories: education, diversity, totaling more than $32 million in 2009. reduce access to Medicaid or CHIP for supporting park professionals, environ- If the current downturn follows the working families. For example, Nevada mental leadership, natural resource path of most recessions, between 35 and has capped the State’s CHIP program

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00079 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.070 S03APPT1 ccoleman on PRODPC75 with SENATE S2446 CONGRESSIONAL RECORD — SENATE April 3, 2008 at its approximate current number of Congress has already enacted. The Eco- (3) In the last year, our unemployment enrollees. As a result, hundreds of chil- nomic Recovery in Health Care Act rate has increased to 5.0 percent with nearly dren will be denied coverage. California would also preserve access to Medicaid 900,000 more Americans without jobs. Be- by delaying—through April 1, 2009—im- cause the majority of Americans get their has proposed increasing co-payments health insurance through their jobs, the loss and premiums for children enrolled in plementation of the following addi- of a job often results in a simultaneous loss CHIP and reducing CHIP dental serv- tional Medicaid regulations, which are of health insurance coverage. ices. I want to remind my colleagues already in effect or scheduled to go (4) Medicaid fills the gap for working fami- that it was only 1 year ago that mil- into effect in the near future: targeted lies when they lose access to private cov- lions across the country mourned the case management, allowable provider erage. For every 1 percent increase in the un- death of 12-year-old Deamonte Driver, taxes, outpatient clinic and hospital employment rate, Medicaid enrollment in- whose lack of dental care led to fatal services, and the Departmental Appeals creases by 2,000,000 to 3,000,000 people. (5) States experience enormous budget brain infection. Board rule. Our bill would also preserve pressures when the economy slows. By law, At least four States are cutting or access to CHIP for low-income children 49 States are required to balance their budg- proposing to cut Medicaid services for by implementing a 1-year moratorium ets and, in times of economic downturn, this the elderly or disabled, or significantly on the August 17 CHIP guidance. task becomes significantly more difficult. increasing the cost of these services. The second major component of our (6) According to the National Governors For example, Maine has proposed cuts legislation is targeted State fiscal re- Association, 18 States already face budget that will remove 7,000 mentally ill and lief. Leading economists have found shortfalls totaling $14,000,000,000 in 2008, and that targeted State aid would generate 21 States project shortfalls totaling more poor adults from Medicaid; and Rhode than $32,000,000,000 in 2009. If the current Island is requiring low-income elderly increased economic activity of $1.36 for downturn follows the path of most reces- people to pay more for adult daycare. each dollar of cost. Our legislation pro- sions, between 35 and 40 States will face se- Several States have proposed reduc- vides approximately $12 billion in tar- vere budget shortfalls in 2009. tions in or delayed payments to pro- geted State fiscal relief, equally di- (7) A critical factor in helping States sus- viders. For example, New Jersey has vided between an increase in Federal tain Medicaid enrollment during the last proposed a reduction in funding for Medicaid matching payments and tar- economic downturn was the $20,000,000,000 in hospital charity of 15 percent, which geted grants to States. State fiscal relief that Congress enacted in will impact hospitals’ ability to care Unlike the State fiscal relief pro- 2003. (8) Not only should Congress enact a simi- for some of the State’s most vulnerable vided in 2003 and previous fiscal relief lar State fiscal relief provision in 2008, but residents. proposals offered this year, each State Congress should also delay the implementa- There is no question that our States must meet certain criteria in order to tion of administrative regulations that are in economic peril. However, chil- qualify for an increase in federal would reduce Federal Medicaid matching dren don’t stop getting sick just be- matching payments and the targeted payments at a time when States need great- cause the economy slows. Seniors don’t grants. The criteria would be based on er Federal resources. suddenly stop needing long-term care the average of State ranks in unem- (9) There is no question that health care is services simply because the economy ployment, food stamp participation, economic stimulus. (10) Keeping Medicaid and CHIP whole slows. Instead, the need for access to and foreclosures. These three economic shores up the safety net for vulnerable work- Medicaid and CHIP grows during times indicators closely align with State ing families. People who are able to get the of economic uncertainty, and we must budget deficits and would allow us to health services they need are more likely to act to ensure that Medicaid and CHIP more appropriately target State fiscal be able to continue working and contribute coverage is available when families relief to the States with the most need. to the economy as it recovers. need it the most. I urge my colleagues to strongly sup- (11) Leading economists have found that The Economic Recovery in Health port this important legislation. Med- targeted State aid would generate increased Care Act provides the timely, targeted, icaid is a Federal-State partnership, economic activity of $1.36 for each dollar of and temporary Federal response nec- and the Federal Government bears the cost. The increase in Federal dollars to States generates business activity, jobs, and essary to avoid a health care crisis dur- primary responsibility for ensuring wages that States would not otherwise see. ing this current economic slowdown. that the Federal guarantee of health SEC. 3. PRESERVING ACCESS TO MEDICAID AND Our legislation accomplishes this ob- benefits is not denied to eligible work- CHIP DURING AN ECONOMIC DOWN- jective in two ways. ing families, particularly during an TURN. First, our bill responds to the Med- economic downturn. With all the wor- (a) PROHIBITION.—Effective on the date of icaid administrative regulations re- ries that working American families enactment of this Act, notwithstanding any other provision of law, the Secretary of cently proposed by the administration, are currently facing, they should not Health and Human Services shall not final- which, if allowed to go into effect, have to add health care to their grow- ize, implement, enforce, or otherwise take would further aggravate the impact of ing list of concerns. any action to give effect to the following ad- the economic downturn on States and Mr. President, I ask unanimous con- ministrative actions (or to any administra- working families. The Congressional sent that the text of the bill be printed tive actions relating to the same subject Budget Office estimates that these reg- in the RECORD. matters that are similar to the following ad- ulations would reduce Federal Med- There being no objection, the text of ministrative actions or that reflect the same the bill was ordered to be printed in or similar policies set forth in the following icaid matching payments by approxi- administrative actions) prior to April 1, 2009: mately $18 billion over 5 years and $42 the RECORD, as follows: (1) The proposed and final rule entitled billion over 10 years. However, State S. 2819 ‘‘Medicaid Program; Health-Care Related reports to the House Oversight Com- Be it enacted by the Senate and House of Rep- Taxes’’, published, respectively, on March 23, mittee indicate that the cost shift to resentatives of the United States of America in 2007, on pages 13726 through 13734 of volume States could be far greater. Congress assembled, 72, Federal Register, and on February 22, Now is a time when States need SECTION 1. SHORT TITLE. 2008, on pages 9685 through 9699 of volume 73, greater financial support from the Fed- This Act may be cited as the ‘‘Economic Federal Register, with the exception of the Recovery in Health Care Act of 2008’’. proposed amendments to sections 433.56(a)(8) eral Government, not less financial SEC. 2. FINDINGS. and 433.68(f)(3)(i) of title 42, Code of Federal support and more restrictions that Congress makes the following findings: Relations. make providing quality care to those (1) State and local governments are an in- (2) The proposed rule entitled ‘‘Medicaid most in need nearly impossible. tegral part of our national economic engine. Program; Graduate Medical Education’’, Our bill will preserve access to Med- They provide health care and a wealth of so- published on May 23, 2007, on pages 28930 icaid for seniors, pregnant women, in- cial services to millions of Americans, par- through 28936 of volume 72, Federal Register. dividuals with disabilities, and chil- ticularly when the economy is weak. (3) The State Health Official Letter 07-001, dren during the economic downturn by (2) During the last economic downturn, the dated August 17, 2007, issued by the Director temporarily extending—through April number of uninsured Americans would have of the Center for Medicaid and State Oper- been millions more if Medicaid and the State ations in the Centers for Medicare & Med- 1, 2009—the Medicaid moratoria on pay- Children’s Health Insurance Program (CHIP) icaid Services regarding certain requirements to public providers, graduate had not responded to the twin challenges of ments under the State Children’s Health In- medical education, school-based serv- an economic downturn and a sharp drop-off surance Program (CHIP) relating to the pre- ices, and rehabilitative services that in private health insurance coverage. vention of the substitution of health benefits

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coverage for children (commonly referred to (B) COMMONWEALTHS AND TERRITORIES IN- (i) disproportionate share hospital pay- as ‘‘crowd-out’’) and the enforcement of med- CLUDED.—Such term includes a common- ments described in section 1923 of such Act ical support orders. Any change made on or wealth or territory specified in paragraph (42 U.S.C. 1396r–4); after August 17, 2007, to a Medicaid or CHIP (4). (ii) payments under title IV or XXI of such State plan or waiver to implement, conform (2) ROUND TWO QUALIFYING STATE.—The Act (42 U.S.C. 601 et seq. and 1397aa et seq.); to, or otherwise adhere to the requirements term ‘‘Round Two Qualifying State’’ means a or or policies in such letter shall not apply State that is 1 of the 50 States or the Dis- (iii) any payments under XIX of such Act prior to April 1, 2009. trict of Columbia and that— that are based on the enhanced FMAP de- (4) The proposed rule entitled ‘‘Medicaid (A) has 1 of 38 highest averages of the scribed in section 2105(b) of such Act (42 Program; Clarification of Outpatient Clinic State rankings for the 3 qualifying criteria U.S.C. 1397ee(b)). and Hospital Facility Services definition and identified in clauses (i), (ii), and (iii) of para- (F) STATE ELIGIBILITY.— Upper Payment Limit’’, published on Sep- graph (1)(A), based on the most recent data (i) IN GENERAL.—Subject to clause (ii), a tember 28, 2007, on pages 55158 through 55166 available as of October 1, 2008; and Round One Qualifying State is eligible for an of volume 72, Federal Register. (B) is not a Round One Qualifying State. increase in its FMAP under subparagraph (C) (5) The interim final rule entitled ‘‘Med- (3) FMAP.—The term ‘‘FMAP’’ means the or an increase in a cap amount under sub- icaid Program; Optional State Plan Case Federal medical assistance percentage, as paragraph (D) only if the eligibility under its Management Services’’, published on Decem- defined in section 1905(b) of the Social Secu- State plan under title XIX of the Social Se- ber 4, 2007, on pages 68077 through 68093 of rity Act (42 U.S.C. 1396d(b)). curity Act (including any waiver under such volume 72, Federal Register. (4) STATE.—The term ‘‘State’’ means the 50 title or under section 1115 of such Act (42 (6) The proposed rule entitled ‘‘Revisions States, the District of Columbia, the Com- U.S.C. 1315)) is no more restrictive than the to Procedures for the Departmental Appeals monwealth of Puerto Rico, the United States eligibility under such plan (or waiver) as in Board and Other Departmental Hearings’’, Virgin Islands, Guam, the Commonwealth of effect on December 31, 2007. published on December 28, 2007, on pages the Northern Mariana Islands, and American (ii) STATE REINSTATEMENT OF ELIGIBILITY 73708 through 73720 of volume 72, Federal Samoa. PERMITTED.—A Round One Qualifying State that has restricted eligibility under its State Register. (b) ASSISTANCE FOR ROUND ONE QUALIFYING (b) EXTENSION OF PRIOR MORATORIA.— plan under title XIX of the Social Security STATES.— Act (including any waiver under such title or (1) MORATORIUM RELATING TO THE COST (1) TEMPORARY INCREASE OF MEDICAID under section 1115 of such Act (42 U.S.C. LIMIT FOR PROVIDERS OPERATED BY UNITS OF FMAP.— 1315)) after December 31, 2007, is eligible for GOVERNMENT AND PROVISIONS TO ENSURE THE (A) PERMITTING MAINTENANCE OF FISCAL an increase in its FMAP under subparagraph INTEGRITY OF FEDERAL-STATE FINANCIAL YEAR 2007 FMAP FOR LAST 2 CALENDAR QUAR- (C) or an increase in a cap amount under sub- PARTNERSHIP.—Section 7002(a)(1) of the U.S. TERS OF FISCAL YEAR 2008.—Subject to sub- Troop Readiness, Veterans’ Care, Katrina paragraph (D) in the first calendar quarter paragraphs (E), (F), (G), and (H), if the (and subsequent calendar quarters) in which Recovery, and Iraq Accountability Appro- FMAP determined without regard to this the State has reinstated eligibility that is no priations Act of 2007 (Public Law 110–28) is paragraph for a Round One Qualifying State more restrictive than the eligibility under amended by striking ‘‘the date that is 1 year for fiscal year 2008 is less than the FMAP as such plan (or waiver) as in effect on Decem- after the date of enactment of this Act’’ and so determined for fiscal year 2007, the FMAP ber 31, 2007. inserting ‘‘April 1, 2009’’. for the State for fiscal year 2007 shall be sub- (iii) RULE OF CONSTRUCTION.—Nothing in (2) MORATORIA RELATING TO REHABILITATION stituted for the State’s FMAP for the third clause (i) or (ii) shall be construed as affect- SERVICES, SCHOOL-BASED ADMINISTRATION AND and fourth calendar quarters of fiscal year ing a Round One Qualifying State’s flexi- SCHOOL-BASED TRANSPORTATION.—Section 206 2008, before the application of this para- bility with respect to benefits offered under of the Medicare, Medicaid, and SCHIP Exten- graph. the State medicaid program under title XIX sion Act of 2007 (Public Law 110–173) is (B) PERMITTING MAINTENANCE OF FISCAL of the Social Security Act (42 U.S.C. 1396 et amended by striking ‘‘June 30, 2008’’ and in- YEAR 2008 FMAP FOR FIRST 3 QUARTERS OF FIS- seq.) (including any waiver under such title serting ‘‘April 1, 2009’’. CAL YEAR 2009.—Subject to subparagraphs (E), or under section 1115 of such Act (42 U.S.C. SEC. 4. TEMPORARY, TARGETED STATE FISCAL (F), (G), and (H), if the FMAP determined 1315)). RELIEF. without regard to this paragraph for a Round (G) REQUIREMENT FOR CERTAIN STATES.—In (a) DEFINITIONS.—In this section: One Qualifying State for fiscal year 2009 is the case of a Round One Qualifying State (1) ROUND ONE QUALIFYING STATE.— less than the FMAP as so determined for fis- that requires political subdivisions within (A) IN GENERAL.—Subject to subparagraph cal year 2008, the FMAP for the State for fis- the State to contribute toward the non-Fed- (B), the term ‘‘Round One Qualifying State’’ cal year 2008 shall be substituted for the eral share of expenditures under the State means with respect to a State that is 1 of the State’s FMAP for the first, second, and third Medicaid plan required under section 50 States or the District of Columbia, a State calendar quarters of fiscal year 2009, before 1902(a)(2) of the Social Security Act (42 that has 1 of 28 highest averages of the State the application of this paragraph. U.S.C. 1396a(a)(2)), the Round One Qualifying rankings for each of the following 3 quali- (C) GENERAL 1.667 PERCENTAGE POINTS IN- State shall not require that such political fying criteria, based on the most recent data CREASE FOR LAST 2 CALENDAR QUARTERS OF subdivisions pay a greater percentage of the available as of April 1, 2008: FISCAL YEAR 2008 AND FIRST 3 CALENDAR QUAR- non-Federal share of such expenditures for (i) REDUCTION IN EMPLOYMENT.—The year- TERS OF FISCAL YEAR 2009.—Subject to sub- the third and fourth calendar quarters of fis- to-year reduction in total employment, paragraphs (E), (F), (G), and (H), for each cal year 2008 and the first, second, and third based on the average total employment for Round One Qualifying State for the third calendar quarters of fiscal year 2009, than the State or District in the 3 most recent and fourth calendar quarters of fiscal year the percentage that would have been re- months compared to the average total em- 2008 and for the first, second, and third cal- quired by the State under such plan on De- ployment for the State or District in the endar quarters of fiscal year 2009, the FMAP cember 31, 2007. same months a year earlier, as determined (taking into account the application of sub- (H) REQUIREMENTS.—A Round One Quali- based on the most recent monthly publica- paragraphs (A) and (B)) shall be increased by fying State— tions of the Current Employer Statistics 1.667 percentage points. (i) may not use the additional Federal Survey of the Bureau of Labor Statistics. (D) INCREASE IN CAP ON MEDICAID PAYMENTS funds paid to the State as a result of this (ii) INCREASE IN FOOD STAMPS PARTICIPA- TO TERRITORIES.—Subject to subparagraphs paragraph for purposes of increasing any re- TION.—The year-to-year increase in food (E), (F), (G), and (H), with respect to the serve or rainy day fund maintained by the stamps participation, based on average third and fourth calendar quarters of fiscal State; and monthly participation for the State or Dis- year 2008 and the first, second, and third cal- (ii) shall expend the additional Federal trict in the 3 most recent months compared endar quarters of fiscal year 2009, the funds paid to the State as a result of this to the average monthly participation for the amounts otherwise determined for the Com- paragraph within 1 year of the date on which State or District in the same months a year monwealth of Puerto Rico, the United States the State receives such funds. earlier, as determined based on the most re- Virgin Islands, Guam, the Commonwealth of (2) TARGETED GRANTS TO ROUND ONE QUALI- cent monthly publications of Food and Nu- the Northern Mariana Islands, and American FYING STATES.— trition Service Data of the Department of Samoa under subsections (f) and (g) of sec- (A) APPROPRIATION.—There is authorized to Agriculture. tion 1108 of the Social Security Act (42 be appropriated and is appropriated for mak- (iii) INCREASE IN THE FORECLOSURE RATE.— U.S.C. 1308) shall each be increased by an ing payments to Round One Qualifying The year-to-year increase in the foreclosure amount equal to 3.334 percent of such States under this paragraph— rate for the State or District, based on the amounts. (i) $2,500,000,000 for fiscal year 2008; and foreclosure rate for the State or District for (E) SCOPE OF APPLICATION.—The increases (ii) $2,500,000,000 for fiscal year 2009. the most recent quarter compared to the in the FMAP for a Round One Qualifying (B) PAYMENTS.— same quarter a year earlier, as determined State and the increases in the cap amounts (i) FISCAL YEAR 2008.—From the amount ap- by the Mortgage Bankers Association’s Na- under subparagraph (D) under this paragraph propriated under subparagraph (A)(i) for fis- tional Delinquency Survey, as published in shall apply only for purposes of title XIX of cal year 2008, the Secretary of the Treasury most recent report entitled, ‘‘Recent Fore- the Social Security Act and shall not apply shall, not later than the later of the date closure Trends Report for all States’’. with respect to— that is 45 days after the date of enactment of

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00081 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.062 S03APPT1 ccoleman on PRODPC75 with SENATE S2448 CONGRESSIONAL RECORD — SENATE April 3, 2008 this Act or the date that a Round One Quali- (II) may not use the additional Federal amount described in this clause is the prod- fying State provides the certification re- funds paid to the State as a result of this uct of— quired by subparagraph (E) for fiscal year paragraph for purposes of increasing any re- (I) the amount described in subparagraph 2008, pay each such State the amount deter- serve or rainy day fund maintained by the (A) for a fiscal year; and mined for the State for fiscal year 2008 under State; and (II) the relative State population propor- subparagraph (C). (III) shall expend the additional Federal tion (as defined in clause (iv)). (ii) FISCAL YEAR 2009.—From the amount funds paid to the State as a result of this (iv) RELATIVE STATE POPULATION PROPOR- appropriated under subparagraph (A)(ii) for paragraph within 1 year of the date on which TION DEFINED.—For purposes of clause fiscal year 2009, the Secretary of the Treas- the State receives such funds. (iii)(II), the term ‘‘relative State population ury shall, not later than the later of October (E) CERTIFICATION.—In order to receive a proportion’’ means, with respect to a Round 1, 2008, or the date that a Round One Quali- payment under this section for a fiscal year, Two Qualifying State, the amount equal to fying State provides the certification re- a Round One Qualifying State shall provide the quotient of— quired by subparagraph (E) for fiscal year the Secretary of the Treasury with a certifi- (I) the population of the State (as reported 2009, pay each such State the amount deter- cation that the State’s proposed uses of the in the most recent decennial census); and mined for the State for fiscal year 2009 under funds are consistent with subparagraph (D). (II) the total population of all such States (c) ASSISTANCE FOR ROUND TWO QUALIFYING subparagraph (C). (as reported in the most recent decennial STATES.— (C) PAYMENTS BASED ON POPULATION.— census). (1) TEMPORARY INCREASE OF MEDICAID (i) IN GENERAL.—Subject to clause (ii), the (D) APPLICATION OF REQUIREMENTS FOR FMAP.— amount appropriated under subparagraph (A) ROUND ONE QUALIFYING STATES.—Subpara- (A) PERMITTING MAINTENANCE OF FISCAL for each of fiscal years 2008 and 2009 shall be graphs (D) and (E) of subsection (b)(2) apply YEAR 2008 FMAP FOR FIRST 3 QUARTERS OF FIS- used to pay each Round One Qualifying State to a Round Two Qualifying State receiving a CAL YEAR 2009.—Subject to subparagraph (C), an amount equal to the relative population payment under subparagraph (B) in the same if the FMAP determined without regard to manner as such subparagraphs apply to a proportion amount described in clause (iii) this paragraph for a Round Two Qualifying for such fiscal year. Round One Qualifying State under such sub- State for fiscal year 2009 is less than the section. (ii) MINIMUM PAYMENT.— FMAP as so determined for fiscal year 2008, (I) IN GENERAL.—No Round One Qualifying (d) REPEAL.—Effective as of October 1, 2009, the FMAP for the State for fiscal year 2008 this section is repealed. State shall receive a payment under this shall be substituted for the State’s FMAP for paragraph for a fiscal year that is less than— the first, second, and third calendar quarters BY Mr. ROCKEFELLER (for him- (aa) in the case of a Round One Qualifying of fiscal year 2009, before the application of self and Mr. GRAHAM): State that is 1 of the 50 States or the Dis- this paragraph. 1 S. 2820. A bill to amend part A of trict of Columbia, ⁄2 of 1 percent of the (B) GENERAL 1.667 PERCENTAGE POINTS IN- title IV of the Social Security Act to amount appropriated for such fiscal year CREASE FOR FIRST 3 CALENDAR QUARTERS OF under subsection (a); and FISCAL YEAR 2009.—Subject to subparagraph extend and expand the number of (bb) in the case of the Commonwealth of (C), for each Round Two Qualifying State for States qualifying for supplemental Puerto Rico, the United States Virgin Is- the first, second, and third calendar quarters grants under the Temporary Assistance lands, Guam, the Commonwealth of the of fiscal year 2009, the FMAP (taking into ac- for Needy Families program; to the Northern Mariana Islands, or American count the application of subparagraph (A)) Committee on Finance. Samoa, 1⁄10 of 1 percent of the amount appro- shall be increased by 1.667 percentage points. Mr. ROCKEFELLER. Mr. President, I priated for such fiscal year under subsection (C) APPLICATION OF REQUIREMENTS FOR rise today to introduce the bipartisan (a). ROUND ONE QUALIFYING STATES.—Subpara- reauthorization and expansion for the (II) PRO RATA ADJUSTMENTS.—The Sec- graphs (E), (F), (G), and (H) of subsection Temporary Assistance for Needy Fami- retary of the Treasury shall adjust on a pro (b)(1) apply to a Round Two Qualifying State rata basis the amount of the payments to receiving an increase in its FMAP under sub- lies, TANF, Supplemental Grants with Round One Qualifying States determined paragraph (B) in the same manner as such my colleague, Senator LINDSEY under this paragraph without regard to this subparagraphs apply to a Round One Quali- GRAHAM of South Carolina. subclause to the extent necessary to comply fying State under such subsection. The TANF Supplemental Grants will with the requirements of subclause (I). (2) TARGETED GRANTS TO ROUND TWO QUALI- expire this year without action. Cur- (iii) RELATIVE POPULATION PROPORTION FYING STATES.— rently 17 States depend on these AMOUNT.—The relative population proportion (A) APPROPRIATION.—There is authorized to grants, but our legislation would ex- amount described in this clause is the prod- be appropriated and is appropriated for mak- pand and improve on the grants. Wel- uct of— ing payments to Round Two Qualifying (I) the amount described in subparagraph States under this paragraph, $1,000,000,000 for fare reform was passed in 1996, and (A) for a fiscal year; and fiscal year 2009. since then neither the basic TANF (II) the relative State population propor- (B) PAYMENTS.—From the amount appro- Block Grant nor the TANF Supple- tion (as defined in clause (iv)). priated under subparagraph (A) for fiscal mental Grant has been increased. This (iv) RELATIVE STATE POPULATION PROPOR- year 2009, the Secretary of the Treasury means that the value of the TANF TION DEFINED.—For purposes of clause shall, not later than the later of October 1, funding in constant dollars has de- (iii)(II), the term ‘‘relative State population 2008, or the date that a Round Two Quali- clined by almost 20 percent. proportion’’ means, with respect to a Round fying State provides the certification re- In 2010, Congress will need to review One Qualifying State, the amount equal to quired by subparagraph (E) of subsection the entire TANF program, but between the quotient of— (b)(2) for fiscal year 2009, pay each such State now and then our legislation seeks to (I) the population of the State (as reported the amount determined for the State for fis- in the most recent decennial census); and cal year 2009 under subparagraph (C). provide modest help for States that are (II) the total population of all such States (C) PAYMENTS BASED ON POPULATION.— struggling to serve vulnerable children (as reported in the most recent decennial (i) IN GENERAL.—Subject to clause (ii), the in needy families. Our legislation census). amount appropriated under subparagraph (A) would provide a modest increase for (D) USE OF PAYMENT.— for fiscal year 2009 shall be used to pay each any State which spends less than the (i) IN GENERAL.—Subject to clause (ii), a Round Two Qualifying State an amount national average per underprivileged Round One Qualifying State shall use the equal to the relative population proportion child on TANF activities of Federal funds provided under a payment made under amount described in clause (iii) for such fis- and State resources. This would help this paragraph for a fiscal year to— cal year. States that cannot meet the average (I) provide essential government services; (ii) MINIMUM PAYMENT.— (II) cover the costs to the State of com- (I) IN GENERAL.—No Round Two Qualifying ‘‘catch up,’’ and provide more services plying with any Federal intergovernmental State shall receive a payment under this to underprivileged children. To be rea- mandate (as defined in section 421(5) of the paragraph for fiscal year 2009 that is less sonable, the increase is capped at $10 Congressional Budget Act of 1974) to the ex- than 1⁄2 of 1 percent of the amount appro- million or 10 percent of their existing tent that the mandate applies to the State, priated for such fiscal year under subsection TANF grant for States that have never and the Federal Government has not pro- (a). received a TANF Supplemental Grant. vided funds to cover the costs; or (II) PRO RATA ADJUSTMENTS.—The Sec- For States that are receiving a TANF (III) compensate for a decline in Federal retary of the Treasury shall adjust on a pro Supplemental Grant, they could qual- funding to the State. rata basis the amount of the payments to ify for up to $2.5 million in additional (ii) REQUIREMENTS.—A Round One Quali- Round Two Qualifying States determined fying State— under this paragraph without regard to this funding or 2.5 percent of their existing (I) may only use funds provided under a subclause to the extent necessary to comply TANF grant. payment made under this paragraph for with the requirements of subclause (I). This is a modest but important effort types of expenditures permitted under the (iii) RELATIVE POPULATION PROPORTION to help every state provide for vulner- most recently approved budget for the State; AMOUNT.—The relative population proportion able children who are receiving less

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00082 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.062 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2449 than that national average for an un- South Carolina, that cannot afford to posing any political solution offered as an al- derprivileged child. This proposal spend the national average per poor ternative to demolishing the Zionist occupa- should help the most vulnerable at a child on TANF services. Especially dur- tion in Palestine, as well as any project in- time when the economic slowdown is ing economically challenging times, tended to liquidate the Palestinian case or impose any international mandate on its creating more obstacles for families to providing this assistance to States can people.’’; (8) ‘‘Article (23): Maintaining rela- make a successful transition from wel- help our neediest families with chil- tions with Arab countries . . . with the pro- fare to work. dren to get back on their feet and back viso that the armed struggle is not nega- In West Virginia, our neediest chil- to work. tively affected’’; (9) ‘‘Article (24): Maintain- dren are not even receiving the average In working to pass this legislation, I ing relations with all liberal forces sup- amount spent on America’s underprivi- look forward to collaborating with the porting our just struggle in order to resist leged children, and that is true in too Senate Finance Committee and Sen- Zionism and imperialism’’; and (10) ‘‘Article (25): Convincing concerned countries in the many States. Our children and families ator ROCKEFELLER on identifying an are struggling to meet the bold goals of world to prevent Jewish immigration to Pal- appropriate mechanism to offset the estine as a method of solving the problem.’’: welfare reform with fewer resources costs of this proposal. I am hopeful Now, therefore be it and tougher standards. This reauthor- that the Senate will consider this legis- Resolved, That the Senate— ization is a chance to help those States lation in a timely manner. (1) urges President Mahmoud Abbas of the Palestinian Authority, who is also head of that are struggling to achieve the na- f tional average for funding. It would be the Fatah Party, to officially abrogate the 10 base funding for underprivileged chil- SUBMITTED RESOLUTIONS articles from the Fatah Constitution that dren rather than population growth. It call for the destruction of Israel and terrorism against Israel, oppose any political will target resources to vulnerable SENATE RESOLUTION 499—URGING solution, and label Zionism as racism; and children. (2) condemns the continuing existence of Mr. GRAHAM. Mr. President, I rise PALESTINIAN AUTHORITY PRESI- these articles as part of the Fatah Constitu- in support of the reauthorization of the DENT MAHMOUD ABBAS, WHO IS tion. TANF Supplemental Grant program. ALSO THE HEAD OF THE FATAH Mr. SPECTER. Mr. President, I have Today Senator ROCKEFELLER and I in- PARTY, TO OFFICIALLY ABRO- sought recognition to offer legislation troduced legislation that would reau- GATE THE 10 ARTICLES IN THE to encourage Palestinian Authority thorize these grants and more accu- FATAH CONSTITUTION THAT President Mahmoud Abbas, who is also rately ensure that the dollars spent on CALL FOR ISRAEL’S DESTRUC- the chairman of the Fatah Party, to of- this program are directed to poor chil- TION AND TERRORISM AGAINST ficially abrogate the 10 articles in the dren in the States that need it most. ISRAEL, OPPOSE ANY POLITICAL Fatah Constitution that call for I am committed to ensuring that SOLUTION, AND LABEL ZIONISM Israel’s destruction and terrorism Federal dollars spent on welfare serv- AS RACISM against Israel, oppose any political so- ices and benefits are spent efficiently Mr. SPECTER (for himself, Mr. lution, and label Zionism as racism. and provided to our citizens in a way WYDEN, and Mr. CASEY) submitted the In order to move the Middle East that encourages self-sufficiency. In following resolution; which was re- peace process forward, it is necessary South Carolina, I am pleased that our ferred to the Committee on Foreign that the Fatah Party recognize Israel’s Department of Social Services con- Relations: legitimacy. The Fatah Constitution tinues to work toward that end. Cur- S. RES. 499 makes this impossible. At present, 10 rently, less than half of States’ TANF articles in the constitution oppose Whereas, on October 3, 2006, President block grants are spent on welfare Mahmoud Abbas of the Palestinian Author- Israel and Zionism. They read as fol- checks, and the majority of funding is ity said, ‘‘It is not required of Hamas, or of lows: spent on moving welfare recipients into Fatah, or of the Popular Front to recognize (1) ‘‘Article [4]: The Palestinian struggle is the workforce. More and more States Israel’’; part and parcel of the world-wide struggle are using TANF dollars to help bene- Whereas, on February 8, 2007, President against Zionism, colonialism and inter- ficiaries purchase services such as Mahmoud Abbas openly signed the Mecca national imperialism.’’ (2) ‘‘Article [7]: The Zionist Movement is childcare, transportation and job train- Agreement with Hamas, which does not recognize Israel and calls ‘‘for confronting the racial, colonial and aggressive in ideology, ing. goals, organization and method.’’ However, the neediest States con- [Israeli] occupation’’; Whereas, in 2007, there continue to exist 10 (3) ‘‘Article [8]: The Israeli existence in tinue to struggle to provide welfare-to- specific articles out of 27 articles in Chapter Palestine is a Zionist invasion with a colo- work services to poor families with 1 of the Fatah Constitution that call for nial expansive base, and it is a natural ally children. South Carolina can only af- Israel’s destruction, call for the armed strug- to colonialism and international impe- ford to spend 29 percent of the national gle and armed revolution against Israel to rialism.’’ (4) ‘‘Article [12]: Complete liberation of continue, call for the prevention of Jewish average per poor child on TANF serv- Palestine, and eradication of Zionist eco- immigration to Israel, oppose any political ices compared to some States that nomic, political, military and cultural exist- solution, and label Zionism as racism; spend well over the national average. It ence.’’ is important that this discrepancy be Whereas the 10 articles of the Fatah Con- (5) ‘‘Article [17]: Armed public revolution is stitution that oppose Israel and Zionism are: addressed. the inevitable method to liberating Pal- (1) ‘‘Article (4): The Palestinian struggle is estine.’’ The TANF Supplemental Grant pro- part and parcel of the world-wide struggle gram was created in 1996 to provide ad- (6) ‘‘Article [19]: Armed struggle is a strat- against Zionism, colonialism and inter- egy and not a tactic, and the Palestinian ditional assistance to States that national imperialism.’’; (2) ‘‘Article (7): The Arab People’s armed revolution is a decisive spend less money per poor person on Zionist Movement is racial, colonial and ag- factor in the liberation fight and in uproot- TANF services. However, many States, gressive in ideology, goals, organization and ing the Zionist existence, and this struggle like South Carolina, spend well below method.’’; (3) ‘‘Article (8): The Israeli exist- will not cease unless the Zionist state is de- the national average and do not qualify ence in Palestine is a Zionist invasion with molished and Palestine is completely liber- a colonial expansive base, and it is a natural ated.’’ for this assistance. To date, South ally to colonialism and international impe- Carolina has the lowest spending per (7) ‘‘Article [22]: Opposing any political so- rialism.’’; (4) ‘‘Article (12): Complete libera- lution offered as an alternative to demol- poor person of any State in the country tion of Palestine, and eradication of Zionist ishing the Zionist occupation in Palestine, that does not receive a supplemental economic, political, military and cultural as well as any project intended to liquidate grant. Many States that do receive existence.’’; (5) ‘‘Article (17): Armed public the Palestinian case or impose any inter- supplemental grants spend more than revolution is the inevitable method to liber- national mandate on its people.’’ twice the TANF funds per poor person ating Palestine.’’; (6) ‘‘Article (19): Armed (8) ‘‘Article [23]: Maintaining relations than South Carolina. struggle is a strategy and not a tactic, and with Arab countries . . . with the proviso The Supplemental Grant program the Palestinian Arab People’s armed revolu- that the armed struggle is not negatively af- tion is a decisive factor in the liberation fected.’’ will expire on September 30, 2008. Reau- fight and in uprooting the Zionist existence, (9) ‘‘Article [24]: Maintaining relations thorizing this program is an oppor- and this struggle will not cease unless the with all liberal forces supporting our just tunity to provide assistance, based on Zionist state is demolished and Palestine is struggle in order to resist Zionism and impe- updated statistics, to States, like completely liberated.’’; (7) ‘‘Article (22): Op- rialism.’’

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00083 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.072 S03APPT1 ccoleman on PRODPC75 with SENATE S2450 CONGRESSIONAL RECORD — SENATE April 3, 2008 (10) ‘‘Article [25]: Convincing concerned Ramallah, ‘‘If you’re going to have a SENATE RESOLUTION 501—HON- countries in the world to prevent Jewish im- two-state solution, you have to accept ORING THE SACRIFICE OF THE migration to Palestine as a method of solv- the right of the other party to exist. If MEMBERS OF THE UNITED ing the problem.’’ STATES ARMED FORCES WHO The issue of the Mideast peace proc- you’re going to have a two-state solution that is born of negotiation, you’re HAVE BEEN KILLED IN IRAQ ess has been tortuous. There have been AND AFGHANISTAN so many developments since Israel going to have to renounce violence.’’ I emerged as a state in 1949. The enmity, urge President Abbas to take action, Mr. KENNEDY (for himself, Mr. which has existed for thousands of not only in words, but with deeds. REID, Mr. MCCONNELL, Mr. DURBIN, Mr. years, has meant senseless killing, ter- KYLE, Mr.AKAKA, Mr. ALEXANDER, Mr. rorism in Israel, and Hezbollah firing f ALLARD, Mr. BARRASSO, Mr. BAUCUS, rockets into northern Israel, prompt- Mr. BAYH, Mr. BENNETT, Mr. BIDEN, Mr. ing the justified retaliation by Israel as BINGAMAN, Mr. BOND, Mrs. BOXER, Mr. SENATE RESOLUTION 500—HON- BROWN, Mr. BROWNBACK, Mr. BUNNING, a matter of self-defense. ORING MILITARY CHILDREN Much has changed since the Fatah Mr. BURR, Mr. BYRD, Ms. CANTWELL, Constitution was written in 1964. While DURING ‘‘NATIONAL MONTH OF Mr. CARDIN, Mr. CARPER, Mr. CASEY, some question the relevance of the doc- THE MILITARY CHILD’’ Mr. CHAMBLISS, Mrs. CLINTON, Mr. COBURN, Mr. COCHRAN, Mr. COLEMAN, ument with respect to the day-to-day Mr. KENNEDY (for himself and Mr. operations of the Palestinian Govern- Ms. COLLINS, Mr. CONRAD, Mr. CORKER, BAYH) submitted the following resolu- ment, the fact remains that the lan- Mr. CORNYN, Mr. CRAIG, Mr. CRAPO, Mr. tion; which was referred to the Com- guage is incendiary. By striking the DEMINT, Mr. DODD, Mrs. DOLE, Mr. polemical language from its constitu- mittee on Armed Services: DOMENCI, Mr. DORGAN, Mr. ENSIGN, Mr. tion, Fatah would be setting an exam- S. RES. 500 ENZI, Mr. FEINGOLD, Mrs. FEINSTEIN, ple for the Arab world. It would dem- Whereas more than 2,000,000 men and Mr. GRAHAM, Mr. GRASSLEY, Mr. onstrate that the Palestinian leader- women are demonstrating their courage and GREGG, Mr. HAGEL, Mr. HARKIN, Mr. ship understands the importance of commitment to freedom by serving in the HATCH, Mrs. HUTCHISON, Mr. INHOFE, words and perceptions in the peace Armed Forces of the United States; Mr. INOUYE, Mr. ISAKSON, Mr. JOHNSON, process. Whereas 46 percent of members of the Mr. KERRY, Ms. KLOBUCHAR, Mr. KOHL, This is not the first time I have ad- Armed Forces, when deployed away from Ms. LANDRIEU, Mr. LAUTENBERG, Mr. dressed such an issue. In 1994, the U.S. their permanent duty stations, leave fami- LEAHY, Mr. LEVIN, Mr. LIEBERMAN, Mrs. Congress adopted an amendment put lies with children behind; LINCOLN, Mr. LUGAR, Mr. MARTINEZ, forward by Senator SHELBY and myself, Whereas no one feels the effect of deploy- Mr. MCCAIN, Mrs. MCCASKILL, Mr. which conditioned U.S. aid on the Pal- ments more than the children of deployed MENENDEZ, Ms. MIKULSKI, Ms. MUR- estinian Liberation Organization’s members of the Armed Forces; KOWSKI, Mrs. MURRAY, Mr. NELSON of Whereas, as of March 2007, approximately elimination of provisions in its charter Florida, Mr. NELSON of Nebraska, Mr. 2,108 children had lost a parent serving in that called for the destruction of OBAMA, Mr. PRYOR, Mr. REED, Mr. ROB- Israel. The amendment was accepted Operation Iraqi Freedom and Operation En- during Freedom; ERTS, Mr. ROCKEFELLER, Mr. SALAZAR, by the U.S. Congress. Mr. SANDERS, Mr. SCHUMER, Mr. SES- The problem of the institutionaliza- Whereas the daily struggles and personal sacrifices of children of members of the SIONS, Mr. SHELBY, Mr. SMITH, Ms. tion of inflammatory language in the Armed Forces too often go unnoticed; SNOWE, Mr. SPECTER, Ms. STABENOW, Middle East extends beyond the Fatah Whereas the children of members of the Mr. STEVENS, Mr. SUNUNU, Mr. TESTER, Constitution. The Center for Religious Armed Forces are a source of pride and Mr. THUNE, Mr. VITTER, Mr. VOINOVICH, Freedom, formerly affiliated with honor to the people of the United States and Mr. WARNER, Mr. WEBB, Mr. Freedom House, in a 2006 report enti- it is fitting that the Nation recognize their WHITEHOUSE, Mr. WICKER, and Mr. tled ‘‘Saudi Arabia’s Curriculum of In- contributions and celebrate their spirit; WYDEN) submitted the following reso- tolerance,’’ stated that despite 2005 Whereas the ‘‘National Month of the Mili- lution; which was considered and statements by the Saudi Foreign Min- tary Child’’, observed in April each year, rec- agreed to: ister that their educational curricula ognizes military children for their sacrifices S. RES. 501 have been reformed, this is ‘‘simply not and contributes to demonstrating the Na- the case.’’ On the contrary, religious tion’s unconditional support for members of Whereas 4,009 members of the United States Armed Forces have lost their lives in textbooks continue to advocate the de- the Armed Forces; Whereas, in addition to Department of De- support of Operation Iraqi Freedom and 487 struction of any non-Wahhabi Muslim. members of the United States Armed Forces Saudi Arabia has established fense programs to support military families and military children, various programs and have lost their lives in support of Operation Wahhabism, an extreme form of Islam, campaigns have been established in the pri- Enduring Freedom; as the official state doctrine, and about vate sector to honor, support, and thank Whereas we honor the ultimate sacrifice that these men and women made for our 5 million children are instructed each military children by fostering awareness and country; year in Islamic studies using Saudi appreciation for the sacrifices and the chal- Whereas the sacrifices of the fallen are in Ministry of Education textbooks. lenges they face; and My intent in bringing the Fatah Con- keeping with the highest traditions of the Whereas a month-long salute to military United States Army, Navy, Marine Corps, stitution into focus now is not to un- children will encourage support for those or- Air Force, and Coast Guard; dermine the Presidency of Mahmoud ganizations and campaigns established to Whereas, as their families and loved ones Abbas. Rather, my intent is to ensure provide direct support for military children have sacrificed as well, we honor them in that these problems of perception are and families: Now, therefore, be it commemorating the memory of those that addressed now so that all parties can Resolved, That the Senate— lost their lives; take further steps towards peace. (1) joins the Secretary of Defense in hon- Whereas the following 4,009 members of the The November 27, 2007, Joint Israeli- oring the children of members of the Armed United States Armed Forces have lost their Palestinian Declaration at Annapolis Forces and recognizes that those children lives in support of Operation Iraqi Freedom: stated, ‘‘We express our determination also share in the burden of protecting the (1) Corporal Roberto Abad, Los Angeles, California; to bring an end to bloodshed, suffering Nation; (2) urges the people of the United States to (2) Commander Joseph Acevedo, Bronx, and decades of conflict between our New York; join with the military community in observ- peoples; to usher in a new era of peace, (3) Sergeant First Class Ramon A. ing the ‘‘National Month of the Military based on freedom, security, justice, Acevedoaponte, Watertown, New York; Child’’ with appropriate ceremonies and ac- dignity, respect and mutual recogni- (4) Sergeant Michael D. Acklin II, Louis- tivities that honor, support, and thank mili- ville, Kentucky; tion; to propagate a culture of peace tary children; and and nonviolence; to confront terrorism (5) Specialist Genaro Acosta, Fair Oaks, (3) recognizes with great appreciation the California; and incitement, whether committed by contributions made by private-sector organi- (6) Private First Class Steven Acosta; Palestinians or Israelis.’’ zations that provide resources and assistance Calexico, California; As Secretary of State Condoleezza to military families and the communities (7) Specialist James L. Adair, Carthage, Rice stated on October 15, 2007, in that support them. Texas;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00084 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.095 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2451 (8) Captain James Francis Adamouski, (52) Sergeant Chad M. Allen, Maple Lake, (97) Specialist Edward John Anguiano, Springfield, Virginia; Minnesota; Brownsville, Texas; (9) Private Algernon Adams, Aiken, South (53) Sergeant Howard P. Allen, Mesa, Ari- (98) Master Sergeant Brett E. Angus, St. Carolina; zona; Paul, Minnesota; (10) Sergeant Brandon E. Adams, (54) Sergeant John E. Allen, Palmdale, (99) Private First Class Joseph J. Anzack, Hollidaysburg, Pennsylvania; California; Torrance, California; (11) Sergeant First Class Brent A. Adams; (55) First Lieutenant Louis E. Allen, Mil- (100) Sergeant Matthew S. Apuan, Las West View, Pennsylvania; ford, Pennsylvania; Cruces, New Mexico; (12) Sergeant Leonard W. Adams, Moores- (56) Army Staff Sergeant Charles D. Allen, (101) Sergeant Kurtis Dean K. Arcala, ville, North Carolina; Wasilla, Alaska; Palmer, Alaska; (13) Sergeant Mark P. Adams, Morrisville, (57) Corporal Terrence P. Allen, Penn- (102) Private First Class Elden D. Arcand, North Carolina; sauken, New Jersey; White Bear Lake, Minnesota; (14) First Lieutenant Michael R. Adams, (58) Sergeant Lonnie Calvin Allen, Jr., (103) Private First Class Michael A. Seattle, Washington; Bellevue, Nebraska; Arciola, Elmsford, New York; (15) Private First Class Michael S. Adams, (59) Specialist Ronald D. Allen, Jr., Mitch- (104) Sergeant Brian D. Ardron, Acworth, Spartanburg, South Carolina; ell, Indiana; Georgia; (16) Lieutenant Thomas Mullen Adams, La (60) Staff Sergeant William Alvin Allers (105) Sergeant Julian M. Arechaga, Ocean- Mesa, California; III, Leitchfield, Kentucky; side, New York; (17) Sergeant Shawn G. Adams, Dixon, (61) Colonel Brian D. Allgood, Oklahoma; (106) Private First Class James J. Arellano, California; (62) Sergeant Glenn R. Allison, Pittsfield, Cheyenne, Wyoming; (18) Specialist Clarence Adams III, Rich- Massachusetts; (107) Captain Derek Argel, Lompoc, Cali- mond, Virginia; (63) Private First Class Daniel J. Allman fornia; (19) Captain Shane T. Adcock, Mechanics- II, Canon, Georgia; (108) Sergeant Roberto Arizola, Jr., Laredo, ville, Virginia; (64) Specialist Jeremy O. Allmon, Texas; (20) Specialist Jamaal Rashard Addison, Cleburne, Texas; (109) Corporal Reynold Armand, Rochester, Roswell, Georgia; (65) Lance Corporal Michael J. Allred, New York; (21) Sergeant Dustin M. Adkins, Finger, Hyde Park, Utah; (110) Specialist Raymond S. Armijo, Phoe- Tennessee; (66) Captain Eric L. Allton, Houston, nix, Arizona; (22) Lance Corporal Patrick R. Adle, Texas; (111) Corporal Bradley Thomas Arms, Char- Belair, Maryland; (67) Sergeant David J. Almazan, Van Nuys, lottesville, Virginia; (23) Private First Class Christopher S. California; (112) Corporal David C. Armstrong, Zanes- Adlesperger, Albuquerque, New Mexico; (68) Petty Officer Second Class Joseph D. ville, Ohio; (24) Private First Class Daniel J. Agami, Alomar, Brooklyn, New York; (113) Sergeant Travis M. Arndt, Bozeman, Coconut Creek, Florida; (69) Lance Corporal Joshua C. Alonzo, Montana; (25) Corporal Andres Aguilar, Jr., Victoria, Dumas, Texas; (114) Staff Sergeant Jason R. Arnette, Texas; (70) Sergeant Conrad Alvarez, Big Spring, Amelia, Virginia; (26) Lance Corporal Anthony Aguirre, Texas; (115) Chief Warrant Officer (CW2) Andrew Channelview, Texas; (71) Corporal Nicanor Alvarez, San Todd Arnold, Spring, Texas; (27) Specialist Nathaniel A. Aguirre, Bernardino, California; (116) Staff Sergeant Daniel L. Arnold, Carrollton, Texas; (72) Corporal Daniel R. Amaya, Odessa, Montrose, Pennsylvania; (28) Major James M. Ahearn, Concord, Cali- Texas; (117) Private First Class James L. Arnold, fornia; (73) Specialist Jason E. Ames, Cerulean, Mattawan, Michigan; (29) Sergeant Clinton W. Ahlquist, Creede, Kentucky; (118) Sergeant Larry R. Arnold, Sr., (74) Private First Class John D. Amos II, Colorado; Carriere, Mississippi; Valparaiso, Indiana; (30) Lance Corporal Jeramy A. Ailes, (119) Lance Corporal Alexander S. (75) Corporal Andy D. Anderson, Falls Gilroy, California; Arredondo, Randolph, Massachusetts; Church, Virginia; (31) Captain Tristan Neil Aitken, State (120) Corporal Carlos Arrelano Pandura, (76) Lance Corporal Brian Edward Ander- College, Pennsylvania; Los Angeles/Rosemead, California; son, Durham, North Carolina; (32) Sergeant Spencer C. Akers, Traverse (121) Specialist Richard Arriaga, Ganado, (77) Hospitalman Christopher A. Anderson, City, Michigan; Texas; Longmont, Colorado; (33) Sergeant James C. Akin, Albuquerque, (122) Staff Sergeant Jimmy J. Arroyave, (78) Private First Class Danny L. Anderson, New Mexico; Woodland, California; Corpus Christi, Texas; (34) Specialist Segun Frederick Akintade, (79) Sergeant Ian C. Anderson, Prairie Vil- (123) Specialist Robert R. Arsiaga, Green- Brooklyn, New York; lage, Kansas; wood, Texas; (35) Captain Paul C. Alaniz, Corpus Christi, (80) Petty Officer Second Class Michael C. (124) Corporal Nicholas A. Arvanitis, Texas; Anderson, Daytona, Florida; Salem, New Hampshire; (36) Staff Sergeant Ivan Vargas Alarcon, (81) Corporal Michael D. Anderson, Mo- (125) Sergeant Brandon S. Asbury, Taze- Jerome, Idaho; desto, California; well, Virginia; (37) Sergeant First Class Jesse B. Albrecht, (82) Corporal Nathan R. Anderson, Howard, (126) Corporal Evan Asa Ashcraft, West Hager City, Wisconsin; Ohio; Hills, California; (38) Corporal Juan M. Alcantara, New (83) Lance Corporal Nicholas H. Anderson, (127) Corporal Benjamin J. Ashley, Inde- York; Las Vegas, Nevada; pendence, Missouri; (39) Private Christopher M. Alcozer, Villa (84) Major Stuart M. Anderson, Peosta, (128) Lance Corporal Trevor D. Aston, Aus- Park/DeKalb, Illinois; Iowa; tin, Texas; (40) Seaman Zachary M. Alday, (85) Private First Class Travis W. Ander- (129) Sergeant Julia V. Atkins, Bossier Donalsonville, Georgia; son, Hooper, Colorado; City, Louisiana; (41) Lance Corporal Nickalous N. Aldrich, (86) Sergeant First Class Victor A. Ander- (130) Private First Class Shawn M. Atkins, Austin, Texas; son, Ellaville, Georgia; Parker, Colorado; (42) Navy Hospitalman Geovani Padilla (87) Sergeant Phillip R. Anderson, Everett, (131) Staff Sergeant Travis W. Atkins, Aleman, South Gate, California; Washington; Bozeman, Montana; (43) Staff Sergeant Eugene Alex, Bay City, (88) Specialist Joshua R. Anderson, Jordan, (132) Major Jay Thomas Aubin, Waterville, Michigan; Minnesota; Maine; (44) Corporal Matthew L. Alexander, Gret- (89) Lance Corporal Norman W. Anderson (133) Master Sergeant Steven E. Auchman, na, Nebraska; III, Parkton, Maryland; Waterloo, New York; (45) Staff Sergeant George T. Alexander, (90) Airman First Class Carl L. Anderson, (134) Captain Matthew J. August, North Jr., Killeen, Texas; Jr., Georgetown, South Carolina; Kingstown, Rhode Island; (46) Specialist Alexandre A. Alexeev, (91) Private First Class Edwin Anthony (135) Sergeant Corey J. Aultz, Port Or- Wilimington, California; Andino, Jr., Culpeper, Virginia; chard, Washington; (47) Second Lieutenant Tracy Lynn Alger, (92) Specialist Michael Andrade, Bristol, (136) Lance Corporal Aaron C. Austin, New Auburn, Wisconsin; Rhode Island; Sunray, Texas; (48) Private First Class Wilson A. Algrim, (93) Master Sergeant Joseph J. Andres, Jr., (137) Private First Class Shane R. Austin, Howell, Michigan; Seven Hills, Ohio; Edgerton, Kansas; (49) Specialist Azhar Ali, Flushing, New (94) Specialist Harley D. Andrews, Weimar, (138) First Lieutenant Garrison C. Avery, York; California; Lincoln, Nebraska; (50) Corporal Jeremy D. Allbaugh, Luther, (95) Specialist Yoe M. Aneiros, Newark, (139) Private First Class Jeffrey A. Avery, Oklahoma; New Jersey; Colorado Springs, Colorado; (51) Private First Class Jacob H. Allcott, (96) Lance Corporal Levi T. Angell, Clo- (140) Lance Corporal Andrew Julian Aviles, Caldwell, Idaho; quet, Minnesota; Tampa, Florida;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00085 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.090 S03APPT1 ccoleman on PRODPC75 with SENATE S2452 CONGRESSIONAL RECORD — SENATE April 3, 2008 (141) Specialist Luis G. Ayala, South Gate, (185) Specialist Thomas J. Barbieri, Gai- (229) Staff Sergeant Michael A. Bechert, California; thersburg, Maryland; New Castle, Indiana; (142) Staff Sergeant Alejandro Ayala, Riv- (186) Corporal Felipe C. Barbosa, High (230) Private First Class Gunnar D. Becker, erside, California; Point, North Carolina; Forestburg, South Dakota; (143) Private First Class Eric A. Ayon, (187) Private First Class Mark A. Barbret, (231) Staff Sergeant Shane R. Becker, Hel- Arleta, California; Shelby Township, Michigan; ena, Montana; (144) Sergeant Robert T. Ayres III, Los An- (188) Private First Class Collier Edwin (232) Specialist James L. Beckstrand, Es- geles, California; Barcus, McHenry, Illinois; condido, California; (145) Private First Class Lionel Ayro, (189) Sergeant Michael C. Barkey, Canal (233) Private First Class Andrew D. Bedard, Jeanerette, Louisiana; Fulton, Ohio; Missoula, Montana; (146) Sergeant Brock A. Babb, Evansville, (190) Staff Sergeant Patrick O. Barlow, (234) Lance Corporal Brent E. Beeler, Jack- Indiana; Greensboro, North Carolina; son, Michigan; (147) Specialist Travis A. Babbitt, Uvalde, (191) Specialist Jonathan P. Barnes, Ander- (235) Staff Sergeant Brock A. Beery, White Texas; son, Missouri; House, Tennessee; (148) Petty Officer First Class Howard E. (192) Lance Corporal Matthew Ron Barnes, (236) Corporal Joseph O. Behnke, Brooklyn, Babcock IV, Houston, Texas; West Monroe, Louisiana; New York; (149) Sergeant Christopher J. Babin, (193) Sergeant Nathan S. Barnes, American (237) Specialist David W. Behrle, Tipton, Houma, Louisiana; Fork, Utah; Iowa; (150) Specialist David J. Babineau, Spring- (194) Airman First Class Eric M. Barnes, (238) Lance Corporal Jacob Walter Beisel, field, Massachusetts; Lorain, Ohio; Lackawaxen, Pennsylvania; (151) First Lieutenant Andrew J. Bacevich, (195) First Lieutenant Christopher W. (239) Sergeant Gregory A. Belanger, Narra- Walpole, Massachusetts; Barnett, Baton Rouge, Louisiana; gansett, Rhode Island; (152) Corporal Salem Bachar, Chula Vista, (196) Sergeant Jeremy D. Barnett, Mineral (240) Corporal Christopher Belchik, Jersey, California; City, Ohio; Illinois; (153) Sergeant First Class Travis S. (197) Command Sergeant Major Edward C. (241) Sergeant Aubrey D. Bell, Tuskegee, Bachman, Garden City, Kansas; Barnhill, Shreveport, Louisiana; Alabama; (154) Sergeant First Class Henry A. Bacon, (198) First Sergeant Michael S. Barnhill, (242) Specialist Rusty W. Bell, Pocahontas, Wagram, North Carolina; Folsom, California; Arkansas; (155) Sergeant Andrew Joseph Baddick, (199) Corporal Jeremiah A. Baro, Fresno, (243) Specialist Ryan M. Bell, Colville, Jim Thorpe, Pennsylvania; California; Washington; (156) Staff Sergeant Daniel A. Bader, Colo- (200) Sergeant Lester Domenico Baroncini, (244) Specialist Rickey L. Bell, rado Springs, Colorado; Jr., Bakersfield, California; Caruthersville, Missouri; (157) Petty Officer Second Class Cesar O. (201) Lance Corporal Aric J. Barr, Alle- (245) Lance Corporal Timothy Michael Baez, Pomona, California; gheny, Pennsylvania; Bell, Jr., West Chester, Ohio; (158) Private First Class Roberto C. Baez, (202) Staff Sergeant Ricardo Barraza, (246) Private First Class Wilfred Tampa, Florida; Shafter, California; Davyrussell Bellard, Lake Charles, Lou- (159) Corporal Miguel A. Baez, Bonaire, (203) Sergeant Michael Paul Barrera, Von isiana; Georgia; Ormy, Texas; (247) Staff Sergeant Joseph P. Bellavia, (160) Staff Sergeant Nathan J. Bailey, (204) Staff Sergeant Chad A. Barrett, Wakefield, Massachusetts; Nashville, Tennessee; Saltville, Virginia; (248) Specialist Katrina Lani Bell-Johnson, (161) Specialist William Lee Bailey III, (205) Specialist Bryan Edward Barron, Bi- Orangeburg, South Carolina; Bellevue, Nebraska; loxi, Mississippi; (249) Captain Donnie R. Belser, Jr., Annis- (162) Private First Class Joe L. Baines, (206) Corporal John Barta, Corpus Christi, ton, Alabama; (250) Staff Sergeant Jason A. Benford, To- Newark, New Jersey; Texas; (163) Specialist Brian K. Baker, West Sen- (207) Specialist Daniel D. Bartels, Huron, ledo, Ohio; (251) Private First Class Stephen C. Benish, eca, New York; South Dakota; Clark, New Jersey; (164) Corporal Riley E. Baker, Pacific, Mis- (208) Private First Class Benjamin B. Bart- (252) Specialist Durrell L. Bennett, souri; lett, Jr., Manchester, Georgia; Spanaway, Washington; (165) Sergeant Ronald W. Baker, Cabot, Ar- (209) Sergeant Douglas E. Bascom, Colo- (253) Staff Sergeant Keith A. Bennett, kansas; rado Springs, Colorado; Holtwood, Pennsylvania; (166) Specialist Ryan T. Baker, Brown (210) Staff Sergeant Robert J. Basham, Ke- (254) Corporal Richard A. Bennett, Girard, Mills, New Jersey; nosha, Wisconsin; Kansas; (167) Sergeant Sherwood R. Baker, Plym- (211) Staff Sergeant Aram J. Bass, Niagara (255) Sergeant First Class William M. Ben- outh, Pennsylvania; Falls, New York; nett, Seymour, Tennessee; (168) Corporal Zachary D. Baker, Arkansas, (212) Corporal David A. Bass, Nashville, (256) Sergeant Darry Benson, Winterville, Vilonia; Tennessee; North Carolina; (169) Specialist Dane R. Balcon, Colorado (213) Sergeant Todd M. Bates, Bellaire, (257) Corporal Johnathan Benson, North Springs, Colorado; Ohio; Branch, Minnesota; (170) Chief Petty Officer Joel Egan Bald- (214) Sergeant First Class Michael Battles, (258) Sergeant First Class Michael A. Ben- win, Arlington, Virginia; Sr., San Antonio, Texas; son, Winona, Minnesota; (171) Private First Class Stephen P. (215) Corporal Phillip E. Baucus, Wolf (259) Specialist Robert T. Benson, Spokane, Baldwyn, Saltillo, Mississippi; Creek, Montana; Washington; (172) Private First Class Chad Eric Bales, (216) Corporal Nathaniel S. Baughman, (260) Corporal Anthony K. Bento, San Coahoma, Texas; Monticello, Indiana; Diego, California; (173) Private First Class Paul Balint, Jr., (217) Gunnery Sergeant Ronald E. Baum, (261) Private First Class David J. Bentz III, Willow Park, Texas; Hollidaysburg, Pennsylvania; Newfield, New Jersey; (174) Gunnery Sergeant Terry W. Ball, Jr., (218) Sergeant Ryan J. Baum, Aurora, Col- (262) Private First Class Ryan R. Berg, East Peoria, Illinois; orado; Sabine Pass, Texas; (175) First Lieutenant Kenneth Michael (219) Private First Class Matthew E. (263) Sergeant Bradley J. Bergeron, Ballard, Mountain View, California; Baylis, Oakdale, New York; Houma, Louisiana; (176) Technical Sergeant Ryan A. Balmer, (220) Staff Sergeant Steven G. Bayow, (264) Private First Class Joseph R. Berlin, Mishawaka, Indiana; Colonia Yap Federated States of Micronesia; Jr., Chelsea, Alabama; (177) Private Michael A. Baloga, Everett, (221) Corporal Jason J. Beadles, La Porte, (265) Lance Corporal Eric J. Bernholtz, Washington; Indiana; Grove City, Ohio; (178) Private First Class Michael Balsley, (222) Private First Class Matthew A. Bean, (266) First Lieutenant David R. Bernstein, Hayward, California; Pembroke, Massachusetts; Phoenixville, Pennsylvania; (179) First Lieutenant Debra A. Banaszak, (223) Sergeant Alan N. Bean, Jr., Bridport, (267) Staff Sergeant David R. Berry, Wich- Bloomington, Illinois; Vermont; ita, Kansas; (180) Corporal Scott M. Bandhold, North (224) Specialist Bradley S. Beard, Chapel (268) Sergeant Sean B. Berry, Mansfield, Merrick, New York; Hill, North Carolina; Texas; (181) Staff Sergeant Metodio A. Bandonill, (225) Sergeant William J. Beardsley, Coon (269) Specialist Joel L. Bertoldie, Independ- Honolulu, Hawaii; Rapids, Minnesota; ence, Missouri; (182) Specialist Solomon C. ‘‘Kelly’’ (226) Corporal Jonathan S. Beatty, (270) Staff Sergeant Stephen A. Bertolino, Bangayan, Jay, Vermont; Streator, Illinois; Orange, California; (183) Sergeant Derek R. Banks, Newport (227) Specialist Beau R. Beaulieu, Lisbon, (271) Staff Sergeant Marvin Best, Prosser, News, Virginia; Maine; Washington; (184) Lieutenant Colonel Dominic Rocco (228) Captain Ryan Anthony Beaupre, (272) Sergeant Bradley H. Beste, Baragona, Niles, Ohio; Bloomington, Illinois; Naperville, Illinois;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00086 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.090 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2453 (273) Corporal Ray M. Bevel, Andrews, (318) First Lieutenant Shaun M. Blue, (362) Staff Sergeant Elvis Bourdon, Texas; Munster, Indiana; Youngstown, Ohio; (274) Sergeant Allan R. Bevington, Beaver (319) Sergeant Aron C. Blum, Tucson, Ari- (363) Private Michael E. Bouthot, Fall Falls, Pennsylvania; zona; River, Massachusetts; (275) Petty Officer Second Class Kevin R. (320) Sergeant Trevor A. Blumberg, Can- (364) Lance Corporal Jeremy D. Bow, Bewley, Hector, Arkansas; ton, Michigan; Lemoore, California; (276) Private First Class Paul A. Beyer, (321) Gunnery Sergeant Darrell W. Boat- (365) Private First Class Matthew C. Bowe, Jamestown, North Dakota; man, Fayetteville, North Carolina; Coraopolis, Pennsylvania; (277) Corporal Mark Anthony Bibby, (322) Sergeant Michael L. Boatright, (366) Private First Class Samuel R. Bowen, Watha, North Carolina; Whitesboro, Texas; Cleveland, Ohio; (278) Private First Class Stephen Bicknell, (323) Private First Class Brandon K. Bobb, (367) Corporal Jonathan W. Bowling, Pat- Prattville, Alabama; Orlando, Florida; rick, Virginia; (279) Corporal Joseph P. Bier, Centralia, (324) First Lieutenant Amos C.R. Bock, (368) Corporal Theodore A. Bowling, Washington; New Madrid, Missouri; Casselberry, Florida; (280) Staff Sergeant Mario J. Bievre, Con- (325) Sergeant Jeremiah J. Boehmer, (369) Specialist William G. Bowling, stantinople, Illinois; Parkston, South Dakota; Beattyville, Kentucky; (281) Specialist Ethan J. Biggers, (326) Corporal Henry W. Bogrette, (370) Lance Corporal Jon Eric Bowman, Beavercreek, Ohio; Richville, New York; Dubach, Louisiana; (282) Specialist Charles E. Bilbery, Jr., (327) Private First Class Jeremy S. (371) Sergeant Larry R. Bowman, Granite Owego, New York; Bohannon, Bon Aqua, Tennessee; Falls, North Carolina; (283) Chief Petty Officer Gregory J. (328) Sergeant Matthew Charles Bohling, (372) Staff Sergeant Hesley Box, Jr., Nash- Billiter, Villa Hills, Kentucky; Eagle River, Alaska; ville, Arkansas; (284) Lance Corporal Dustin V. Birch, Saint (329) Lance Corporal Jeremy L. Bohlman, (373) Sergeant Timothy R. Boyce, North Anthony, Idaho; Sioux Falls, South Dakota; Salt Lake, Utah; (285) Staff Sergeant Alicia A. Birchett, (330) Gunnery Sergeant Jeffrey Edward (374) Specialist Joshua M. Boyd, Seattle, Mashpee, Massachusetts; Bohr, Jr., Ossian Iowa; Washington; (286) Sergeant Tracy R. Birkman, New Cas- (331) Private First Class Kyle G. Bohrnsen, (375) Private Noah L. Boye, Grand Island, tle, Virginia; Philipsburg, Montana; Nebraska; (287) Sergeant First Class Jason Lee (332) Specialist Matthew T. Bolar, Mont- (376) Lance Corporal Aaron Boyles, Ala- Bishop, Williamstown, Kentucky; gomery, Alabama; meda, California; (288) Lance Corporal Jeffery A. Bishop, (333) Lance Corporal Todd J. Bolding, (377) Specialist Edward W. Brabazon, Phila- Dickson, Tennessee; Manvel, Texas; delphia, Pennsylvania; (289) Specialist Ryan A. Bishop, Euless, (334) Sergeant Dennis J. Boles, Homosassa, (378) Corporal Travis J. Bradachnall, Mult- Texas; Florida; nomah County, Oregon; (290) Sergeant Benjamin W. Biskie, Tucson, (335) Sergeant First Class Craig A. Boling, (379) Specialist Hoby F. Bradfield, Jr., The Arizona; Elkhart, Indiana; Woodlands, Texas; (291) Specialist Jeffrey D. Bisson, Vista, (336) Petty Officer Third Class Doyle W. (380) Staff Sergeant Kenneth R. Bradley, California; Bollinger, Jr., Poteau, Oklahoma; Utica, Mississippi; (292) Corporal Albert Bitton, Chicago, Illi- (337) Sergeant First Class Kelly Bolor, (381) Staff Sergeant Juantera T. Bradley, nois; Whittier, California; Greenville, North Carolina; (293) Sergeant Michael Edward Bitz, Ven- (338) Staff Sergeant Jerry L. Bonifacio, Jr., (382) Corporal Anthony M. Bradshaw, El tura, California; Vacaville, California; Paso, Texas; (294) Private Evan A. Bixler, Racine, Wis- (339) Captain Orlando A. Bonilla, Killeen, (383) Sergeant Emerson N. Brand, Rigby, consin; Texas; Idaho; (295) Corporal Stephen R. Bixler, Suffield, (340) Sergeant Jon E. Bonnell, Jr., Fort (384) Staff Sergeant Stacey C. Brandon, Connecticut; Dodge, Iowa; Hazen, Arkansas; (296) Sergeant Jarrod W. Black, Peru, Indi- (341) Staff Sergeant Daryl D. Booker, (385) Private First Class David J. ana; Midlothian, Virginia; Brangman, Lake Worth, Florida; (297) Specialist Justin R. Blackwell, Paris, (342) Staff Sergeant Stevon Alexander (386) Lance Corporal David M. Branning, Tennessee; Booker, Apollo, Pennsylvania; Cockeysville, Maryland; (298) Corporal Jonathan F. Blair, Fort (343) Sergeant Kenneth R. Booker, Vevay, (387) Specialist Artimus D. Brassfield, Wayne, Indiana; Indiana; Flint, Michigan; (299) Specialist Robert E. Blair, Ocala, (344) Chief Warrant Officer Clarence E. (388) Civilian Darren D. Braswell, River- Florida; (300) Lance Corporal Thomas Alan Blair, Boone, Fort Worth, Texas; dale, Georgia; Wagoner, Oklahoma; (345) Specialist Christopher K. Boone, Au- (389) Private First Class Joel K. Brattain, (301) Chief Warrant Officer (CW2) Michael gusta, Georgia; Yorba Linda/Brea, California; T. Blaise, Tennessee; (346) Second Lieutenant Joshua L. Booth, (390) Private First Class Jeffrey F. Braun, (302) Staff Sergeant Richard A. Blakley, Fiskdale, Massachusetts; Stafford, Connecticut; Avon, Indiana; (347) Private First Class John G. Borbonus, (391) Lance Corporal Raul S. Bravo, Jr., (303) Captain Ernesto M. Blanco, Texas; Boise, Idaho; Elko, Nevada; (304) Corporal Joseph A. Blanco, Bloom- (348) First Sergeant Michael J. Bordelon, (392) Specialist Joshua T. Brazee, Sand ington, California; Morgan City, Louisiana; Creek, Michigan; (305) Staff Sergeant Brian D. Bland, New- (349) Sergeant First Class Russell P. Borea, (393) Sergeant Dale G. Brehm, Turlock, castle/Weston, Wyoming; El Paso, Texas; California; (306) Private First Class Christopher T. (350) Captain John J. Boria, Broken Arrow, (394) Chief Warrant Officer William I. Bren- Blaney, Winter Park, Florida; Oklahoma; nan, Bethlehem, Connecticut; (307) Command Sergeant James D. (351) Specialist Val John Borm, Sidney, Ne- (395) Sergeant First Class Christopher R. Blankenbecler, Alexandria, Virginia; braska; Brevard, Phoenix, Arizona; (308) Lance Corporal Jeffery S. Blanton, (352) Corporal Jeffrey A. Boskovitch, Seven (396) Specialist Adam Noel Brewer, Dewey/ Fayetteville, Georgia; Hills, Ohio; Bartlesville, Oklahoma; (309) Staff Sergeant Melvin L. Blazer, (353) Corporal Kirk J. Bosselmann, Napa, (397) Corporal James L. Bridges, Buhl, Moore, Oklahoma; California; Idaho; (310) Second Lieutenant James P. ‘‘JP’’ (354) Sergeant Andrew L. Bossert, Foun- (398) Private Michael P. Bridges, Placentia, Blecksmith, San Marino, California; tain City, Wisconsin; California; (311) Specialist Joseph M. Blickenstaff, (355) Sergeant Kenneth E. Bostic, Haw- (399) Staff Sergeant Steven H. Bridges, Corvallis, Oregon; thorne, Nevada; Tracy, California; (312) Specialist Kamisha J. Block, Vidor, (356) Private First Class Rachel K. Bosveld, (400) Private First Class Dean Bright, Texas; Waupun, Wisconsin; Roseburg, Oregon; (313) Private First Class Nicholas H. (357) Corporal Samuel M. Boswell, (401) Staff Sergeant Scottie L. Bright, Blodgett, Wyoming, Michigan; Elkridge, Maryland; Montgomery, Alabama; (314) Corporal Clinton C. Blodgett, Pekin, (358) Private First Class Brian A. Botello, (402) Specialist Kyle A. Brinlee, Pryor, Indiana; Alta, Iowa; Oklahoma; (315) Lance Corporal Nicholas William B. (359) Sergeant Nathan K. Bouchard, (403) Seaman Pablito Pena Briones, Jr., Bloem, Belgrade, Montana; Wildomar, California; Anaheim, California; (316) Private First Class Alan R. Blohm, (360) Corporal Jeremy P. Bouffard, Middle- (404) Corporal Dustin R. Brisky, Round Kenai, Alaska; field, Massachusetts; Rock, Texas; (317) Major Gerald M. Bloomfield II, Ypsi- (361) Specialist Matthew George Boule, (405) First Lieutenant Benjamin T. Britt, lanti, Michigan; Dracut, Massachusetts; Wheeler, Texas;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00087 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.090 S03APPT1 ccoleman on PRODPC75 with SENATE S2454 CONGRESSIONAL RECORD — SENATE April 3, 2008 (406) Staff Sergeant Sandy R. Britt, (451) Lance Corporal Cedric E. Bruns, Van- (495) Private Matthew D. Bush, East Alton, Apopka, Florida; couver, Washington; Illinois; (407) Captain Sean Lee Brock, Redondo (452) Specialist Jacques Earl ‘‘Gus’’ (496) Private First Class Charles E. Bush, Beach, California; Brunson, Americus, Georgia; Jr., Buffalo, New York; (408) Corporal Phillip J. Brodnick, New (453) Lance Corporal Benjamin S. Bryan, (497) Private First Class Damian S. Lennox, Illinois; Lumberton, North Carolina; Bushart, Waterford, Michigan; (409) Lance Corporal Adam R. Brooks, (454) Second Lieutenant Todd J. Bryant, (498) Sergeant William W. Bushnell, Jas- Manchester, New Hampshire; Riverside, California; per, Arkansas; (410) Staff Sergeant Cory W. Brooks, Phil- (455) Sergeant Jack Bryant, Jr., Dale City, (499) Specialist Marlon A. Bustamante, Co- ip, South Dakota; Virginia; rona, New York; (411) Staff Sergeant William J. Brooks, (456) Lance Corporal Daniel Scott R. Bubb, (500) Staff Sergeant Steve Butcher, Birmingham, Alabama; Grottoes, Virginia; Penfield, New York; (412) Specialist Edward L. Brooks, Dayton, (457) Sergeant John T. Bubeck, (501) Staff Sergeant Jason M. Butkus, West Ohio; Collegeville, Pennsylvania; Milford, New Jersey; (413) Major Sid W. Brookshire, Missouri; (458) Sergeant First Class Raymond R. (502) Specialist Adrian J. Butler, East Lan- (414) Sergeant Thomas F. Broomhead, Can- Buchan, Johnstown, Pennsylvania; sing, Michigan; non City, Colorado; (459) Sergeant Ernest G. Bucklew, Enon (503) Sergeant Jacob Lee Butler, Wellsville, (415) Sergeant Andrew W. Brown, Pleasant Valley, Pennsylvania; Kansas; Mount, Pennsylvania; (460) Specialist Roy Russell Buckley, Snow (504) Lance Corporal Kenneth J. Butler, (416) Technical Sergeant Bruce E. Brown, Camp, North Carolina; Rowan, North Carolina; Coatopa, Alabama; (461) Corporal Ryan J. Buckley, Nokomis, (505) Private First Class Tyler Butler, East (417) Lance Corporal Demarkus D. Brown, Illinois; Liverpool, Ohio; Martinsville, Virginia; (462) Specialist Brock L. Bucklin, Cal- (506) Corporal Rhett A. Butler, Fort Worth, (418) Lance Corporal Dominic C. Brown, edonia, Michigan; Texas; Austin, Texas; (463) Private First Class Paul J. Bueche, (507) Lance Corporal Anthony E. (419) Private First Class Donald S. Brown, Daphne, Alabama; Butterfield, Clovis, California; Succasunna, New Jersey; (464) Lieutenant Colonel Charles H. (508) Sergeant Jason J. Buzzard, Ukiah, (420) Staff Sergeant Harrison Brown, Buehring, Fayetteville, North Carolina; California; Prichard, Alabama; (421) Corporal Henry Levon Brown, Natch- (465) Lance Corporal Richard A. (509) Sergeant Casey Byers, Schleswig, ez, Mississippi; Buerstetta, Franklin, Tennessee; Iowa; (422) Lance Corporal James Brown, (466) Lance Corporal Brian Rory Buesing, (510) Captain Joshua T. Byers, Mountville, Owensville, Indiana; Cedar Key, Florida; South Carolina; (423) Sergeant Jeffery S. Brown, Trinity (467) Private First Class Travis Wayne (511) Specialist William J. Byler, Ballinger, Center, California; Buford, Galveston, Texas; Texas; (424) Staff Sergeant Jeremy A. Brown, (468) Sergeant George Edward Buggs, Barn- (512) Specialist Thomas H. Byrd, Cochise, Mabscott, West Virginia; well, South Carolina; Arizona; (425) Private First Class John Eli Brown, (469) Corporal Jimmy D. Buie, Floral, Ar- (513) Lance Corporal John T. Byrd II, Fair- Troy, Alabama; kansas; view, West Virginia; (426) Sergeant First Class John G. Brown, (470) Specialist Joshua I. Bunch, Hatties- (514) Private First Class Henry G. Byrd III, Little Rock, Arkansas; burg, Mississippi; Veguita, New Mexico; (427) Lance Corporal Kyle W. Brown, New- (471) Staff Sergeant Christopher Bunda, (515) Lance Corporal Shayne M. Cabino, port News, Virginia; Bremerton, Washington; Canton, Massachusetts; (428) Specialist Larry Kenyatta Brown, (472) Staff Sergeant Michael Lee Burbank, (516) Corporal Juan C. Cabralbanuelos, Em- Jackson, Mississippi; Bremerton, Washington; poria, Kansas; (429) Private First Class Nathan P. Brown, (473) Staff Sergeant Richard A. Burdick, (517) Specialist Jonathan D. Cadavero, Ta- South Glens Falls, New York; National City, California; koma Park, Maryland; (430) Specialist Nicholas P. Brown, Huber (474) Staff Sergeant Jerry C. Burge, (518) Staff Sergeant Marshall H. Caddy, Heights, Ohio; Carriere, Mississippi; Nags Head, North Carolina; (431) Private First Class Oliver J. Brown, (475) Corporal Dale A. Burger, Jr., Port De- (519) Specialist Frank L. Cady III, Sac- Carbondale, Pennsylvania; posit, Maryland; ramento, California; (432) Specialist Philip D. Brown, James- (476) Specialist Alan J. Burgess, Landaff, (520) Private First Class Daniel P. Cagle, town, North Dakota; New Hampshire; Carson, California; (433) Specialist Timothy D. Brown, Cedar (477) Sergeant Bryan Burgess, Garden City, (521) Specialist Mark R.C. Caguioa, Stock- Springs, Michigan; Michigan; ton California; (434) Lance Corporal Timothy W. Brown, (478) Lance Corporal Jeffrey C. Burgess, (522) Captain Joel E. Cahill, Norwood, Mas- Sacramento, California; Plymouth, Massachusetts; sachusetts; (435) First Lieutenant Tyler Hall Brown, (479) Lance Corporal Ryan J. Burgess, San- (523) Corporal Marcus A. Cain, Crowley, Atlanta, Georgia; ford, Michigan; Louisiana; (436) Specialist Lerando J. Brown, Gulf- (480) Specialist Taylor J. Burk, Amarillo, (524) Private First Class Jay S. Cajimat, port, Mississippi; Texas; Lahaina, Hawaii; (437) Petty Officer Second Class Menelek (481) Specialist Armer N. Burkart, Rock- (525) Private Lewis T. D. Calapini, M. Brown, Roswell, New Mexico; ville, Maryland; Waipahu, Hawaii; (438) Specialist Michael D. Brown, Wil- (482) Specialist Timothy Burke, Hollywood, (526) Private First Class Cody S. Calavan, liamsburg, Kansas; Florida; Lake Stevens, Washington; (439) Staff Sergeant Kevin R. Brown, (483) Private First Class Tamario (527) Sergeant Pablo A. Calderon, Brook- Harrah, Oklahoma; Demetrice Burkett, Buffalo, New York; lyn, New York; (440) Sergeant William E. Brown, Phil (484) Specialist Donald A. Burkett, Coman- (528) Sergeant Juan Calderon, Jr., Weslaco, Campbell, Alaska; (441) Private First Class Joshua D. Brown, che, Texas; Texas; (485) Sergeant Travis L. Burkhardt, Edina, (529) Private First Class Roland E. Tampa, Florida; (442) Sergeant First Class Scott J. Brown, Missouri; Calderon-Ascencio, Miami, Florida; Windsor, Colorado; (486) Second Lieutenant Peter H. Burks, (530) Sergeant Charles Todd Caldwell, (443) Specialist Lunsford B. Brown II, Dallas, Texas; North Providence, Rhode Island; Creedmore, North Carolina; (487) Lance Corporal Jason K. Burnett, St. (531) Corporal Eric T. Caldwell, Salisbury, (444) Private First Class Timmy R. Brown, Cloud, Florida; Maryland; Jr., Conway, Pennsylvania; (488) Lance Corporal Kyle W. Burns, Lar- (532) Specialist Nathaniel A. Caldwell, (445) Corporal Andrew D. Brownfield, amie, Wyoming; Omaha, Nebraska; Akron, Ohio; (489) Specialist Richard B. Burress, Naples, (533) Specialist Derek A. Calhoun, Okla- (446) Private First Class Brian A. Brown- Florida; homa City, Oklahoma; ing, Astoria, Oregon; (490) Specialist Eric T. Burri, Wyoming, (534) Sergeant First Class Keith A. Cal- (447) Specialist Ari D. Brown-Weeks, Michigan; lahan, McClure, Pennsylvania; Abingdon, Maryland; (491) Private First Class David Paul (535) Corporal Robert Thomas Callahan, (448) Sergeant First Class Daniel A. Burridge Lafayette, Louisiana; Jamestown, North Carolina; Brozovich, Greenville, Pennsylvania; (492) Lance Corporal Jeremy W. Burris, Ta- (536) Sergeant William J. Callahan, South (449) Corporal Travis R. Bruce, Rochester/ coma, Washington; Easton, Massachusetts; Byron, Minnesota; (493) Private Joshua C. Burrows, Bossier (537) Specialist Leeroy A. Camacho, (450) Petty Officer Third Class Nathan B. City, Louisiana; Saipan, Northern Mariana Islands; Bruckenthal, Stony Brook (Long Island), (494) Private First Class Jesse R. Buryj, (538) Seaman Anamarie Sannicolas New York; Canton, Ohio; Camacho, Panama City, Florida;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00088 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.090 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2455 (539) Sergeant Carlos M. Camacho-Rivera, (583) Sergeant David M. Caruso, Naperville, (627) Corporal Kemaphoom ‘‘Ahn’’ Carolina, Puerto Rico; Illinois; Chanawongse, Waterford, Connecticut; (540) Staff Sergeant Joseph Camara, New (584) Specialist Dane O. Carver, Freeport, (628) Specialist James A. Chance III, Koko- Bedford, Massachusetts; Michigan; mo, Mississippi; (541) Corporal Lyle J. Cambridge, (585) Private First Class Cody M. Carver, (629) Staff Sergeant William D. Chaney, Shiprock, New Mexico; Haskell, Oklahoma; Schaumburg, Illinois; (542) Sergeant Radhames Camilomatos, (586) Chief Warrant Officer (CW3) Mitchell (630) Petty Officer First Class Jeffrey L. Carolina, Puerto Rico; K. Carver, Jr., Charlotte, North Carolina; Chaney, Omaha, Nebraska; (543) First Lieutenant Jaime L. Campbell, (587) Sergeant Frank T. Carvill, Carlstadt, (631) Chief Warrant Officer (CW2) Robert Ephrata, Washington; New Jersey; William Channell, Jr., Tuscaloosa, Alabama; (544) Sergeant Jeremy M. Campbell, (588) Private First Class Jose Casanova, El (632) Chief Warrant Officer Cornell C. Chao, Middlebury, Pennsylvania; Monte, California; Orange City, California; (545) Specialist Michael C. Campbell, (589) Staff Sergeant Virgil R. Case, Moun- (633) Master Sergeant Chris S. Chapin, Marshfield, Missouri; tain Home, Idaho; Proctor, Vermont; (546) Sergeant Ryan M. Campbell, (590) Captain Thomas J. Casey, Albu- (634) Specialist Jason K. Chappell, Hemet, Kirksville, Missouri; querque, New Mexico; California; (547) Staff Sergeant Juan F. Campos, (591) Captain Christopher S. Cash, (635) Lance Corporal Holly A. Charette, McAllen, Texas; Winterville, North Carolina; Cranston, Rhode Island; (548) Specialist Marvin A. Camposiles, (592) Sergeant First Class Alwyn C. ‘‘Al’’ (636) Specialist Joe G. Charfauros, Jr., Austell, Georgia; Cashe, Oviedo, Florida; Rota, Mariana Islands; (549) Specialist Isaac Campoy, Douglas, Ar- (593) Sergeant Kenith Casica, Virginia (637) Staff Sergeant Lance M. Chase, Okla- izona; Beach, Virginia; homa City, Oklahoma; (550) Corporal Steven I. Candelo, Houston, (594) Specialist Ahmed Akil ‘‘Mel’’ Cason, (638) Lance Corporal Daniel Chavez, Se- Texas; McGehee, Arkansas; attle, Washington; (551) Lieutenant Colonel David C. (595) Lance Corporal James A. Casper, Coo- (639) Lance Corporal Steven M. Chavez, Canegata, St. Croix, Virgin Islands; lidge, Texas; Hondo, New Mexico; (552) Sergeant Adam Leigh Cann, Davie, (596) Captain Paul J. Cassidy, Laingsburg, (640) Private First Class Javier Chavez, Jr., Florida; Michigan; Cutler, California; (553) Corporal Kelly M. Cannan, Lowville, (597) Private First Class Stephen A. (641) Airman First Class Leebenard E. New York; Castellano, Long Beach, California; Chavis, Hampton, Virginia; (554) Lance Corporal Wesley J. Canning, (598) Lance Corporal Luis J. Castillo, (642) Private First Class Jonathan M. Friendswood, Texas; Lawton, Michigan; Cheatham, Camden, Arkansas; (555) Seaman Jakia Sheree Cannon, Balti- (599) Lance Corporal Mario Alberto (643) Sergeant Yihiyh L. Chen, Saipan, more, Maryland; Castillo, Brownwood, Texas; Northern Mariana Islands; (556) Private First Class Ryan J. Cantafio, (600) Staff Sergeant Samuel Tyrone Castle, (644) Corporal Nicholas O. Cherava, Beaver Dam, Wisconsin; Naples, Texas; Ontonagon, Michigan; (557) Corporal Joseph H. Cantrell IV, Ash- (601) Lance Corporal Roger D. Castleberry, (645) Lance Corporal Marcus M. Cherry, land, Kentucky; Jr., Austin, Texas; Imperial, California; (558) Specialist Ervin Caradine, Jr., Mem- (602) Corporal Stephen W. Castner, (646) Corporal Brian L. Chevalier, Georgia; phis, Tennessee; Cedarburg, Wisconsin; (647) Second Lieutenant Therrel Shane (559) Specialist Adolf C. Carballo, Houston, (603) Sergeant Jesse J.J. Castro, Chalan Childers, Harrison Co., Mississippi; Texas; Pago, Guam; (648) Sergeant Kyle William Childress, (560) Sergeant Alessandro Carbonaro, Be- (604) Corporal Jonathan Castro, Corona, Terre Haute, Indiana; thesda, Maryland; California; (649) Sergeant Tyrone L. Chisholm, Savan- (561) Private First Class Sean T. Cardelli, (605) Staff Sergeant Roland L. Castro, San nah, Georgia; Downers Grove, Illinois; Antonio, Texas; (650) Specialist Johnathan Bryan Chism, (562) Private First Class Edgar E. (606) Specialist Romel Catalan, Los Ange- Gonzales, Louisiana; Cardenas, Lilburn, Georgia; les, California; (651) Private First Class Adam J. Chitjian, (563) Corporal Anthony O. Cardinal, Mus- (607) Sergeant Sean K. Cataudella, Tucson, Philadelphia, Pennsylvania; kegon, Michigan; (652) Private First Class Min-su Choi, River (564) Private First Class Michael M. Carey, Arizona; (608) Lance Corporal Steven C. T. Cates, Vale, New Jersey; Prince George, Virginia; (565) Sergeant Deyson K. Cariaga, Hono- Mount Juliet, Tennessee; (653) Corporal Andrew F. Chris, Huntsville, lulu, Hawaii; (609) Second Lieutenant James J. Cathey, Alabama; (566) Corporal Richard P. Carl, King Hill, Reno, Nevada; (654) Specialist Jeremy E. Christensen, Al- Idaho; (610) Private First Class Thomas D. buquerque, New Mexico; (567) Specialist Ryan G. Carlock, Macomb, Caughman, Lexington, South Carolina; (655) Private First Class Ryan D. Illinois; (611) Specialist Roberto J. Causor, Jr., San Christensen, Spring Lake Heights, New Jer- (568) Specialist Frederick A. Carlson, Beth- Jose, California; sey; lehem, Pennsylvania; (612) Sergeant Forrest D. Cauthorn, (656) Staff Sergeant Thomas W. (569) Sergeant Michael C. Carlson, St. Paul, Midlothian, Virginia; Christensen, Atlantic Mine, Michigan; Minnesota; (613) Staff Sergeant James Wilford Cawley, (657) Lance Corporal Curtis A. Christensen, (570) Private First Class Benjamin R. Car- Roy, Utah; Jr., Collingswood, New Jersey; man, Jefferson, Iowa; (614) Sergeant Jessica L. Cawvey, Normal, (658) Sergeant Brett T. Christian, North (571) Staff Sergeant Edward W. Carman, Illinois; Royalton, Ohio; McKeesport, Pennsylvania; (615) Lance Corporal Geofrey R. Cayer, (659) Sergeant David Christoff, Jr., (572) Sergeant Robert M. Carr, Warren, Fitchburg, Massachusetts; Rossford, Ohio; Ohio; (616) Petty Officer Third Class David A. (660) Sergeant Caleb P. Christopher, Chan- (573) Specialist Jocelyn ‘‘Joce’’ L. Cedergren, South St. Paul, Minnesota; dler, Arizona; Carrasquillo, Wrightsville Beach, North (617) Corporal Willie P. Celestine, Jr., La- (661) Chief Warrant Officer Theodore U. Carolina; fayette, Louisiana; Church, Ohio; (574) Specialist Miguel Carrasquillo, River (618) Lance Corporal Manuel A. Ceniceros, (662) Lance Corporal Michael J. Cifuentes, Grove, Illinois; Santa Ana, California; Fairfield, Ohio; (575) Private First Class Casey S. Carriker, (619) Corporal Bernard L. Ceo, Baltimore, (663) Staff Sergeant Ernesto G. Cimarrusti, Hoquiam, Washington; Maryland; Douglas, Arizona; (576) Sergeant Alejandro Carrillo, Los An- (620) Sergeant Aaron N. Cepeda, Sr., San (664) Staff Sergeant Kristofer R. Ciraso, geles, California; Antonio, Texas; Bangor, Maine; (577) Specialist Rafael A. ‘‘T. J.’’ Carrillo, (621) First Lieutenant Michael A. Cerrone, (665) Lance Corporal Julio C. Cisneros-Al- Jr., Boys Ranch, Texas; Clarksville, Tennessee; varez, Pharr, Texas; (578) Sergeant James D. Carroll, McKenzie, (622) Private First Class Daniel B. Chaires, (666) Corporal Jason S. Clairday, Camp Tennessee; Tallahassee, Florida; Fulton, Arkansas; (579) Sergeant John A. Carroll, Ponca City, (623) Lance Corporal William C. Chambers, (667) Staff Sergeant Lillian Clamens, Oklahoma; Ringgold, Georgia; Lawton, Oklahoma; (580) Specialist Justin B. Carter, Mansfield, (624) Lance Corporal Donald E. Champlin, (668) Specialist Arron R. Clark, Chico, Cali- Missouri; Natchitoches, Louisiana; fornia; (581) Sergeant Lawrance J. Carter, Rancho (625) Lance Corporal James Chamroeun, (669) Sergeant Carlton A. Clark, South Cucamonga, California; Union City, Georgia; Royalton, Vermont; (582) Chief Petty Officer Mark T. Carter, (626) Specialist Doron Chan, Highland, New (670) Private First Class Eric D. Clark, Fallbrook, California; York; Pleasant Prairie, Wisconsin;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00089 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.090 S03APPT1 ccoleman on PRODPC75 with SENATE S2456 CONGRESSIONAL RECORD — SENATE April 3, 2008 (671) Lance Corporal Matthew W. Clark, St. (715) Specialist Zeferino E. Colunga, (759) Chief Warrant Officer Alexander S. Louis, Missouri; Bellville, Texas; Coulter, Bristol, Tennessee; (672) Staff Sergeant Michael J. Clark, Lees- (716) Sergeant Robert E. Colvill, Jr., An- (760) Private First Class Daniel Courneya, burg Lake, Florida; derson, Indiana; Vermontville, Michigan; (673) Petty Officer First Class Regina R. (717) Sergeant First Class Kurt J. (761) Private First Class Nicholas Clark, Centralia, Washington; Comeaux, Raceland, Louisiana; Cournoyer, Gilmanton, New Hampshire; (674) Corporal Ryan J. Clark, Lancaster, (718) Specialist Anthony S. Cometa, Las (762) Sergeant Kelley L. Courtney, Macon, California; Vegas, Nevada; Georgia; (675) Lance Corporal Lance M. Clark, (719) Lance Corporal Chase Johnson (763) Second Lieutenant Matthew S. Coutu, Cookeville, Tennessee; Comley, Lexington, Kentucky; North Kingstown, Rhode Island; (676) Corporal Kevin Michael Clarke, (720) Lance Corporal Adam C. Conboy, (764) Private First Class Dwane A. Covert, Tinley Park, Illinois; Philadelphia, Pennsylvania; Jr., Tonawanda, New York; (677) Sergeant Don Allen Clary, Troy, Kan- (721) Sergeant Kenneth Conde, Jr., Or- (765) Second Lieutenant Leonard M. Cow- sas; lando, Florida; herd, Jr., Culpeper, Virginia; (678) Staff Sergeant Daniel J. Clay, Pensa- (722) Corporal Matthew D. Conley, Killen, (766) Specialist Gregory A. Cox, cola, Florida; Alabama; Carmichaels, Pennsylvania; (679) Staff Sergeant Darrell P. Clay, Fay- (723) Sergeant First Class James David (767) Private First Class Ryan R. Cox, etteville, North Carolina; Connell, Jr., Lake City, Tennessee; Derby, Kansas; (680) Captain Hayes Clayton, Marietta, (724) Sergeant Major Bradly D. Conner, (768) First Lieutenant Simon T. Cox, Jr., Georgia; Coeur d’Alene, Idaho; Texas; (681) First Lieutenant Michael J. Cleary, (725) Sergeant Brian R. Conner, Baltimore, (769) Sergeant First Class Daniel Crabtree, Dallas, Pennsylvania; Maryland; Canton, Ohio; (682) Master Sergeant Brad A. Clemmons, (726) Sergeant Timothy M. Conneway, En- (770) Staff Sergeant Alexander B. Crackel, Chillicothe, Ohio; terprise, Alabama; Wilstead, England; (683) Private First Class Nathan B. (727) Specialist Steven Daniel Conover, (771) Sergeant James E. Craig, Hollywood, Clemons, Winchester, Tennessee; Wilmington, Ohio; South Carolina; (684) Staff Sergeant Thomas W. Clemons, (728) Hospitalman Matthew G. Conte, (772) Private First Class Brandon M. Craig, Leitchfield, Kentucky; Mogadore, Ohio; Earleville, Maryland; (685) Private First Class Adare W. Cleve- (729) Captain Aaron Joseph Contreras, (773) Private First Class Andre Craig, Jr., land, Anchorage, Alaska; Sherwood, Oregon; New Haven, Connecticut; (686) Specialist Ross A. Clevenger Givens, (730) Sergeant Andres J. Contreras, Hun- (774) Staff Sergeant Casey Crate, Hot Springs, Idaho; tington Park, California; Spanaway, Washington; (687) Lance Corporal Richard C. Clifton, (731) Lance Corporal Pedro Contreras, Har- (775) Second Lieutenant Johnny K. Craver, Milford, Delaware; ris, Texas; McKinney, Texas; (688) Specialist Karen N. Clifton, Lehigh (732) Sergeant Jason Cook, Okanogan, (776) Lance Corporal Timothy R. Creager, Acres, Florida; Washington; Millington, Tennessee; (689) Lance Corporal Donald John Cline, (733) Command Sergeant Major Eric F. (777) Specialist Tyler L. Creamean, Jack- Jr., Sparks, Nevada; Cooke, Scottsdale, Arizona; sonville, Arkansas; (690) Specialist Zachary Clouser, Dover, (734) Sergeant First Class Sean Michael (778) Specialist Matthew W. Creed, Covina, Pennsylvania; Cooley, Ocean Springs, Mississippi; California; (691) Private First Class Christopher R. (735) Private First Class James J. Coon, (779) Corporal Shawn R. Creighton, Wind- Cobb, Bradenton, Florida; Walnut Creek, California; sor, North Carolina; (692) Corporal Benny Gray Cockerham III, (736) Master Sergeant James Curtis Coons, (780) Private First Class Michael Russell Conover, North Carolina; Conroe, Texas; Creighton-Weldon, Palm Bay, Florida; (693) Lance Corporal Kyle W. Codner, Wood (737) Sergeant John E. Cooper, Ewing, Ken- (781) Major Ricardo A. Crocker, Mission River, Nebraska; tucky; Viejo, California; (694) Sergeant Ronald L. Coffelt, Fair (738) Sergeant Travis S. Cooper, Macon, (782) Sergeant Michael T. Crockett, Oaks, California; Mississippi; Soperton, Georgia; (695) First Sergeant Christopher D. Coffin, (739) Private Troy D. Cooper, Amarillo, (783) Staff Sergeant Ricky L. Crockett, Bethlehem, Pennsylvania; Texas; Broxton, Georgia; (696) Corporal Michael R. Cohen, Jacobus, (740) Private Charles S. Cooper, Jr., James- (784) Private First Class David N. Crombie, Pennsylvania; town, New York; Winnemucca, Nevada; (697) Private First Class Gavin J. Colburn, (741) Sergeant First Class David A. Cooper, (785) Sergeant Brud J. Cronkrite, Spring Frankfort, Ohio; Jr., State College, Pennsylvania; Valley, California; (698) Staff Sergeant Timothy B. Cole, Jr., (742) Specialist Jeffrey W. Corban, Elkhart, (786) Corporal Duncan C. Crookston, Den- Missouri City, Texas; Indiana; ver, Colorado; (699) Private Bradli N. Coleman, Ford City, (743) Specialist Jason J. Corbett, Casper, (787) Corporal Kenneth Cross, Superior, Pennsylvania; Wyoming; Wisconsin; (700) Corporal Gary B. Coleman, Pikeville, (744) Staff Sergeant Todd R. Cornell, West (788) Specialist William J. Crouch, Kentucky; Bend, Wisconsin; Zachary, Louisiana; (701) Sergeant Dominic R. Coles, Jesup, (745) Sergeant Wayne R. Cornell, Holstein, (789) Sergeant William W. Crow, Jr., Georgia; Nebraska; Grandview Plaza, Kansas; (702) First Lieutenant Benjamin J. Colgan, (746) Sergeant First Class Lance S. (790) Lieutenant Colonel Terrence K. Kent, Washington; Cornett, London, Kentucky; Crowe, New York, New York; (703) Staff Sergeant Jay T. Collado, Colum- (747) Sergeant Marcelino Ronald Corniel, (791) Master Sergeant Thomas A. Crowell, bia, South Carolina; La Puente, California; Neosho, Missouri; (704) Sergeant Russell L. Collier, Harrison, (748) Sergeant Dennis A. Corral, Kearney, (792) Lance Corporal Kyle D. Crowley, San Arkansas; Nebraska; Ramon, California; (705) Sergeant David S. Collins, Jasper, (749) Sergeant Richard V. Correa, Hono- (793) Lance Corporal Adam J. Crumpler, Georgia; lulu, Hawaii; Charleston, West Virginia; (706) Staff Sergeant Gary L. Collins, Har- (750) Private Isaac T. Cortes, Bronx, New (794) Specialist Michael J. Crutchfield, din, Texas; York; Stockton, California; (707) Lance Corporal Jonathan W. Collins, (751) Staff Sergeant Victor M. Cortes III, (795) Sergeant Sirlou C. Cuaresma, Chi- Crystal Lake, Illinois; Erie, Pennsylvania; cago, Illinois; (708) Sergeant First Class Randy D. Col- (752) Lance Corporal Christopher B. Cos- (796) Master Sergeant Clinton W. Cubert, lins, Long Beach, California; grove III, Cedar Knolls, New Jersey; Lawrenceburg, Kentucky; (709) Corporal Ryan D. Collins, Vernon, (753) Specialist Jeremiah D. Costello, (797) Sergeant Bacilio E. Cuellar, Odessa, Texas; Carlinville, Illinois; Texas; (710) Sergeant James S. Collins, Jr., Roch- (754) Private First Class James F. Costello (798) Private Rey D. Cuervo, Laguna Vista, ester Hills, Michigan; III, St. Louis, Missouri; Texas; (711) Lance Corporal Clifford R. (755) Lance Corporal Budd M. Cote, (799) Staff Sergeant Daniel M. Cuka, Collinsworth, Chelsea, Michigan; Marana, Arizona; Yankton, South Dakota; (712) Sergeant Kyle A. Colnot, Arcadia, (756) Lance Corporal Derrick J. Cothran, (800) Corporal Russell G. Culbertson III, California; Avondale, Louisiana; Amity, Pennsylvania; (713) Staff Sergeant Pedro J. Colon, Cicero, (757) Staff Sergeant Eric D. Cottrell, (801) Private First Class Kevin A. Cuming, Illinois; Pittsview, Alabama; North White Plains, New York; (714) Chief Warrant Officer Lawrence S. (758) Sergeant David J. Coullard, Glaston- (802) Private First Class Branden C. Colton, Oklahoma City, Oklahoma; bury, Connecticut; Cummings, Titusville, Florida;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00090 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.090 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2457 (803) Corporal Ryan J. Cummings, (847) Sergeant Chris Davis, Lubbock, (891) Private First Class Ervin Dervishi, Streamwood, Illinois; Texas; Fort Worth, Texas; (804) Staff Sergeant Darren J. (848) Private First Class Steven A. Davis, (892) Specialist Daniel A. Desens, Jackson- Cunningham, Groton, Massachusetts; Woodbridge, Virginia; ville, North Carolina; (805) Specialist Daniel Francis (849) Corporal Michael W. Davis, San (893) Lance Corporal Travis R. Desiato, Cunningham, Jr., Lewiston, Maine; Marcos, Texas; Bedford, Massachusetts; (806) Sergeant Carl F. Curran, Union City, (850) Sergeant Edward G. Davis III, Wau- (894) Lance Corporal Benjamin D. Desilets, Pennsylvania; kegan/Antioch, Illinois; Elmwood, Illinois; (807) Corporal Michael Edward Curtin, (851) Sergeant Anthony J. Davis, Jr., Long (895) Specialist Douglas C. Desjardins, Howell, New Jersey; Beach, California; Mesa, Arizona; (808) Staff Sergeant Christopher E. (852) Staff Sergeant David F. Day, Saint (896) Private First Class Nathaniel E. Cutchall, McConnellsburg, Pennsylvania; Louis Park, Minnesota; ‘‘Nate’’ Detample, Morrisville, Pennsylvania; (809) Private First Class Brian K. Cutter, (853) Staff Sergeant Jeffrey F. Dayton, Cal- (897) Private First Class Michael R. Deuel, Riverside, California; edonia, Mississippi; Nemo, South Dakota; (810) Specialist Edgar P. Daclan, Jr., Cy- (854) Sergeant Kyle Dayton, El Dorado (898) Private Michael J. Deutsch, Dubuque, press, California; Hills, California; Iowa; (811) Private First Class Anthony D. (855) Sergeant Mario K. De Leon, San Fran- (899) Sergeant Israel Devora Garcia, Clint, Dagostino, Waterbury, Connecticut; cisco, California; Texas; (812) Sergeant Joel A. Dahl, Los Lunas, (856) Petty Officer Third Class Lee Ham- (900) Lance Corporal Brandon Christopher New Mexico; ilton Deal, West Monroe, Louisiana; Dewey, Tracy/San Joaquin, California; (813) Second Lieutenant Mark J. Daily, (857) Private First Class John Wilson (901) Lance Corporal Daniel Nathan Irvine, California; ‘‘J.W.’’ Dearing, Hazel Park, Michigan; Deyarmin, Jr., Tallmadge, Ohio; (814) Specialist Ryan S. Dallam, Norman, (858) Staff Sergeant Michael L. Deason, (902) First Lieutenant Carlos J. Diaz, Oklahoma; Farmington, Missouri; Juana Diaz, Puerto Rico; (815) Specialist Ernest W. Dallas, Jr., Den- (859) Private First Class Darren A. (903) Specialist Sergio R. Diaz, Varela ton, Texas; Deblanc, Evansville, Indiana; Lomita, California; (816) Captain Nathan S. Dalley, Kaysville, (860) Sergeant Germaine L. Debro, Omaha, (904) Captain Douglas A. DiCenzo, Plym- Utah; Nebraska; outh, New Hampshire; (817) Staff Sergeant Joel P. Dameron, (861) Lance Corporal Kurt Edward Dechen, (905) Corporal Tyler J. Dickens, Columbus, Ellabell, Georgia; Springfield, Vermont; Georgia; (818) Private First Class Grant Allen (862) Sergeant Matthew L. Deckard, Eliza- (906) Petty Officer Third Class Christopher Dampier, Merrill, Wisconsin; bethtown, Kentucky; M. Dickerson, Eastman, Georgia; (819) Sergeant Corey A. Dan, Norway, (863) Lance Corporal Roger W. Deeds, Bi- (907) Lance Corporal Joshua W. Dickinson, Maine; loxi, Mississippi; Pasco, Florida; (820) Lance Corporal Andrew S. Dang, Fos- (864) Specialist Michael S. Deem, (908) Staff Sergeant Michael A Dickinson ter City, California; Rockledge, Florida; II, Battle Creek, Michigan; (821) Corporal Jason B. Daniel, Crowley, (865) First Lieutenant Joshua Deese, Robe- (909) Specialist Christopher W. Dickison, Texas; son County, North Carolina; Seattle, Washington; (822) Specialist Danny B. Daniels II, (866) Chief Warrant Officer Jason Garth (910) Corporal Nicholas J. Dieruf, Varney, West Virginia; DeFrenn, Barnwell, South Carolina; Versailles, Kentucky; (823) Private First Class Torey J. Dantzler, (867) Corporal Christopher Degiovine, Lone (911) Sergeant First Class Trevor J. Columbia, Louisiana; Tree, Colorado; Diesing, Plum City, Wisconsin; (824) Chief Petty Officer Paul J. Darga, (868) Sergeant Dariek E. Dehn, Spokane, (912) Private David E. Dietrich, Marysville, Lansing, Michigan; Washington; Pennsylvania; (825) Private First Class Norman Darling, (869) Private Jason L. Deibler, Coeburn, (913) Specialist Jeremiah J. DiGiovanni, Middleboro, Massachusetts; Virginia; Tylertown, Mississippi; (826) Captain Eric Bruce Das, Amarillo, (870) Lance Corporal Jesse D. Delatorre, (914) Staff Sergeant Christopher W. Dill, Texas; Aurora, Illinois; Tonawanda, New York; (827) Petty Officer First Class Steven Phil- (871) Specialist Lauro G. DeLeon, Jr., (915) Corporal Matthew V. Dillon, Aiken, lip Daugherty, Barstow, California; Floresville, Texas; South Carolina; (828) Specialist Andrew P. Daul, Brighton, (872) Private First Class Marc A. Delgado, (916) Corporal Benjamin C. Dillon, Michigan; Lithia, Florida; Rootstown, Ohio; (829) Lance Corporal James R. Davenport, (873) Private George Delgado, Palmdale, (917) Sergeant Catalin D. Dima, White Danville, Indiana; California; Lake, New York; (830) Corporal Seamus M. Davey, Lewis, (874) Sergeant Felix M. Delgreco, (918) Specialist Jeremy M. Dimaranan, Vir- New York; Simsbury, Connecticut; ginia Beach, Virginia; (831) Lance Corporal Wesley G. Davids, (875) Sergeant Jacob H. Demand, Palouse, (919) Specialist Joshua P. Dingler, Hiram, Dublin, Ohio; Washington; Georgia; (832) Specialist Shawn M. Davies, Ali- (876) Private First Class Robert H. (920) Sergeant Michael A. Diraimondo, quippa/Hopewell, Pennsylvania; Dembowski, Ivyland, Pennsylvania; Simi Valley, California; (833) Sergeant Jessie Davila, Greensburg, (877) First Lieutenant Joseph D. deMoors, (921) Specialist Anthony J. Dixon, Kansas; Jefferson, Alabama; Lindenwold, New Jersey; (834) Private Brandon L. Davis, Cum- (878) Corporal Kevin J. Dempsey, Monroe, (922) Private First Class Christopher R. berland, Maryland; Connecticut; Dixon, Columbus, Ohio; (835) Staff Sergeant Craig Davis, (879) Sergeant Jason C. Denfrund, (923) Specialist Robert J. Dixon, Min- Opelousas, Louisiana; Cattaraugus, New York; neapolis, Minnesota; (836) Specialist Daryl A. Davis, Orlando, (880) Lance Corporal Tenzin Dengkhim, (924) Staff Sergeant Donnie D. Dixon, Florida; Falls Church, Virginia; Miami, Florida; (837) Sergeant David J. Davis, Mount Airy, (881) Staff Sergeant Mike A. Dennie, Fay- (925) Corporal Derek C. Dixon, Riverside, Maryland; etteville, North Carolina; Ohio; (838) Staff Sergeant Donald N. Davis, Sagi- (882) Captain John R. Dennison, Ijamsville, (926) Captain Derek A. Dobogai, Fond du naw, Michigan; Maryland; Lac, Wisconsin; (839) Major Gloria D. Davis, St. Louis, Mis- (883) Specialist Darryl T. Dent, Wash- (927) Sergeant Philip Allan Dodson, Jr., souri; ington, District of Columbia; Forsyth, Georgia; (840) Staff Sergeant Kevin Dewayne Davis, (884) Private Cory R. Depew, Beech Grove, (928) Specialist Thomas K. Doerflinger, Sil- Lebanon, Oregon; Indiana; ver Spring, Maryland; (841) Specialist Raphael S. Davis, Tutwiler, (885) Lance Corporal Leon Deraps, St. (929) Private First Class Dan Dolan, Roy, Mississippi; Louis, Missouri; Utah; (842) Staff Sergeant Wilbert Davis, Tampa, (886) Sergeant First Class Robert V. (930) Sergeant Ryan E. Doltz, Mine Hill, Florida; Derenda, Ledbetter, Kentucky; New Jersey; (843) Private First Class William N. Davis, (887) Corporal Dustin A. Derga, Columbus, (931) Staff Sergeant Carlos Dominguez, Sa- Adrian, Michigan; Ohio; vannah, Georgia; (844) Sergeant Zachariah Scott Davis, (888) Specialist Brian K. Derks, White (932) Sergeant Chadrick O. Domino, Ennis, Spiro, Oklahoma; Cloud, Michigan; Texas; (845) Corporal Todd E. Davis, Raymore, (889) Sergeant Gabriel G. DeRoo, Paw Paw, (933) Sergeant Jacob D. Dones, Dimmitt, Missouri; Michigan; Texas; (846) Staff Sergeant Carletta S. Davis, An- (890) Sergeant Andrew Joseph Derrick, Co- (934) Specialist Dustin R. Donica, Spring, chorage, Alaska; lumbia, South Carolina; Texas;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00091 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.090 S03APPT1 ccoleman on PRODPC75 with SENATE S2458 CONGRESSIONAL RECORD — SENATE April 3, 2008 (935) First Lieutenant Mark H. Dooley, (979) Specialist William D. Dusenbery, (1023) Specialist Steven R. Elrod, Hope Wallkill, New York; Fairview Heights, Illinois; Mills, North Carolina; (936) Sergeant Michael E. Dooley, Pulaski, (980) Second Lieutenant Seth J. Dvorin, (1024) Specialist William River Emanuel Virginia; East Brunswick, New Jersey; IV, Stockton, California; (937) Private First Class Jason E. Dore, (981) Petty Officer Second Class Jason B. (1025) Hospitalman Luke Emch, Kent, Ohio; Moscow, Maine; Dwelley, Apopka, Florida; (1026) Specialist Matthew J. Emerson, (938) Chief Warrant Officer Patrick D. (982) Lance Corporal Christopher Jenkins Grandview, Washington; Dorff, Buffalo, Minnesota; Dyer, Cincinnati, Ohio; (1027) Sergeant Blair W. Emery, Lee, (939) Staff Sergeant Richwell A. Doria, San (983) Sergeant Scott D. Dykman, Helena, Maine; Diego, California; Montana; (1028) Specialist Ebe F. Emolo, Greensboro, (940) Captain Nathanael J. Doring, Apple (984) Sergeant First Class Donald W. North Carolina; Valley, Minnesota; Eacho, Black Creek, Wisconsin; (1029) Lance Corporal Adam Q. Emul, Van- (941) Petty Officer Second Class Trace W. (985) Specialist Carl A. Eason, Lovelady, couver, Washington; Dossett, Orlando, Florida; Texas; (1030) Sergeant Cory M. Endlich, Massillon, (942) Sergeant First Class James D. Doster, (986) Staff Sergeant Richard S. Eaton, Jr., Ohio; Pine Bluff, Arkansas; Guilford, Connecticut; (1031) Lance Corporal Mark E. Engel, (943) Sergeant First Class Shawn Chris- (987) Specialist Blain M. Ebert, Washtucna, Grand Junction, Colorado; topher Dostie, Granite City, Illinois; Washington; (1032) Sergeant Christian P. Engeldrum, (944) Sergeant Thomas John Dostie, Som- (988) Corporal Christopher S. Ebert, Bronx, New York; erville, Maine; Mooresboro, North Carolina; (1033) Chief Warrant Officer (CW4) John W. (945) Lance Corporal Scott Eugene Dough- (989) Lance Corporal Thomas P. Echols, Engeman, East North Port, New York; erty, Bradenton, Florida; Shepherdsville, Kentucky; (1034) Captain Shawn L. English, (946) Master Sergeant Robert John Dowdy, (990) Sergeant Gary A. ‘‘Andy’’ Eckert, Jr., Westerville, Ohio; Cleveland, Ohio; Sylvania, Ohio; (1035) Private First Class Andrew T. (947) Lance Corporal Michael A. Downey, (991) Lance Corporal Robert F. Eckfield, Engstrom, Slaton, Texas; Phoenix, Arizona; Jr., Cleveland, Ohio; (1036) Sergeant Peter G. Enos, South Dart- (948) Private First Class Stephen P. Down- (992) Private First Class Christopher M. mouth, Massachusetts; ing II, Burkesville, Kentucky; Eckhardt, Phoenix, Arizona; (1037) Lance Corporal Nicholas B. Erdy, (949) Major William Downs, Winchester, (993) Sergeant William C. Eckhart, Williamsburg, Ohio; Virginia; Rocksprings, Texas; (1038) Lance Corporal Brian A. Escalante, (950) Staff Sergeant Jeremy W. Doyle, (994) First Lieutenant Jonathan W. Edds, Dodge City, Kansas; Chesterton, Maryland; White Pigeon, Michigan; (1039) Corporal Christopher E. Esckelson, (951) Staff Sergeant Jonathan K. Dozier, (995) First Lieutenant William A. Edens, Vassar, Michigan; Rutherford, Tennessee; Columbia, Missouri; (1040) Lance Corporal Sergio H. Escobar, (952) Specialist Chad H. Drake, Garland, (996) Captain James C. Edge, Virginia Pasadena, California; Texas; Beach, Virginia; (1041) Senior Airman Pedro I. Espaillat, (953) Sergeant George Ray Draughn, Jr., (997) Specialist Marshall L. Edgerton, Jr., Columbia, Tennessee; Decatur, Georgia; Rocky Face, Georgia; (1042) Petty Officer Second Class Allan M. (954) Sergeant Duane J. Dreasky, Novi, (998) Sergeant Benjamin C. Edinger, Green Espiritu, Oxnard, California; Michigan; Bay, Wisconsin; (1043) Captain Phillip T. Esposito, Suffern, (955) Private First Class Justin W. Dreese, (999) Corporal Phillip C. Edmundson, Wil- New York; Northumberland, Pennsylvania; son, North Carolina; (1044) Sergeant Adam W. Estep, Campbell, (956) Sergeant Shawn E. Dressler, Santa (1000) Specialist William L. Edwards, Hous- California; (1045) Staff Sergeant James E. Estep, Lees- Maria, California; ton, Texas; (957) Private Jeremy L. Drexler, Topeka, (1001) Private First Class Chase A. Ed- burg, Florida; (1046) Staff Sergeant Justin M. Estes, Kansas; wards, Lake Charles, Louisiana; Sims, Arkansas; (958) Sergeant Charles A. ‘‘Chuck’’ Drier, (1002) Staff Sergeant Mark O. Edwards, (1047) Corporal Michael A. Estrella, Hemet, Tuscola County, Michigan; Unicoi, Tennessee; California; (959) Staff Sergeant Eric T. Duckworth, (1003) Specialist Michael I. Edwards, Fair- (1048) Private Ruben Estrella-Soto, El Plano, Texas; banks, Alaska; Paso, Texas; (960) Private First Class Kasper Allen (1004) Private First Class Shawn C. Ed- (1049) Lance Corporal Jonathan Edward Dudkiewicz, Chalan Pago/Mangilao, Guam; wards, Bensenville, Illinois; Etterling, Wheelersburg, Ohio; (961) Private First Class Joseph J. Duenas, (1005) Sergeant First Class Amos C. Ed- (1050) Captain Kermit O. Evans, Mesa, Arizona; wards, Jr., Savannah, Georgia; Hollandale, Mississippi; (962) Private First Class Amy A. Duerksen, (1006) Sergeant Michael Egan, Pennsauken, (1051) Specialist William L. Evans, Temple, Texas; New Jersey; Hallstead, Pennsylvania; (963) Specialist Christopher M. Duffy, (1007) Staff Sergeant Kyle A. Eggers, Eu- (1052) Sergeant Michael S. Evans II, Brick, New Jersey; less, Texas; Marrero, Louisiana; (964) Corporal Joseph C. Dumas, Jr., New (1008) Private First Class Jeremy W. Ehle, (1053) Private David Evans, Jr., Buffalo, Orleans, Louisiana; Richmond, Virginia; New York; (965) Sergeant Allen J. Dunckley, Yardley, (1009) Sergeant Robert W. Ehney, Lex- (1054) Staff Sergeant Christopher L. Ever- Pennsylvania; ington, Kentucky; ett, Huntsville, Texas; (966) Corporal Jason L. Dunham, Scio (Al- (1010) Specialist Andrew C. Ehrlich, Mesa, (1055) Staff Sergeant Jason M. Evey, legany Co.), New York; Arizona; Stockton, California; (967) Sergeant First Class Robert E. (1011) Private First Class Wyatt D. (1056) Corporal Mark Asher Evnin, Bur- Dunham, Baltimore, Maryland; Eisenhauer, Pinckneyville, Illinois; lington, Vermont; (968) Staff Sergeant Joe L. Dunigan, Jr., (1012) Sergeant Aaron C. Elandt, Lowell, (1057) Private First Class Jeremy Ricardo Belton, Texas; Michigan; Ewing, Miami, Florida; (969) Sergeant Shawn M. Dunkin, Colum- (1013) Specialist Farid Elazzouzi, Paterson, (1058) Sergeant Anthony D. Ewing, Phoe- bia, South Carolina; New Jersey; nix, Arizona; (970) Sergeant Brent W. Dunkleberger, (1014) Specialist Elias Elias, Glendora, (1059) Sergeant Justin L. Eyerly, Salem, Bloomfield, Pennsylvania; California; Oregon; (971) Sergeant Brian E. Dunlap, Vista, Cali- (1015) Sergeant First Class Adrian M. (1060) Lance Corporal Bradley M. Fair- fornia; Elizalde, North Bend, Oregon; cloth, Mobile, Alabama; (972) Sergeant Jeannette T. Dunn, Bronx, (1016) Staff Sergeant Michael D. Elledge, (1061) Private First Class Nathan P. New York; Brownsburg, Indiana; Fairlie, Candor, New York; (973) Staff Sergeant Terrence D. Dunn, (1017) Private First Class Kevin J. (1062) Private Jonathan I. Falaniko, Pago Houston, Texas; Ellenburg, Middleburg, Florida; Pago, American Samoa; (974) Sergeant Clayton G. Dunn II, Moreno (1018) Gunnery Sergeant Terry J. Elliott, (1063) Corporal Adam R. Fales, Cullman, Valley, California; Middleton, Tennessee; Alabama; (975) Sergeant Arnold Duplantier II, Sac- (1019) Staff Sergeant James D. Ellis, Val- (1064) Private Shawn Patrick Falter, ramento, California; dosta, Georgia; Cortland, New York; (976) Staff Sergeant Joan J. Duran, (1020) Sergeant Major Joseph J. Ellis, Ash- (1065) Corporal Adam J. Fargo, Roxbury, Massachusetts; land, Ohio; Ruckersville, Virginia; (977) Staff Sergeant Jerry M. ‘‘Michael’’ (1021) Lance Corporal Justin M. Ellsworth, (1066) Staff Sergeant Donald B. Farmer, Durbin, Jr., Spring, Texas; Mount Pleasant, Michigan; Zion, Illinois; (978) Specialist Robert L. DuSang, (1022) Lance Corporal Nathan R. Elrod, (1067) Private First Class Colby M. Farnan, Mandeville, Louisiana; Salisbury, North Carolina; Weston, Missouri;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00092 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.090 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2459 (1068) Specialist Clay P. Farr, Bakersfield, (1112) Specialist Dustin C. Fisher, Fort (1156) Lance Corporal Phillip E. Frank, Elk California; Smith, Arkansas; Grove, Illinois; (1069) Sergeant Andrew K. Farrar, Jr., Wey- (1113) Sergeant Paul F. Fisher, Cedar Rap- (1157) Captain Stephen W. Frank, Lansing, mouth, Massachusetts; ids, Iowa; Michigan; (1070) Private First Class William A. (1114) Staff Sergeant Sean P. Fisher, San- (1158) Staff Sergeant Bobby C. Franklin, Farrar, Jr., Redlands, California; tee, California; Mineral Bluff, Georgia; (1071) Corporal Billy B. Farris, Bapchule, (1115) Corporal Donald E. Fisher II, Avon, (1159) Private First Class Michael W. Arizona; Massachusetts; Franklin, Coudersport, Pennsylvania; (1072) Staff Sergeant Jefferey J. Farrow, (1116) Corporal Joseph E. Fite, Round (1160) Specialist Jermaine D. Franklin, Ar- Birmingham, Alabama; Rock, Texas; lington, Texas; (1073) First Lieutenant Michael J. (1117) Second Lieutenant Almar L. Fitz- (1161) Corporal Lucas A. Frantz, Fasnacht, Mankato, Minnesota; gerald, Lexington, South Carolina; Tonganoxie, Kansas; (1074) Sergeant Huey P. L. Fassbender, La- (1118) Lance Corporal Dustin R. Fitzgerald, (1162) Specialist Matthew C. Frantz, Lafay- Place, Louisiana; Huber Heights, Ohio; ette, Indiana; (1075) Command Sergeant Major Steven W. (1119) Sergeant Dennis J. Flanagan, Inver- (1163) Private Robert L. Frantz, San Anto- Faulkenburg, Huntingburg, Indiana; ness, Florida; nio, Texas; (1076) Sergeant James Daniel Faulkner, (1120) Private First Class Jacob S. Fletch- (1164) First Lieutenant David M. Fraser, Clarksville, Indiana; er, Bay Shore, New York; Houston, Texas; (1077) Private First Class Raymond J. (1121) Staff Sergeant Marion Flint, Jr., (1165) Lance Corporal Grant B. Fraser, An- Faulstich, Jr., Leonardtown, Maryland; Baltimore, Maryland; chorage, Alaska; (1078) Captain Brian R. Faunce, Philadel- (1122) Private First Class John D. Flores, (1166) Private First Class Vincent M. phia, Pennsylvania; Barrigada, Guam; Frassetto, Toms River, New Jersey; (1079) Staff Sergeant Jason A. Fegler, Vir- (1123) Lance Corporal Jonathan R. Flores, (1167) Sergeant Joshua J. Frazier, Spotsyl- ginia Beach, Virginia; San Antonio, Texas; vania, Virginia; (1080) Captain Arthur L. ‘‘Bo’’ Felder, (1124) Staff Sergeant Omar Flores, Mission, (1168) Sergeant Kendall K. Frederick, Lewisville, Arkansas; Texas; Randallstown, Maryland; (1081) Specialist Tyanna S. Felder, Bridge- (1125) Private First Class Jose Ricardo Flo- (1169) Private Benjamin L. Freeman, Val- port, Connecticut; res-Mejia, Santa Clarita, California; dosta, Georgia; (1082) Lieutenant Colonel Glade L. Felix, (1126) Army Specialist Wilfred Flores- (1170) Staff Sergeant Brian L. Freeman, Lake Park, Georgia; Mejia, Santa Clarita, California; Caledonia, Mississippi; (1083) Sergeant Robin V. Fell, Shreveport, (1127) Specialist Camy Florexil, Philadel- (1171) Captain Brian Scott Freeman, Louisiana; phia, Pennsylvania; Temecula, California; (1084) Second Lieutenant Paul M. Felsberg, (1128) Sergeant Al’Kaila T. Floyd, Grand (1172) Sergeant Bryan L. Freeman, Lum- West Palm Beach, Florida; Rapids, Michigan; berton, New Jersey; (1085) Colonel Thomas H. Felts, Sr., (1129) Sergeant Clarence L. Floyd, Jr., (1173) Private First Class Walter Freeman, Sandston, Virginia; Manhattan, New York; Jr., Lancaster, California; (1086) Corporal Llythaniele Fender, Med- (1130) Chief Warrant Officer Paul J. Flynn, (1174) Corporal Carrie L. French, Caldwell, ical Lake, Washington; Whitsett, North Carolina; Idaho; (1087) Private First Class Shelby J. (1131) Specialist Thomas Arthur Foley III, (1175) Captain Jeremy Fresques, Clarkdale, Feniello, Connellsville, Pennsylvania; Dresden, Tennessee; Arizona; (1088) Sergeant Sean P. Fennerty, Cor- (1132) Staff Sergeant Tommy Ike Folks, (1176) Private First Class Steven Freund, vallis, Oregon; Jr., Amarillo, Texas; Pleasant Hills, Pennsylvania; (1089) Sergeant Matthew J. Fenton, Little (1133) Sergeant Timothy Folmar, Sonora, (1177) Lance Corporal David Keith Fribley, Ferry, New Jersey; Texas; Lee, Florida; (1090) Specialist Dennis J. Ferderer, Jr., (1134) Private First Class Jesus Fonseca, (1178) Sergeant Armand L. Frickey, New Salem, North Dakota; Marietta, Georgia; Houma, Louisiana; (1091) Specialist Rian C. Ferguson, Taylors, (1135) Private First Class Victor M. (1179) Sergeant David Travis Friedrich, South Carolina; Fontanilla, Stockton, California; Hammond, New York; (1092) Master Sergeant Richard L. Fer- (1136) Gunnery Sergeant Elia P. (1180) Petty Officer First Class Nathan J. guson, Conway, New Hampshire; Fontecchio, Milford, Massachusetts; Frigo, Kokomo, Indiana; (1093) Master Sergeant George Andrew (1137) Staff Sergeant Jarred S. Fontenot, (1181) Specialist Luke P. Frist, Brookston, Fernandez, El Paso, Texas; Port Barre, Louisiana; Indiana; (1094) Sergeant William V. Fernandez, (1138) Corporal Aaron M. Forbes, Oak Is- (1182) First Lieutenant Jacob N. Fritz, Reading, Pennsylvania; land, North Carolina; Vernon, Nebraska; (1095) Private First Class Marius L. (1139) Specialist Jason C. Ford, Bowie, (1183) Specialist Adam D. Froehlich, Pine Ferrero, Miami, Florida; Maryland; Hill, New Jersey; (1096) Sergeant First Class Clint D. Ferrin, (1140) Sergeant Joshua Ford, Wayne, Ne- (1184) Private Kurt R. Frosheiser, Des Picayune, Mississippi; braska; Moines, Iowa; (1097) Major Gregory J. Fester, Grand Rap- (1141) Lance Corporal Michael L. Ford, New (1185) Staff Sergeant Christopher S. Frost, ids, Michigan; Bedford, Massachusetts; Waukesha, Wisconsin; (1098) Specialist Jon P. Fettig, Dickinson, (1142) Specialist Philip C. Ford, Freeport, (1186) Gunnery Sergeant John D. Fry, North Dakota; Texas; Lorena, Texas; (1099) Corporal Tyler R. Fey, Eden Prairie, (1143) Sergeant Richard L. Ford, East Hart- (1187) Private First Class Jason L. Frye, Minnesota; ford, Connecticut; Landisburg, Pennsylvania; (1100) Sergeant Damien T. Ficek, Pullman, (1144) Captain Travis Allen Ford, Ogallala, (1188) Private First Class Nichole M. Frye, Washington; Nebraska; Lena, Wisconsin; (1101) Sergeant Nathan R. Field, Lehigh, (1145) Specialist David H. Ford IV, Ironton, (1189) Private First Class Daniel A. Iowa; Ohio; Fuentes, Levittown, New York; (1102) Captain Michael S. Fielder, Holly (1146) Sergeant Curtis J. Forshey, (1190) Specialist Ray M. Fuhrmann II, Springs, North Carolina; Hollidaysburg, Pennsylvania; Novato, California; (1103) Sergeant Eric A. Fifer, Knoxville, (1147) Chief Warrant Officer Wesley C. (1191) Specialist Timothy Fulkerson, Utica, Tennessee; Fortenberry, Woodville, Texas; Kentucky; (1104) Private First Class Gabriel J. (1148) Sergeant Maurice Keith Fortune, (1192) Corporal William B. Fulks, Culloden, Figueroa, Baldwin Park, California; Forestville, Maryland; West Virginia; (1105) Lance Corporal Luis A. Figueroa, (1149) Captain Erick M. Foster, Wexford, (1193) Sergeant Alexander H. Fuller, Los Angeles, California; Pennsylvania; Centerville, Massachusetts; (1106) Sergeant Courtney D. Finch, Leaven- (1150) First Sergeant Bradley C. Fox, Adri- (1194) Staff Sergeant Carl Ray Fuller, Cov- worth, Kansas; an, Michigan; ington, Georgia; (1107) Sergeant Michael W. Finke, Jr., (1151) Lance Corporal Travis A. Fox, (1195) First Lieutenant Travis J. Fuller, Wadsworth/Huron, Ohio; Cowpens, South Carolina; Granville, Massachusetts; (1108) Lieutenant Colonel Paul J. Finken, (1152) Sergeant Kraig D. Foyteck, Skokie, (1196) Sergeant Alexander J. Funcheon, Bel Earling, Iowa; Illinois; Aire, Kansas; (1109) Sergeant Jeremy J. Fischer, Lincoln, (1153) Private First Class Jason Franco, (1197) Lance Corporal Kane M. Funke, Van- Nebraska; Corona, California; couver, Washington; (1110) Sergeant Keith E. Fiscus, Townsend, (1154) Sergeant Craig S. Frank, Lincoln (1198) Captain James A. Funkhouser, Katy, Delaware; Park, Michigan; Texas; (1111) Sergeant David M. Fisher, (1155) Specialist Michael Frank, Great (1199) Sergeant Donald D. Furman, Burton, Watervliet/Green Island, New York; Falls, Montana; South Carolina;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00093 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.091 S03APPT1 ccoleman on PRODPC75 with SENATE S2460 CONGRESSIONAL RECORD — SENATE April 3, 2008 (1200) Sergeant Marcus S. Futrell, Macon, (1244) Sergeant Cari Anne Gasiewicz, (1288) Specialist Joseph A. Gilmore, Web- Georgia; Depew/Cheektowaga, New York; ster, Florida; (1201) Sergeant Major Marilyn L. Gabbard, (1245) First Lieutenant Kevin Gaspers, (1289) Sergeant Terrell W. Gilmore, Baton Polk City, Iowa; Hastings, Nebraska; Rouge, Louisiana; (1202) Sergeant First Class Dan H. (1246) Staff Sergeant Sean M. Gaul, Reno, (1290) Command Sergeant Major Cornell W. Gabrielson, Spooner, Wisconsin; Nevada; Gilmore I, Baltimore, Maryland; (1203) Second Lieutenant Clifford V. ‘‘CC’’ (1247) Private First Class Anthony Alex- (1291) Specialist Richard Gilmore III, Jas- Gadsden, Red Top, South Carolina; ander ‘‘Alex’’ Gaunky, Sparta, Wisconsin; per, Alabama; (1204) Lance Corporal Jonathan E. Gads- (1248) Sergeant Jay R. Gauthreaux, (1292) Petty Officer Third Class Ronald A. den, Charleston, South Carolina; Thibodaux, Louisiana; Ginther, Auburndale, Florida; (1205) Sergeant Alexander U. Gagalac, (1249) Private First Class Aaron D. Gautier, (1293) Sergeant Daniel Gionet, Pelham, Wahiawa, Hawaii; Hampton, Virginia; New Hampshire; (1206) Staff Sergeant Greg P. Gagarin, Los (1250) Lance Corporal Dimitrios Gavriel, (1294) Sergeant Milton A. Gist, Jr., St. Angeles, California; New York, New York; Louis, Missouri; (1207) Staff Sergeant Joseph A. Gage, Mo- (1251) Private First Class Alva L. Gaylord, (1295) Private First Class Nathaniel A. desto, California; Carrollton, Missouri; Given, Dickinson, Texas; (1208) Private First Class Shawn D. Gajdos, (1252) Specialist Ron Gebur, Delavan, Illi- (1296) Private First Class Jesse Alan Grand Rapids, Michigan; nois; Givens, Springfield, Missouri; (1209) Lance Corporal Patrick J. Gallagher, (1253) Private First Class George R. Geer, (1297) Specialist Steven Ray Givens, Mobile Jacksonville, Florida; Cortez, Colorado; Alabama; (1210) Sergeant Denis J. Gallardo, St. Pe- (1254) Specialist Wayne M. Geiger, Lone (1298) Specialist Curtis E. Glawson, Jr., tersburg, Florida; Pine, California; Daleville, Alabama; (1211) Corporal Jose A. Galvan, San Anto- (1255) Second Lieutenant Mark C. Gelina, (1299) Specialist Michael T. Gleason, War- nio, Texas; Moberly, Missouri; ren, Pennsylvania; (1212) Corporal Adam Anthony Galvez, Salt (1256) Sergeant Christopher D. Gelineau, (1300) Lance Corporal Marcus S. Glimpse, Lake City, Utah; Portland, Maine; Huntington Beach, California; (1213) Specialist Carter A. Gamble, Jr., (1257) Private First Class Aaron M. (1301) Lance Corporal Michael Dennis Glov- Brownstown, Indiana; Genevie, Chambersburg, Pennsylvania; er, Brooklyn, New York; (1214) Staff Sergeant Joseph D. Gamboa, (1258) Staff Sergeant Lewis J. Gentry, De- (1302) Lance Corporal James M. Gluff, Yigo, Guam; troit, Michigan; Tunnell Hill, Georgia; (1215) Sergeant Steven C. Ganczewski, Ni- (1259) Corporal Orville Gerena, Virginia (1303) Sergeant Lee M. Godbolt, New Orle- agara Falls, New York; Beach, Virginia; ans, Louisiana; (1216) Sergeant Jerry Lewis Ganey, Jr., (1260) Seaman Genesia Mattril Gresham, (1304) Corporal Todd J. Godwin, Folkston, Georgia; Lithonia, Georgia; Muskingum County, Ohio; (1217) Captain Richard J. Gannon II, Escon- (1261) Specialist Clinton R. Gertson, Hous- (1305) Second Lieutenant James Michael dido, California; ton, Texas; Goins, Bonner Springs, Kansas; (1218) Sergeant Seth K. Garceau, Oelwein, (1262) Corporal Albert Pasquale Gettings, (1306) Sergeant Christopher A. Golby, Iowa; New Castle, Pennsylvania; Johnstown, Pennsylvania; (1219) Specialist Tomas Garces, Weslaco, (1263) Lance Corporal Cory Ryan Geurin, (1307) Staff Sergeant Marcus A. Texas; Santee, California; Golczynski, Lewisburg, Tennessee; (1220) Captain Anthony R. Garcia, Fort (1264) First Lieutenant David L. Giaimo, (1308) Sergeant David J. Goldberg, Layton, Worth, Texas; Waukegan, Illinois; Utah; (1221) Corporal J. Adan Garcia, Irving, (1265) Corporal Peter J. Giannopoulos, In- (1309) Lance Corporal Shane Lee Goldman, Texas; verness, Illinois; Orange, Texas; (1222) Sergeant Javier J. Garcia, (1266) Private First Class Devon J. Gib- (1310) Lance Corporal Cliff Golla, Char- Crawfordville, Florida; bons, Port Orchard, Washington; lotte, North Carolina; (1223) Corporal Justin R. Garcia, Elmhurst, (1267) Specialist Mathew V. Gibbs, Am- (1311) Sergeant Jose Gomez, Corona, New New York; brose, Georgia; York; (1224) Chief Warrant Officer (CW2) Ruel M. (1268) Specialist Nicholas R. Gibbs, (1312) Specialist Daniel E. Gomez, Warner Garcia, Wahiawa, Hawaii; Stokesdale, North Carolina; Robbins, Georgia; (1225) Specialist Victor A. Garcia, Rialto, (1269) Sergeant First Class Todd Clayton (1313) Specialist Zacharaiah J. Gonzalez, California; Gibbs, Lufkin, Texas; Indiana; (1226) Private First Class Alberto Garcia, (1270) Sergeant Brennan C. Gibson, (1314) Staff Sergeant Ramon E. Gonzalez- Jr., Bakersfield, California; Tualatin, Oregon; Cordova, Davie, Florida; (1227) Specialist Felipe J. Garcia, Villareal (1271) Corporal Christopher A. Gibson, Simi (1315) Corporal Armando Ariel Gonzalez, Burke, Virginia; Valley, California; Hileah, Florida; (1228) Staff Sergeant Juan de Dios Garcia- (1272) Private First Class Derek A. Gibson, (1316) Lance Corporal Benjamin R. Gon- Arana, Los Angeles, California; Eustis, Florida; zalez, Los Angeles, California; (1229) Lance Corporal Derek L. Gardner, (1273) Corporal Timothy M. Gibson, (1317) Corporal Carlos M. Gonzalez, Middle- San Juan Capistrano, California; Merrimack/Hillsborough, New Hampshire; town, New York; (1230) Specialist James W. ‘‘Will’’ Gardner, (1274) Second Lieutenant Richard Brian (1318) Sergeant Christopher N. Gonzalez, Glasgow, Kentucky; Gienau, Longview, Iowa; Winslow, Arizona; (1231) Sergeant Freeman L. Gardner, Jr., (1275) First Sergeant Alan Nye Gifford, (1319) Corporal Jesus Angel Gonzalez, Little Rock, Arkansas; Tallahassee, Florida; Indio, California; (1232) Corporal Jose Angel Garibay, Or- (1276) Private Jonathan Lee Gifford, (1320) Corporal Jorge Alonso Gonzalez, Los ange, California; Macon, Illinois; Angeles, California; (1233) Specialist Joseph M. Garmback, Jr., (1277) Specialist Micah S. Gifford, Redding, (1321) Lance Corporal Mario D. Gonzalez, Cleveland, Ohio; California; La Puente, California; (1234) Corporal Erik T. Garoutte, Santee, (1278) Sergeant Carlos J. Gil, Orlando, (1322) Private First Class Orlando E. Gon- California; Florida; zalez, New Freedom, Pennsylvania; (1235) Sergeant Mickel D. Garrigus, Elma, (1279) Corporal Carlos E. Gilorozco, San (1323) Lance Corporal Victor A. Gonzalez, Washington; Jose, California; Watsonville, California; (1236) Sergeant Landis W. Garrison, Rapids (1280) Private Kyle C. Gilbert, Brattleboro, (1324) Sergeant Felix G. Gonzalez-Iraheta, City, Illinois; Vermont; Sun Valley, California; (1237) Specialist Benjamin J. Garrison, (1281) Sergeant Thomas M. Gilbert, Down- (1325) Corporal Bernard George Gooden, Houston, Texas; ers Grove, Illinois; Mt. Vernon, New York; (1238) Sergeant Justin W. Garvey, Town- (1282) Major Troy L. Gilbert, Litchfield, (1326) Sergeant Dakotah L. Gooding, Des send, Massachusetts; Park Arizona; Moines, Iowa; (1239) Lance Corporal Edward M. Garvin, (1283) Corporal Richard A. Gilbert, Jr., (1327) Private First Class Gregory R. Good- Malden, Massachusetts; Dayton/Montgomery, Ohio; rich, Bartonville, Illinois; (1240) Staff Sergeant Joseph P. Garyantes, (1284) Sergeant Kevin A. Gilbertson, Cedar (1328) Staff Sergeant Joseph P. Goodrich, Rehoboth, Delaware; Rapids, Iowa; Allegheny, Pennsylvania; (1241) Specialist Israel Garza, Lubbock, (1285) Private Landon S. Giles, Indiana, (1329) Staff Sergeant Anthony L. Goodwin, Texas; Pennsylvania; Mount Holly, New Jersey; (1242) First Sergeant Joe Jesus Garza, (1286) Corporal Steven P. Gill, Round Rock, (1330) Sergeant David W. Gordon, Robstown, Texas; Texas; Williamsfield, Ohio; (1243) Private First Class Juan Guadalupe (1287) Sergeant Charles C. Gillican III, (1331) Captain Lyle L. Gordon, Midlothian, Garza, Jr., Temperance, Michigan; Brunswick, Georgia; Texas;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00094 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.091 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2461 (1332) Sergeant First Class Richard S. (1376) Specialist Chad D. Groepper, Kings- (1420) Captain Jason R. Hamill, New Haven, Gottfried, Lake Ozark, Missouri; ley, Iowa; Connecticut; (1333) Staff Sergeant Dustin M. Gould, (1377) Specialist Kelly B. Grothe, Spokane, (1421) Staff Sergeant Christopher N. Ham- Longmont, Colorado; Washington; lin, London, Kentucky; (1334) Staff Sergeant Gregson G. Gourley, (1378) Private First Class Daniel F. (1422) Private First Class Jonathan V. Salt Lake City, Utah; Guastaferro, Las Vegas, Nevada; Hamm, Baltimore, Maryland; (1335) Specialist Richard Allen Goward, (1379) Specialist Sergio Gudino, Pomona, (1423) Corporal Nathaniel T. Hammond, Midland, Michigan; California; Tulsa, Oklahoma; (1336) Second Lieutenant Jeffrey C. (1380) Corporal James D. Gudridge, (1424) Captain Kimberly N. Hampton, Graham, Elizabethtown, Kentucky; Carthage, New York; Easley, South Carolina; (1337) Lance Corporal Lance Tanner (1381) Sergeant Jose Guereca, Jr., Stafford/ (1425) Sergeant Michael S. Hancock, Yreka, Graham, San Antonio, Texas; Missouri City, Texas; California; (1338) Private Mark W. Graham, Lafayette, (1382) Private Ernesto R. Guerra, Long (1426) Lance Corporal Michael Wayne Louisiana; Beach, California; Hanks, Gregory, Michigan; (1339) Sergeant Shawn A. Graham, Red (1383) Private Joseph R. Guerrera, Dunn, (1427) Private First Class Fernando B. Oak, Texas; North Carolina; Hannon, Wildomar, California; (1340) Sergeant James R. Graham III, (1384) Specialist Marieo Guerrero, Fort (1428) Staff Sergeant Jeffrey J. Hansen, Coweta, Oklahoma; Worth, Texas; Cairo, Nebraska; (1341) Lance Corporal David J. Grames (1385) Lance Corporal Salvador Guerrero, (1429) Sergeant Warren S. Hansen, Sanchez, Fort Wayne, Indiana; Los Angeles, California; Clintonville, Wisconsin; (1342) Corporal Cesar A. Granados, Le (1386) Chief Warrant Officer Hans N. (1430) Private First Class Jason Hanson, Grand, California; Gukeisen, Lead, South Dakota; Forks, Washington; (1343) Private Brian K. Grant, Dallas, (1387) Private First Class Zachary R. (1431) Sergeant Joshua R. Hanson, St. Paul, Texas; Gullett, Hillsboro, Ohio; Minnesota; (1344) Lance Corporal Jonathan Walter (1388) Sergeant Nicholas A. Gummersall, (1432) Private First Class Timothy R. Han- Grant, Santa Fe, New Mexico; Chubbuck, Idaho; son, Kenosha, Wisconsin; (1345) Seaman Sandra S. Grant, Linwood, (1389) Private First Class Hannah L. (1433) Lance Corporal Charles A. Hanson, North Carolina; Gunterman, Redlands, California; Jr., Panacea, Florida; (1346) Corporal Zachary A. Grass, Beach (1390) Captain James M. Gurbisz, (1434) Sergeant Michael C. Hardegree, Villa City, Ohio; Eatontown, New Jersey; Rice, Georgia; (1347) Captain Jonathan D. Grassbaugh, (1391) Private First Class Christian Daniel (1435) Corporal Brandon M. Hardy, East Hampstead, New Hampshire; Gurtner, Ohio City, Ohio; Cochranville, Pennsylvania; (1348) Specialist Cody C. Grater, Spring (1392) Private First Class Analaura Esparza (1436) Specialist Richard Allen Hardy, Boli- Hill, Florida; Gutierrez, Houston, Texas; var/Newcomerstown, Ohio; (1349) Specialist Joseph A. Graves, Dis- (1393) Lance Corporal Jose Antonio Gutier- (1437) Chief Petty Officer Nathan H. Hardy, covery Bay, California; rez, Guatemala City, Guatemala; Durham, Nw Hampshire; (1350) Sergeant Jamie A. Gray, Montpelier, (1394) Lieutenant Colonel Marshall A. (1438) Sergeant Jason R. Harkins, Vermont; Gutierrez, Las Vegas, New Mexico; Clarkesville, Georgia; (1351) Petty Officer Second Class Michael (1395) Sergeant First Class Luis E. Gutier- (1439) Sergeant James William Harlan, J. Gray, Richmond, Virginia; rez-Rosales, Bakersfield, California; Owensboro, Kentucky; (1352) Sergeant Tommy L. Gray, Roswell, (1396) Private First Class Robert A. (1440) Staff Sergeant Darren Harmon, New- New Mexico; ‘‘Bobby’’ Guy, Willards, Maryland; ark, Delaware; (1353) Lance Corporal Torrey L. Gray, Pa- (1397) Sergeant Shaker T. Guy, Pomona, (1441) Corporal Joshua S. Harmon, Mentor, toka, Illinois; California; Ohio; (1354) Staff Sergeant Yance T. Gray, (1398) Private First Class Larry I. Guyton, (1442) Sergeant Atanasio Haro Marin, Jr., Ismay, Montana; Brenham, Texas; Baldwin Park, California; (1355) Corporal Jeffrey G. Green, Dallas, (1399) Corporal Chase A. Haag, Portland, (1443) Sergeant Bradley J. Harper, Dresden, Texas; Oregon; Ohio; (1356) Sergeant Ryan P. Green, Woodlands, (1400) Private First Class Andrew J. (1444) Staff Sergeant Marlon B. Harper, Texas; Habsieger, Festus, Missouri; Baltimore, Maryland; (1357) Specialist Toccara R. Green, Rose- (1401) Private First Class Richard W. Hafer, (1445) Staff Sergeant Gary R. Harper, Jr., dale, Maryland; Cross Lanes, West Virginia; Virden, Illinois; (1358) Lieutenant Colonel David S. Greene, (1402) Major William G. Hall, Seattle, (1446) Staff Sergeant William M. Harrell, Raleigh, North Carolina; Washington; Placentia, California; (1359) Private First Class Satieon V. (1403) Staff Sergeant Joshua R. Hager, (1447) Private First Class James J. Greenlee, Pendleton, South Carolina; Broomfield, Colorado; Harrelson, Dadeville, Alabama; (1360) Private First Class Nicholas J. (1404) Sergeant Jonathon C. Haggin, (1448) Sergeant Foster L. Harrington, Fort Greer, Monroe, Michigan; Kingsland, Georgia; Worth, Texas; (1361) Sergeant Allen A. Greka, Alpena, (1405) Staff Sergeant Guy Stanley Hagy, (1449) Private First Class Adam J. Harris, Michigan; Jr., Lodi, California; Abilene, Texas; (1362) Private First Class Devin J. Grella, (1406) Sergeant First Class Peter J. Hahn, (1450) Sergeant Blake M. Harris, Hampton, Medina, Ohio; Metairie, Louisiana; Georgia; (1363) Staff Sergeant Daniel G. Gresham, (1407) Specialist Charles G. Haight, Jack- (1451) Sergeant Blake Harris, Pueblo, Colo- Lincoln, Illinois; sonville, Alabama; rado; (1364) Lance Corporal Jourdan L. Grez, (1408) Specialist Kenneth W. Haines, Ful- (1452) Specialist Dustin J. Harris, Bangor, Harrisonburg, Virginia; ton, New York; Maine; (1365) Sergeant Louis A. Griese, Sturgeon (1409) Staff Sergeant Christopher M. Hake, (1453) Captain Jennifer J. Harris, Bay, Wisconsin; Enid, Oklahoma; Swampscott, Massachusetts; (1366) Specialist Kyle A. Griffin, Emerson, (1410) Lance Corporal Michael J. Halal, (1454) First Lieutenant Noah Harris, New Jersey; Glendale, Arizona; Ellijay, Georgia; (1367) Staff Sergeant Darrell R. Griffin, Jr., (1411) Lance Corporal John Edward Hale, (1455) Lance Corporal Shane P. Harris, Las Alhambra, California; Shreveport, Louisiana; Vegas, New Mexico; (1368) Staff Sergeant Patrick Lee Griffin, (1412) Petty Officer Second Class Curtis R. (1456) Private First Class Torry D. Harris, Jr., Elgin, South Carolina; Hall, Burley, Idaho; Chicago, Illinois; (1369) Staff Sergeant Donald D. Griffith, (1413) Specialist Robert E. Hall, Jr., Pitts- (1457) Sergeant Kenneth W. Harris, Jr., Jr., Mechanicsville, Iowa; burgh, Pennsylvania; Charlotte, Tennessee; (1370) Private First Class Travis J. Grigg, (1414) Private First Class Deryk L. Hallal, (1458) Private First Class Leroy Harris- Inola, Oklahoma; Indianapolis, Indiana; Kelly, Azusa, California; (1371) Specialist James T. Grijalva, Bur- (1415) Command Sergeant Major Roger W. (1459) Private First Class George Daniel bank, Illinois; Haller, Davidsonville, Maryland; Harrison, Knoxville, Tennessee; (1372) Corporal Sean R. Grilley, San (1416) Private Jesse M. Halling, Indianap- (1460) Private First Class John D. Hart, Bernardino, California; olis, Indiana; Bedford, Massachusetts; (1373) Corporal Kyle J. Grimes, North- (1417) Staff Sergeant Santiago M. Halsel, (1461) Sergeant David J. Hart, Lake View ampton, Pennsylvania; Bowling Green, Kentucky; Terrace, California; (1374) Captain Sean Grimes, Southfield, (1418) Private First Class Andrew Halver- (1462) Sergeant Nathaniel Hart, Jr., Val- Michigan; son, Grant, Wisconsin; dosta, Georgia; (1375) Corporal Matthew T. Grimm, Wis- (1419) Chief Warrant Officer (CW4) Erik (1463) Private First Class Nicholas S. consin Rapids, Wisconsin; Anders Halvorsen, Bennington, Vermont; Hartge, Rome City, Indiana;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00095 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.091 S03APPT1 ccoleman on PRODPC75 with SENATE S2462 CONGRESSIONAL RECORD — SENATE April 3, 2008 (1464) Specialist Adam J. Harting, Portage, (1508) Staff Sergeant Jason R. Hendrix, (1552) Lance Corporal Chad R. Hildebrandt, Indiana; Freedom, California; Springer, New Mexico; (1465) Captain Ralph J. ‘‘Jay’’ Harting III, (1509) Sergeant First Class Richard J. (1553) Specialist Seth A. Hildreth, Myrtle Union Lake, Michigan; Henkes II, Portland, Oregon; Beach, South Carolina; (1466) Specialist Jared D. Hartley, (1510) Specialist Melvin L. Henley, Jr., (1554) Specialist Christopher K. Hill, Ven- Newkirk, Oklahoma; Jackson, Mississippi; tura, California; (1467) Sergeant First Class David A. Hart- (1511) Sergeant Jack Taft Hennessy, (1555) Private First Class Ryan J. Hill, man Akron, Tuscola County, Michigan; Naperville, Illinois; Keizer, Oregon; (1468) Sergeant Jennifer M. Hartman, New (1512) Private First Class Chassan S. (1556) Private First Class Tarryl B. Hill, Ringgold, Pennsylvania; Henry, West Palm Beach, Florida; Shelby Township, Michigan; (1469) Sergeant Jonathan N. Hartman, (1513) Specialist Joshua J. Henry, (1557) Captain Raymond D. Hill II, Turlock, Jacksonvile, Florida; Avonmore, Pennsylvania; California; (1470) Staff Sergeant John L. Hartman Jr., (1514) Private First Class Raymond L. (1558) Lance Corporal Eric Hillenburg, Indi- Tampa, Florida; Henry, Anaheim, California; anapolis, Indiana; (1471) Chief Warrant Officer (CW3) Michael (1515) Corporal Lorne E. Henry, Jr., Niag- (1559) Specialist Stephen D. ‘‘Dusty’’ Hill- L. Hartwick, Orrick, Missouri; ara Falls, New York; er, Opelika, Alabama; (1472) Private First Class Travis F. Haslip, (1516) Corporal Shawn D. Hensel, (1560) Private First Class Cory F. Hiltz, La Ooltewah, Tennessee; Longansport, Indiana; Verne, California; (1473) Sergeant Donald J. Hasse, Wichita (1517) Private First Class Clayton Welch (1561) Lance Corporal Joshua M. Hines, Falls, Texas; Henson, Stanton, Texas; Olney, Illinois; (1474) Staff Sergeant Stephen C. Hattamer, (1518) Specialist Jeffrey S. Henthorn, Choc- (1562) Sergeant Keicia M. Hines, Citrus Gwinn, Michigan; taw, Oklahoma; Heights, California; (1475) Staff Sergeant Ryan E. Haupt, Phoe- (1519) Corporal Joseph J. Heredia, Santa (1563) Private First Class Timothy J. nix, Arizona; Maria, California; Hines, Jr., Fairfield, Ohio; (1476) Private First Class Sheldon R. Hawk, (1520) Specialist Marisol Heredia, El (1564) Specialist Dominic Joseph Hinton, Eagle Grand Forks, North Dakota; Monte, California; Jacksonville, Texas; (1477) Sergeant Gene A. Hawkins, Orlando, (1521) Sergeant First Class David A. (1565) Captain Kelly C. Hinz, Woodbury, Florida; Heringes, Tampa, Florida; Minnesota; (1478) Staff Sergeant Omer T. Hawkins II, (1522) Staff Sergeant Bryant A. Herlem, (1566) Lance Corporal James Daniel Cherry Fork, Ohio; Copperas Cove, Texas; Hirlston, Murfreesboro, Tennessee; (1479) Staff Sergeant Asbury F. Hawn II, (1523) Specialist Michael L. Hermanson, (1567) Private First Class Melissa J. Ho- Lebanon, Tennessee; Fargo, North Dakota; bart, Ladson, South Carolina; (1480) Chief Warrant Officer Dennis P. Hay, (1524) Sergeant Armando Hernandez, (1568) Sergeant Jeremy M. Hodge, Ridge- Valdosta, Georgia; Hesperia, California; way, Ohio; (1481) Specialist Erik W. Hayes, Cascade, (1525) Sergeant Frank B. Hernandez, Phoe- (1569) Lance Corporal Erick J. Hodges, Bay Maryland; nix, Arizona; Point, California; (1482) Sergeant First Class James F. Hayes, (1526) Staff Sergeant Robert Hernandez, (1570) Sergeant Michael Paul Hodshire, Barstow, California; Silver Spring, Maryland; North Adams, Michigan; (1483) Private First Class Michael Ray (1527) Lance Corporal Tony L. Hernandez, (1571) Sergeant Nicolas Michael Hodson, Hayes, Morgantown, Kentucky; Canyon Lake, Texas; Smithville, Missouri; (1484) Specialist William S. Hayes III, St. (1528) Sergeant Eric J. Hernandez, (1572) First Lieutenant Nainoa K. Hoe, Ha- Tammany, Louisiana; Waldwick, New Jersey; waii; (1485) Sergeant First Class Schuyler B. (1529) Specialist Jason J. Hernandez, (1573) Corporal Benjamin D. Hoeffner, Haynes, New York, New York; Stretsboro, Ohio; Wheat Ridge, Colorado; (1486) Sergeant Timothy L. Hayslett, (1530) Sergeant Irving Hernandez, Jr., New (1574) Sergeant First Class James T. Hoff- Newville, Pennsylvania; York, New York; man, Whitesburg, Kentucky; (1487) Chief Warrant Officer (CW2) Brian D. (1531) Corporal Joseph F. Herndon II, (1575) Sergeant Justin F. Hoffman, Dela- Hazelgrove, Fort Rucker, Alabama; Derby, Kansas; ware, Ohio; (1488) Civilian Barbara Heald, Stamford, (1532) Specialist Adam G. Herold, Omaha, (1576) Captain Roselle M. Hoffmaster, Connecticut; Nebraska; Cleveland, Ohio; (1489) Sergeant David M. Heath, LaPorte, (1533) Sergeant First Class Richard J. (1577) Private First Class Brian Lee Indiana; Herrema, Hudsonville, Michigan; Holden, Claremont, North Carolina; (1490) Specialist Justin W. Hebert, Arling- (1534) Sergeant David L. Herrera, Ocean- (1578) Staff Sergeant Theodore S. ‘‘Sam’’ ton, Washington; side, California; Holder II, Littleton, Colorado; (1491) Private First Class Anthony D. (1535) Lance Corporal Evenor C. Herrera, (1579) Specialist Manuel J. Holguin, Hebert, Lake City, Minnesota; Gypsum, Colorado; Woodlake, California; (1492) Major William F. Hecker III, St. (1536) Private First Class Edward J. (1580) Specialist Eric M. Holke, Crestline, Louis, Missouri; Herrgott, Shakopee, Minnesota; California; (1493) Sergeant Christopher T. Heflin, Pa- (1537) Specialist Patrick W. Herried, Sioux (1581) Specialist Christopher J. Holland, ducah, Kentucky; Falls, South Dakota; Brunswick, Georgia; (1494) Private First Class Damian L. Hei- (1538) Sergeant Jacob R. Herring, Kirkland, (1582) Lieutenant Colonel Daniel E. Hol- delberg, Batesville, Mississippi; Washington; land, San Antonio, Texas; (1495) First Liutenent Keith N. Heidtman, (1539) Lance Corporal Eric W. Herzberg, Se- (1583) Civilian Fern L. Holland, Miami, Connecticut, Norwich; verna Park, Maryland; Oklahoma; (1496) Private First Class Raheen Tyson (1540) Specialist Jordan W. Hess, (1584) Staff Sergeant Robert Lee Hollar, Heighter, Bay Shore, New York; Marysville, Washington; Jr., Griffin, Georgia; (1497) Specialist Jeremy M. Heines, New (1541) Sergeant Kenneth D. Hess, Asheville, (1585) Lance Corporal Luke B. Holler, Orleans, Louisiana; North Carolina; Bulverde, Texas; (1498) Private First Class Charles T. (1542) Private First Class Charles B. Hes- (1586) Specialist Matthew J. Holley, San Heinlein, Hemlock, Michigan; ter, Cataldo, Idaho; Diego, California; (1499) Lance Corporal Erik R. Heldt, Her- (1543) Private First Class Thomas J. Hew- (1587) Staff Sergeant Aaron N. Holleyman, mann, Missouri; ett, Temple, Texas; Glasgow, Montana; (1500) Staff Sergeant Brian R. Hellerman, (1544) Corporal Cory Michael Hewitt, Stew- (1588) Specialist Jaron D. Holliday, Tulsa, Freeport, Minnesota; art, Tennessee; Oklahoma; (1501) Sergeant Paul M. Heltzel, Baton (1545) Sergeant First Class Gregory B. (1589) Staff Sergeant Courtney Hollings- Rouge, Louisiana; Hicks, Duff, Tennessee; worth, Yonkers, New York; (1502) Staff Sergeant Terry Wayne Heming- (1546) Sergeant Glenn D. Hicks, Jr., College (1590) Staff Sergeant Lincoln Daniel way, Willingboro, New Jersey; Station, Texas; Hollinsaid, Malden, Illinois; (1503) Corporal Matthew C. Henderson, Lin- (1547) Lance Corporal Jon T. Hicks, Jr., (1591) Specialist Josiah W. Hollopeter, San coln, Nebraska; Atco, New Jersey; Diego, California; (1504) Chief Warrant Officer Miles P. Hen- (1548) Staff Sergeant Kristopher A. Higdon, (1592) Lance Corporal Matthew W. Hollo- derson, Amarillo, Texas; Odessa, Texas; way, Fulton, Texas; (1505) First Lieutenant Robert L. Hender- (1549) Lance Corporal James W. Higgins, (1593) Lance Corporal John M. Holmason, son II, Alvaton, Kentucky; Frederick, Maryland; Surprise, Arizona; (1506) Staff Sergeant Kenneth W. (1550) Sergeant Andrews J. Higgins, Hay- (1594) Specialist James J. Holmes, East Hendrickson, Bismarck, North Dakota; ward, California; Grand Forks, Minnesota; (1507) Specialist Robert T. Hendrickson, (1551) Specialist Thomas L. Hilbert, Venus, (1595) Lance Corporal Jeffery Scott Broken Bow, Oklahoma; Texas; Holmes, White River Junction, Vermont;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00096 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.091 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2463 (1596) Sergeant Jeremiah J. Holmes, North (1641) Corporal Jason Huffman, Conover, (1685) Airman First Class Elizabeth Nicole Berwick, Maine; North Carolina; Jacobson, Riviera Beach, Florida; (1597) Corporal Terry Holmes Ordo´ n˜ ez, Hol- (1642) First Lieutenant Doyle M. (1686) Petty Officer Second Class Jamie lywood, Florida; Hufstedler, Abilene, Texas; Jaenke, Bay City, Wisconsin; (1598) Airman First Class Antoine J. Holt, (1643) Staff Sergeant Jamie L. Huggins, (1687) Lance Corporal Saeed Jafarkhani- Kennesaw, Georgia; Hume, Missouri; Torshizi, Jr., Fort Worth, Texas; (1599) Corporal Paul C. Holter III, Corpus (1644) Sergeant Jonathan A. Hughes, Leb- (1688) First Sergeant Aaron Jagger, Hills- Christi, Texas; anon, Kentucky; dale, Michigan; (1600) Sergeant James J. Holtom, Rexburg, (1645) Specialist Rachael L. Hugo, Madison, (1689) Corporal Jesse Jaime, Henderson, Idaho; Wisconsin; Nevada; (1601) Lance Corporal Raymond J. (1646) Lance Corporal David A. Huhn, Port- (1690) Private First Class Alfred H. Jairala, Holzhauer, Dwight, Illinois; land, Michigan; Hialeah, Florida; (1602) Specialist Michael A. Hook, Altoona, (1647) Sergeant Eric R. Hull, Uniontown, (1691) Sergeant Grzegorz Jakoniuk, Schil- Pennsylvania; Pennsylvania; ler Park, Illinois; (1603) Private First Class Levi K. Hoover, (1648) Petty Officer First Class Thomas C. (1692) Chief Warrant Officer (CW2) Scott Midland, Michigan; Hull, Princeton, Illinois; Jamar, Granbury, Texas; (1604) Lance Corporal Brian C. Hopper, (1649) Sergeant Michael R. Hullender, Lit- (1693) Corporal Evan Tyler James, Han- Wynne, Arkansas; tle Falls, New Jersey; cock, Illinois; (1605) Private First Class Sean Horn, (1650) Specialist Joshua U. Humble, Apple- (1694) Sergeant Lindsey T. James, Urbana, Irvine, California; ton, Maine; Missouri; (1606) Master Sergeant Kelly L. Hornbeck, (1651) Corporal Barton R. Humlhanz, (1695) Second Lieutenant Luke S. James, Fort Worth, Texas; Hellertown, Pennsylvania; Oklahoma; (1607) Sergeant Manny Hornedo, Brooklyn, (1652) Private First Class Isaiah R. Hunt, (1696) Lance Corporal Richard Z. James, New York; Green Bay, Wisconsin; Seaford, Delaware; (1608) Sergeant Bruce E. Horner, Newport (1653) Sergeant Joseph Daniel Hunt, Sweet- (1697) Corporal William C. James, Hun- News, Virginia; water, Tennessee; tington Beach, California; (1609) Master Sergeant Robert M. Horrigan, (1654) Lance Corporal Justin T. Hunt, Riv- (1698) Lieutenant Colonel Leon G. James Austin, Texas; erside, California; II, Sackets Harbor, New York; (1610) Staff Sergeant Jeremy R. Horton, (1655) Master Sergeant Kenneth E. Hunt, (1699) Staff Sergeant Tricia L. Jameson, Erie, Pennsylvania; Jr., Tucson, Arizona; Omaha, Nebraska; (1611) Specialist Christopher L. Hoskins, (1656) Specialist Simeon Hunte, Essex, New (1700) Captain Benjamin D. Jansky, Osh- Danielson, Connecticut; Jersey; kosh, Wisconsin; (1612) Lance Corporal David B. Houck, Win- (1657) Sergeant Matthew D. Hunter, Valley (1701) Specialist Justin R. Jarrett, ston-Salem, North Carolina; Grove, West Virginia; Jonesboro, Georgia; (1613) Captain Andrew R. Houghton, Hous- (1658) First Lieutenant Joshua C. Hurley, (1702) Corporal Michael J. Jaurigue, Texas ton, Texas; Virginia; City, Texas; (1614) Sergeant Jessica M. Housby, Rock Is- (1659) Lance Corporal Seth Huston, (1703) Private First Class Allen B. Jaynes, land, Illinois; Perryton, Texas; Henderson, Texas; (1615) Petty Officer Third Class John Dan- (1660) Lance Corporal James B. Huston, Jr., (1704) Sergeant Moises Jazmine, Provi- iel House, Ventura, California; Umatilla, Oregon; dence, Rhode Island; (1616) Sergeant Joel A. House, Lee, Maine; (1661) Private Nolen Ryan Hutchings, Boil- (1705) Sergeant Brahim J. Jeffcoat, Phila- (1617) Sergeant Thomas E. Houser, Council ing Springs, South Carolina; delphia, Pennsylvania; Bluffs, Iowa; (1662) Private First Class Ray J. Hutch- (1706) Petty Officer First Class Victor W. (1618) Staff Sergeant John R. Howard, Cov- inson, League City, Texas; Jeffries, Honolulu, Hawaii; ington, Virginia; (1663) Private First Class Gregory Paul (1707) Sergeant Edmund J. Jeffers, (1619) Staff Sergeant Curtis T. Howard II, Huxley, Jr., Forestport, New York; Daleville, Alabama; Ann Arbor, Michigan; (1664) Specialist Nicholas R. Idalski, Crown (1708) Specialist William Andrew Jeffries, (1620) Corporal Walter B. Howard II, Roch- Point, Indiana; Evansville, Indiana; ester, Michigan; (1665) Sergeant Michael J. Idanan, Chula (1709) Staff Sergeant Gary W. Jeffries, Ros- (1621) Sergeant William R. Howdeshell, Vista, California; coe, Texas; Norfolk, Virginia; (1666) Staff Sergeant Thor H. Ingraham, (1710) Staff Sergeant Kenneth A. Jenkins, (1622) Sergeant First Class Casey E. Howe, Murrysville, Pennsylvania; Fouke, Arkansas; Philadelphia, New York; (1623) Specialist Darren D. Howe, Beatrice, (1667) Captain Rowdy J. Inman, Panorama (1711) Petty Officer Second Class Robert B. Nebraska; Village, Texas; Jenkins, Stuart, Florida; (1624) Private First Class George J. Howell, (1668) Staff Sergeant Henry E. Irizarry, (1712) Sergeant Troy David Jenkins, Salinas, California; Bronx, New York; Ridgecrest, California; (1625) Specialist Alun R. Howells, Parlin, (1669) Sergeant Benjamin W. Isenberg, (1713) Private First Class Rush M. Jenkins, Colorado; Sheridan, Oregon; Clarksville, Tennessee; (1626) Lance Corporal Blake H. Howey, (1670) Staff Sergeant Daniel Isshak, Alta (1714) Specialist Darius T. Jennings, Cor- Glendora, California; Loma, California; dova, South Carolina; (1627) Lance Corporal Gregory C. Howman, (1671) Specialist Craig S. Ivory, Port Ma- (1715) Captain Drew N. Jensen, Clackamas, Charlotte, North Carolina; tilda, Pennsylvania; Oregon; (1628) Private First Class Bert Edward (1672) Staff Sergeant Kendall H. Ivy II, (1716) Private First Class Ryan M. Jerabek, Hoyer, Ellsworth, Wisconsin; Crawford, Ohio; Oneida, Wisconsin; (1629) Specialist Robert W. Hoyt, Ashford, (1673) First Lieutenant Edward D. Iwan, (1717) Master Sergeant Ivica Jerak, Hous- Connecticut; Albion, Nebraska; ton, Texas; (1630) Specialist Hai Ming Hsia, New York, (1674) Private First Class Kenneth J. (1718) Staff Sergeant Kevin P. Jessen, New York; Iwasinski, West Springfield, Massachusetts; Paragould, Arkansas; (1631) Lance Corporal Jared P. Hubbard, (1675) Specialist Derence W. Jack, Saipan, (1719) Specialist Steven R. Jewell, Bridge- Clovis, California; Northern Mariana Islands; ton, North Carolina; (1632) Lance Corporal Tavon L. Hubbard, (1676) Lieutenant Commander Edward E. (1720) Sergeant Linda C. Jimenez, Brook- Reston, Virginia; Jack, Detroit, Michigan; lyn, New York; (1633) Corporal Nathan C. Hubbard, Clovis, (1677) Chief Warrant Officer (CW2) Kyle E. (1721) First Lieutenant Oscar Jimenez, San California; Jackson, Sarasota, Florida; Diego, California; (1634) Specialist Corey A. Hubbell, Urbana, (1678) Private First Class Leslie D. Jack- (1722) Corporal Romulo J. Jimenez II, Illinois; son, Richmond, Virginia; Miami, Florida; (1635) Staff Sergeant Darren P. Hubbell, (1679) Specialist Marlon P. Jackson, Jersey (1723) Sergeant Andrew R. Jodon, Tifton, Georgia; City, New Jersey; Karthaus, Pennsylvania; (1636) Private Aaron M. Hudson, Highland (1680) Specialist Dustin C. Jackson, Arling- (1724) Private Adam R. ‘‘A.J.’’ Johnson, Village, Texas; ton, Texas; Clayton, Ohio; (1637) Private First Class Christopher E. (1681) Staff Sergeant William Samuel Jack- (1725) Major Alan R. Johnson, Yakima, Hudson, Carmel, Indiana; son II, Saginaw, Michigan; Washington; (1638) Staff Sergeant Sean P. Huey, (1682) Lance Corporal Jeriad P. Jacobs, (1726) Captain Christopher B. Johnson, Ex- Fredericktown, Pennsylvania; Clayton, North Carolina; celsior Springs, Missouri; (1639) First Lieutenant Ashley L. Hender- (1683) Specialist Morgen N. Jacobs, Santa (1727) Sergeant David W. Johnson, Port- son, Huff Belle Mead, New Jersey; Cruz, California; land, Oregon; (1640) Private First Class Sam W. Huff, (1684) Captain William W. Jacobsen, Jr., (1728) Corporal Jeremiah Johnson, Van- Tucson, Arizona; Charlotte, North Carolina; couver, Washington;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00097 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.091 S03APPT1 ccoleman on PRODPC75 with SENATE S2464 CONGRESSIONAL RECORD — SENATE April 3, 2008 (1729) Specialist John P. Johnson, Houston, (1773) Sergeant Ryan D. Jopek, Merrill, (1817) Corporal Brian Matthew Kennedy, Texas; Wisconsin; Houston, Texas; (1730) Sergeant Joshua Allen Johnson, (1774) Petty Officer Second Class Brian K. (1818) Chief Warrant Officer (CW3) Kyran E. Richford, Vermont; Joplin, Hugo, Oklahoma; Kennedy, Boston, Massachusetts; (1731) Specialist Justin W. Johnson, Rome, (1775) Corporal Alexander Jordan, Miami, (1819) Sergeant First Class Stephen C. Ken- Georgia; Florida; nedy, Oak Ridge, Tennessee; (1732) Private Lavena L. Johnson, (1776) Sergeant Jason D. Jordan, Elba, Ala- (1820) Staff Sergeant Morgan DeShawn Florissant, Missouri; bama; Kennon, Memphis, Tennessee; (1733) Sergeant Leon M. Johnson, Jackson- (1777) Petty Officer First Class Michael An- (1821) First Lieutenant Christopher J. ville, Florida; thony Jordan, Augusta, Georgia; Kenny, Miami, Florida; (1734) Private First Class Markus J. John- (1778) Staff Sergeant Phillip Andrew Jor- (1822) Lance Corporal Patrick Brian Kenny, son, Springfield, Massachusetts; dan, Brazoria, Texas; Pittsburgh, Pennsylvania; (1735) Specialist Maurice J. Johnson, Levit- (1779) Sergeant Curt E. Jordan, Jr., Green (1823) Specialist Joseph P. Kenny, Veneta, town, Pennsylvania; Acres, Washington; Oregon; (1736) Specialist Nathaniel H. Johnson, Au- (1780) Private First Class Ron J. Joshua, (1824) Seaman Aaron A. Kent, Portland, Or- gusta, Georgia; Jr., Austin, Texas; egon; (1737) Staff Sergeant Paul J. Johnson, Cal- (1781) Corporal Forest Joseph Jostes, (1825) Hospitalman Chadwick Thomas umet, Michigan; Albion, Illinois; Kenyon, Tucson, Arizona; (1738) Lance Corporal Philip A. Johnson, (1782) Staff Sergeant David D. Julian, (1826) Chief Warrant Officer (CW3) Rex C. Hartford, Connecticut; Evanston, Wyoming; Kenyon, El Segundo, California; (1739) Private First Class Rayshawn S. (1783) Private First Class Dillon M. Jutras, (1827) Specialist Jonathan Roy Kephart, Johnson, Brooklyn, New York; Fairfax Station, Virginia; Oil City, Pennsylvania; (1740) Staff Sergeant Robert S. Johnson, (1784) Sergeant First Class Matthew R. (1828) Corporal Dallas L. Kerns, Mountain Castro Valley, California; Kading, Madison, Wisconsin; Grove, Missouri; (1741) Specialist Robert T. Johnson, Erwin, (1785) Staff Sergeant Henry K. Kahalewai, (1829) Specialist James C. Kesinger, Pharr, North Carolina; Hilo, Hawaii; Texas; (1742) Lance Corporal Stephen F. Johnson, (1786) Lance Corporal Adam Wade Kaiser, (1830) Corporal Jason M. Kessler, Mount Marietta, Georgia; Naperville, Illinois; Vernon, Washington; (1743) Corporal Stephen P. Johnson, Co- (1787) Private First Class Anthony A. Kai- (1831) Chief Warrant Officer Erik C. vina, California; ser, Narrowsburg, New York; Kesterson, Independence, Oregon; (1744) Corporal Ty J. Johnson, Elk Grove, (1788) Sergeant Anthony N. Kalladeen, Pur- (1832) Captain Humayun S. M. Khan, California; chase, New York; Bristow, Virginia; (1745) Sergeant First Class Randy L. John- (1789) Specialist Vincent G. Kamka, Ever- (1833) Corporal Kareem R. Khan, son, Washington, District of Columbia; ett, Washington; Manahawkin, New Jersey; (1746) Specialist Rodney J. Johnson, Hous- (1790) Specialist Alain L. Kamolvathin, (1834) Corporal Mark D. Kidd, Milford, ton, Texas; Blairstown, New Jersey; Michigan; (1747) Chief Warrant Officer Christopher C. (1791) Staff Sergeant Joseph M. Kane, (1835) Staff Sergeant Ricky A. Kieffer, Johnson, Michigan; Darby, Pennsylvania; Ovid, Michigan; (1748) Sergeant Courtney T. Johnson, Gar- (1792) Sergeant Brian C. Karim, Talcott, (1836) Specialist James Michael Kiehl, ner, North Carolina; West Virginia; Comfort, Texas; (1749) Private William C. Johnson, Oxford, (1793) Specialist Spencer Timothy Karol, (1837) Lance Corporal Shane E. Kielion, La North Carolina; Woodruff, Arizona; Vista, Nebraska; (1750) Corporal Carl W. Johnson II, Phila- (1794) Staff Sergeant Edward Karolasz, (1838) Staff Sergeant Christopher S. delphia, Pennsylvania; Powder Springs, New Jersey; Kiernan, Virginia Beach, Virginia; (1751) Private First Class Howard Johnson (1795) Sergeant First Class Paul D. (1839) Private First Class Christopher R. II, Mobile, Alabama; Karpowich, Bridgeport, Pennsylvania; Kilpatrick, Columbus, Texas; (1752) Hospital Corpsman Third Class Mi- (1796) Specialist Michael G. Karr, Jr., San (1840) Lance Corporal Andrew J. Kilpela, chael Vann Johnson, Jr., Little Rock, Ar- Antonio, Texas; Fowlerville, Michigan; kansas; (1797) Specialist Mark Joseph Kasecky, (1841) Corporal In C. Kim, Warren, Michi- (1753) Chief Warrant Officer Philip A. John- McKees Rocks, Pennsylvania; gan; son, Jr., Mobile, Alabama; (1798) Sergeant Michael M. Kashkoush, (1842) Private First Class Jang H. Kim, (1754) Sergeant Gary S. Johnston, Chagrin Falls, Ohio; Placentia, California; Windthorst, Texas; (1755) Staff Sergeant Jude R. Jonaus, (1799) Private First Class Douglas E. (1843) Private Jeungjin Na ‘‘Nikky’’ Kim, Miami, Florida; Kashmer, Sharon, Pennsylvania; Honolulu, Hawaii; (1756) Sergeant Anthony G. Jones, Green- (1800) Staff Sergeant Darrel D. Kasson, (1844) Lance Corporal Kun Y. Kim, Atlanta, ville, South Carolina; Florence, Arizona; Georgia; (1757) Sergeant First Class Charles Jason (1801) Specialist Hatim S. Kathiria, Fort (1845) Specialist Louis G. Kim, West Co- Jones, Lawrenceburg, Kentucky; Worth, Texas; vina, California; (1758) Chief Warrant Officer Charles S. (1802) Specialist Charles A. Kaufman, Fair- (1846) Lance Corporal Minhee Kim, Ann Jones, Lawtey, Florida; child, Wisconsin; Arbor, Michigan; (1759) Lance Corporal Derek W. Jones, (1803) Private Eric Kavanagh, Glen Burnie, (1847) Sergeant Shin W. Kim, Fullerton, Salem, Oregon; Maryland; California; (1760) Private Devon Demilo Jones, San (1804) Second Lieutenant Jeffrey Joseph (1848) Staff Sergeant Dexter S. Kimble, Diego, California; Kaylor, Clifton, Virginia; Houston, Texas; (1761) Captain Gussie M. Jones, Shreveport, (1805) Lance Corporal Thomas O. Keeling, (1849) Private First Class Danny L. Kimme, Louisiana; Strongsville, Ohio; Fisher, Illinois; (1762) Corporal Jeremy Jones, Millard, Ne- (1806) Sergeant Chad L. Keith, Batesville, (1850) Staff Sergeant Matthew A. Kimmell, braska; Indiana; Paxton, Indiana; (1763) Corporal Joshua D. Jones, Pomeroy, (1807) Lance Corporal Quinn A. Keith, (1851) Staff Sergeant Kevin C. Kimmerly, Ohio; Page, Arizona; North Creek, New York; (1764) Corporal Kevin M. Jones, Wash- (1808) Lance Corporal Bryan P. Kelly, (1852) Private First Class Kenneth E. ington, North Carolina; Klamath Falls, Oregon; Kincaid IV, Lilburn, Georgia; (1765) Sergeant Rickey E. Jones, Kokomo, (1809) Colonel Paul M. Kelly, Stafford, Vir- (1853) Lance Corporal Jeremiah C. Kinchen, Indiana; ginia; Salcha, Alaska; (1766) Specialist Robert L. Jones, Mil- (1810) Corporal Sean P. Kelly, Pitman, New (1854) Specialist Levi B. Kinchen, Tickfaw, waukee, Oregon; Jersey; Louisiana; (1767) Specialist Rodney A. Jones, Philadel- (1811) Staff Sergeant Dale James Kelly, Jr., (1855) Staff Sergeant Bradley D. King, Mar- phia, Pennsylvania; Richmond, Maine; ion, Indiana; (1768) First Lieutenant Ryan P. Jones, (1812) Sergeant Samuel E. Kelsey, Troup, (1856) First Sergeant Charles M. King, Mo- Westminster, Massachusetts; Texas; bile, Alabama; (1769) Private First Class Roy L. Jones III, (1813) Corporal Andrew J. Kemple, Cam- (1857) Specialist Eric D. King, Vancouver, Houston, Texas; bridge, Minnesota; Washington; (1770) Staff Sergeant Raymond Edison (1814) Corporal Dustin L. Kendall, Conway, (1858) Sergeant Jeremy E. King, Meridian, Jones, Jr., Gainesville, Florida; Arkansas; Idaho; (1771) Staff Sergeant David R. Jones, Sr., (1815) Sergeant Courtland A. Kennard, (1859) Specialist Jerry R. King, Augusta, Georgia; Starkville, Mississippi; Browersville, Georgia; (1772) Lieutenant Kylan A. Jones-Huffman, (1816) Sergeant Adam P. Kennedy, Norfolk, (1860) Corporal Paul N. King, Tyngsboro, Aptos, California; Massachusetts; Massachusetts;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00098 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.091 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2465 (1861) Sergeant Jonathan P. C. Kingman, (1905) Private First Class Cory C. Kosters, (1949) Private First Class James P. Lam- Nankin, Ohio; The Woodlands, Texas; bert, New Orleans, Louisiana; (1862) Sergeant James Ondra Kinlow, (1906) Petty Officer Second Class Edward A (1950) Sergeant Jonathan W. Lambert, Thompson, Georgia; Koth, Towson, Maryland; Newsite, Mississippi; (1863) Staff Sergeant Lester O. Kinney II, (1907) Specialist Jason B. Koutroubas, (1951) Specialist David E. Lambert, Cedar Zanesville, Ohio; Dunnellon, Florida; Bluff, Virginia; (1864) Specialist Anthony D. Kinslow, (1908) Lance Corporal Ryan J. Kovacicek, (1952) Specialist James I. Lambert III, Ra- Westerville, Ohio; Washington, Pennsylvania; leigh, North Carolina; (1865) Sergeant William S. Kinzer, Jr., Hen- (1909) Specialist Stephen M. Kowalczyk, (1953) Sergeant Gene L. Lamie, Homerville, dersonville, North Carolina; San Diego, California; Georgia; (1866) Private First Class David M. Kirch- (1910) Lance Corporal Jakub Henryk (1954) Captain Andrew David LaMont, Eu- hoff, Anamosa, Iowa; Kowalik, Schaumburg, Illinois; reka, California; (1867) Sergeant Jeffrey L. Kirk, Baton (1911) Sergeant Elmer C. Krause, Greens- (1955) Sergeant Andrew W. Lancaster, Rouge, Louisiana; boro, North Carolina; Stockton, Illinois; (1868) Lance Corporal Johnathan E. Kirk, (1912) Private First Class Travis C. Krege, (1956) First Lieutenant Jared M. Landaker, Belhaven, North Carolina; Cheektowaga, New York; Big Bear City, California; (1869) Private First Class David Austin (1913) Private Dustin L. Kreider, Riverton, (1957) Captain Kevin C. Landeck, Wheaton, Kirkpatrick, Upland, Indiana; Kansas; Illinois; (1870) Sergeant Scott L. Kirkpatrick, Res- (1914) Lance Corporal Jared J. Kremm; (1958) Staff Sergeant Sean G. Landrus, ton, Virginia; Hauppage, New York; Thompson, Ohio; (1871) Staff Sergeant Charles A. Kiser, (1915) Corporal David Kenneth J. Kreuter, (1959) Specialist Joseph N. Landry III, Cleveland, Wisconsin; Cincinnati, Ohio; Pensacolam, Florida; (1872) Sergeant Timothy Craig Kiser, (1916) First Lieutenant Nathan M. Krissoff, (1960) Private First Class John F. Landry, Tehama, California; Nevada; Jr., Lowell, Massachusetts; (1873) Specialist Rhys W. Klasno, Riverside, (1917) Sergeant Tyler J. Kritz, Eagle River, (1961) Gunnery Sergeant Shawn A. Lane, California; Wisconsin; Corning, New York; (1874) Lance Corporal Nicholas Brian (1918) Private First Class Bradley G. (1962) Specialist David J. Lane, Emporia, Kleiboeker, Irvington, Illinois; Kritzer, Irvona, Pennsylvania; Kansas; (1875) Lance Corporal Allan Klein, Clinton (1919) Specialist Kurt E. Krout, (1963) Corporal Victor M. Langarica, Deca- Township, Michigan; Spinnerstown, Pennsylvania; tur, Georgia; (1876) Sergeant Keith A. Kline, Oak Harbor, (1920) Lieutenant Colonel Eric J. Kruger, (1964) Private First Class Richard P. Ohio; Garland, Texas; Langenbrunner, Fort Wayne, Indiana; (1877) Specialist John K. Klinesmith, Jr., (1921) Sergeant Christopher R. Kruse, Em- (1965) Private First Class Moises A. Stockbridge, Georgia; poria, Kansas; Langhorst, Moose Lake, Minnesota; (1878) Private First Class Joshua P. (1922) Captain Kevin M. Kryst, West Bend, (1966) Lance Corporal Sean M. Langley, Klinger, Easton, Pennsylvania; Wisconsin; Lexington, Kentucky; (1879) Sergeant First Class Tony L. Knier, (1923) Corporal Jared William Kubasak, (1967) Sergeant First Class Steven M. Sabinsville, Pennsylvania; Rocky Mount, Virginia; Langmack, Seattle, Washington; (1880) Corporal Timothy A. Knight, Brook- (1924) Private First Class Christopher D. (1968) Lieutenant Commander Jane Eliza- lyn, Ohio; Kube, Sterling Heights, Michigan; beth Lanham, Owensboro, Kentucky; (1881) Sergeant Floyd G. Knighten, Jr., (1925) Private First Class Brian J. Kubik, (1969) Command Sergeant Major Jonathan Olla, Louisiana; Hardin, Texas; M. Lankford, Scottsboro, Alabama; (1882) Private First Class Garrett C. Knoll, (1926) Staff Sergeant David C. Kuehl, (1970) Sergeant Denise A. Lannaman, Bad Axe, Michigan; Wahpeton, North Dakota; Bayside, New York; (1883) Specialist Allen J. Knop, Willowick, (1927) Staff Sergeant Matthew J. Kuglics, (1971) Sergeant Jason M. Lantieri, Ohio; North Canton, Ohio; Killingsworth, Connecticut; (1884) Petty Officer Third Class Eric L. (1928) Civilian Daniel J. Kuhlmeier, (1972) Staff Sergeant Jose A. Lanzarin, Knott, Grand Island, Nebraska; Omaha, Nebraska; Lubbock, Texas; (1885) Private Joseph L. Knott, Yuma, Ari- (1929) Sergeant Larry R. Kuhns, Jr., (1973) Corporal Stanley J. Lapinski, Las zona; Austintown, Ohio; Vegas, Nevada; (1886) Specialist Joshua L. Knowles, Shef- (1930) Specialist John Kulick, Harleysville, (1974) Corporal Christopher J. Lapka, Peo- field, Iowa; Pennsylvania; ria, Arizona; (1887) Sergeant Adam L. Knox, Columbus, (1931) Captain John F. ‘‘Hans’’ Kurth, Co- (1975) Specialist Tracy L. Laramore, Ohio; lumbus, Wisconsin; Okaloosa, Florida; (1888) Sergeant Rene Knox, Jr., New Orle- (1932) Sergeant Russell A. Kurtz, Bethel (1976) Sergeant Bryan W. Large, Cuyahoga ans, Louisiana; Park, Pennsylvania; Falls, Ohio; (1889) Specialist Brent W. Koch, Morton, (1933) Corporal Joshua J. Kynoch, Santa (1977) Private First Class Cole W. Larsen, Minnesota; Rosa, California; Canyon Country, California; (1890) Specialist Matthew A. Koch, West (1934) Sergeant First Class William W. (1978) Lance Corporal Nicholas D. Larson, Henrietta, New York; Labadie, Jr., Bauxite, Arkansas; Wheaton, Illinois; (1891) Chief Petty Officer Michael E. Koch, (1935) Major Douglas A. LaBouff, La (1979) Specialist Scott Quentin Larson, Jr., State College, Pennsylvania; Puente, California; Houston, Texas; (1892) Corporal Gary A. Koehler, Ypsilanti, (1936) Sergeant Reno S. Lacerna, Waipahu, (1980) Chief Warrant Officer Matthew C. Michigan; Hawaii; Laskowski, Phoenix, Arizona; (1893) Staff Sergeant Lance J. Koenig, (1937) Sergeant Joshua S. Ladd, Port Gib- (1981) Corporal Michael H. Lasky, Sterling, Fargo, North Dakota; son, Mississippi; Alaska; (1894) Sergeant Allen D. Kokesh, Jr., (1938) Corporal Jason K. Lafleur, Ignacio, (1982) Corporal Shawn Thomas Lasswell, Yankton, South Dakota; Colorado; Jr., Reno, Nevada; (1895) Corporal Alexander J. Kolasa, White (1939) Corporal Matthew P. LaForest, Aus- (1983) Sergeant Thomas L. Latham, Lake, Michigan; tin, Texas; Delmar, Maryland; (1896) Sergeant First Class Obediah J. (1940) Corporal Johnathan A. Lahmann, (1984) Staff Sergeant William T. Latham, Kolath, Louisburg, Missouri; Richmond, Indiana; Kingman, Arizona; (1897) Corporal Zachary A. Kolda, Corpus (1941) Sergeant Dustin D. Laird, Martin, (1985) Specialist Aaron P. Latimer, Ennis, Christi, Texas; Tennessee; Texas; (1898) Corporal Kevin T. Kolm, Hicksville, (1942) Sergeant Chad W. Lake, Ocala, Flor- (1986) Staff Sergeant Paul M. Latourney, New York; ida; Roselle, Illinois; (1899) Petty Officer Second Class Charles V. (1943) Staff Sergeant Floyd E. Lake, St. (1987) Private First Class Karina S. Lau, Komppa, Belgrade, Montana; Thomas, Virgin Islands; Livingston, California; (1900) Specialist Martin W. Kondor, York, (1944) Sergeant Michael Vernon Lalush, (1988) Specialist Timothy J. Lauer, Pennsylvania; Troutville, Virginia; Saegertown, Pennsylvania; (1901) Lance Corporal William C. Koprince, (1945) Lance Corporal Alan Dinh Lam, (1989) Private First Class Casey M. LaWare, Jr., Lenoir City, Tennessee; Snow Camp, North Carolina; Redding, California; (1902) Chief Warrant Officer Patrick W. (1946) Lance Corporal Jeffrey Lam, Queens, (1990) Corporal Jeffrey D. Lawrence, Tuc- Kordsmeier, North Little Rock, Arkansas; New York; son, Arizona; (1903) Captain Edward Jason Korn, Savan- (1947) Specialist Charles R. Lamb, Casey, (1991) Specialist Issac S. Lawson, Sac- nah, Georgia; Illinois; ramento, California; (1904) Sergeant Bradley Steven Korthaus, (1948) Sergeant First Class Randall L. (1992) Staff Sergeant Mark A. Lawton, Scott, Iowa; Lamberson, Springfield, Missouri; Hayden, Colorado;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00099 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.091 S03APPT1 ccoleman on PRODPC75 with SENATE S2466 CONGRESSIONAL RECORD — SENATE April 3, 2008 (1993) Lance Corporal Travis J. Layfield, (2037) Private First Class Robert A. (2081) Lance Corporal Hilario F. Lopez, Fremont, California; Liggett, Urbana, Illinois; Ingleside, Texas; (1994) Sergeant Benjamin J. Laymon, (2038) Corporal Robbie Glen Light, Kings- (2082) Lance Corporal Juan Lopez, Mount Vernon, Ohio; port, Tennessee; Whitfield, Georgia; (1995) Corporal Binh N. Le, Alexandria, Vir- (2039) Sergeant Nicholas J. Lightner, New- (2083) Corporal Manuel Lopez III, Cape ginia; port, Oregon; Coral, Florida; (1996) Chief Warrant Officer Patrick D. (2040) Staff Sergeant Daniel R. Lightner, (2084) Lance Corporal Edwardo Lopez, Jr., Leach, Rock Hill, South Carolina; Jr., Hollidaysburg, Pennsylvania; Aurora, Illinois; (1997) Specialist Jeff LeBrun, Buffalo, New (2041) Sergeant Eric A. Lill, Chicago, Illi- (2085) Corporal Juan M. Lopez, Jr., San An- York; nois; tonio, Texas; (1998) Specialist Daniel A. Leckel, Medford, (2042) Staff Sergeant Henry W. Linck, Man- (2086) Lance Corporal Hugo R. Lopezlopez, Oregon; hattan, Kansas; La Habra, California; (1999) Staff Sergeant Rene Ledesma, Abi- (2043) Staff Sergeant Jonh D. Linde, New (2087) Specialist William Lopez-Feliciano, lene, Texas; York, New York; Quebradillas, Puerto Rico; (2000) Corporal Michael C. Ledsome, Aus- (2044) Corporal Michael B. Lindemuth, (2088) Sergeant Jason Lopezreyes, Hatillo, tin, Texas; Petoskey, Michigan; Puerto Rico; (2001) Second Lieutenant Ryan Leduc, (2045) Specialist Justin W. Linden, Port- (2089) Sergeant Richard M. Lord, Jackson- Pana, Illinois; land, Oregon; ville, Florida; (2002) Corporal Bumrok Lee, Sunnyvale, (2046) Corporal Troy Carlin Linden, Detroit (2090) Second Lieutenant Christopher E. California; Lakes, Minnesota; Loudon, Brockport, Pennsylvania; (2003) Sergeant Carl W. Lee, Oklahoma (2047) Specialist Darryl W. Linder, Hick- (2091) Chief Warrant Officer (CW4) Matthew City, Oklahoma; ory, North Carolina; Scott Lourey, East Bethel, Minnesota; (2004) Corporal Dustin Jerome Lee, (2048) Specialist James T. Lindsey, Flor- (2092) First Lieutenant Scott M. Love, Quitman, Mississippi; ence, Alabama; Knoxville, Tennessee; (2005) Petty Officer Second Class Marc A. (2049) Lance Corporal David Paul Lindsey, (2093) Staff Sergeant Robert L. Love, Jr., Lee, Hood River, Oregon; Spartanburg, South Carolina; Livingston, Mississippi; (2006) Specialist Qixing Lee, Minneapolis, (2050) Specialist Roger G. Ling, (2094) Private First Class Joseph I. Love- Minnesota; Douglaston, New York; Fowler, North Pole, Alaska; (2007) Private First Class Samuel S. Lee, (2051) Technical Sergeant Joey D. Link, (2095) Corporal Jeremy M. Loveless, Anaheim, California; Portland, Tennessee; Estacada, Oregon; (2008) Corporal Jason T. Lee, Fruitport, (2052) Lance Corporal Karl R. Linn, Ches- (2096) Sergeant First Class Jonathan A. Michigan; terfield, Virginia; Lowery, Houlton, Maine; (2009) Sergeant Terrance D. Lee, Sr., Moss (2053) Sergeant Terry Lisk, Fox Lake, Illi- (2097) Staff Sergeant David L. Loyd, Jack- Point, Mississippi; nois; son, Tennessee; (2010) Private First Class Thomas R. (2054) Specialist Joseph L. Lister, (2098) Sergeant Angelo L. Lozada, Jr., Leemhuis, Binger, Oklahoma; Pleasanton, Kansas; Brooklyn, New York; (2011) Staff Sergeant Emmanuel L. (2055) Lance Corporal Jason T. Little, Cli- (2099) Lance Corporal Victor R. Lu, Los Legaspi, Las Vegas, Nevada; max, Michigan; Angeles, California; (2012) Specialist Damon G. LeGrand, Lake- (2056) Specialist Kyle A. Little, West (2100) Lance Corporal Adam Lucas, Greens- side, California; Boylston, Massachusetts; boro, North Carolina; (2013) Staff Sergeant Jason A. Lehto, (2057) Staff Sergeant Tommy S. Little, (2101) Specialist Joseph Alan Lucas, Au- Mount Clemens, Michigan; Aliceville, Alabama; gusta, Georgia; (2014) Staff Sergeant Hector Leija, Hous- (2058) Staff Sergeant Nino Dugue (2102) Lance Corporal John A. ‘‘JT’’ ton, Texas; Livaudais, Syracuse, Utah; Lucente, Grass Valley, California; (2015) Private First Class Ken W. Leisten, (2059) Sergeant Dale Thomas Lloyd, (2103) Lance Corporal Joshua E. Lucero, Cornelius, Oregon; Watsontown, Pennsylvania; Tucson, Arizona; (2016) Corporal Jason F. Lemke, West Allis, (2060) Staff Sergeant Michael C. Lloyd, San (2104) Captain Robert L. Lucero, Casper, Wisconsin; Antonio, Texas; Wyoming; (2017) Staff Sergeant Jerome Lemon, North (2061) Private First Class Keith E. Lloyd, (2105) Sergeant Bryan C. Luckey, Tampa, Charleston, South Carolina; Milwaukee, Wisconsin; Florida; (2018) Specialist Cedric Lamont Lennon, (2062) Staff Sergeant Jeffrey S. Loa, (2106) Private First Class Jason C. Ludlam, West Blocton, Alabama; Waianae, Hawaii; Arlington, Texas; (2019) Corporal Christopher D. Leon, Lan- (2063) Staff Sergeant Kenneth E. Locker, (2107) Corporal Eric R. Lueken, Dubois, In- caster, California; Jr., Wakefield, Nebraska; diana; (2020) Specialist Charles E. Leonard, Jr., (2064) Colonel Jon M. Lockey, Fredericks- (2108) Private First Class Caleb A. Lufkin, Monroe, Louisiana; burg, Virginia; Knoxville, Illinois; (2021) Private First Class Jesus A. Leon- (2065) Sergeant Velton Locklear III, Lacey, (2109) Lance Corporal Jacob R. Lugo, Flow- Perez, Houston, Texas; Washington; er Mound, Texas; (2022) Captain Brian S. Letendre, (2066) Lance Corporal Adam Loggins, Ath- (2110) Private First Class John Lukac, Las Woodbridge, Virginia; ens, Alabama; Vegas, Nevada; (2023) Specialist Farao K. Letufuga, Pago (2067) Senior Airman Elizabeth A. Loncki, (2111) Private First Class Kevin M. Luna, Pago, American Samoa; New Castle, Delaware; Oxnard, California; (2024) Lance Corporal William J. Leusink, (2068) Sergeant Daniel J. Londono, Boston, (2112) Specialist James E. Lundin, Bellport, Maurice, Iowa; Massachusetts; New York; (2025) Sergeant Adrian J. Lewis, Mauldin, (2069) Corporal Jonerik Loney, Hartselle, (2113) Corporal Brett L. Lundstrom, Staf- South Carolina; Alabama; ford, Virginia; (2026) Staff Sergeant Bryan A. Lewis, (2070) Lance Corporal Bunny Long, Mo- (2114) Sergeant Audrey Daron Lunsford, Bunkie, Louisiana; desto, California; Sardis, Mississippi; (2027) Staff Sergeant Dwayne Peter R. (2071) Lance Corporal Jeremy Z. Long, Sun (2115) Captain Joe Fenton Lusk II, Reedley, Lewis, New York, New York; Valley, Nevada; California; (2028) Sergeant Joel W. Lewis, Sandia (2072) Specialist Ryan Patrick Long, (2116) Sergeant Derrick Joseph Lutters, Park, New Mexico; Seaford, Delaware; Burlington, Colorado; (2029) Sergeant Mason L. Lewis, Glouces- (2073) Corporal William A. Long, Lilburn, (2117) Private First Class George Anthony ter, Virginia; Georgia; ‘‘Tony’’ Lutz II, Virginia Beach, Virginia; (2030) Petty Officer First Class Jason Dale (2074) Specialist Zachariah W. Long, Mil- (2118) Specialist Wai Pyoe Lwin, Queens, Lewis, Brookfield, Connecticut; ton, Pennsylvania; New York; (2031) Private First Class Lee A. Lewis, Jr., (2075) Specialist Braden J. Long, Sherman, (2119) Captain Sean E. Lyerly, Pflugerville, Norfolk, Virginia; Texas; Texas; (2032) Sergeant Jesse M. Lhotka, Alexan- (2076) Staff Sergeant Brian M. Long, Burns, (2120) Private First Class Jason N. Lynch, dria, Minnesota; Wyoming; St. Croix, Virgin Islands; (2033) Corporal Dustin J. Libby, Presque (2077) Corporal John M. Longoria, Nixon, (2121) First Lieutenant Matthew D. Lynch, Isle, Maine; Texas; Jericho, New York; (2034) Second Lieutenant Michael L. (2078) Private First Class Duane E. (2122) Lance Corporal Robert A. Lynch, Licalzi, Garden City, New York; Longstreth, Tacoma, Washington; Louisville, Kentucky; (2035) Staff Sergeant Wilgene T. Lieto, (2079) Sergeant Jonathan E. Lootens, (2123) Lance Corporal Christopher P. Saipan, Northern Mariana Islands; Lyons, New York; Lyons, Mansfield/Shelby, Ohio; (2036) Staff Sergeant Victoir P. Lieurance, (2080) Sergeant Edgar E. Lopez, Los Ange- (2124) First Lieutenant James N. Lyons, Seymour, Tennessee; les, California; Rochester, New York;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00100 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.092 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2467 (2125) Private First Class Christopher D. (2170) Staff Sergeant Paul C. Mardis, Jr. (2214) Lance Corporal Philip John Martini, Mabry, Chunky, Mississippi; Palmetto, Florida; Lansing, Illinois; (2126) Lance Corporal Gregory E. Mac- (2171) Corporal Douglas Jose Marencoreyes, (2215) Captain Michael D. Martino, Fairfax, Donald, Washington, District of Columbia; Chino, California; Virginia; (2127) Lance Corporal Cesar F. Machado- (2172) Specialist Jeremy E. Maresh, Penn (2216) Specialist Jacob D. Martir, Norwich, Olmos, Spanish Fork, Utah; Forest Township, Pennsylvania; Connecticut; (2128) Lance Corporal Fred L. Maciel, (2173) Master Sergeant Jude C. Mariano, (2217) Gunnery Sergeant Justin R. Spring, Texas; Vallejo, California; Martone, Bedford, Virginia; (2129) Sergeant First Class Brian A. Mack, (2174) Private Robbie M. Mariano, Stock- (2218) Sergeant Michael A. Marzano, Green- Phoenix, Arizona; ton, California; ville, Pennsylvania; (2130) Master Sergeant Kenneth N. Mack, (2175) Sergeant Javier Marin, Jr., Mission, (2219) Staff Sergeant Ryan D. Maseth, Fort Worth, Texas; Texas; Pittsburgh, Pennsylvania; (2131) Private First Class Vorn J. Mack, (2176) Lance Corporal Jose S. Marin- (2220) Corporal Chris Mason, Mobile, Ala- Orangeburg, South Carolina; Dominguez, Jr., Liberal, Kansas; bama; (2132) Private First Class Tyler R. Mac- (2177) Lance Corporal Kristen K. Marino (2221) Private First Class Collin T. Mason, Kenzie, Evans, Colorado; (Figueroa), Honolulu, Hawaii; Staten Island, New York; (2133) Staff Sergeant Bryant W. Mackey, (2178) Private First Class Christopher L. (2222) Staff Sergeant Johnnie V. Mason, Eureka, Kansas; Marion, Pineville, Missouri; Rio Vista, Texas; (2134) Captain Michael J. Mackinnon, Hel- (2179) Chief Warrant Officer Keith R. (2223) Sergeant Nicholas C. ‘‘Nick’’ Mason, ena, Montana; Mariotti, Elkton, Maryland; King George, Virginia; (2135) Seaman Apprentice Robert D. (2180) Corporal Jonathan A. Markham, (2224) Private First Class Casey P. Mason, Macrum, Sugarland, Texas; Bedford, Texas; Lake, Michigan; (2136) Private First Class Nicholas A. (2181) Corporal Gentian Marku, Warren, (2225) Sergeant John R. Massey, Judsonia, Madaras, Wilton, Connecticut; Michigan; Arkansas; (2137) Sergeant Joshua B. Madden, Sibley, (2182) Private First Class Chad E. Marsh, (2226) Sergeant Arthur S. (Stacey) Louisiana; Wichita, Kansas Mastrapa, Apopka, Florida; (2138) Sergeant Stephen R. Maddies, (2183) Specialist James E. Marshall, Tulsa, (2227) Chief Warrant Officer Johnny Elizabethton, Tennessee; Oklahoma Villareal Mata, Amarillo, Texas; (2139) Specialist Vincent A. Madero, Port (2184) Sergeant First Class John Winston (2228) Lance Corporal Ramon Mateo, Suf- Hueneme, California; Marshall, Los Angeles, California folk, New York; (2140) Specialist Ronnie G. Madore, Jr. San (2185) Sergeant Randell T. Marshall, Fitz- (2229) Sergeant Randy J. Matheny, Diego, California; gerald, Georgia; McCook, Nebraska; (2141) Lance Corporal Blake A. Magaoay, (2186) Corporal Evan A. Marshall, Athens, (2230) Sergeant Charles E. Matheny IV, Pearl City, Hawaii; Georgia; Stanwood, Washington; (2142) Lance Corporal Joseph Basil (2187) Sergeant Bradley W. Marshall, Little (2231) Specialist Micheal B. Matlock, Glen Maglione III, Lansdale, Pennsylvania; Rock, Arkansas; Burnie, Maryland; (2143) Captain Shane Mahaffee, Gurnee, Il- (2188) Hospitalman Robert N. Martens, (2232) Lance Corporal John J. Mattek, Jr., linois; Queen Creek, Arizona; Stevens Point, Wisconsin; (2144) Lance Corporal Marcus Mahdee, Fort (2189) Private First Class David J. Martin, (2233) Staff Sergeant Joshua P. Mattero, Walton Beach, Florida; Edmond, Oklahoma; San Diego, California; (2145) Corporal Jarrod L. Maher, Imogene, (2190) Staff Sergeant Jay Edward Martin, (2234) Sergeant James C. ‘‘J.C.’’ Matteson, Iowa; Baltimore, Maryland; Jamestown/Celoron, New York; (2191) Private First Class Ryan A. Martin, (2146) Lance Corporal Sean P. Maher, (2235) Specialist Clint Richard ‘‘Bones’’ Mount Vernon, Ohio; Grayslake, Illinois; Matthews, Bedford, Pennsylvania; (2147) Specialist William J. Maher III, (2192) Staff Sergeant Stephen G. Martin, (2236) Captain Matthew C. Mattingly, Yardley, Pennsylvania; Wausau/Rhinelander, Wisconsin; Reynoldsburg, Ohio; (2148) Specialist David P. Mahlenbrock, (2193) Sergeant Timothy P. Martin, Pixley, (2237) Corporal Matthew E. Matula, Maple Shade, New Jersey; California; Spicewood, Texas; (2149) Sergeant Mark A. Maida, Madison, (2194) Staff Sergeant Jonathon L. Martin, (2238) Lance Corporal Andrew G. Matus, Wisconsin; Bellevue, Ohio; Chetek, Wisconsin; (2150) Specialist Russell M. Makowski, (2195) First Lieutenant Thomas M. Martin, (2239) Staff Sergeant Donald Charles May, Union, Missouri; Ward, Arkansas; Jr., Richmond, Virginia; (2151) First Lieutenant Dan T. Malcom, Jr. (2196) Sergeant Shawn P. Martin, Delmar, (2240) Private First Class Joseph Patrick Brinson, Georgia; New York; (2152) Captain Torre R. Mallard, Oklahoma; (2197) Sergeant Francisco Martinez, Mayek, Rock Springs, Wyoming; (2153) Staff Sergeant Toby W. Mallet, Humacao, Puerto Rico; (2241) Lance Corporal Ryan L. Mayhan, Kaplan, Louisiana; (2198) Specialist Francisco G. Martinez, Hawthorne, California; (2154) Sergeant Jimy M. Malone, Wills Fort Worth, Texas; (2242) Lance Corporal Chad B. Maynard, Point, Texas; (2199) Private First Class Jesse J. Mar- Montrose, Colorado; (2155) Captain John W. Maloney, Chicopee, tinez, Tracy, California; (2243) Private Barry Wayne Mayo, Ecru, Massachusetts; (2200) Corporal Joseph L. Martinez, Las Mississippi; (2156) First Lieutenant Adam Malson, Vegas, Nevada; (2244) Corporal Pablo V. Mayorga, Margate, Rochester Hills, Michigan; (2201) Specialist Michael A. Martinez, Florida; (2157) Corporal Michael T. Manibog, Ala- Juana Diaz, Puerto Rico; (2245) Private Anthony M. Mazzarella, Blue meda, California; (2202) Major Michael R. Martinez, Kansas Springs, Missouri; (2158) First Lieutenant Travis L. Manion, City/Columbia, Missouri; (2246) Master Sergeant Brian P. McAnulty, Doylestown, Pennsylvania; (2203) Staff Sergeant Misael Martinez, Vicksburg, Mississippi; (2159) Lance Corporal Nicholas J. Chapel Hill, North Carolina; (2247) Specialist Montrel S. Mcarn, Manoukian, Lathrup Village, Michigan; (2204) Private First Class Oscar A. Mar- Raeford, North Carolina; (2160) Chief Warrant Officer Ian D. Manuel, tinez, North Lauderdale, Florida; (2248) Sergeant Zachary W. McBride, Bend, Florida; (2205) Lance Corporal Rene Martinez, Oregon; (2161) Staff Sergeant William F. Manuel, Miami, Florida; (2249) Sergeant Patrick R. McCaffrey, Sr., Kinder, Louisiana; (2206) Lance Corporal Robert Alexander Tracy, California; (2162) Private First Class Pablo Manzano, Martinez, Splendora, Texas; (2250) Sergeant Daniel L. McCall, Pace, Heber, California; (2207) Specialist Victor A. Martinez, Bronx, Florida; (2163) Sergeant Myla L. Maravillosa, New York; (2251) Private First Class Rodney L. Wahiawa, Hawaii; (2208) Staff Sergeant Virgil C. Martinez, McCandless, Camden, Arkansas; (2164) Lance Corporal Howard S. March, West Valley, Utah; (2252) Specialist Marquis J. McCants, San Jr., Buffalo, New York; (2209) Sergeant Anselmo Martinez, Antonio, Texas; (2165) Corporal Jason N. Marchand, Green- Robstown, Texas; (2253) Lance Corporal Joseph C. McCarthy, wood, West Virginia; (2210) Sergeant Michael J. Martinez, Chula Concho, Arizona; (2166) Private First Class Miguel A. Vista, California; (2254) Lance Corporal Ryan T. McCaughn, Marcial III, Secaucus, New Jersey; (2211) Specialist Roberto L. Martinez Manchester, New Hampshire; (2167) Private First Class Luigi Marciante, Salazar, Long Beach, California; (2255) Private First Class Ryan Michael Jr., Elizabeth, New Jersey; (2212) Private First Class Francisco Abra- McCauley, Lewisville, Texas; (2168) Sergeant Joshua S. Marcum, Evening ham Martinez-Flores, Los Angeles, Cali- (2256) Sergeant First Class Randy D. Shade, Arkansas; fornia; McCaulley, Indiana, Pennsylvania; (2169) Private First Class Lyndon A. (2213) Sergeant Trinidad R. Martinezluis, (2257) Major Joseph Trane McCloud, Grosse Marcus, Jr., Long Beach, California; Los Angeles, California; Pointe Park, Michigan;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00101 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.092 S03APPT1 ccoleman on PRODPC75 with SENATE S2468 CONGRESSIONAL RECORD — SENATE April 3, 2008 (2258) Private First Class Christopher M. (2302) Sergeant Garrett I. McLead, Rock- (2346) Sergeant Giann C. Joya Mendoza, McCloud, Malakoff, Texas; port, Texas; North Hollywood, California; (2259) Major Megan M. McClung, (2303) Lance Corporal Justin D. McLeese, (2347) Major Ramon J. Mendoza, Jr., Co- Coupeville, Washington; Covington, Louisiana; lumbus, Ohio; (2260) Specialist Daniel James McConnell, (2304) Staff Sergeant Don Steven (2348) Sergeant Steven P. Mennemeyer, Duluth, Minnesota; McMahan, Nashville, Tennessee; Granite City, Illinois; (2261) Corporal Brad Preston McCormick, (2305) Corporal Graham M. McMahon, Cor- (2349) Gunnery Sergeant Joseph Menusa, Overton, Tennessee; vallis, Oregon; San Jose, California; (2262) Private Clinton T. McCormick, Jack- (2306) Staff Sergeant Jacob G. McMillan, (2350) Staff Sergeant Eddie E. sonville, Florida; Lafayette, Louisiana; Menyweather, Los Angeles, California; (2263) Staff Sergeant Gregory W. G. McCoy, (2307) Sergeant Heath A. McMillin, (2351) Specialist Gil Mercado, Paterson, Webberville, Michigan; Canandaigua, New York; New Jersey; (2264) Lance Corporal Christopher M. (2308) Staff Sergeant Michael Joseph (2352) Lance Corporal Raul Mercado, Mon- McCrackin, Liverpool, Texas; McMullen, Salisbury, Maryland; rovia, California; (2265) First Lieutenant Erik S. McCrae, (2309) Sergeant Robert A. McNail, Merid- (2353) Staff Sergeant Angel D. Mercado- Portland, Oregon; ian, Mississippi; Velazquez, Puerto Rico; (2266) Specialist Donald R. McCune, Ypsi- (2310) Sergeant First Class Robbie D. (2354) Specialist Sergio A. Mercedes Saez, lanti, Michigan; McNary, Lewistown, Montana; New York, New York; (2267) Lance Corporal Ryan S. McCurdy, (2311) Staff Sergeant James D. (2355) Sergeant Chad M. Mercer, Waycross, Baton Rouge, Louisiana; McNaughton, Middle Village, New York; Georgia; (2268) Private First Class Juctin R. P. (2312) Sergeant Phillip D. McNeill, Sunrise, (2356) Specialist Christopher S. Merchant, McDaniel, Andover, New Hampshire; Florida; Hardwick, Vermont; (2269) Corporal Robert T. McDavid, (2313) Master Sergeant Michael L. McNul- (2357) Staff Sergeant Dennis P. Merck, Starksville, Mississippi; ty, Knoxville, Tennessee; Evans, Georgia; (2270) Specialist Sean K. McDonald, (2314) Specialist Alan E. McPeek, Tucson, (2358) Sergeant Michael M. Merila, Sierra Rosemount, Minnesota; Arizona; Vista, Arizona; (2271) Specialist Bryan T. McDonough, Ma- (2315) First Lieutenant Brian Michael (2359) Private First Class Ivan E. Merlo, plewood, Minnesota; McPhillips, Pembroke, Massachusetts; San Marcos, California; (2272) Sergeant Robert M. McDowell, Deer (2316) Corporal James H. McRae, (2360) Sergeant Jason L. Merrill, Mesa, Ari- Park, Texas; Springtown, Texas; zona; (2273) Staff Sergeant Brian McElroy, San (2317) Petty Officer First Class Robert (2361) Specialist Christopher A. Merville, Antonio, Texas; Richard McRill, Lake Placid, Florida; Albuquerque, New Mexico; (2274) Corporal Anthony T. McElveen, Lit- (2318) Sergeant First Class Clarence D. (2362) Sergeant Christopher P. Messer, Pe- tle Falls, Minnesota; McSwain, Meridian, Kentucky; tersburg, Florida; (2275) Staff Sergeant Thomas M. McFall, (2319) Petty Officer First Class Joseph A. (2363) Private First Class Scott A. Messer, Glendora, California; McSween, Valdosta, Georgia; Ashland, Kentucky; (2276) Specialist Dwayne James McFarlane, (2320) Sergeant First Class Otie Joseph (2364) Private First Class Nicolas E. Jr., Cass Lake, Minnesota; McVey, Oak Hill, West Virginia; Messmer, Gahanna/Franklin, Ohio; (2277) Chief Warrant Officer Jackie L. (2321) Lance Corporal Daniel M. McVicker, (2365) Sergeant Daniel K. Methvin, Belton, McFarlane, Jr., Virginia Beach, Virginia; Alliance, Ohio; Texas; (2278) Specialist Dustin K. McGaugh, (2322) Corporal Jesus Martin Antonio (2366) Sergeant Major Michael C. Mettille, Derby, Kansas; Medellin, Fort Worth, Texas; St. Paul, Minnesota; (2279) Sergeant John E. McGee, Columbus, (2323) Lance Corporal Brian A. Medina, (2367) Private First Class Harrison J. Georgia; Woodbridge, Virginia; Meyer, Worthington, Ohio; (2280) Private First Class Holly J. (2324) Specialist Irving Medina, Middle- (2368) Private First Class Jason Michael McGeogh, Taylor, Michigan; town, New York; Meyer, Swartz Creek, Michigan; (2281) Sergeant Arthur R. McGill, Gravette, (2325) Lance Corporal Matthew S. (2369) Specialist Brandon A. Meyer, Or- Arkansas; Medlicott, Houston, Texas; ange, California; (2282) Sergeant Brian Daniel McGinnis, St. (2326) Sergeant Jean P. Medlin, Pelham, (2370) Sergeant Barry K. Meza, League George, Delaware; Alabama; City, Texas; (2283) First Sergeant Ricky L. McGinnis, (2327) Sergeant William B. Meeuwsen, (2371) Corporal Gilberto A. Meza, Oxnard, Hamilton, Ohio; Kingwood, Texas; California; (2284) Private Ross A. McGinnis, Knox, (2328) Sergeant Benjamin E. Mejia, Salem, (2372) Corporal Joseph P. Micks, Rapid Pennsylvania; Massachusetts; River, Michigan; (2285) Second Lieutenant Donald R. (2329) Private Bobby Mejia II, Saginaw, (2373) Sergeant Eliu A. Miersandoval, San McGlothin, Lebanon, Virginia; Michigan; Clemente, California; (2286) Specialist Michael A. McGlothin, (2330) Staff Sergeant David A. Mejias, San (2374) Specialist Michael G. Mihalakis, San Milwaukee, Wisconsin; Juan, Puerto Rico; Jose, California; (2287) Captain Timothy I. McGovern, Indi- (2331) Specialist Mark W. Melcher, Pitts- (2375) Private First Class Matthew G. ana; burgh, Pennsylvania; Milczark, Kettle River, Minnesota (2288) Corporal Stephen M. McGowan, New- (2332) Sergeant John Mele, Bunnell, Flor- (2376) Corporal Jason David Mileo, Centre- ark, Delaware; ida; ville, Maryland; (2289) Specialist Jeremy W. McHalffey, (2333) Lance Corporal Anthony C. Melia, (2377) Sergeant Sean H. Miles, Midlothian, Mabelvale, Arkansas; Thousand Oaks, California; Virginia; (2290) Petty Officer Second Class Scott R. (2334) Corporal Casey L. Mellen, Huachuca (2378) Specialist Gregory N. Millard, San Mchugh, Boca Raton, Florida; City, Arizona; Diego, California; (2291) Staff Sergeant Eric A. McIntosh, (2335) Staff Sergeant Julian S. Melo, (2379) Sergeant Joseph B. Milledge, Point- Trafford, Pennsylvania; Brooklyn, New York; blank, Texas; (2292) Hospitalman Joshua McIntosh, King- (2336) Specialist Jacob E. Melson, Wasilla, (2380) Private First Class Patrick J. Miller, man, Arizona; Alaska; New Port Richey, Florida; (2293) Corporal Scott A. McIntosh, Hous- (2337) Specialist Kenneth A. Melton, (2381) Private First Class Anthony Scott ton, Texas; Westplains, Missouri; Miller, San Antonio, Texas; (2294) Sergeant David M. McKeever, Buf- (2338) Corporal Jaygee Ngirmidol Meluat, (2382) Lance Corporal Clinton J. Miller, falo, New York; Tamuning, Guam; Greenfield, Iowa; (2295) Captain John James McKenna IV, (2339) Staff Sergeant Tracy L. Melvin, Se- (2383) Sergeant John W. Miller, West Bur- Brooklyn, New York; attle, Washington; lington, Iowa; (2296) Specialist Eric S. McKinley, Cor- (2340) Private Kristian Menchaca, San (2384) Specialist Kyle Miller, Willmar, Min- vallis, Oregon; Marcos, Texas; nesota; (2297) Private Robert L. McKinley, Koko- (2341) First Sergeant Bobby Mendez, (2385) Sergeant Marco L. Miller, Longwood, mo, Indiana; Brooklyn, New York; Florida; (2298) First Sergeant Jeffrey R. McKinney, (2342) Lance Corporal David A. Mendez (2386) Sergeant First Class Marvin Lee Mil- Garland, Texas; Ruiz, Cleveland, Ohio; ler, Dunn, North Carolina; (2299) Corporal Antoine J. McKinzie, Indi- (2343) Private First Class Antonio ‘‘Tony’’ (2387) Lance Corporal Nicholas A. Miller, anapolis, Indiana; Mendez Sanchez, Rincon, Puerto Rico; Silverwood, Michigan; (2300) Lieutenant Colonel Michael E. (2344) Petty Officer Third Class Fernando (2388) Lance Corporal Ryan A. Miller, McLaughlin, Mercer, Pennsylvania; A. Mendez-Aceves, Ponce, Puerto Rico; Pearland, Texas; (2301) Sergeant Scott P. McLaughlin, Hard- (2345) Corporal Antonio Mendoza, Santa (2389) Private Ryan Edwin Miller, wick, Vermont; Ana, California; Gahanna, Ohio;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00102 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.092 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2469 (2390) Lance Corporal William L. Miller, (2434) Lance Corporal Brian P. Mont- (2478) Staff Sergeant Daniel M. Morris, Pearland, Texas; gomery, Willoughby, Ohio; Clinton, Tennessee; (2391) Sergeant Mikeal W. Miller, Albany, (2435) Sergeant Ryan J. Montgomery, (2479) Lance Corporal Daniel T. Morris, Oregon; Greensburg, Kentucky; Crimora, Virginia; (2392) Private Scott A. Miller, Casper, Wyo- (2436) Sergeant Robert J. Montgomery, (2480) Corporal Darrel J. Morris, Spokane, ming; Scottsburg, Indiana; Washington; (2393) Captain Lowell T. Miller II, Flint, (2437) Specialist Damien M. Montoya, Hol- (2481) Sergeant Eric Wayne Morris, Sparks, Michigan; brook, Arizona; Nevada; (2394) Private First Class James H. Miller (2438) Sergeant Michael J. Montpetit, Hon- (2482) Private First Class Geoffrey S. Mor- IV, Cincinnati, Ohio; olulu, Hawaii; ris, Gurnee, Illinois; (2395) Private First Class Bruce Miller, Jr., (2439) Sergeant Milton M. Monzon, Jr., Los (2483) Sergeant Kelly S. Morris, Boise, Orange, New Jersey; Angeles, California; Idaho; (2396) Senior Airman Daniel B. Miller, Jr., (2440) Staff Sergeant Michael D. Moody, (2484) Lance Corporal Stephen L. Morris, Galesburg, Illinois; Jr., Richmond, Virginia; Lake Jackson, Texas; (2397) Private First Class Dennis J. Miller, (2441) Sergeant Jae S. Moon, Levittown, (2485) Private First Class Ricky A. Morris, Jr., La Salle, Michigan; Pennsylvania; Jr., Lubbock, Texas; (2398) Staff Sergeant Frederick L. Miller, (2442) First Lieutenant Adam G. Mooney, (2486) Sergeant First Class Lawrence E. Jr., Hagerstown, Indiana; Cambridge, Maryland; Morrison, Yakima, Washington; (2399) Private First Class Jonathan (2443) Chief Warrant Officer Dwayne L. (2487) Lance Corporal Nicholas B. Morri- Millican, Trafford, Alabama; Moore, Williamsburg, Virginia; son, Carlisle, Pennsylvania; (2400) Sergeant Lea R. Mills, Brooksville, (2444) Major Horst Gerhard ‘‘Gary’’ Moore, (2488) Sergeant Shawna M. Morrison, Paris/ Florida; Los Fresnos/San Antonio, Texas; Champaign, Illinois; (2401) Sergeant Jerry W. Mills, Jr., Arkan- (2445) Corporal James Lee Moore, (2489) Corporal Jason W. Morrow, River- sas City, Kansas; Roseburg, Oregon; side, California; (2402) First Sergeant Timmy J. Millsap, (2446) Lance Corporal Jason William (2490) Lance Corporal Marty G. Mortenson, Wichita, Kansas; Moore, San Marcos, California; Flagstaff, Arizona; (2403) Specialist Avealalo Milo, Hayward, (2447) Private First Class Keith J. Moore, (2491) Sergeant Benjamin C. Morton, California; San Francisco, California; Wright, Kansas; (2404) Lance Corporal Robert T. Mininger, (2448) Corporal Nathaniel K. Moore, Cham- (2492) Lance Corporal Robert L. Moscillo, Sellersville, Pennsylvania; paign, Illinois; Salem, New Hampshire; (2405) Petty Officer First Class Gilbert (2449) Private First Class Stuart W. Moore, (2493) Captain Timothy J. Moshier, Delmar/ Minjares, Jr., El Paso, Texas; Livingston, Texas; Albany, New York; (2406) Staff Sergeant Brian L. Mintzlaff, (2450) Staff Sergeant William C. Moore, (2494) Specialist Jason L. Moski, Fort Worth, Texas; Benson, North Carolina; Blackville/Wagener, South Carolina; (2407) Sergeant Joseph Minucci II, (2451) Private First Class Joshua M. Moore, (2495) Sergeant Keelan L. Moss, Houston, Richeyville, Pennsylvania; Russellville, Kentucky; Texas; (2408) Sergeant First Class Troy ‘‘Leon’’ (2452) Staff Sergeant Christopher Lee (2496) Technical Sergeant Walter M. Moss, Miranda, DeQueen, Arkansas; Moore, Alpaugh, California; Jr., Houston, Texas; (2409) Sergeant Gordon F. Misner II, (2453) Sergeant Travis A. Moothart, (2497) Sergeant First Class Allen Mosteiro, Sparks, Nevada; Brownsville, Oregon; Fort Worth, Texas; (2410) Private Jody W. Missildine, Plant (2454) Specialist Jose L. Mora, Bell Gar- (2498) Corporal Todd A. Motley, Clare, City, Florida; dens, California; Michigan; (2411) Staff Sergeant Curtis A. Mitchell, (2455) Private First Class Michael A. Mora, (2499) Staff Sergeant Christopher O. Malta, Ohio; Arroyo Grande, California; Moudry, Baltimore, Maryland; (2412) Sergeant Keman L. Mitchell, Hill- (2456) Sergeant Omar L. Mora, Texas City, (2500) Sergeant First Class James S. iard, Florida; Texas; ‘‘Shawn’’ Moudy, Newark, Delaware; (2413) Sergeant Michael W. Mitchell, (2457) Sergeant Arthur A. Mora, Jr., Pico (2501) Corporal Clifton Blake Mounce, Porterville, California; Rivera, California; Pontotoc, Mississippi; (2414) Sergeant Sean R. Mitchell, (2458) Sergeant Melvin Y. Mora Lopez, Are- (2502) Corporal Kevin S. Mowl, Pittsford, Youngsville, Pennsylvania; cibo, Puerto Rico; New York; (2415) Specialist Raymond N. Mitchell III, (2459) Private First Class Jason M. Mo- (2503) Specialist Clifford L. Moxley, Jr., West Memphis, Arkansas; rales, La Puente, California; New Castle, Pennsylvania; (2416) Specialist George Arthur Mitchell, (2460) Private Joshua M. Morberg, Sparks, (2504) Sergeant Ashly L. Moyer, Emmaus, Jr., Rawlings, Maryland; Nevada; Pennsylvania; (2417) Sergeant David A. Mitts, Hammond, (2461) Master Sergeant Kevin N. Morehead, (2505) Sergeant Cory R. Mracek, Hay Oregon; Little Rock, Arkansas; Springs, Nebraska; (2418) Private First Class Jesse D. Mizener, (2462) Captain Brent L. Morel, Martin, Ten- (2506) Sergeant James P. Muldoon, Bells, Auburn, California; nessee; Texas; (2419) Sergeant Willsun M. Mock, Harper, (2463) Petty Officer Third Class David J. (2507) Staff Sergeant Jeremy W. Mulhair, Kansas; Moreno, Gering, Nebraska; Omaha, Nebraska; (2420) Lance Corporal Scott T. Modeen, (2464) Sergeant Gerardo Moreno, Terrell, (2508) Private First Class Adam J. Muller, Hennepin, Minnesota; Texas; Underhill, Vermont; (2421) Private First Class Joshua S. (2465) Specialist Jaime Moreno, Round (2509) Major Michael Lewis Mundell, Bran- Modgling, Las Vegas, Nevada; Lake Beach, Illinois; denburg, Kentucky; (2422) Specialist Yari Mokri, Pflugerville, (2466) Private First Class Luis A. Moreno, (2510) Specialist Joshua J. Munger, Texas; Bronx, New York; Maysville, Missouri; (2423) Specialist Joshua A. Molina, Hous- (2467) Private Reece D. Moreno, Prescott, (2511) Staff Sergeant Donald L. Munn II, ton, Texas; Arizona; Saint Clairs Shores, Michigan; (2424) Staff Sergeant Jorge A. Molina (2468) Sergeant Trista L. Moretti, South (2512) Private First Class Matthew M. Mur- Bautista, Rialto, California; Plainfield, New Jersey; chison, Independence, Missouri; (2425) Sergeant First Class Justin S. (2469) Sergeant Carl J. Morgain, Butler, (2513) Gunnery Sergeant Herman J. Monschake, Krum, Texas; Pennsylvania; Murkenson, Jr., Adger, Alabama; (2426) Private First Class Anthony W. Mon- (2470) Sergeant Dennis B. Morgan, Valen- (2514) Private First Class Christopher E. roe, Bismarck, North Dakota; tine, Nebraska; Murphy, Lynchburg, Virginia; (2427) Specialist Christopher T. Monroe, (2471) Specialist Keisha M. Morgan, Wash- (2515) Private First Class Shawn M. Mur- Kendallville, Indiana; ington, District of Columbia; phy, Fort Bragg, North Carolina; (2428) Lance Corporal Jeremy Scott (2472) Staff Sergeant Richard L. Morgan, (2516) Sergeant Warren A. Murphy, Sandvick Monroe, Chinook, Montana; Jr., Maynard/St. Clairsville, Ohio; Marrero, Louisiana; (2429) Petty Officer Second Class Michael (2473) Sergeant Steve Morin, Jr., Arling- (2517) Commander Philip A. Murphy-Sweet, A. Monsoor, Garden Grove, California; ton, Texas; Caldwell, Idaho; (2430) Staff Sergeant Jesus M. Montalvo, (2474) Sergeant Joshua L. Morley, Boise, (2518) Lance Corporal Adam R. Murray, Rio Piedras, Puerto Rico; Idaho; Cordova, Tennessee; (2431) Staff Sergeant Jason W. (2475) Staff Sergeant Christopher R. (2519) Sergeant David Joseph Murray, Montefering, Parkston, South Dakota; Morningstar, San Antonio, Texas; Felixville/Clinton, Louisiana; (2432) Sergeant Alphonso J. Montenegro II, (2476) Private First Class Allan A. Morr, (2520) Sergeant Jeremy E. Murray, Far Rockaway, New York; Shiawassee County, Michigan; Atwater, Ohio; (2433) Sergeant Luis A. Montes, El Centro, (2477) Staff Sergeant Brian Lee Morris, (2521) Sergeant Rodney A. Murray, Ayden, California; Centreville, Michigan; North Carolina;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00103 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.092 S03APPT1 ccoleman on PRODPC75 with SENATE S2470 CONGRESSIONAL RECORD — SENATE April 3, 2008 (2522) Sergeant Joel L. Murray, Kansas (2566) Specialist Keith V. Nepsa, New (2610) Lance Corporal Walter K. O’Haire, City, Missouri; Philidelphia, Ohio; Lynn, Massachusetts; (2523) Private First Class Robert W. Mur- (2567) Petty Officer Third Class Marcques (2611) Sergeant Donald Samuel Oaks, Jr., ray, Jr., Westfield, Indiana; J. Nettles, Beaverton, Oregon; Erie, Pennsylvania; (2524) Sergeant James P. Musack, River- (2568) Sergeant Paul C. Neubauer, Ocean- (2612) Private First Class Francis C. Obaji, side, Iowa; side, California; Queens Village, New York; (2525) Sergeant Dimitri Muscat, Aurora, (2569) Specialist Joshua M. Neusche, Mon- (2613) Private First Class Branden F. Colorado; treal, Missouri; Oberleitner, Worthington, Ohio; (2526) Sergeant Mitchel T. Mutz, Falls (2570) Private First Class William R. (2614) Specialist George R. Obourn, Jr., City, Texas; Newgard, Arlington Heights, Illinois; Creve Coeur, Illinois; (2527) Lance Corporal Veashna Muy, Los (2571) First Lieutenant Gwilym J. New- (2615) Corporal William D. O’Brien, Rice, Angeles, California; man, Waldorf, Maryland; Texas; (2528) Specialist Edward L. Myers, St. Jo- (2572) Lance Corporal Randy Lee Newman, (2616) Lance Corporal Patrick Terence seph, Missouri; Bend, Oregon; O’Day, Sonoma, California; (2529) Sergeant Krisna Nachampassak, (2573) Senior Airman William N. Newman, (2617) Sergeant Major Robert D. ODell, Ma- Burke, Virginia; Kingston Springs, Tennessee; nassas, Virginia; (2530) Specialist Russell H. Nahvi, Arling- (2574) Staff Sergeant Daniel A. Newsome, (2618) Lance Corporal Shane K. O’Donnell, ton, Texas; Chicopee, Massachusetts; DeForest, Wisconsin; (2531) Specialist Paul T. Nakamura, Santa (2575) Corporal Meresebang Ngiraked, (2619) Specialist Charles E. Odums II, San- Fe Springs, California; Koror, Republic of Palau; dusky, Ohio; (2532) Specialist Nathan W. Nakis, Sedro- (2576) Specialist Dan H. Nguyen, (2620) Sergeant John B. Ogburn III, Fruit- Woolley, Washington; Sugarland, Texas; land, Idaho; (2533) Private Kenneth A. Nalley, Ham- (2577) Sergeant First Class Tung M. (2621) Corporal Wade J. Oglesby, Grand burg, Iowa; Nguyen, Tracy, California; Junction, Colorado; (2534) Petty Officer Third Class Roger Alan (2578) Lance Corporal Joseph L. Nice, (2622) Specialist Ramon C. Ojeda, Ramona, Napper, Jr., Greenburg, Pennsylvania; Nicoma Park, Oklahoma; California; (2535) Specialist Richard Junior D. Naputi (2579) Corporal Dominique J. Nicolas, Mari- (2623) Sergeant Randell Olguin, Ralls, of Talofofo, Guam; copa, Arizona; Texas; (2536) Staff Sergeant Joe A. Narvaez, San (2580) Private First Class Louis E. (2624) Corporal Brian Oliveira, Raynham, Antonio, Texas; Niedermeier, Largo, Florida; Massachusetts; (2537) Specialist Casey W. Nash, Baltimore, (2581) Specialist Isaac Michael Nieves, (2625) Sergeant Nicholas J. Olivier, Ruston, Maryland; Unadilla, New York; Louisiana; (2538) Chief Warrant Officer (CW2) Chris- (2582) Staff Sergeant Scott E. Nisely, (2626) Major Andrew J. Olmsted, Colorado topher G. Nason, Los Angeles, California; Marshalltown, Iowa; Springs, Colorado; (2539) Airman First Class Jason D. Nathan, (2583) Lance Corporal Patrick Ray Nixon, (2627) Lance Corporal Daniel R. Olsen, Macon, Georgia; Nashville, Tennessee; Eagan, Minnesota; (2540) Specialist Peter J. Navarro, Wild- (2584) Hospitalman Daniel S. Noble, Whit- (2628) Specialist Toby R. Olsen, Man- wood, Missouri; tier, California; chester, New Hampshire; (2541) Lance Corporal Juana (2585) Specialist Allen Nolan, Marietta, (2629) Corporal John T. Olson, Elk Grove NavarroArellano, Ceres, California; Ohio; Village, Illinois; (2542) Major Kevin Gerard Nave, Union (2586) Sergeant Joseph M. Nolan, Philadel- (2630) Staff Sergeant Todd D. Olson, Loyal, Lake, Michigan; phia, Pennsylvania; Wisconsin; (2543) Specialist Rafael L. Navea, Pitts- (2587) Specialist Marcos O. Nolasco, Chino, (2631) Specialist Nicholas P. Olson, Novato, burgh, Pennsylvania; California; California; (2544) Specialist Brynn J. Naylor, Roswell, (2588) Hospitalman Kyle A. Nolen, Ennis, (2632) First Lieutenant Robert C. Oneto-Si- New Mexico; Texas; korski, Bay St. Louis, Mississippi; (2545) Specialist Christine M. Ndururi, (2589) Sergeant Nicholas S. Nolte, Falls (2633) Sergeant Justin B. Onwordi, Chan- Dracut, Massachusetts; City, Nebraska; dler, Arizona; (2546) Corporal Jacob H. Neal, San Marcos, (2590) Captain Michael A. Norman, Killeen, (2634) Sergeant Bryan James Opskar, Texas; Texas; Princeton, Minnesota; (2547) Lance Corporal Troy D. Nealey, (2591) Sergeant William J. Normandy, East (2635) Private First Class Michael K. Eaton Rapids, Michigan; Barre, Vermont; Oremus, Highland, New York; (2548) Master Sergeant Robb Gordon Need- (2592) Specialist Joseph C. Norquist, San (2636) Specialist Richard P. Orengo, Toa ham, Vancouver, Washington; Antonio, Texas; Alta, Puerto Rico; (2549) First Lieutenant Phillip I. Neel, (2593) Sergeant Curtis L. Norris, Dansville, (2637) Lieutenant Colonel Kim S. Orlando, Maryland; Michigan; Nashville, Tennessee; (2550) Specialist Charles L. Neeley, (2594) Staff Sergeant Paul B. Norris, (2638) Lance Corporal Eric James Orlowski, Mattoon, Illinois; Cullman, Alabama; Buffalo, New York; (2551) Sergeant Peter C. Neesley, Grosse (2595) Private First Class Christopher M. (2639) Private First Class Jay-D H. Ornsby- Pointe Farms, Michigan; North, Sarasota, Florida; Adkins, Ione, California; (2552) Private First Class Christian M. Neff, (2596) Technical Sergeant Jason L. Norton, (2640) Sergeant Adrian N. Orosco, Cor- Lima, Ohio; Miami, Oklahoma; coran, California; (2553) Staff Sergeant Paul M. Neff II, Fort (2597) Sergeant Justin Dean Norton, (2641) First Lieutenant Osbaldo Orozco, Mill, South Carolina; Rainier, Washington; Delano, California; (2554) Sergeant Julio E. Negron, Pompano (2598) Sergeant Byron W. Norwood, (2642) Private First Class Cody J. Orr, Rus- Beach, Florida; Pflugerville, Texas; kin, Florida; (2555) Specialist Christopher T. Neiberger, (2599) Captain Leif E. Nott, Cheyenne, Wy- (2643) Private Elijah M. Ortega, Oxnard, Gainesville, Florida; oming; California; (2556) Private First Class Gavin L. Neigh- (2600) Specialist Shaun A. Novak, Two Riv- (2644) Captain Maria I. Ortiz, Bayamon, bor, Somerset, Ohio; ers, Wisconsin; Puerto Rico; (2557) Staff Sergeant Regilio E. Nelom, (2601) Lance Corporal Andrew W. Nowacki, (2645) Staff Sergeant Billy J. Orton, Queens, New York; South Euclid, Ohio; Humnoke, Arkansas; (2558) Private First Class Albert M. Nelson, (2602) Sergeant Justin Noyes, Vinita, Okla- (2646) Sergeant Timothy R. Osbey, Mag- Philadelphia, Pennsylvania; homa; nolia, Mississippi; (2559) Private First Class Andrew H. Nel- (2603) Staff Sergeant Todd E. Nunes, Chap- (2647) Sergeant Pamela G. Osbourne, Holly- son, Saint Johns, Michigan; el Hills, Tennessee; wood, Florida; (2560) Sergeant Craig L. Nelson, Bossier (2604) Corporal Jason Nunez, Naranjito, (2648) Sergeant John C. Osmolski, Eustis, City, Louisiana; Puerto Rico; Florida; (2561) Specialist Lex S. Nelson, Salt Lake (2605) Corporal Keith A. Nurnberg, (2649) Staff Sergeant Ryan S. Ostrom, Lib- City, Utah; McHenry, Illinois; erty, Pennsylvania; (2562) Sergeant Mario Nelson, New York, (2606) Sergeant Joseph C. Nurre, Wilton, (2650) Chief Warrant Officer Scott A.M., New York; California; Oswell, Washington; (2563) Staff Sergeant Travis L. Nelson, An- (2607) Sergeant David T. Nutt, Blackshear, (2651) Lance Corporal Deshon E. Otey, Har- niston, Alabama; Georgia; din, Kentucky; (2564) Corporal Christopher J. Nelson, (2608) Corporal Mick R. Nygardbekowsky, (2652) Private First Class Kevin C. Ott, Co- Rochester, Washington; Concord, California; lumbus, Ohio; (2565) Staff Sergeant Andrew P. Nelson, (2609) Staff Sergeant Nathaniel J. Nyren, (2653) Staff Sergeant Michael C. Ottolini, Moorhead, Minnesota; Reston, Virginia; Sebastopol, California;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00104 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.092 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2471 (2654) Lance Corporal Tyler R. Overstreet, (2698) Sergeant Lawrence Parrish, Leb- (2742) Sergeant Joel Perez, Rio Grande, Gallatin, Tennessee; anon, Missouri; Puerto Rico; (2655) Sergeant Michael G. Owen, Phoenix, (2699) Staff Sergeant Michael C. Parrott, (2743) Corporal Jose R. Perez, Ontario, Arizona; Timnath, Colorado; California; (2656) Specialist Anthony Chad Owens, Dil- (2700) Sergeant David B. Parson, (2744) Private First Class Luis A. Perez, lon/Conway, South Carolina; Kannapolis, North Carolina; Theresa, New York; (2657) Lance Corporal David Edward Owens, (2701) Sergeant First Class Lonnie J. Par- (2745) Lance Corporal Nicholas Perez, Aus- Jr., Winchester, Virginia; son, Norcross, Georgia; tin, Texas; (2658) Staff Sergeant Paul Pabla, Fort (2702) Sergeant Willard Todd Partridge, (2746) Lance Corporal Stephen Joseph Wayne, Indiana; Ferriday, Louisiana; Perez, San Antonio, Texas; (2659) Private First Class Paulomarko U. (2703) Captain Christopher T. Pate, Hamp- (2747) Specialist Orlando A. Perez, Hous- Pacificador, Shirley, New York; stead, North Carolina; ton, Texas; (2660) Sergeant Steven M. Packer, Clovis, (2704) Lance Corporal Matthew P. (2748) Specialist Jose A. Perez III, San California; Pathenos, Ballwin, Missouri; Diego, Texas; (2661) Hospitalman Geovani Padilla (2705) Private First Class Justin T. Paton, (2749) Lance Corporal Richard A. Perez, Jr., Aleman, South Gate, California; Alanson, Michigan; Las Vegas, Nevada; (2662) Sergeant Fernando Padilla-Ramirez, (2706) Staff Sergeant Jason L. Paton, (2750) Specialist Wilfredo Perez, Jr., Nor- San Luis, Arizona; Poway, California; walk, Connecticut; (2663) Private First Class Rex A. Page, (2707) Captain Travis L. Patriquin, Lock- (2751) Sergeant Andrew C. Perkins Kirksville, Missouri; port, Illinois; Northglenn, Colorado; (2664) Private Shawn D. Pahnke, Shelby- (2708) Lance Corporal Andrew G. Patten, (2752) Petty Officer First Class Michael J. ville, Indiana; Byron, Illinois; Pernaselli, Monroe, New York; (2665) Captain Mark C. Paine, Rancho (2709) Sergeant Jayton D. Patterson, Wake- (2753) Sergeant Carlos E. Pernell, Munford, Cucamonga, California; field/Sedley, Virginia; Alabama; (2666) Specialist Gabriel T. Palacios, Lynn, (2710) Sergeant Nicholas J. Patterson, (2754) Staff Sergeant David S. Perry, Ba- Massachusetts; Rochester, Indiana; kersfield, California; (2667) Captain Anthony Palermo, Jr., (2711) Staff Sergeant Esau G. Patterson, (2755) Sergeant Joseph W. Perry, Alpine, Brockton, Massachusetts; Jr., Ridgeland, South Carolina; California; (2668) Captain Eric Thomas Paliwoda, (2712) Specialist Christopher G. Patton, (2756) Private First Class Charles C. ‘‘C.C.’’ Farmington, Connecticut; Lawrenceville, Georgia; Persing, Albany, Louisiana; (2669) Corporal Jacob C. Palmatier, Spring- (2713) Private First Class Henry Paul (2757) Staff Sergeant Dustin W. Peters, El field, Illinois; Kolonia, Pohnpei, Federated States of Micro- Dorado, Kansas; (2670) Corporal Cory L. Palmer, Seaford, nesia; (2758) Specialist Alyssa R. Peterson, Flag- Delaware; (2714) Staff Sergeant Ronald L. Paulsen, staff, Arizona; (2671) Corporal Joshua D. Palmer, Vancouver, Washington; (2759) Lance Corporal Dale G. Peterson, Blandinsville, Illinois; (2715) Corporal Bradford H. Payne, Mont- Redmond, Oregon; (2672) First Lieutenant Joshua M. Palmer, gomery, Alabama; (2760) Captain Justin D. Peterson, Banning, California; (2716) Sergeant Rocky D. Payne, Howell, Davisburg, Michigan; (2673) Lance Corporal Nick J. Palmer, Utah; (2761) Staff Sergeant Brett J. Petriken, Leadville, Colorado; (2717) Master Sergeant William L. Payne, Mundy Township, Michigan; (2674) Specialist Eric C. Palmer, Maize, Otsego, Michigan; (2762) Lance Corporal Neil D. Petsche, Kansas; (2718) Private First Class Cameron K. Lena, Illinois; (2675) Corporal Charles O. Palmer II, Payne, Corona, California; (2763) Staff Sergeant James L. Pettaway, (2719) Private Dylan R. Paytas, Freedom, Manteca, California; Jr., Baltimore, Maryland; Pennsylvania; (2676) Lance Corporal Eric A. Palmisano, (2764) Captain Christopher P. Petty, Vi- (2720) Lance Corporal George J. Payton, Florence, Wisconsin; enna, Virginia; Culver City, California; (2677) Staff Sergeant Dale A. Panchot, (2765) Staff Sergeant Erickson H. Petty, (2721) Specialist Joshua M. Pearce, Northome, Minnesota; Fort Gibson, Oklahoma; Guymon, Oklahoma; (2678) Corporal Jose A. Paniagua-Morales, (2766) Private First Class Jerrick M. Petty, (2722) Sergeant First Class Eric P. Bell Gardens, California; Idaho Falls, Idaho; Pearrow, Peoria, Illinois; (2679) Sergeant Larry Wayne Pankey, Jr., (2767) Private Jonathan R. Pfender, Evans- (2723) Sergeant Brice A. Pearson, Phoenix, Morrison, Colorado; ville, Indiana; Arizona; (2680) Private First Class Phillip J. Pan- (2724) Specialist Samuel F. Pearson, (2768) Corporal Jacob M. Pfister, Buffalo, nier, Washburn, Illinois; Westerville, Ohio; New York; (2681) Corporal Jennifer M. Parcell, Bel (2725) Sergeant Michael Francis Pedersen, (2769) Sergeant Travis D. Pfister, Richland, Air, Maryland; Flint, Michigan; Washington; (2682) Corporal Javier G. Paredes, San An- (2726) Sergeant Michael C. Peek, Chesa- (2770) Lieutenant Colonel Mark P. Phelan, tonio, Texas; peake, Virginia; Green Lane, Pennsylvania; (2683) Sergeant Alfred G. Paredez, Jr., Las (2727) Specialist Gennaro Pellegrini, Jr., (2771) Private First Class Chance R. Phelps, Vegas, Nevada; Philadelphia, Pennsylvania; Clifton, Colorado; (2684) Lance Corporal Bradley L. Parker, (2728) Gunnery Sergeant Javier Obleas- (2772) Sergeant First Class Christopher W. Marion, West Virginia; Prado Pena, Falls Church, Virginia; Phelps, Louisville, Kentucky; (2685) Private First Class Daniel R. Parker, (2729) Staff Sergeant Abraham D. (2773) Specialist Coty J. Phelps, Arizona, Lake Elsinore, California; Penamedina, Los Angeles, California; Kingman; (2686) Sergeant Elisha R. Parker, Taberg/ (2730) Staff Sergeant Jorge Luis Pena-Ro- (2774) Sergeant First Class Gladimir Camden, New York; mero, Fallbrook, California; Philippe, Linden, New Jersey; (2687) Sergeant Evan S. Parker, Arkansas, (2731) Specialist Brian H. Penisten, Fort (2775) Lance Corporal Lawrence R. Kansas; Wayne, Indiana; Philippon, Hartford, Connecticut; (2688) Private First Class James D. Parker, (2732) Sergeant Ross A. Pennanen, Shaw- (2776) Lance Corporal James R. Phillips, Bryan, Texas; nee, Oklahoma; Hillsboro, Florida; (2689) Sergeant Kenya A. Parker, Fairfield, (2733) Staff Sergeant Gregory V. Pen- (2777) Sergeant John P. Phillips, St. Ste- Alabama; nington, Glade Spring, Virginia; phen, South Carolina; (2690) Staff Sergeant Saburant ‘‘Sabe’’ (2734) Specialist Justin O. Penrod, Ma- (2778) Lance Corporal Steven L. Phillips, Parker, Foxworth, Mississippi; homet, Illinois; Chesapeake, Virginia; (2691) Sergeant Richard K. Parker, Phil- (2735) Sergeant Johnny J. Peralez, Jr., (2779) Specialist Michael E. Phillips, Ard- lips, Maine; Kingsville, Texas; more, Oklahoma; (2692) Corporal Tommy L. Parker, Jr., (2736) Sergeant Rafael Peralta, San Diego, (2780) Private First Class Sammie E. Phil- Cleburne, Arkansas; California; lips, Cecilia, Kentucky; (2693) Sergeant Harvey Emmett Parkerson (2737) Corporal Andres H. Perez, Santa (2781) Sergeant Ivory L. Phipps, Chicago, III, Yuba City, California; Cruz, California; Illinois; (2694) Private First Class Larry Parks, Jr., (2738) Sergeant Christopher S. Perez, (2782) Captain Pierre E. Piche, Starksboro, Altoona, Pennsylvania; Hutchinson, Kansas; Vermont; (2695) Sergeant Brandon Allen Parr, West (2739) Second Lieutenant Emily J.T. Perez, (2783) Corporal Joshua D. Pickard, Merced, Valley, Utah; Fort Washington, Maryland; California; (2696) Lance Corporal David S. Parr, Ben- (2740) Private First Class Geoffrey Perez, (2784) Lance Corporal Aaron C. Pickering, son, North Carolina; Los Angeles, California; Marion, Illinois; (2697) Lance Corporal Brian P. Parrello, (2741) Staff Sergeant Hector R. Perez, Cor- (2785) Specialist Randy W. Pickering, West Milford, New Jersey; pus Christi, Texas; Bovey, Minnesota;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00105 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.092 S03APPT1 ccoleman on PRODPC75 with SENATE S2472 CONGRESSIONAL RECORD — SENATE April 3, 2008 (2786) Corporal Jordan C. Pierson, Milford, (2830) Sergeant First Class Daniel J. Pratt, (2874) Lance Corporal Benito A. Ramirez, Connecticut; Youngstown, Ohio; Edinburg, Texas; (2787) Private First Class Lori Ann (2831) Corporal Dean P. Pratt, Stevensville, (2875) Sergeant Christopher Ramirez, Edin- Piestewa, Tuba City, Arizona; Montana; burg (McAllen), Texas; (2788) Chief Warrant Officer Paul J. Pillen, (2832) Sergeant Austin D. Pratt, Cadet, (2876) Specialist Eric U. Ramirez, San Keystone, South Dakota; Missouri; Diego, California; (2789) Corporal Carlos Pineda, Los Angeles, (2833) Lance Corporal Taylor B. Prazynski, (2877) Staff Sergeant Gene Ramirez, San California; Fairfield, Ohio; Antonio, Texas; (2790) Sergeant Foster Pinkston, (2834) Corporal Brian P. Prening, She- (2878) Specialist Ignacio Ramirez, Hender- Warrenton, Georgia; boygan, Wisconsin; son, Nevada; (2791) Sergeant Amanda N. Pinson, St. (2835) Corporal Michael B. Presley, Bates- (2879) Sergeant Reyes Ramirez, Willis, Louis, Missouri; ville, Mississippi; Texas; (2792) Captain Dennis L. Pintor, Lima, (2836) Specialist Aaron L. Preston, Dallas, (2880) Private First Class William C. Rami- Ohio; Texas; rez, Portland, Oregon; (2793) Staff Sergeant Robert R. Pirelli, (2837) Private First Class James E. (2881) Lance Corporal Rogelio Ramirez, Franklin, Massachusetts; Prevete, Whitestone, New York; Pasadena, California; (2794) Specialist James H. Pirtle, La Mesa, (2838) Private Kelley Stephen Prewitt, Bir- (2882) Specialist Aleina Ramirezgonzalez, New Mexico; mingham, Alabama; Hormigueros, Puerto Rico; (2795) Private First Class Michael Patrick (2839) Sergeant Tyler D. Prewitt, Phoenix, (2883) Corporal Julian A. Ramon, Flushing, Pittman, Davenport, Iowa; Arizona; New York; (2796) Staff Sergeant Raymond J. Plouhar, (2840) Private First Class James W. Price, (2884) Private First Class Christopher Lake Orion, Michigan; Cleveland, Tennessee; Ramos, Albuquerque, New Mexico; (2797) Private First Class Derek J. Plow- (2841) Lance Corporal Jonathan Kyle Price, (2885) Lance Corporal Hector Ramos, Au- man, Everton, Arkansas; Woodlawn, Illinois; rora, Illinois; (2798) Sergeant Adam J. Plumondore, (2842) First Lieutenant Timothy E. Price, (2886) Sergeant Miguel A. Ramos, Maya- Gresham, Oregon; Midlothian, Virginia; guez, Puerto Rico; (2799) Specialist Eric J. Poelman, Racine, (2843) Private First Class Tina M. Priest, (2887) Specialist Tamarra J. Ramos, Wisconsin; Austin, Texas; Quakertown, Pennsylvania; (2800) Private First Class Jason T. (2844) Sergeant First Class James D. (2888) Private First Class Brandon Ramsey, Poindexter, San Angelo, Texas; Priestap, Hardwood, Michigan; Calumet City, Illinois; (2801) Second Lieutenant Frederick Eben (2845) Chief Warrant Officer John R. (2889) Private Carson J. Ramsey, Pokorney, Jr., Nye, Nevada; Priestner, Pennsylvania; Winkelman, Arizona; (2802) Staff Sergeant Andrew R. Pokorny, (2846) Corporal Kevin William Prince, Plain (2890) Sergeant Christopher J. Ramsey, Naperville, Illinois; City, Ohio; Batchelor, Louisiana; (2803) Specialist Justin W. Pollard, Foot- (2847) Sergeant First Class Neil A. Prince, (2891) Specialist David J. Ramsey, Tacoma, hill Ranch, California; Baltimore, Maryland; Washington; (2804) Specialist Jessy G. Pollard, Spring- (2848) Lance Corporal Michael S. Probstm, (2892) Private First Class Joshua A. field, Missouri; Irvine, California; Ramsey, Defiance, Ohio; (2805) Specialist Larry E. Polley, Jr., Cen- (2849) Second Lieutenant Mark J. Procopio, (2893) Staff Sergeant Jason C. Ramseyer, ter, Texas; Stowe, Vermont; Lenoir, North Carolina; (2806) Sergeant Joe Polo, Opalocka, Flor- (2850) Corporal Scott J. Procopio, Saugus, (2894) Sergeant Edmond Lee Randle, Jr., ida; Massachusetts; Carol City, Florida; (2807) Specialist Vincent J. Pomante III, (2851) Sergeant Joseph E. Proctor, Indian- (2895) Private First Class Cleston C. Raney, Westerville, Ohio; apolis, Indiana; Rupert, Idaho; (2808) Sergeant Lorenzo Ponce Ruiz, El (2852) Lance Corporal Mathew D. Puckett, (2896) Staff Sergeant Jose C. Rangel, Fres- Paso, Texas; Mason, Texas; no, California; (2809) Corporal Christopher L. Poole, Jr., (2853) Sergeant Jaror C. Puello-Coronado, (2897) Staff Sergeant Ray Rangel, San An- Mount Dora, Florida; Pocono Summit, Pennsylvania; tonio, Texas; (2810) Corporal Robert C. Pope II, East (2854) Staff Sergeant Kenneth I. Pugh, (2898) Specialist Shawn Rankinen, Inde- Islip, New York; Houston, Texas; pendence, Missouri; (2811) Sergeant Ralph N. Porras, Merrill, (2855) Sergeant Robert Shane Pugh, Merid- (2899) Corporal Nicholas P. Rapavi, Spring- Michigan; ian, Mississippi; field, Virginia; (2812) Sergeant Benjamin B. Portell, Ba- (2856) Staff Sergeant George A. Pugliese, (2900) Captain Patrick Marc M. Rapicault, kersfield, California; Carbondale, Pennsylvania; St. Augustine, Florida; (2813) Lance Corporal Robert G. Posivio III, (2857) Staff Sergeant Richard T. Pummill, (2901) Sergeant Sameer A. M. Rateb, Abse- Sherburn, Minnesota; Cincinnati, Ohio; con, New Jersey; (2814) Staff Sergeant Kenneth B. Pospisil, (2858) Corporal Michael A. Pursel, Clinton, (2902) Captain Gregory A. Ratzlaff, Olym- Andover, Minnesota; Utah; pia, Washington; (2815) Lance Corporal Michael V. Postal, (2859) Sergeant Christopher M. Pusateri, (2903) Captain Nathan R. Raudenbush, Glen Oaks, New York; Corning, New York; Pennsylvania; (2816) Lance Corporal Christopher M. (2860) Corporal Cody A. Putnam, Lafayette, (2904) Specialist Rel A. Ravago IV, Glen- Poston, Glendale, Arizona; Indiana; dale, California; (2817) Private First Class Michael J. (2861) Lance Corporal Louis W. Qualls, (2905) First Lieutenant Jeremy E. Ray, Potocki, Baltimore, Maryland; Temple, Texas; Houston, Texas; (2818) Sergeant Darrin K. Potter, Louis- (2862) Sergeant Marquees A. Quick, Hoover, (2906) Sergeant Thomas C. Ray II, ville, Kentucky; Alabama; Weaverville, North Carolina; (2819) Private First Class David L. Potter, (2863) Corporal Richard O. Quill III, (2907) Specialist Jared J. Raymond, Johnson City, Tennessee; Roswell, Georgia; Swampscott, Massachusetts; (2820) Private First Class Jerome J. Potter, (2864) Staff Sergeant Michael B. Quinn, (2908) Sergeant Pierre A. Raymond, Law- Tacoma, Washington; Tampa, Florida; rence, Massachusetts; (2821) Sergeant Christopher S. Potts, (2865) Specialist Bryan L. Quinton, Sand (2909) Specialist Omead H. Razani, Los An- Tiverton, Rhode Island; Springs, Oklahoma; geles, California; (2822) Sergeant Lynn Robert Poulin, Sr., (2866) Corporal Stephen J. Raderstorf, Peo- (2910) Sergeant Brandon Michael Read, Freedom, Maine; ria, Arizona; Greeneville, Tennessee; (2823) Corporal Chad W. Powell, West Mon- (2867) Lance Corporal Mourad Ragimov, (2911) Sergeant Regina C. Reali, Fresno, roe, Louisiana; San Diego, California; California; (2824) Specialist James E. Powell, Radcliff, (2868) Sergeant Joseph A. Rahaim, Laurel, (2912) Corporal William J. Rechenmacher, Kentucky; Mississippi; Jacksonville, Florida; (2825) Corporal Kyle W. Powell, Colorado (2869) Lance Corporal Carl L. Raines II, (2913) Lance Corporal Jason C. Redifer, Springs, Colorado; Coffee, Alabama; Stuarts Draft, Virginia; (2826) Corporal Willard M. Powell-Kerchief, (2870) Lance Corporal Rhonald Dain (2914) Specialist Matthew K. Reece, Har- Evansville, Indiana; Rairdan, Castroville/San Antonio, Texas; rison, Arkansas; (2827) Lance Corporal Caleb J. Powers, (2871) Lance Corporal Branden P. Ramey, (2915) Lance Corporal Aaron H. Reed, Chil- Manfield, Washington; Boone, Illinois; licothe, Ohio; (2828) Private Joshua Francis Powers, (2872) Staff Sergeant Richard P. Ramey, (2916) Private First Class Christopher J. Skiatook, Oklahoma; Canton, Ohio; Reed, Craigmont, Idaho; (2829) Staff Sergeant Terry W. Prater, (2873) Sergeant Angel De Jesus Lucio Ra- (2917) Staff Sergeant Jonathan Ray Reed, Speedwell, Tennessee; mirez, Pacoima, California; Krotz Springs/Opelousa, Louisiana;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00106 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.093 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2473 (2918) Private First Class Ryan E. Reed, (2963) First Lieutenant Daniel P. Riordan, (3007) Corporal Yull Estrada Rodriguez, Colorado Springs, Colorado; St. Louis, Missouri; Alegre Lajas, Puerto Rico; (2919) Sergeant Tatjana Reed, Fort Camp- (2964) Sergeant Duane Roy Rios, Ham- (3008) Sergeant Ricardo X. Rodriguez, Are- bell, Kentucky; mond, Indiana; cibo, Puerto Rico; (2920) Gunnery Sergeant Edward T. Reeder, (2965) Private First Class Hernando Rios, (3009) Specialist Jaime Rodriguez, Oxnard, Camp Verde, Arizona; Queens, New York; California; (2921) Staff Sergeant Aaron T. Reese, (2966) Master Sergeant Julian Ingles Rios, (3010) Specialist Dominic N. Rodriguez, Reynoldsburg, Ohio; Anasco, Puerto Rico; Klamath Falls, Oregon; (2922) Sergeant Gary L. Reese, Jr., Ashland (2967) Captain Russell Brian Rippetoe, (3011) Lance Corporal Juan Rodrigo City, Tennessee; Avarda, Colorado; Rodriguez, Velasco Laredo/El Cenizo, Texas; (2923) Specialist Joshua H. Reeves, (2968) Private First Class Henry C. Risner, (3012) Specialist Luis O. Rodriguez- Watkinsville, Georgia; Golden, Colorado; Contrera, Allentown, Pennsylvania; (2924) Sergeant James J. Regan, (2969) Specialist Brian E. Ritzberg, New (3013) Private First Class George R. Roehl, Manhasset, New York; York, New York; Jr., Manchester, New Hampshire; (2925) Specialist Jeremy F. Regnier, Little- (2970) Corporal Jonathan Rivadeneira, (3014) Sergeant First Class Gregory S. Rog- ton, New Hampshire; Jackson Heights, New York; ers, Cincinnati, Ohio; (2926) Sergeant First Class Randall Scott (2971) Specialist Eric G. Palacios Rivera, (3015) Corporal Jeffry A. Rogers, Oklahoma Rehn, Longmont, Colorado; Atlantic City, New Jersey; City, Oklahoma; (2927) Staff Sergeant Gavin B. Reinke, (2972) Sergeant First Class Jose A. Rivera, (3016) Specialist Nicholas K. Rogers, Pueblo, Colorado; Bayamon, Puerto Rico; Deltona, Florida; (2928) Sergeant Brendon Curtis Reiss, Cas- (2973) Specialist Michael D. Rivera, Brook- (3017) Specialist Philip G. Rogers, Gresh- per, Wyoming; lyn, New York; am, Oregon; (2929) Corporal Kyle J. Renehan, Oxford, (2974) Staff Sergeant Rafeal Alicea Rivera, (3018) Staff Sergeant Jonathan Rojas, Ham- Pennsylvania; Bayamon, Puerto Rico; mond, Indiana; (2930) Staff Sergeant George S. Rentschler, (2975) Staff Sergeant Gregory Rivera- (3019) Private First Class Kenny D. Rojas, Louisville, Kentucky; Santiago, St. Croix, Virgin Islands; Pembroke Pines, Florida; (2931) Lance Corporal Justin D. Reppuhn, (2976) Specialist Jose A. Rivera-Serrano, (3020) Corporal Michael M. Rojas, Fresno, Hemlock, Michigan; Mayaguez, Puerto Rico; California; (2932) Captain Mark T. Resh, Fogelsville, (2977) Staff Sergeant Milton Rivera-Vargas, (3021) Specialist Cristian Rojas-Gallego, Pennsylvania; Boqueron, Puerto Rico; Loganville, Georgia; (2933) Sergeant Luis R. Reyes, Aurora, Col- (2978) Corporal John Travis Rivero, Tampa, (3022) Staff Sergeant Robb L. Rolfing, Mil- orado; Florida; ton, Massachusetts; (2934) Private First Class Mario A. Reyes, (2979) Specialist Frank K. Rivers, Jr., (3023) Specialist Justin A. Rollins, New- Las Cruces, New Mexico; Woodbridge, Virginia; port, New Hampshire; (2935) Specialist Daniel F. Reyes, San (2980) Private First Class Christopher T. (3024) Specialist Alexis Roman-Cruz, Bran- Diego, California; Riviere, Cooper City, Florida; don, Florida; (2936) Private First Class Seferino J. (2981) Staff Sergeant Timothy J. Roark, (3025) Staff Sergeant Vincenzo Romeo, Reyna, Phoenix, Arizona; Houston, Texas; Lodi, New Jersey; (2937) Sergeant Sean C. Reynolds, E. Lan- (2982) Sergeant Thomas D. Robbins, Sche- (3026) Private First Class Ramon Romero, sing, Michigan; nectady, New York; Huntington Park, California; (2938) Staff Sergeant Steven C. Reynolds, (2983) Sergeant Todd James Robbins, (3027) Specialist Joshua G. Romero, Crow- Jordan, New York; Pentwater, Michigan; ley, Texas; (2939) Staff Sergeant Stanley B. Reynolds, (2984) Staff Sergeant William T. Robbins, (3028) Sergeant Brian M. Romines, Simp- Rock, West Virginia; North Little Rock, Arkansas; son, Illinois; (2940) Staff Sergeant Edward C. Reynolds, (2985) Lance Corporal Anthony P. Roberts, (3029) Specialist Edwin William Roodhouse, Jr., Groves, Texas; Bear, Delaware; San Jose, California; (2941) Lance Corporal Rafael (2986) Lance Corporal Bob W. Roberts, New- (3030) Sergeant First Class Robert E. Roo- Reynosasuarez, Santa Ana, California; port, Oregon; ney, Nashua, New Hampshire; (2942) Sergeant Yadir G. Reynoso, Wapato, (2987) Corporal Robert D. Roberts, Winter (3031) Corporal Timothy D. Roos, Delhi, Washington; Park, Florida; Ohio; (2943) Specialist David L. Rice, Sioux City, (2988) Lance Corporal Trevor A. Roberts, (3032) Private First Class Angel Rosa, Iowa; Oklahoma City, Oklahoma; South Portland, Maine; (2944) Corporal Demetrius Lamont Rice, (2989) Corporal Allen C. Roberts, Arcola, Il- (3033) Specialist Alexander R. Rosa, Or- Ortonville, Minnesota; (2945) Corporal Bryan J. Richardson, Sum- linois; lando, Florida; mersville, West Virginia; (2990) Sergeant Derek T. Roberts, Gold (3034) Corporal Randal Kent Rosacker, San (2946) Private First Class Stephen K. Rich- River, California; Diego, California; ardson, Bridgeport, Connecticut; (2991) Sergeant Michael T. Robertson, (3035) Corporal Benjamin S. Rosales, Hous- (2947) Staff Sergeant William D. Richard- Houston, Texas; ton, Texas; son, Houston, Texas; (2992) Corporal Jeremiah W. Robinson, (3036) Staff Sergeant Victor A. (2948) Corporal William D. Richardson, Mesa, Arizona; Rosaleslomeli, Westminster, California; Moreno Valley, California; (2993) Sergeant Lizbeth Robles Vega, Baja, (3037) Specialist Jose E. Rosario, St. Croix, (2949) Sergeant Ariel Rico, El Paso, Texas; Puerto Rico; Virgin Islands; (2950) Sergeant Kenneth L. Ridgley, Olney, (2994) Staff Sergeant Joseph E. Robsky, (3038) Private First Class Richard H. Rosas, Illinois; Jr., Elizaville, New York; Saint Louis, Michigan; (2951) Specialist Jeremy L. Ridlen, Paris, (2995) Sergeant Moses Daniel Rocha, (3039) Corporal Christopher D. Rose, San Illinois; Roswell, New Mexico; Francisco, California; (2952) Private First Class Andrew G. (2996) Sergeant Nathaniel S. Rock, To- (3040) Sergeant Scott C. Rose, Fayetteville, Riedel, Northglenn, Colorado; ronto, Ohio; Kentucky; (2953) Private First Class Nicholas E. (2997) Private First Class Marlin T. (3041) Specialist Adam J. Rosema, Pasa- Riehl, Shiocton, Wisconsin; Rockhold, Hamilton, Ohio; dena, California; (2954) Sergeant James D. Riekena, (2998) Specialist Ricky W. Rockholt, Jr., (3042) Sergeant Thomas Chad Rosenbaum, Redmond, Washington; Winston, Oregon; Hope, Arkansas; (2955) Staff Sergeant David G. Ries, Clark, (2999) Petty Officer Second Class David (3043) Sergeant Randy S. Rosenberg, Ber- Washington; Sean Roddy, Aberdeen, Maryland; lin, New Hampshire; (2956) Sergeant Greg N. Riewer, Frazee, (3000) Sergeant John D. Rode, Pineville, (3044) Staff Sergeant Eric Ross, Minnesota; North Carolina; Kenduskeag, Maine; (2957) Private First Class Wesley R. Riggs, (3001) Major Alan G. Rodgers, Hampton, (3045) Specialist Marco D. Ross, Memphis, Baytown, Texas; Florida; Tennessee; (2958) Corporal Garrywesley Tan Rimes, (3002) Private Damian Lopez Rodriguez, (3046) Private First Class Jonathan M. Santa Maria, California; Tucson, Arizona; Rossi, Safety Harbor, Florida; (2959) Private First Class Diego Fernando (3003) Private First Class Jose F. Gonzalez (3047) Sergeant Lawrence A. Roukey, Rincon, Conyers, Georgia; Rodriguez, Norwalk, California; Westbrook, Maine; (2960) Specialist Michelle R. Ring, Martin, (3004) Staff Sergeant Joseph E. Rodriguez, (3048) Sergeant David L. Roustum, West Tennessee; Las Cruces, New Mexico; Seneca, New York; (2961) Corporal Steven A. Rintamaki, (3005) Specialist Michael J. Rodriguez, San- (3049) Petty Officer First Class Gary Lynnwood, Washington; ford, North Carolina; Rovinski, Roseville, Illinois; (2962) Sergeant First Class Matthew I. (3006) Corporal Robert Marcus Rodriguez, (3050) Captain Alan Rowe, Hagerman, Pionk, Superior, Wisconsin; Queens, New York; Idaho;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00107 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.093 S03APPT1 ccoleman on PRODPC75 with SENATE S2474 CONGRESSIONAL RECORD — SENATE April 3, 2008 (3051) Specialist Brandon Jacob Rowe, Ros- (3095) Captain Benjamin Wilson Sammis, (3139) Sergeant Kurt D. Schamberg, Euclid, coe, Illinois; Rehobeth, Massachusetts; Ohio; (3052) Sergeant Michael D. Rowe, New Port (3096) Specialist Sonny Gene Sampler, (3140) Captain Robert C. Scheetz, Jr., Richey, Florida; Oklahoma City, Oklahoma; Dothan, Alabama; (3053) Sergeant Roger Dale Rowe, Bon (3097) Private First Class Joey T. Sams II, (3141) Sergeant First Class Daniel E. Aqua, Tennessee; Spartanburg, South Carolina; Scheibner, Muskegon, Michigan; (3054) Second Lieutenant Jonathan D. (3098) Specialist Dennis K. Samson, Jr., (3142) Staff Sergeant Jens E. Schelbert, Rozier, Katy, Texas; Hesperia, Michigan; New Orleans, Louisiana; (3055) Second Lieutenant Charles R. (3099) Private First Class Tenzin L. (3143) Staff Sergeant Daniel R. Schelle, An- Rubado, Clearwater, Florida; Samten, Prescott, Arizona; tioch, California; (3056) Sergeant Isela Rubalcava, El Paso, (3100) Sergeant Princess Samuels, (3144) Corporal Christopher G. Scherer, Texas; Mitchellville, Maryland; East Northport, New York; (3057) Specialist Jose A. Rubio Hernandez, (3101) Lance Corporal Emilian D. Sanchez, (3145) Lance Corporal Daniel R. Scherry, Mission, Texas; Santa Ana Pueblo, New Mexico; Rocky River, Ohio; (3058) Sergeant David A. Ruhren, North (3102) Private First Class Enrique Henry (3146) Private First Class Jason D. Stafford, Virginia; Sanchez, Garner, North Carolina; Scheuerman, Lynchburg, Virginia; (3059) Specialist Jose L. Ruiz, Brentwood, (3103) Private First Class Oscar Sanchez, (3147) Lance Corporal Nickolas David New York; Modesto, California; Schiavoni, Haverhill, Massachusetts; (3060) Petty Officer Third Class Manuel A. (3104) Sergeant Paul T. Sanchez, Irving, (3148) Sergeant First Class Richard L. Ruiz, Federalsburg, Maryland; Texas; Schild, Tabor, South Dakota; (3061) Lance Corporal Gregory P. Rund, (3105) Staff Sergeant Virrueta A. Sanchez, (3149) Lance Corporal Juan M. Garcia Littleton, Colorado; Houston, Texas; Schill, Grants Pass, Oregon; (3062) Specialist Gregory B. Rundell, (3106) Private First Class Junior Cedeno (3150) Corporal Jonathan E. Schiller, Ramsey, Minnesota; Sanchez, Miami, Florida; Ottumwa, Iowa; (3063) Specialist Luke S. Runyan, Spring (3107) Lance Corporal Efrain Sanchez, Jr., (3151) Captain Rhett W. Schiller, Water- Grove, Pennsylvania; Port Chester, New York; ford, Wisconsin; (3064) Staff Sergeant Michael L. Ruoff, Jr., (3108) Specialist Gregory Paul Sanders, Ho- (3152) Specialist Justin B. Schmidt, Bra- Yosemite, California; bart, Indiana; denton, Florida; (3065) Private First Class Aaron J. Rusin, (3109) Staff Sergeant Ronnie L. Sanders, (3153) Corporal Peter W. Schmidt, Eureka, Johnstown, Pennsylvania; Thibodaux, Louisiana; California; (3066) Captain Blake H. Russell, Fort (3110) First Lieutenant Ryan T. Sanders, (3154) Lance Corporal John T. Schmidt III, Worth, Texas; Richardson, Texas; Brookfield, Connecticut; (3067) Sergeant John W. Russell, Portland, (3111) Sergeant Christopher A. Sanders, (3155) Sergeant Joshua A. Schmit, Willmar, Texas; Roswell, New Mexico; Minnesota; (3068) Specialist Ryan D. Russell, Elm City, (3112) Private Justin T. Sanders, Watson, (3156) Corporal Joshua M. Schmitz, Spen- North Carolina; Louisiana; cer, Wisconsin; (3069) Lance Corporal Andrew D. Russoli, (3113) Sergeant Frank M. Sandoval, Yuma, (3157) Sergeant Jacob S. Schmuecker, At- Greensboro, North Carolina; Arizona; kinson, Nebraska; (3070) Sergeant Monta S. Ruth, Winston- (3114) Private First Class Leroy Sandoval, (3158) Specialist Jeremiah W. Schmunk, Salem, North Carolina; Jr., Houston, Texas; Richland/Kennewick, Washington; (3071) First Lieutenant Christopher N. (3115) Lance Corporal Felipe D. Sandoval- (3159) Specialist Matthew E. Schneider, Rutherford, Newport, Ohio; Flores, Los Angeles, California; Gorham, New Hampshire; (3072) Corporal Marc T. Ryan, Gloucester, (3116) Sergeant Matthew J. Sandri, (3160) Private First Class Sean M. Schnei- City New Jersey; Shamokin, Pennsylvania; der, Janesville, Wisconsin; (3073) First Lieutenant Timothy Louis (3117) Staff Sergeant Barry Sanford, Sr., (3161) Seaman Apprentice Shayna Ann Ryan, Aurora, Illinois; Aurora, Colorado; Schnell, Tell City, Indiana; (3162) Sergeant Anthony J. Schober, Reno, (3074) Specialist Lyle W. Rymer II, Fort (3118) Lance Corporal Daniel J. Santee, Nevada; Smith, Arkansas; Mission Viejo, California; (3163) Specialist Collin R. Schockmel, (3075) Sergeant Yevgeniy Ryndych, Brook- (3119) Sergeant Ed Santini, Toa Baja, Puer- Richwood, Texas; lyn, New York; to Rico; (3164) Private First Class Brian J. Schoff, (3076) Sergeant Corey J. Rystad, Red Lake (3120) First Lieutenant Neil Anthony Manchester, Tennessee; Falls, Minnesota; Santoriello, Verona, Pennsylvania; (3165) Lance Corporal Michael D. Scholl, (3077) Corporal Thomas E. Saba, Toms (3121) Chief Warrant Officer Isaias E. Lincoln, Nebraska; River, New Jersey; Santos, Ancon, Panama; (3166) Specialist Jon M. Schoolcraft III, (3078) Chief Warrant Officer (CW2) Scott A. (3122) Corporal Jeremiah S. Santos, Minot, Wapakoneta, Ohio; Saboe, Willow Lake, South Dakota; North Dakota; (3167) Staff Sergeant Christopher J. (3079) Sergeant Dominic J. Sacco, Albany, (3123) Corporal Jonathan J. Santos, Bel- Schornak, Hoover, Alabama; New York; lingham, Washington; (3168) Corporal Dustin H. Schrage, Brevard, (3080) First Sergeant Carlos N. Saenz, Las (3124) Specialist Luis D. Santos, Rialto, Florida; Vegas, Nevada; California; (3169) Major Matthew E. Schram, Brook- (3081) Specialist Lance S. Sage, Hempstead, (3125) Staff Sergeant Fernando Santos, San field, Wisconsin; New York; Antonio, Texas; (3170) Lance Corporal Brian K. Schramm, (3082) Specialist Rasheed Sahib, Brooklyn, (3126) Private First Class Brandon R. Sapp, Rochester, New York; New York; Lake Worth, Florida; (3171) Lance Corporal Edward August (3083) Lance Corporal Gael Saintvil, Or- (3127) Hospital Corpsman Charles O. Sare, Schroeder II, Columbus, Ohio; lando/Orange, Florida; Hemet, California; (3172) Corporal Nathan A. Schubert, Cher- (3084) Sergeant Steve M. Sakoda, Hilo, Ha- (3128) Staff Sergeant Cameron B. Sarno, okee, Iowa; waii; Waipahu, Hawaii; (3173) Corporal Brandon S. Schuck, Safford, (3085) Corporal Rudy Salas, Baldwin Park, (3129) Staff Sergeant Scott Douglas Sather, Arizona; California; Clio, Michigan; (3174) Special Agent Nathan J. Schuldheiss, (3086) Private First Class Ricky Salas, Jr., (3130) Private Oscar Sauceda, Del Rio, Newport, Rhode Island; Roswell, New Mexico; Texas; (3175) Specialist Christian C. Schultz, (3087) Corporal William I. Salazar, Las (3131) Private Anthony J. Sausto, Lake Colleyville, Texas; Vegas, Nevada; Havasu City, Arizona; (3176) Captain David E. Schultz, Illinois; (3088) Private First Class Bruce C. Salazar, (3132) Lance Corporal Jeremiah E. Savage, (3177) Lance Corporal Darrell J. Schumann, Jr., Tracy, California; Livingston, Tennessee; Hampton, Virginia; (3089) Sergeant First Class Rudy A. (3133) Sergeant Stephen P. Saxton, (3178) Sergeant Jason A. Schumann, Salcido, Ontario, California; Temecula, California; Hawley, Minnesota; (3090) Specialist Adriana N. Salem, Elk (3134) Specialist Phillip N. Sayles, Jack- (3179) Private First Class Benjamin C. Grove Village, Illinois; sonville, Arkansas; Schuster, Williamsville, New York; (3091) Sergeant First Class David J. Salie, (3135) Sergeant Paul A. Saylor, Norcross, (3180) Staff Sergeant Coby G. Schwab, Puy- Columbus, Georgia; Georgia; allup, Washington; (3092) Specialist Eric D. Salinas, Houston, (3136) Lance Corporal Michael P. Scar- (3181) Lance Corporal Michael A. Schwarz, Texas; borough, Washington, Georgia; Carlstadt, New Jersey; (3093) Chief Warrant Officer Richard Mat- (3137) Staff Sergeant William D. Scates, (3182) Petty Officer Second Class Joseph C. thew ‘‘Matt’’ Salter, Cypress, Texas; Oklahoma City, Oklahoma; Schwedler, Crystal Falls, Michigan; (3094) First Lieutenant Edward M. Saltz, (3138) Sergeant Kenneth J. Schall, Peoria, (3183) Master Sergeant David A. Scott, Bigfork, Montana; Arizona; Union, Ohio;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00108 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.093 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2475 (3184) Lance Corporal Joshua A. Scott, (3228) Staff Sergeant Alan W. Shaw, Little (3272) Specialist Windell J. Simmons, Hop- Tunnel Hill, Georgia; Rock, Arkansas; kinsville, Kentucky; (3185) Chief Warrant Officer (CW2) Joshua (3229) Sergeant Daniel J. Shaw, West Sen- (3273) Staff Sergeant Chad J. Simon, Michael Scott, Sun Prairie, Wisconsin; eca, New York; Monona/Madison, Wisconsin; (3186) Private First Class Kerry D. Scott, (3230) Major Kevin M. Shea, Washington, (3274) Lance Corporal Aaron William Si- Mount Vernon, Washington; District of Columbia; mons, Modesto, California; (3187) Staff Sergeant Rickey Scott, Colum- (3231) Corporal Timothy M. Shea, Sonoma, (3275) Lance Corporal Abraham Simpson, bus, Georgia; California; Chino, California; (3188) Specialist Stephen M. Scott, Lawton, (3232) Specialist Casey Sheehan, Vacaville, (3276) Sergeant Jacob M. Simpson, Hood Oklahoma; California; River/Ashland, Oregon; (3189) Corporal Bryan J. Scripsick, Wayne, (3233) Sergeant Kevin F. Sheehan, Milton, (3277) Sergeant Jonathan J. Simpson, Oklahoma; Vermont; Rockport, Texas; (3190) Corporal Aaron L. Seal, Elkhart, In- (3234) Sergeant Ronnie L. ‘‘Rod’’ Shelley, (3278) Sergeant Christopher C. Simpson, diana; Sr., Valdosta, Georgia; Hampton, Virginia; (3191) Staff Sergeant Stephen A. Seale, (3235) Corporal Jimmy Lee Shelton, Lehigh (3279) Private First Class Charles M. Sims, Grafton, West Virginia; Acres, Florida; Miami, Florida; (3192) Private First Class Timothy J. Sea- (3236) Private Randol S. Shelton, Schiller (3280) Lance Corporal Justin D. Sims, Cov- mans, Jacksonville, Florida; Park, Illinois; ington, Kentucky; (3193) Lance Corporal Myles Cody (3237) Chief Warrant Officer Steven E. (3281) Captain Sean P. Sims, El Paso, Sebastien, Opelousas, Louisiana; Shepard, Purcell, Oklahoma; Texas; (3194) Sergeant First Class Benjamin L. (3238) Private First Class Adam R. Shep- (3282) Lance Corporal John T. Sims, Jr., Sebban, Chattanooga, Tennessee; herd, Somerville, Ohio; Alexander City, Alabama; (3195) Captain Robert M. Secher, German- (3239) Sergeant Daniel Michael Shepherd, (3283) Sergeant Isiah J. Sinclair, town, Tennessee; Elyria, Ohio; Natchitoches, Louisiana; (3196) Sergeant Michael T. Seeley, Fred- (3240) Staff Sergeant Kristopher L. Shep- (3284) Sergeant Uday Singh, Lake Forest, ericton, Canada; herd, Lynchburg, Virginia; Illinois; (3197) First Lieutenant Aaron N. Seesan, (3241) Specialist Joshua D. Sheppard, (3285) Specialist Channing G. Singletary, Massillon, Ohio; Quinton, Oklahoma; Sylvester, Georgia; (3198) Lance Corporal Juan E. Segura, (3242) Sergeant Alan David Sherman, (3286) Sergeant Todd A. Singleton, Mus- Homestead, Florida; Wanamassa, New Jersey; kegon, Michigan; (3199) Sergeant Leroy Segura, Jr., Clovis, (3243) Lieutenant Colonel Anthony L. Sher- (3287) Private First Class Steven F. Sirko, New Mexico; man, Pottstown, Pennsylvania; Portage, Indiana; (3200) First Lieutenant Robert Seidel III, (3244) Sergeant Stephen R. Sherman, Nep- (3288) Specialist Aaron J. Sissel, Tipton, Emmitsburg, Maryland; tune, New Jersey; Iowa; (3201) Specialist Tyler R. Seideman, Lin- (3245) Sergeant James Alexander Sherrill, (3289) Private First Class Christopher A. coln, Arkansas; Ekron, Kentucky; Sisson, Oak Park, Illinois; (3202) Specialist Marc S. Seiden, Brigan- (3246) First Lieutenant Andrew C. Shields, (3290) Petty Officer Third Class David tine, New Jersey; Campobello, South Carolina; Sisung, Phoenix, Arizona; (3203) Captain Christopher Scott Seifert, (3247) Sergeant Jonathan B. Shields, At- (3291) Staff Sergeant Garth D. Sizemore, Easton, Pennsylvania; lanta, Georgia; Mount Sterling, Kentucky; (3204) Private First Class Anthony P. Seig, (3248) Specialist Bradley N. Shilling, (3292) Staff Sergeant Bradley J. Skelton, Sunman, Indiana; Stanwood, Michigan; Gordonville, Missouri; (3205) Sergeant Carl Leonard Seigart, San (3249) Private First Class Darrell W. Shipp, (3293) Private First Class Nicholas M. Skin- Luis Obispo, California; San Antonio, Texas; ner, Davenport, Iowa; (3206) Private First Class Dustin M. (3250) Lance Corporal Jeremy S. Shock, (3294) Private Michael J. Slater Scott, Sekula, Edinburg, Texas; Tiffin, Ohio; Depot, West Virginia; (3207) Staff Sergeant John T. Self, (3251) Corporal Jared M. Shoemaker, Tulsa, (3295) Private First Class Ben Slaven, Pontotoc, Mississippi; Oklahoma; Plymouth, Nebraska; (3208) Specialist Dennis L. Sellen, Jr., (3252) Staff Sergeant Russell K. Shoe- (3296) First Lieutenant Brian D. Slavenas, Newhall, California; maker, Sweet Springs, Missouri; Genoa, Illinois; (3209) Sergeant Bernard L. Sembly, Bossier (3253) Private First Class Harry N. (3297) Staff Sergeant Russell L. Slay, Hum- City, Louisiana; Shondee, Jr., Ganado, Arizona; ble, Texas; (3210) Lance Corporal Matthew K. Serio, (3254) Lance Corporal Brad S. Shuder, El (3298) Sergeant Eric W. Slebodnik, Green- North Providence, Rhode Island; Dorado, California; field Township, Pennsylvania; (3211) Sergeant Juan M. Serrano, Manati, (3255) Captain James A. Shull, Kirkland, (3299) Private Brandon Ulysses Sloan, Puerto Rico; Washington; Cleveland, Ohio; (3212) Lance Corporal Nazario Serrano, Ir- (3256) First Lieutenant Dustin M. (3300) Lance Corporal Richard Patrick Slo- ving, Texas; Shumney, Benicia/Vallejo, California; cum, Saugus, California; (3213) Sergeant Daniel L. Sesker, Ogden, (3257) Private First Class Kenneth L. (3301) Lance Corporal Thomas Jonathan Iowa; Sickels, Apple Valley, California; Slocum, Adams, Colorado; (3214) Lance Corporal Darin T. Settle, Hen- (3258) Lance Corporal Dustin L. Sides, (3302) Private First Class Corey L. Small, ley, Missouri; Yakima, Washington; East Berlin, Pennsylvania; (3215) Private First Class Robert J. Settle, (3259) Captain Todd M. Siebert, Baden, (3303) Specialist Erich S. Smallwood, Owensboro, Kentucky; Pennsylvania; Trumann, Arkansas; (3216) Sergeant Raymond S. Sevaaetasi, (3260) Specialist Eric R. Sieger, Layton, (3304) Lieutenant Colonel Albert E. Smart, Pago Pago, American Samoa; Utah; San Antonio, Texas; (3217) Lance Corporal Devon Paul Sey- (3261) Private First Class Thomas C. (3305) Sergeant Keith L. Smette, Makoti, mour, St. Louisville, Ohio; Siekert, Lovelock, Nevada; North Dakota; (3218) Staff Sergeant Michael B. (3262) Specialist Ashley Sietsema, Melrose (3306) Sergeant Aaron A. Smith, Killeen, Shackelford, Grand Junction, Colorado; Park, Illinois; Texas; (3219) Sergeant Edward W. Shaffer, Mont (3263) Specialist John P. Sigsbee, (3307) Lance Corporal Antoine D. Smith, Alto, Pennsylvania; Waterville, New York; Orlando, Florida; (3220) Specialist Jason A. Shaffer, Derry, (3264) Sergeant William M. Sigua, Los (3308) Captain Benedict J. Smith, Monroe Pennsylvania; Altos Hills, California; City, Missouri; (3221) Private First Class Jeffrey Shaffer, (3265) Sergeant Alfred Barton Siler, Duff, (3309) Specialist Benjamin A. Smith, Hud- Harrison, Arkansas; Tennessee; son, Wisconsin; (3222) Staff Sergeant Wentz Jerome Henry (3266) Sergeant Alfredo B. Silva, Calexico, (3310) Sergeant Benjamin K. Smith, Shanaberger III, Naples, Florida; California; Carterville, Illinois; (3223) Private First Class Jeremy R. (3267) Corporal Erik Hernandez, Silva (3311) Private First Class Brandon C. Shank, Jackson, Missouri; Chula Vista, California; Smith, Washington, Arkansas; (3224) First Lieutenant Neale M. Shank, (3268) Staff Sergeant Marco A. Silva, Alva, (3312) Second Lieutenant Brian D. Smith, Fort Wayne, Indiana; Florida; McKinney, Texas; (3225) Corporal Stephen D. Shannon, (3269) Private Sean A. Silva, Roseville, (3313) Chief Warrant Officer Bruce A. Guttenberg, Iowa; California; Smith, West Liberty, Iowa; (3226) Private First Class David H. Sharrett (3270) Private First Class David N. Sim- (3314) Corporal Darrell L. Smith, Otwell, II, Oakton, Virginia; mons, Kokomo, Indiana; Indiana; (3227) Sergeant Jeffrey R. Shaver, Maple (3271) Sergeant Leonard D. Simmons, New (3315) First Sergeant Edward Smith, Chi- Valley, Washington; Bern, North Carolina; cago, Illinois;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00109 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.093 S03APPT1 ccoleman on PRODPC75 with SENATE S2476 CONGRESSIONAL RECORD — SENATE April 3, 2008 (3316) Chief Warrant Officer (CW3) Eric (3360) Private First Class Armando (3404) Private First Class Lucas V. Allen Smith, Rochester, New York; Soriano, Houston, Texas; Starcevich, Canton, Illinois; (3317) Lance Corporal Jason E. Smith, (3361) Corporal Tomas Sotelo, Jr., Houston, (3405) Lance Corporal Shawn V. Phoenix, Arizona; Texas; Starkovich, Arlington, Washington; (3318) Private First Class Jeremiah D. (3362) Sergeant Danny R. Soto, Houston, (3406) Corporal Jeffrey B. Starr, Snoho- Smith, Odessa, Missouri; Texas; mish, Washington; (3319) Sergeant John M. Smith, Wil- (3363) Staff Sergeant Karl O. Soto-Pinedo, (3407) Lance Corporal Michael L. Starr, Jr., mington, North Carolina; San Juan, Puerto Rico; Baltimore, Maryland; (3320) Specialist Jonathan K. Smith, At- (3364) Petty Officer First Class Luis A. (3408) Staff Sergeant Eric M. Steffeney, lanta, Georgia; Souffront, Miami, Florida; Waterloo, Iowa; (3321) Lance Corporal Jonathan L. Smith, (3365) Sergeant Richard A. Soukenka, (3409) Specialist Nicholas P. Steinbacher, Eva, Alabama; Oceanside, California; La Crescenta, California; (3322) First Lieutenant Justin S. Smith, (3366) Sergeant Kampha B. Sourivong, Iowa (3410) Sergeant David S. Stelmat, Little- Lansing, Michigan; City, Iowa; ton, New Hampshire; (3323) First Lieutenant Kevin J. Smith, (3367) Private First Class Kenneth C. (3411) Sergeant Derek T. Stenroos, North Brandon, Florida; Souslin, Mansfield, Ohio; Pole, Alaska; (3324) Lance Corporal Kevin S. Smith, (3368) Sergeant Nicholas R. Sowinski, (3412) Sergeant Blake C. Stephens, Poca- Springfield, Ohio; Tempe, Arizona; tello, Idaho; (3325) Corporal Matthew R. Smith, West (3369) Major John C. Spahr, Cherry Hill, (3413) Sergeant First Class John S. Ste- Valley City, Utah; New Jersey; phens, San Antonio, Texas; (3326) Lance Corporal Matthew R. Smith, (3370) Specialist Philip I. Spakosky, (3414) First Lieutenant Andrew K. Stern, Anderson, Indiana; Browns Mill, New Jersey; Germantown, Tennessee; (3327) Sergeant Michael A. Smith, Camden, (3371) Private First Class Jacob D. ‘‘Jake’’ (3415) Sergeant Andy A. Stevens, Tomah, Arkansas; Spann, Columbus/Westerville, Ohio; Wisconsin; (3328) Specialist Michael J. Smith, Media, (3372) Staff Sergeant Gina R. Sparks, (3416) Staff Sergeant Joseph W. Stevens, Pennsylvania; Drury, Missouri; Sacramento, California; (3329) Sergeant Orenthial Javon Smith, (3373) Private First Class Jason L. Sparks, (3417) Specialist Randy Lee Stevens, Allendale, South Carolina; Monroeville, Ohio; Swartz Creek, Michigan; (3330) Sergeant First Class Paul Ray (3374) Sergeant Corey E. Spates, LaGrange, (3418) Staff Sergeant Robert Anthony Smith, Tampa, Florida; Georgia; Stever, Pendleton, Oregon; (3331) Corporal Raleigh C. Smith, Troy, (3375) Staff Sergeant Theodore A. Spatol, (3419) Specialist Carla Jane Stewart, Sun Montana; Thermopolis, Wyoming; Valley, California; (3332) Corporal Richard A. Smith, Grand (3376) Lance Corporal Jonathan R. Spears, (3420) Corporal David S. Stewart, Bogalusa, Prairie, Texas; Molino, Florida; Louisiana; (3333) Corporal Ross A. Smith, Wyoming, (3377) Corporal Michael Raymond Speer, (3421) Corporal Ian W. Stewart, Lake Michigan; Redfield, Kansas; Hughes, California; (3334) Sergeant First Class Scott R. Smith, (3378) Lance Corporal Joseph B. Spence, (3422) Sergeant James D. Stewart, Chat- Punxsutawney, Pennsylvania; Scotts Valley, California; tanooga, Tennessee; (3335) Specialist Tristan Smith, Bryn (3379) Private Cole E. Spencer, Gays, Illi- (3423) Corporal Joshua C. Sticklen, Vir- Athyn, Pennsylvania; nois; ginia Beach, Virginia; (3336) Private First Class Tyler J. Smith, (3380) Lance Corporal William D. Spencer, (3424) Private Shane M. Stinson, Fullerton, Bethel, Maine; Paris, Tennessee; California; (3337) Private Daren A. Smith, Helena, (3381) Private First Class Raymond N. (3425) Staff Sergeant John C. Stock, Long- Montana; Spencer, Jr., Carmichael, California; view, Texas; (3338) Lance Corporal Michael J. Smith, (3382) Sergeant First Class William C. (3426) Sergeant Michael J. Stokely, Sharps- Jr., Jefferson, Ohio; Spillers, Terry, Mississippi; burg, Georgia; (3339) Specialist Brandon W. Smitherman, (3383) Staff Sergeant Trevor Spink, Farm- (3427) Corporal Sean A. Stokes, Auburn, Conroe, Texas; ington, Missouri; California; (3340) Sergeant Mark T. Smykowski, Men- (3384) Specialist Curtis R. Spivey, Chula (3428) Sergeant First Class Douglas C. tor, Ohio; Vista, California; Stone, Taylorsville, Utah; (3341) Sergeant First Class Brandon K. (3385) Major Christopher J. Splinter, (3429) Major Gregory Lewis Stone, Boise, Sneed, Norman, Oklahoma; Platteville, Wisconsin; Idaho; (3342) Sergeant Eric L. Snell, Trenton, New (3386) Specialist Clifford A. Spohn III, Al- (3430) Staff Sergeant Clint J. Storey, Enid, Jersey; buquerque, New Mexico; Oklahoma; (3343) Private First Class Stephen P. (3387) Sergeant Marvin R. Sprayberry III, (3431) Specialist Brandon L. Stout, Grand Snowberger III, Lopez, Pennsylvania; Tehachapi, California; Rapids, Michigan; (3344) Corporal Joshua D. Snyder, Hamp- (3388) Specialist Lance C. Springer II, (3432) Second Lieutenant Matthew R. Sto- stead, Maryland; Benbrook, Texas; vall, Horn Lake, Mississippi; (3345) Lance Corporal Matthew A. Snyder, (3389) Private Bryan N. Spry, Chestertown, (3433) Major Michael D. Stover, Mansfield, Finksburg, Maryland; Maryland; Ohio; (3346) Captain Adam P. Snyder, Fort (3390) Corporal Brad D. Squires, Middleburg (3434) Sergeant Morgan W. Strader, Pierce, Florida; Heights, Ohio; Crossville, Tennessee; (3347) Captain Christopher F. Soelzer, (3391) Corporal Shannon L. Squires, Vir- (3435) Lance Corporal Adam J. Strain, Sturgis, South Dakota; ginia Beach, Virginia; Smartville, California; (3348) Private First Class Katie M. (3392) Corporal Brian R. St. Germain, West (3436) Private First Class William R. Soenksen, Davenport, Iowa; Warwick, Rhode Island; Strange, Adrian, Georgia; (3349) Staff Sergeant Gordon George Sol- (3393) Private First Class Jon B. St. John (3437) Sergeant Kirk Allen Straseskie, Bea- omon, Fairborn, Ohio; II, Neenah, Wisconsin; ver Dam, Wisconsin; (3350) Sergeant Roderic Antoine Solomon, (3394) Staff Sergeant David R. Staats, (3438) Sergeant Francis J. Straub, Jr., Fayetteville, North Carolina; Pueblo, Colorado; Philadelphia, Pennsylvania; (3351) Specialist Ismael Solorio, San Luis, (3395) Specialist Jeremy L. Stacey, Bis- (3439) Sergeant Matthew Straughter, St. Arizona; marck, Arkansas; Charles, Missouri; (3352) Staff Sergeant Juan M. Solorio, Dal- (3396) Sergeant Major Michael Boyd Stack, (3440) Sergeant Thomas J. Strickland, las, Texas; Lake City, South Carolina; Douglasville, Georgia; (3353) Corporal Adrian V. Soltau, Mil- (3397) Lance Corporal Steven A. Stacy, (3441) Sergeant Jesse W. Strong, Irasburg, waukee, Wisconsin; Coos Bay, Oregon; Vermont; (3354) Major Charles R. Soltes, Jr., Irvine, (3398) Private First Class Nathan E. Stahl, (3442) Specialist Joseph A. Strong, Leb- California; Highland, Indiana; anon, Indiana; (3355) Major Kevin H. Sonnenberg, (3399) Corporal John R. Stalvey, Conroe, (3443) Lance Corporal Johnny R. Strong, McClure, Ohio; Texas; Waco, Texas; (3356) Sergeant Mike T. Sonoda, Jr., (3400) Specialist Matthew J. Stanley (3444) Captain Mark N. Stubenhofer, Fallbrook, California; Wolfeboro, Falls New, Hampshire; Springfield, Virginia; (3357) Sergeant Matthew Soper, Kala- (3401) Staff Sergeant Robert Stanley, Spot- (3445) Sergeant Michael R. Sturdivant, mazoo, Michigan; sylvania, Virginia; Conway, Arkansas; (3358) Sergeant Skipper Soram, Kolonia, (3402) Private First Class Seth M. Stanton, (3446) Private First Class Brandon C. Stur- Pohnpei, Federated States of Micronesia; Colorado Springs, Colorado; dy, Urbandale, Iowa; (3359) Lance Corporal Ryan J. Sorensen, (3403) Private First Class Kenny F. Stan- (3447) Specialist William R. Sturges, Jr., Boca Raton, Florida; ton, Jr., Hemet, California; Spring Church, Pennsylvania;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00110 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.093 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2477 (3448) Specialist Paul J. Sturino, Rice (3492) Sergeant Matthew L. Tallman, (3536) Sergeant Anthony O. Thompson, Lake, Wisconsin; Groveland, California; Orangeburg, South Carolina; (3449) Lance Corporal Jesus Alberto Suarez (3493) Lance Corporal Fernando S. Tamayo, (3537) Petty Officer Third Class Christopher del Solar, Escondido, California; Fontana, California; W. Thompson, North Wilkesboro, North (3450) Private First Class Roger A. Suarez- (3494) Lance Corporal Jeremy P. Carolina; Gonzalez, Miami, Florida; Tamburello, Denver, Colorado; (3538) Sergeant Jarrett B. Thompson, (3451) Sergeant Joseph D. Suell, Lufkin, (3495) Specialist Eddie D. Tamez, Gal- Dover, Delaware; Texas; veston, Texas; (3539) Corporal Lance M. Thompson, Mar- (3452) Staff Sergeant Wilberto Suliveras, (3496) Corporal Jonh C. Tanner, Columbus, ion/Upland, Indiana; Humacao, Puerto Rico; Georgia; (3540) Private First Class Nils George (3453) Captain Christopher J. Sullivan, (3497) Private First Class Nickolas A. Tan- Thompson, Confluence, Pennsylvania; Princeton, Massachusetts; ton, San Antonio, Texas; (3541) Private First Class William E. (3454) Sergeant John M. Sullivan, Hixon, (3498) Lance Corporal Samuel Tapia, San Thorne, Hospers, Iowa; Tennessee; Benito, Texas; (3542) Lance Corporal Jonathan B. (3455) Specialist John R. Sullivan, Coun- (3499) Sergeant First Class Linda Ann Thornsberry, McDowell, Kentucky; tryside, Illinois; Tarango-Griess, Sutton, Nebraska; (3543) Lance Corporal John Joshua Thorn- (3456) Specialist Narson Bertil Sullivan, N. (3500) Captain Michael Yury Tarlavsky, ton, Phoenix, Arizona; Brunswick, New Jersey; Passaic, New Jersey; (3544) Major Steven W. Thornton, Eugene, (3457) Lance Corporal Vincent M. Sullivan, (3501) Sergeant Nimo W. Tauala, Honolulu, Oregon; Chatham, New Jersey; Hawaii; (3545) Staff Sergeant Robert C. Thornton, (3458) Staff Sergeant Vincent E. Summers, (3502) Staff Sergeant Ioasa F. Tavae, Jr., Jr., Rainbow City, Alabama; South Haven, Michigan; Pago Pago, American Samoa; (3546) Specialist Brandon T. Thorsen, Tren- (3459) Corporal James E. Summers III, Mis- (3503) Sergeant Michael E. Tayaotao, ton, Florida; souri, Bourbon; Sunnyvale, California; (3547) Sergeant Robert B. Thrasher, Fol- (3460) Private First Class Ming Sun, Cathe- (3504) Lance Corporal Bryan N. Taylor, som, California; dral City, California; Milford, Ohio; (3548) Staff Sergeant Frank F. Tiai, Pago (3461) Specialist Astor A. Sunsin-Pineda, (3505) Sergeant Christopher J. Taylor, Pago, American Samoa; Long Beach, California; Opelika, Alabama; (3549) Captain Benjamin D. Tiffner, West (3462) Sergeant Robert A. Surber, Inver- (3506) Specialist Christopher M. Taylor, Virginia; ness, Florida; Daphne, Alabama; (3550) Sergeant James Rodney Tijerina, (3463) Staff Sergeant Stephen J. Suther- (3507) Major David G. Taylor, Apex, North Beasley, Texas; land, West Deptford, New Jersey; Carolina; (3551) Lance Corporal Jesse D. Tillery, Ves- (3464) Private First Class Ernest Harold (3508) Lieutenant Commander Keith Ed- per, Wisconsin; Sutphin, Parkersburg, West Virginia; ward Taylor, Irvine, California; (3552) Lance Corporal Harry H. Timberman, (3465) Staff Sergeant Michael J. Sutter, (3509) Major Mark D. Taylor, Stockton, Minong, Wisconsin; Tinley Park, Illinois; California; (3553) Sergeant Tina Safaira Time, Tucson, (3466) Sergeant Timothy J. Sutton, Spring- (3510) Major Michael Taylor, Little Rock, Arizona; field, Missouri; Arkansas; (3554) First Lieutenant Jason G. (3467) Sergeant First Class Greg L. Sutton, (3511) Sergeant Michael C. Taylor, Timmerman, Cottonwood/Tracy, Minnesota; Spring Lake, North Carolina; Hockley, Texas; (3555) Sergeant Humberto F. Timoteo, (3468) Sergeant First Class Sean M. Suzch, (3512) Sergeant Shannon D. Taylor, Smith- Newark, New Jersey; Hilltown, Pennsylvania; ville, Tennessee; (3556) Lance Corporal Jeremy L. Tinnel, (3469) Lance Corporal Daniel Freeman (3513) Corporal William G. Taylor, Macon, Mechanicsville, Virginia; (3557) Private First Class Patrick A. Swaim, Yadkinville, North Carolina; Georgia; (3470) Lance Corporal James E. Swain, Ko- (3514) Sergeant Norman R. Taylor III, Tinnell, Lake Havasu City, Arizona; (3558) Specialist Douglas L. Tinsley, Ches- komo, Indiana; Blythe, California; ter, South Carolina; (3471) Lance Corporal Harry R. Swain IV, (3515) Captain John R. Teal, Mechanics- (3559) Captain John E. Tipton, Fort Walton Cumberland, New Jersey; ville, Virginia; Beach, Florida; (3472) Lance Corporal Shane C. Swanberg, (3516) Sergeant Brandon L. Teeters, Lafay- (3560) Private First Class Joshua K. Kirkland, Washington; ette, Louisiana; Titcomb, Somerset, Kentucky; (3473) Private First Class Robert A. (3517) Specialist Prince K. Teewia, Dur- (3561) Specialist Brandon T. Titus, Boise, Swaney, West Jefferson, Ohio; ham, North Carolina; Idaho; (3474) Sergeant Brett D. Swank, North- (3518) Corporal Luis E. Tejeda, Huntington (3562) Sergeant First Class John J. umberland Co., Pennsylvania; Park, California; Tobiason, Bloomington, Minnesota; (3475) Staff Sergeant Christopher Swanson, (3519) Staff Sergeant Riayan Augusto (3563) Specialist Brandon Scott Tobler, Rose Haven, Maryland; Tejeda, New York, New York; Portland, Oregon; (3476) Corporal Timothy A. Swanson, San (3520) Sergeant Joshua A. Terando, Morris, (3564) Major Jeffrey P. Toczylowski, Upper Antonio, Texas; Illinois; Moreland, Pennsylvania; (3477) Chief Warrant Officer (CW5) Sharon (3521) Lance Corporal Miguel Terrazas, El (3565) Sergeant Lee Duane Todacheene, T. Swartworth, Virginia; Paso, Texas; Farmington, New Mexico; (3478) Sergeant Robert Wesley Sweeney III, (3522) Sergeant First Class Jonathan (3566) Corporal John H. Todd III, Bridge- Pineville, Louisiana; Tessar, Simi Valley, California; port, Pennsylvania; (3479) Private First Class Jack T. Sweet, (3523) Lance Corporal Jason Tetrault, (3567) Corporal Victor H. Toledo Pulido, Alexandria Bay, New York; Moreno Valley, California; Hanford, California; (3480) Sergeant Thomas J. Sweet II, Bis- (3524) Private Nathan Z. Thacker, (3568) Specialist John O. Tollefson, Fond du marck, North Dakota; Greenbrier, Arkansas; Lac, Wisconsin; (3481) Lance Corporal Franklin A. Sweger, (3525) Petty Officer First Class Jerry A. (3569) Sergeant Norman L. Tollett, Colum- San Antonio, Texas; Tharp, Aledo, Illinois; bus, Ohio; (3482) Sergeant Jason Swiger, South Port- (3526) Private First Class Sean D. Tharp, (3570) Corporal Joseph A. Tomci, Stow, land, Maine; Orlando, Florida; Ohio; (3483) Sergeant Nathaniel T. Swindell, (3527) Corporal Joseph C. Thibodeaux III, (3571) Staff Sergeant Zachary B. Tomczak, Bronx, New York; Lafayette, Louisiana; Huron, South Dakota; (3484) Staff Sergeant Christopher W. Swish- (3528) Master Sergeant Thomas R. Thigpen, (3572) Sergeant Nicholas A. Tomko, Pitts- er, Lincoln, Nebraska; Sr., Augusta, Georgia; burgh, Pennsylvania; (3485) Captain Tyler B. Swisher, Cin- (3529) Corporal Jesse L. Thiry, Casco, Wis- (3573) Staff Sergeant Jacob M. Tompson, cinnati, Ohio; consin; North Mankato, Minnesota; (3486) Major Paul R. Syverson III, Lake Zu- (3530) Sergeant Carl Thomas, Phoenix, Ari- (3574) Master Sergeant Timothy Toney, rich, Illinois; zona; Manhattan, New York; (3487) Lance Corporal Steven W. Szwydek, (3531) Sergeant John Frank Thomas, Val- (3575) Private First Class David T. Warfordsburg, Pennsylvania; dosta, Georgia; Toomalatai, Long Beach, California; (3488) Sergeant Joseph M. Tackett, (3532) Staff Sergeant Kendall Thomas, St. (3576) Lance Corporal Joshua L. Torrence, Whitehouse, Kentucky; Thomas, United States Virgin Islands; Lexington, South Carolina; (3489) Staff Sergeant Ayman A. Taha, Vi- (3533) Specialist Kyle G. Thomas, Topeka, (3577) Sergeant Daniel Torres, Fort Worth, enna, Virginia; Kansas; Texas; (3490) Sergeant Patrick S. Tainsh, Ocean- (3534) Master Sergeant Sean Michael (3578) Private First Class George D. Torres, side, California; Thomas, Harrisburg, Pennsylvania; Long Beach, California; (3491) Sergeant DeForest L. ‘‘Dee’’ Talbert, (3535) Sergeant Paul W. Thomason III, Tal- (3579) Lance Corporal Michael S. Torres, El Charleston, West Virginia; bot, Tennessee; Paso, Texas;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00111 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.093 S03APPT1 ccoleman on PRODPC75 with SENATE S2478 CONGRESSIONAL RECORD — SENATE April 3, 2008 (3580) Specialist Ramon Reyes Torres, (3625) Specialist Eugene A. Uhl III, Am- (3669) Lance Corporal Cristian Vasquez, Caguas, Puerto Rico; herst, Wisconsin; Coalinga, California; (3581) Second Lieutenant Richard Torres, (3626) Lance Corporal Drew M. Uhles, Du (3670) Second Lieutenant John Shaw Clarksville, Tennessee; Quoin, Illinois; Vaughan, Edwards, Colorado; (3582) Specialist Teodoro Torres, Las (3627) Private First Class Brian Scott (3671) Sergeant Michael L. Vaughan, Otis, Vegas, Nevada; ‘‘Scotty’’ Ulbrich, Chapmanville, West Vir- Oregon; (3583) Private First Class Omar E. Torres, ginia; (3672) Specialist Brian A. Vaughn, Pell Chicago, Illinois; (3628) Civilian Rick A. Ulbright, Waldorf, City, Alabama; (3584) Lance Corporal Elias Torrez III, Maryland; (3673) Sergeant Jason W. Vaughn, Luca, Veribest, Texas; (3629) Sergeant George M. Ulloa, Jr., Aus- Mississippi; (3585) Sergeant Michael L. Tosto, Apex, tin, Texas; (3674) Lance Corporal Dennis J. Veater, North Carolina; (3630) First Lieutenant Colby J. Umbrell, Jessup, Pennsylvania; (3586) Specialist Eric L. Toth, Edmonton, Doylestown, Pennsylvania; (3675) Sergeant Mark Richard Vecchione, Kentucky; (3631) Private First Class Daniel Paul Tucson, Arizona; (3587) Staff Sergeant Michael L. Townes, Unger, Exeter, California; (3676) Specialist Frances M. Vega, Fort Bu- Las Vegas, Nevada; (3632) Corporal David M. Unger, Leaven- chanan, Puerto Rico; (3588) Staff Sergeant Robin L. Towns, Sr., worth, Kansas; (3677) First Lieutenant Michael W. Vega, Upper Marlboro, Maryland; (3633) Specialist Robert Oliver Unruh, Tuc- Lathrop, California; (3589) Sergeant Tromaine K. Toy, Sr., son, Arizona; (3678) Private First Class Jerimiah J. Eastville, Virginia; (3634) Sergeant Gregory D. Unruh, Dickin- Veitch, Dibble, Oklahoma; (3590) Private First Class Jacob T. Tracy, son, Texas; (3679) Staff Sergeant Paul A. Velasquez, Palestine, Illinois; (3635) Specialist Clinton R. Upchurch, Gar- San Diego, California; (3591) Sergeant Seth R. Trahan, Crowley, den City, Kansas; (3680) Corporal Jose A. Velez, Lubbock, Louisiana; (3636) Private First Class Wilfredo F. Texas; (3592) Sergeant Quoc Binh Tran, Mission Urbina, Baldwin, New York; (3681) Sergeant Jose M. Velez, Bronx, New Viejo, California; (3637) Sergeant Iosiwo Uruo, Agana York; (3593) Staff Sergeant Philip L. Travis, Heights, Guam; (3682) Lance Corporal Juan C. Venegas, Snellville, Georgia; (3638) First Sergeant Ernest E. Utt, Ham- Simi Valley, California; (3594) Corporal Joseph S. Tremblay, New mond, Illinois; (3683) Private First Class Justin A. Windsor, New York; (3639) Sergeant Michael A. Uvanni, Rome, Verdeja, La Puente, California; (3595) Specialist Richard K. Trevithick, New York; (3684) Staff Sergeant Russell J. Verdugo, Gaines, Michigan; (3640) Sergeant Nathan J. Vacho, Janes- Phoenix, Arizona; (3596) Private First Class Brett L. Tribble, ville, Wisconsin; (3685) Staff Sergeant David Michael Lake Jackson, Texas; (3641) Corporal Steve Vahaviolos, Airmont, Veverka, Jamestown, Pennsylvania; (3597) Staff Sergeant Marvin Lee Trost III, New York; (3686) Corporal David M. Vicente, Methuen, Goshen, Indiana; (3642) Staff Sergeant Gary A. Vaillant, Massachusetts; (3598) Sergeant John Byron Trotter, Mar- Trujillo, Puerto Rico; (3687) Staff Sergeant Eric R. Vick, Spring ble Falls, Texas; (3643) Lance Corporal Eric P. Valdepenas, Hope, North Carolina; (3599) Corporal Tyler S. Trovillion, Rich- Seekonk, Massachusetts; (3688) Sergeant Chirasak Vidhyarkorn, ardson, Texas; (3644) Corporal Ramona M. Valdez, Bronx, Queens, New York; (3600) Chief Warrant Officer 4 Chester W. New York; (3689) Private First Class Caesar S. Troxel, Anchorage, Alaska; (3645) Lance Corporal Ruben Valdez, Jr., Viglienzone, Santa Rosa, California; (3601) Lance Corporal Tyler J. Troyer, Tan- San Diego, Texas; (3690) Sergeant First Class Ruben J. Villa, (3646) Petty Officer First Class Jennifer A. gent, Oregon; Jr., El Paso, Texas; (3602) Specialist Francis M. Trussel, Jr., Valdivia, Cambridge, Illinois; (3691) Specialist Javier A. Villanueva, Lincoln, Illinois; (3647) Specialist Donald E. Valentine III, Temple, Texas; (3603) Sergeant Daniel A. Tsue, Honolulu, Orange Park, Florida; (3692) Sergeant First Class Joselito O. Hawaii; (3648) Sergeant Melissa Valles, Eagle Pass, Villanueva, Los Angeles, California; (3604) Private First Class Andrew L. Texas; (3693) Civilian Linda J. Villar, Tuazon, Chesapeake, Virginia; (3649) Chief Warrant Officer Brian K. Van Franklinton, Louisiana; (3605) Lance Corporal Marc Lucas Tucker, Dusen, Columbus, Ohio; (3694) Lance Corporal Emmanuel Pontotoc, Mississippi; (3650) Lance Corporal Gary F. Van Leuven, Villarreal, Eagle Pass, Texas; (3606) Sergeant Robert W. Tucker, Hilham, Klamath Falls, Oregon; (3695) Private First Class Ramon A. Tennessee; (3651) Sergeant Timothy R. Van Orman, (3607) Private First Class Thomas Lowell Port Matilda, Pennsylvania; Villatoro, Jr., Bakersfield, California; Tucker, Madras, Oregon; (3652) Lance Corporal Brandon J. Van (3696) Sergeant Franklin R. Vilorio, Miami, (3608) Staff Sergeant Steven R. Tudor, Parys, New Tripoli, Pennsylvania; Florida; Dunmore, Pennsylvania; (3653) Private First Class Bufford ‘‘Kenny’’ (3697) Corporal Scott M. Vincent, Bokoshe, (3609) Staff Sergeant Salamo J. Van Slyke, Bay City, Michigan; Oklahoma; Tuialuuluu, Pago Pago, American Samoa; (3654) Lance Corporal Adam J. VanAlstine, (3698) Specialist Anthony M. K. Vinnedge, (3610) Lieutenant Commander Morgan C. Superior, Wisconsin; Okeana, Ohio; Tulang, Hilo, Hawaii; (3655) Specialist Allen Jeffrey ‘‘A.J.’’ (3699) Specialist Travis M. Virgadamo, Las (3611) Master Sergeant Tulsa T. Tuliau, Vandayburg, Mansfield, Ohio; Vegas, Nevada; Watertown, New York; (3656) Specialist Jacob T. Vanderbosch, (3700) Staff Sergeant Thomas E. (3612) Sergeant Gregory L. Tull, Poca- Vadnais Heights, Minnesota; Vitagliano, New Haven, Connecticut; hontas, Iowa; (3657) Staff Sergeant Christopher J. (3701) Specialist Eric Vizcaino, Albu- (3613) Sergeant First Class Michael J. Vanderhorn, Pierce, Washington; querque, New Mexico; Tully, Falls Creek, Pennsylvania; (3658) Specialist Josiah H. Vandertulip, Ir- (3702) Staff Sergeant Kimberly A. Voelz, (3614) Sergeant Lui Tumanuvao, Fagaalu, ving, Texas; Carlisle, Pennsylvania; American Samoa; (3659) Sergeant Thomas E. Vandling, Jr., (3703) Specialist Robert J. Volker, Big (3615) Sergeant Nicholas D. Turcotte, Pittsburgh, Pennsylvania; Spring, Texas; Maple Grove, Minnesota; (3660) Sergeant Joseph M. Vanek, Elm- (3704) Sergeant Chad J. Vollmer, Grand (3616) Staff Sergeant Roger C. Turner, Jr., hurst, Illinois; Rapids, Michigan; Parkersburg, West Virginia; (3661) Lance Corporal John J. Vangyzen IV, (3705) Private First Class Kenneth G. (3617) Sergeant Thomas B. Turner, Jr., Cot- Bristol, Massachusetts; Vonronn, Bloomingburg, New York; tonwood, California; (3662) Staff Sergeant Darren D. VanKomen, (3706) Sergeant Matthew J. Vosbein, (3618) Sergeant Bryan J. Tutten, St. Augus- Bluefield, West Virginia; Metairie, Louisiana; tine, Florida; (3663) Private First Class Alexander R. (3707) Staff Sergeant Michael S. Voss, Ab- (3619) Staff Sergeant Abraham G. Twitch- Varela, Fernley, Nevada; erdeen, North Carolina; ell, Yelm, Washington; (3664) Specialist Robert D. Varga, Monroe (3708) Private First Class Brent T. Vroman, (3620) Lance Corporal Bobby L. Twitty, City, Missouri; Oshkosh, Wisconsin; Bedias, Texas; (3665) Staff Sergeant Oscar D. Vargas-Me- (3709) Specialist Thai Vue, Willows, Cali- (3621) Specialist Wade Michael Twyman dina, Chicago, Illinois; fornia; Vista California (3666) Sergeant Daniel Ryan Varnado, Sau- (3710) Chief Petty Officer Patrick L. Wade, (3622) Captain Corry P. Tyler, Georgia; cier, Mississippi; Key West, Florida; (3623) Private Scott Matthew Tyrrell, Ster- (3667) Staff Sergeant Justin L. Vasquez, (3711) Lance Corporal Michael B. Wafford, ling, Illinois; Manzanola, Colorado; Spring, Texas; (3624) First Lieutenant Andre D. Tyson, (3668) Staff Sergeant Mark D. Vasquez, (3712) Sergeant Christopher A. Wagener, Riverside, California; Port Huron, Michigan; Fairview Heights, Illinois;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00112 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.093 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2479 (3713) Private First Class Peter D. Wagler, (3757) Sergeant First Class Mark C. War- (3801) Lance Corporal Larry L. Wells, Partridge, Kansas; ren, La Grande, Oregon; Mount Hermon, Louisiana; (3714) Staff Sergeant Gregory A. Wagner, (3758) First Sergeant William T. Warren, (3802) Sergeant Lonny D. Wells, Mitchell, South Dakota; Little Rock, Arkansas; Vandergrift, Pennsylvania; (3715) Staff Sergeant Terry D. Wagoner, (3759) Lance Corporal Kevin G. Waruinge, (3803) Chief Warrant Officer Stephen M. Piedmont, South Carolina; Tampa, Florida; Wells, Egremont, Massachusetts; (3716) Sergeant Gregory L. Wahl, Salis- (3760) Private First Class Nachez (3804) Warrant Officer Charles G. Wells, Jr., bury, North Carolina; Washalanta, Bryan, Oklahoma; Montgomery, Alabama; (3717) Specialist Andrew K. Waits, Water- (3761) Corporal Rusty L. Washam, Hunts- (3805) Specialist Michael J. Wendling, ford, Michigan; ville, Tennessee; Mayville, Wisconsin; (3718) Sergeant Dustin S. Wakeman, Fort (3762) Sergeant Bennie J. Washington, At- (3806) Sergeant Brad A. Wentz, Gladwin, Worth, Texas; lanta, Georgia; Michigan; (3719) Private First Class Steven J. (3763) Staff Sergeant Javares J. Wash- (3807) Specialist Cody L. Wentz, Williston, Walberg, Paradise, California; ington, Pensacola, Florida; North Dakota; (3720) Sergeant First Class Brett Eugene (3764) Lance Corporal Christopher B. (3808) Private Raymond M. Werner, Boise, Walden, Fort Walton Beach, Florida; Wasser, Ottawa, Kansas; Idaho; (3721) Staff Sergeant Allan K. Walker, Lan- (3765) Specialist Forrest J. Waterbury, (3809) Specialist Jeffrey M. Wershow, caster, California; Richmond, Texas; Gainesville, Florida; (3722) Sergeant Antwan L. ‘‘Twan’’ Walker, (3766) Private David L. Waters, Auburn, (3810) Specialist Christopher Jude Rivera Tampa, Florida; California; Wesley, Portland, Oregon; (3723) Sergeant Jeffrey C. Walker, Havre de (3767) Staff Sergeant Kendall Damon Wa- (3811) Private First Class Kevin S. K. Grace, Maryland; ters-Bey, Baltimore, Maryland; Wessel, Newport, Oregon; (3724) Lance Corporal Jeffrey D. Walker, (3768) Corporal Glenn J. Watkins, Carlsbad, (3812) Corporal Bobby R. West, Beebe, Ar- Macon, Georgia; California; kansas; (3725) Specialist Kristofer C. Walker, Creve (3769) Corporal Joshua C. Watkins, Jack- (3813) Sergeant James G. West, Watertown, Coeur, Illinois; sonville, Florida; New York; (3726) Specialist Ryan D. Walker, Stayton, (3770) Specialist Timothy D. Watkins, San (3814) Captain Jason M. West, Pittsburgh, Oregon; Bernardino, California; Pennsylvania; (3727) Specialist Aaron J. Walker, Harker (3771) Major William Randolph Watkins III, (3815) Lance Corporal Jeromy D. West, Heights, Texas; Danville, Virginia; Aguanga, California; (3728) Lance Corporal Jeffrey D. Walker, (3772) Lance Corporal Cody G. Watson, Ox- (3816) Lance Corporal Phillip G. West, Macon, Georgia; ford, Alabama; American Canyon, California; (3729) Specialist Zandra T. Walker, Green- (3773) Lance Corporal Craig N. Watson, (3817) Master Sergeant Robert H. West, ville, South Carolina; Union City, Michigan; Elyria, Ohio; (3730) First Lieutenant Frank B. Walkup (3774) Specialist David L. Watson, New (3818) Private First Class Theodore M. IV, Woodbury, Tennessee; Port, Arkansas; West, Richmond, Kentucky; (3731) Staff Sergeant Mark A. Wall, Alden, (3775) Sergeant Kimel L. Watt, Brooklyn, (3819) Staff Sergeant Laurent J. West, Ra- Iowa; New York; leigh, North Carolina; (3732) Sergeant Andrew P. Wallace, Osh- (3776) Petty Officer Second Class Chris- (3820) Specialist Christopher J. West, Ar- kosh, Wisconsin; topher E. Watts, Knoxville, Tennessee; lington, Texas; (3733) Sergeant Brandon L. Wallace, St. (3777) Command Sergeant Major Donovan (3821) First Lieutenant Kile G. West, Louis, Missouri; E. Watts, Atlanta, Georgia; Texas, Pasadena; (3734) Private First Class Jeffrey R. Wal- (3778) Corporal Justin J. Watts, (3822) Sergeant Marshall A. Westbrook, lace, Hoopeston, Illinois; Crownsville, Maryland; Farmington, New Mexico; (3735) Corporal Matthew P. Wallace, Lex- (3779) Chief Warrant Officer Aaron A. Wea- (3823) Colonel Theodore S. Westhusing, ington Park, Maryland; ver, Inverness, Florida; Dallas, Texas; (3736) Sergeant First Class Terry O. P. Wal- (3780) Corporal Christopher L. Weaver, (3824) First Lieutenant Alexander E. lace, Winnsboro, Louisiana; Fredericksburg, Virginia; Wetherbee, Fairfax, Virginia; (3737) Corporal Richard P. Waller, Fort (3781) Lance Corporal Drew W. Weaver, St. (3825) Specialist Donald L. Wheeler, Con- Worth, Texas; Charles, Missouri; cord, Michigan; (3738) Master Sergeant Thomas A. (3782) Staff Sergeant Shannon V. Weaver, (3826) Sergeant First Class Dexter E. Wallsmith, Carthage, Missouri; Urich, Missouri; Wheelous, Winder, Georgia; (3739) Petty Officer Second Class Chris- (3783) Lance Corporal Brandon J Webb, (3827) Sergeant Mason Douglas Whetstone, topher Walsh, St. Louis, Missouri; Swartz Creek, Michigan; Anchorage, Alaska; (3740) Sergeant Justin T. Walsh, Cuyahoga (3784) Sergeant Charles Joseph Webb, Ham- (3828) Staff Sergeant Jerald A. Whisenhunt, Falls, Ohio; ilton, Ohio; Orrick, Missouri; (3741) Sergeant Nicholas R. Walsh, (3785) Staff Sergeant Christopher R. Webb, (3829) Private First Class Marquis A. Millstadt, Illinois; Winchester, California; Whitaker, Columbus, Georgia; (3742) Private First Class Rowan D. Walter, (3786) Sergeant Matthew A. Webber, Kala- (3830) Staff Sergeant Aaron Dean White, Winnetka, California; mazoo, Michigan; Shawnee, Oklahoma; (3743) Sergeant Donald Ralph Walters, Kan- (3787) Corporal Robert Weber, Western (3831) Private Anthony White, Columbia, sas City, Missouri; Hills, Ohio; South Carolina; (3744) Corporal Gary W. Walters, Jr., Vic- (3788) Chief Warrant Officer (CW5) Jamie D. (3832) Private First Class Christopher N. toria, Texas; Weeks, Daleville, Alabama; White, Southport, North Carolina; (3745) Private First Class Brett Andre Wal- (3789) Specialist Michael S. Weger, Hous- (3833) Sergeant Lucas T. White, Moses, ton, Hillsboro, Oregon; ton, Texas; Lake Washington; (3746) Private First Class Andrew M. Ward, (3790) Staff Sergeant Kyle B. Wehrly, (3834) Lieutenant Nathan Dennis White, Kirkland, Washington; Galesburg, Illinois, Mesa, Arizona; (3747) Private Jason M. Ward, Tulsa, Okla- (3791) Sergeant Michael R. Weidemann, (3835) Specialist Raymond L. White, homa; Newport, Rhode Island; Elwood, Indiana; (3748) Corporal Joshua J. Ware, Apache, (3792) Staff Sergeant Joseph M. Weiglein, (3836) Sergeant First Class Stephen J. Oklahoma; Audubon, New Jersey; White, Talladega, Alabama; (3749) Airman First Class Carl Jerome (3793) Captain Ian P. Weikel, Colorado (3837) Sergeant Steven W. White, Lawton, Ware, Jr., Glassboro, New Jersey; Springs, Colorado; Oklahoma; (3750) Corporal William T. Warford III, (3794) Corporal David G. Weimortz, Irmo, (3838) Lance Corporal William Wayne Temple, Texas; South Carolina; White, Brooklyn, New York; (3751) Corporal Christopher Tyler (3795) Technical Sergeant Timothy R. (3839) Private Dewayne L. White, Country Warndorf, Burlington, Kentucky; Weiner, Tamarac, Florida; Club Hills, Illinois; (3752) Private First Class Heath Warner, (3796) Sergeant David Thomas Weir, Cleve- (3840) Staff Sergeant Delmar White, Canton, Ohio; land, Tennessee; Wallins, Kentucky; (3753) Lance Corporal Richard D. Warner, (3797) Staff Sergeant David J. Weisenburg, (3841) Specialist Doonewey White, Milpitas, Waukesha, Wisconsin; Portland, Oregon; California; (3754) Corporal Robert P. Warns II, (3798) Specialist Douglas J. Weismantle, (3842) Staff Sergeant Jason D. Whitehouse, Waukesha, Wisconsin; Pittsburgh, Pennsylvania; Phoenix, Arizona; (3755) Sergeant First Class Charles Hough- (3799) Specialist Andrew R. Weiss, Lafay- (3843) Private First Class Joey D. Whit- ton Warren, Duluth, Georgia; ette, Indiana; ener, Nebo, North Carolina; (3756) Lance Corporal Kristopher C. War- (3800) Lance Corporal Joseph T. Welke, (3844) Staff Sergeant Justin R. Whiting, ren, Resaca, Georgia; Rapid City, South Dakota; Hancock, New York;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00113 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.094 S03APPT1 ccoleman on PRODPC75 with SENATE S2480 CONGRESSIONAL RECORD — SENATE April 3, 2008 (3845) Lance Corporal Dion M. Whitley, Los (3889) Petty Officer Third Class Nicholas (3933) Sergeant Daniel E. Woodcock, Angeles, California; Wilson, Valley Newark, New York; Glennallen, Alaska; (3846) Specialist Chase R. Whitman, Eu- (3890) Specialist Nicholas E. Wilson, Glen- (3934) Sergeant Michael R. Woodliff, Port gene, Oregon; dale, Arizona; Charlotte, Florida; (3847) Lance Corporal Nicholas J. Whyte, (3891) Staff Sergeant Robert J. Wilson, (3935) Private First Class Eric Paul Woods, Brooklyn, New York; Boynton Beach, Florida; Omaha, Nebraska; (3848) Lance Corporal Travis M. Wichlacz, (3892) Sergeant Lee C. Wilson, Chapel Hill, (3936) Petty Officer Third Class Julian West Bend, Wisconsin; North Carolina; Woods, Jacksonville, Florida; (3849) Corporal Vernon R. Widner, Red- (3893) Staff Sergeant Stephen J. Wilson, (3937) Specialist Shane W. Woods, Palmer, lands, California; Duluth, Georgia; Alaska; (3850) Specialist Lee A. Wiegand, Hallstead, (3894) Private First Class Le Ron A. Wil- (3938) Corporal Ryan A. Woodward, Fort Pennsylvania; son, Queens, New York; Wayne, Indiana; (3851) Staff Sergeant David A. Wieger, (3895) Lance Corporal Nicholas Wilt, (3939) Private First Class Curtis L. Wooten North Huntingdon, Pennsylvania; Tampa, Florida; III, Spanaway, Washington; (3852) Petty Officer Third Class Jeffery L. (3896) Specialist Thomas J. Wilwerth, Mas- (3940) Specialist Dustin L. Workman II, Wiener, Louisville, Kentucky; tic, New York; Greenwood, Nebraska; (3853) Corporal Kory D. Wiens, Independ- (3897) Sergeant David Neil Wimberg, Louis- (3941) Major Matthew W. Worrel, ence, Oregon; ville, Kentucky; Lewisville, Texas; (3854) Specialist Michael J. Wiesemann, (3898) Corporal Christopher D. Winchester, (3942) Sergeant James R. Worster, North Judson, Indiana; Flomaton, Alabama; Broadview Heights, Ohio; (3855) Staff Sergeant Michael J. Wiggins, (3899) First Lieutenant Ronald Winchester, (3943) Private First Class Robert A. Wor- Cleveland, Ohio; Rockville Center, New York; thington, Jackson, Georgia; (3856) Lance Corporal William Brett (3900) Sergeant First Class Nathan L. (3944) Sergeant James M. Wosika, Jr., St. Wightman, Sabina, Ohio; Winder, Blanding, Utah; Paul, Minnesota; (3857) Corporal Joshua S. Wilfong, Walker, (3901) Lance Corporal Nathanial Dain (3945) Lieutenant Colonel Thomas A. Wren, West Virginia; Windsor, Scappoose, Oregon; Lorton, Virginia; (3858) Sergeant Charles T. Wilkerson, Kan- (3902) Specialist Trevor A. Wine, Orange, (3946) Specialist Brian A. Wright, sas City, Missouri; California; Keensburg, Illinois; (3859) Private First Class David A. Wilkey, (3903) Sergeant Daniel W. Winegeart, (3947) Sergeant Gregroy A. Wright, Boston, Jr., Elkhart, Indiana; Kountze, Texas; Massachusetts; (3860) First Lieutenant Charles L. Wilkins (3904) Lance Corporal Jordan D. Winkler, (3948) Specialist James C. Wright, Morgan, III, Columbus, Ohio; Tulsa, Oklahoma; Texas; (3861) Private Eric R. Wilkus, Hamilton, (3905) Private First Class Harry A. Winkler (3949) Private First Class Jason G. Wright, New Jersey; III, Clarksville, Tennessee; Luzerne, Michigan; (3862) Seargent Gary D. Willett, (3906) Private First Class Ryan G. Winslow, (3950) Sergeant Thomas G. Wright, Holly, Alamogordo, New Mexico; Jefferson, Alabama; Michigan; (3863) Sergeant Cheyenne C. Willey, Fre- (3907) Lieutenant Colonel Peter E. Win- (3951) Second Lieutenant John Thomas mont, California; ston, Plant City, Florida; ‘‘J.T.’’ Wroblewski, Oak Ridge, New Jersey; (3864) Corporal Andre L. Williams, Gallo- (3908) Corporal Jonathan D. Winterbottom, (3952) First Lieutenant Luke C. way, Ohio; Falls Church, Virginia; Wullenwaber, Lewiston, Idaho; (3865) Staff Sergeant Benjamin D. Wil- (3909) Lance Corporal William J. (3953) Lance Corporal Daniel R. Wyatt, liams, Orange, Texas; Wiscowiche, Victorville, California; Calendonia, Wisconsin; (3866) Sergeant Christian B. Williams, Win- (3910) Staff Sergeant Clinton Lee Wisdom, (3954) Corporal Matthew A. Wyatt, ter Haven, Florida; Atchison, Kansas; Millstadt, Illinois; (3867) Sergeant Clint E. Williams, King- (3911) Specialist Robert A. Wisem Tallahas- (3955) Private First Class Stephen E. ston, Oklahoma; see, Florida; Wyatt, Kilgore, Texas; (3868) Staff Sergeant Dwayne E. Williams, (3912) Sergeant Justin D. Wisniewski, (3956) Specialist Benyahmin B. Yahudah, Baltimore, Maryland; Standish, Michigan; Bogart, Georgia; (3869) Sergeant Eugene Williams, Highland, (3913) Private First Class Donovan D. (3957) Private First Class Dustin A. New York; Witham, Malvern, Arkansas; Yancey, Goose Creek, South Carolina; (3870) Corporal Jeffrey A. Williams, (3914) Sergeant James Witkowski, Sur- (3958) Sergeant Michael J. Yarbrough, Mal- Warrenville, Illinois; prise, Arizona; vern, Arkansas; (3871) Staff Sergeant Jesse L. Williams, (3915) Specialist Michelle M. Witmer, New (3959) Sergeant Michael E. Yashinski, Santa Rosa, California; Berlin, Wisconsin; Monument, Colorado; (3872) Corporal Luke C. Williams, Knox- (3916) Private First Class Owen D. Witt, (3960) Corporal Nyle Yates III, Lake Odes- ville, Tennessee; Sand Springs, Montana; sa, Michigan; (3873) Lance Corporal Michael Jason Wil- (3917) Staff Sergeant Kevin M. Witte, (3961) Sergeant Clifton J. Yazzie, Fruit- liams, Yuma, Arizona; Beardsley, Minnesota; land, New Mexico; (3874) Specialist Michael L. Williams, Buf- (3918) Private First Class Brett Witteveen, (3962) Sergeant Henry Ybarra III, Austin, falo, New York; Shelby, Michigan; Texas; (3875) Private First Class Phillip B. Wil- (3919) Staff Sergeant Zachary Ryan Wobler, (3963) Lance Corporal Hatak Yuka Keyu M. liams, Gardnerville, Nevada; Ottawa, Ohio; Yearby, Overbrook, Oklahoma; (3876) Specialist Ronnie D. Williams, Er- (3920) Specialist James R. Wolf, (3964) Lance Corporal Luke C. Yepsen, langer, Kentucky; Scottsbluff, Nebraska; Kingwood, Texas; (3877) Sergeant Taft V. Williams, New Orle- (3921) Private First Class Colin Joseph (3965) Chief Warrant Officer Keith Yoakum, ans, Louisiana; Wolfe, Manassas, Virginia; Hemet, California; (3878) Private Wesley J. Williams, Philadel- (3922) Second Lieutenant Jeremy L. Wolfe, (3966) Private Justin R. Yoemans, Eufaula, phia, Pennsylvania; Menomonie, Wisconsin; Alabama; (3879) Sergeant David B. Williams, Tarboro, (3923) Sergeant Elijah Tai Wah Wong, (3967) Specialist Viktar V. Yolkin, Spring North Carolina; Mesa, Arizona; Branch, Texas; (3880) Sergeant Arthur C. Williams IV, (3924) Sergeant Brian M. Wood, Torrance, (3968) Master Sergeant Anthony R. C. Yost, Edgewater, Florida; California; Millington/Flint, Michigan; (3881) Specialist Tracy C. Willis, Marshall, (3925) Captain George A. Wood, New York, (3969) Sergeant Joshua V. Youmans, Flush- Texas; New York; ing, Michigan; (3882) Sergeant First Class Christopher R. (3926) Specialist John Edward Wood, Hum- (3970) Private First Class Rodricka Antwan Willoughby, Phenix City, Alabama; boldt, Kansas; Youmans, Allendale, South Carolina; (3883) Corporal Bryan S. Wilson, Otterbein, (3927) Lance Corporal Nathan R. Wood, (3971) Specialist Christopher D. Young, Los Indiana; Kirkland, Washington; Angeles, California; (3884) Specialist Dana N. Wilson, Fountain, (3928) Sergeant First Class Ronald T. Wood, (3972) Sergeant Ryan C. Young, Corona, Colorado; Cedar City, Utah; California; (3885) Staff Sergeant Jamie D. Wilson, San (3929) Colonel William W. Wood, Panama (3973) Private First Class Joshua A. R. Diego, California; City, Florida; Young, Riddle, Oregon; (3886) Command Sergeant Major Jerry L. (3930) Sergeant Ryan M. Wood, Oklahoma (3974) Specialist Donald M. Young, Helena, Wilson, Thomson, Georgia; City, Oklahoma; Montana; (3887) Staff Sergeant Joe Nathan Wilson, (3931) Sergeant Peter Woodall, Sarasota, (3975) Specialist John J. Young, Savannah, Crystal Springs, Mississippi; Florida; Georgia; (3888) Lance Corporal Lamont N. Wilson, (3932) Corporal Julian M. Woodall, Talla- (3976) Private Kelly D. Youngblood, Mesa, Lawton, Oklahoma; hassee, Florida; Arizona;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00114 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.094 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2481 (3977) Petty Officer Third Class Travis L. (11) First Lieutenant Tamara Long (56) Specialist Curtis A. Carter, Lafayette, Youngblood, Surrency, Georgia; Archuleta, Belen, New Mexico; Louisiana; (3978) Lance Corporal Andrew J. Zabierek, (12) Sergeant Jan M. Argonish, Peckville, (57) Sergeant First Class Victor H. Cer- Chelmsford, Massachusetts; Pennsylvania; vantes, Stockton, California; (3979) Corporal Jesse M. Zamora, Las (13) Sergeant First Class Moses E. (58) Captain Jeremy A. Chandler, Clarks- Cruces, New Mexico; Armstead, Rochester, New York; ville, Tennessee; (3980) Corporal Jose Zamora Sunland, (14) Private Alan J. Austin, Houston, (59) Technical Sergeant John A. Chapman, Park, New Mexico; Texas; Waco, Texas; (3981) Specialist Nicholas J. Zangara, (15) Petty Officer Second Class Matthew G. (60) Sergeant First Class Nathan R. Chap- Philadelphia, Pennsylvania; Axelson, Cupertino, California; man, San Antonio, Texas; (3982) Civilian Robert J. Zangas, Prince (16) Chief Warrant Officer David Ayala, (61) Staff Sergeant Kyu H. Chay, Fayette- William County, Virginia; New York, New York; ville, North Carolina; (3983) Corporal Adam O. Zanutto, Caliente, (17) Staff Sergeant Charlie L. Bagwell, (62) Sergeant Steven Checo, New York, California; Lake Toxaway, North Carolina; New York; (3984) Specialist Mark Anthony Zapata, Ed- (18) Private Michael V. Bailey, Waldorf, (63) Staff Sergeant Craig W. Cherry, Win- inburg, Texas; Maryland; chester, Virginia; (3985) Sergeant First Class William A. (19) Master Sergeant Scott R. Ball, Mount (64) Staff Sergeant Robert J. Chiomento, Zapfe, Muldraugh, Kentucky; Holly Springs, Pennsylvania; Fort Dix, New Jersey; (3986) Lance Corporal Thomas J. Zapp, (20) Captain Matthew W. Bancroft, Shasta, (65) Sergeant Cory L. Clark, Plant City, Houston, Texas; California; Florida; (3987) Sergeant First Class Mickey E. Zaun, (21) Sergeant Major Barbaralien Banks, (66) Lance Corporal Jeffery L. Clark, Bay Brooklyn Park, Minnesota; Harvey, Louisiana; City, Florida; (3988) Private First Class Angelo A. (22) Sergeant Michael C. Barry, Overland (67) Gunnery Sergeant Theodore Clark, Jr., Zawaydeh, San Bruno, California; Park, Kansas; Emporia, Virginia; (3989) Specialist Edgardo Zayas, Dor- (23) Major Larry J. Bauguess, Jr., Mora- (68) Master Sergeant Herbert R. Claunch, chester, Massachusetts; vian Falls, North Carolina; Wetumpka, Alabama; (3990) Staff Sergeant Kevin L. Zeigler, (24) Sergeant Tane T. Baum, Pendleton, (69) Staff Sergeant Shawn M. Clemens, Al- Overland Park, Kansas; Oregon; legany, New York; (3991) Private First Class Kenneth E. (25) Sergeant Bobby E. Beasley, Inwood, (70) Specialist Brian Michael Clemens, Ko- Zeigler II, Dillsburg, Pennsylvania; West Virginia; komo, Indiana; (3992) Private Matthew T. Zeimer, (26) Lieutenant Colonel Richard J. (71) Staff Sergeant Jesse G. Clowers, Jr., Glendive, Montana; Berrettini, Wilcox, Pennsylvania; Herndon, Virginia; (3993) Major Douglas Zembiec, Albu- (27) Private First Class Matthew L. (72) Staff Sergeant Walter F. Cohee III, querque, New Mexico; Bertolino, Hampstead, New Hampshire; Wicomico, Maryland; (3994) Private First Class Benjamin T. (28) Lance Corporal Bryan P. Bertrand, (73) Corporal Jeremiah S. Cole, Hiawatha, Zieske, Concord, California; Coos Bay, Oregon; Kansas; (3995) First Lieutenant Dennis W. Zilinski, (29) Private Joseph R. Blake, Portland, Or- (74) Staff Sergeant Casey D. Combs, Au- Freehold, New Jersey; egon; burn, Washington; (3996) Private First Class Nicholaus E. (30) Sergeant Jesse Blamires, South Jor- (75) Private First Class Matthew A. Com- Zimmer, Columbus, Ohio; dan, Utah; mons, Boulder City, Nevada; (3997) Sergeant Christopher Michael Zim- (31) Corporal Joshua C. Blaney, Matthews, (76) Captain David S. Connolly, Boston, merman, Stephenville, Texas; North Carolina; Massachusetts; (3998) Sergeant Luke J. Zimmerman, Lux- (32) Sergeant First Class Matthew D. (77) Specialist Robert J. Cook, Sun Prairie, emburg, Wisconsin; Blaskowski, Levering, Michigan; Wisconsin; (3999) Private Travis C. Zimmerman, New (33) Sergeant Jay A. Blessing, Tacoma, (78) Tech. Sergeant Sean M. Corlew, Thou- Berlinville, Pennsylvania; Washington; sand Oaks, California; (4000) Corporal Christopher E. Zimny, (34) Sergeant Phillip Allen Bocks, Troy, (79) Corporal Bernard P. Corpuz, Cook, Illinois; Michigan; Watsonville, California; (4001) Corporal Matthew R. Zindars, Water- (35) Captain David A. Boris, Pennsylvania; (80) Staff Sergeant Heathe N. Craig, Sev- town, Wisconsin; (36) Major Thomas G. Bostick, Jr., Llano, ern, Maryland; (4002) Corporal Nicholas L. Ziolkowski, Texas; (81) Staff Sergeant Brian T. Craig, Hous- Towson, Maryland; (37) Chief Petty Officer Matthew J. Bour- ton, Texas; (4003) Corporal Ian T. Zook, Port St. Lucie, geois, Tallahassee, Florida; Florida; (38) Staff Sergeant Collin J. Bowen, (82) Specialist Richard M. Crane, Independ- (4004) Lance Corporal Brent Zoucha, Millersville, Maryland; ence, Missouri; Clarks, Nebraska; (39) Private First Class Brian J. Bradbury, (83) Sergeant Peter P. Crose, Orange Park, (4005) Lance Corporal Scott A. Zubowski, Saint Joseph, Missouri; Florida; Manchester, Indiana; (40) Sergeant Joshua C. Brennan, Ontario, (84) Private First Class Joseph Cruz, Whit- (4006) Lance Corporal Robert Paul Oregon; tier, California; Zurheide, Jr., Tucson, Arizona; (41) Sergeant Bryan A. Brewster, Fontana, (85) Senior Airman Jason D. Cunningham, (4007) Staff Sergeant Michael S. Zyla, California; Camarillo, California; Elgin, Oregon; and (42) Lance Corporal Billy D. Brixey, Jr., (86) Staff Sergeant Joseph F. Curreri, Los (4008) Corporal Casey P. Zylman, Coleman, Ferriday, Louisiana; Angeles, California; Michigan; and (43) Sergeant First Class William R. (87) First Sergeant Michael S. Curry, Jr., (4009) Sergeant Jevon K. Jordan, Norfolk, Brown, Fort Worth, Texas; Dania Beach, Florida; Virginia (44) Sergeant Charles R. Browning, Tucson, (88) Captain Patrick Damon, Falmouth, Whereas the following 487 members of the Arizona; Maine; United States Armed Forces have lost their (45) Master Sergeant Thomas L. Bruner, (89) Private First Class Adam J. Davis, lives in support of the war in Afghanistan: Owensboro, Kentucky; Twin Falls, Idaho; (1) Captain Clayton Lee Adamkavicius, (46) Gunnery Sergeant Stephen L. Bryson, (90) Private First Class Justin R. Davis, Fairdale, Kentucky; Montgomery, Alabama; Gaithersburg, Maryland; (2) Sergeant Kevin D. Akins, Burnsville, (47) Staff Sergeant James D. Bullard, Mar- (91) Sergeant Robert G. Davis, Jackson, North Carolina; ion, South Carolina; Missouri; (3) Sergeant Major Phillip R. Albert, (48) Staff Sergeant Eric Caban, Fort Worth, (92) Master Sergeant Jefferson D. Davis, Terryville, Connecticut; Texas; Clarksville, Tennessee; (4) Staff Sergeant Leroy E. Alexander, Dale (49) Major Jeffrey R. Calero, Queens Vil- (93) Machinist’s Mate Fireman Apprentice City, Virginia; lage, New York; Bryant L. Davis, Chicago, Illinois; (5) Chief Warrant Officer Christopher M. (50) Specialist Isaiah Calloway, Jackson- (94) Staff Sergeant Edwin H. Dazachacon, Allgaier, Middleton, Missouri; ville, Florida; Belleville, Illinois; (6) Specialist Thomas F. Allison, Roy, (51) Staff Sergeant Damion G. Campbell, (95) Specialist Robert W. Defazio, West Washington; Baltimore, Maryland; Babylon, New York; (7) Corporal William M. Amundson, Jr., (52) Lance Corporal Dustin L. Canham, (96) Sergeant First Class Bernard Lee The Woodlands, Texas; Lake Stevens, Washington; Deghand, Mayetta, Kansas; (8) Lance Corporal Nicholas R. Anderson, (53) Petty Officer Third Class Mark R. Can- (97) Private Jerod R. Dennis, Antlers, Sauk City, Wisconsin; non, Lubbock, Texas; Oklahoma; (9) Specialist Marc A. Anderson, Brandon, (54) Staff Sergeant Nicholas R. Carnes, (98) Sergeant Jeremy E. DePottey, Florida; Dayton, Kentucky; Ironwood, Michigan; (10) Master Sergeant Evander E. Andrews, (55) Sergeant First Class Scott M. Carney, (99) Specialist Isaac E. Diaz Rio, Hondo, Solon, Maine; Ankeny, Iowa; Texas;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00115 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.094 S03APPT1 ccoleman on PRODPC75 with SENATE S2482 CONGRESSIONAL RECORD — SENATE April 3, 2008 (100) Petty Officer Second Class Danny P. (144) Sergeant Gregory Michael Frampton, (188) Specialist Blake W. Hall, East Prai- Dietz, Littleton, Colorado; Fresno, California; rie, Missouri; (101) Private First Class James R. Dillon, (145) Private First Class Benny S. Frank- (189) Specialist David E. Hall, Uniontown, Jr., Grove City, Pennsylvania; lin, Hammond, Louisiana; Kansas; (102) Specialist Jason A. Disney, Fallon, (146) Staff Sergeant Jacob L. Frazier, St. (190) Chief Warrant Officer (CW2) Stanley Nevada; Charles, Illinois; L. Harriman, Wade, North Carolina; (103) Major Duane W. Dively, Rancho Cali- (147) Specialist Daniel J. Freeman, Cin- (191) Sergeant Taurean T. Harris, Liberty, fornia, California; cinnati, Ohio; Mississippi; (104) Staff Sergeant John G. Doles, (148) Staff Sergeant Kerry W. Frith, Las (192) Private First Class Joseph G. Harris, Claremore, Oklahoma; Vegas, Nevada; Sugar Land, Texas; (105) Chief Warrant Officer Christopher B. (149) Staff Sergeant William R. Fritsche, (193) Colonel James W. Harrison, Jr., Mis- Donaldson, Illinois; Martinsville, Indiana; souri; (106) Staff Sergeant James P. Dorrity, (150) Staff Sergeant Joseph F. Fuerst III, (194) Private First Class Jason D. Goldsboro, North Carolina; Tampa, Florida; Hasenauer, Hilton, New York; (107) Sergeant David J. Drakulich, Reno, (151) Sergeant First Class Mike Fuga, (195) Sergeant Nathan P. Hays, Lincoln, Nevada; Nuuli, American Samoa; Washington; (108) Private First Class Robert E. Drawl, (152) Specialist Chad C. Fuller, Potsdam, (196) Sergeant James K. Healy, Hesperia, Jr., Alexandria, Virginia; New York; California; (109) First Lieutenant Brandon R. Dronet, (153) Staff Sergeant Michael J. Gabel, (197) Senior Chief Petty Officer Daniel R. Erath, Louisiana; Crowley, Louisiana; Healy, Exeter, New Hampshire; (110) Technical Sergeant Scott E. Duffman, (154) Staff Sergeant Justin J. Galewski, (198) Private First Class Kyle M. Hemauer, Albuquerque, New Mexico; Olathe, Kansas; Chilton, Wisconsin; (111) Sergeant Russell M. Durgin, (155) Sergeant Daniel Lee Galvan, Moore, (199) Sergeant First Class Christopher Dale Henniker, New Hampshire; Oklahoma; Henderson, Hillsboro, Oregon; (112) Specialist Ciara M. Durkin, Quincy, (156) Private First Class Ryan C. Garbs, (200) Private John M. Henderson, Jr., Co- Massachusetts; Edwardsville, Illinois; lumbus, Georgia; (113) Chief Warrant Officer Scott W. Dyer, (157) Private First Class Damian J. Garza, (201) Sergeant First Class John Henning, Cocoa Beach, Florida; Odessa, Texas; Lake Charles, Louisiana; (114) Private James H. Ebbers, Bridgeview, (158) Specialist Rogelio R. Garza, Jr., Cor- (202) Sergeant Edelman L. Hernandez, Hy- Illinois; pus Christi, Texas; attsville, Maryland; (115) Private First Class Kevin F. Edgin, (159) Sergeant Christopher P. Geiger, Al- (203) Private First Class Emmanuel Her- Dyersburg, Tennessee; lentown, Pennsylvania; nandez, Yauco, Puerto Rico; (116) Specialist Jonn Joseph Edmunds, (160) Lance Corporal Phillip C. George, (204) Sergeant First Class Rocky H. Her- Cheyenne, Wyoming; Houston, Texas; rera, Salt Lake City, Utah; (117) Captain Daniel W. Eggers, Cape Coral, (161) Staff Sergeant Scott N. Germosen, (205) Specialist Brett M. Hershey, State Florida; Queens, New York; College, Pennsylvania; (118) Chief Warrant Officer Jody L. Egnor, (162) Chief Warrant Officer (CW2) Thomas (206) Sergeant Edward R. Heselton, Easley, Middletown, Ohio; J. Gibbons, Calvert County, Maryland; South Carolina; (119) Senior Airman Nicholas D. Eischen, (163) Master Sergeant Randy J. Gillespie, (207) Specialist Julie R. Hickey, Galloway, Sanger, California; Coaldale, Colorado; Ohio; (120) Staff Sergeant Gregory L. Elam, Co- (164) Sergeant Benjamin L. Gilman, Meri- (208) Staff Sergeant Jason Carlyle Hicks, lumbus, Georgia; den, Connecticut; Jefferson, South Carolina; (209) Sergeant David M. Hierholzer, (121) Master Sergeant Emigdio E. (165) Staff Sergeant Shamus O. Goare, Lewisburg, Tennessee; Elizarraras, Pico Rivera, California; Danville, Ohio; (210) Master Sergeant Michael T. Hiester, (122) Private First Class Zachary R. (166) Sergeant Nicholes Darwin Golding, Bluffton, Indiana; Endsley, Spring, Texas; Addison, Maine; (211) Sergeant Anton J. Hiett, Mount Airy, (123) Sergeant Michael J. Esposito, Jr., (167) Corporal Billy Gomez, Perris, Cali- North Carolina; Brentwood, New York; fornia; (212) Sergeant Stephen C. High, (124) First Lieutenant Forrest P. Ewens, (168) Sergeant First Class Chad A. Spartanburg, South Carolina; Washington; Gonsalves, Turlock, California; (213) Sergeant Adrian E. Hike, Callender, (125) Staff Sergeant Troy S. Ezernack, Lan- (169) Specialist Rodrigo Gonzalez-Garza, Iowa; caster, Pennsylvania; San Antonio, Texas; (214) Sergeant Shawn F. Hill, Wellford, (126) Staff Sergeant Christopher M. Falkel, (170) Senior Airman Alecia S. Good, South Carolina; Highlands Ranch, Colorado; Broadview Heights, Ohio; (215) Specialist Joshua Lee Hill, Fair- (127) Major Curtis D. Feistner, White Bear (171) Private First Class Jordan E. Goode, mount, Indiana; Lake, Minnesota; Kalamazoo, Michigan; (216) First Lieutenant Derek S. Hines, (128) Sergeant Gregory D. Fejeran, (172) Caporal Nathan J. Goodiron, Newburyport, Massachusetts; Barrigada, Guam; Mandaree, North Dakota; (217) Staff Sergeant Brian S. Hobbs, Mesa, (129) Lieutenant Colonel Joseph J. Fenty, (173) Chief Warrant Officer Corey J. Arizona; Florida; Goodnature, Clarks Grove, Minnesota; (218) Specialist Christopher S. Honaker, (130) Sergeant Christopher J. C. Fernandez, (174) Staff Sergeant Robert S. Goodwin, Al- Cleveland, North Carolina; Dededo, Guam; bany, Georgia; (219) Sergeant Bryce D. Howard, Van- (131) Specialist Kyle Ka Eo Fernandez, (175) Specialist Brandon D. Gordon, Naples, couver, Washington; Waipahu, Hawaii; Florida; (220) Sergeant First Class Merideth How- (132) First Lieutenant Matthew C. Ferrara, (176) Specialist Brian Gorham, Woodburn, ard, Waukesha, Wisconsin; Torrance, California; Kentucky; (221) Staff Sergeant Christopher T. Howick, (133) Captain Michael T. Fiscus, Milford, (177) Seaman Katrina Renee Grady, Green- Hamburg, New York; Indiana; ville, Mississippi; (222) Sergeant Buddy J. Hughie, Poteau, (134) Chief Warrant Officer (CW3) William (178) Major Michael L. Green, Chagrin Oklahoma; T. Flanigan, Milan, Tennessee; Falls, Ohio; (223) First Lieutenant Joshua M. Hyland, (135) Corporal Jacob R. Fleischer, St. (179) Corporal Jeremy R. Greene, Spring- Missoula, Montana; Louis, Missouri; field, Ohio; (224) Specialist Wakkuna Jackson, Jack- (136) Chief Warrant Officer John M. Flynn, (180) Sergeant John C. Griffith, Las Vegas, sonville, Florida; Sparks, Nevada; Nevada; (225) Sergeant First Class Mark Wayne (137) Chief Petty Officer Jacques J. Fontan, (181) Corporal Aaron M. Griner, Tampa, Jackson, Glennie, Michigan; New Orleans, Louisiana; Florida; (226) Sergeant Kip A. Jacoby, Pompano (138) Sergeant Ryan D. Foraker, Logan, (182) Chief Warrant Officer Travis W. Beach, Florida; Ohio; Grogan, Virginia Beach, Virginia; (227) Electrician’s Mate Fireman Appren- (139) Sergeant James F. Fordyce, Newton (183) Specialist Agustin Gutierrez, San tice Michael J. Jakes, Jr., Brooklyn, New Square, Pennsylvania; Jacinto, California; York; (140) Sergeant Jeremy D. Foshee, Jackson, (184) Specialist Kelvin Feliciano Gutierrez, (228) Command Sergeant Dennis Jallah, Alabama; Anasco, Puerto Rico; Jr., Fayetteville, North Carolina; (141) Corporal Dale E. Fracker, Jr., Apple (185) Sergeant Gabriel Guzman, Hornbrook, (229) Petty Officer Second Class Laquita Valley, California; California; Pate James, Orange Park, Florida; (142) Corporal David M. Fraise, New Orle- (186) Sergeant Brandon E. Hadaway, Val- (230) Technical Sergeant William H. Jeffer- ans, Louisiana; ley, Alabama; son, Jr., Norfolk, Virginia; (143) Petty Officer Third Class John T. (187) First Lieutenant Benjamin J. Hall, (231) Private First Class Joseph A. Jeffries, Fralish, New Kingstown, Pennsylvania; Virginia; Beaverton, Oregon;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00116 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.094 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2483 (232) Private First Class Jason D. Johns, (276) Second Lieutenant Scott B. Lundell, (320) Sergeant Orlando Morales, Manati, Frankton, Indiana; Hurricane, Utah; Puerto Rico; (233) Sergeant Travon T. Johnson, (277) Staff Sergeant Patrick L. Lybert, (321) Petty Officer Third Class Fabricio Palmdale, California; Ladysmith, Wisconsin; Moreno, Brooklyn, New York; (234) Sergeant First Class Allen C. John- (278) Master Sergeant Patrick D. Magnani, (322) Staff Sergeant Dwight J. Morgan, son, Los Molinos, California; Martinez, California; Mendocino, California; (235) Electronics Technician Third Class (279) Master Sergeant Thomas D. Maholic, (323) Sergeant First Class John D. Morton, Benjamin Johnson, Rochester, New York; Bradford, Pennsylvania; Stanton, Kentucky; (236) Petty Officer Second Class Darrell (280) Master Sergeant Michael Maltz, St. (324) Staff Sergeant James D. Mowris, Au- Jones, Wellston, Ohio; Petersburg, Florida; rora, Missouri; (237) Lance Corporal Kevin B. Joyce, (281) Sergeant First Class Curtis Mancini, (325) Specialist Scott J. Mullen, Tucson, Ganado, Arizona; Fort Lauderdale, Florida; Arizona; (238) Sergeant First Class Matthew Ryan (282) Corporal Matthieu Marcellus, Gaines- (326) Lieutenant Colonel Charles E. Kahler, Granite Falls, Minnesota; ville, Florida; Munier, Wheatland, Wyoming; (239) Sergeant Robert P. Kassin, Las Vegas, (283) Private Giovanny Maria, New York, (327) Sergeant First Class Pedro A. Munoz, Nevada; New York; Aquada, Puerto Rico; (240) Specialist Christopher M. (284) Private First Class Conor G. (328) Sergeant First Class Marcus V. Katzenberger, St. Louis, Missouri; Masterson, Inver Grove Heights, Minnesota; Muralles, Shelbyville, Indiana; (241) Specialist James C. Kearney III, (285) Master Sergeant Edwin A. (329) Lieutenant Michael P. Murphy, Emerson, Iowa; Matoscolon, Juana Diaz, Puerto Rico; Patchogue, New York; (242) First Lieutenant Benjamin D. (286) Sergeant Jamie O. Maugans, Wichita, (330) Major Edward J. Murphy, South Caro- Keating, Shapleigh, Maine; Kansas; lina; (243) Sergeant Michael J. Kelley, Scituate, (287) Petty Officer First Class Alec Mazur, (331) Lance Corporal Ryan J. Nass, Frank- Massachusetts; Vernon, New York; lin, Wisconsin; (244) Technical Sergeant William J. (288) Chief Warrant Officer Hershel D. (332) Staff Sergeant William R. Neil, Kerwood, Houston, Missouri; McCants, Jr., Arizona; Holmden, New Jersey; (245) Sergeant First Class Jeffrey D. Ket- (289) Sergeant Charles J. McClain, Fort (333) Staff Sergeant Clinton T. Newman, tle, Madill, Oklahoma; Riley, Kansas; San Antonio, Texas; (246) Lieutenant Colonel Paul W. (290) Private First Class Daniel B. (334) Sergeant Long N. Nguyen, Portland, Kimbrough, Little Rock, Arkansas; McClenney, Shelbyville, Tennessee; Oregon; (247) Specialist Adam G. Kinser, Sac- (291) Sergeant Jonathan E. McColley, Get- (335) Travis W. Nixon, St. John, Wash- ramento, California; tysburg, Pennsylvania; ington; (248) Lance Corporal Nicholas C. Kirven, (292) Captain Daniel G. McCollum, Rich- (336) Specialist Justin L. O’Donohoe, San Fairfax/Richmond, Virginia; land, South Carolina; Diego, California; (249) Staff Sergeant Daniel Leon Kisling, (293) Master Sergeant William L. McDaniel (337) Private First Class Alex Oceguera, Jr., Neosho, Missouri; II, Greenville, Ohio; San Bernardino, California; (250) Sergeant Charles B. Kitowski III, (294) Sergeant Edmund W. McDonald, (338) Sergeant First Class James S. Farmers Branch, Texas; Casco, Maine; Ochsner, Waukegan, Illinois; (251) Specialist Chris Kleinwachter, (295) Sergeant Thomas P. McGee, Haw- (339) Major Henry S. Ofeciar, Agana, Guam; Wahpeton, North Dakota; thorne, California; (340) Staff Sergeant Tony B. Olaes, (252) Specialist Steven R. Koch, Milltown, (296) Staff Sergeant Robert K. McGee, Walhalla, South Carolina; New Jersey; Martinsville, Virginia; (341) Corporal Tanner J. O’Leary, Eagle (253) Staff Sergeant Shane M. Koele, (297) Lieutenant Michael M. McGreevy, Jr., Butte, South Dakota; Wayne, Nebraska; Portville, New York; (342) Sergeant Michael C. O’Neill, Mans- (254) Lieutenant Commander Erik S. (298) Sergeant Major Jeff McLochlin, Roch- field, Ohio; Kristensen, San Diego, California; ester, Indiana; (343) Private First Class Evan W. O’Neill, (255) Staff Sergeant Patrick F. (299) Lieutenant Colonel Michael J. Haverhill, Massachusetts; Kutschbach, McKees Rocks, Pennsylvania; McMahon, Connecticut; (344) Chief Warrant Officer (CW3) Mark (256) Staff Sergeant Anthony S. Lagman, (300) Private First Class Spence A. McNeil, O’Steen, Ozark, Alabama; Yonkers, New York; Bennettsville, South Carolina; (345) Petty Officer First Class Brian J. (257) Private First Class Joseph M. (301) Specialist Curtis R. Mehrer, Bis- Ouellette, Needham, Massachusetts; Lancour, Swartz Creek, Michigan; marck, North Dakota; (346) Captain Bartt D. Owens, Middletown, (258) Sergeant First Class Mitchell A. (302) Specialist Daniel F. Mehringer, Mor- Ohio; Lane, Lompoc, California; gantown, West Virginia; (347) Sergeant Timothy P. Padgett, (259) Specialist Sean K. A. Langevin, Wal- (303) First Sergeant Tobias C. Meister, Defuniak Springs, Florida; nut Creek, California; Jenks, Oklahoma; (348) Private Christopher L. Palmer, Sac- (260) Lance Corporal Samuel W. Large, Jr., (304) Staff Sergeant Luis M. Melendez, ramento, California; Villa Rice, Georgia; Sanchez Bayamon, Puerto Rico; (349) Sergeant Jason T. Palmerton, Au- (261) Sergeant James Shawn Lee, Mount (305) Specialist Hugo V. Mendoza, Glendale, burn, Nebraska; Vernon, Indiana; Arizona; (350) Private First Class Kristian E. (262) Sergeant Michael R. Lehmiller, An- (306) Sergeant Jeffery S. Mersman, Parker, Parker, Slidell, Louisiana; derson, South Carolina; Kansas; (351) Engineman First Class Vincent (263) Sergeant Donnie Leo F. Levens, Long (307) Captain Seth R. Michaud, Hudson, Parker, Preston, Mississippi; Beach, Mississippi; Massachusetts; (352) Petty Officer Second Class Eric Shane (264) Captain Darrell C. Lewis, Washington, (308) Petty Officer Second Class Charles Patton, Boulder City, Nevada; District of Columbia; Luke Milam, Littleton, Colorado; (353) Staff Sergeant Robert J. Paul, The (265) Corporal Timothy D. Lewis, (309) Staff Sergeant Robert J. Miller, Iowa Dalles, Oregon; Lawrenceburg, Kentucky; City, Iowa; (354) Corporal Ronald R. Payne, Jr., Lake- (266) Staff Sergeant Roy P. Lewsader, Jr., (310) Private First Class Mykel F. Miller, land, Florida; Clinton, Indiana; Phoenix, Arizona; (355) Specialist Pedro Pena, Florida; (267) Specialist George V. Libby, Aberdeen, (311) Sergeant First Class Daniel E. Miller, (356) Sergeant Roger P. Pen˜ a, Jr., San An- North Carolina; Rossford, Ohio; tonio, Texas; (268) Second Lieutenant Stuart F. Liles, (312) Specialist Harley D. R. Miller, Spo- (357) Sergeant Theodore L. Perreault, Web- Hot Spring, Arkansas; kane, Washington; ster, Massachusetts; (269) Master Sergeant Arthur L. Lilley, (313) Private First Class Joseph A. Miracle, (358) Sergeant Dustin J. Perrott, Fred- Smithfield, Pennsylvania; Ortonville, Michigan; ericksburg, Virginia; (270) Sergeant Nathaniel Brad Lindsey, (314) Sergeant First Class Sean K. Mitchell, (359) Sergeant First Class Daniel H. Troutdale, Oregon; Monterey, California; Petithory, Cheshire, Massachusetts; (271) Staff Sergeant Christian Longsworth, (315) Chief Warrant Officer Timothy Wayne (360) Private First Class Christopher F. Newark, New Jersey; Moehling, Panama City, Florida; Pfeifer, Spalding, Nebraska; (272) Airman First Class Raymond Losano, (316) Staff Sergeant Robert J. Mogensen, (361) Staff Sergeant Joseph E. Phaneuf II, Del Rio, Texas; Leesville, Louisiana; Eastford, Connecticut; (273) Private First Class Jacob Michael (317) Sergeant First Class Jared C. Monti, (362) Sergeant Edward O. Philpot, Latta, Lowell, New Lenox, Illinois; Raynham, Massachusetts; South Carolina; (274) Specialist Jason A. Lucas, Columbus, (318) Sergeant Alberto D. Montrond, Suf- (363) Staff Sergeant Christopher N. Piper, Ohio; folk, Massachusetts; Marblehead, Massachusetts; (275) Petty Officer First Class Jeffery A. (319) Private Brian M. Moquin, Jr., Worces- (364) Senior Airman Jason Thomas Plite, Lucas, Corbett, Oregon; ter, Massachusetts; Lansing, Michigan;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00117 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.094 S03APPT1 ccoleman on PRODPC75 with SENATE S2484 CONGRESSIONAL RECORD — SENATE April 3, 2008 (365) Major Steven Plumhoff, Neshanic (409) Staff Sergeant Anissa A. Shero, Graf- (453) Corporal Steven Charles Tucker, Station, New Jersey; ton, West Virginia; Grapevine, Texas; (366) Master Sergeant James W. ‘‘Tre´’’ (410) Specialist Chris Sitton, Montrose, (454) Petty Officer Third Class Emory J. Ponder III, Franklin, Tennessee; Colorado; Turpin, Dahlonega, Georgia; (367) Ensign Jerry O. Pope II, Tallahassee, (411) Lance Corporal Antonio J. Sledd, (455) Sergeant First Class Peter P. Tycz II, Florida; Tampa, Florida; Tonawanda, New York; (368) Chief Warrant Officer Clint J. (412) Major Douglas E. Sloan, Charlevoix, (456) Angelo J. Vaccaro, Deltona, Florida; Prather, Cheney, Washington; Michigan; (457) Lance Corporal Steven A. Valdez, (369) Chief Warrant Officer Bruce E. Price, (413) Private First Class Andrew Small, McRea, Arkansas; Maryland; Wiscasset, Maine; (458) Sergeant Alex Van Aalten, Monterey, (370) Navy Petty Officer Third Class Jason (414) Chief Warrant Officer John D. Smith, Tennessee; Profitt, Charlestown, Indiana; West Valley City, Utah; (459) Sergeant Travis A. Van Zoest, (371) Staff Sergeant Brian C. Prosser, (415) Private First Class Norman K. Sny- Larimore, North Dakota; Frazier Park, California; der, Carlisle, Indiana; (460) Sergeant Gene A. Vance, Jr., Morgan- (372) Chief Warrant Officer John A. Quin- (416) Lance Corporal Nicholas J. Sovie, town, West Virginia; lan, New Jersey; Ogdensburg, New York; (461) Specialist Travis R. Vaughn, (373) Corporal Adam D. Quinn, Orange City, (417) Sergeant First Class Christopher J. Reinbeck, Iowa; Florida; Speer, Albuquerque, New Mexico; (462) Specialist Andrew Velez, Lubbock, (374) First Sergeant Christopher C. (418) Specialist Michael K. Spivey, Fay- Texas; Rafferty, Brownsville, Pennsylvania; etteville, North Carolina; (463) Private First Class Timothy R. (375) Sergeant Robert T. Rapp, Sonora, (419) Corporal Derek A. Stanley, Tulsa, Vimoto, Fort Campbell, Kentucky; California; Oklahoma; (464) Private First Class Brandon James (376) Staff Sergeant Joseph R. Ray, Ashe- (420) Captain Joshua E. Steele, North Hen- Wadman, West Palm Beach, Florida; ville, North Carolina; derson, Illinois; (465) First Lieutenant Laura M. Walker, (377) Major Stephen C. Reich, Washington (421) Lieutenant Colonel John Stein, Texas; Depot, Connecticut; Bardolph, Illinois; (466) Staff Sergeant Thomas A. Walkup, (378) Private First Class Juan S. Restrepo, (422) Sergeant David A. Stephens, Jr., Millville, New Jersey; Pembroke Pines, Florida; Tullahoma, Tennessee; (467) Sergeant First Class Johnny C. Walls, (379) First Class Petty Officer Thomas E. (423) Sergeant Patrick D. Stewart, Fernley, Bremerton, Washington; Retzer, San Diego, California; Nevada; (468) Technical Sergeant Howard A. Wal- (380) Staff Sergeant Juan M. Ridout, Maple (424) Specialist Matthew P. Steyart, Mount ters, Port Huron, Michigan; Tree, Washington; Shasta, California; (469) Specialist Wesley R. Wells, (381) Specialist Jeffrey G. Roberson, (425) Sergeant First Class James J. Stod- Libertyville, Illinois; Phelan, California; dard, Jr., Crofton, Maryland; (470) Staff Sergeant Joshua R. Whitaker, (382) Aviation Boatswain’s Mate-Handling (426) Sergeant First Class John Thomas, Long Beach, California; First Class Neil C. Roberts, Woodland, Cali- Stone Tunbridge/Norwich, Vermont; (471) Staff Sergeant Robert F. White, Cross fornia; (427) Private First Class Kristofor T. Lanes, West Virginia; (383) Private First Class Antione V. Robin- Stonesifer, Missoula, Montana; (472) Lance Corporal Russell P. White, son, Detroit, North Carolina; (428) Specialist Chrystal Gaye Stout, Trav- Dagsboro, Delaware; (384) Lieutenant Colonel Michael A. Robin- elers Rest, South Carolina; (473) Private Robert C. White III, Camden, son, Sylacauga, Alabama; (429) Specialist Sascha Struble, Philadel- New Jersey; (385) Specialist Fernando D. Robinson, phia, New York; (474) Private First Class James P. White, Hawthorne, California; (430) Warrant Officer Adrian B. Stump, Jr., Huber Heights, Ohio; (386) Staff Sergeant Christopher L. Robin- Pendleton, Oregon; (475) Sergeant Jeffery S. Wiekamp, Utopia, son, Brandon, Mississippi; (431) Petty Officer Second Class James Texas; (387) Captain Charles D. Robinson, Haddon Suh, Deerfield Beach, Florida; (476) Sergeant Adam A. Wilkinson, Fort Heights, New Jersey; (432) Sergeant First Class Daniel Suplee, Carson, Colorado; (388) Lieutenant Commander Thomas L. Ocala, Florida; (477) Captain Bryan D. Willard, Robinson, Kingston, Massachusetts; (433) Sergeant Philip J. Svitak, Joplin, Hummelstown, Pennsylvania; (389) Chief Warrant Officer Joshua R. Rod- Missouri; (478) Private First Class Thomas R. Wilson, gers, Carson City, Nevada; (434) Staff Sergeant Paul A. Sweeney, Maurertown, Virginia; (390) Private First Class Jessy S. Rogers, Lakeville, Pennsylvania; (479) Specialist Christopher M. Wilson, Copper Center, Alaska; (435) Private First Class Pendelton L. Bangor, Maine; (391) Staff Sergeant Alan L. Rogers, (480) Sergeant Jeannette L. Winters, Du Kearns, Utah; Sykes II, Chesapeake, Virginia; (436) Commander Adrian Basil Szwec, Chi- Page, Illinois; (392) Sergeant First Class Daniel A. Ro- (481) Specialist Phillip L. Witkowski, Fre- mero, Lafayette, Colorado; cago, Illinois; (437) Staff Sergeant Donald T. Tabb, Nor- donia, New York; (393) Specialist Lester G. Roque, Torrance, (482) Sergeant Roy A. Wood, Alva, Florida; California; cross, Georgia; (438) Petty Officer First Class David M. (483) Staff Sergeant Romanes L. Woodard, (394) Sergeant Kenneth G. Ross, Peoria, Ar- Hertford, North Carolina; izona; Tapper, Camden County, New Jersey; (439) Private First Class Mathew D. Taylor, (484) Corporal Travis M. Woods, Redding, (395) Staff Sergeant Larry I. Rougle, West California; Jordan, Utah; Cameron Park, California; (440) Petty Officer First Class Jeffrey S. (485) Sergeant Jeremy R. Wright, Shelby- (396) Staff Sergeant Bruce A. Rushforth, ville, Indiana; Jr., Bridgewater, Massachusetts; Taylor, Midway, West Virginia; (441) Sergeant First Class John E. Taylor, (486) Sergeant Charles E. Wyckoff, Jr., (397) Sergeant First Class Michael L. Rus- Chula Vista, California; and sell, Stafford, Virginia; Wichita Falls, Texas; (442) Staff Sergeant John ‘‘Mike’’ Teal, (487) Private First Class Daniel Zizumbo, (398) Master Sergeant Wilberto Sabalu, Jr., Chicago, Illinois; and Chicago, Illinois; Dallas, Texas; (399) Airman First Class Jesse M. Samek, (443) Sergeant Zachary D. Tellier, Char- Whereas these American men and women Rogers, Arkansas; lotte, North Carolina; have paid the ultimate sacrifice for their (400) Sergeant Ian T. Sanchez, Staten Is- (444) Lance Corporal Juston Tyler Thacker, country: Now, therefore, be it land, New York; Bluefield, West Virginia; Resolved, That the Senate honors the serv- (401) Staff Sergeant Charles R. Sanders, (445) Staff Sergeant Michael D. Thomas, ice and sacrifice of the men and women who Jr., Charleston, Missouri; Seffner, Florida; have lost their lives in support of Operation (402) Staff Sergeant Michael W. Schafer, (446) Private First Class Kristofer D. S. Iraqi Freedom and Operation Enduring Free- Spring Hill, Florida; Thomas, Roseville, California; dom and honors their families and loved (403) Chief Warrant Officer Chris J. (447) Private First Class Adam L. Thomas, ones. Scherkenbach, Jacksonville, Florida; Palos Hills, Illinois; f (404) Corporal Richard P. Schoener, Hayes, (448) Specialist Patrick D. Tillman, Chan- Louisiana; dler, Arizona; SENATE RESOLUTION 502—COM- (405) Specialist Justin A. Scott, Bellevue, (449) Specialist David N. Timmons, Jr., MEMORATING THE 25TH ANNI- Kentucky; Lewisville, North Carolina; VERSARY OF THE SPACE FOUN- (406) Sergeant Danton K. Seitsinger, Okla- (450) Specialist Juan Manuel Torres, Hous- DATION homa City, Oklahoma; ton, Texas; (407) Senior Airman Adam P. Servais, (451) Chief Warrant Officer (CW3) Eric W. Mr. ALLARD submitted the fol- Onalaska, Wisconsin; Totten, Texas; lowing resolution; which was referred (408) Staff Sergeant Michael A. Shank, (452) Sergeant William John Tracy, Jr., to the Committee on Commerce, Bonham, Texas; Webster, New Hampshire; Science, and Transportation:

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00118 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.094 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2485 S. RES. 502 hold two of the three top conferences Whereas housing integration affects other Whereas 2008 marks the 25th year of excel- for space professionals in the world: dimensions of life, including educational at- lence and service of the Space Foundation; Strategic Space and Defense and the tainment, employment opportunities, access Whereas the mission of the Space Founda- National Space Symposium. The Na- to health care, and home equity; tion is to advance space-related endeavors to Whereas the majority of people in the tional Space Symposium is the premier United States support neighborhood integra- inspire, enable, and propel humanity; space policy and program forum in the Whereas the Space Foundation has become tion and numerous studies have shown the the leading nonprofit organization advancing world. It is a unique opportunity for universal benefits of residential integration; the exploration, development, and use of interaction and discussion among the Whereas the National Fair Housing Alli- space and space education for the benefit of world’s space community. ance estimates that 3,700,000 violations of all humankind; There is no question that space will fair housing laws still occur each year Whereas the Space Foundation embraces continue to play an increasingly im- against African Americans, Latinos, Asian all aspects of space including commercial, portant strategic role in both techno- Americans, and American Indians, and that civil, and national security; number does not include violations that logical advancement and national secu- occur on the basis of other national origins, Whereas the current national security en- rity. The Space Foundation will un- vironment requires extensive use and ad- religion, sex, or familial status or against vancement of space-based assets; doubtedly continue to play a major persons with disabilities; Whereas the Space Foundation has con- role in this arena. I commend the Whereas the Department of Housing and tributed to space education programs in all Space Foundation on their 25th anni- Urban Development estimates that only 1 50 States and also in Europe and Asia; versary, and wish them continued suc- percent of individuals who believe they are Whereas the Space Foundation is regarded cess in the future as they remain an in- victims of housing discrimination report internationally as a leading space advocacy valuable advocate for space. those violations of fair housing laws to the organization, and is a member of the United government, and this underreporting is a f States Delegation to the United Nations major obstacle to achieving equal oppor- Committee on the Peaceful Uses of Outer SENATE RESOLUTION 503—RECOG- tunity in housing; Space; and NIZING AND HONORING THE 40TH Whereas testing of the enforcement of fair Whereas the Space Foundation hosts the ANNIVERSARY OF THE FAIR housing laws continues to uncover a high National Space Symposium and Strategic rate of discrimination in the rental, sales, HOUSING ACT AND THE 20TH AN- mortgage lending, and insurance markets; Space and Defense, 2 of the top conferences NIVERSARY OF THE FAIR HOUS- for space professionals: Now, therefore, be it and Resolved, That the Senate— ING AMENDMENTS ACT OF 1988 Whereas the Fair Housing Act is an essen- (a) recognizes the contributions made by Mr. DURBIN (for himself, Mr. SPEC- tial component of our Nation’s civil rights the Space Foundation; and legislation: Now, therefore, be it TER, Mr. KENNEDY, Mr. DODD, Mr. (b) commemorates the Space Foundation’s Resolved, That the Senate— 25 years of excellence and support to the Na- BROWN, and Mr. VOINOVICH) submitted (1) recognizes and honors the 40th anniver- tion. the following resolution; which was sary of the enactment of the Fair Housing Mr. ALLARD. Mr. President, today I considered and agreed to: Act (42 U.S.C. 3601 et seq.) and the 20th anni- rise to commemorate the Space Foun- S. RES. 503 versary of the enactment of the Fair Housing dation’s 25th anniversary. Throughout Whereas 2008 marks the 40th anniversary of Amendments Act of 1988 (Public Law 100–430; this time, space has become an integral the enactment of the Fair Housing Act (42 102 Stat. 1619); U.S.C. 3601 et seq.); (2) supports activities to recognize and cel- part of our national security and ev- ebrate the historical milestone represented eryday life. The Space Foundation has Whereas 2008 also marks the 20th anniversary of the enactment of the Fair Housing by the anniversaries of the enactment of the been instrumental in our advance- Amendments Act of 1988 (Public Law 100–430; Fair Housing Act and the enactment of the ments in space, and I am proud to rec- 102 Stat. 1619); Fair Housing Amendments Act of 1988; and ognize their 25th anniversary. Whereas the Chicago Freedom Movement, (3) encourages all levels of government to The Space Foundation is a nonprofit which took place from 1965 to 1967 and was rededicate themselves to the enforcement organization which was founded in 1983 led by the Reverend Doctor Martin Luther and the ideals of fair housing laws. by a small group of innovative individ- King, Jr., raised the national consciousness f uals in Colorado Springs, CO. It began about housing discrimination and shaped the as an organization ‘‘to foster, develop debate that led to landmark fair housing leg- SENATE CONCURRENT RESOLU- and promote, among the citizens of the islation; TION 73—EXPRESSING CONGRES- U.S. and among other people of the Whereas the National Advisory Commis- SIONAL SUPPORT FOR THE sion on Civil Disorders, appointed by Presi- GOALS AND IDEALS OF NA- world, a greater understanding and dent Lyndon B. Johnson and commonly awareness of the practical and theo- TIONAL HEALTH CARE DECI- known as the Kerner Commission, found in SIONS DAY retical utilization of space for the ben- 1968 that ‘‘[o]ur nation is moving toward two efit of civilization and the fostering of societies, one black, one white—separate and Mr. WYDEN (for himself, Mr. ENZI, a peaceful and prosperous world.’’ They unequal’’; Mr. WICKER, Mr. BROWN, and Mr. have certainly lived up to this creed Whereas Congress passed the Fair Housing WHITEHOUSE) submitted the following and have more than excelled in their Act as part of the Civil Rights Act of 1968 concurrent resolution; which was con- promotion and edification of space. (Public Law 90–284; 82 Stat. 73), and Presi- sidered and agreed to: The Space Foundation is a leader in dent Johnson signed the Act into law on April 11, 1968, one week after the assassina- S. CON. RES. 73 exploration and development. They tion of Dr. King; Whereas National Health Care Decisions work with all components of space in- Whereas the Fair Housing Act prohibits Day is designed to raise public awareness of cluding commercial, civil, and national discrimination in housing and housing-re- the need to plan ahead for health care deci- security. The Foundation is regarded lated transactions on the basis of race, color, sions related to end-of-life care and medical internationally as a leading space ad- national origin, and religion; decision-making whenever patients are un- vocacy organization, and is a member Whereas, in section 808 of the Housing and able to speak for themselves and to encour- of the U.S. Delegation to the United Community Development Act of 1974 (Public age the specific use of advance directives to Nation’s Committee on the Peaceful Law 93–383; 88 Stat. 728), Congress amended communicate these important decisions; the Fair Housing Act to include protection Whereas the Patient Self-Determination Uses of Outer Space. on the basis of sex; Act (42 U.S.C. 1395cc(f) et seq.) guarantees The Space Foundation has recognized Whereas the Fair Housing Amendments patients the right to information about their the need for increased attention to Act of 1988 (Public Law 100–430; 102 Stat. rights under State law regarding accepting space education. Their one-of-a-kind 1619), passed by overwhelming margins in or refusing medical treatment; program allocates resources and helps Congress, included protection on the basis of Whereas it is estimated that only a minor- prepare teachers to not only teach chil- familial status and disability and expanded ity of Americans have executed advance di- dren about space, but to excite them the definition of ‘‘discriminatory housing rectives, including those who are terminally about space. They have connected with practices’’ to include interference and in- ill or living with life-threatening or life-lim- teachers in all 50 States as well as timidation; iting illnesses; Whereas Congress’s intent in passing the Whereas advance directives offer individ- countries in Europe and Asia. Beyond Fair Housing Act was broad and inclusive, to uals the opportunity to discuss with loved the classroom, the Space Foundation advance equal opportunity in housing and ones in advance of a health care crisis and seeks to raise awareness and involve- achieve racial integration for the benefit of decide what measures would be appropriate ment in community programs. They all people in the United States; for them when it comes to end-of-life care;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00119 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.071 S03APPT1 ccoleman on PRODPC75 with SENATE S2486 CONGRESSIONAL RECORD — SENATE April 3, 2008 Whereas the preparation of an advance di- SA 4389. Ms. LANDRIEU (for herself, Mr. tended to be proposed to amendment SA 4387 rective would advise family members, health COCHRAN, Mr. VITTER, and Mr. WICKER) sub- submitted by Mr. DODD (for himself and Mr. care providers, and other persons as to how mitted an amendment intended to be pro- SHELBY) to the bill H.R. 3221, supra. an individual would want to be treated with posed to amendment SA 4387 submitted by SA 4407. Mr. KYL submitted an amend- respect to health care; Mr. DODD (for himself and Mr. SHELBY) to ment intended to be proposed to amendment Whereas to avoid any legal or medical con- the bill H.R. 3221, supra. SA 4387 submitted by Mr. DODD (for himself fusion due to the emotions involved in end- SA 4390. Mr. HATCH (for himself, Mr. and Mr. SHELBY) to the bill H.R. 3221, supra. of-life decisions, it is in the best interest of SALAZAR, and Mr. KERRY) submitted an SA 4408. Mr. SPECTER submitted an all Americans that each person over the age amendment intended to be proposed by him amendment intended to be proposed by him of 18 communicate his or her wishes by cre- to the bill H.R. 3221, supra; which was or- to the bill H.R. 3221, supra; which was or- ating an advance directive; dered to lie on the table. dered to lie on the table. Whereas the Conditions of Participation in SA 4391. Mr. WICKER (for himself and Mr. SA 4409. Mrs. McCASKILL submitted an Medicare and Medicaid, section 489.102 of COCHRAN) submitted an amendment intended amendment intended to be proposed by her title 42, Code of Federal Regulations (as in to be proposed by him to the bill H.R. 3221, to the bill H.R. 3221, supra; which was or- effect on the date of enactment of this reso- supra; which was ordered to lie on the table. dered to lie on the table. lution), require all participating facilities to SA 4392. Mr. SPECTER submitted an SA 4410. Mrs. FEINSTEIN (for herself, Mr. provide information to patients and the pub- amendment intended to be proposed by him MARTINEZ, Mrs. BOXER, Mr. OBAMA, Mr. lic on the topic of advance directives; to the bill H.R. 3221, supra; which was or- SALAZAR, Mrs. DOLE, Mr. DURBIN, and Mrs. Whereas the Centers for Medicare & Med- dered to lie on the table. CLINTON) submitted an amendment intended icaid Services has recognized that the use of SA 4393. Mrs. FEINSTEIN (for herself, Mr. to be proposed by her to the bill H.R. 3221, advance directives is tied to quality health MARTINEZ, Mr. OBAMA, Mrs. BOXER, Mr. supra; which was ordered to lie on the table. care and has included discussions of advance SALAZAR, Mr. DURBIN, and Ms. KLOBUCHAR) SA 4411. Mr. KOHL (for himself and Mrs. directives in the criteria of the Physician submitted an amendment intended to be pro- LINCOLN) submitted an amendment intended Quality Reporting Initiative; posed by her to the bill H.R. 3221, supra; to be proposed to amendment SA 4387 sub- Whereas establishing National Health Care which was ordered to lie on the table. mitted by Mr. DODD (for himself and Mr. Decisions Day will encourage health care fa- SA 4394. Ms. MIKULSKI (for herself, Mr. SHELBY) to the bill H.R. 3221, supra; which cilities and professionals as well as chap- KENNEDY, and Mr. HARKIN) submitted an was ordered to lie on the table. lains, attorneys, and others to participate in amendment intended to be proposed to SA 4412. Mr. SCHUMER submitted an a collective, nationwide effort to provide amendment SA 4387 submitted by Mr. DODD amendment intended to be proposed to clear, concise, and consistent information to (for himself and Mr. SHELBY) to the bill H.R. amendment SA 4387 submitted by Mr. DODD the public about health care decision-mak- 3221, supra; which was ordered to lie on the (for himself and Mr. SHELBY) to the bill H.R. ing, particularly advance directives; and table. 3221, supra; which was ordered to lie on the Whereas as a result of National Health SA 4395. Mr. BUNNING submitted an table. Care Decisions Day, recognized on April 16, amendment intended to be proposed to SA 4413. Mr. SCHUMER submitted an 2008, more Americans will have conversa- amendment SA 4387 submitted by Mr. DODD amendment intended to be proposed to tions about their health care decisions, more (for himself and Mr. SHELBY) to the bill H.R. amendment SA 4387 submitted by Mr. DODD Americans will execute advance directives to 3221, supra; which was ordered to lie on the (for himself and Mr. SHELBY) to the bill H.R. make their wishes known, and fewer families table. 3221, supra; which was ordered to lie on the and health care providers will have to strug- SA 4396. Mr. BROWNBACK submitted an table. gle with making difficult health care deci- amendment intended to be proposed by him SA 4414. Mr. FEINGOLD (for himself and sions in the absence of guidance from the pa- to the bill H.R. 3221, supra; which was or- Mr. COLEMAN) submitted an amendment in- tient: Now, therefore, be it dered to lie on the table. tended to be proposed to amendment SA 4387 Resolved by the Senate (the House of Rep- SA 4397. Mrs. MURRAY (for herself, Mr. submitted by Mr. DODD (for himself and Mr. resentatives concurring), That Congress— SCHUMER, Mr. CASEY, Mr. BROWN, Mrs. CLIN- SHELBY) to the bill H.R. 3221, supra; which (1) supports the goals and ideals of Na- TON, Mr. MENENDEZ, Mr. KERRY, Ms. was ordered to lie on the table. tional Health Care Decisions Day; KLOBUCHAR, Mr. LAUTENBERG, Mr. OBAMA, SA 4415. Ms. CANTWELL (for herself, Mr. (2) supports the goals and ideals of advance Ms. MIKULSKI, and Mr. REED) submitted an SMITH, and Mr. KERRY) submitted an amend- care planning for all adult Americans; amendment intended to be proposed to ment intended to be proposed to amendment (3) encourages each person in the United amendment SA 4387 submitted by Mr. DODD SA 4387 submitted by Mr. DODD (for himself States who is over the age of 18 to prepare an (for himself and Mr. SHELBY) to the bill H.R. and Mr. SHELBY) to the bill H.R. 3221, supra; advance directive to assist his or her loved 3221, supra. which was ordered to lie on the table. ones, health care providers, and others as SA 4398. Mr. SALAZAR submitted an SA 4416. Ms. CANTWELL (for herself, Mr. they honor his or her wishes; amendment intended to be proposed by him SMITH, and Mr. KERRY) submitted an amend- (4) calls upon all members of Congress to to the bill H.R. 3221, supra; which was or- ment intended to be proposed to amendment execute such documents and discussions for dered to lie on the table. SA 4387 submitted by Mr. DODD (for himself themselves; and SA 4399. Mr. COBURN submitted an and Mr. SHELBY) to the bill H.R. 3221, supra; (5) encourages health care, civic, edu- amendment intended to be proposed by him which was ordered to lie on the table. cational, religious, and for- and non-profit to the bill H.R. 3221, supra; which was or- SA 4417. Mr. DORGAN submitted an organizations to encourage individuals to dered to lie on the table. amendment intended to be proposed by him prepare advance directives to ensure that SA 4400. Mr. COBURN submitted an to the bill H.R. 3221, supra; which was or- their wishes and rights with respect to amendment intended to be proposed by him dered to lie on the table. health care are protected. to the bill H.R. 3221, supra; which was or- SA 4418. Mr. MARTINEZ (for himself and f dered to lie on the table. Mr. CARPER) submitted an amendment in- SA 4401. Mr. SANDERS (for himself and tended to be proposed by him to the bill H.R. AMENDMENTS SUBMITTED AND Mr. DURBIN) submitted an amendment in- 3221, supra; which was ordered to lie on the PROPOSED tended to be proposed to amendment SA 4387 table. SA 4419. Mr. ENSIGN submitted an amend- SA 4387. Mr. DODD (for himself and Mr. submitted by Mr. DODD (for himself and Mr. SHELBY) to the bill H.R. 3221, supra. ment intended to be proposed to amendment SHELBY) submitted an amendment intended ODD (for himself to be proposed by him to the bill H.R. 3221, SA 4402. Mr. MENENDEZ submitted an SA 4387 submitted by Mr. D moving the United States toward greater en- amendment intended to be proposed by him and Mr. SHELBY) to the bill H.R. 3221, supra; ergy independence and security, developing to the bill H.R. 3221, supra; which was or- which was ordered to lie on the table. innovative new technologies, reducing car- dered to lie on the table. SA 4420. Mr. NELSON of Florida (for him- bon emissions, creating green jobs, pro- SA 4403. Mr. KERRY (for himself and Ms. self and Mr. COLEMAN) submitted an amend- tecting consumers, increasing clean renew- SNOWE) submitted an amendment intended ment intended to be proposed by him to the able energy production, and modernizing our to be proposed by him to the bill H.R. 3221, bill H.R. 3221, supra; which was ordered to lie energy infrastructure, and to amend the In- supra; which was ordered to lie on the table. on the table. ternal Revenue Code of 1986 to provide tax SA 4404. Ms. LANDRIEU submitted an SA 4421. Mr. CARDIN (for himself and Mr. incentives for the production of renewable amendment intended to be proposed by her ENSIGN) proposed an amendment to amend- energy and energy conservation. to the bill H.R. 3221, supra; which was or- ment SA 4387 submitted by Mr. DODD (for SA 4388. Mr. DURBIN (for himself, Mr. dered to lie on the table. himself and Mr. SHELBY) to the bill H.R. 3221, REID, Mr. OBAMA, Mrs. CLINTON, Mr. SA 4405. Ms. LANDRIEU submitted an supra. WHITEHOUSE, Mr. SCHUMER, Mrs. FEINSTEIN, amendment intended to be proposed by her SA 4422. Mr. ROBERTS (for himself and Mr. MENENDEZ, Mrs. BOXER, Mr. BROWN, Mr. to the bill H.R. 3221, supra; which was or- Mr. BROWNBACK) submitted an amendment KENNEDY, Mr. HARKIN, Mr. KERRY, Mr. REED, dered to lie on the table. intended to be proposed to amendment SA and Mr. BIDEN) submitted an amendment in- SA 4406. Mr. VOINOVICH (for himself, Ms. 4389 submitted by Ms. LANDRIEU (for herself, tended to be proposed to amendment SA 4387 STABENOW, Mr. HATCH, Mr. ROCKEFELLER, Mr. COCHRAN, Mr. VITTER, and Mr. WICKER) submitted by Mr. DODD (for himself and Mr. Mr. SMITH, Ms. CANTWELL, Mr. VITTER, and to the amendment SA 4387 submitted by Mr. SHELBY) to the bill H.R. 3221, supra. Mr. LEVIN) submitted an amendment in- DODD (for himself and Mr. SHELBY) to the bill

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00120 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.077 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2487 H.R. 3221, supra; which was ordered to lie on Sec. 127. Post-purchase housing counseling (1) by amending subparagraphs (A) and (B) the table. eligibility improvements. to read as follows: SA 4423. Mr. NELSON of Florida (for him- Sec. 128. Pre-purchase homeownership coun- ‘‘(A) not to exceed the lesser of— self and Mr. COLEMAN) submitted an amend- seling demonstration. ‘‘(i) in the case of a 1-family residence, 110 ment intended to be proposed by him to the Sec. 129. Fraud prevention. percent of the median 1-family house price in bill H.R. 3221, supra; which was ordered to lie Sec. 130. Limitation on mortgage insurance the area, as determined by the Secretary; on the table. premium increases. and in the case of a 2-, 3-, or 4-family resi- SA 4424. Mrs. HUTCHISON (for herself and Sec. 131. Savings provision. dence, the percentage of such median price Mr. NELSON of Florida) submitted an amend- Sec. 132. Implementation. that bears the same ratio to such median ment intended to be proposed to amendment Sec. 133. Moratorium on implementation of price as the dollar amount limitation in ef- SA 4387 submitted by Mr. DODD (for himself risk-based premiums. fect for 2007 under section 305(a)(2) of the and Mr. SHELBY) to the bill H.R. 3221, supra; Subtitle B—Manufactured Housing Loan Federal Home Loan Mortgage Corporation which was ordered to lie on the table. Modernization Act (12 U.S.C. 1454(a)(2)) for a 2-, 3-, or 4-fam- SA 4425. Mrs. HUTCHISON (for herself and Sec. 141. Short title. ily residence, respectively, bears to the dol- Mr. NELSON of Florida) submitted an amend- Sec. 142. Purposes. lar amount limitation in effect for 2007 under ment intended to be proposed by her to the Sec. 143. Exception to limitation on finan- such section for a 1-family residence; or bill H.R. 3221, supra; which was ordered to lie cial institution portfolio. ‘‘(ii) 132 percent of the dollar amount limi- on the table. Sec. 144. Insurance benefits. tation in effect for 2007 under such section SA 4426. Mr. MARTINEZ (for himself and Sec. 145. Maximum loan limits. 305(a)(2) for a residence of the applicable size Mr. CARPER) submitted an amendment in- Sec. 146. Insurance premiums. (without regard to any authority to increase tended to be proposed to amendment SA 4387 Sec. 147. Technical corrections. such limitations with respect to properties submitted by Mr. DODD (for himself and Mr. Sec. 148. Revision of underwriting criteria. located in Alaska, Guam, Hawaii, or the Vir- SHELBY) to the bill H.R. 3221, supra; which Sec. 149. Prohibition against kickbacks and gin Islands), except that each such maximum was ordered to lie on the table. unearned fees. dollar amount shall be adjusted effective Sec. 150. Leasehold requirements. January 1 of each year beginning with 2009, f TITLE II—MORTGAGE FORECLOSURE by adding to or subtracting from each such TEXT OF AMENDMENTS PROTECTIONS FOR SERVICEMEMBERS amount (as it may have been previously adjusted) a percentage thereof equal to the per- SA 4387. Mr. DODD (for himself and Sec. 201. Temporary increase in maximum loan guaranty amount for cer- centage increase or decrease, during the Mr. SHELBY) submitted an amendment tain housing loans guaranteed most recently completed 12-month or 4-quar- intended to be proposed by him to the by the Secretary of Veterans ter period ending before the time of deter- bill H.R. 3221, moving the United Affairs. mining such annual adjustment, in an hous- States toward greater energy independ- Sec. 202. Counseling on mortgage fore- ing price index developed or selected by the ence and security, developing innova- closures for members of the Secretary for purposes of adjustments under tive new technologies, reducing carbon Armed Forces returning from this clause; emissions, creating green jobs, pro- service abroad. except that the dollar amount limitation in Sec. 203. Enhancement of protections for tecting consumers, increasing clean re- effect under this subparagraph for any size servicemembers relating to residence for any area may not be less than newable energy production, and mod- mortgages and mortgage fore- the greater of: (I) the dollar amount limita- ernizing our energy infrastructure, and closures. tion in effect under this section for the area to amend the Internal Revenue Code of TITLE III—EMERGENCY ASSISTANCE on October 21, 1998; or (II) 65 percent of the 1986 to provide tax incentives for the FOR THE REDEVELOPMENT OF ABAN- dollar amount limitation in effect for 2007 production of renewable energy and en- DONED AND FORECLOSED HOMES under such section 305(a)(2) for a residence of ergy conservation; as follows: Sec. 301. Emergency assistance for the rede- the applicable size, as such limitation is adjusted by any subsequent percentage adjust- Strike all after the enacting clause and in- velopment of abandoned and ments determined under clause (ii) of this sert the following: foreclosed homes. subparagraph; and SECTION 1. SHORT TITLE; TABLE OF CONTENTS. TITLE IV—HOUSING COUNSELING ‘‘(B) not to exceed 100 percent of the ap- (a) SHORT TITLE.—This Act may be cited as RESOURCES praised value of the property.’’; and the ‘‘Foreclosure Prevention Act of 2008’’. Sec. 401. Housing counseling resources. (2) in the matter following subparagraph (b) TABLE OF CONTENTS.—The table of con- TITLE V—MORTGAGE DISCLOSURE (B), by striking the second sentence (relating tents for this Act is as follows: IMPROVEMENT ACT to a definition of ‘‘average closing cost’’) and Sec. 1. Short title; table of contents. Sec. 501. Short title. all that follows through ‘‘section 3103A(d) of TITLE I—FHA MODERNIZATION ACT OF Sec. 502. Enhanced mortgage loan disclo- title 38, United States Code.’’. 2008 sures. (b) EFFECTIVE DATE.—The amendments made by subsection (a) shall take effect upon Sec. 101. Short title. TITLE VI—TAX-RELATED PROVISIONS the expiration of the date described in sec- Subtitle A—Building American Sec. 601. Election for 4-year carryback of tion 202(a) of the Economic Stimulus Act of Homeownership certain net operating losses and 2008 (Public Law 110-185). Sec. 111. Short title. temporary suspension of 90 percent AMT limit. SEC. 113. CASH INVESTMENT REQUIREMENT AND Sec. 112. Maximum principal loan obliga- PROHIBITION OF SELLER-FUNDED tion. Sec. 602. Modifications on use of qualified DOWNPAYMENT ASSISTANCE. Sec. 113. Cash investment requirement and mortgage bonds; temporary in- Paragraph 9 of section 203(b) of the Na- prohibition of seller-funded creased volume cap for certain tional Housing Act (12 U.S.C. 1709(b)(9)) is downpayment assistance. housing bonds. amended to read as follows: Sec. 603. Credit for certain home purchases. Sec. 114. Mortgage insurance premiums. ‘‘(9) CASH INVESTMENT REQUIREMENT.— Sec. 604. Additional standard deduction for Sec. 115. Rehabilitation loans. ‘‘(A) IN GENERAL.—A mortgage insured real property taxes for non- Sec. 116. Discretionary action. under this section shall be executed by a itemizers. Sec. 117. Insurance of condominiums. mortgagor who shall have paid, in cash, on Sec. 118. Mutual Mortgage Insurance Fund. TITLE VII—EMERGENCY DESIGNATION account of the property an amount equal to Sec. 119. Hawaiian home lands and Indian Sec. 701. Emergency designation. not less than 3.5 percent of the appraised reservations. TITLE I—FHA MODERNIZATION ACT OF value of the property or such larger amount Sec. 120. Conforming and technical amend- 2008 as the Secretary may determine. AMILY MEMBERS ments. SEC. 101. SHORT TITLE. ‘‘(B) F .—For purposes of Sec. 121. Insurance of mortgages. This title may be cited as the ‘‘FHA Mod- this paragraph, the Secretary shall consider Sec. 122. Home equity conversion mortgages. ernization Act of 2008’’. as cash or its equivalent any amounts bor- Sec. 123. Energy efficient mortgages pro- rowed from a family member (as such term is gram. Subtitle A—Building American defined in section 201), subject only to the re- Sec. 124. Pilot program for automated proc- Homeownership quirements that, in any case in which the re- ess for borrowers without suffi- SEC. 111. SHORT TITLE. payment of such borrowed amounts is se- cient credit history. This subtitle may be cited as the ‘‘Building cured by a lien against the property, that— Sec. 125. Homeownership preservation. American Homeownership Act of 2008’’. ‘‘(i) such lien shall be subordinate to the Sec. 126. Use of FHA savings for improve- SEC. 112. MAXIMUM PRINCIPAL LOAN OBLIGA- mortgage; and ments in FHA technologies, TION. ‘‘(ii) the sum of the principal obligation of procedures, processes, program (a) IN GENERAL.—Paragraph (2) of section the mortgage and the obligation secured by performance, staffing, and sala- 203(b)(2) of the National Housing Act (12 such lien may not exceed 100 percent of the ries. U.S.C. 1709(b)(2)) is amended— appraised value of the property.

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‘‘(C) PROHIBITED SOURCES.—In no case shall (c) DEFINITION OF REAL ESTATE.—Section ing the operational goals established under the funds required by subparagraph (A) con- 201 of the National Housing Act (12 U.S.C. paragraph (7) or there is a substantial prob- sist, in whole or in part, of funds provided by 1707) is amended by adding at the end the fol- ability that the Fund will not maintain its any of the following parties before, during, lowing new subsection: established target subsidy rate, the Sec- or after closing of the property sale: ‘‘(g) The term ‘real estate’ means land and retary may either make programmatic ad- ‘‘(i) The seller or any other person or enti- all natural resources and structures perma- justments under this title as necessary to re- ty that financially benefits from the trans- nently affixed to the land, including residen- duce the risk to the Fund, or make appro- action. tial buildings and stationary manufactured priate premium adjustments. ‘‘(ii) Any third party or entity that is re- housing. The Secretary may not require, for ‘‘(7) OPERATIONAL GOALS.—The operational imbursed, directly or indirectly, by any of treatment of any land or other property as goals for the Fund are— the parties described in clause (i).’’. real estate for purposes of this title, that ‘‘(A) to minimize the default risk to the SEC. 114. MORTGAGE INSURANCE PREMIUMS. such land or property be treated as real es- Fund and to homeowners by among other ac- Section 203(c)(2) of the National Housing tate for purposes of State taxation.’’. tions instituting fraud prevention quality Act (12 U.S.C. 1709(c)(2)) is amended— SEC. 118. MUTUAL MORTGAGE INSURANCE FUND. control screening not later than 18 months (1) in the matter preceding subparagraph (a) IN GENERAL.—Subsection (a) of section after the date of enactment of the Building (A), by striking ‘‘or of the General Insurance 202 of the National Housing Act (12 U.S.C. American Homeownership Act of 2008; and Fund’’ and all that follows through ‘‘section 1708(a)) is amended to read as follows: ‘‘(B) to meet the housing needs of the bor- 234(c),,’’; and ‘‘(a) MUTUAL MORTGAGE INSURANCE FUND.— rowers that the single family mortgage in- (2) in subparagraph (A)— ‘‘(1) ESTABLISHMENT.—Subject to the provi- surance program under this title is designed (A) by striking ‘‘2.25 percent’’ and insert- sions of the Federal Credit Reform Act of to serve.’’. ing ‘‘3 percent’’; and 1990, there is hereby created a Mutual Mort- (b) OBLIGATIONS OF FUND.—The National (B) by striking ‘‘2.0 percent’’ and inserting gage Insurance Fund (in this title referred to Housing Act is amended as follows: ‘‘2.75 percent’’. as the ‘Fund’), which shall be used by the (1) HOMEOWNERSHIP VOUCHER PROGRAM SEC. 115. REHABILITATION LOANS. Secretary to carry out the provisions of this MORTGAGES.—In section 203(v) (12 U.S.C. Subsection (k) of section 203 of the Na- title with respect to mortgages insured 1709(v))— tional Housing Act (12 U.S.C. 1709(k)) is under section 203. The Secretary may enter (A) by striking ‘‘Notwithstanding section amended— into commitments to guarantee, and may 202 of this title, the’’ and inserting ‘‘The’’; (1) in paragraph (1), by striking ‘‘on’’ and guarantee, such insured mortgages. and all that follows through ‘‘1978’’; and ‘‘(2) LIMIT ON LOAN GUARANTEES.—The au- (B) by striking ‘‘General Insurance Fund’’ (2) in paragraph (5)— thority of the Secretary to enter into com- the first place such term appears and all that (A) by striking ‘‘General Insurance Fund’’ mitments to guarantee such insured mort- follows through the end of the subsection the first place it appears and inserting ‘‘Mu- gages shall be effective for any fiscal year and inserting ‘‘Mutual Mortgage Insurance tual Mortgage Insurance Fund’’; and only to the extent that the aggregate origi- Fund.’’. (B) in the second sentence, by striking the nal principal loan amount under such mort- (2) HOME EQUITY CONVERSION MORTGAGES.— comma and all that follows through ‘‘Gen- gages, any part of which is guaranteed, does Section 255(i)(2)(A) of the National Housing eral Insurance Fund’’. not exceed the amount specified in appro- Act (12 U.S.C. 1715z–20(i)(2)(A)) is amended by SEC. 116. DISCRETIONARY ACTION. priations Acts for such fiscal year. striking ‘‘General Insurance Fund’’ and in- The National Housing Act is amended— ‘‘(3) FIDUCIARY RESPONSIBILITY.—The Sec- serting ‘‘Mutual Mortgage Insurance Fund’’. (1) in subsection (e) of section 202 (12 U.S.C. retary has a responsibility to ensure that the (c) CONFORMING AMENDMENTS.—The Na- 1708(e))— Mutual Mortgage Insurance Fund remains fi- tional Housing Act is amended— (A) in paragraph (3)(B), by striking ‘‘sec- nancially sound. tion 202(e) of the National Housing Act’’ and (1) in section 205 (12 U.S.C. 1711), by strik- ‘‘(4) ANNUAL INDEPENDENT ACTUARIAL ing subsections (g) and (h); and inserting ‘‘this subsection’’; and STUDY.—The Secretary shall provide for an (B) by redesignating such subsection as (2) in section 519(e) (12 U.S.C. 1735c(e)), by independent actuarial study of the Fund to striking ‘‘203(b)’’ and all that follows subsection (f); be conducted annually, which shall analyze (2) by striking paragraph (4) of section through ‘‘203(i)’’ and inserting ‘‘203, except as the financial position of the Fund. The Sec- determined by the Secretary’’. 203(s) (12 U.S.C. 1709(s)(4)) and inserting the retary shall submit a report annually to the following new paragraph: Congress describing the results of such study SEC. 119. HAWAIIAN HOME LANDS AND INDIAN RESERVATIONS. ‘‘(4) the Secretary of Agriculture;’’; and and assessing the financial status of the (3) by transferring subsection (s) of section Fund. The report shall recommend adjust- (a) HAWAIIAN HOME LANDS.—Section 247(c) 203 (as amended by paragraph (2) of this sec- ments to underwriting standards, program of the National Housing Act (12 U.S.C. 1715z– tion) to section 202, inserting such sub- participation, or premiums, if necessary, to 12(c)) is amended— section after subsection (d) of section 202, ensure that the Fund remains financially (1) by striking ‘‘General Insurance Fund and redesignating such subsection as sub- sound. established in section 519’’ and inserting section (e). ‘‘Mutual Mortgage Insurance Fund’’; and ‘‘(5) QUARTERLY REPORTS.—During each fis- SEC. 117. INSURANCE OF CONDOMINIUMS. cal year, the Secretary shall submit a report (2) in the second sentence, by striking ‘‘(1) (a) IN GENERAL.—Section 234 of the Na- to the Congress for each calendar quarter, all references’’ and all that follows through tional Housing Act (12 U.S.C. 1715y) is which shall specify for mortgages that are ‘‘and (2)’’. amended— obligations of the Fund— (b) INDIAN RESERVATIONS.—Section 248(f) of (1) in subsection (c), in the first sentence— ‘‘(A) the cumulative volume of loan guar- the National Housing Act (12 U.S.C. 1715z– (A) by striking ‘‘and’’ before ‘‘(2)’’; and antee commitments that have been made 13(f)) is amended— (B) by inserting before the period at the during such fiscal year through the end of (1) by striking ‘‘General Insurance Fund’’ end the following: ‘‘, and (3) the project has the quarter for which the report is sub- the first place it appears through ‘‘519’’ and a blanket mortgage insured by the Secretary inserting ‘‘Mutual Mortgage Insurance under subsection (d)’’; and mitted; ‘‘(B) the types of loans insured, categorized Fund’’; and (2) in subsection (g), by striking ‘‘, except (2) in the second sentence, by striking ‘‘(1) that’’ and all that follows and inserting a pe- by risk; ‘‘(C) any significant changes between ac- all references’’ and all that follows through riod. ‘‘and (2)’’. (b) DEFINITION OF MORTGAGE.—Section tual and projected claim and prepayment ac- 201(a) of the National Housing Act (12 U.S.C. tivity; SEC. 120. CONFORMING AND TECHNICAL AMEND- 1707(a)) is amended— ‘‘(D) projected versus actual loss rates; and MENTS. (1) before ‘‘a first mortgage’’ insert ‘‘(A)’’; ‘‘(E) updated projections of the annual sub- (a) REPEALS.—The following provisions of (2) by striking ‘‘or on a leasehold (1)’’ and sidy rates to ensure that increases in risk to the National Housing Act are repealed: inserting ‘‘(B) a first mortgage on a lease- the Fund are identified and mitigated by ad- (1) Subsection (i) of section 203 (12 U.S.C. hold on real estate (i)’’; justments to underwriting standards, pro- 1709(i)). (3) by striking ‘‘or (2)’’ and inserting ‘‘, or gram participation, or premiums, and the fi- (2) Subsection (o) of section 203 (12 U.S.C. (ii)’’; and nancial soundness of the Fund is maintained. 1709(o)). (4) by inserting before the semicolon the The first quarterly report under this para- (3) Subsection (p) of section 203 (12 U.S.C. following: ‘‘, or (C) a first mortgage given to graph shall be submitted on the last day of 1709(p)). secure the unpaid purchase price of a fee in- the first quarter of fiscal year 2008, or on the (4) Subsection (q) of section 203 (12 U.S.C. terest in, or long-term leasehold interest in, last day of the first full calendar quarter fol- 1709(q)). real estate consisting of a one-family unit in lowing the enactment of the Building Amer- (5) Section 222 (12 U.S.C. 1715m). a multifamily project, including a project in ican Homeownership Act of 2008, whichever (6) Section 237 (12 U.S.C. 1715z–2). which the dwelling units are attached, or are is later. (7) Section 245 (12 U.S.C. 1715z–10). manufactured housing units, semi-detached, ‘‘(6) ADJUSTMENT OF PREMIUMS.—If, pursu- (b) DEFINITION OF AREA.—Section or detached, and an undivided interest in the ant to the independent actuarial study of the 203(u)(2)(A) of the National Housing Act (12 common areas and facilities which serve the Fund required under paragraph (4), the Sec- U.S.C. 1709(u)(2)(A)) is amended by striking project’’. retary determines that the Fund is not meet- ‘‘shall’’ and all that follows and inserting

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00122 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.078 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2489 ‘‘means a metropolitan statistical area as es- ‘‘(A) the costs to the mortgagor; and ‘‘SEC. 257. PILOT PROGRAM FOR AUTOMATED tablished by the Office of Management and ‘‘(B) the impact of such fees on the reverse PROCESS FOR BORROWERS WITH- Budget;’’. mortgage market; OUT SUFFICIENT CREDIT HISTORY. (c) DEFINITION OF STATE.—Section 201(d) of ‘‘(2) be subject to a minimum allowable ‘‘(a) ESTABLISHMENT.—The Secretary shall the National Housing Act (12 U.S.C. 1707(d)) amount; carry out a pilot program to establish, and is amended by striking ‘‘the Trust Territory ‘‘(3) provide that the origination fee may make available to mortgagees, an automated of the Pacific Islands’’ and inserting ‘‘the be fully financed with the mortgage; process for providing alternative credit rat- Commonwealth of the Northern Mariana Is- ‘‘(4) include any fees paid to correspondent ing information for mortgagors and prospec- lands’’. mortgagees approved by the Secretary; and tive mortgagors under mortgages on 1- to 4- SEC. 121. INSURANCE OF MORTGAGES. ‘‘(5) have the same effective date as sub- family residences to be insured under this Subsection (n)(2) of section 203 of the Na- section (o)(2) regarding the limitation on title who have insufficient credit histories tional Housing Act (12 U.S.C. 1709(n)(2)) is principal obligation.’’. for determining their creditworthiness. Such amended— alternative credit rating information may (1) in subparagraph (A), by inserting ‘‘or (d) STUDY REGARDING PROGRAM COSTS AND include rent, utilities, and insurance pay- subordinate mortgage or’’ before ‘‘lien CREDIT AVAILABILITY.— ment histories, and such other information given’’; and (1) IN GENERAL.—The Comptroller General as the Secretary considers appropriate. (2) in subparagraph (C), by inserting ‘‘or of the United States shall conduct a study ‘‘(b) SCOPE.—The Secretary may carry out subordinate mortgage or’’ before ‘‘lien’’. regarding the costs and availability of credit the pilot program under this section on a SEC. 122. HOME EQUITY CONVERSION MORT- under the home equity conversion mortgages limited basis or scope, and may consider lim- GAGES. for elderly homeowners program under sec- iting the program to first-time homebuyers. (a) IN GENERAL.—Section 255 of the Na- tion 255 of the National Housing Act (12 ‘‘(c) LIMITATION.—In any fiscal year, the tional Housing Act (12 U.S.C. 1715z–20) is U.S.C. 1715z–20) (in this subsection referred aggregate number of mortgages insured pur- amended— to as the ‘‘program’’). suant to the automated process established (1) in subsection (b)(2), insert ‘‘ ‘real es- (2) PURPOSE.—The purpose of the study re- under this section may not exceed 5 percent tate,’’’ after ‘‘ ‘mortgagor’,’’; quired under paragraph (1) is to help Con- of the aggregate number of mortgages for 1- (2) in subsection (g), by striking ‘‘estab- gress analyze and determine the effects of to 4-family residences insured by the Sec- lished under section 203(b)(2)’’ and all that limiting the amounts of the costs or fees retary under this title during the preceding follows through ‘‘located’’ and inserting under the program from the amounts fiscal year. ‘‘limitation established under section charged under the program as of the date of ‘‘(d) SUNSET.—After the expiration of the 5- 305(a)(2) of the Federal Home Loan Mortgage the enactment of this title. year period beginning on the date of the en- Corporation Act for a 1-family residence’’; (3) CONTENT OF REPORT.—The study re- actment of the Building American Home- (3) in subsection (i)(1)(C), by striking ‘‘lim- quired under paragraph (1) should focus on— ownership Act of 2008, the Secretary may not itations’’ and inserting ‘‘limitation’’; and (A) the cost to mortgagors of participating enter into any new commitment to insure (4) by adding at the end the following new in the program; any mortgage, or newly insure any mort- subsection: (B) the financial soundness of the program; gage, pursuant to the automated process es- ‘‘(o) AUTHORITY TO INSURE HOME PURCHASE (C) the availability of credit under the pro- tablished under this section.’’. MORTGAGE.— gram; and (b) GAO REPORT.—Not later than the expi- ‘‘(1) IN GENERAL.—Notwithstanding any (D) the costs to elderly homeowners par- ration of the two-year period beginning on other provision of this section, the Secretary ticipating in the program, including— the date of the enactment of this subtitle, may insure, upon application by a mort- (i) mortgage insurance premiums charged the Comptroller General of the United States gagee, a home equity conversion mortgage under the program; shall submit to the Congress a report identi- upon such terms and conditions as the Sec- (ii) up-front fees charged under the pro- fying the number of additional mortgagors retary may prescribe, when the home equity gram; and served using the automated process estab- conversion mortgage will be used to pur- (iii) margin rates charged under the pro- lished pursuant to section 257 of the National chase a 1- to 4-family dwelling unit, one unit gram. Housing Act (as added by the amendment of which that the mortgagor will occupy as (4) TIMING OF REPORT.—Not later than 12 made by subsection (a) of this section) and a primary residence, and to provide for any months after the date of the enactment of the impact of such process and the insurance future payments to the mortgagor, based on this title, the Comptroller General shall sub- of mortgages pursuant to such process on the available equity, as authorized under submit a report to the Committee on Banking, safety and soundness of the insurance funds section (d)(9). Housing, and Urban Affairs of the Senate and under the National Housing Act of which ‘‘(2) LIMITATION ON PRINCIPAL OBLIGATION.— the Committee on Financial Services of the such mortgages are obligations. A home equity conversion mortgage insured House of Representatives setting forth the pursuant to paragraph (1) shall involve a SEC. 125. HOMEOWNERSHIP PRESERVATION. results and conclusions of the study required The Secretary of Housing and Urban Devel- principal obligation that does not exceed the under paragraph (1). dollar amount limitation determined under opment and the Commissioner of the Federal section 305(a)(2) of the Federal Home Loan SEC. 123. ENERGY EFFICIENT MORTGAGES PRO- Housing Administration, in consultation Mortgage Corporation Act for a 1-family res- GRAM. with industry, the Neighborhood Reinvest- ment Corporation, and other entities in- idence.’’. Section 106(a)(2) of the Energy Policy Act (b) MORTGAGES FOR COOPERATIVES.—Sub- volved in foreclosure prevention activities, of 1992 (42 U.S.C. 12712 note) is amended— section (b) of section 255 of the National shall— (1) by amending subparagraph (C) to read Housing Act (12 U.S.C. 1715z–20(b)) is amend- (1) develop and implement a plan to im- as follows: ed— prove the Federal Housing Administration’s (1) in paragraph (4)— ‘‘(C) COSTS OF IMPROVEMENTS.—The cost of loss mitigation process; and (A) by inserting ‘‘a first or subordinate cost-effective energy efficiency improve- (2) report such plan to the Committee on mortgage or lien’’ before ‘‘on all stock’’; ments shall not exceed the greater of— Banking, Housing, and Urban Affairs of the (B) by inserting ‘‘unit’’ after ‘‘dwelling’’; ‘‘(i) 5 percent of the property value (not to Senate and the Committee on Financial and exceed 5 percent of the limit established Services of the House of Representatives. (C) by inserting ‘‘a first mortgage or first under section 203(b)(2)(A)) of the National SEC. 126. USE OF FHA SAVINGS FOR IMPROVE- lien’’ before ‘‘on a leasehold’’; and Housing Act (12 U.S.C. 1709(b)(2)(A); or MENTS IN FHA TECHNOLOGIES, PRO- (2) in paragraph (5), by inserting ‘‘a first or ‘‘(ii) 2 percent of the limit established CEDURES, PROCESSES, PROGRAM subordinate lien on’’ before ‘‘all stock’’. under section 203(b)(2)(B) of such Act.’’; and PERFORMANCE, STAFFING, AND SAL- (c) LIMITATION ON ORIGINATION FEES.—Sec- (2) by adding at the end the following: ARIES. tion 255 of the National Housing Act (12 ‘‘(D) LIMITATION.—In any fiscal year, the (a) AUTHORIZATION OF APPROPRIATIONS.— U.S.C. 1715z–20), as amended by the preceding aggregate number of mortgages insured pur- There is authorized to be appropriated for provisions of this section, is further amend- suant to this section may not exceed 5 per- each of fiscal years 2009 through 2013, ed— cent of the aggregate number of mortgages $25,000,000, from negative credit subsidy for (1) by redesignating subsections (k), (l), for 1- to 4-family residences insured by the the mortgage insurance programs under title and (m) as subsections (l), (m), and (n), re- Secretary of Housing and Urban Develop- II of the National Housing Act, to the Sec- spectively; and ment under title II of the National Housing retary of Housing and Urban Development (2) by inserting after subsection (j) the fol- Act (12 U.S.C. 1707 et seq.) during the pre- for increasing funding for the purpose of im- lowing new subsection: ceding fiscal year.’’. proving technology, processes, program per- ‘‘(k) LIMITATION ON ORIGINATION FEES.— formance, eliminating fraud, and for pro- The Secretary shall establish limits on the SEC. 124. PILOT PROGRAM FOR AUTOMATED viding appropriate staffing in connection PROCESS FOR BORROWERS WITH- origination fee that may be charged to a OUT SUFFICIENT CREDIT HISTORY. with the mortgage insurance programs under mortgagor under a mortgage insured under title II of the National Housing Act. this section, which limitations shall— (a) ESTABLISHMENT.—Title II of the Na- (b) CERTIFICATION.—The authorization ‘‘(1) equal 1.5 percent of the maximum tional Housing Act (12 U.S.C. 1707 et seq.) is under subsection (a) shall not be effective for claim amount of the mortgage unless ad- amended by adding at the end the following a fiscal year unless the Secretary of Housing justed thereafter on the basis of— new section: and Urban Development has, by rulemaking

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00123 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.078 S03APPT1 ccoleman on PRODPC75 with SENATE S2490 CONGRESSIONAL RECORD — SENATE April 3, 2008 in accordance with section 553 of title 5, program to test the effectiveness of alter- (A) notifies the Committee on Banking, United States Code (notwithstanding sub- native forms of pre-purchase homeownership Housing, and Urban Affairs of the Senate and sections (a)(2), (b)(B), and (d)(3) of such sec- counseling for eligible homebuyers. the Committee on Financial Services of the tion), made a determination that— (b) FORMS OF COUNSELING.—The Secretary House of Representatives of such increase; (1) premiums being, or to be, charged dur- of Housing and Urban Development shall and ing such fiscal year for mortgage insurance provide to eligible homebuyers pre-purchase (B) publishes notice of such increase in the under title II of the National Housing Act homeownership counseling under this sec- Federal Register. are established at the minimum amount suf- tion in the form of— (b) WAIVER.—The Secretary of Housing and ficient to— (1) telephone counseling; Urban Development may waive the 30-day (A) comply with the requirements of sec- (2) individualized in-person counseling; notice requirement under subsection (a)(2), if tion 205(f) of such Act (relating to required (3) web-based counseling; the Secretary determines that waiting 30- capital ratio for the Mutual Mortgage Insur- (4) counseling classes; or days before increasing premiums would ance Fund); and (5) any other form or type of counseling cause substantial damage to the solvency of (B) ensure the safety and soundness of the that the Secretary may, in his discretion, de- multifamily housing programs under the Na- other mortgage insurance funds under such termine appropriate. tional Housing Act. Act; and (c) SIZE OF PROGRAM.—The Secretary shall SEC. 131. SAVINGS PROVISION. (2) any negative credit subsidy for such fis- make available the pre-purchase homeowner- Any mortgage insured under title II of the cal year resulting from such mortgage insur- ship counseling described in subsection (b) to National Housing Act before the date of en- ance programs adequately ensures the effi- not more than 3,000 eligible homebuyers in actment of this subtitle shall continue to be cient delivery and availability of such pro- any given year. governed by the laws, regulations, orders, grams. (d) INCENTIVE TO PARTICIPATE.—The Sec- and terms and conditions to which it was (c) STUDY AND REPORT.—The Secretary of retary of Housing and Urban Development subject on the day before the date of the en- Housing and Urban Development shall con- may provide incentives to eligible home- actment of this subtitle. duct a study to obtain recommendations buyers to participate in the demonstration SEC. 132. IMPLEMENTATION. from participants in the private residential program established under subsection (a). The Secretary of Housing and Urban Devel- (both single family and multifamily) mort- Such incentives may include the reduction opment shall by notice establish any addi- gage lending business and the secondary of any insurance premium charges owed by tional requirements that may be necessary market for such mortgages on how best to the eligible homebuyer to the Secretary. to immediately carry out the provisions of update and upgrade processes and tech- (e) ELIGIBLE HOMEBUYER DEFINED.—For this subtitle. The notice shall take effect nologies for the mortgage insurance pro- purposes of this section an ‘‘eligible home- upon issuance. grams under title II of the National Housing buyer’’ means a first-time homebuyer who SEC. 133. MORATORIUM ON IMPLEMENTATION OF Act so that the procedures for originating, has been approved for a home loan with a RISK-BASED PREMIUMS. insuring, and servicing of such mortgages loan-to-value ratio between 97 percent and For the 12-month period beginning on the conform with those customarily used by sec- 98.5 percent. date of enactment of this title, the Secretary ondary market purchasers of residential (f) REPORT TO CONGRESS.—The Secretary of of Housing and Urban Development shall not mortgage loans. Not later than the expira- Housing and Urban Development shall report enact, execute, or take any action to make tion of the 12-month period beginning on the to the Committee on Banking, Housing, and effective the planned implementation of date of the enactment of this title, the Sec- Urban Affairs of the Senate and the Com- risk-based premiums, which are designed for retary shall submit a report to the Congress mittee on Financial Services of the House of mortgage lenders to offer borrowers an FHA- describing the progress made and to be made Representative— insured product that provides a range of toward updating and upgrading such proc- (1) on an annual basis, on the progress and mortgage insurance premium pricing, based esses and technology, and providing appro- results of the demonstration program estab- on the risk the insurance contract rep- priate staffing for such mortgage insurance lished under subsection (a); and resents, as such planned implementation was programs. (2) for the period beginning on the date of set forth in the Notice published in the Fed- SEC. 127. POST-PURCHASE HOUSING COUN- enactment of this title and ending on the eral Register on September 20, 2007 (Vol. 72, SELING ELIGIBILITY IMPROVE- date that is 5 years after such date of enact- No. 182, Page 53872). MENTS. ment, on the payment history and delin- Section 106(c)(4) of the Housing and Urban Subtitle B—Manufactured Housing Loan quency rates of eligible homebuyers who par- Development Act of 1968 (12 U.S.C. Modernization 1701x(c)(4)) is amended: ticipated in the demonstration program. SEC. 141. SHORT TITLE. (1) in subparagraph (C)— SEC. 129. FRAUD PREVENTION. This subtitle may be cited as the ‘‘FHA (A) in clause (i), by striking ‘‘; or’’ and in- Section 1014 of title 18, United States Code, Manufactured Housing Loan Modernization serting a semicolon; is amended in the first sentence— Act of 2008’’. (B) in clause (ii), by striking the period at (1) by inserting ‘‘the Federal Housing Ad- SEC. 142. PURPOSES. the end and inserting a semicolon; and ministration’’ before ‘‘the Farm Credit Ad- The purposes of this subtitle are— (C) by adding at the end the following: ministration’’; and (1) to provide adequate funding for FHA-in- ‘‘(iii) a significant reduction in the income (2) by striking ‘‘commitment, or loan’’ and sured manufactured housing loans for low- of the household due to divorce or death; or inserting ‘‘commitment, loan, or insurance and moderate-income homebuyers during all ‘‘(iv) a significant increase in basic ex- agreement or application for insurance or a economic cycles in the manufactured hous- penses of the homeowner or an immediate guarantee’’. ing industry; family member of the homeowner (including SEC. 130. LIMITATION ON MORTGAGE INSURANCE (2) to modernize the FHA title I insurance the spouse, child, or parent for whom the PREMIUM INCREASES. program for manufactured housing loans to homeowner provides substantial care or fi- (a) IN GENERAL.—Notwithstanding any enhance participation by Ginnie Mae and the nancial assistance) due to— other provision of law, including any provi- private lending markets; and ‘‘(I) an unexpected or significant increase sion of this title and any amendment made (3) to adjust the low loan limits for title I in medical expenses; by this title— manufactured home loan insurance to reflect ‘‘(II) a divorce; (1) for the period beginning on the date of the increase in costs since such limits were ‘‘(III) unexpected and significant damage the enactment of this title and ending on Oc- last increased in 1992 and to index the limits to the property, the repair of which will not tober 1, 2009, the premiums charged for mort- to inflation. be covered by private or public insurance; or gage insurance under multifamily housing SEC. 143. EXCEPTION TO LIMITATION ON FINAN- ‘‘(IV) a large property-tax increase; or’’; programs under the National Housing Act CIAL INSTITUTION PORTFOLIO. (2) by striking the matter that follows sub- may not be increased above the premium The second sentence of section 2(a) of the paragraph (C); and amounts in effect under such program on Oc- National Housing Act (12 U.S.C. 1703(a)) is (3) by adding at the end the following: tober 1, 2006, unless the Secretary of Housing amended— ‘‘(D) the Secretary of Housing and Urban and Urban Development determines that, ab- (1) by striking ‘‘In no case’’ and inserting Development determines that the annual in- sent such increase, insurance of additional ‘‘Other than in connection with a manufac- come of the homeowner is no greater than mortgages under such program would, under tured home or a lot on which to place such the annual income established by the Sec- the Federal Credit Reform Act of 1990, re- a home (or both), in no case’’; and retary as being of low- or moderate-inquire the appropriation of new budget au- (2) by striking ‘‘: Provided, That with’’ and come.’’. thority to cover the costs (as such term is inserting ‘‘. With’’. SEC. 128. PRE-PURCHASE HOMEOWNERSHIP defined in section 502 of the Federal Credit SEC. 144. INSURANCE BENEFITS. COUNSELING DEMONSTRATION. Reform Act of 1990 (2 U.S.C. 661a) of such in- (a) IN GENERAL.—Subsection (b) of section (a) ESTABLISHMENT OF PROGRAM.—For the surance; and 2 of the National Housing Act (12 U.S.C. period beginning on the date of enactment of (2) a premium increase pursuant to para- 1703(b)), is amended by adding at the end the this title and ending on the date that is 3 graph (1) may be made only if not less than following new paragraph: years after such date of enactment, the Sec- 30 days prior to such increase taking effect, ‘‘(8) INSURANCE BENEFITS FOR MANUFAC- retary of Housing and Urban Development the Secretary of Housing and Urban Develop- TURED HOUSING LOANS.—Any contract of in- shall establish and conduct a demonstration ment— surance with respect to loans, advances of

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00124 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.078 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2491 credit, or purchases in connection with a mium payment in an amount not to exceed visions of this title may be exercised by an manufactured home or a lot on which to 2.25 percent of the amount of the original in- officer appointed by the Secretary without place a manufactured home (or both) for a fi- sured principal obligation. the execution of any express delegation of nancial institution that is executed under ‘‘(B) In addition to the premium under sub- power or power of attorney. Nothing in this this title after the date of the enactment of paragraph (A), annual premium payments subsection shall be construed to prevent the the FHA Manufactured Housing Loan Mod- during the term of the loan, advance, or obli- Secretary from delegating such power by ernization Act of 2008 by the Secretary shall gation purchased in an amount not exceed- order or by power of attorney, in the Sec- be conclusive evidence of the eligibility of ing 1.0 percent of the remaining insured prin- retary’s discretion, to any officer or agent such financial institution for insurance, and cipal balance (excluding the portion of the the Secretary may appoint.’’. the validity of any contract of insurance so remaining balance attributable to the pre- SEC. 148. REVISION OF UNDERWRITING CRI- executed shall be incontestable in the hands mium collected under subparagraph (A) and TERIA. of the bearer from the date of the execution without taking into account delinquent pay- (a) IN GENERAL.—Subsection (b) of section of such contract, except for fraud or mis- ments or prepayments). 2 of the National Housing Act (12 U.S.C. representation on the part of such institu- ‘‘(C) Premium charges under this para- 1703(b)), as amended by the preceding provi- tion.’’. graph shall be established in amounts that sions of this title, is further amended by add- (b) APPLICABILITY.—The amendment made are sufficient, but do not exceed the mining at the end the following new paragraph: by subsection (a) shall only apply to loans imum amounts necessary, to maintain a neg- ‘‘(10) FINANCIAL SOUNDNESS OF MANUFAC- that are registered or endorsed for insurance ative credit subsidy for the program under TURED HOUSING PROGRAM.—The Secretary after the date of the enactment of this title. this section for insurance of loans, advances shall establish such underwriting criteria for SEC. 145. MAXIMUM LOAN LIMITS. of credit, or purchases in connection with a loans and advances of credit in connection (a) DOLLAR AMOUNTS.—Paragraph (1) of manufactured home or a lot on which to with a manufactured home or a lot on which section 2(b) of the National Housing Act (12 place such a home (or both), as determined to place a manufactured home (or both), in- U.S.C. 1703(b)(1)) is amended— based upon risk to the Federal Government cluding such loans and advances represented (1) in clause (ii) of subparagraph (A), by under existing underwriting requirements. by obligations purchased by financial insti- striking ‘‘$17,500’’ and inserting ‘‘$25,090’’; ‘‘(D) The Secretary may increase the limi- tutions, as may be necessary to ensure that (2) in subparagraph (C) by striking tations on premium payments to percentages the program under this title for insurance ‘‘$48,600’’ and inserting ‘‘$69,678’’; above those set forth in subparagraphs (A) for financial institutions against losses from (3) in subparagraph (D) by striking and (B), but only if necessary, and not in ex- such loans, advances of credit, and purchases ‘‘$64,800’’ and inserting ‘‘$92,904’’; cess of the minimum increase necessary, to is financially sound.’’. (4) in subparagraph (E) by striking maintain a negative credit subsidy as de- (b) TIMING.—Not later than the expiration ‘‘$16,200’’ and inserting ‘‘$23,226’’; and scribed in subparagraph (C).’’. of the 6-month period beginning on the date (5) by realigning subparagraphs (C), (D), SEC. 147. TECHNICAL CORRECTIONS. of the enactment of this title, the Secretary and (E) 2 ems to the left so that the left mar- (a) DATES.—Subsection (a) of section 2 of of Housing and Urban Development shall re- gins of such subparagraphs are aligned with the National Housing Act (12 U.S.C. 1703(a)) vise the existing underwriting criteria for the margins of subparagraphs (A) and (B). is amended— the program referred to in paragraph (10) of (b) ANNUAL INDEXING.—Subsection (b) of (1) by striking ‘‘on and after July 1, 1939,’’ section 2(b) of the National Housing Act (as section 2 of the National Housing Act (12 each place such term appears; and added by subsection (a) of this section) in ac- U.S.C. 1703(b)), as amended by the preceding (2) by striking ‘‘made after the effective cordance with the requirements of such para- provisions of this title, is further amended date of the Housing Act of 1954’’. graph. by adding at the end the following new para- (b) AUTHORITY OF SECRETARY.—Subsection SEC. 149. PROHIBITION AGAINST KICKBACKS AND graph: (c) of section 2 of the National Housing Act UNEARNED FEES. ‘‘(9) ANNUAL INDEXING OF MANUFACTURED (12 U.S.C. 1703(c)) is amended to read as fol- Title I of the National Housing Act is HOUSING LOANS.—The Secretary shall develop lows: amended by adding at the end of section 9 a method of indexing in order to annually ‘‘(c) HANDLING AND DISPOSAL OF PROP- the following new section: adjust the loan limits established in subpara- ERTY.— ‘‘SEC. 10. PROHIBITION AGAINST KICKBACKS AND graphs (A)(ii), (C), (D), and (E) of this sub- ‘‘(1) AUTHORITY OF SECRETARY.—Notwith- UNEARNED FEES. section. Such index shall be based on the standing any other provision of law, the Sec- ‘‘(a) IN GENERAL.—Except as provided in manufactured housing price data collected retary may— subsection (b), the provisions of sections 3, 8, by the United States Census Bureau. The ‘‘(A) deal with, complete, rent, renovate, 16, 17, 18, and 19 of the Real Estate Settle- Secretary shall establish such index no later modernize, insure, or assign or sell at public ment Procedures Act of 1974 (12 U.S.C. 2601 et than 1 year after the date of the enactment or private sale, or otherwise dispose of, for seq.) shall apply to each sale of a manufac- of the FHA Manufactured Housing Loan cash or credit in the Secretary’s discretion, tured home financed with an FHA-insured Modernization Act of 2008.’’ and upon such terms and conditions and for loan or extension of credit, as well as to (c) TECHNICAL AND CONFORMING CHANGES.— such consideration as the Secretary shall de- services rendered in connection with such Paragraph (1) of section 2(b) of the National termine to be reasonable, any real or per- transactions. Housing Act (12 U.S.C. 1703(b)(1)) is amend- sonal property conveyed to or otherwise ac- ‘‘(b) AUTHORITY OF THE SECRETARY.—The ed— quired by the Secretary, in connection with Secretary is authorized to determine the (1) by striking ‘‘No’’ and inserting ‘‘Except the payment of insurance heretofore or here- manner and extent to which the provisions as provided in the last sentence of this para- after granted under this title, including any of sections 3, 8, 16, 17, 18, and 19 of the Real graph, no’’; and evidence of debt, contract, claim, personal Estate Settlement Procedures Act of 1974 (12 (2) by adding after and below subparagraph property, or security assigned to or held by U.S.C. 2601 et seq.) may reasonably be ap- (G) the following: him in connection with the payment of in- plied to the transactions described in sub- ‘‘The Secretary shall, by regulation, annu- surance heretofore or hereafter granted section (a), and to grant such exemptions as ally increase the dollar amount limitations under this section; and may be necessary to achieve the purposes of in subparagraphs (A)(ii), (C), (D), and (E) (as ‘‘(B) pursue to final collection, by way of this section. such limitations may have been previously compromise or otherwise, all claims assigned ‘‘(c) DEFINITIONS.—For purposes of this sec- adjusted under this sentence) in accordance to or held by the Secretary and all legal or tion— with the index established pursuant to para- equitable rights accruing to the Secretary in ‘‘(1) the term ‘federally related mortgage graph (9).’’. connection with the payment of such insur- loan’ as used in sections 3, 8, 16, 17, 18, and 19 SEC. 146. INSURANCE PREMIUMS. ance, including unpaid insurance premiums of the Real Estate Settlement Procedures Subsection (f) of section 2 of the National owed in connection with insurance made Act of 1974 (12 U.S.C. 2601 et seq.) shall in- Housing Act (12 U.S.C. 1703(f)) is amended— available by this title. clude an FHA-insured loan or extension of (1) by inserting ‘‘(1) PREMIUM CHARGES.—’’ ‘‘(2) ADVERTISEMENTS FOR PROPOSALS.— credit made to a borrower for the purpose of after ‘‘(f)’’; and Section 3709 of the Revised Statutes shall purchasing a manufactured home that the (2) by adding at the end the following new not be construed to apply to any contract of borrower intends to occupy as a personal res- paragraph: hazard insurance or to any purchase or con- idence; and ‘‘(2) MANUFACTURED HOME LOANS.—Not- tract for services or supplies on account of ‘‘(2) the term ‘real estate settlement serv- withstanding paragraph (1), in the case of a such property if the amount thereof does not ice’ as used in sections 3, 8, 16, 17, 18, and 19 loan, advance of credit, or purchase in con- exceed $25,000. of the Real Estate Settlement Procedures nection with a manufactured home or a lot ‘‘(3) DELEGATION OF AUTHORITY.—The power Act of 1974 (12 U.S.C. 2601 et seq.) shall in- on which to place such a home (or both), the to convey and to execute in the name of the clude any service rendered in connection premium charge for the insurance granted Secretary, deeds of conveyance, deeds of re- with a loan or extension of credit insured by under this section shall be paid by the bor- lease, assignments and satisfactions of mort- the Federal Housing Administration for the rower under the loan or advance of credit, as gages, and any other written instrument repurchase of a manufactured home. follows: lating to real or personal property or any in- ‘‘(d) UNFAIR AND DECEPTIVE PRACTICES.—In ‘‘(A) At the time of the making of the loan, terest therein heretofore or hereafter ac- connection with the purchase of a manufac- advance of credit, or purchase, a single pre- quired by the Secretary pursuant to the pro- tured home financed with a loan or extension

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00125 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.078 S03APPT1 ccoleman on PRODPC75 with SENATE S2492 CONGRESSIONAL RECORD — SENATE April 3, 2008 of credit insured by the Federal Housing Ad- program required by subsection (a) shall be shall be established not later than 60 days ministration under this title, the Secretary provided to a member of the Armed Forces after the date of enactment of this section. shall prohibit acts or practices in connection covered by the program as soon as prac- (3) CRITERIA.—The funding formula re- with loans or extensions of credit that the ticable after the return of the member from quired under paragraph (1) shall ensure that Secretary finds to be unfair, deceptive, or service as described in subsection (a). any amounts appropriated or otherwise made otherwise not in the interests of the bor- SEC. 203. ENHANCEMENT OF PROTECTIONS FOR available under this section are allocated to rower.’’. SERVICEMEMBERS RELATING TO States and units of general local government SEC. 150. LEASEHOLD REQUIREMENTS. MORTGAGES AND MORTGAGE FORE- with the greatest need, as such need is deter- Subsection (b) of section 2 of the National CLOSURES. mined in the discretion of the Secretary Housing Act (12 U.S.C. 1703(b)), as amended (a) EXTENSION OF PERIOD OF PROTECTIONS based on— by the preceding provisions of this title, is AGAINST MORTGAGE FORECLOSURES.— (A) the number and percentage of home further amended by adding at the end the (1) EXTENSION OF PROTECTION PERIOD.—Sub- foreclosures in each State or unit of general following new paragraph: section (c) of section 303 of the local government; ‘‘(11) LEASEHOLD REQUIREMENTS.—No insur- Servicemembers Civil Relief Act (50 U.S.C. (B) the number and percentage of homes fiance shall be granted under this section to App. 533) is amended by striking ‘‘90 days’’ nanced by a subprime mortgage related loan any such financial institution with respect and inserting ‘‘9 months’’. in each State or unit of general local govern- to any obligation representing any such (2) EXTENSION OF STAY OF PROCEEDINGS PE- ment; and loan, advance of credit, or purchase by it, RIOD.—Subsection (b) of such section is (C) the number and percentage of homes in made for the purposes of financing a manu- amended by striking ‘‘90 days’’ and inserting default or delinquency in each State or unit factured home which is intended to be situ- ‘‘9 months’’. of general local government. (b) TREATMENT OF MORTGAGES AS OBLIGA- ated in a manufactured home community (4) DISTRIBUTION.—Amounts appropriated TIONS SUBJECT TO INTEREST RATE LIMITA- pursuant to a lease, unless such lease— or otherwise made available under this sec- TION.—Section 207 of the Servicemembers ‘‘(A) expires not less than 3 years after the tion shall be distributed according to the Civil Relief Act (50 U.S.C. App. 527) is amend- origination date of the obligation; funding formula established by the Secretary ed— ‘‘(B) is renewable upon the expiration of under paragraph (1) not later than 30 days (1) in subsection (a)(1), by striking ‘‘in ex- the original 3 year term by successive 1 year after the establishment of such formula. cess of 6 percent’’ and all that follows and in- terms; and (c) USE OF FUNDS.— serting ‘‘in excess of 6 percent— ‘‘(C) requires the lessor to provide the les- (1) IN GENERAL.—Any State or unit of gen- ‘‘(A) during the period of military service see written notice of termination of the lease eral local government that receives amounts and one year thereafter, in the case of an ob- not less than 180 days prior to the expiration pursuant to this section shall, not later than ligation or liability consisting of a mort- of the current lease term in the event the 18 months after the receipt of such amounts, gage, trust deed, or other security in the na- lessee is required to move due to the closing use such amounts to purchase and redevelop ture of a mortgage; or abandoned and foreclosed homes and residen- of the manufactured home community, and ‘‘(B) during the period of military service, tial properties. further provides that failure to provide such in the case of any other obligation or liabil- (2) PRIORITY.—Any State or unit of general notice to the mortgagor in a timely manner ity.’’; and local government that receives amounts pur- will cause the lease term, at its expiration, (2) by striking subsection (d) and inserting suant to this section shall in distributing to automatically renew for an additional 1 the following new subsection: such amounts give priority emphasis and year term.’’. ‘‘(d) DEFINITIONS.—In this section: consideration to those metropolitan areas, TITLE II—MORTGAGE FORECLOSURE ‘‘(1) INTEREST.—The term ‘interest’ in- metropolitan cities, urban areas, rural areas, PROTECTIONS FOR SERVICEMEMBERS cludes service charges, renewal charges, fees, low- and moderate-income areas, and other SEC. 201. TEMPORARY INCREASE IN MAXIMUM or any other charges (except bona fide insur- areas with the greatest need, including LOAN GUARANTY AMOUNT FOR CER- ance) with respect to an obligation or liabil- those— TAIN HOUSING LOANS GUARANTEED ity. (A) with the greatest percentage of home BY THE SECRETARY OF VETERANS ‘‘(2) OBLIGATION OR LIABILITY.—The term foreclosures; AFFAIRS. Notwithstanding subparagraph (C) of sec- ‘obligation or liability’ includes an obliga- (B) with the highest percentage of homes tion 3703(a)(1) of title 38, United States Code, tion or liability consisting of a mortgage, financed by a subprime mortgage related for purposes of any loan described in sub- trust deed, or other security in the nature of loan; and paragraph (A)(i)(IV) of such section that is a mortgage.’’. (C) identified by the State or unit of gen- (c) EFFECTIVE DATE; SUNSET.— originated during the period beginning on eral local government as likely to face a sig- (1) EFFECTIVE DATE.—The amendment the date of the enactment of this Act and nificant rise in the rate of home foreclosures. made by subsection (a) shall take effect on ending on December 31, 2008, the term ‘‘max- (3) ELIGIBLE USES.—Amounts made avail- the date of the enactment of this Act. imum guaranty amount’’ shall mean an able under this section may be used to— (2) SUNSET.—The amendments made by amount equal to 25 percent of the higher of— (A) establish financing mechanisms for subsection (a) shall expire on December 31, (1) the limitation determined under section purchase and redevelopment of foreclosed 2010. Effective January 1, 2011, the provisions 305(a)(2) of the Federal Home Loan Mortgage upon homes and residential properties, in- of subsections (b) and (c) of section 303 of the Corporation Act (12 U.S.C. 1454(a)(2)) for the cluding such mechanisms as soft-seconds, Servicemembers Civil Relief Act, as in effect calendar year in which the loan is originated loan loss reserves, and shared-equity loans on the day before the date of the enactment for a single-family residence; or for low- and moderate-income homebuyers; of this Act, are hereby revived. (2) 125 percent of the area median price for (B) purchase and rehabilitate homes and a single-family residence, but in no case to TITLE III—EMERGENCY ASSISTANCE FOR residential properties that have been aban- exceed 175 percent of the limitation deter- THE REDEVELOPMENT OF ABANDONED doned or foreclosed upon, in order to sell, mined under such section 305(a)(2) for the AND FORECLOSED HOMES rent, or redevelop such homes and prop- calendar year in which the loan is originated SEC. 301. EMERGENCY ASSISTANCE FOR THE RE- erties; for a single-family residence. DEVELOPMENT OF ABANDONED AND (C) establish land banks for homes that FORECLOSED HOMES. have been foreclosed upon; and SEC. 202. COUNSELING ON MORTGAGE FORE- CLOSURES FOR MEMBERS OF THE (a) DIRECT APPROPRIATIONS.—There are ap- (D) demolish blighted structures. ARMED FORCES RETURNING FROM propriated out of any money in the Treasury (d) LIMITATIONS.— SERVICE ABROAD. not otherwise appropriated for the fiscal (1) ON PURCHASES.—Any purchase of a fore- (a) IN GENERAL.—The Secretary of Defense year 2008, $4,000,000,000, to remain available closed upon home or residential property shall develop and implement a program to until expended, for assistance to States and under this section shall be at a discount advise members of the Armed Forces (includ- units of general local government (as such from the current market appraised value of ing members of the National Guard and Re- terms are defined in section 102 of the Hous- the home or property, taking into account serve) who are returning from service on ac- ing and Community Development Act of 1974 its current condition, and such discount tive duty abroad (including service in Oper- (42 U.S.C. 5302)) for the redevelopment of shall ensure that purchasers are paying ation Iraqi Freedom and Operation Enduring abandoned and foreclosed upon homes and below-market value for the home or prop- Freedom) on actions to be taken by such residential properties. erty. members to prevent or forestall mortgage (b) ALLOCATION OF APPROPRIATED (2) SALE OF HOMES.—If an abandoned or foreclosures. AMOUNTS.— foreclosed upon home or residential property (b) ELEMENTS.—The program required by (1) IN GENERAL.—The amounts appropriated is purchased, redeveloped, or otherwise sold subsection (a) shall include the following: or otherwise made available to States and to an individual as a primary residence, then (1) Credit counseling. units of general local government under this such sale shall be in an amount equal to or (2) Home mortgage counseling. section shall be allocated based on a funding less than the cost to acquire and redevelop (3) Such other counseling and information formula established by the Secretary of or rehabilitate such home or property up to as the Secretary considers appropriate for Housing and Urban Development (in this a decent, safe, and habitable condition. purposes of the program. title referred to as the ‘‘Secretary’’). (3) REINVESTMENT OF PROFITS.— (c) TIMING OF PROVISION OF COUNSELING.— (2) FORMULA TO BE DEVISED SWIFTLY.—The (A) REVENUES GENERATED FROM SALES.— Counseling and other information under the funding formula required under paragraph (1) Any revenue generated from the sale, rental,

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00126 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.078 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2493 redevelopment, rehabilitation, or any other TITLE IV—HOUSING COUNSELING est that is no longer accurate, as determined eligible use that is in excess of the cost to RESOURCES under section 107(c), the creditor shall fur- acquire and redevelop (including reasonable SEC. 401. HOUSING COUNSELING RESOURCES. nish an additional, corrected statement to development fees) or rehabilitate an aban- There are appropriated out of any money the borrower, not later than 3 business days doned or foreclosed upon home or residential in the Treasury not otherwise appropriated before the date of consummation of the property shall be provided to and used by the for the fiscal year 2008, for an additional transaction. A consumer may modify or State or unit of general local government in amount for the ‘‘Neighborhood Reinvestment waive receipt of the additional, corrected accordance with, and in furtherance of, the Corporation—Payment to the Neighborhood statement 3 business days before the date of intent and provisions of this section. Reinvestment Corporation’’ $100,000,000, to consummation of the transaction in order to (B) OTHER REVENUES.—Any revenue gen- remain available until September 30, 2008, for meet a bona fide personal financial emer- erated under subparagraphs (A), (C) or (D) of foreclosure mitigation activities under the gency, only if the consumer provides the subsection (c)(3) shall be provided to and terms and conditions contained in the second creditor a dated, written statement that— used by the State or unit of general local undesignated paragraph (beginning with the ‘‘(i) describes the emergency; government in accordance with, and in fur- phrase ‘‘For an additional amount’’) under ‘‘(ii) specifically modifies or waives the therance of, the intent and provisions of this the heading ‘‘Neighborhood Reinvestment right; and section. Corporation—Payment to the Neighborhood ‘‘(iii) bears the signature of all the con- (e) RULES OF CONSTRUCTION.— Reinvestment Corporation’’ of Public Law sumers entitled to receive the disclosure. (1) IN GENERAL.—Except as otherwise pro- 110–161. ‘‘(E) The consumer shall receive the disclo- vided by this section, amounts appropriated, TITLE V—MORTGAGE DISCLOSURE sures required under this subsection before revenues generated, or amounts otherwise IMPROVEMENT ACT paying any fee to the creditor or other per- made available to States and units of general SEC. 501. SHORT TITLE. son in connection with the consumer’s appli- local government under this section shall be This title may be cited as the ‘‘Mortgage cation for a residential mortgage trans- treated as though such funds were commu- Disclosure Improvement Act of 2008’’. action. If the disclosures are mailed to the nity development block grant funds under SEC. 502. ENHANCED MORTGAGE LOAN DISCLO- consumer, the consumer is considered to title I of the Housing and Community Devel- SURES. have received them 3 business days after opment Act of 1974 (42 U.S.C. 5301 et seq.). (a) TRUTH IN LENDING ACT DISCLOSURES.— they are mailed. A creditor or other person (2) NO MATCH.—No matching funds shall be Section 128(b)(2) of the Truth in Lending Act may impose a fee for obtaining the con- required in order for a State or unit of gen- (15 U.S.C. 1638(b)(2)) is amended— sumer’s credit report before the consumer eral local government to receive any (1) by inserting ‘‘(A)’’ before ‘‘In the’’; has received the disclosures under this sub- amounts under this section. (2) by striking ‘‘a residential mortgage section, provided the fee is bona fide and rea- (f) AUTHORITY TO SPECIFY ALTERNATIVE RE- transaction, as defined in section 103(w)’’ and sonable in amount.’’. QUIREMENTS.— inserting ‘‘any extension of credit that is se- (b) CIVIL LIABILITY.—Section 130(a) of the (1) IN GENERAL.—In administering any cured by the dwelling of a consumer’’; Truth in Lending Act (15 U.S.C. 1640(a)) is amounts appropriated or otherwise made (3) by striking ‘‘shall be made in accord- amended— available under this section, the Secretary ance’’ and all that follows through ‘‘ex- (1) in paragraph (2)(A)(iii), by striking ‘‘not may specify alternative requirements to any tended, or’’; and less than $200 or greater than $2,000’’ and in- provision under title I of the Housing and (4) by striking ‘‘If the’’ and all that follows serting ‘‘not less than $400 or greater than Community Development Act of 1974 (except through the end of the paragraph and insert- $4,000’’; and for those related to fair housing, non- ing the following: (2) in the penultimate sentence of the un- discrimination, labor standards, and the en- ‘‘(B) In the case of an extension of credit designated matter following paragraph (4)— vironment) in accordance with the terms of that is secured by the dwelling of a con- (A) by inserting ‘‘or section this section and for the sole purpose of expe- sumer, in addition to the other disclosures 128(b)(2)(C)(ii),’’after ‘‘128(a),’’; and diting the use of such funds. required by subsection (a), the disclosures (B) by inserting ‘‘or section 128(b)(2)(C)(ii)’’ (2) NOTICE.—The Secretary shall provide provided under this paragraph shall— before the period. written notice of its intent to exercise the ‘‘(i) state in conspicuous type size and for- TITLE VI—TAX-RELATED PROVISIONS authority to specify alternative require- mat, the following: ‘You are not required to SEC. 601. ELECTION FOR 4-YEAR CARRYBACK OF ments under paragraph (1) to the Committee complete this agreement merely because you CERTAIN NET OPERATING LOSSES on Banking, Housing and Urban Affairs of have received these disclosures or signed a AND TEMPORARY SUSPENSION OF 90 the Senate and the Committee on Financial loan application.’; and PERCENT AMT LIMIT. Services of the House of Representatives not ‘‘(ii) be furnished to the borrower not later (a) IN GENERAL.— later than 10 business days before such exer- than 7 business days before the date of con- (1) 4-YEAR CARRYBACK OF CERTAIN LOSSES.— cise of authority is to occur. summation of the transaction, and at the Subparagraph (H) of section 172(b)(1) of the (3) LOW AND MODERATE INCOME REQUIRE- time of consummation of the transaction, Internal Revenue Code of 1986 (relating to MENT.— subject to subparagraph (D). years to which loss may be carried) is (A) IN GENERAL.—Notwithstanding the au- ‘‘(C) In the case of an extension of credit amended to read as follows: thority of the Secretary under paragraph that is secured by the dwelling of a con- ‘‘(H) ADDITIONAL CARRYBACK OF CERTAIN (1)— sumer, under which the annual rate of inter- LOSSES.— (i) all of the funds appropriated or other- est is variable, or with respect to which the ‘‘(i) TAXABLE YEARS ENDING DURING 2001 AND wise made available under this section shall regular payments may otherwise be variable, 2002.—In the case of a net operating loss for be used with respect to individuals and fami- in addition to the other disclosures required any taxable year ending during 2001 or 2002, lies whose income does not exceed 120 per- by subsection (a), the disclosures provided subparagraph (A)(i) shall be applied by sub- cent of area median income; and under this paragraph shall do the following: stituting ‘5’ for ‘2’ and subparagraph (F) (ii) not less than 25 percent of the funds ap- ‘‘(i) Label the payment schedule as follows: shall not apply. propriated or otherwise made available ‘Payment Schedule: Payments Will Vary ‘‘(ii) TAXABLE YEARS ENDING DURING 2008 under this section shall be used for the pur- Based on Interest Rate Changes’. AND 2009.—In the case of a net operating loss chase and redevelopment of abandoned or ‘‘(ii) State in conspicuous type size and for- with respect to any eligible taxpayer (within foreclosed upon homes or residential prop- mat examples of adjustments to the regular the meaning of section 168(k)(4)) for any tax- erties that will be used to house individuals required payment on the extension of credit able year ending during 2008 or 2009— or families whose incomes do not exceed 50 based on the change in the interest rates ‘‘(I) subparagraph (A)(i) shall be applied by percent of area median income. specified by the contract for such extension substituting ‘4’ for ‘2’, (B) RECURRENT REQUIREMENT.—The Sec- of credit. Among the examples required to be ‘‘(II) subparagraph (E)(ii) shall be applied retary shall, by rule or order, ensure, to the provided under this clause is an example by substituting ‘3’ for ‘2’, and maximum extent practicable and for the that reflects the maximum payment amount ‘‘(III) subparagraph (F) shall not apply.’’. longest feasible term, that the sale, rental, of the regular required payments on the ex- (2) TEMPORARY SUSPENSION OF 90 PERCENT or redevelopment of abandoned and fore- tension of credit, based on the maximum in- LIMIT ON CERTAIN NOL CARRYBACKS AND closed upon homes and residential properties terest rate allowed under the contract, in ac- CARRYOVERS.— under this section remain affordable to indi- cordance with the rules of the Board. Prior (A) IN GENERAL.—Section 56(d) of the Inter- viduals or families described in subparagraph to issuing any rules pursuant to this clause, nal Revenue Code of 1986 (relating to defini- (A). the Board shall conduct consumer testing to tion of alternative tax net operating loss de- (g) PERIODIC AUDITS.—In consultation with determine the appropriate format for production) is amended by adding at the end the the Secretary of Housing and Urban Develop- viding the disclosures required under this following new paragraph: ment, the Comptroller General of the United subparagraph to consumers so that such dis- ‘‘(3) ADDITIONAL ADJUSTMENTS.—For pur- States shall conduct periodic audits to en- closures can be easily understood. poses of paragraph (1)(A), in the case of an sure that funds appropriated, made avail- ‘‘(D) In any case in which the disclosure eligible taxpayer (within the meaning of sec- able, or otherwise distributed under this sec- statement provided 7 business days before tion 168(k)(4)), the amount described in sub- tion are being used in a manner consistent the date of consummation of the transaction clause (I) of paragraph (1)(A)(ii) shall be in- with the criteria provided in this section. contains an annual percentage rate of inter- creased by the amount of the net operating

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00127 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.079 S03APPT1 ccoleman on PRODPC75 with SENATE S2494 CONGRESSIONAL RECORD — SENATE April 3, 2008

loss deduction allowable for the taxable year if included in section 102 of the Economic ‘‘(A) IN GENERAL.—No amount which is at- under section 172 attributable to the sum Stimulus Act of 2008. tributable to the increase under subsection of— SEC. 602. MODIFICATIONS ON USE OF QUALIFIED (d)(5) may be used— ‘‘(A) carrybacks of net operating losses MORTGAGE BONDS; TEMPORARY IN- ‘‘(i) for a carryforward purpose other than from taxable years ending during 2008 and CREASED VOLUME CAP FOR CER- a qualified purpose (as defined in subsection 2009, and TAIN HOUSING BONDS. (d)(5)), and ‘‘(B) carryovers of net operating losses to (a) USE OF QUALIFIED MORTGAGE BONDS ‘‘(ii) to issue any bond after calendar year taxable years ending during 2008 or 2009.’’. PROCEEDS FOR SUBPRIME REFINANCING 2010. LOANS.—Section 143(k) of the Internal Rev- (B) CONFORMING AMENDMENT.—Subclause ‘‘(B) ORDERING RULES.—For purposes of enue Code of 1986 (relating to other defini- (I) of section 56(d)(1)(A)(i) of such Code is subparagraph (A), any carryforward of an tions and special rules) is amended by adding amended by inserting ‘‘amount of such’’ be- issuing authority’s volume cap for calendar at the end the following new paragraph: fore ‘‘deduction described in clause (ii)(I)’’. year 2008 shall be treated as attributable to ‘‘(12) SPECIAL RULES FOR SUBPRIME (3) EFFECTIVE DATES.— such increase to the extent of such in- REFINANCINGS.— (A) NET OPERATING LOSSES.—The amend- crease.’’. ments made by paragraph (1) shall apply to ‘‘(A) IN GENERAL.—Notwithstanding the requirements of subsection (i)(1), the proceeds (c) ALTERNATIVE MINIMUM TAX EXEMPTION net operating losses arising in taxable years FOR QUALIFIED MORTGAGE BONDS, QUALIFIED ending in 2008 or 2009. of a qualified mortgage issue may be used to refinance a mortgage on a residence which VETERANS’ MORTGAGE BONDS, AND BONDS FOR (B) SUSPENSION OF AMT LIMITATION.—The QUALIFIED RESIDENTIAL RENTAL PROJECTS.— amendments made by paragraph (2) shall was originally financed by the mortgagor through a qualified subprime loan. (1) IN GENERAL.—Clause (ii) of section apply to taxable years ending after Decem- 57(a)(5)(C) of the Internal Revenue Code of ber 31, 1997. ‘‘(B) SPECIAL RULES.—In applying this paragraph to any case in which the proceeds 1986 (relating to specified private activity (4) ANTI-ABUSE RULES.—The Secretary of bonds) is amended by striking ‘‘shall not in- Treasury or the Secretary’s designee shall of a qualified mortgage issue are used for any refinancing described in subparagraph clude’’ and all that follows and inserting prescribe such rules as are necessary to pre- ‘‘shall not include— vent the abuse of the purposes of the amend- (A)— ‘‘(i) subsection (a)(2)(D)(i) (relating to pro- ‘‘(I) any qualified 501(c)(3) bond (as defined ments made by this subsection, including in section 145), or anti-stuffing rules, anti-churning rules (in- ceeds must be used within 42 months of date ‘‘(II) any qualified mortgage bond (as de- cluding rules relating to sale-leasebacks), of issuance) shall be applied by substituting fined in section 143(a)), any qualified vet- and rules similar to the rules under section ‘12-month period’ for ‘42-month period’ each erans’ mortgage bond (as defined in section 1091 of the Internal Revenue Code of 1986 re- place it appears, 143(b)), or any exempt facility bond (as de- lating to losses from wash sales. ‘‘(ii) subsection (d) (relating to 3-year re- fined in section 142(a)) issued as part of an (b) ELECTION AMONG STIMULUS INCEN- quirement) shall not apply, and issue 95 percent or more of the net proceeds TIVES.— ‘‘(iii) subsection (e) (relating to purchase of which are to be used to provide qualified (1) IN GENERAL.— price requirement) shall be applied by using (A) BONUS DEPRECIATION.—Section 168(k) of the market value of the residence at the residential rental projects (as defined in sec- the Internal Revenue Code of 1986 (relating time of refinancing in lieu of the acquisition tion 142(d)), but only if such bond is issued to special allowance for certain property ac- cost. after the date of the enactment of this sub- quired after December 31, 2007, and before ‘‘(C) QUALIFIED SUBPRIME LOAN.—The term clause and before January 1, 2011. January 1, 2009), as amended by the Eco- ‘qualified subprime loan’ means an adjust- Subclause (II) shall not apply to a refunding nomic Stimulus Act of 2008, is amended— able rate single-family residential mortgage bond unless such subclause applied to the re- (i) in paragraph (1), by inserting ‘‘placed in loan originated after December 31, 2001, and funded bond (or in the case of a series of service by an eligible taxpayer’’ after ‘‘any before January 1, 2008, that the bond issuer refundings, the original bond).’’. qualified property’’, and determines would be reasonably likely to (2) CONFORMING AMENDMENT.—The heading (ii) by adding at the end the following new cause financial hardship to the borrower if for section 57(a)(5)(C)(ii) of such Code is paragraph: not refinanced. amended by striking ‘‘QUALIFIED 501(c)(3) ‘‘(4) ELIGIBLE TAXPAYER.— ‘‘(D) TERMINATION.—This paragraph shall BONDS’’ and inserting ‘‘CERTAIN BONDS’’. ‘‘(A) IN GENERAL.—At such time and in not apply to any bonds issued after Decem- (d) EFFECTIVE DATE.—The amendments such manner as the Secretary shall pre- ber 31, 2010.’’. made by this section shall apply to bonds scribe, each taxpayer may elect to be an eli- (b) INCREASED VOLUME CAP FOR CERTAIN issued after the date of the enactment of this gible taxpayer with respect to 1 (and only 1) BONDS.— Act. of the following: (1) IN GENERAL.—Subsection (d) of section SEC. 603. CREDIT FOR CERTAIN HOME PUR- ‘‘(i) This subsection and section 179(b)(7). 146 of the Internal Revenue Code of 1986 (re- CHASES. ‘‘(ii) The application of section lating to State ceiling) is amended by adding 56(d)(1)(A)(ii)(I) and section 172(b)(1)(H)(ii) in at the end the following new paragraph: (a) ALLOWANCE OF CREDIT.—Subpart A of part IV of subchapter A of chapter 1 of the connection with net operating losses relating ‘‘(5) INCREASE AND SET ASIDE FOR HOUSING Internal Revenue Code of 1986 (relating to to taxable years ending during 2008 and 2009. BONDS FOR 2008.— nonrefundable personal credits) is amended ‘‘(B) ELIGIBLE TAXPAYER.—For purposes of ‘‘(A) INCREASE FOR 2008.—In the case of cal- each of the provisions described in subpara- endar year 2008, the State ceiling for each by inserting after section 25D the following graph (A), a taxpayer shall only be treated as State shall be increased by an amount equal new section: an eligible taxpayer with respect to the pro- to $10,000,000,000 multiplied by a fraction— ‘‘SEC. 25E. CREDIT FOR CERTAIN HOME PUR- vision with respect to which the taxpayer ‘‘(i) the numerator of which is the popu- CHASES. made the election under subparagraph (A). lation of such State, and ‘‘(a) ALLOWANCE OF CREDIT.— ‘‘(C) ELECTION IRREVOCABLE.—An election ‘‘(ii) the denominator of which is the total ‘‘(1) IN GENERAL.—In the case of an indi- under subparagraph (A) may not be revoked population of all States. vidual who is a purchaser of a qualified prin- except with the consent of the Secretary.’’. ‘‘(B) SET ASIDE.— cipal residence during the taxable year, (B) EFFECTIVE DATE.—The amendments ‘‘(i) IN GENERAL.—Any amount of the State there shall be allowed as a credit against the made by this paragraph shall take effect as ceiling for any State which is attributable to tax imposed by this chapter an amount equal if included in section 103 of the Economic an increase under this paragraph shall be al- to so much of the purchase price of the resi- Stimulus Act of 2008. located solely for one or more qualified pur- dence as does not exceed $7,000. (2) ELECTION FOR INCREASED EXPENSING.— poses. ‘‘(2) ALLOCATION OF CREDIT AMOUNT.—The (A) IN GENERAL.—Paragraph (7) of section ‘‘(ii) QUALIFIED PURPOSE.—For purposes of amount of the credit allowed under para- 179(b) of the Internal Revenue Code of 1986 this paragraph, the term ‘qualified purpose’ graph (1) shall be equally divided among the (relating to limitations), as added by the means— 2 taxable years beginning with the taxable Economic Stimulus Act of 2008, is amended ‘‘(I) the issuance of exempt facility bonds year in which the purchase of the qualified to read as follows: used solely to provide qualified residential principal residence is made. ‘‘(7) SPECIAL RULE FOR ELIGIBLE TAXPAYERS rental projects, or ‘‘(b) LIMITATIONS.— IN 2008.—In the case of any taxable year of ‘‘(II) a qualified mortgage issue (deter- ‘‘(1) DATE OF PURCHASE.—The credit al- any eligible taxpayer (within the meaning of mined by substituting ‘12-month period’ for lowed under subsection (a) shall be allowed section 168(k)(4)) beginning in 2008— ‘42-month period’ each place it appears in only with respect to purchases made— ‘‘(A) the dollar limitation under paragraph section 143(a)(2)(D)(i)).’’. ‘‘(A) after the date of the enactment of this (1) shall be $250,000, (2) CARRYFORWARD OF UNUSED LIMITA- section, and ‘‘(B) the dollar limitation under paragraph TIONS.—Subsection (f) of section 146 of such ‘‘(B) before the date that is 12 months after (2) shall be $800,000, and Code (relating to elective carryforward of such date. ‘‘(C) the amounts described in subpara- unused limitation for specified purpose) is ‘‘(2) LIMITATION BASED ON AMOUNT OF TAX.— graphs (A) and (B) shall not be adjusted amended by adding at the end the following In the case of a taxable year to which section under paragraph (5).’’. new paragraph: 26(a)(2) does not apply, the credit allowed (B) EFFECTIVE DATE.—The amendment ‘‘(6) SPECIAL RULES FOR INCREASED VOLUME under subsection (a) for any taxable year made by this paragraph shall take effect as CAP UNDER SUBSECTION (d)(5).— shall not exceed the excess of—

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00128 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.079 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2495 ‘‘(A) the sum of the regular tax liability qualified principal residence, the amount of so much of the amount of the eligible State (as defined in section 26(b)) plus the tax im- the credit allowed under subsection (a) shall and local real property taxes paid or accrued posed by section 55, over be allocated among such individuals in such by the taxpayer during the taxable year ‘‘(B) the sum of the credits allowable under manner as the Secretary may prescribe, ex- which do not exceed $500 ($1,000 in the case of this subpart (other than this section and sec- cept that the total amount of the credits al- a joint return). tion 23) for the taxable year. lowed to all such individuals shall not exceed ‘‘(B) ELIGIBLE STATE AND LOCAL REAL PROP- ‘‘(3) ONE-TIME ONLY.— $7,000. ERTY TAXES.—For purposes of subparagraph ‘‘(A) IN GENERAL.—If a credit is allowed ‘‘(2) PURCHASE; PURCHASE PRICE.—Rules (A), the term ‘eligible State and local real under this section in the case of any indi- similar to the rules of paragraphs (2) and (3) property taxes’ means State and local real vidual (and such individual’s spouse, if mar- of section 1400C(e) (as in effect on the date of property taxes (within the meaning of sec- ried) with respect to the purchase of any the enactment of this section) shall apply for tion 164), but only if the rate of tax for all qualified principal residence, no credit shall purposes of this section. residential real property taxes in the juris- be allowed under this section in any taxable ‘‘(3) REPORTING REQUIREMENT.—Rules simi- diction has not been increased at any time year with respect to the purchase of any lar to the rules of section 1400C(f) (as so in after April 2, 2008, and before January 1, other qualified principal residence by such effect) shall apply for purposes of this sec- 2009.’’. individual or a spouse of such individual. tion. (c) EFFECTIVE DATE.—The amendments ‘‘(B) JOINT PURCHASE.—In the case of a pur- ‘‘(g) BASIS ADJUSTMENT.—For purposes of made by this section shall apply to taxable chase of a qualified principal residence by 2 this subtitle, if a credit is allowed under this years beginning after December 31, 2007. or more unmarried individuals or by 2 mar- section with respect to the purchase of any TITLE VII—EMERGENCY DESIGNATION ried individuals filing separately, no credit residence, the basis of such residence shall be SEC. 701. EMERGENCY DESIGNATION. shall be allowed under this section if a credit reduced by the amount of the credit so al- For purposes of Senate enforcement, all under this section has been allowed to any of lowed.’’. provisions of this Act are designated as such individuals in any taxable year with re- (b) CONFORMING AMENDMENTS.— emergency requirements and necessary to spect to the purchase of any other qualified (1) Section 24(b)(3)(B) of the Internal Rev- meet emergency needs pursuant to section principal residence. enue Code of 1986 is amended by striking 204 of S. Con. Res. 21 (110th Congress), the ‘‘(c) QUALIFIED PRINCIPAL RESIDENCE.—For ‘‘and 25B’’ and inserting ‘‘, 25B, and 25E’’. purposes of this section— (2) Section 25(e)(1)(C)(ii) of such Code is concurrent resolution on the budget for fiscal year 2008. ‘‘(1) IN GENERAL.—The term ‘qualified prin- amended by inserting ‘‘25E,’’ after ‘‘25D,’’. cipal residence’ means an eligible single- (3) Section 25B(g)(2) of such Code is amend- family residence that is purchased to be the ed by striking ‘‘section 23’’ and inserting SA 4388. Mr. DURBIN (for himself, principal residence of the purchaser. ‘‘sections 23 and 25E’’. Mr. REID, Mr. OBAMA, Mrs. CLINTON, ‘‘(2) ELIGIBLE SINGLE-FAMILY RESIDENCE.— (4) Section 25D(c)(2) of such Code is amend- Mr. WHITEHOUSE, Mr. SCHUMER, Mrs. ‘‘(A) IN GENERAL.—The term ‘eligible sin- ed by striking ‘‘and 25B’’ and inserting ‘‘25B, FEINSTEIN, Mr. MENENDEZ, Mrs. BOXER, gle-family residence’ means a single-family and 25E’’. Mr. BROWN, Mr. KENNEDY, Mr. HARKIN, structure that is a residence— (5) Section 26(a)(1) of such Code is amended Mr. KERRY, Mr. REED, and Mr. BIDEN) ‘‘(i) upon which foreclosure has been filed by striking ‘‘and 25B’’ and inserting ‘‘25B, submitted an amendment intended to pursuant to the laws of the State in which and 25E’’. be proposed to amendment SA 4387 sub- the residence is located, and (6) Section 904(i) of such Code is amended ‘‘(ii) which— by striking ‘‘and 25B’’ and inserting ‘‘25B, mitted by Mr. DODD (for himself and ‘‘(I) is a new previously unoccupied resi- and 25E’’. Mr. SHELBY) to the bill H.R. 3221, mov- dence for which a building permit was issued (7) Subsection (a) of section 1016 of such ing the United States toward greater and construction began on or before Sep- Code is amended by striking ‘‘and’’ at the energy independence and security, de- tember 1, 2007, or end of paragraph (36), by striking the period veloping innovative new technologies, ‘‘(II) was occupied as a principal residence at the end of paragraph (37) and inserting ‘‘, reducing carbon emissions, creating by the mortgagor for at least 1 year prior to and’’, and by adding at the end the following green jobs, protecting consumers, in- the foreclosure filing. new paragraph: creasing clean renewable energy pro- ‘‘(B) CERTIFICATION.—In the case of an eli- ‘‘(38) to the extent provided in section gible single-family residence described in 25E(g).’’. duction, and modernizing our energy subparagraph (A)(ii)(I), no credit shall be al- (8) Section 1400C(d)(2) of such Code is infrastructure, and to amend the Inter- lowed under this section unless the pur- amended by striking ‘‘and 25D’’ and inserting nal Revenue Code of 1986 to provide tax chaser submits a certification by the seller ‘‘25D, and 25E’’. incentives for the production of renew- of such residence that such residence meets (c) CLERICAL AMENDMENT.—The table of able energy and energy conservation; the requirements of such subparagraph. sections for subpart A of part IV of sub- which was ordered to lie on the table; ‘‘(3) PRINCIPAL RESIDENCE.—The term ‘prin- chapter A of chapter 1 of the Internal Rev- as follows: cipal residence’ has the same meaning as enue Code of 1986 is amended by inserting At the end, add the following: when used in section 121. after the item relating to section 25D the fol- ‘‘(d) DENIAL OF DOUBLE BENEFIT.—No credit lowing new item: TITLE ll—BANKRUPTCY shall be allowed under this section for any ‘‘Sec. 25E. Credit for certain home pur- SEC. ll1. SHORT TITLE. purchase for which a credit is allowed under chases.’’. This title may be cited as the ‘‘Helping section 1400C. (d) EFFECTIVE DATE.—The amendments Families Save Their Homes in Bankruptcy ‘‘(e) RECAPTURE IN THE CASE OF CERTAIN made by this section shall apply to pur- Act of 2008’’. DISPOSITIONS.—In the event that a tax- chases in taxable years ending after the date Subtitle A—Minimizing Foreclosures payer— of the enactment of this Act. SEC. ll21. DEFINITIONS. ‘‘(1) disposes of the qualified principal resi- (e) APPLICATION OF EGTRRA SUNSET.—The Section 101 of title 11, United States Code, dence with respect to which a credit is al- amendment made by subsection (b)(1) shall is amended— lowed under subsection (a), or be subject to title IX of the Economic ‘‘(2) fails to occupy such residence as the Growth and Tax Relief Reconciliation Act of (1) by redesignating paragraphs (40A) and taxpayer’s principal residence, 2001 in the same manner as the provisions of (40B) as paragraphs (40B) and (40C), respec- at any time within 24 months after the date such Act to which such amendment relates. tively; (2) by inserting after paragraph (40) the fol- on which the taxpayer purchased such resi- SEC. 604. ADDITIONAL STANDARD DEDUCTION dence, then the remaining portion of the FOR REAL PROPERTY TAXES FOR lowing: credit allowed under subsection (a) shall be NONITEMIZERS. ‘‘(40A) The term ‘nontraditional mortgage’ disallowed in the taxable year during which (a) IN GENERAL.—Section 63(c)(1) of the In- means a security interest in the debtor’s such disposition occurred or in which the ternal Revenue Code of 1986 (defining stand- principal residence that secures a debt for a taxpayer failed to occupy the residence as a ard deduction) is amended by striking ‘‘and’’ loan that at any period during the term of principal residence, and in any subsequent at the end of subparagraph (A), by striking the loan provides for the deferral of payment taxable year in which the remaining portion the period at the end of subparagraph (B) and of principal or interest through permitting of the credit would, but for this subsection, inserting ‘‘, and’’, and by adding at the end periodic payments that do not cover the full have been allowed. the following new subparagraph: amount of interest due or that cover only ‘‘(f) SPECIAL RULES.— ‘‘(C) in the case of any taxable year begin- the interest due, except that such term ex- ‘‘(1) JOINT PURCHASE.— ning in 2008, the real property tax deduc- cludes— ‘‘(A) MARRIED INDIVIDUALS FILING SEPA- tion.’’. ‘‘(A) a loan that at any period during the RATELY.—In the case of 2 married individuals (b) DEFINITION.—Section 63(c) of the Inter- term of the loan provides for the deferral of filing separately, subsection (a) shall be ap- nal Revenue Code of 1986 is amended by add- payment of principal through permitting plied to each such individual by substituting ing at the end the following new paragraph: periodic payments that cover only the inter- ‘$3,500’ for ‘$7,000’ in paragraph (1) thereof. ‘‘(8) REAL PROPERTY TAX DEDUCTION.— est due, if the creditor demonstrates that it ‘‘(B) UNMARRIED INDIVIDUALS.—If 2 or more ‘‘(A) IN GENERAL.—For purposes of para- determined in good faith at the time the individuals who are not married purchase a graph (1), the real property tax deduction is loan was consummated, after undergoing a

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00129 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.079 S03APPT1 ccoleman on PRODPC75 with SENATE S2496 CONGRESSIONAL RECORD — SENATE April 3, 2008 full underwriting process based on verified tional payments necessary to maintain pos- lation of section 524(a)(2) of this title or, if and documented information, that the debt- session of that residence), the debtor has in- the violation occurs before the date of dis- or had a reasonable ability to repay at the sufficient remaining income to retain posses- charge, of section 362(a) of this title; and full interest and principal payment amount sion of the residence by curing a default and ‘‘(5) a plan may provide for the waiver of (assuming an initial 30 year full amortiza- maintaining payments while the case is any prepayment penalty on a claim secured tion), and payments under the loan resulted pending, as provided under paragraph (5); by the principal residence of the debtor.’’. in a debt-to-income ratio of the debtor in an ‘‘(B) provide for payment of such claim— SEC. ll42. MAINTAINING DEBTORS’ LEGAL amount equal to or less than that which ‘‘(i) in an amount equal to the amount of CLAIMS. would have been permitted under guidelines the allowed secured claim; Section 554(e) of title 11, United States and directives established by the Secretary ‘‘(ii) for a period that is the longer of 30 Code, is amended by adding at the end the of Housing and Urban Development pursuant years (reduced by the period for which the following: to section 203.33 of title 24, Code of Federal loan has been outstanding) or the remaining ‘‘(e) In any action in State or Federal Regulations, for loans subject to such sec- term of such loan, beginning on the date of court with respect to a claim or defense as- tion; the order for relief under this chapter; and serted by an individual debtor in such action ‘‘(B) a home equity line of credit that is in ‘‘(iii) at a rate of interest accruing after that was not scheduled under section a subordinate lien position; and such date calculated at a fixed annual per- 521(a)(1) of this title, the trustee shall be al- ‘‘(C) a reverse mortgage.’’; centage rate, in an amount equal to the most lowed a reasonable time to request joinder or (3) by redesignating paragraphs (53B) recently published annual yield on conven- substitution as the real party in interest. If through (53D) as paragraphs (53C), (53D), tional mortgages published by the Board of the trustee does not request joinder or sub- (53E), and (53F), respectively; and Governors of the Federal Reserve System, as stitution in such action, the debtor may pro- (4) by inserting after paragraph (53A) the of the applicable time set forth in the rules ceed as the real party in interest, and no following: of the Board, plus a reasonable premium for such action shall be dismissed on the ground ‘‘(53B) The term ‘subprime mortgage’ risk; and that it is not prosecuted in the name of the means a security interest in the debtor’s ‘‘(C) if a claim has been modified to an real party in interest or on the ground that principal residence that secures a debt for a amount below the original principal of the the debtor’s claims were not properly sched- loan that has an annual percentage rate that loan pursuant to subparagraph (B)(i) and the uled in a case under this title.’’. is greater than— debtor’s principal residence is sold during SEC. ll43. RESOLVING DISPUTES. ‘‘(A) the sum of 3 percent plus the yield on the term of the plan, the holder of the claim Section 1334 of title 28, United States Code, United States Treasury securities having shall be entitled to receive, in addition to is amended by adding at the end the fol- comparable periods of maturity, if the loan the unpaid portion of the allowed secured lowing: ‘‘Notwithstanding any agreement for is secured by a first mortgage or first deed of claim, the net proceeds of the sale, or the arbitration that is subject to chapter 1 of trust; or amount of the holder’s allowed unsecured title 9, in any core proceeding under section ‘‘(B) the sum of 5 percent plus the yield on claim, whichever is less; and’’. 157(b) of this title involving an individual United States Treasury securities having (b) CONFORMING AMENDMENT.—Section debtor whose debts are primarily consumer comparable periods of maturity, if the loan 1325(a)(5) of title 11, United States Code, is debts, the court may hear and determine the is secured by a subordinate mortgage or sub- amended by inserting before ‘‘with respect’’ proceeding, and enter appropriate orders and ordinate deed of trust. the following: ‘‘except as otherwise provided judgments, in lieu of referral to arbitra- Without regard to whether such loan is sub- in section 1322(b)(11) of this title,’’. tion.’’. ject to or reportable under the Home Mort- SEC. ll23. WAIVER OF COUNSELING REQUIRE- SEC. ll44. ENACTING A HOMESTEAD FLOOR gage Disclosure Act, the difference between MENT WHEN HOMES ARE IN FORE- FOR DEBTORS OVER 55 YEARS OF the annual percentage rate of such loan and CLOSURE. AGE. the yield on United States Treasury securi- Section 109(h) of title 11, United States (a) IN GENERAL.—Section 522(b)(3) of title ties having comparable periods of maturity Code, is amended by adding at the end the 11, United States Code, is amended— shall be determined using the procedures and following: (1) in subparagraph (B), by striking ‘‘and’’ ‘‘(5) Paragraph (1) shall not apply with re- calculation methods applicable to loans that at the end; spect to a debtor who files with the court a are subject to the reporting requirements of (2) in subparagraph (C), by striking the pe- certification that a foreclosure sale of the such Act, except that such yield shall be de- riod at the end and inserting ‘‘; and’’; and debtor’s principal residence has been sched- termined as of the 15th day of the month pre- (3) by adding at the end and inserting the uled.’’. ceding the month in which a completed ap- following: plication is submitted for such loan. If such Subtitle B—Providing Other Debtor ‘‘(D) if the debtor, as of the date of the fil- loan provides for a fixed interest rate for an Protections ing of the petition, is 55 years old or older, introductory period and then resets or ad- SEC. ll41. COMBATING EXCESSIVE FEES. the debtor’s aggregate interest, not to ex- justs to a variable interest rate, the deter- Section 1322(c) of title 11, the United ceed $75,000 in value, in real property or per- mination of the annual percentage rate shall States Code, is amended— sonal property that the debtor or a depend- be based on the greater of the introductory (1) in paragraph (1), by striking ‘‘and’’ at ent of the debtor uses as a principal resi- rate and the fully indexed rate. For purposes the end; dence, or in a cooperative that owns prop- of this paragraph, the term ‘fully indexed (2) in paragraph (2), by striking the period erty that the debtor or a dependent of the rate’ means the prevailing index rate on a at the end and inserting a semicolon; and debtor uses as a principal residence.’’. residential mortgage loan at the time at (3) by adding at the end the following: (b) EXEMPTION AUTHORITY.—Section which the loan is made, plus the margin that ‘‘(3) the plan need not provide for the pay- 522(d)(1) of title 11, United States Code, is will apply after the expiration of an intro- ment of, and the debtor, the debtor’s prop- amended by inserting ‘‘or, if the debtor is 55 ductory interest rate.’’. erty, and property of the estate shall not be years of age or older, $75,000 in value,’’ before ‘‘in real property’’. SEC. ll22. SPECIAL RULES FOR MODIFICATION liable for, any fee, cost, or charge, notwith- OF LOANS SECURED BY RESI- standing section 506(b), that arises in con- SEC. ll45. DISALLOWING CLAIMS FROM VIOLA- DENCES. nection with a claim secured by the debtor’s TIONS OF CONSUMER PROTECTION LAWS. (a) IN GENERAL.—Section 1322(b) of title 11, principal residence if the event that gives United States Code, is amended— rise to such fee, cost, or charge occurs while Section 502(b) of title 11, United States (1) in paragraph (10), by striking ‘‘and’’ at the case is pending but before the discharge Code, is amended— the end; order, except to the extent that— (1) in paragraph (8), by striking ‘‘or’’ at the (2) by redesignating paragraph (11) as para- ‘‘(A) notice of such fees, costs or charges is end; graph (12); and filed with the court, and served on the debtor (2) in paragraph (9), by striking the period (3) by inserting after paragraph (10) the fol- and the trustee, before the expiration of the at the end and inserting ‘‘; or’’; and lowing: earlier of— (3) by adding at the end the following: ‘‘(11) notwithstanding paragraph (2) and ‘‘(i) 1 year after the event that gives rise to ‘‘(10) the claim is subject to any remedy for otherwise applicable nonbankruptcy law— such fee, cost, or charge occurs; or damages or rescission due to failure to com- ‘‘(A) modify an allowed secured claim for a ‘‘(ii) 60 days before the closing of the case; ply with any applicable requirement under debt incurred prior to the effective date of and the Truth in Lending Act (15 U.S.C. 1601 et this paragraph secured by a nontraditional ‘‘(B) such fees, costs, or charges are lawful, seq.), or any other provision of applicable mortgage, or a subprime mortgage, and any reasonable, and provided for in the agree- State or Federal consumer protection law lien subordinate to such claim, on the debt- ment under which such claim or security in- that was in force when the noncompliance or’s principal residence, as described in sub- terest arose; took place, notwithstanding the prior entry paragraph (B), if, after deduction from the ‘‘(4) the failure of a party to give notice de- of a foreclosure judgment.’’. debtor’s current monthly income of the ex- scribed in paragraph (3) shall be deemed a penses permitted for debtors described in waiver of any claim for fees, costs, or SA 4389. Ms. LANDRIEU (for herself, section 1325(b)(3) of this title (other than charges described in paragraph (3) for all Mr. COCHRAN, Mr. VITTER, and Mr. amounts contractually due to creditors hold- purposes, and any attempt to collect such WICKER) submitted an amendment in- ing such allowed secured claims and addi- fees, costs, or charges shall constitute a vio- tended to be proposed by her to the bill

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00130 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.086 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2497 H.R. 3221, moving the United States to- (b) AMENDMENT OF 1986 CODE.—Except as which is clearly identified pursuant to sec- ward greater energy independence and otherwise expressly provided, whenever in tion 1221(a)(7), including gain from the sale security, developing innovative new this title an amendment or repeal is ex- or disposition of such a transaction, shall technologies, reducing carbon emis- pressed in terms of an amendment to, or re- not constitute gross income under para- peal of, a section or other provision, the ref- graphs (2) and (3) to the extent that the sions, creating green jobs, protecting erence shall be considered to be made to a transaction hedges any indebtedness in- consumers, increasing clean renewable section or other provision of the Internal curred or to be incurred by the trust to ac- energy production, and modernizing Revenue Code of 1986. quire or carry real estate assets, and our energy infrastructure, and to Subtitle A—Foreign Currency and Other ‘‘(ii) any income of a real estate invest- amend the Internal Revenue Code of Qualified Activities ment trust from a transaction entered into 1986 to provide tax incentives for the by the trust primarily to manage risk of cur- SEC. 801. REVISIONS TO REIT INCOME TESTS. rency fluctuations with respect to any item production of renewable energy and en- (a) ADDITION OF PERMISSIBLE INCOME CAT- ergy conservation; which was ordered described in paragraph (2) or (3), including EGORIES.—Section 856(c) (relating to limita- gain from the termination of such a trans- to lie on the table; as follows: tions) is amended— action, shall not constitute gross income At the end add the following: (1) by striking ‘‘and’’ at the end of para- under paragraphs (2) and (3), but only if such TITLE—HURRICANE-RELATED CASUALTY graph (2)(G) and by inserting after paragraph transaction is clearly identified as such be- LOSSES (2)(H) the following new subparagraphs: fore the close of the day on which it was ac- ‘‘(I) passive foreign exchange gains; and l quired, originated, or entered into (or such SEC. 01. USE OF AMENDED INCOME TAX RE- ‘‘(J) any other item of income or gain as TURNS TO TAKE INTO ACCOUNT RE- other time as the Secretary may pre- CEIPT OF CERTAIN HURRICANE-RE- determined by the Secretary;’’, and scribe).’’. LATED CASUALTY LOSS GRANTS BY (2) by striking ‘‘and’’ at the end of para- (d) AUTHORITY TO EXCLUDE ITEMS OF IN- DISALLOWING PREVIOUSLY TAKEN graphs (3)(H) and (3)(I) and by inserting after COME FROM REIT INCOME TESTS.—Section CASUALTY LOSS DEDUCTIONS. paragraph (3)(I) the following new subpara- 856(c)(5) is amended by adding at the end the Notwithstanding any other provision of graphs: following new subparagraph: the Internal Revenue Code of 1986, if a tax- ‘‘(J) real estate foreign exchange gains; ‘‘(H) SECRETARIAL AUTHORITY TO EXCLUDE payer claims a deduction for any taxable and OTHER ITEMS OF INCOME.—The Secretary is year with respect to a casualty loss to a per- ‘‘(K) any other item of income or gain as authorized to determine whether any item of sonal residence (within the meaning of sec- determined by the Secretary; and’’. income or gain which does not otherwise tion 121 of such Code) resulting from Hurri- (b) RULES REGARDING FOREIGN CURRENCY qualify under paragraph (2) or (3) may be cane Katrina or Hurricane Rita and in a sub- TRANSACTIONS.—Section 856 (defining real es- considered as not constituting gross income sequent taxable year receives a grant under tate investment trust) is amended by adding solely for purposes of this part.’’. Public Law 109-148, 109-234, or 110-116 as reim- at the end the following new subsection: SEC. 802. REVISIONS TO REIT ASSET TESTS. bursement for such loss from the State of ‘‘(n) RULES REGARDING FOREIGN CURRENCY (a) CLARIFICATION OF VALUATION TEST.— Louisiana or the State of Mississippi, such TRANSACTIONS.—With respect to any taxable The first sentence in the matter following taxpayer may elect to file an amended in- year— section 856(c)(4)(B)(iii)(III) is amended by income tax return for the taxable year in ‘‘(1) REAL ESTATE FOREIGN EXCHANGE serting ‘‘(including a discrepancy caused which such deduction was allowed and dis- GAINS.—For purposes of subsection (c)(3)(J), solely by the change in the foreign currency allow such deduction. If elected, such amend- the term ‘real estate foreign exchange gains’ exchange rate used to value a foreign asset)’’ ed return must be filed not later than the means— after ‘‘such requirements’’. due date for filing the tax return for the tax- ‘‘(A) foreign currency gains (as defined in (b) CLARIFICATION OF PERMISSIBLE ASSET able year in which the taxpayer receives section 988(b)(1)) which are attributable to— CATEGORY.—Section 856(c)(5), as amended by such reimbursement or the date that is 4 ‘‘(i) any item described in subsection (c)(3) this Act, is amended by adding at the end months after the date of the enactment of (other than in subparagraph (J) thereof), the following new subparagraph: this Act, whichever is later. Any increase in ‘‘(ii) the acquisition or ownership of obliga- ‘‘(I) CASH.—The term ‘cash’ includes for- Federal income tax resulting from such dis- tions secured by mortgages on real property eign currency if the real estate investment allowance shall not be subject to any penalty or on interests in real property (other than trust or its qualified business unit (as de- or interest under such Code if such amended foreign currency gains attributable to any fined in section 989) uses such foreign cur- return is so filed. item described in clause (i)), or rency as its functional currency (as defined TITLE—GO ZONE PROPERTY ‘‘(iii) becoming or being the obligor under in section 985(b)).’’. SEC. l01. WAIVER OF DEADLINE ON CONSTRUC- obligations secured by mortgages on real SEC. 803. CONFORMING FOREIGN CURRENCY RE- TION OF GO ZONE PROPERTY ELIGI- property or on interests in real property VISIONS. BLE FOR BONUS DEPRECIATION. (other than foreign currency gains attrib- (a) NET INCOME FROM FORECLOSURE PROP- (a) IN GENERAL.—Subparagraph (B) of sec- utable to any item described in clause (i)), ERTY.—Clause (i) of section 857(b)(4)(B) is tion 1400N(d)(3) of the Internal Revenue Code ‘‘(B) gains described in section 987 attrib- amended to read as follows: of 1986 is amended to read as follows: utable to a qualified business unit (as defined ‘‘(i) gain (including any foreign currency ‘‘(B) without regard to ‘and before January by section 989) of the real estate investment gain, as defined in section 988(b)(1)) from the 1, 2009’ in clause (i) thereof,’’. trust, but only if such qualified business unit sale or other disposition of foreclosure prop- (b) EFFECTIVE DATE.—The amendment meets the requirements under— erty described in section 1221(a)(1) and the made by this section shall apply to property ‘‘(i) subsection (c)(3) (without regard to gross income for the taxable year derived placed in service after December 31, 2007. subparagraph (J) thereof) for the taxable from foreclosure property (as defined in sec- year, and tion 856(e)), but only to the extent such gross SA 4390. Mr. HATCH (for himself, Mr. ‘‘(ii) subsection (c)(4)(A) at the close of income is not described in (or, in the case of SALAZAR, and Mr. KERRY) submitted an each quarter that the real estate investment foreign currency gain, not attributable to amendment intended to be proposed by trust has directly or indirectly held the gross income described in) section 856(c)(3) him to the bill H.R. 3221, moving the qualified business unit, and other than subparagraph (F) thereof, over’’. (b) NET INCOME FROM PROHIBITED TRANS- United States toward greater energy ‘‘(C) any other foreign currency gains as determined by the Secretary. ACTIONS.—Clause (i) of section 857(b)(6)(B) is independence and security, developing amended to read as follows: innovative new technologies, reducing ‘‘(2) PASSIVE FOREIGN EXCHANGE GAINS.— For purposes of subsection (c)(2)(I), the term ‘‘(i) the term ‘net income derived from pro- carbon emissions, creating green jobs, ‘passive foreign exchange gains’ means— hibited transactions’ means the excess of the protecting consumers, increasing clean ‘‘(A) real estate foreign exchange gains, gain (including any foreign currency gain, as renewable energy production, and mod- ‘‘(B) foreign currency gains (as defined in defined in section 988(b)(1)) from prohibited ernizing our energy infrastructure, and section 988(b)(1)) which are not described in transactions over the deductions (including to amend the Internal Revenue Code of subparagraph (A) and which are attributable any foreign currency loss, as defined in section 988(b)(2)) allowed by this chapter which 1986 to provide tax incentives for the to any item described in subsection (c)(2) (other than in subparagraph (I) thereof), and are directly connected with prohibited trans- production of renewable energy and en- actions;’’. ergy conservation; which was ordered ‘‘(C) any other foreign currency gains as determined by the Secretary.’’. Subtitle B—Taxable Reit Subsidiaries to lie on the table; as follows: (c) ADDITION TO REIT HEDGING RULE.—Sub- SEC. 811. CONFORMING TAXABLE REIT SUB- At the end add the following: paragraph (G) of section 856(c)(5) is amended SIDIARY ASSET TEST. TITLE VIII—REIT INVESTMENT to read as follows: Section 856(c)(4)(B)(ii) is amended by strik- DIVERSIFICATION AND EMPOWERMENT ‘‘(G) TREATMENT OF CERTAIN HEDGING IN- ing ‘‘20 percent’’ and inserting ‘‘25 percent’’. SEC. 800. SHORT TITLE; AMENDMENT OF 1986 STRUMENTS.—Except to the extent as deter- Subtitle C—Dealer Sales CODE. mined by the Secretary— SEC. 821. HOLDING PERIOD UNDER SAFE HAR- (a) SHORT TITLE.—This title may be cited ‘‘(i) any income of a real estate investment BOR. as the ‘‘REIT Investment Diversification and trust from a hedging transaction (as defined Section 857(b)(6) (relating to income from Empowerment Act of 2008’’. in clause (ii) or (iii) of section 1221(b)(2)(A)) prohibited transactions) is amended—

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00131 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.080 S03APPT1 ccoleman on PRODPC75 with SENATE S2498 CONGRESSIONAL RECORD — SENATE April 3, 2008 (1) by striking ‘‘4 years’’ in subparagraphs any person who is not a related person with tecting consumers, increasing clean re- (C)(i), (C)(iv), and (D)(i) and inserting ‘‘2 respect to the real estate investment trust newable energy production, and mod- years’’, or the taxable REIT subsidiary. ernizing our energy infrastructure, and (2) by striking ‘‘4-year period’’ in subpara- ‘‘(B) SPECIAL RULES.—Solely for purposes to amend the Internal Revenue Code of graphs (C)(ii), (D)(ii), and (D)(iii) and insert- of this paragraph and paragraph (8)(B), a per- ing ‘‘2-year period’’, and son shall not fail to be treated as an inde- 1986 to provide tax incentives for the (3) by striking ‘‘real estate asset’’and all pendent contractor with respect to any production of renewable energy and en- that follows through ‘‘if’’ in the matter pre- qualified lodging facility or qualified health ergy conservation; which was ordered ceding clause (i) of subparagraphs (C) and care property (as so defined) by reason of the to lie on the table; as follows: (D), respectively, and inserting ‘‘real estate following: At the end add the following: asset (as defined in section 856(c)(5)(B)) and ‘‘(i) The taxable REIT subsidiary bears the TITLE—GO ZONE PROPERTY which is described in section 1221(a)(1) if’’. expenses for the operation of such qualified l SEC. 822. DETERMINING VALUE OF SALES UNDER lodging facility or qualified health care prop- SEC. 01. WAIVER OF DEADLINE ON CONSTRUC- SAFE HARBOR. erty pursuant to the management agreement TION OF GO ZONE PROPERTY ELIGI- BLE FOR BONUS DEPRECIATION. Section 857(b)(6) is amended— or other similar service contract. (a) IN GENERAL.—Subparagraph (B) of sec- (1) by striking the semicolon at the end of ‘‘(ii) The taxable REIT subsidiary receives tion 1400N(d)(3) of the Internal Revenue Code subparagraph (C)(iii) and inserting ‘‘, or (III) the revenues from the operation of such of 1986 is amended to read as follows: the fair market value of property (other than qualified lodging facility or qualified health ‘‘(B) without regard to ‘and before January sales of foreclosure property or sales to care property, net of expenses for such oper- 1, 2009’ in clause (i) thereof,’’. which section 1033 applies) sold during the ation and fees payable to the operator pursu- (b) EFFECTIVE DATE.—The amendment taxable year does not exceed 10 percent of ant to such agreement or contract. made by this section shall apply to property the fair market value of all of the assets of ‘‘(iii) The real estate investment trust re- placed in service after December 31, 2007. the trust as of the beginning of the taxable ceives income from such person with respect year;’’, and to another property that is attributable to a (2) by adding ‘‘or’’ at the end of subclause lease of such other property to such person SA 4392. Mr. SPECTER submitted an (II) of subparagraph (D)(iv) and by adding at that was in effect as of the later of— amendment intended to be proposed by the end of such subparagraph the following ‘‘(I) January 1, 1999, or him to the bill H.R. 3221, moving the new subclause: ‘‘(II) the earliest date that any taxable United States toward greater energy ‘‘(III) the fair market value of property REIT subsidiary of such trust entered into a independence and security, developing (other than sales of foreclosure property or management agreement or other similar innovative new technologies, reducing sales to which section 1033 applies) sold dur- service contract with such person with re- carbon emissions, creating green jobs, ing the taxable year does not exceed 10 per- spect to such qualified lodging facility or protecting consumers, increasing clean cent of the fair market value of all of the as- qualified health care property.’’. renewable energy production, and mod- sets of the trust as of the beginning of the (c) TAXABLE REIT SUBSIDIARIES.—The last taxable year,’’. sentence of section 856(l)(3) is amended— ernizing our energy infrastructure, and Subtitle D—Health Care Reits (1) by inserting ‘‘or a health care facility’’ to amend the Internal Revenue Code of after ‘‘a lodging facility’’, and 1986 to provide tax incentives for the SEC. 831. CONFORMITY FOR HEALTH CARE FA- CILITIES. (2) by inserting ‘‘or health care facility’’ production of renewable energy and en- (a) RELATED PARTY RENTALS.—Subpara- after ‘‘such lodging facility’’. ergy conservation; which was ordered graph (B) of section 856(d)(8) (relating to spe- Subtitle E—Effective Dates and Sunset to lie on the table; as follows: cial rule for taxable REIT subsidiaries) is SEC. 841 EFFECTIVE DATES AND SUNSET. At the appropriate place, insert the fol- amended to read as follows: (a) IN GENERAL.—Except as otherwise pro- lowing: ‘‘(B) EXCEPTION FOR CERTAIN LODGING FA- vided in this section, the amendments made TITLE—BANKRUPTCY PROVISIONS CILITIES AND HEALTH CARE PROPERTY.—The by this title shall apply to taxable years be- requirements of this subparagraph are met ginning after the date of the enactment of SEC. ll1. SHORT TITLE. with respect to an interest in real property this Act. This title may be cited as the ‘‘Home Own- which is a qualified lodging facility (as de- (b) REIT INCOME TESTS.— ers’ Mortgage and Equity Savings Act’’ or fined in paragraph (9)(D)) or a qualified (1) The amendment made by section 801(a) the ‘‘HOMES Act’’. health care property (as defined in sub- and (b) shall apply to gains and items of in- SEC. ll2. AUTHORITY TO MODIFY CERTAIN section (e)(6)(D)(i)) leased by the trust to a come recognized after the date of the enact- MORTGAGES. taxable REIT subsidiary of the trust if the ment of this Act. Section 1322(b) of title 11, United States property is operated on behalf of such sub- (2) The amendment made by section 801(c) Code, is amended— sidiary by a person who is an eligible inde- shall apply to transactions entered into after (1) in paragraph (2), by inserting ‘‘except as pendent contractor. For purposes of this sec- the date of the enactment of this Act. provided in paragraph (11),’’ after ‘‘resi- tion, a taxable REIT subsidiary is not con- (3) The amendment made by section 801(d) dence,’’; sidered to be operating or managing a quali- shall apply after the date of the enactment (2) by redesignating paragraph (11) as para- fied health care property or qualified lodging of this Act. graph (12); facility solely because it— (c) CONFORMING FOREIGN CURRENCY REVI- (3) in paragraph (10), by striking ‘‘and’’ at ‘‘(i) directly or indirectly possesses a li- SIONS.— the end; and cense, permit, or similar instrument ena- (1) The amendment made by section 803(a) (4) by inserting after paragraph (10) the fol- bling it to do so, or shall apply to gains recognized after the date lowing: ‘‘(ii) employs individuals working at such of the enactment of this Act. ‘‘(11) with respect to a claim secured by a property or facility located outside the (2) The amendment made by section 803(b) security interest in real property initiated United States, but only if an eligible inde- shall apply to gains and deductions recog- before September 26, 2007, that is the debt- pendent contractor is responsible for the nized after the date of the enactment of this or’s principal residence, if the current daily supervision and direction of such indi- Act. monthly income of the debtor and the debt- viduals on behalf of the taxable REIT sub- (d) DEALER SALES.—The amendments made or’s spouse combined, when multiplied by 12, sidiary pursuant to a management agree- by subtitle C shall apply to sales made after is less than, in the case of a debtor in a ment or similar service contract.’’. the date of the enactment of this Act. household of 1 person, 150 percent of the me- (b) ELIGIBLE INDEPENDENT CONTRACTOR.— (e) SUNSET.—All amendments made by this dian family income of the applicable State Subparagraphs (A) and (B) of section 856(d)(9) title shall not apply to taxable years begin- for 1 earner, in the case of a debtor in a (relating to eligible independent contractor) ning after the date which is 5 years after the household of 2, 3, or 4 individuals, the high- are amended to read as follows: date of the enactment of this Act. The Inter- est median family income of the applicable ‘‘(A) IN GENERAL.—The term ‘eligible inde- nal Revenue Code of 1986 shall be applied and State for a family of the same number or pendent contractor’ means, with respect to administered to taxable years described in fewer individuals, or in the case of a debtor any qualified lodging facility or qualified the preceding sentence as if the amendments in a household exceeding 4 individuals, the health care property (as defined in sub- so described had never been enacted. highest median family income of the applica- section (e)(6)(D)(i)), any independent con- ble State for a family of 4 or fewer individ- tractor if, at the time such contractor enters SA 4391. Mr. WICKER (for himself uals, plus $525 per month for each individual into a management agreement or other simi- and Mr. COCHRAN) submitted an amend- in excess of 4— lar service contract with the taxable REIT ment intended to be proposed by him ‘‘(A) modify the rights of any holder of subsidiary to operate such qualified lodging to the bill H.R. 3221, moving the United such claim by lowering the principal amount facility or qualified health care property, of the loan to the fair market value of the such contractor (or any related person) is ac- States toward greater energy independ- real property securing the loan at the time tively engaged in the trade or business of op- ence and security, developing innova- of submission of the plan, to the extent that erating qualified lodging facilities or quali- tive new technologies, reducing carbon such fair market value is less than the prin- fied health care properties, respectively, for emissions, creating green jobs, pro- cipal amount outstanding on the loan, if

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such action is agreed to in writing by the (b) TABLE OF CONTENTS.—The table of con- (i) means an individual who— debtor and the holder of the claim; tents for this title is as follows: (I) takes a residential mortgage loan appli- ‘‘(B) waive any otherwise applicable early Sec. 701. Short title; table of contents. cation; repayment or prepayment penalties; and Sec. 702. Purposes and methods for estab- (II) assists a consumer in obtaining or ap- ‘‘(C) in any case in which the applicable lishing a mortgage licensing plying to obtain a residential mortgage loan; rate of interest is adjustable under the mort- system and registry. or gage contract, modify the rights of any hold- Sec. 703. Definitions. (III) offers or negotiates terms of a residen- er of such claim, by prohibiting or delaying Sec. 704. License or registration required. tial mortgage loan, for direct or indirect adjustments to the rate of interest applica- Sec. 705. State license and registration ap- compensation or gain, or in the expectation ble to the debt on and after the date of filing plication and issuance. of direct or indirect compensation or gain; of the plan or voiding any such adjustments Sec. 706. Standards for State license re- (ii) includes any individual who represents that occurred during the 2-year period pre- newal. to the public, through advertising or other ceding that date of filing; and’’. Sec. 707. System of registration administra- means of communicating or providing infor- SEC. ll3. TREATMENT OF CERTAIN INTEREST tion by Federal banking agen- mation (including the use of business cards, AND FEES. cies. stationery, brochures, signs, rate lists, or Section 548(a) of title 11, United States Sec. 708. Secretary of Housing and Urban other promotional items), that such indi- Code, is amended by adding at the end the Development backup authority vidual can or will provide or perform any of following: to establish a loan originator the activities described in clause (i); ‘‘(3) For purposes of chapter 13, where the licensing system. (iii) does not include any individual who is court finds there was a substantial failure to Sec. 709. Backup authority to establish a na- not otherwise described in clause (i) or (ii) disclose material terms regarding interest, tionwide mortgage licensing and who performs purely administrative or late fees, or other fees related to a claim se- and registry system. clerical tasks on behalf of a person who is de- cured by a security interest in the debtor’s Sec. 710. Fees. scribed in any such clause; and principal residence, the court may consider Sec. 711. Background checks of loan origina- (iv) does not include a person or entity such interest, late fees, or other fees to be a tors. that only performs real estate brokerage ac- transfer covered under paragraph (1)(B).’’. Sec. 712. Confidentiality of information. tivities and is licensed or registered in accordance with applicable State law, unless ll Sec. 713. Liability provisions. SEC. 4. DELAY OF COUNSELING REQUIRE- the person or entity is compensated by a MENT WHEN HOUSES ARE IN FORE- Sec. 714. Enforcement under HUD backup li- CLOSURE. censing system. lender, a mortgage broker, or other loan Section 109(h) of title 11, United States Sec. 715. Preemption of State law. originator or by any agent of such lender, Code, is amended by adding at the end the Sec. 716. Reports and recommendations to mortgage broker, or other loan originator. (B) OTHER DEFINITIONS RELATING TO LOAN following: Congress. ORIGINATOR.—For purposes of this sub- ‘‘(5) The requirements of paragraph (1) may Sec. 717. Study and reports on defaults and section, an individual ‘‘assists a consumer in be delayed until after the date of filing, with foreclosures. respect to a debtor who submits to the court obtaining or applying to obtain a residential SEC. 702. PURPOSES AND METHODS FOR ESTAB- mortgage loan’’ by, among other things, ad- a certification that the holder of a claim se- LISHING A MORTGAGE LICENSING vising on loan terms (including rates, fees, cured by the debtor’s principal residence has SYSTEM AND REGISTRY. other costs), preparing loan packages, or col- initiated a judicial or nonjudicial foreclosure In order to increase uniformity, reduce lecting information on behalf of the con- on the debtor’s principal residence.’’. regulatory burden, enhance consumer pro- sumer with regard to a residential mortgage tection, and reduce fraud, the States, SEC. ll5. STUDY AND REPORT. loan. through the Conference of State Bank Super- (a) STUDY.—The Comptroller General of (C) ADMINISTRATIVE OR CLERICAL TASKS.— visors and the American Association of Resi- the United States shall conduct a study to The term ‘‘administrative or clerical tasks’’ dential Mortgage Regulators, are hereby en- determine the impact of allowing bank- means the receipt, collection, and distribu- ruptcy judges to restructure principal resi- couraged to establish a Nationwide Mortgage tion of information common for the proc- dence mortgages on the secondary market Licensing System and Registry for the resi- essing or underwriting of a loan in the mort- for mortgages. dential mortgage industry that accomplishes gage industry and communication with a (b) REPORT TO CONGRESS.—Not later than all of the following objectives: consumer to obtain information necessary 180 days after the date of enactment of this (1) Provides uniform license applications for the processing or underwriting of a resi- Act, the Comptroller General shall submit a and reporting requirements for State-li- dential mortgage loan. report to Congress on the results of the censed loan originators. (D) REAL ESTATE BROKERAGE ACTIVITY DE- study required under subsection (a). (2) Provides a comprehensive licensing and FINED.—The term ‘‘real estate brokerage ac- SEC. ll6. SUNSET. supervisory database. tivity’’ means any activity that involves of- This title and the amendments made by (3) Aggregates and improves the flow of in- fering or providing real estate brokerage this title shall apply with respect to filings formation to and between regulators. services to the public, including— under chapter 13 of title 11, United States (4) Provides increased accountability and (i) acting as a real estate agent or real es- Code, occurring during the 7-year period fol- tracking of loan originators. tate broker for a buyer, seller, lessor, or les- lowing the date of enactment of this Act. (5) Streamlines the licensing process and see of real property; reduces the regulatory burden. (ii) listing or advertising real property for SA 4393. Mrs. FEINSTEIN (for her- (6) Enhances consumer protections and sale, purchase, lease, rental, or exchange; supports anti-fraud measures. self, Mr. MARTINEZ, Mr. OBAMA, Mrs. (iii) providing advice in connection with (7) Provides consumers with easily acces- BOXER, Mr. SALAZAR, Mr. DURBIN and sale, purchase, lease, rental, or exchange of sible information, offered at no charge, uti- real property; Ms. KLOBUCHAR) submitted an amend- lizing electronic media, including the Inter- (iv) bringing together parties interested in ment intended to be proposed by her to net, regarding the employment history of, the sale, purchase, lease, rental, or exchange the bill H.R. 3221, moving the United and publicly adjudicated disciplinary and en- of real property; States toward greater energy independ- forcement actions against, loan originators. (v) negotiating, on behalf of any party, any ence and security, developing innova- (8) Establishes a means by which residen- portion of a contract relating to the sale, tive new technologies, reducing carbon tial mortgage loan originators would be repurchase, lease, rental, or exchange of real emissions, creating green jobs, pro- quired to act in the best interests of the con- property (other than in connection with pro- sumer, to the greatest extent possible. tecting consumers, increasing clean re- viding financing with respect to any such newable energy production, and mod- SEC. 703. DEFINITIONS. transaction); For purposes of this title, the following (vi) engaging in any activity for which a ernizing our energy infrastructure, and definitions shall apply: person engaged in the activity is required to to amend the Internal Revenue Code of (1) FEDERAL BANKING AGENCIES.—The term be registered or licensed as a real estate 1986 to provide tax incentives for the ‘‘Federal banking agencies’’ means the Board agent or real estate broker under any appli- production of renewable energy and en- of Governors of the Federal Reserve System, cable law; and ergy conservation; which was ordered the Comptroller of the Currency, the Direc- (vii) offering to engage in any activity, or to lie on the table; as follows: tor of the Office of Thrift Supervision, the act in any capacity, described in clause (i), National Credit Union Administration, and (ii), (iii), (iv), (v), or (vi). At the end, add the following: the Federal Deposit Insurance Corporation. (4) LOAN PROCESSOR OR UNDERWRITER.— TITLE VII—S.A.F.E. MORTGAGE LICENSING (2) DEPOSITORY INSTITUTION.—The term (A) IN GENERAL.—The term ‘‘loan processor ACT ‘‘depository institution’’ has the same mean- or underwriter’’ means an individual who SEC. 701. SHORT TITLE; TABLE OF CONTENTS. ing as in section 3 of the Federal Deposit In- performs clerical or support duties at the di- (a) SHORT TITLE.—This title may be cited surance Act, and includes any credit union. rection of and subject to the supervision and as the ‘‘Secure and Fair Enforcement for (3) LOAN ORIGINATOR.— instruction of— Mortgage Licensing Act of 2008’’ or ‘‘S.A.F.E. (A) IN GENERAL.—The term ‘‘loan origi- (i) a State-licensed loan originator; or Mortgage Licensing Act of 2008’’. nator’’— (ii) a registered loan originator.

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(B) CLERICAL OR SUPPORT DUTIES.—For pur- (v) substantial prepayment penalties or (4) The applicant has completed the pre-li- poses of subparagraph (A), the term ‘‘clerical prepayment penalties that extend beyond censing education requirement described in or support duties’’ may include— the initial fixed interest rate period. subsection (c). (i) the receipt, collection, distribution, and (11) UNIQUE IDENTIFIER.—The term ‘‘unique (5) The applicant has passed a written test analysis of information common for the identifier’’ means a number or other identi- that meets the test requirement described in processing or underwriting of a residential fier that— subsection (d). mortgage loan; and (A) permanently identifies a loan origi- (6) The applicant has met a minimum net (ii) communicating with a consumer to ob- nator; and worth requirement. tain the information necessary for the proc- (B) is assigned by protocols established by (c) PRE-LICENSING EDUCATION OF LOAN essing or underwriting of a loan, to the ex- the Nationwide Mortgage Licensing System ORIGINATORS.— tent that such communication does not in- and Registry and the Federal banking agen- (1) MINIMUM EDUCATIONAL REQUIREMENTS.— clude offering or negotiating loan rates or cies to facilitate electronic tracking of loan In order to meet the pre-licensing education terms, or counseling consumers about resi- originators and uniform identification of, requirement referred to in subsection (b)(4), dential mortgage loan rates or terms. and public access to, the employment his- a person shall complete at least 20 hours of (5) NATIONWIDE MORTGAGE LICENSING SYS- tory of and the publicly adjudicated discipli- education approved in accordance with para- TEM AND REGISTRY.—The term ‘‘Nationwide nary and enforcement actions against loan graph (2), which shall include at least— Mortgage Licensing System and Registry’’ originators. (A) 3 hours of Federal law and regulations; means a mortgage licensing system devel- SEC. 704. LICENSE OR REGISTRATION REQUIRED. (B) 3 hours of ethics, which shall include oped and maintained by the Conference of (a) IN GENERAL.—An individual may not instruction on fraud, consumer protection, State Bank Supervisors and the American engage in the business of a loan originator and fair lending issues; and Association of Residential Mortgage Regu- without first— (C) 2 hours of training related to lending lators for the State licensing and registra- (1) obtaining and maintaining, through an standards for the subprime mortgage mar- tion of State-licensed loan originators and annual renewal— ketplace. the registration of registered loan origina- (A) a registration as a registered loan (2) APPROVED EDUCATIONAL COURSES.—For tors or any system established by the Sec- originator; or purposes of paragraph (1), pre-licensing edu- retary under section 709. (B) a license and registration as a State-li- cation courses shall be reviewed, and ap- (6) REGISTERED LOAN ORIGINATOR.—The censed loan originator; and proved by the Nationwide Mortgage Licens- term ‘‘registered loan originator’’ means any (2) obtaining a unique identifier. ing System and Registry. individual who— (b) LOAN PROCESSORS AND UNDERWRITERS.— (3) LIMITATION AND STANDARDS.— (A) meets the definition of loan originator (1) SUPERVISED LOAN PROCESSORS AND UN- (A) LIMITATION.—To maintain the inde- and is an employee of a depository institu- DERWRITERS.—A loan processor or under- pendence of the approval process, the Na- tion or a wholly-owned subsidiary of a depos- writer who does not represent to the public, tionwide Mortgage Licensing System and itory institution; and through advertising or other means of com- Registry shall not directly or indirectly offer (B) is registered with, and maintains a municating or providing information (in- pre-licensure educational courses for loan unique identifier through, the Nationwide cluding the use of business cards, stationery, originators. Mortgage Licensing System and Registry. brochures, signs, rate lists, or other pro- (B) STANDARDS.—In approving courses (7) RESIDENTIAL MORTGAGE LOAN.—The motional items), that such individual can or under this section, the Nationwide Mortgage term ‘‘residential mortgage loan’’ means any will perform any of the activities of a loan Licensing System and Registry shall apply loan primarily for personal, family, or house- originator shall not be required to be a reasonable standards in the review and ap- hold use that is secured by a mortgage, deed State-licensed loan originator or a registered proval of courses. of trust, or other equivalent consensual secu- loan originator. (d) TESTING OF LOAN ORIGINATORS.— rity interest on a dwelling (as defined in sec- (2) INDEPENDENT CONTRACTORS.—A loan (1) IN GENERAL.—In order to meet the writ- tion 103(v) of the Truth in Lending Act) or processor or underwriter may not work as an ten test requirement referred to in sub- residential real estate upon which is con- independent contractor unless such proc- section (b)(5), an individual shall pass, in ac- structed or intended to be constructed a essor or underwriter is a State-licensed loan cordance with the standards established dwelling (as so defined). originator or a registered loan originator. under this subsection, a qualified written (8) SECRETARY.—The term ‘‘Secretary’’ SEC. 705. STATE LICENSE AND REGISTRATION AP- test developed by the Nationwide Mortgage means the Secretary of Housing and Urban PLICATION AND ISSUANCE. Licensing System and Registry and adminis- Development. (a) BACKGROUND CHECKS.—In connection tered by an approved test provider. (9) STATE-LICENSED LOAN ORIGINATOR.—The with an application to any State for licens- (2) QUALIFIED TEST.—A written test shall term ‘‘State-licensed loan originator’’ means ing and registration as a State-licensed loan not be treated as a qualified written test for any individual who— originator, the applicant shall, at a min- purposes of paragraph (1) unless— (A) is a loan originator; imum, furnish to the Nationwide Mortgage (A) the test consists of a minimum of 100 (B) is not an employee of a depository in- Licensing System and Registry information questions; and stitution or any wholly-owned subsidiary of concerning the applicant’s identity, includ- (B) the test adequately measures the appli- a depository institution; and ing— cant’s knowledge and comprehension in ap- (C) is licensed by a State or by the Sec- (1) fingerprints for submission to the Fed- propriate subject areas, including— retary under section 708 and registered as a eral Bureau of Investigation, and any gov- (i) ethics; loan originator with, and maintains a unique ernmental agency or entity authorized to re- (ii) Federal law and regulation pertaining identifier through, the Nationwide Mortgage ceive such information for a State and na- to mortgage origination; Licensing System and Registry. tional criminal history background check; (iii) State law and regulation pertaining to (10) SUBPRIME MORTGAGE.—The term and mortgage origination; and ‘‘subprime mortgage’’ means a residential (2) personal history and experience, includ- (iv) Federal and State law and regulation, mortgage loan— ing authorization for the System to obtain— including instruction on fraud, consumer (A) that is secured by real property that is (A) an independent credit report obtained protection, subprime mortgage marketplace, used or intended to be used as a principal from a consumer reporting agency described and fair lending issues. dwelling; in section 603(p) of the Fair Credit Reporting (3) MINIMUM COMPETENCE.— (B) that is typically offered to borrowers Act; and (A) PASSING SCORE.—An individual shall having weakened credit histories and re- (B) information related to any administra- not be considered to have passed a qualified duced repayment capacity, as measured by tive, civil or criminal findings by any gov- written test unless the individual achieves a lower credit scores, debt-to-income ratios, ernmental jurisdiction. test score of not less than 75 percent correct and other relevant criteria; and (b) ISSUANCE OF LICENSE.—The minimum answers to questions. (C) the characteristics of which may in- standards for licensing and registration as a (B) INITIAL RETESTS.—An individual may clude— State-licensed loan originator shall include retake a test 3 consecutive times with each (i) low initial payments based on a fixed in- the following: consecutive taking occurring in less than 14 troductory rate that expires after a short pe- (1) The applicant has never had a loan days after the preceding test. riod and then adjusts to a variable index rate originator or similar license revoked in any (C) SUBSEQUENT RETESTS.—After 3 consecu- plus a margin for the remaining term of the governmental jurisdiction. tive tests, an individual shall wait at least 14 loan; (2) The applicant has never been convicted days before taking the test again. (ii) very high or no limits on how much the of, or pled guilty or nolo contendere to, a fel- (D) RETEST AFTER LAPSE OF LICENSE.—A payment amount or the interest rate may in- ony in a domestic, foreign, or military court. State-licensed loan originator who fails to crease (referred to as ‘‘payment caps’’ or (3) The applicant has demonstrated finan- maintain a valid license for a period of 5 ‘‘rate caps’’) on reset dates; cial responsibility, character, and general years or longer shall retake the test, not (iii) limited or no documentation of the in- fitness such as to command the confidence of taking into account any time during which come of the borrower; the community and to warrant a determina- such individual is a registered loan origi- (iv) product features likely to result in fre- tion that the loan originator will operate nator. quent refinancing to maintain an affordable honestly, fairly, and efficiently within the (e) MORTGAGE CALL REPORTS.—Each mort- monthly payment; and purposes of this title. gage licensee shall submit to the Nationwide

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00134 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.096 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2501 Mortgage Licensing System and Registry re- Licensing System and Registry information to, the employment history of and the pub- ports of condition, which shall be in such concerning the employees’s identity, includ- licly adjudicated disciplinary and enforce- form and shall contain such information as ing— ment actions against loan originators. the Nationwide Mortgage Licensing System (A) fingerprints for submission to the Fed- (d) STATE LICENSING LAW REQUIREMENTS.— and Registry may require. eral Bureau of Investigation, and any gov- For purposes of this section, the law in effect SEC. 706. STANDARDS FOR STATE LICENSE RE- ernmental agency or entity authorized to rein a State meets the requirements of this NEWAL. ceive such information for a State and na- subsection if the Secretary determines the (a) IN GENERAL.—The minimum standards tional criminal history background check; law satisfies the following minimum require- for license renewal for State-licensed loan and ments: originators shall include the following: (B) personal history and experience, in- (1) A State loan originator supervisory au- (1) The loan originator continues to meet cluding authorization for the Nationwide thority is maintained to provide effective su- the minimum standards for license issuance. Mortgage Licensing System and Registry to pervision and enforcement of such law, in- (2) The loan originator has satisfied the an- obtain information related to any adminis- cluding the suspension, termination, or non- nual continuing education requirements de- trative, civil or criminal findings by any renewal of a license for a violation of State scribed in subsection (b). governmental jurisdiction. or Federal law. (b) CONTINUING EDUCATION FOR STATE-LI- (b) COORDINATION.— (2) The State loan originator supervisory CENSED LOAN ORIGINATORS.— (1) UNIQUE IDENTIFIER.—The Federal bank- authority ensures that all State-licensed (1) IN GENERAL.—In order to meet the an- ing agencies, through the Financial Institu- loan originators operating in the State are nual continuing education requirements re- tions Examination Council, shall coordinate registered with Nationwide Mortgage Licens- ferred to in subsection (a)(2), a State-li- with the Nationwide Mortgage Licensing ing System and Registry. censed loan originator shall complete at System and Registry to establish protocols least 8 hours of education approved in ac- (3) The State loan originator supervisory for assigning a unique identifier to each reg- authority is required to regularly report vio- cordance with paragraph (2), which shall in- istered loan originator that will facilitate clude at least— lations of such law, as well as enforcement electronic tracking and uniform identifica- actions and other relevant information, to (A) 3 hours of Federal law and regulations; tion of, and public access to, the employ- (B) 2 hours of ethics, which shall include the Nationwide Mortgage Licensing System ment history of and publicly adjudicated dis- instruction on fraud, consumer protection, and Registry. ciplinary and enforcement actions against and fair lending issues; and (e) TEMPORARY EXTENSION OF PERIOD.—The loan originators. (C) 2 hours of training related to lending Secretary may extend, by not more than 12 (2) NATIONWIDE MORTGAGE LICENSING SYS- standards for the subprime mortgage mar- months, the 1-year or 2-year period, as the TEM AND REGISTRY DEVELOPMENT.—To facili- ketplace. case may be, referred to in subsection (a) for tate the transfer of information required by (2) APPROVED EDUCATIONAL COURSES.—For the licensing of loan originators in any State subsection (a)(2), the Nationwide Mortgage purposes of paragraph (1), continuing edu- under a State licensing law that meets the Licensing System and Registry shall coordi- cation courses shall be reviewed, and ap- requirements of sections 705 and 706 and sub- nate with the Federal banking agencies, proved by the Nationwide Mortgage Licens- section (d) if the Secretary determines that through the Financial Institutions Examina- ing System and Registry. such State is making a good faith effort to tion Council, concerning the development (3) CALCULATION OF CONTINUING EDUCATION establish a State licensing law that meets and operation, by such System and Registry, CREDITS.—A State-licensed loan originator— such requirements, license mortgage origina- of the registration functionality and data re- (A) may only receive credit for a con- tors under such law, and register such origi- quirements for loan originators. tinuing education course in the year in nators with the Nationwide Mortgage Li- (c) CONSIDERATION OF FACTORS AND PROCE- censing System and Registry. which the course is taken; and DURES.—In establishing the registration pro- (f) LIMITATION ON HUD-LICENSED LOAN (B) may not take the same approved course cedures under subsection (a) and the proto- ORIGINATORS.—Any loan originator who is li- in the same or successive years to meet the cols for assigning a unique identifier to a censed by the Secretary under a system es- annual requirements for continuing edu- registered loan originator, the Federal bank- tablished under this section for any State cation. ing agencies shall make such de minimis ex- may not use such license to originate loans (4) INSTRUCTOR CREDIT.—A State-licensed ceptions as may be appropriate to para- in any other State. loan originator who is approved as an in- graphs (1)(A) and (2) of section 704(a), shall structor of an approved continuing education make reasonable efforts to utilize existing (g) CONTRACTING AUTHORITY.—The Sec- course may receive credit for the origina- information to minimize the burden of reg- retary may enter into contracts with quali- tor’s own annual continuing education re- istering loan originators, and shall consider fied independent parties, as necessary to effi- quirement at the rate of 2 hours credit for methods for automating the process to the ciently fulfill the obligations of the Sec- every 1 hour taught. greatest extent practicable consistent with retary under this Section. (5) LIMITATION AND STANDARDS.— the purposes of this title. SEC. 709. BACKUP AUTHORITY TO ESTABLISH A IMITATION (A) L .—To maintain the inde- SEC. 708. SECRETARY OF HOUSING AND URBAN NATIONWIDE MORTGAGE LICENSING pendence of the approval process, the Na- DEVELOPMENT BACKUP AUTHORITY AND REGISTRY SYSTEM. tionwide Mortgage Licensing System and TO ESTABLISH A LOAN ORIGINATOR If at any time the Secretary determines Registry shall not directly or indirectly offer LICENSING SYSTEM. that the Nationwide Mortgage Licensing any continuing education courses for loan (a) BACK UP LICENSING SYSTEM.—If, by the System and Registry is failing to meet the originators. end of the 1-year period, or the 2-year period requirements and purposes of this title for a (B) STANDARDS.—In approving courses in the case of a State whose legislature comprehensive licensing, supervisory, and under this section, the Nationwide Mortgage meets only biennially, beginning on the date tracking system for loan originators, the Licensing System and Registry shall apply of the enactment of this title or at any time Secretary shall establish and maintain such reasonable standards in the review and ap- thereafter, the Secretary determines that a a system to carry out the purposes of this proval of courses. State does not have in place by law or regu- title and the effective registration and regu- SEC. 707. SYSTEM OF REGISTRATION ADMINIS- lation a system for licensing and registering lation of loan originators. TRATION BY FEDERAL BANKING loan originators that meets the require- SEC. 710. FEES. AGENCIES. ments of sections 705 and 706 and subsection The Federal banking agencies, the Sec- (a) DEVELOPMENT.— (d) of this section, or does not participate in retary, and the Nationwide Mortgage Licens- (1) IN GENERAL.—The Federal banking the Nationwide Mortgage Licensing System ing System and Registry may charge reason- agencies shall jointly, through the Federal and Registry, the Secretary shall provide for able fees to cover the costs of maintaining Financial Institutions Examination Council, the establishment and maintenance of a sys- and providing access to information from the develop and maintain a system for reg- tem for the licensing and registration by the Nationwide Mortgage Licensing System and istering employees of depository institutions Secretary of loan originators operating in Registry, to the extent that such fees are not or subsidiaries of depository institutions as such State as State-licensed loan origina- charged to consumers for access to such sys- registered loan originators with the Nation- tors. tem and registry. wide Mortgage Licensing System and Reg- (b) LICENSING AND REGISTRATION REQUIRE- istry. The system shall be implemented be- MENTS.—The system established by the Sec- SEC. 711. BACKGROUND CHECKS OF LOAN ORIGI- fore the end of the 1-year period beginning retary under subsection (a) for any State NATORS. on the date of the enactment of this title. shall meet the requirements of sections 705 (a) ACCESS TO RECORDS.—Notwithstanding (2) REGISTRATION REQUIREMENTS.—In con- and 706 for State-licensed loan originators. any other provision of law, in providing iden- nection with the registration of any loan (c) UNIQUE IDENTIFIER.—The Secretary tification and processing functions, the At- originator who is an employee of a deposi- shall coordinate with the Nationwide Mort- torney General shall provide access to all tory institution or a wholly-owned sub- gage Licensing System and Registry to es- criminal history information to the appro- sidiary of a depository institution with the tablish protocols for assigning a unique iden- priate State officials responsible for regu- Nationwide Mortgage Licensing System and tifier to each loan originator licensed by the lating State-licensed loan originators to the Registry, the appropriate Federal banking Secretary as a State-licensed loan originator extent criminal history background checks agency shall, at a minimum, furnish or cause that will facilitate electronic tracking and are required under the laws of the State for to be furnished to the Nationwide Mortgage uniform identification of, and public access the licensing of such loan originators.

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00135 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.096 S03APPT1 ccoleman on PRODPC75 with SENATE S2502 CONGRESSIONAL RECORD — SENATE April 3, 2008

(b) AGENT.—For the purposes of this sec- (1) examine any books, papers, records, or may specify, with such provision or regulation and in order to reduce the points of con- other data of any loan originator operating tion with respect to any loan originator. tact which the Federal Bureau of Investiga- in any State which is subject to a licensing (2) HEARING.—The notice instituting pro- tion may have to maintain for purposes of system established by the Secretary under ceedings pursuant to paragraph (1) shall fix a subsection (a), the Conference of State Bank section 708; and hearing date not earlier than 30 days nor Supervisors or a wholly owned subsidiary (2) summon any loan originator referred to later than 60 days after service of the notice may be used as a channeling agent of the in paragraph (1) or any person having posses- unless an earlier or a later date is set by the States for requesting and distributing infor- sion, custody, or care of the reports and Secretary with the consent of any respond- mation between the Department of Justice records relating to such loan originator, to ent so served. and the appropriate State agencies. appear before the Secretary or any delegate (3) TEMPORARY ORDER.—Whenever the Sec- SEC. 712. CONFIDENTIALITY OF INFORMATION. of the Secretary at a time and place named retary determines that the alleged violation (a) SYSTEM CONFIDENTIALITY.—Except as in the summons and to produce such books, or threatened violation specified in the no- otherwise provided in this section, any re- papers, records, or other data, and to give tice instituting proceedings pursuant to quirement under Federal or State law re- testimony, under oath, as may be relevant or paragraph (1), or the continuation thereof, is garding the privacy or confidentiality of any material to an investigation of such loan likely to result in significant dissipation or information or material provided to the Na- originator for compliance with the require- conversion of assets, significant harm to tionwide Mortgage Licensing System and ments of this title. consumers, or substantial harm to the public (b) EXAMINATION AUTHORITY.— Registry or a system established by the Sec- interest prior to the completion of the pro- (1) IN GENERAL.—If the Secretary estab- retary under section 709, and any privilege ceedings, the Secretary may enter a tem- lishes a licensing system under section 708 arising under Federal or State law (including porary order requiring the respondent to the rules of any Federal or State court) with for any State, the Secretary shall appoint examiners for the purposes of administering cease and desist from the violation or threat- respect to such information or material, ened violation and to take such action to shall continue to apply to such information such section. prevent the violation or threatened violation or material after the information or mate- (2) POWER TO EXAMINE.—Any examiner ap- and to prevent dissipation or conversion of rial has been disclosed to the system. Such pointed under paragraph (1) shall have assets, significant harm to consumers, or information and material may be shared power, on behalf of the Secretary, to make substantial harm to the public interest as with all State and Federal regulatory offi- any examination of any loan originator oper- the Secretary deems appropriate pending cials with mortgage industry oversight au- ating in any State which is subject to a li- completion of such proceedings. Such an thority without the loss of privilege or the censing system established by the Secretary order shall be entered only after notice and loss of confidentiality protections provided under section 708 whenever the Secretary de- opportunity for a hearing, unless the Sec- by Federal and State laws. termines an examination of any loan origi- (b) NONAPPLICABILITY OF CERTAIN REQUIRE- nator is necessary to determine the compli- retary determines that notice and hearing MENTS.—Information or material that is sub- ance by the originator with this title. prior to entry would be impracticable or con- ject to a privilege or confidentiality under (3) REPORT OF EXAMINATION.—Each exam- trary to the public interest. A temporary subsection (a) shall not be subject to— iner appointed under paragraph (1) shall order shall become effective upon service (1) disclosure under any Federal or State make a full and detailed report of examina- upon the respondent and, unless set aside, law governing the disclosure to the public of tion of any loan originator examined to the limited, or suspended by the Secretary or a information held by an officer or an agency Secretary. court of competent jurisdiction, shall remain of the Federal Government or the respective (4) ADMINISTRATION OF OATHS AND AFFIRMA- effective and enforceable pending the com- State; or TIONS; EVIDENCE.—In connection with exami- pletion of the proceedings. (2) subpoena or discovery, or admission nations of loan originators operating in any (4) REVIEW OF TEMPORARY ORDERS.— into evidence, in any private civil action or State which is subject to a licensing system (A) REVIEW BY SECRETARY.—At any time administrative process, unless with respect established by the Secretary under section after the respondent has been served with a to any privilege held by the Nationwide 708, or with other types of investigations to temporary cease-and-desist order pursuant Mortgage Licensing System and Registry or determine compliance with applicable law to paragraph (3), the respondent may apply the Secretary with respect to such informa- and regulations, the Secretary and exam- to the Secretary to have the order set aside, tion or material, the person to whom such iners appointed by the Secretary may admin- limited, or suspended. If the respondent has information or material pertains waives, in ister oaths and affirmations and examine been served with a temporary cease-and-de- whole or in part, in the discretion of such and take and preserve testimony under oath sist order entered without a prior hearing be- person, that privilege. as to any matter in respect to the affairs of fore the Secretary, the respondent may, (c) COORDINATION WITH OTHER LAW.—Any any such loan originator. within 10 days after the date on which the State law, including any State open record (5) ASSESSMENTS.—The cost of conducting order was served, request a hearing on such law, relating to the disclosure of confidential any examination of any loan originator oper- application and the Secretary shall hold a supervisory information or any information ating in any State which is subject to a li- hearing and render a decision on such appli- or material described in subsection (a) that censing system established by the Secretary cation at the earliest possible time. is inconsistent with subsection (a) shall be under section 708 shall be assessed by the (B) JUDICIAL REVIEW.—Within— superseded by the requirements of such pro- Secretary against the loan originator to (i) 10 days after the date the respondent vision to the extent State law provides less meet the Secretary’s expenses in carrying was served with a temporary cease-and-de- confidentiality or a weaker privilege. out such examination. sist order entered with a prior hearing before (d) PUBLIC ACCESS TO INFORMATION.—This (c) CEASE AND DESIST PROCEEDING.— the Secretary; or section shall not apply with respect to the (1) AUTHORITY OF SECRETARY.—If the Sec- (ii) 10 days after the Secretary renders a information or material relating to the em- retary finds, after notice and opportunity for decision on an application and hearing under ployment history of, and publicly adju- hearing, that any person is violating, has paragraph (1), with respect to any temporary dicated disciplinary and enforcement actions violated, or is about to violate any provision cease-and-desist order entered without a against, loan originators that is included in of this title, or any regulation thereunder, prior hearing before the Secretary, Nationwide Mortgage Licensing System and with respect to a State which is subject to a the respondent may apply to the United Registry for access by the public. licensing system established by the Sec- States district court for the district in which SEC. 713. LIABILITY PROVISIONS. retary under section 708, the Secretary may the respondent resides or has its principal The Secretary, any State official or agen- publish such findings and enter an order re- place of business, or for the District of Co- cy, any Federal banking agency, or any orga- quiring such person, and any other person lumbia, for an order setting aside, limiting, nization serving as the administrator of the that is, was, or would be a cause of the viola- or suspending the effectiveness or enforce- Nationwide Mortgage Licensing System and tion, due to an act or omission the person ment of the order, and the court shall have Registry or a system established by the Sec- knew or should have known would con- jurisdiction to enter such an order. A re- retary under section 9, or any officer or em- tribute to such violation, to cease and desist spondent served with a temporary cease-and- ployee of any such entity, shall not be sub- from committing or causing such violation desist order entered without a prior hearing ject to any civil action or proceeding for and any future violation of the same provi- before the Secretary may not apply to the monetary damages by reason of the good- sion, rule, or regulation. Such order may, in court except after hearing and decision by faith action or omission of any officer or em- addition to requiring a person to cease and the Secretary on the respondent’s applica- ployee of any such entity, while acting with- desist from committing or causing a violation under subparagraph (A). in the scope of office or employment, relat- tion, require such person to comply, or to (C) NO AUTOMATIC STAY OF TEMPORARY ing to the collection, furnishing, or dissemi- take steps to effect compliance, with such ORDER.—The commencement of proceedings nation of information concerning persons provision or regulation, upon such terms and under subparagraph (B) shall not, unless spe- who are loan originators or are applying for conditions and within such time as the Sec- cifically ordered by the court, operate as a licensing or registration as loan originators. retary may specify in such order. Any such stay of the Secretary’s order. SEC. 714. ENFORCEMENT UNDER HUD BACKUP order may, as the Secretary deems appro- (5) AUTHORITY OF THE SECRETARY TO PRO- LICENSING SYSTEM. priate, require future compliance or steps to HIBIT PERSONS FROM SERVING AS LOAN ORIGI- (a) SUMMONS AUTHORITY.—The Secretary effect future compliance, either permanently NATORS.—In any cease-and-desist proceeding may— or for such period of time as the Secretary under paragraph (1), the Secretary may issue

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00136 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.096 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2503 an order to prohibit, conditionally or uncon- veloping innovative new technologies, Director of the Office of Management and ditionally, and permanently or for such pe- reducing carbon emissions, creating Budget) with the highest home foreclosure riod of time as the Secretary shall deter- green jobs, protecting consumers, in- rates; and mine, any person who has violated this title creasing clean renewable energy pro- (2) have the capacity to begin using the fi- or regulations thereunder, from acting as a nancial assistance within 90 days after re- loan originator if the conduct of that person duction, and modernizing our energy ceipt of the assistance. demonstrates unfitness to serve as a loan infrastructure, and to amend the Inter- originator. nal Revenue Code of 1986 to provide tax SA 4395. Mr. BUNNING submitted an (d) AUTHORITY OF THE SECRETARY TO AS- incentives for the production of renew- amendment intended to be proposed to SESS MONEY PENALTIES.— able energy and energy conservation; amendment SA 4387 submitted by Mr. (1) IN GENERAL.—The Secretary may im- which was ordered to lie on the table; DODD (for himself and Mr. SHELBY) to pose a civil penalty on a loan originator op- as follows: the bill H.R. 3221, moving the United erating in any State which is subject to licensing system established by the Secretary On page 58, line 10, strike ‘‘$100,000,000’’ and States toward greater energy independ- under section 708, if the Secretary finds, on insert ‘‘$137,500,000’’. ence and security, developing innova- On page 58, line 17, strike the period and the record after notice and opportunity for tive new technologies, reducing carbon insert the following: ‘‘: Provided, That, of hearing, that such loan originator has vio- emissions, creating green jobs, pro- such amounts $37,500,000 shall be used by the lated or failed to comply with any require- tecting consumers, increasing clean re- Neighborhood Reinvestment Corporation (re- ment of this title or any regulation preferred to in this section as the ‘NRC’) to (1) newable energy production, and mod- scribed by the Secretary under this title or make grants to counseling intermediaries ernizing our energy infrastructure, and order issued under subsection (c). approved by the Department of Housing and to amend the Internal Revenue Code of (2) MAXIMUM AMOUNT OF PENALTY.—The Urban Development or the NRC to hire at- maximum amount of penalty for each act or 1986 to provide tax incentives for the torneys trained and capable of assisting omission described in paragraph (1) shall be production of renewable energy and en- homeowners of owner-occupied homes with $5,000 for each day the violation continues. ergy conservation; which was ordered mortgages in default, in danger of default, or to lie on the table; as follows: SEC. 715. PREEMPTION OF STATE LAW. subject to or at risk of foreclosure who have Nothing in this title may be construed to legal issues that cannot be handled by coun- At the end of title VI, add the following: preempt the law of any State, to the extent selors already employed by such inter- SEC. 605. DEDUCTION FOR POINTS ON HOME that such State law provides greater protec- mediaries, and (2) support NRC partnerships MORTGAGE REFINANCING ALLOWED IN YEAR PAID. tion to consumers than is provided under with State and local legal organizations and (a) IN GENERAL.—Paragraph (2) of section this title. organizations described in section 501(c)(3) of 461(g) of the Internal Revenue Code of 1986 SEC. 716. REPORTS AND RECOMMENDATIONS TO the Internal Revenue Code of 1986 and ex- (relating to prepaid interest) is amended— CONGRESS. empt from tax under section 501(a) of that (1) by striking ‘‘This subsection’’ and in- (a) ANNUAL REPORTS.—Not later than 1 Code with demonstrated relevant legal expe- serting the following: year after the date of enactment of this title, rience in home foreclosure law, as such expe- ‘‘(A) IN GENERAL.—This subsection’’, and and annually thereafter, the Secretary shall rience is determined by the Chief Executive (2) by adding at the end the following new submit a report to Congress on the effective- Officer of NRC: Provided further, That for subparagraph: ness of the provisions of this title, including the purpose of the prior proviso the term ‘‘(B) EXCEPTION FOR CERTAIN legislative recommendations, if any, for ‘relevant experience’ means experience rep- REFINANCINGS.— strengthening consumer protections, enhanc- resenting homeowners in negotiations and or ‘‘(i) IN GENERAL.—This subsection shall not ing examination standards, and streamlining legal proceedings aimed at preventing or apply to points paid— communication between all stakeholders in- mitigating foreclosure or providing legal re- ‘‘(I) in respect of indebtedness secured by volved in residential mortgage loan origina- search and technical legal expertise to com- such residence resulting from the refi- tion and processing. munity based organizations whose goal is to nancing of indebtedness meeting the require- (b) LEGISLATIVE RECOMMENDATIONS.—Not reduce, prevent, or mitigate foreclosure: ments of the subparagraph (A), and later than 6 months after the date of enact- Provided further, That of the amounts pro- ‘‘(II) before January 1, 2011. ment of this title, the Secretary shall make vided for in the prior provisos the NRC shall ‘‘(ii) LIMITATION.—Clause (i) shall apply recommendations to Congress on legislative give priority consideration to counseling only to the extent the amount of the indebt- reforms to the Real Estate Settlement Pro- intermediaries and legal organizations that edness resulting from such refinancing does cedures Act of 1974, that the Secretary deems (1) provide legal assistance in the 100 metro- not exceed the sum of— appropriate to promote more transparent politan statistical areas (as defined by the ‘‘(I) the amount of the refinanced indebted- disclosures, allowing consumers to better Director of the Office of Management and ness, plus shop and compare mortgage loan terms and Budget) with the highest home foreclosure ‘‘(II) the lesser of $10,000 or the points paid settlement costs. rates, and (2) have the capacity to begin in respect of the indebtedness resulting from SEC. 717. STUDY AND REPORTS ON DEFAULTS using the financial assistance within 90 days the refinancing to the extent that the in- AND FORECLOSURES. after receipt of the assistance.’’. debtedness resulting from the refinancing (a) STUDY REQUIRED.—The Secretary shall On page 58, between lines 17 and 18, insert does not exceed the refinanced indebtedness. conduct an extensive study of the root the following: causes of default and foreclosure of home ‘‘(iii) ADJUSTMENT FOR INFLATION.—In the SEC. 302. LEGAL ASSISTANCE RELATED TO HOME case of any calendar year beginning after loans, using as much empirical data as is OWNERSHIP PRESERVATION AND 2008, the $10,000 amount under clause (ii)(II) available. FORECLOSURE PREVENTION. shall be increased by an amount equal to— (b) PRELIMINARY REPORT TO CONGRESS.— (a) APPROPRIATION.— ‘‘(I) such dollar amount, multiplied by Not later than 6 months after the date of en- (1) IN GENERAL.—There is authorized to be actment of this title, the Secretary shall appropriated and there is appropriated to the ‘‘(II) the cost-of-living adjustment deter- submit to Congress a preliminary report re- Legal Services Corporation $37,500,000 to pro- mined under section 1(f)(3) for the calendar garding the study required by this section. vide legal assistance related to home owner- year in which the taxable year begins, determined by substituting ‘calendar year 2007’ (c) FINAL REPORT TO CONGRESS.—Not later ship preservation, home foreclosure preven- than 12 months after the date of enactment tion, and tenancy associated with home fore- for ‘calendar year 1992’ in subparagraph (B) of this title, the Secretary shall submit to closure. thereof. If any amount as adjusted under the pre- Congress a final report regarding the results (2) AVAILABILITY.—Such funds shall remain of the study required by this section, which available until expended. ceding sentence is not a multiple of $100, such amount shall be rounded to the next shall include any recommended legislation (b) FUNDING REQUIREMENTS.—Each limita- relating to the study, and recommendations tion on expenditures, and each term or con- nearest multiple of $100.’’. (b) CONFORMING AMENDMENT.—The heading for best practices and for a process to pro- dition, that applies to funds appropriated to of paragraph (2) of section 461(g) of such Code vide targeted assistance to populations with the Legal Services Corporation under the is amended by striking ‘‘EXCEPTION’’ and in- the highest risk of potential default or fore- Commerce, Justice, Science, and Related serting ‘‘EXCEPTIONS’’. closure. Agencies Appropriations Act, 2008, shall (c) EFFECTIVE DATE.—The amendments apply to funds appropriated to the Corpora- made by this section shall apply to amounts tion under subsection (a), except as provided SA 4394. Ms. MIKULSKI (for herself, paid in taxable years beginning after Decem- in subsections (a)(1) and (c). Mr. KENNEDY and Mr. HARKIN) sub- ber 31, 2007. mitted an amendment intended to be (c) PRIORITY.—In providing financial as- proposed to amendment SA 4387 sub- sistance from the funds appropriated under Mr. BROWNBACK submitted subsection (a), the Corporation shall give SA 4396. mitted by Mr. DODD (for himself and priority to eligible entities and individuals an amendment intended to be proposed Mr. SHELBY) to the bill H.R. 3221, mov- that— by him to the bill H.R. 3221, moving the ing the United States toward greater (1) provide legal assistance in the 100 met- United States toward greater energy energy independence and security, de- ropolitan statistical areas (as defined by the independence and security, developing

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00137 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.096 S03APPT1 ccoleman on PRODPC75 with SENATE S2504 CONGRESSIONAL RECORD — SENATE April 3, 2008 innovative new technologies, reducing (2) not later than 18 months after the date (c) TECHNICAL ASSISTANCE.—Upon the re- carbon emissions, creating green jobs, of enactment of this Act, submit to Congress quest of the Commission, the head of a Fed- protecting consumers, increasing clean with respect to the evaluation under para- eral agency shall provide such technical assistance to the Commission as the Commis- renewable energy production, and mod- graph (1)— (A) a plan with recommendations of the sion determines to be necessary to carry out ernizing our energy infrastructure, and agencies and programs that should be reits duties. to amend the Internal Revenue Code of aligned or eliminated; and (d) INFORMATION.— 1986 to provide tax incentives for the (B) proposed legislation to implement the (1) IN GENERAL.—The Commission shall production of renewable energy and en- plan described under subparagraph (A). have reasonable access to budgetary, per- ergy conservation; which was ordered (b) RELOCATION OF FEDERAL EMPLOYEES.— formance or programmatic materials, re- to lie on the table; as follows: The proposed legislation under subsection (a) sources, statistical data, and other informa- shall provide that if the position of an em- tion the Commission determines to be nec- At the end of the bill, add the following: ployee of an agency is eliminated as a result essary to carry out its duties from the Con- TITLE VIII—COMMISSION ON HOUSING of the implementation of the plan under sub- gressional Budget Office, and other agencies AND REGULATORY ACCOUNTABILITY section (a)(2), the affected agency shall make and representatives of the executive and leg- AND REVIEW reasonable efforts to relocate such employee islative branches of the Federal Government. SEC. 801. DEFINITIONS. to another position within the agency or The Cochairpersons shall make requests for In this title: within another Federal agency (including such access in writing when necessary. (1) AGENCY.—The term ‘‘agency’’ means— Federal agencies other than the Department (2) RECEIPT, HANDLING, STORAGE, AND DIS- (A) the Department of Housing and Urban of Housing and Urban Development and the SEMINATION OF INFORMATION.—Information Development; and Department of the Treasury). shall only be received, handled, stored, and (B) the Department of the Treasury. (c) CRITERIA.— disseminated by members of the Commission (2) CALENDAR DAY.—The term ‘‘calendar (1) DUPLICATIVE.—If 2 or more agencies or and its staff consistent with all applicable day’’ means a calendar day other than 1 on programs are performing the same essential statutes, regulations, and Executive orders. which either House is not in session because function and the function can be consoli- (3) LIMITATION OF ACCESS TO PERSONAL TAX of an adjournment of more than 3 days to a dated or streamlined into a single agency or INFORMATION.—Information requested, sub- date certain. program, the Commission shall recommend poenaed, or otherwise accessed under this (3) COMMISSION BILL.—The term ‘‘Commis- that the agencies or programs be realigned. title shall not include tax data from the sion bill’’ means only a bill which is intro- (2) WASTEFUL OR INEFFICIENT.—The Com- United States Internal Revenue Service, the duced as provided under section 806, and con- mission may recommend the realignment or release of which would otherwise be in viola- tains the proposed legislation included in the elimination of any agency or program that tion of law. report submitted to Congress under section has wasted Federal funds by— (e) POSTAL SERVICES.—The Commission 803(a), without modification. (A) egregious spending; may use the United States mails in the same (4) PROGRAM.—The term ‘‘program’’ means (B) mismanagement of resources and per- manner and under the same conditions as any activity or function of an agency. sonnel; or other departments and agencies of the Fed- eral Government. SEC. 802. ESTABLISHMENT OF COMMISSION. (C) use of such funds for personal benefit or SEC. 805. COMMISSION PERSONNEL MATTERS. (a) ESTABLISHMENT.—There is established the benefit of a special interest group. (a) COMPENSATION OF MEMBERS.— the Commission on Housing and Regulatory (3) OUTDATED, IRRELEVANT, OR FAILED.—The (1) NON-FEDERAL MEMBERS.—Except as pro- Accountability and Review (referred to in Commission may recommend the elimi- vided under subsection (b), each member of this title as the ‘‘Commission’’). nation of any agency or program that— the Commission who is not an officer or em- (b) MEMBERSHIP.— (A) has completed its intended purpose; ployee of the Federal Government shall not (1) IN GENERAL.—The Commission shall (B) has become irrelevant; or be compensated. consist of 15 members, of which, not later (C) has failed to meet its objectives. (2) FEDERAL OFFICERS OR EMPLOYEES.—All than 30 days after the date of enactment of SEC. 804. POWERS OF THE COMMISSION. members of the Commission who are officers this Act— (a) HEARINGS.—Subject to subsection (d), or employees of the United States shall serve (A) 3 shall be appointed by the President; the Cochairpersons of the Commission may, without compensation in addition to that re- (B) 3 shall be appointed by the majority for the purpose of carrying out this title— ceived for their services as officers or em- leader of the Senate; (1) hold such hearings, sit and act at such ployees of the United States. (C) 3 shall be appointed by the minority times and places, take such testimony, re- (b) TRAVEL EXPENSES.—The members of leader of the Senate; ceive such evidence, and administer such the Commission shall be allowed travel ex- (D) 3 shall be appointed by the Speaker of oaths as the chairperson of the Commission penses, including per diem in lieu of subsist- the House of Representatives; and considers advisable; ence, at rates authorized for employees of (E) 3 shall be appointed by the minority (2) require, by subpoena or otherwise, the agencies under subchapter I of chapter 57 of leader of the House of Representatives. attendance and testimony of such witnesses title 5, United States Code, while away from (2) COCHAIRPERSONS.—The President shall as the chairperson of the Commission con- their homes or regular places of business in designate 2 Cochairpersons from among the siders advisable; and the performance of services for the Commis- members of the Commission. The Cochair- (3) require, by subpoena or otherwise, the sion. persons may not be affiliated with the same production of such books, records, cor- (c) STAFF.— political party. respondence, memoranda, papers, docu- (1) IN GENERAL.—With the approval of the (c) DATE.—Members of the Commission ments, tapes, and other evidentiary mate- majority of the Commission, the Cochair- shall be appointed by not later than 30 days rials relating to any matter under investiga- persons of the Commission may, appoint an after the date of enactment of this Act. tion by the Commission. executive director and such other additional (d) PERIOD OF APPOINTMENT; VACANCIES.— (b) SUBPOENAS.— personnel as may be necessary to enable the Members shall be appointed for the life of (1) ISSUANCE.— Commission to perform its duties. the Commission. Any vacancy in the Com- (A) IN GENERAL.—A subpoena may be issued (2) COMPENSATION.—Upon the approval of mission shall not affect its powers, but shall under this section only by— the Cochairpersons, the executive director be filled in the same manner as the original (i) the agreement of the Cochairpersons; or may fix the compensation of the executive appointment. (ii) the affirmative vote of 8 members of director and other personnel without regard (e) MEETINGS.— the Commission. to chapter 51 and subchapter III of chapter 53 (1) INITIAL MEETING.—Not later than 30 (B) SIGNATURE.—Subpoenas issued under of title 5, United States Code, relating to days after the date on which all members of this section may be issued under the signa- classification of positions and General the Commission have been appointed, the ture of both Cochairpersons of the Commis- Schedule pay rates, except that the rate of Commission shall hold its first meeting. sion and may be served by any person des- pay for the executive director and other per- (2) SUBSEQUENT MEETINGS.—The Commis- ignated by the Cochairpersons or by a mem- sonnel may not exceed the maximum rate sion shall meet at the call of the Cochair- ber designated by a majority of the Commis- payable for a position at GS–15 of the Gen- persons or a majority of its members. sion. eral Schedule under section 5332 of such (f) QUORUM.—Eight members of the Com- (2) ENFORCEMENT.—In the case of contu- title. mission shall constitute a quorum for pur- macy or failure to obey a subpoena issued (3) PERSONNEL AS FEDERAL EMPLOYEES.— poses of voting, but a quorum is not required under this section, the United States district (A) IN GENERAL.—The executive director for members to meet and hold hearings. court for the judicial district in which the and any personnel of the Commission who SEC. 803. DUTIES OF THE COMMISSION. subpoenaed person resides, is served, or may are employees shall be employees under sec- (a) IN GENERAL.—The Commission shall— be found, may issue an order requiring such tion 2105 of title 5, United States Code, for (1) evaluate all agencies and programs person to appear at any designated place to purposes of chapters 63, 81, 83, 84, 85, 87, 89, within the Department of Housing and Urban testify or to produce documentary or other 89A, 89B, and 90 of that title. Development and the Department of Treas- evidence. Any failure to obey the order of (B) MEMBERS OF COMMISSION.—Subpara- ury using the criteria under subsection (c); the court may be punished by the court as a graph (A) shall not be construed to apply to and contempt of that court. members of the Commission.

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(d) DETAIL OF GOVERNMENT EMPLOYEES.— resentatives and is privileged in the Senate ner, and to the same extent as in the case of Any Federal Government employee may be and is not debatable. The motion is not sub- any other rule of that House. detailed to the Commission without reim- ject to amendment or to a motion to post- SEC. 807. TERMINATION OF THE COMMISSION. bursement from the Commission, and such pone consideration of the Commission bill. A The Commission shall terminate 90 days detail shall be without interruption or loss motion to proceed to the consideration of after the date on which the Commission sub- of civil service status or privilege. other business shall not be in order. A mo- mits the final evaluation and plan report (e) PROCUREMENT OF TEMPORARY AND tion to reconsider the vote by which the mo- under section 803. INTERMITTENT SERVICES.—With the approval tion to proceed is agreed to or not agreed to SEC. 808. AUTHORIZATION OF APPROPRIATIONS. of the majority of the Commission, the shall not be in order. If the motion to pro- There are authorized to be appropriated chairperson of the Commission may procure ceed is agreed to, the Senate or the House of such sums as may be necessary for carrying temporary and intermittent services under Representatives, as the case may be, shall section 3109(b) of title 5, United States Code, out this title for each of the fiscal years 2008 immediately proceed to consideration of the through 2010. at rates for individuals which do not exceed Commission bill without intervening mo- the daily equivalent of the annual rate of tion, order, or other business, and the Com- SA 4397. Mrs. MURRAY (for herself, basic pay prescribed for level V of the Execu- mission bill shall remain the unfinished Mr. SCHUMER, Mr. CASEY, Mr. BROWN, tive Schedule under section 5316 of such business of the Senate or the House of Rep- title. resentatives, as the case may be, until dis- Mrs. CLINTON, Mr. MENENDEZ, Mr. SEC. 806. EXPEDITED CONSIDERATION OF RE- posed of. KERRY, Ms. KLOBUCHAR, Mr. LAUTEN- FORM PROPOSALS. (C) LIMITED DEBATE.—Debate on the Com- BERG, Mr. OBAMA, Ms. MIKULSKI, and (a) INTRODUCTION AND COMMITTEE CONSID- mission bill and on all debatable motions Mr. REED) submitted an amendment in- ERATION.— and appeals in connection therewith shall be tended to be proposed to amendment (1) INTRODUCTION.—The Commission bill limited to not more than 10 hours, which SA 4387 submitted by Mr. DODD (for language provisions submitted pursuant to shall be divided equally between those favor- himself and Mr. SHELBY) to the bill section 803(a) shall be introduced in the Sen- ing and those opposing the Commission bill. ate by the majority leader, or the majority A motion further to limit debate on the H.R. 3221, moving the United States to- leader’s designee, and in the House of Rep- Commission bill is in order and is not debat- ward greater energy independence and resentatives, by the Speaker, or the Speak- able. All time used for consideration of the security, developing innovative new er’s designee. Upon such introduction, the Commission bill, including time used for technologies, reducing carbon emis- Commission bill shall be referred to the ap- quorum calls (except quorum calls imme- sions, creating green jobs, protecting propriate committees of Congress under diately preceding a vote) and voting, shall paragraph (2). If the Commission bill is not consumers, increasing clean renewable come from the 10 hours of debate. energy production, and modernizing introduced in accordance with the preceding (D) AMENDMENTS.—No amendment to the sentence, then any member of Congress may Commission bill shall be in order in the Sen- our energy infrastructure, and to introduce the Commission bill in their re- ate and the House of Representatives. amend the Internal Revenue Code of spective House of Congress beginning on the (E) VOTE ON FINAL PASSAGE.—Immediately 1986 to provide tax incentives for the date that is the 5th calendar day that such following the conclusion of the debate on the production of renewable energy and en- House is in session following the date of the Commission bill, the vote on final passage of ergy conservation; as follows: submission of such aggregate legislative lan- the Commission bill shall occur. On page 58, line 10, strike ‘‘$100,000,000’’ and guage provisions. (F) OTHER MOTIONS NOT IN ORDER.—A mo- all that follows through ‘‘2008’’ on line 11, (2) COMMITTEE CONSIDERATION.— tion to postpone consideration of the Com- and insert the following: ‘‘$200,000,000, to re- (A) REFERRAL.—A Commission bill intro- mission bill, a motion to proceed to the con- main available until December 31, 2008’’. duced under paragraph (1) shall be referred sideration of other business, or a motion to to any appropriate committee of jurisdiction recommit the Commission bill is not in SA 4398. Mr. SALAZAR submitted an in the Senate, any appropriate committee of order. A motion to reconsider the vote by amendment intended to be proposed by jurisdiction in the House of Representatives, which the Commission bill is agreed to or the Committee on the Budget of the Senate not agreed to is not in order. him to the bill H.R. 3221, moving the and the Committee on the Budget of the (2) CONSIDERATION BY OTHER HOUSE.—If, be- United States toward greater energy House of Representatives. A committee to fore the passage by one House of the Com- independence and security, developing which a Commission bill is referred under mission bill that was introduced in such innovative new technologies, reducing this paragraph may review and comment on House, such House receives from the other carbon emissions, creating green jobs, such bill, may report such bill to the respec- House a Commission bill as passed by such protecting consumers, increasing clean tive House, and may not amend such bill. other House— renewable energy production, and mod- (B) REPORTING.—Not later than 30 calendar (A) the Commission bill of the other House days after the introduction of the Commis- shall not be referred to a committee and may ernizing our energy infrastructure, and sion bill, each Committee of Congress to only be considered for final passage in the to amend the Internal Revenue Code of which the Commission bill was referred shall House that receives it under subparagraph 1986 to provide tax incentives for the report the bill. (C); production of renewable energy and en- (C) DISCHARGE OF COMMITTEE.—If a com- (B) the procedure in the House in receipt of ergy conservation; which was ordered mittee to which is referred a Commission the Commission bill of the other House, with to lie on the table; as follows: bill has not reported such Commission bill at respect to the Commission bill that was in- At the end of title IV, add the following: the end of 30 calendar days after its intro- troduced in the House in receipt of the Com- SEC. 402. CREDIT COUNSELING. duction or at the end of the first day after mission bill of the other House, shall be the (a) IN GENERAL.—Entities approved by the there has been reported to the House in- same as if no Commission bill had been re- Neighborhood Reinvestment Corporation or volved a Commission bill, whichever is ear- ceived from the other House; and the Secretary and State housing finance en- lier, such committee shall be deemed to be (C) notwithstanding subparagraph (B), the tities receiving funds under this title shall discharged from further consideration of vote on final passage shall be on the Com- work to identify and coordinate with State such Commission bill, and such Commission mission bill of the other House. and local non-profit organizations operating bill shall be placed on the appropriate cal- Upon disposition of a Commission bill that is statewide toll-free foreclosure prevention endar of the House involved. received by one House from the other House, hotlines, including those that— (b) EXPEDITED PROCEDURE.— it shall no longer be in order to consider the (1) serve as a consumer referral source and (1) CONSIDERATION.— Commission bill that was introduced in the data repository for borrowers experiencing (A) IN GENERAL.—Not later than 5 calendar receiving House. some form of delinquency or foreclosure; days after the date on which a committee (c) RULES OF THE SENATE AND THE HOUSE OF has reported a Commission bill or been dis- REPRESENTATIVES.—This section is enacted (2) connect callers with local housing coun- charged from consideration of a Commission by Congress— seling agencies approved by the Neighbor- bill, the majority leader of the Senate, or the (1) as an exercise of the rulemaking power hood Reinvestment Corporation or the Sec- majority leader’s designee, or the Speaker of of the Senate and the House of Representa- retary to assist with working out a positive the House of Representatives, or the Speak- tives, respectively, and is deemed to be part resolution to their mortgage delinquency or er’s designee, shall move to proceed to the of the rules of each House, respectively, but foreclosure; or consideration of the Commission bill. It applicable only with respect to the procedure (3) facilitate or offer free assistance to help shall also be in order for any member of the to be followed in that House in the case of a homeowners to understand their options, ne- Senate or the House of Representatives, re- Commission bill, and it supersedes other gotiate solutions, and find the best resolu- spectively, to move to proceed to the consid- rules only to the extent that it is incon- tion for their particular circumstances. eration of the Commission bill at any time sistent with such rules; and after the conclusion of such 5-day period. (2) with full recognition of the constitu- SA 4399. Mr. COBURN submitted an (B) MOTION TO PROCEED.—A motion to pro- tional right of either House to change the amendment intended to be proposed by ceed to the consideration of a Commission rules (so far as they relate to the procedure him to the bill H.R. 3221, moving the bill is highly privileged in the House of Rep- of that House) at any time, in the same man- United States toward greater energy

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00139 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.097 S03APPT1 ccoleman on PRODPC75 with SENATE S2506 CONGRESSIONAL RECORD — SENATE April 3, 2008 independence and security, developing (e) DEFINITIONS.—As used in this section— him to the bill H.R. 3221, moving the innovative new technologies, reducing (1) the term ‘‘congressionally directed United States toward greater energy carbon emissions, creating green jobs, spending item’’ has the same meaning given independence and security, developing protecting consumers, increasing clean that term under section 521 of the Honest innovative new technologies, reducing Leadership and Open Government Act of 2007 renewable energy production, and mod- (Public Law 110-81); and carbon emissions, creating green jobs, ernizing our energy infrastructure, and (2) the term ‘‘section 8 voucher’’ means a protecting consumers, increasing clean to amend the Internal Revenue Code of voucher available to eligible veterans under renewable energy production, and mod- 1986 to provide tax incentives for the section 8(o)(19) of the United States Housing ernizing our energy infrastructure, and production of renewable energy and en- Act of 1937 (42 U.S.C. 1437f(o)(19)). to amend the Internal Revenue Code of ergy conservation; which was ordered 1986 to provide tax incentives for the Mr. COBURN submitted an to lie on the table; as follows: SA 4400. production of renewable energy and en- amendment intended to be proposed by At the appropriate place, insert the fol- ergy conservation; which was ordered him to the bill H.R. 3221, moving the lowing: to lie on the table; as follows: United States toward greater energy SEC. lll. VETERANS HOUSING. independence and security, developing At the appropriate place, insert the fol- (a) SHORT TITLE.—This section may be lowing new section: innovative new technologies, reducing cited as the ‘‘Housing for Heroes Act of SEC. ll. NATIONAL CONSUMER CREDIT USURY 2008’’. carbon emissions, creating green jobs, RATE. (b) AUTHORITY OF THE SECRETARY TO RE- protecting consumers, increasing clean Section 107 of the Truth in Lending Act (15 PROGRAM FUNDS.—Notwithstanding any renewable energy production, and mod- U.S.C. 1606) is amended by adding at the end other provision of law, the Secretary of ernizing our energy infrastructure, and the following: Housing and Urban Development may repro- to amend the Internal Revenue Code of ‘‘(f) NATIONAL CONSUMER CREDIT USURY gram any funds appropriated or otherwise 1986 to provide tax incentives for the RATE.—The annual percentage rate applica- made available under this or any other Act ble to any extension of credit may not ex- for the Department of Housing and Urban production of renewable energy and energy conservation; which was ordered ceed by more than 8 percentage points the Development that are intended to be used for rate established under section 6621(a)(2) of any congressionally directed spending item to lie on the table; as follows: the Internal Revenue Code of 1986, as deter- to provide housing assistance to veterans of At the appropriate place, insert the fol- mined by the Board.’’. the Armed Forces who are eligible for hous- lowing: ing assistance under the laws administered SEC. lll. REPORT ON FEDERAL HOUSING AS- SA 4402. Mr. MENENDEZ submitted by the Secretary. SISTANCE PROGRAMS. an amendment intended to be proposed (c) REPORT OF THE SECRETARY ON VETERANS Not later than 2 years after the date of en- by him to the bill H.R. 3221, moving the HOUSING.—Prior to September 30 of each fis- actment of this Act, the Comptroller General cal year beginning with fiscal year 2008, the of the United States shall submit to Con- United States toward greater energy Secretary of Housing and Urban Develop- gress a report that contains— independence and security, developing ment shall report annually to Congress and (1) a complete list of all programs adminis- innovative new technologies, reducing make available on its public Internet tered by the Department of Housing and carbon emissions, creating green jobs, website a description of: Urban Development that provide housing as- protecting consumers, increasing clean (1) The total number of veterans of the sistance; renewable energy production, and mod- Armed Forces who sought housing assistance (2) for each program listed under paragraph ernizing our energy infrastructure, and under any law administered by the Secretary (1)— to amend the Internal Revenue Code of in the preceding 12 months. (A) the total amount of Federal funds used (2) The total number of veterans of the to carry out each program in the most re- 1986 to provide tax incentives for the Armed Forces who received any such housing cent fiscal year for which comparable data is production of renewable energy and en- assistance in the preceding 12 months. available; ergy conservation; which was ordered (3) The total number of veterans of the (B) the proportion of funding spent on di- to lie on the table; as follows: Armed Forces who did not receive such hous- rect housing assistance for each program in At the end of title IV, insert the following: ing assistance due to a lack of funding in the the most recent fiscal year and the propor- SEC. ll. FINANCIAL EDUCATION AND COUN- preceding 12 months. tion spent on administration, counseling, SELING ASSISTANCE ACT OF 2007. (4) The total number of section 8 vouchers and other activities not directly related to (a) SHORT TITLE.—This section may be applied for by veterans of the Armed Forces housing support; cited as the ‘‘Financial Education and Coun- (5) The total number of section 8 vouchers (C) the amount of improper payments or seling Assistance Act of 2007’’. provided to veterans of the Armed Forces fraud identified or estimated in each pro- (b) FINANCIAL EDUCATION AND COUN- who were eligible for such vouchers. gram in the most recent fiscal year; and SELING.— (6) The total number of section 8 vouchers (D) the findings of any performance re- (1) DEMONSTRATION PROGRAM.—Section 106 that could not be provided to veterans of the views of effectiveness with respect to achiev- of the Housing and Urban Development Act Armed Forces who were determined eligible ing the goals of the program conducted by of 1968 (12 U.S.C. 1701x) is amended by adding for such vouchers within 6 months of that the Director of the Office of Management at the end the following: veteran submitting an application pursuant and Budget, the Comptroller General, or ‘‘(g) FINANCIAL EDUCATION AND COUN- to section 8(o)(19) of the United States Hous- other agencies of each program within the SELING.— ing Act of 1937 (42 U.S.C. 1437f(o)(19) due to a previous 10 years (noting if no such review ‘‘(1) PURPOSES.—The purposes of this sub- lack of funding. was conducted); section are to— (7) The total number and cost of congres- (3) a description of the funding formula for ‘‘(A) increase financial education and sionally directed spending items in the an- each housing grant program administered by counseling services available to homeowners nual budget of the Department of Housing the Department of Housing and Urban Devel- and prospective homebuyers; and Urban Development. opment with recommendations to ensure ‘‘(B) assist homeowners and prospective (8) The number and total amount of con- better equity in distribution and targeting of homebuyers to develop monthly budgets, gressionally directed spending items in the such funds to assist those without perma- build personal savings, finance or plan for annual budget of the Department of Housing nent housing; major purchases, reduce their debt, improve and Urban Development that have been re- (4) a description of the amounts the Fed- their financial stability, and set and reach programmed to support housing assistance eral Government has spent on housing as- their financial goals; for veterans of the Armed Forces. sistance over the past 25 years and how the ‘‘(C) help homeowners and prospective (9) A listing of any congressionally di- number of those in the country without per- homebuyers understand their credit histories rected spending items for which funding was manent housing today compares to the same and its relationship to their credit score, so not reprogrammed and an explanation for number 25 years ago; and as to improve their credit score; each why such funds were not reprogrammed (5) as of the date of the completion of the ‘‘(D) educate homeowners and prospective if there are any veterans of the Armed report— homebuyers about the options available to Forces who are not receiving housing assist- (A) the number of employees of the Depart- build savings or plan for retirement; and ance due to a lack of funding. ment of Housing and Urban Development, in- ‘‘(E) provide financial education and coun- (d) CURRENT FUNDING.—For fiscal year 2008, cluding contractors and other individuals seling for homeowners and prospective the Secretary of Housing and Urban Develop- whose salary is paid in full or part by the De- homebuyers seeking to understand or im- ment may reprogram any unobligated funds partment; and prove their credit, savings, bill payments, or appropriated or otherwise made available (B) the number of individuals who receive other personal financial needs. under any prior Act for the Department of housing assistance from the Department. ‘‘(2) AUTHORITY.—The Secretary of Housing Housing and Urban Development that are in- and Urban Development shall carry out a tended to be used for any congressionally di- SA 4401. Mr. SANDERS submitted an grant program to assist eligible organiza- rected spending item. amendment intended to be proposed by tions to provide financial education and

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00140 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.089 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2507 counseling services to homeowners and pro- U.S.C. 9702) in order to avoid duplication and 1986 to provide tax incentives for the spective homebuyers. to utilize the resources and experience of the production of renewable energy and en- ‘‘(3) GRANTS.— Commission. ergy conservation; which was ordered ‘‘(A) IN GENERAL.—The Secretary shall ‘‘(8) OUTREACH.— to lie on the table; as follows: make grants to eligible organizations to en- ‘‘(A) TO INDIVIDUALS.—The Secretary, in able such organization to provide a range of cooperation with eligible organizations, At the end, insert the following: financial education and counseling services shall— TITLE VIII—NATIONAL AFFORDABLE to homeowners and prospective homebuyers. ‘‘(i) carry out outreach efforts to ensure HOUSING TRUST FUND ‘‘(B) SELECTION.—The Secretary shall se- that homeowners and prospective home- SEC. 801. SHORT TITLE. lect organizations to receive assistance buyers are aware of the financial education This title may be cited as the ‘‘National under this subsection based on their experi- and counseling opportunities under this sub- Affordable Housing Trust Fund Act of 2008’’. ence and ability to provide financial edu- section; and cation and counseling services to home- SEC. 802. NATIONAL AFFORDABLE HOUSING ‘‘(ii) make an special effort to serve indi- TRUST FUND. owners and prospective homebuyers. viduals who— (a) IN GENERAL.—Title II of the Cranston- ‘‘(C) PREFERENCE.—The Secretary shall ‘‘(I) qualify for the earned income tax cred- Gonzalez National Affordable Housing Act give preference to established community- it under section 32 of the Internal Revenue (42 U.S.C. 12721 et seq.) is amended by adding based financial education and counseling or- Code; at the end the following new subtitle: ganizations capable of providing in-person ‘‘(II) have a low credit score, damaged services. credit, or are without sufficient data to cre- ‘‘Subtitle G—National Affordable Housing ‘‘(4) ELIGIBLE ORGANIZATIONS.—To be eligi- ate a credit score; Trust Fund ble to receive a grant under this subsection, ‘‘(III) are in danger of filing for bank- ‘‘SEC. 291. PURPOSES. an eligible organization shall be a— ruptcy; ‘‘The purposes of this subtitle are— ‘‘(A) housing counseling agency certified ‘‘(IV) are subject to, or are in danger of, be- ‘‘(1) to address the national shortage of by the Secretary under subsection (e); coming subject to foreclosure proceedings; housing that is affordable to low-income ‘‘(B) nonprofit organization organized and families by creating a permanently appro- under section 501(c)(3) of the Internal Rev- ‘‘(V) have low levels of personal saving, low priated fund, with dedicated sources of fund- enue Code; net-worth, or high levels of debt. ing, to finance additional housing activities, ‘‘(C) State, local, or tribal government ‘‘(B) TO GRANTEES.—The Secretary shall without supplanting existing housing appro- agency; or also make an effort to publish grant opportu- priations or existing State and local funding ‘‘(D) community development financial in- nities under this subsection to eligible orga- for affordable housing; stitution (as defined in section 103(5) of the nizations who may not typically seek out ‘‘(2) to enable rental housing to be built, Community Development Banking and Fi- such Federal funding. for families with the greatest economic need, nancial Institutions Act of 1994 (12 U.S.C. ‘‘(9) STUDY AND REPORT ON EFFECTIVENESS in mixed-income settings and in areas with 4702(5)) or a credit union. AND IMPACT.— the greatest economic opportunities; ‘‘(5) ELIGIBLE USES.—A grant awarded to an ‘‘(A) IN GENERAL.—Not later than 2 years ‘‘(3) to promote ownership of one-to-four eligible organization under this subsection after the date of enactment of the Financial family owner-occupied housing by low-in- shall be used to provide a range of financial Education and Counseling Assistance Act of come families; and education and counseling services, includ- 2007, the Inspector General of the Depart- ‘‘(4) to construct, rehabilitate, and pre- ing— ment of Housing and Urban Development serve at least 1,500,000 affordable dwelling ‘‘(A) assisting in the expansion of mort- shall conduct a study and report to the Com- units over the next decade. gage and housing-related financial coun- mittee on Banking, Housing, and Urban Af- seling services; ‘‘SEC. 292. TRUST FUND. fairs of the Senate and the Committee on Fi- ‘‘(B) providing information on important ‘‘(a) ESTABLISHMENT.—There is established nancial Services of the House of Representa- financial topics to homeowners and prospec- in the Treasury of the United States a trust tives on the effectiveness and impact of the tive homebuyers; and fund to be known as the National Affordable ‘‘(C) assisting homeowners and prospective grant program established under this sub- Housing Trust Fund. homebuyers to— section. ‘‘(b) DEPOSITS TO TRUST FUND.—There shall ‘‘(i) develop sustainable monthly budgets; ‘‘(B) CONTENT OF STUDY.—The study re- be authorized to be appropriated to the Trust ‘‘(ii) understand their credit history and quired under subparagraph (A) shall include Fund such sums as necessary to carry out their credit scores, so as to improve their the following: this subtitle for fiscal years 2009 and 2010. credit score; ‘‘(i) The effectiveness of the grant program ‘‘(c) EXPENDITURES FROM TRUST FUND.— ‘‘(iii) develop a plan to manage their bills, established under this subsection in improv- Amounts in the Trust Fund shall be avail- reduce their debt, and improve their savings; ing the financial situation of homeowners able to the Secretary of Housing and Urban and and prospective homebuyers served by the Development, and are hereby appropriated, ‘‘(iv) set and reach their financial goals. grant program. for providing assistance under this subtitle. ‘‘(6) COUNSELING ACTIVITIES.— ‘‘(ii) The impact of the financial education ‘‘(d) FEDERAL ASSISTANCE.—All assistance ‘‘(A) REGULATIONS.—The Secretary shall and counseling services provided under this provided using amounts in the Trust Fund develop and issue guidelines and regulations subsection on reducing debt, building sav- shall be considered to be Federal financial to carry out the financial education and ings, and improving the overall financial assistance. counseling program established under this well-being of homeowners and prospective ‘‘SEC. 293. ALLOCATIONS FOR STATES, INDIAN subsection. homebuyers served by the grant program. TRIBES, INSULAR AREAS, AND PAR- ‘‘(B) CONTENT OF REGULATIONS.—The guide- ‘‘(iii) An evaluation of the effectiveness TICIPATING LOCAL JURISDICTIONS. lines and regulations required under sub- and quality of the counselors providing fi- ‘‘(a) DETERMINATION OF AMOUNT AVAILABLE paragraph (A) shall be modeled on the regu- nancial education and counseling services FOR FISCAL YEAR.—For fiscal year 2009 and lations issued by the Secretary pursuant to under the grant program. for each fiscal year thereafter, the Secretary the housing counseling program under sub- ‘‘(10) AUTHORIZATION OF APPROPRIATIONS.— shall determine the total amount available section (c) and shall require each eligible or- There are authorized to be appropriated such from the Trust Fund pursuant to section ganization under this subsection to— sums as are necessary to carry out this sub- 292(c) for assistance under this subtitle and ‘‘(i) conduct a preliminary interview with a section.’’. shall use such amount to provide such assist- homeowner or prospective homebuyer to de- (2) CERTIFICATION OF FINANCIAL COUN- ance for such fiscal year. termine the financial needs of such home- SELORS.—Section 106(e)(1) of the Housing and ‘‘(b) ALLOCATION.—For each such fiscal owner or renter; Urban Development Act of 1968 (12 U.S.C. year, of such total amount available from ‘‘(ii) develop a financial plan tailored to 1701x(e)(1)) is amended by striking ‘‘(c), or the Trust Fund, the Secretary shall allocate meet the financial needs of such homeowner (d),’’ and inserting ‘‘(c), (d), or (g)’’. for use under section 294— or prospective homebuyer; and ‘‘(1) 40 percent for States, Indian tribes, ‘‘(iii) help each such homeowner or pro- SA 4403. Mr. KERRY (for himself and and insular areas; and spective homebuyer achieve their financial Ms. SNOWE) submitted an amendment ‘‘(2) 60 percent for participating local juris- goals. intended to be proposed by him to the dictions. ‘‘(7) COORDINATION WITH THE FINANCIAL LIT- bill H.R. 3221, moving the United ‘‘SEC. 294. ASSISTANCE FROM TRUST FUND. ERACY AND EDUCATION COMMISSION.—In devel- States toward greater energy independ- ‘‘(a) AFFORDABLE HOUSING NEEDS FOR- oping the guidelines and regulations required ence and security, developing innova- MULA.— under paragraph (6) and in carrying out the tive new technologies, reducing carbon ‘‘(1) ESTABLISHMENT AND FACTORS.—The grant program established under this sub- emissions, creating green jobs, pro- Secretary shall establish a formula to allo- section, the Secretary shall seek advice from cate amounts made available for a fiscal and work in coordination with the Financial tecting consumers, increasing clean re- year for assistance under this subtitle among Literacy and Education Commission estab- newable energy production, and mod- States, all Indian tribes, insular areas, and lished under section 513 of the Fair and Ac- ernizing our energy infrastructure, and participating local jurisdictions based on the curate Credit Transactions Act of 2003 (20 to amend the Internal Revenue Code of relative needs of such entities, for funds to

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00141 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.098 S03APPT1 ccoleman on PRODPC75 with SENATE S2508 CONGRESSIONAL RECORD — SENATE April 3, 2008 increase the supply of decent quality afford- the formula amount for the State, insular ‘‘(ii) no reduction pursuant to clause (i) for able housing. The formula shall be based area, or participating jurisdiction, respec- any State may reduce the formula amount upon a comparison of the following factors tively. for the State to less than 0.5 percent of such with respect to each State, Indian tribes, ‘‘(3) SUBMISSION TO CONGRESS.—Notwith- total amount allocated for such fiscal year. each insular area, and each participating standing any other provision of this subtitle, ‘‘(2) INDIAN TRIBES AND INSULAR AREAS.— local jurisdiction: any formula established by the Secretary The allocation for Indian tribes and for each ‘‘(A) The ratio of the population of the pursuant to this subsection shall be sub- insular area shall be the formula amount for State, Indian tribes, insular area, or partici- mitted to the Committee on Financial Serv- Indian tribes or for the insular area, respec- pating jurisdiction, to the aggregate popu- ices of the House of Representatives and the tively, determined under subsection (b), as lation of all States, Indian tribes, insular Committee on Banking, Housing, and Urban applicable. areas, and participating jurisdictions. Affairs of the Senate not less than 120 days ‘‘(3) PARTICIPATING LOCAL JURISDICTIONS.— ‘‘(B) The percentage of families in the ju- before application of the formula for pur- Subject to subsection (d), the allocation for risdiction of the State, of Indian tribes, or of poses of determining formula amounts under each participating local jurisdiction shall be the insular area or participating jurisdiction subsection (b) for a fiscal year. Such submis- the formula amount for the jurisdiction de- that live in substandard housing. sion shall be accompanied by a detailed ex- termined under subsection (b). ‘‘(C) The percentage of families in the ju- planation of the factors under the formula ‘‘(d) ALLOCATION EXCEPTION FOR YEARS IN risdiction of the State, of Indian tribes, or of and anticipated effects of the formula. WHICH LESS THAN $2 BILLION IS AVAILABLE.— the insular area or participating jurisdiction ‘‘(b) FORMULA AMOUNT.— If, for any fiscal year, the total amount that pay more than 50 percent of their an- ‘‘(1) IN GENERAL.—For each fiscal year re- available pursuant to section 293(a) for as- nual income for housing costs. ferred to in section 293(a), the Secretary sistance under this subtitle is less than ‘‘(D) The percentage of persons in the juris- shall determine the formula amount under $2,000,000,000— diction of the State, of Indian tribes, or of this subsection for each State, for Indian ‘‘(1) for each participating local jurisdic- the insular area or participating jurisdiction tribes, for each insular area, and for each tion having a formula amount for such fiscal having an income at or below the poverty participating local jurisdiction. year of less than $750,000, the allocation shall line. ‘‘(2) STATES, INDIAN TRIBES, AND INSULAR be $0, except that the allocation for such a ‘‘(E) The cost of constructing or carrying AREAS.—The formula amount for each State, jurisdiction for such fiscal year shall be the out rehabilitation of housing in the jurisdic- for Indian tribes, and for each insular area formula amount for the jurisdiction for such tion of the State, of Indian tribes, or of the shall be the amount determined for such fiscal year if— insular area or participating jurisdiction. State, for Indian tribes, or for such insular ‘‘(A) the Secretary finds that the jurisdic- ‘‘(F) The percentage of the population of area by applying the formula under sub- tion has demonstrated a capacity to carry the State, of Indian tribes, or of the insular section (a) of this section to the total out provisions of this subtitle and the State area or participating jurisdiction that re- amount allocated under section 293(b)(1) for in which such jurisdiction is located has au- sides in counties having extremely low va- all States, Indian tribes, and insular areas thorized the Secretary to transfer to the ju- cancy rates. for the fiscal year. risdiction a portion of the State’s allocation ‘‘(G) The percentage of housing stock in ‘‘(3) PARTICIPATING LOCAL JURISDICTIONS.— that is equal to or greater than the dif- the jurisdiction of the State, of Indian ference between the jurisdiction’s formula tribes, or of the insular area or participating The formula amount for each participating amount and $750,000, or the State or jurisdic- jurisdiction that is extremely old housing. local jurisdiction shall be the amount deter- tion has made available such an amount ‘‘(H) For the jurisdiction of a State, of In- mined for such participating local jurisdic- from the State’s or jurisdiction’s own dian tribes, or of an insular area or partici- tion by applying the formula under sub- sources available for use by the jurisdiction pating jurisdiction that has an extremely section (a) of this section to the total low percentage of affordable rental housing, amount allocated under section 293(b)(2) for in accordance with this subtitle; or the extent to which the State, Indian tribes, all participating local jurisdictions for the ‘‘(B) the formula amount for such jurisdic- or the insular area or participating jurisdic- fiscal year. tion for such fiscal year is an amount that is tion has in the preceding fiscal year in- ‘‘(4) NOTICE.—For each fiscal year referred greater than the formula amount for such creased the percentage of rental housing to in section 293(a), not later than 60 days fiscal year for any other participating local within its jurisdiction that is affordable after the date that the Secretary determines jurisdiction that is located in the same housing. the total amount available from the Trust State; and ‘‘(I) The relationship between the median Fund for such fiscal year pursuant to section ‘‘(2) in the case of any jurisdiction whose family income for the area, as determined by 292(c) for assistance under this subtitle, the allocation is $0 by operation of paragraph (1), the Secretary, and fair market rent. Secretary shall cause to be published in the the allocation for the State in which such ‘‘(J) Any other factors that the Secretary Federal Register a notice that such amounts participating local jurisdiction is located determines to be appropriate. shall be so available. shall be increased by the amount of the for- ‘‘(2) FAILURE TO ESTABLISH.—If, in any fis- ‘‘(c) ALLOCATION BASED ON AFFORDABLE mula amount for the participating local ju- cal year referred to in section 293(a), the reg- HOUSING NEEDS FORMULA.—The allocation risdiction. ulations establishing the formula required under this subsection for a State, for Indian Any adjustments pursuant to paragraphs (1) under paragraph (1) of this subsection have tribes, for an insular area, or for a local par- and (2) shall be made notwithstanding the al- not been issued by the date that the Sec- ticipating jurisdiction for a fiscal year shall location percentages under section 293(b). retary determines the total amount avail- be determined as follows: ‘‘(e) GRANT AWARDS.—For each fiscal year able from the Trust Fund for assistance ‘‘(1) STATES.—Subject to subsection (d), the referred to in section 293(a), using the under this subtitle for such fiscal year pursu- allocation for a State shall be as follows: amounts made available to the Secretary ant to section 292(c), or there has been en- ‘‘(A) MINIMUM AMOUNT.—If the formula from the Trust Fund for such fiscal year acted before such date a joint resolution ex- amount determined under subsection (b)(2) under section 292(c), the Secretary shall, sub- pressly disapproving the use of the formula for the State for the fiscal year is less than ject to subsection (f), make a grant to each required under paragraph (1) and submitted 1 percent of the total amount allocated for State, insular area, and participating local to the Congress pursuant to paragraph (3), such fiscal year under section 293(b)(1), the jurisdiction in the amount of the allocation for purposes of such fiscal year— allocation for the State shall be 1 percent of under subsection (a)(2), (c), or (d), as applica- ‘‘(A) section 293(b), paragraphs (2) and (3) of the total amount allocated for such fiscal ble, for the State, area, or jurisdiction, re- subsection (b) of this section, and subsection year under section 293(b)(1). spectively. (c) of this section shall not apply; ‘‘(B) FORMULA AMOUNT.—If the formula ‘‘(f) MATCHING REQUIREMENT.— ‘‘(B) the allocation for Indian tribes shall amount determined under subsection (b)(2) ‘‘(1) IN GENERAL.—Each grantee for a fiscal be such amount as the Secretary shall estab- for the State for the fiscal year is 0.5 percent year shall contribute to eligible activities lish; and or more of the total amount allocated for funded with Trust Fund grant amounts, or ‘‘(C) the formula amount for each State, such fiscal year under section 293(b)(1), the require the contribution to such eligible ac- insular area, or participating local jurisdic- allocation for the State shall be the formula tivities by recipients of such Trust Fund tion shall be determined by applying, for amount for the State, except that— grant amounts of, in addition to any such such State, insular area, or participating ‘‘(i) the Secretary shall reduce such for- grant amounts, not less than the following local jurisdiction, the percentage that is mula amounts for all States whose alloca- amount: equal to the percentage of the total amounts tions are determined under this subpara- ‘‘(A) STATE, LOCAL, OR PRIVATE RE- made available for such fiscal year for allo- graph on a pro rata basis, except as provided SOURCES.—To the extent that such contrib- cation under subtitle A of this title (42 in clause (ii), by the amount necessary to ac- uted amounts are derived from State, local, U.S.C. 12741 et seq.) that are allocated in count for any increases from the formula or private resources, 12.5 percent of such such year, pursuant to such subtitle, to such amount for allocations made under subpara- grant amounts. State, insular area, or participating local ju- graph (A), so that the total of the allocations ‘‘(B) FEDERAL AMOUNTS.—To the extent risdiction, respectively, and the allocation for all States pursuant to this paragraph is that such contributed amounts are derived for each State, insular area, or participating equal to the aggregate of the formula from State- or locally-controlled amounts jurisdiction, for purposes of subsection (e) amounts under subsection (b)(2) for all from Federal assistance, or from amounts shall, except as provided in subsection (d), be States; and made available under the affordable housing

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program of a Federal Home Loan Bank pur- ‘‘(1) AVAILABLE AMOUNTS.—For a fiscal ‘‘SEC. 295. ALLOCATION PLANS. suant to section 10(j) of the Federal Home year, the following amounts shall be avail- ‘‘(a) IN GENERAL.—Each grantee that is a Loan Bank Act (12 U.S.C. 1430(j)), 25 percent able for grants under this subsection: State, insular area, participating local juris- of such grant amounts. ‘‘(A) ALLOCATION FOR AREAS NOT SUBMIT- diction, or grantee under section 294(i) for a Nothing in this paragraph may be construed TING ALLOCATION PLANS.—With respect to fiscal year, shall establish an allocation plan in accordance with this section for the dis- to prevent a grantee or recipient from com- each State, insular area, or participating tribution of Trust Fund grant amounts pro- plying with this paragraph only by contribu- local jurisdiction that has not, before the ex- vided to the grantee for such fiscal year, tions in accordance with subparagraph (A), piration of the 12-month period beginning which shall be a plan that— only by contributions in accordance with upon the date of the publication of the no- ‘‘(1) provides for use of such amounts in ac- subparagraph (B), or by a combination of tice of funding availability for such fiscal cordance with section 296; such contributions. year under subsection (b)(4), submitted to and had approved by the Secretary an alloca- ‘‘(2) is based on priority housing needs, in- ‘‘(2) REDUCTION OR WAIVER FOR RECIPIENTS tion plan for such fiscal year meeting the re- cluding priority housing needs in rural areas, IN FISCAL DISTRESS.—The Secretary may re- as determined by the grantee; and duce or waive the requirement under para- quirements of section 295, the amount of the allocation for such State, insular area, or ‘‘(3) is consistent with the comprehensive graph (1) with respect to any grantee that housing affordability strategy under section the Secretary determines, pursuant to such participating local jurisdiction for such fiscal year determined under this section. 105 (42 U.S.C. 12705) or any applicable consoli- demonstration by the recipient as the Sec- ‘‘(B) UNMATCHED PORTION OF ALLOCATION.— dated submission used for purposes of apply- retary shall require, is in fiscal distress. The With respect to any grantee for which the ing for other community planning and devel- Secretary shall make determinations regard- Trust Fund grant amount awarded for such opment and housing assistance programs ad- ing fiscal distress for purposes of this para- fiscal year is reduced from the amount of the ministered by the Secretary, for the applica- graph in the same manner, and according to allocation determined under this section for ble State, insular area, jurisdiction, or the same criteria, as fiscal distress is deter- the grantee by reason of failure comply with grantee under section 294(i). mined with respect to jurisdictions under the requirements under subsection (f), the ‘‘(b) ESTABLISHMENT.—In establishing an section 220(d) (42 U.S.C. 12750(d)). amount by which such allocation for the allocation plan, a grantee described in sub- UALIFICATION OF SERVICES FUNDING ‘‘(3) Q grantee for the fiscal year exceeds the Trust section (a) shall notify the public of the es- FOR MATCH.—For purposes of meeting the re- Fund grant amount for the grantee for the tablishment of the plan, provide an oppor- quirements of paragraph (1), amounts that a fiscal year. tunity for public comments regarding the grantee, recipient, or other governmental or ‘‘(C) UNCOMMITTED AMOUNTS.—Any Trust plan, consider any public comments re- private agency or entity commits to con- Fund grant amounts for a fiscal year that ceived, and make the completed plan avail- tribute to provide services to residents of af- are not committed for use for eligible activi- able to the public. fordable housing provided using grant ties before the expiration of the 24-month pe- ‘‘(c) CONTENTS.—Each allocation plan of a amounts under this subtitle, by entering riod beginning upon the date of the publica- grantee described in subsection (a) shall into a binding commitment for such con- tion of the notice of availability of amounts comply with the following requirements: tribution as the Secretary shall require, under subsection (b)(4) for such fiscal year. ‘‘(1) APPLICATION REQUIREMENTS FOR ELIGI- shall be considered contributions to eligible ‘‘(D) UNUSED AMOUNTS.—Any Trust Fund BLE RECIPIENTS.—The allocation plan shall activities. Amounts to be considered eligible grant amounts for which the grantee notifies set forth the requirements for eligible recipi- contributions under this paragraph shall not the Secretary that such funds will not be ents to apply to the grantee to receive as- exceed 33 percent of the total cost of the eli- used under this subtitle. sistance from Trust Fund grant amounts of gible activity. ‘‘(2) NOTICE.—For each fiscal year, not the grantee for use for eligible activities, in- ‘‘(4) REDUCTION OR WAIVER FOR CERTAIN AC- later than 60 days after the date that the cluding a requirement that each such appli- TIVITIES.—With respect to Trust Fund grant Secretary determines that the amounts de- cation include— amounts made available for a fiscal year, the scribed in paragraph (1) shall be available for ‘‘(A) a description of the eligible activities Secretary shall reduce or waive the amount grants under this subsection, the Secretary to be conducted using such assistance; of contributions otherwise required under shall cause to be published in the Federal ‘‘(B) a certification by the eligible recipi- paragraph (1) to be made with respect to eli- Register a notice that such amounts shall be ent applying for such assistance that any gible activities to be carried out with such so available. housing assisted with such grant amounts grant amounts and for which any variance ‘‘(3) APPLICATIONS.—The Secretary shall will comply with— from zoning laws or other waiver of regu- provide for nonprofit and public entities (and ‘‘(i) all of the requirements under this sub- latory requirements was approved by the consortia thereof, which may include re- title, including the targeting requirements local jurisdiction. Such reduction may be gional consortia of units of local govern- under section 296(c) and the affordable hous- implemented in the year following the year ment) to submit applications, during the 9- ing requirements under section 297; in which such activities are funded with month period beginning upon publication of ‘‘(ii) section 808(d) of the Fair Housing Act Trust Fund grant amounts. a notice of funding availability under para- (relating to the obligation to affirmatively ‘‘(5) WAIVER FOR DISASTER AREAS.—In the graph (2) for a fiscal year, for a grant of all further fair housing); and case of any area that is subject to a declara- or a portion of the amounts referred to in ‘‘(iii) section 504 of the Rehabilitation Act tion by the President of a major disaster or paragraph (1) for such fiscal year. Such an of 1973 (relating to prohibition of discrimina- emergency under the Robert T. Stafford Dis- application shall include a certification that tion on the basis of disability); and aster Relief and Emergency Assistance Act the applicant will comply with all require- ‘‘(C) in the case of any recipient who has (42 U.S.C. 5121), the Secretary shall, for the ments of this subtitle applicable to a grantee received assistance from Trust Fund grant fiscal year following such declaration, waive under this subsection. amounts in any previous fiscal year, a report the requirement under paragraph (1) with re- ‘‘(4) SELECTION CRITERIA.—The Secretary on the progress made in carrying out the eli- spect to any eligible activities to be carried shall, by regulation, establish criteria for se- gible activities funded with such previous as- out in such area. lecting applicants that meet the require- sistance. ‘‘(g) COMPETITIVE GRANTS FOR INDIAN ments of paragraph (3) for funding under this ‘‘(2) SELECTION PROCESS AND CRITERIA FOR TRIBES.—For each fiscal year referred to in subsection. Such criteria shall give priority ASSISTANCE.— section 293(a), the Secretary shall, using to applications that provide that grant ‘‘(A) SELECTION PROCESS.—The allocation amounts allocated for Indian tribes pursuant amounts under this subsection will be used plan shall set forth a process for the grantee to subsection (a)(2)(B) or (c)(2), as applicable, for eligible activities relating to affordable to select eligible activities meeting the and subject to subsection (f), make grants to housing that is located in the State or insu- grantee’s priority housing needs for funding Indian tribes on a competitive basis, based lar area, as applicable, for which such grant with Trust Fund grant amounts of the grant- upon such criteria as the Secretary shall es- funds were originally allocated under this ee, which shall comply with requirements for tablish, which shall include the factors spec- section. such process as the Secretary shall, by regu- ified in section 295(c)(2)(B). ‘‘(5) AWARD AND USE OF GRANT ASSIST- lation, establish. ANCE.— ‘‘(B) SELECTION CRITERIA.—The allocation ‘‘(h) USE BY STATE OF UNUSED FUNDS OF ‘‘(A) AWARD.—Subject only to the absence plan shall set forth the factors for consider- LOCAL JURISDICTIONS.—If any participating of applications meeting the requirements of ation in selecting among applicants that local jurisdiction for which an allocation is paragraph (3), upon the expiration of the pe- meet the application requirements estab- made for a fiscal year pursuant to this sec- riod referred to in such paragraph, the Sec- lished pursuant to paragraph (1), which shall tion notifies the Secretary of an intent not retary shall select an applicant or applicants provide for geographic diversity among eligi- to use all or part of such funds, any such under this subsection to receive the amounts ble activities to be assisted with Trust Fund funds that will not be used by the jurisdic- available under paragraph (1) and shall make grant amounts of the grantee and shall in- tion shall be added to the grant award under a grant or grants to such applicant or appli- clude— subsection (e) for the State in which such ju- cants. The selection shall be based upon the ‘‘(i) the merits of the proposed eligible ac- risdiction is located. criteria established under paragraph (4). tivity of the applicant, including the extent ‘‘(i) COMPETITIVE GRANTS FOR AREAS WITH- ‘‘(B) USE.—Amounts from a grant under to which the activity addresses housing OUT ALLOCATION PLANS AND RECIPIENTS WITH this subsection shall be Trust Fund grant needs identified in the allocation plan of the INSUFFICIENT MATCHING CONTRIBUTIONS.— amounts for purposes of this subtitle. grantee and the applicable comprehensive

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00143 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.099 S03APPT1 ccoleman on PRODPC75 with SENATE S2510 CONGRESSIONAL RECORD — SENATE April 3, 2008 housing affordability strategy or consoli- costs for residents and thereby reduces their ‘‘(1) demonstrates the experience, ability, dated submission referred to in subsection total housing cost. and capacity (including financial capacity) (a)(3); A grantee may allocate a portion of funds to undertake, comply, and manage the eligi- ‘‘(ii) the experience of the applicant, in- under this section for use by such grantee for ble activity; cluding its principals, in carrying out eligible activities pursuant to the selection ‘‘(2) demonstrates its familiarity with the projects similar to the proposed eligible ac- process under subparagraph (A). requirements of any other Federal, State or tivity; ‘‘(3) USE FOR FIRST RESPONDERS AND TEACH- local housing program that will be used in ‘‘(iii) the ability of the applicant to obli- ERS.—To the extent that Trust Fund grant conjunction with such grant amounts to en- gate grant amounts for the proposed eligible amounts of a grantee are made available for sure compliance with all applicable require- activities and to undertake such activities in eligible activities involving one- to four-fam- ments and regulations of such programs; and a timely manner; ily owner-occupied housing, the grantee may ‘‘(3) makes such assurances to the grantee ‘‘(iv) the extent of leveraging of funds by give preference in the use of such grant as the Secretary shall, by regulation, require the applicant from private and other non- amounts to eligible activities relating to af- to ensure that the recipient will comply with Federal sources for carrying out the eligible fordable housing for first responders, public the requirements of this subtitle during the activities to be funded with Trust Fund safety officers, teachers, and other public entire period that begins upon selection of grant amounts, including assistance made employees who have family incomes such the recipient to receive such grant amounts available under section 8 of the United that such use of the grant amounts complies and ending upon the conclusion of all eligi- States Housing Act of 1937 (42 U.S.C. 1437f) with the requirements under section 296(c). ble activities that are engaged in by the re- ‘‘(4) PERFORMANCE GOALS, BENCHMARKS, AND cipient and funded with such grant amounts. that is devoted to the project that contains TIMETABLES.—The allocation plan shall in- ‘‘(c) TARGETING REQUIREMENTS.—The tar- the affordable housing to be assisted with clude performance goals, benchmarks, and geting requirements under this subsection such assistance; timetables for the grantee for the conducting are as follows: ‘‘(v) the extent of local assistance that will of eligible activities with Trust Fund grant ‘‘(1) REQUIREMENT OF USE OF ALL AMOUNTS be provided in carrying out the eligible ac- amounts that comply with requirements and FOR AFFORDABLE HOUSING FOR LOW-INCOME tivities, including financial assistance; standards for such goals, benchmarks, and FAMILIES.—All Trust Fund grant amounts of ‘‘(vi) the efficiency of total project fund timetables as the Secretary shall, by regula- a grantee shall be distributed for use only for use as measured by the cost per unit of the tion, establish. eligible activities relating to affordable proposal, as adjusted by factors which shall ‘‘(d) REVIEW AND APPROVAL BY SEC- housing that are for the benefit only of fami- include whether the funding with Trust Fund RETARY.— lies whose incomes do not exceed 80 percent grant amounts is for new construction, reha- ‘‘(1) SUBMISSION.—A grantee described in of the greater of— bilitation, preservation, or homeownership subsection (a) shall submit an allocation ‘‘(A) the median family income for the assistance, whether the project involves sup- plan for the fiscal year for which the grant is area in which the housing is located, as de- portive housing, differences in construction made to the Secretary not later than the ex- termined by the Secretary with adjustments and rehabilitation costs in different areas of piration of the 6-month period beginning for smaller and larger families; and the grantee, and other appropriate adjust- upon the notice of funding availability under ‘‘(B) the median family income for the ments; section 294(b)(4) for such fiscal year amounts. State or insular area in which the housing is ‘‘(vii) the degree to which the project in ‘‘(2) REVIEW AND APPROVAL OR DIS- located, as determined by the Secretary with which the affordable housing will be located APPROVAL.—The Secretary shall review and adjustments for smaller and larger families. will have residents of various incomes; approve or disapprove an allocation plan not ‘‘(2) USE OF 75 PERCENT FOR AFFORDABLE ‘‘(viii) the extent of employment and other later than the expiration of the 3-month pe- HOUSING FOR EXTREMELY LOW-INCOME FAMI- economic opportunities for low-income fami- riod beginning upon submission of the plan. LIES.—Not less than 75 percent of the Trust lies in the area in which the housing will be ‘‘(3) STANDARD FOR DISAPPROVAL.—The Sec- Fund grant amounts of a grantee for each located; retary may disapprove an allocation plan fiscal year shall be used only for eligible ac- ‘‘(ix) the extent to which the applicant only if the plan fails to comply with require- tivities relating to affordable housing that demonstrates the ability to maintain dwell- ments of this section or section 296. are for the benefit only of families whose in- ing units as affordable housing through the ‘‘(4) RESUBMISSION UPON DISAPPROVAL.—If comes do not exceed the higher of— use of assistance made available under this the Secretary disapproves a plan, the grant- ‘‘(A) 30 percent of the median family in- subtitle, assistance leveraged from non-Fed- ee may submit to the Secretary a revised come for the area in which the housing is lo- eral sources, assistance made available plan for review and approval or disapproval cated, as determined by the Secretary with under section 8 of the United States Housing under this subsection. adjustments for smaller and larger families; Act of 1937 (42 U.S.C. 1437f), State or local as- and ‘‘(5) TIMING FOR FISCAL YEAR 2009.—With resistance, programs to increase tenant inspect only to fiscal year 2009, the Secretary ‘‘(B) the poverty line (as such term is de- come, cross-subsidization, and any other re- may extend each of the periods referred to in fined in section 673 of the Omnibus Budget sources; paragraphs (1) and (2), and the period re- Reconciliation Act of 1981 (42 U.S.C. 9902), in- ‘‘(x) the extent to which the applicant ferred to in section 294(i)(1)(A), by not more cluding any revision required by such sec- demonstrates that the county in which the than 6 months. tion) applicable to a family of the size in- housing is to be located is experiencing an volved. ‘‘SEC. 296. USE OF ASSISTANCE BY RECIPIENTS. extremely low vacancy rate; ‘‘(3) USE OF 30 PERCENT FOR AFFORDABLE ‘‘(a) DISTRIBUTION TO RECIPIENTS; USE RE- ‘‘(xi) the extent to which the percentage of HOUSING FOR VERY POOR FAMILIES.—Not less QUIREMENTS.—Each grantee shall distribute the housing located in such county that is Trust Fund grant amounts of the grantee to than 30 percent of the Trust Fund grant extremely old housing exceeds 35 percent; eligible recipients for use in accordance with amounts of a grantee for each fiscal year ‘‘(xii) the extent to which the housing as- this section. Trust Fund grant amounts of a shall be used only for eligible activities re- sisted with the grant amounts will be acces- grantee may be used, or committed for use, lating to affordable housing that are for the sible to persons with disabilities; only for eligible activities that— benefit only of families whose incomes do ‘‘(xiii) the extent to which the applicant ‘‘(1) are conducted in the jurisdiction of not exceed the maximum amount of income demonstrates that the affordable housing as- the grantee; that an individual or family could have, tak- sisted with the grant amounts will be lo- ‘‘(2) in the case of a grantee that is a State, ing into consideration any income dis- cated in proximity to public transportation, insular area, participating local jurisdiction, regards, and remain eligible for benefits job opportunities, child care, and community or grantee under section 294(i), comply with under the Supplemental Security Income revitalization projects; the allocation plan of the grantee under sec- program under title XVI of the Social Secu- ‘‘(xiv) the extent to which the applicant tion 295; rity Act (42 U.S.C. 1381 et seq.). has provided that assistance from grant ‘‘(3) are selected for funding by the grantee ‘‘(4) LIMITATION FOR YEARS IN WHICH LESS amounts will be used for eligible activities in accordance with the process and criteria THAN $2 BILLION IS AVAILABLE.—If, for any fis- relating to housing located in census tracts for such selection established pursuant to cal year, the total amount available pursu- in which the number of families having in- section 295(c)(2); and ant to section 293(a) for assistance under this comes less than the poverty line is less than ‘‘(4) comply with the targeting require- subtitle is less than $2,000,000,000, in addition 20 percent; ments under subsection (c) of this section to the other requirements under this sub- ‘‘(xv) the extent to which the housing as- and the affordable housing requirements section, all such amounts shall be used only sisted with grant amounts will comply with under section 297. for eligible activities relating to affordable energy efficiency standards and the national ‘‘(b) ELIGIBLE RECIPIENTS.—Trust Fund housing that are for the benefit only of fami- Green Communities criteria checklist for grant amounts of a grantee may be provided lies whose incomes do not exceed 50 percent residential construction that provides cri- only to an organization, agency, or other en- of the median family income for the area in teria for the design, development, and oper- tity (including a for-profit entity, a non- which the housing is located, as determined ation of affordable housing, as the Secretary profit entity, a faith-based organization, a by the Secretary with adjustments for small- shall by regulation provide; and community development financial institu- er and larger families. ‘‘(xvi) the extent to which the design, con- tion, a community development corporation, ‘‘(5) REVIEW OF TARGETING REQUIREMENTS.— struction, and operation of the housing as- and a State or local housing trust fund) The Secretary shall assess the need for, and sisted with grant amounts reduces utility that— the appropriateness of, the requirements

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00144 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.099 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2511 under paragraphs (1) through (3) and shall to provide or assist in making available af- with adjustment for number of bedrooms in submit a report to the Congress on the re- fordable housing; and the unit, except that the Secretary may es- sults of the assessment not later than Octo- ‘‘(9) any other housing assistance pro- tablish income ceilings higher or lower than ber 1, 2010, and not later than the expiration grams. 65 percent of the median for the area on the of the 5-year period beginning upon such ‘‘(h) PROHIBITED USES.—The Secretary basis of the findings of the Secretary that date and each successive 5-year period there- shall— such variations are necessary because of pre- after. In each such report, the Secretary ‘‘(1) by regulation, set forth prohibited vailing levels of construction costs or fair shall identify and make recommendations uses of grant amounts under this subtitle, market rents, or unusually high or low fam- regarding the continuation or adjustment of which shall include use for— ily incomes. the targeting requirements in paragraphs (1) ‘‘(A) political activities; ‘‘(2) TENANT RENT CONTRIBUTION.—The con- through (3). ‘‘(B) advocacy; tribution toward rent by the family residing ‘‘(d) USE FOR RURAL AREAS.—Of the Trust ‘‘(C) lobbying, whether directly or through in the dwelling unit will not exceed 30 per- Fund grant amounts for any fiscal year for other parties; cent of the adjusted income of such family. any grantee that is a State or participating ‘‘(D) counseling services; ‘‘(3) NON-DISCRIMINATION AGAINST VOUCHER local jurisdiction that includes any rural ‘‘(E) travel expenses; and HOLDERS.—The dwelling unit is located in a areas, the State or participating local juris- ‘‘(F) preparing or providing advice on tax project in which all dwelling units are sub- diction shall use a portion for eligible activi- returns; ject to enforceable restrictions that provide ties located in rural areas that is propor- ‘‘(2) by regulation, provide that, except as that a unit may not be refused for leasing to tionate to the identified need for such activi- provided in paragraph (3), grant amounts a holder of a voucher of eligibility under sec- ties in such rural areas. under this subtitle may not be used for ad- tion 8 of the United States Housing Act of ‘‘(e) COST LIMITS.—The Secretary shall es- ministrative, outreach, or other costs of— 1937 (42 U.S.C. 1437f) because of the status of tablish limitations on the amount of Trust ‘‘(A) a grantee; or the prospective tenant as a holder of such Fund grant amounts that may be used, on a ‘‘(B) any recipient of such grant amounts; voucher. per unit basis, for eligible activities. Such and ‘‘(4) MIXED INCOME.— limitations shall be the same as the per unit ‘‘(3) by regulation, limit the amount of any ‘‘(A) IN GENERAL.—The dwelling unit is lo- cost limits established pursuant to section Trust Fund grant amounts for a fiscal year cated in a project— 212(e) (42 U.S.C. 12742(e)), as adjusted annu- that may be used for administrative costs of ‘‘(i) that receives assistance under this ally, and established by number of bedrooms, the grantee of carrying out the program re- subtitle; and market area, and eligible activity. quired under this subtitle to a percentage of ‘‘(ii) for which not more than 50 percent of ‘‘(f) FORMS OF ASSISTANCE.— such grant amounts of the grantee for such the rental units in the project that are not ‘‘(1) IN GENERAL.—Assistance may be dis- fiscal year, which may not exceed 10 percent. previously occupied may be rented initially tributed pursuant to this section in the form ‘‘(i) LABOR STANDARDS.—Each grantee re- only to families with incomes described in of— ceiving Trust Fund grant amounts shall en- section 296(c)(2), as determined at a reason- ‘‘(A) capital grants, noninterest-bearing or sure that contracts for eligible activities as- able time before occupancy. low-interest loans or advances, deferred pay- sisted with such amounts comply with the ‘‘(B) REHABILITATION.—In the case of a ment loans, guarantees, and loan loss re- same requirements under section 286 (42 dwelling unit in a project for which Trust serves; U.S.C. 12836) that are applicable to contracts Fund grant amounts are used for the reha- ‘‘(B) in the case of assistance for ownership for construction of affordable housing as- bilitation of the project, the dwelling unit is of one- to four-family owner-occupied hous- sisted under subtitles A and D. located in a project in which the percentage ing, downpayment assistance, closing cost ‘‘(j) COMPLIANCE WITH OTHER FEDERAL of units being rented upon completion of the assistance, and assistance for interest rate LAWS.—All amounts from the Trust Fund rehabilitation to families with incomes de- buy-downs; and shall be allocated in accordance with, and scribed in section 296(c)(2) may not exceed ‘‘(C) any other forms of assistance ap- any eligible activities carried out in whole the higher of 50 percent or the percentage of proved by the Secretary. or in part with grant amounts under this such families occupying the project at the ‘‘(2) REPAYMENTS.—If a grantee awards as- subtitle (including housing provided with time funds are awarded for such project. sistance under this section in the form of a such grant amounts) shall comply with and ‘‘(C) EXCEPTIONS.—Subparagraph (A) shall loan or other mechanism by which funds are be operated in compliance with, other appli- not apply in the case of a project that— later repaid to the grantee, any repayments cable provisions of Federal law, including— ‘‘(i) has 25 or fewer dwelling units and that and returns received by the grantee shall be ‘‘(1) laws relating to tenant protections is— distributed by the grantee in accordance and tenant rights to participate in decision ‘‘(I) located in a census tract in which the with the allocation plan under section 295 for making regarding their residences; number of families having incomes less than the grantee for the fiscal year in which such ‘‘(2) laws requiring public participation, in- the poverty line is less than 20 percent; repayments are made or returns are re- cluding laws relating to Consolidated Plans, ‘‘(II) located in a rural area, as such term ceived. Qualified Allocation Plans, and Public Hous- is defined in section 520 of the Housing Act of ‘‘(g) COORDINATION WITH OTHER ASSIST- ing Agency Plans; and 1949 (42 U.S.C. 1490); or ANCE.—In distributing assistance pursuant to ‘‘(3) fair housing laws and laws regarding ‘‘(III) specifically made available only for this section, each grantee shall, to the max- accessibility in federally assisted housing, households comprised of disabled families; or imum extent practicable, coordinate such including section 504 of the Rehabilitation ‘‘(ii) is specifically made available only for distribution with the provision of other Fed- Act of 1973. households comprised of elderly families. eral, State, tribal, and local housing assist- ‘‘SEC. 297. AFFORDABLE HOUSING. ‘‘(5) VISITABILITY.—To the extent the ance, including— ‘‘(a) RENTAL HOUSING.—A rental dwelling dwelling unit is not required under Federal ‘‘(1) in the case of any State, housing cred- unit (which may include a dwelling unit in law to comply with standards relating to ac- it dollar amounts allocated by the State limited equity cooperative housing, as such cessibility to persons with disabilities, the under section 42(h) of the Internal Revenue term is defined in section 143(k) of the Inter- dwelling unit complies with such basic Code of 1986; nal Revenue Code of 1986 (26 U.S.C. 143(k)) or visitability standards as the Secretary shall ‘‘(2) assistance made available under sub- in housing of a cooperative housing corpora- by regulation provide. titles A through F (42 U.S.C. 12721 et seq.) or tion, as such term is defined in section 216(b) ‘‘(6) DURATION OF USE.—The dwelling unit the community development block grant of the Internal Revenue Code of 1986 (26 will continue to be subject to all require- program under title I of the Housing and U.S.A. 216(b))), shall be considered affordable ments under this subsection for not less than Community Development Act of 1974 (42 housing for purposes of this subtitle only if 50 years. U.S.C. 5301 et seq.); the dwelling unit is subject to legally bind- ‘‘(b) OWNER-OCCUPIED HOUSING.—For pur- ‘‘(3) private activity bonds; ing commitments that ensure that the dwell- poses of any eligible activity involving one- ‘‘(4) assistance made available under sec- ing unit meets all of the following require- to four-family owner-occupied housing tion 9 of the United States Housing Act of ments: (which may include housing of a cooperative 1937 (42 U.S.C. 1437g); ‘‘(1) RENTS.—The dwelling unit bears a rent housing corporation, as such term is defined ‘‘(5) assistance made available under sec- not greater than the lesser of— in section 216(b) of the Internal Revenue tion 8(o) of the United States Housing Act of ‘‘(A) the existing fair market rental estab- Code of 1986 (26 U.S.C. 216(b))), such a resi- 1937 (42 U.S.C. 1437f(o)); lished by the Secretary under section 8(c) of dence shall be considered affordable housing ‘‘(6) assistance made available under title the United States Housing Act of 1937 (42 for purposes of this subtitle only if— V of the Housing Act of 1949 (42 U.S.C. 1471 et U.S.C. 1437f(c)) for a dwelling unit of the ‘‘(1) in the case of housing to be made seq.); same size in the same market area, or the available for purchase— ‘‘(7) assistance made available under sec- applicable payment standard for assistance ‘‘(A) the housing is available for purchase tion 101 of the Native American Housing As- under section 8(o) of such Act, if higher; and only for use as a principal residence by fami- sistance and Self-Determination Act of 1996 ‘‘(B) a rent that does not exceed 30 percent lies that qualify as first-time homebuyers, as (25 U.S.C. 4111); of the adjusted income of a family whose in- such term is defined in section 104 (42 U.S.C. ‘‘(8) assistance made available from any come equals 65 percent of the median income 12704), except that any reference in such sec- State or local housing trust fund established for the area, as determined by the Secretary, tion to assistance under title II of this Act

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00145 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.099 S03APPT1 ccoleman on PRODPC75 with SENATE S2512 CONGRESSIONAL RECORD — SENATE April 3, 2008

shall for purposes of this section be consid- ‘‘(A) TRACKING OF FUNDS.—The Secretary constructed, preserved, or rehabilitated dur- ered to refer to assistance from Trust Fund shall— ing such fiscal year with assistance from grant amounts; ‘‘(i) require each grantee to develop and Trust Funds grant amounts of the grantee ‘‘(B) the housing has an initial purchase maintain a system to ensure that each re- comply with widely accepted standards for price that meets the requirements of section cipient of assistance from Trust Fund grant green building. 215(b)(1); and amounts of the grantee uses such amounts in ‘‘(ii) PUBLIC AVAILABILITY.—The Secretary ‘‘(C) the housing is subject to the same re- accordance with this subtitle, the regula- shall make such reports pursuant to this sale restrictions established under section tions issued under this subtitle, and any re- subparagraph publicly available. 215(b)(3) and applicable to the participating quirements or conditions under which such ‘‘(B) MISUSE OF FUNDS.—If the Secretary jurisdiction that is the State in which such amounts were provided; and determines, after reasonable notice and op- housing is located; and ‘‘(ii) establish minimum requirements for portunity for hearing, that a grantee has ‘‘(2) the housing is made available for pur- agreements, between the grantee and recipi- failed to comply substantially with any pro- chase only by, or in the case of assistance to ents, regarding assistance from the Trust vision of this subtitle and until the Sec- a homebuyer pursuant to this subsection, Fund grant amounts of the grantee, which retary is satisfied that there is no longer any the assistance is made available only to, shall include— such failure to comply, the Secretary shall— homebuyers who have, before purchase, com- ‘‘(I) appropriate continuing financial and ‘‘(i) reduce the amount of assistance under pleted a program of counseling with respect project reporting, record retention, and this section to the grantee by an amount to the responsibilities and financial manage- audit requirements for the duration of the equal to the amount of Trust Fund grant ment involved in homeownership that is ap- grant to the recipient to ensure compliance amounts which were not used in accordance proved by the Secretary and includes coun- with the limitations and requirements of with this subtitle; seling regarding financial literacy, strate- this subtitle and the regulations under this ‘‘(ii) require the grantee to repay the Sec- gies to save money, qualifying for a mort- subtitle; and retary an amount equal to the amount of the gage loan, methods to avoid predatory lend- ‘‘(II) any other requirements that the Sec- Trust Fund grant amounts which were not ers and foreclosure, and, where appropriate retary determines are necessary to ensure used in accordance with this subtitle; by region, any requirements and costs asso- appropriate grant administration and com- ‘‘(iii) limit the availability of assistance ciated with obtaining flood or other disaster- pliance. under this subtitle to the grantee to activi- specific insurance coverage; except that the ‘‘(B) MISUSE OF FUNDS.— ties or recipients not affected by such failure Secretary may, at the request of a State, ‘‘(i) REIMBURSEMENT REQUIREMENT.—If any to comply; or waive the requirements of this paragraph recipient of assistance from Trust Fund ‘‘(iv) terminate any assistance under this with respect to a geographic area or areas grant amounts of a grantee is determined, in subtitle to the grantee. accordance with clause (ii), to have used any within the State if— ‘‘(c) GREEN HOUSING CLEARINGHOUSE.— such amounts in a manner that is materially ‘‘(A) the travel time or distance involved ‘‘(1) ESTABLISHMENT.—The Secretary shall in providing counseling with respect to such in violation of this subtitle, the regulations establish a clearinghouse of information re- area or areas, as otherwise required under issued under this subtitle, or any require- lating to green building techniques to pro- this paragraph, on an in-person basis is ex- ments or conditions under which such vide grantees and recipients of Trust Fund amounts were provided— cessive or the cost of such travel is prohibi- amounts information regarding use of Trust ‘‘(I) such recipient shall be ineligible for tive; and Fund grant amounts in a manner that in- any further assistance from any Trust Fund ‘‘(B) the State provides alternative forms creases the efficiency of buildings and their grant amounts of any grantee during the pe- of counseling for such area or areas, which use of energy, water, and materials, and re- riod that begins upon such determination may include interactive telephone coun- ducing building impacts on human health and ends upon reinstatement by the Sec- seling, on-line counseling, interactive video and the environment, through better siting, retary of the eligibility of recipient for such counseling, and interactive home study design, construction, operation, mainte- assistance, except that the Secretary may counseling and a program of financial lit- nance, and removal, including information reinstate such an ineligible recipient only eracy and education to promote an under- regarding best practices and technical rec- pursuant to application by the recipient for standing of consumer, economic, and per- such reinstatement and the recipient may ommendations. sonal finance issues and concepts, including not apply to the Secretary for such rein- ‘‘(2) ACCESS THROUGH INTERNET.—The Sec- saving for retirement, managing credit, statement during the 12-month period, or the retary shall make the information of the long-term care, and estate planning and edu- 10-year period in the case of a second or sub- clearinghouse available by means of the cation on predatory lending, identity theft, sequent such determination, beginning upon Internet. and financial abuse schemes relating to such determination; and ‘‘SEC. 299. DEFINITIONS. homeownership that is approved by the Sec- ‘‘(II) the grantee shall require that, within ‘‘For purposes of this subtitle, the fol- retary, except that entities providing such 12 months after the determination of such lowing definitions shall apply: counseling shall not discriminate against misuse, the recipient shall reimburse the ‘‘(1) ELIGIBLE ACTIVITIES.—The term ‘eligi- any particular form of housing. grantee for such misused amounts and re- ble activities’ means activities relating to ‘‘(c) PRIORITY FOR FAMILIES ON SECTION 8 turn to the grantee any amounts from the the construction, preservation, or rehabilita- OR PUBLIC HOUSING WAITING LIST FOR 12 Trust Fund grant amounts of the grantee tion of affordable rental housing or afford- MONTHS OR LONGER.—A dwelling unit in that remain unused or uncommitted for use. able one- to four-family owner-occupied rental housing or owner-occupied housing The remedies under this clause are in addi- housing, including— shall be considered affordable housing for tion to any other remedies that may be ‘‘(A) the construction of new housing; purposes of this subtitle only if the dwelling available under law. ‘‘(B) the acquisition of real property; unit is subject to such requirements, as the ‘‘(ii) DETERMINATION.—A determination is ‘‘(C) site preparation and improvement, in- Secretary shall provide, to ensure that pri- made in accordance with this clause if the cluding demolition; ority for occupancy in or, in the case of determination is— ‘‘(D) rehabilitation of existing housing; owner-occupied housing, purchase of, the ‘‘(I) made by the Secretary; or ‘‘(E) use of funds to facilitate affordability dwelling unit is provided to families who are ‘‘(II)(aa) made by the grantee; for homeless and other extremely low-ineligible for rental assistance under section 8 ‘‘(bb) the grantee provides notification of come households of dwelling units assisted of the United States Housing Act of 1937 (42 the determination to the Secretary for re- with Trust Fund grant amounts, in a com- U.S.C. 1437f) or occupancy in public housing view, in the discretion of the Secretary, of bined amount not to exceed 20 percent of the assisted under such Act, and have applied to the determination; and project grant amount, for— a public housing agency for such assistance ‘‘(cc) the Secretary does not subsequently ‘‘(i) project-based rental assistance for not or occupancy, as applicable, and been on a reverse the determination. more than 12 months for a project assisted waiting list of a public housing agency for ‘‘(2) GRANTEES.— with Trust Fund grant amounts; such assistance or occupancy, as applicable, ‘‘(A) REPORT.— ‘‘(ii) project operating reserves for use to for at least 12 consecutive months. ‘‘(i) IN GENERAL.—The Secretary shall recover the loss of rental assistance or in con- ‘‘SEC. 298. OTHER PROVISIONS. quire each grantee receiving Trust Fund junction with a project loan; or ‘‘(a) EFFECT OF ASSISTANCE UNDER PRO- grant amounts for a fiscal year to submit a ‘‘(iii) project operating accounts used to GRAM.—Notwithstanding any other provision report, for such fiscal year, to the Secretary cover net operating income shortfalls for of law, the provision of assistance under this that— dwelling units assisted with Trust Fund subtitle for a project shall not reduce the ‘‘(I) describes the activities funded under grant amounts; amount of assistance for which such project this subtitle during such year with the Trust ‘‘(F) use of funds to facilitate affordability is otherwise eligible under subtitles A Fund grant amounts of the grantee; for families having incomes described in sec- through F of this title, if the project does ‘‘(II) describes the manner in which the tion 296(c)(3), in a combined amount for a not exceed the cost limits established pursu- grantee complied during such fiscal year grantee in any fiscal year not to exceed 10 ant to section 296(e). with the allocation plan established pursu- percent of the aggregate Trust Fund grant ‘‘(b) ACCOUNTABILITY OF GRANTEES AND RE- ant to section 295 for the grantee; and amounts provided to the grantee for such fis- CIPIENTS.— ‘‘(III) certifies the number of total dwell- cal year, for project operating accounts used ‘‘(1) RECIPIENTS.— ing units of affordable housing that were to cover net operating income shortfalls for

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00146 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.099 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2513 dwelling units assisted with Trust Fund ‘‘SEC. 299A. INAPPLICABILITY OF HOME PROVI- rendered uninhabitable by reason of Hurri- grant amounts; SIONS. cane Rita, or ‘‘(G) providing incentives to maintain ex- ‘‘Except as specifically provided otherwise ‘‘(iii) located in the Wilma GO Zone (as de- isting housing (including manufactured in this subtitle, no requirement under, or fined in section 1400M(5)) and damaged or housing) as affordable housing and to estab- provision of, title I or subtitles A through F rendered uninhabitable by reason of Hurri- lish or extend any low-income affordability of this title shall apply to assistance pro- cane Wilma,’’. restrictions for such housing, including cov- vided under this subtitle. On page 72, line 11, strike ‘‘(c)’’ and insert ering capital expenditures and costs of estab- ‘‘SEC. 299B. REGULATIONS. ‘‘(d)’’. lishing community land trusts to provide ‘‘Not later than 6 months after the date of On page 73, line 19, strike ‘‘(d)’’ and insert sites for manufactured housing provided enactment of the National Affordable Hous- ‘‘(e)’’. such incentives; and ing Trust Fund Act of 2008, the Secretary of SA 4405. Ms. LANDRIEU submitted ‘‘(H) in the case of affordable one- to four- Housing and Urban Development shall pro- family owner-occupied housing, downpay- mulgate regulations to carry out this sub- an amendment intended to be proposed ment assistance, closing cost assistance, and title, which shall include regulations estab- by her to the bill H.R. 3221, moving the assistance for interest rate buy-downs. lishing the affordable housing needs formula United States toward greater energy ‘‘(2) ELIGIBLE RECIPIENT.—The term ‘eligi- in accordance with section 294(a). independence and security, developing ble recipient’ means an entity that meets ‘‘SEC. 299C. BENEFITS. innovative new technologies, reducing the requirements under section 296(b) for re- ‘‘Nothing in this subtitle allows any pay- carbon emissions, creating green jobs, ceipt of Trust Fund grant amounts of a ments under this subtitle for any individual protecting consumers, increasing clean grantee. or head of household that is not a legal resi- renewable energy production, and mod- ‘‘(3) EXTREMELY LOW VACANCY RATE.—The dent.’’. ernizing our energy infrastructure, and term ‘extremely low vacancy rate’ means a (b) CONFORMING AMENDMENT.—Section 201 to amend the Internal Revenue Code of housing or rental vacancy rate of 2 percent of the Cranston-Gonzalez National Afford- or less. able Housing Act (42 U.S.C. 12701 note) is 1986 to provide tax incentives for the ‘‘(4) EXTREMELY OLD HOUSING.—The term amended by striking ‘‘This title’’ and insert- production of renewable energy and en- ‘extremely old housing’ means housing that ing ‘‘Subtitles A through F of this title’’. ergy conservation; which was ordered is 45 years old or older. to lie on the table; as follows: ‘‘(5) FAMILIES.—The term ‘families’ has the SA 4404. Ms. LANDRIEU submitted On page 52, line 4, strike ‘‘; and’’ and insert meaning given such term in section 3(b) of an amendment intended to be proposed a semicolon. the United States Housing Act of 1937 (42 by her to the bill H.R. 3221, moving the On page 52, line 7, strike the period and in- U.S.C. 1437a(b)). United States toward greater energy sert ‘‘; and’’. On page 52, between lines 7 and 8, insert ‘‘(6) FISCAL DISTRESS; SEVERE FISCAL DIS- independence and security, developing TRESS.—The terms ‘fiscal distress’ and ‘se- the following: vere fiscal distress’ have the meanings given innovative new technologies, reducing (D) the number and percentage of homes such terms in section 220(d). carbon emissions, creating green jobs, damaged or rendered uninhabitable as a re- ‘‘(7) GRANTEE.—The term ‘grantee’ means— protecting consumers, increasing clean sult of Hurricanes Katrina, Rita, and Wilma ‘‘(A) a State, insular area, or participating renewable energy production, and mod- in each State or unit of general local govern- local jurisdiction for which a grant is made ernizing our energy infrastructure, and ment. under section 294(e); to amend the Internal Revenue Code of SA 4406. Mr. VOINOVICH (for him- ‘‘(B) an Indian tribe for which a grant is 1986 to provide tax incentives for the self, Ms. STABENOW, Mr. HATCH, Mr. made under section 294(g); or production of renewable energy and en- ‘‘(C) a nonprofit or public entity for which ROCKEFELLER, Mr. SMITH, Ms. CANT- ergy conservation; which was ordered a grant is made under section 294(i). WELL, Mr. VITTER, and Mr. LEVIN) sub- to lie on the table; as follows: ‘‘(8) INDIAN TRIBE.—The term ‘Indian tribe’ mitted an amendment intended to be means a federally recognized Indian tribe. Beginning on page 68, strike line 22 and all proposed by him to the bill H.R. 3221, ‘‘(9) INSULAR AREA.—The term ‘insular that follows through line 4 on page 69 and moving the United States toward area’ has the meaning given such term in and insert the following: section 104. ‘‘(A) IN GENERAL.—Notwithstanding the re- greater energy independence and secu- ‘‘(10) PARTICIPATING LOCAL JURISDICTION.— quirements of subsection (i)(1), the proceeds rity, developing innovative new tech- The term ‘participating local jurisdiction’ of a qualified mortgage issue may be used to nologies, reducing carbon emissions, means, with respect to a fiscal year— refinance a mortgage which— creating green jobs, protecting con- ‘‘(A) any unit of general local government ‘‘(i) was originally financed by the mort- sumers, increasing clean renewable en- (as such term is defined in section 104 (42 gagor through a qualified subprime loan, or ergy production, and modernizing our U.S.C. 12704) that qualifies as a participating ‘‘(ii) is a mortgage on a residence— energy infrastructure, and to amend jurisdiction under section 216 (42 U.S.C. ‘‘(I) located in the Gulf Opportunity Zone the Internal Revenue Code of 1986 to 12746) for such fiscal year; and (as defined in section 1400M(1)) and damaged ‘‘(B) at the option of such a consortium, or rendered uninhabitable by reason of Hur- provide tax incentives for the produc- any consortium of units of general local gov- ricane Katrina, tion of renewable energy and energy ernments that is designated pursuant to sec- ‘‘(II) located in the Rita GO Zone (as de- conservation; which was ordered to lie tion 216 (42 U.S.C. 12746) as a participating fined in section 1400M(3)) and damaged or on the table; as follows: jurisdiction for purposes of title II. rendered uninhabitable by reason of Hurri- At the end of title VI, insert the following: ‘‘(11) POVERTY LINE.—The term ‘poverty cane Rita, or SEC. lll. ELECTION TO ACCELERATE AMT AND line’ has the meaning given such term in sec- ‘‘(III) located in the Wilma GO Zone (as de- R AND D CREDITS IN LIEU OF BONUS tion 673(2) of the Omnibus Budget Reconcili- fined in section 1400M(5)) and damaged or DEPRECIATION. ation Act of 1981, including any revision re- rendered uninhabitable by reason of Hurri- (a) IN GENERAL.—Section 168(k), as amend- quired by such section. cane Wilma. ed by this Act, is amended by adding at the ‘‘(12) RECIPIENT.—The term ‘recipient’ On page 72, between lines 10 and 11, insert end the following new paragraph: means an entity that receives assistance the following: ‘‘(5) ELECTION TO ACCELERATE AMT AND R from a grantee, pursuant to section 296(a), (c) WAIVER OF 3-YEAR REQUIREMENT FOR AND D CREDITS IN LIEU OF BONUS DEPRECIA- from Trust Fund grant amounts of the grant- HOMES DAMAGED BY HURRICANES KATRINA, TION.— ee. RITA, AND WILMA.—Paragraph (2) of section ‘‘(A) IN GENERAL.—If a corporation which is ‘‘(13) RURAL AREA.—The term ‘rural area’ 143(d) of the Internal Revenue Code of 1986 is an eligible taxpayer (within the meaning of has the meaning given such term in section amended by striking ‘‘and’’ at the end of subparagraph (4)) for purposes of this subsection 520 of the Housing Act of 1949 (42 U.S.C. 1490). paragraph (C), by inserting ‘‘and’’ at the end elects to have this paragraph apply— ‘‘(14) SECRETARY.—The term ‘Secretary’ of subparagraph (D), and by inserting after ‘‘(i) no additional depreciation shall be al- means the Secretary of Housing and Urban subparagraph (D) the following new subpara- lowed under paragraph (1) for any qualified Development. graph: property placed in service during any taxable ‘‘(15) STATE.—The term ‘State’ has the ‘‘(E) in the case of bonds issued after the year to which paragraph (1) would otherwise meaning given such term in section 104. date of the enactment of this subparagraph apply, and ‘‘(16) TRUST FUND.—The term ‘Trust Fund’ and before January 1, 2011, financing with re- ‘‘(ii) the limitations described in subpara- means the National Affordable Housing spect to the purchase of any residence— graph (B) for such taxable year shall be in- Trust Fund established under section 292. ‘‘(i) located in the Gulf Opportunity Zone creased by an aggregate amount not in ex- ‘‘(17) TRUST FUND GRANT AMOUNTS.—The (as defined in section 1400M(1)) and damaged cess of the bonus depreciation amount for term ‘Trust Fund grant amounts’ means or rendered uninhabitable by reason of Hur- such taxable year. amounts from the Trust Fund that are pro- ricane Katrina, ‘‘(B) LIMITATIONS TO BE INCREASED.—The vided to a grantee pursuant to subsection (e), ‘‘(ii) located in the Rita GO Zone (as de- limitations described in this subparagraph (g), or (i) of section 294. fined in section 1400M(3)) and damaged or are—

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00147 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.099 S03APPT1 ccoleman on PRODPC75 with SENATE S2514 CONGRESSIONAL RECORD — SENATE April 3, 2008 ‘‘(i) the limitation under section 38(c), and ‘‘(E) CREDIT REFUNDABLE.—Any aggregate 1986 to provide tax incentives for the ‘‘(ii) the limitation under section 53(c). increases in the credits allowed under sec- production of renewable energy and en- ‘‘(C) BONUS DEPRECIATION AMOUNT.—For tion 38 or 53 by reason of this paragraph ergy conservation; which was ordered purposes of this paragraph— shall, for purposes of this title, be treated as to lie on the table; as follows: ‘‘(i) IN GENERAL.—The bonus depreciation a credit allowed to the taxpayer under sub- amount for any applicable taxable year is an part C of part IV of subchapter A. At the appropriate place, insert the fol- amount equal to the product of 20 percent ‘‘(F) OTHER RULES.— lowing: and the excess (if any) of— ‘‘(i) ELECTION.—Any election under this SEC. —— . LEGAL SAFE HARBOR FOR ENTERING ‘‘(I) the aggregate amount of depreciation paragraph (including any allocation under INTO CERTAIN LOAN MODIFICA- TIONS OR WORKOUT PLANS. which would be determined under this sec- subparagraph (D)) may be revoked only with Section 6 of the Real Estate Settlement tion for the taxable year if no election under the consent of the Secretary. Procedures Act of 1974 (12 U.S.C. 2605) is this paragraph were made and if this sub- ‘‘(ii) DEDUCTION ALLOWED IN COMPUTING amended— section applied only to eligible qualified MINIMUM TAX.—Notwithstanding this para- (1) by redesignating subsections (i) and (j) property, over graph, paragraph (2)(G) shall apply with re- as subsections (j) and (k), respectively; and ‘‘(II) the aggregate amount of depreciation spect to the deduction computed under this (2) by inserting after subsection (h) the fol- allowable under this section for the taxable section (after application of this paragraph) lowing: year. with respect to property placed in service during any applicable taxable year.’’. ‘‘(i) Duty of Servicers Regarding Certain ‘‘(ii) ELIGIBLE QUALIFIED PROPERTY.—For Loan Modifications or Workout Plans.— purposes of clause (i), the term ‘eligible (b) EFFECTIVE DATE.—The amendments made by this section shall apply to property ‘‘(1) IN GENERAL.—Notwithstanding any qualified property’ means qualified property other provision of law, absent specific con- under paragraph (2), except that in applying placed in service after December 31, 2007, in taxable years ending after such date. tractual provisions to the contrary, a paragraph (2) for purposes of this clause— servicer of pooled qualified residential mort- ‘‘(I) ‘March 31, 2008’ shall be substituted for gages— ‘December 31, 2007’ each place it appears in SA 4407. Mr. KYL submitted an amendment intended to be proposed by ‘‘(A) owes any duty to determine if the net subparagraph (A) and clauses (i) and (ii) of present value of the payments on the loan as subparagraph (E) thereof, him to the bill H.R. 3221, moving the modified is likely to be greater than the an- ‘‘(II) only adjusted basis attributable to United States toward greater energy ticipated net recovery that would result manufacture, construction, or production independence and security, developing from foreclosure to all investors and parties after March 31, 2008, and before January 1, innovative new technologies, reducing having a direct or indirect interest in the 2009, shall be taken into account under sub- carbon emissions, creating green jobs, pooled loans or securitization vehicle, but paragraph (B)(ii) thereof, and protecting consumers, increasing clean not to any individual party or group of par- ‘‘(III) in the case of property which is a ties; and passenger aircraft, the written binding con- renewable energy production, and modernizing our energy infrastructure, and ‘‘(B) acts in the best interests of all such tract limitation under subparagraph investors and parties, if the servicer agrees (A)(iii)(I) thereof shall not apply. to amend the Internal Revenue Code of to or implements a qualified loan modifica- ‘‘(iii) MAXIMUM AMOUNT.—The bonus depre- 1986 to provide tax incentives for the tion or workout plan for a qualified residen- ciation amount for any applicable taxable production of renewable energy and en- tial mortgage, or if, and only if, such efforts year shall not exceed the applicable limita- ergy conservation; are unsuccessful or infeasible, takes other tion under clause (iv), reduced (but not below At the end add the following: reasonable loss mitigation actions, including zero) by the bonus depreciation amount for accepting partial payments or short sale of any preceding taxable year. TITLE l—PRINCIPAL RESIDENCE GAIN EXCLUSION the property; and ‘‘(iv) APPLICABLE LIMITATION.—For pur- ‘‘(C) if the servicer acts in a manner con- poses of clause (iii), the term ‘applicable lim- SEC. l01. INFLATION ADJUSTMENT FOR PRIN- sistent with the duty set forth in subpara- itation’ means, with respect to any eligible CIPAL RESIDENCE GAIN EXCLUSION DOLLAR LIMITATION. graphs (A) and (B), shall not be liable under taxpayer, the lesser of— any law or regulation of the United States, ‘‘(I) $50,000,000, or (a) IN GENERAL.—Section 121(b) of the In- ternal Revenue Code of 1986 (relating to limi- any State or any political subdivision of any ‘‘(II) 50 percent of the sum of the amounts State, for entering into a qualified loan determined with respect to the eligible tax- tations) is amended by adding at the end the following new paragraph: modification or workout plan in any action payer under clauses (ii) and (iii) of subpara- filed by or on behalf of any person— ‘‘(4) INFLATION ADJUSTMENT.—In the case of graph (D). ‘‘(i) based on the person’s ownership of any ‘‘(v) AGGREGATION RULE.—All corporations any calendar year after 2008, the dollar amount contained in paragraph (1) shall be interest in a residential mortgage, a pool of which are treated as a single employer under residential mortgage loans, or a section 52(a) shall be treated as 1 taxpayer increased by an amount equal to— ‘‘(A) such dollar amount, multiplied by securitization vehicle, that distributes pay- for purposes of applying the limitation under ments out of the principal, interest, or other this subparagraph and determining the appli- ‘‘(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar payment on loans in the pool; cable limitation under clause (iv). ‘‘(ii) based on the person’s obligation to year, determined by substituting ‘calendar ‘‘(D) ALLOCATION OF BONUS DEPRECIATION make payments determined in reference to year 2007’ for ‘calendar year 1992’ in subpara- AMOUNTS.— any loan or interest referred to in clause (i); graph (B) thereof. ‘‘(i) IN GENERAL.—Subject to clauses (ii) or and (iii), the taxpayer shall, at such time Any increase determined under the preceding ‘‘(iii) based on the person’s obligation to and in such manner as the Secretary may sentence shall be rounded to the nearest insure any loan or any interest referred to in prescribe, specify the portion (if any) of the multiple of $1,000.’’. clause (i). bonus depreciation amount which is to be al- (b) CONFORMING AMENDMENT.—So much of ‘‘(2) DEFINITIONS.—As used in this sub- located to each of the limitations described subparagraph (A) of section 121(b)(2) of the section— in subparagraph (B). Internal Revenue Code of 1986 as precedes ‘‘(A) the term ‘qualified loan modification ‘‘(ii) BUSINESS CREDIT LIMITATION.—The clause (i) thereof is amended to read as fol- or workout plan’ means a contract, modifica- portion of the bonus depreciation amount allows: tion, or plan relating to a qualified residen- located to the limitation described in sub- ‘‘(A) LIMITATION FOR CERTAIN JOINT RE- tial mortgage loan consummated after Janu- paragraph (B)(i) shall not exceed an amount TURNS.—Paragraph (1) shall be applied by ary 1, 2004, with respect to which— equal to the portion of the credit allowable doubling the dollar amount specified in such ‘‘(i) payment default on the loan or loans under section 38 for the taxable year which is paragraph if—’’. has occurred, is imminent, or is reasonably allocable to business credit carryforwards to (c) EFFECTIVE DATE.—The amendments foreseeable; such taxable year which are— made by this section shall apply to years be- ‘‘(ii) the dwelling securing the loan or ‘‘(I) from taxable years beginning before ginning after December 31, 2008. loans is the primary residence of the owner; January 1, 2006, and ‘‘(iii) the servicer reasonably believes that ‘‘(II) properly allocable (determined under SA 4408. Mr. SPECTER submitted an the anticipated recovery under the loan the rules of section 38(d)) to the research amendment intended to be proposed by modification or workout plan will exceed the credit determined under section 41(a). him to the bill H.R. 3221, moving the anticipated recovery through foreclosure, on ‘‘(iii) ALTERNATIVE MINIMUM TAX CREDIT United States toward greater energy a net present value basis; LIMITATION.—The portion of the bonus depre- independence and security, developing ‘‘(iv) the effective period runs for at least ciation amount allocated to the limitation innovative new technologies, reducing 5 years from the date of adoption of the plan, described in subparagraph (B)(ii) shall not carbon emissions, creating green jobs, or until the borrower sells or refinances the exceed an amount equal to the portion of the property, if that occurs earlier; and minimum tax credit allowable under section protecting consumers, increasing clean ‘‘(v) the borrower is not required to pay ad- 53 for the taxable year which is allocable to renewable energy production, and mod- ditional fees to the servicer; the adjusted minimum tax imposed for tax- ernizing our energy infrastructure, and ‘‘(B) the term ‘qualified residential mort- able years beginning before January 1, 2006. to amend the Internal Revenue Code of gage’ means a consumer credit transaction

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00148 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.101 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2515 or loan that is secured by the consumer’s (5) redesignating subsection (m) as sub- carbon emissions, creating green jobs, principal dwelling; section (l); protecting consumers, increasing clean ‘‘(C) the term ‘securitization vehicle’ (6) amending subsection (l), as so redesig- renewable energy production, and mod- means a trust, corporation, partnership, lim- nated, to read as follows: ernizing our energy infrastructure, and ited liability entity, special purpose entity, ‘‘(l) FUNDING FOR COUNSELING.—The Sec- or other structure that is the issuer, or is retary shall use a portion of the mortgage to amend the Internal Revenue Code of created by the issuer, of mortgage pass- insurance premiums collected under the pro- 1986 to provide tax incentives for the through certificates, participation certifi- gram under this section to adequately fund production of renewable energy and en- cates, mortgage-backed securities, or other the counseling and disclosure activities re- ergy conservation; which was ordered similar securities backed by a pool of assets quired under subsection (f), including coun- to lie on the table; as follows: seling for those homeowners who elect not to that includes residential mortgage loans.; At the end of the bill, add the following: and’’ take out a home equity conversion mort- (D) the term ‘‘servicer’’ includes the enti- gage.’’; and TITLE VII—S.A.F.E. MORTGAGE LICENSING ties listed in subsection (i)(2)(A) and (B) of (7) adding at the end the following: ACT RESPA (12 U.S.C. sections 2605(i)(2)(A) and ‘‘(m) REQUIREMENTS ON MORTGAGE ORIGINA- SEC. 701. SHORT TITLE; TABLE OF CONTENTS. (B)). TORS.— (a) SHORT TITLE.—This title may be cited Effective Period—this section shall apply ‘‘(1) IN GENERAL.—The mortgagee and any as the ‘‘Secure and Fair Enforcement for only with respect to qualified loan modifica- other party that participates in the origina- Mortgage Licensing Act of 2008’’ or ‘‘S.A.F.E. tions or workout plans initiated during the 6 tion of a mortgage to be insured under this Mortgage Licensing Act of 2008’’. month period beginning on the date of enact- section shall— (b) TABLE OF CONTENTS.—The table of con- ment of this section. ‘‘(A) not participate in, be associated with, tents for this title is as follows: or employ any party that participates in or Sec. 701. Short title; table of contents. SA 4409. Mrs. MCCASKILL submitted is associated with any other financial or in- Sec. 702. Purposes and methods for estab- an amendment intended to be proposed surance activity; or lishing a mortgage licensing by her to the bill H.R. 3221, moving the ‘‘(B) demonstrate to the Secretary that the system and registry. Sec. 703. Definitions. United States toward greater energy mortgagee or other party maintains, or will maintain, firewalls and other safeguards de- Sec. 704. License or registration required. independence and security, developing signed to ensure that— Sec. 705. State license and registration ap- innovative new technologies, reducing ‘‘(i) individuals participating in the origi- plication and issuance. carbon emissions, creating green jobs, nation of the mortgage shall have no in- Sec. 706. Standards for State license re- protecting consumers, increasing clean volvement with, or incentive to provide the newal. Sec. 707. System of registration administra- mortgagor with, any other financial or in- renewable energy production, and mod- tion by Federal banking agen- surance product; and ernizing our energy infrastructure, and cies. to amend the Internal Revenue Code of ‘‘(ii) the mortgagor shall not be required, Sec. 708. Secretary of Housing and Urban 1986 to provide tax incentives for the directly or indirectly, as a condition of ob- Development backup authority taining a mortgage under this section, to production of renewable energy and en- to establish a loan originator purchase any other financial or insurance licensing system. ergy conservation; which was ordered product. to lie on the table; as follows: Sec. 709. Backup authority to establish a na- ‘‘(2) APPROVAL OF OTHER PARTIES.—All par- tionwide mortgage licensing At the end of the bill, insert the following: ties that participate in the origination of a and registry system. TITLE VIII—REVERSE MORTGAGE mortgage to be insured under this section Sec. 710. Fees. PROTECTION PROCEEDS ACT shall be approved by the Secretary. Sec. 711. Background checks of loan origina- ‘‘(n) PROHIBITION AGAINST REQUIREMENTS SEC. 801. SHORT TITLE. tors. TO PURCHASE ADDITIONAL PRODUCTS.—The Sec. 712. Confidentiality of information. This title may be cited as the ‘‘Reverse mortgagee or any other party shall not be Sec. 713. Liability provisions. Mortgage Proceeds Protection Act’’. required by the mortgagor or any other Sec. 714. Enforcement under HUD backup li- SEC. 802. PROHIBITION ON REQUIRED PURCHASE party to purchase an insurance, annuity, or censing system. OF AN ANNUITY. other additional product as a requirement or Sec. 715. Preemption of State law. Section 255 of the National Housing Act of condition of eligibility for a mortgage au- Sec. 716. Reports and recommendations to 1937 (12 U.S.C. 1715z–20) is amended— thorized under subsection (c). Congress. (1) by amending subsection (d)(1) to read as ‘‘(o) REGULATIONS TO PROTECT ELDERLY Sec. 717. Study and reports on defaults and follows: HOMEOWNERS.—Not later than 12 months foreclosures ‘‘(1) have been originated by a mortgagee after the date of enactment of the Reverse SEC. 702. PURPOSES AND METHODS FOR ESTAB- approved by the Secretary;’’; Mortgage Proceeds Protection Act, the Sec- LISHING A MORTGAGE LICENSING (2) by amending subsection (d)(2)(B) to read retary shall, in consultation with other rel- SYSTEM AND REGISTRY. as follows: evant Federal departments and agencies, In order to increase uniformity, reduce ‘‘(B) has received adequate counseling, as promulgate regulations to help protect el- regulatory burden, enhance consumer pro- provided in subsection (f), by an independent derly homeowners from the marketing of fi- tection, and reduce fraud, the States, third party that is not, either directly or in- nancial and insurance products not in the in- through the Conference of State Bank Super- directly, associated with or compensated by terest of such homeowners, including the visors and the American Association of Resi- a party involved in- marketing or sale of an annuity or invest- dential Mortgage Regulators, are hereby en- ‘‘(i) originating or servicing the mortgage; ment associated with obtaining, or as a con- couraged to establish a Nationwide Mortgage ‘‘(ii) funding the loan underlying the mort- dition of obtaining, any home equity conver- Licensing System and Registry for the resi- gage; or sion mortgage. dential mortgage industry that accomplishes ‘‘(iii) the sale of annuities, investments, ‘‘(p) STUDY TO DETERMINE CONSUMER PRO- all of the following objectives: long-term care insurance, or any other type TECTIONS AND UNDERWRITING STANDARDS.— (1) Provides uniform license applications of financial or insurance product;’’; The Secretary shall conduct a study to ex- and reporting requirements for State-li- (3) in subsection (f)— amine and determine appropriate consumer censed loan originators. (A) by striking ‘‘(f) INFORMATION SERVICES protections and underwriting standards to (2) Provides a comprehensive licensing and FOR MORTGAGORS.—’’ and inserting ‘‘(f) COUN- ensure that the purchase of products referred supervisory database. SELING SERVICES AND INFORMATION FOR to in subsection (n) is appropriate for the (3) Aggregates and improves the flow of in- MORTGAGORS.—’’; and consumer. In conducting such study, the formation to and between regulators. (B) by amending the matter preceding Secretary shall consult with consumer advo- (4) Provides increased accountability and paragraph (1) to read as follows: ‘‘The Sec- cates (including recognized experts in con- tracking of loan originators. retary shall provide or cause to be provided sumer protection), industry representatives, (5) Streamlines the licensing process and adequate counseling for the mortgagor, as representatives of counseling organizations, reduces the regulatory burden. described in subsection (d)(2)(B). Such coun- and other interested parties.’’. (6) Enhances consumer protections and seling shall be provided by counselors that supports anti-fraud measures. meet qualification standards and follow uni- SA 4410. Mrs. FEINSTEIN (for her- (7) Provides consumers with easily acces- form counseling protocols. The qualification self, Mr. MARTINEZ, Mrs. BOXER, Mr. sible information, offered at no charge, uti- standards and counseling protocols shall be OBAMA, Mr. SALAZAR, Mrs. DOLE, Mr. lizing electronic media, including the Inter- established by the Secretary within 12 DURBIN, and Mrs. CLINTON) submitted net, regarding the employment history of, months of the date of enactment of the Re- an amendment intended to be proposed and publicly adjudicated disciplinary and en- verse Mortgage Proceeds Protection Act. forcement actions against, loan originators. The protocols shall require a qualified coun- by her to the bill H.R. 3221, moving the (8) Establishes a means by which residen- selor to discuss with each mortgagor infor- United States toward greater energy tial mortgage loan originators would be re- mation which shall include—’’ independence and security, developing quired to act in the best interests of the con- (4) striking subsection (l); innovative new technologies, reducing sumer, to the greatest extent possible.

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00149 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.103 S03APPT1 ccoleman on PRODPC75 with SENATE S2516 CONGRESSIONAL RECORD — SENATE April 3, 2008 SEC. 703. DEFINITIONS. viding financing with respect to any such lower credit scores, debt-to-income ratios, For purposes of this title, the following transaction); and other relevant criteria; and definitions shall apply: (vi) engaging in any activity for which a (C) the characteristics of which may in- (1) FEDERAL BANKING AGENCIES.—The term person engaged in the activity is required to clude— ‘‘Federal banking agencies’’ means the Board be registered or licensed as a real estate (i) low initial payments based on a fixed in- of Governors of the Federal Reserve System, agent or real estate broker under any appli- troductory rate that expires after a short pe- the Comptroller of the Currency, the Direc- cable law; and riod and then adjusts to a variable index rate tor of the Office of Thrift Supervision, the (vii) offering to engage in any activity, or plus a margin for the remaining term of the National Credit Union Administration, and act in any capacity, described in clause (i), loan; the Federal Deposit Insurance Corporation. (ii), (iii), (iv), (v), or (vi). (ii) very high or no limits on how much the (4) LOAN PROCESSOR OR UNDERWRITER.— (2) DEPOSITORY INSTITUTION.—The term payment amount or the interest rate may in- ‘‘depository institution’’ has the same mean- (A) IN GENERAL.—The term ‘‘loan processor crease (referred to as ‘‘payment caps’’ or ing as in section 3 of the Federal Deposit In- or underwriter’’ means an individual who ‘‘rate caps’’) on reset dates; surance Act, and includes any credit union. performs clerical or support duties at the di- (iii) limited or no documentation of the in- rection of and subject to the supervision and (3) LOAN ORIGINATOR.— come of the borrower; instruction of— (A) IN GENERAL.—The term ‘‘loan origi- (iv) product features likely to result in fre- (i) a State-licensed loan originator; or nator’’— quent refinancing to maintain an affordable (ii) a registered loan originator. (i) means an individual who— monthly payment; and (B) CLERICAL OR SUPPORT DUTIES.—For pur- (I) takes a residential mortgage loan appli- (v) substantial prepayment penalties or poses of subparagraph (A), the term ‘‘clerical cation; prepayment penalties that extend beyond or support duties’’ may include— (II) assists a consumer in obtaining or ap- the initial fixed interest rate period. (i) the receipt, collection, distribution, and plying to obtain a residential mortgage loan; (11) UNIQUE IDENTIFIER.—The term ‘‘unique analysis of information common for the or identifier’’ means a number or other identi- processing or underwriting of a residential (III) offers or negotiates terms of a residen- fier that— mortgage loan; and (A) permanently identifies a loan origi- tial mortgage loan, for direct or indirect (ii) communicating with a consumer to ob- compensation or gain, or in the expectation nator; and tain the information necessary for the proc- (B) is assigned by protocols established by of direct or indirect compensation or gain; essing or underwriting of a loan, to the ex- (ii) includes any individual who represents the Nationwide Mortgage Licensing System tent that such communication does not in- and Registry and the Federal banking agen- to the public, through advertising or other clude offering or negotiating loan rates or means of communicating or providing infor- cies to facilitate electronic tracking of loan terms, or counseling consumers about resi- originators and uniform identification of, mation (including the use of business cards, dential mortgage loan rates or terms. stationery, brochures, signs, rate lists, or and public access to, the employment his- (5) NATIONWIDE MORTGAGE LICENSING SYS- tory of and the publicly adjudicated discipli- other promotional items), that such indi- TEM AND REGISTRY.—The term ‘‘Nationwide vidual can or will provide or perform any of nary and enforcement actions against loan Mortgage Licensing System and Registry’’ originators. the activities described in clause (i); means a mortgage licensing system devel- (iii) does not include any individual who is oped and maintained by the Conference of SEC. 704. LICENSE OR REGISTRATION REQUIRED. not otherwise described in clause (i) or (ii) State Bank Supervisors and the American (a) IN GENERAL.—An individual may not and who performs purely administrative or Association of Residential Mortgage Regu- engage in the business of a loan originator clerical tasks on behalf of a person who is de- lators for the State licensing and registra- without first— scribed in any such clause; and tion of State-licensed loan originators and (1) obtaining and maintaining, through an (iv) does not include a person or entity the registration of registered loan origina- annual renewal— that only performs real estate brokerage actors or any system established by the Sec- (A) a registration as a registered loan tivities and is licensed or registered in ac- retary under section 709. originator; or cordance with applicable State law, unless (6) REGISTERED LOAN ORIGINATOR.—The (B) a license and registration as a State-li- the person or entity is compensated by a term ‘‘registered loan originator’’ means any censed loan originator; and lender, a mortgage broker, or other loan individual who— (2) obtaining a unique identifier. originator or by any agent of such lender, (A) meets the definition of loan originator (b) LOAN PROCESSORS AND UNDERWRITERS.— mortgage broker, or other loan originator. and is an employee of a depository institu- (1) SUPERVISED LOAN PROCESSORS AND UN- (B) OTHER DEFINITIONS RELATING TO LOAN tion or a wholly-owned subsidiary of a depos- DERWRITERS.—A loan processor or under- ORIGINATOR.—For purposes of this sub- itory institution; and writer who does not represent to the public, section, an individual ‘‘assists a consumer in (B) is registered with, and maintains a through advertising or other means of com- obtaining or applying to obtain a residential unique identifier through, the Nationwide municating or providing information (in- mortgage loan’’ by, among other things, ad- Mortgage Licensing System and Registry. cluding the use of business cards, stationery, vising on loan terms (including rates, fees, (7) RESIDENTIAL MORTGAGE LOAN.—The brochures, signs, rate lists, or other pro- other costs), preparing loan packages, or col- term ‘‘residential mortgage loan’’ means any motional items), that such individual can or lecting information on behalf of the con- loan primarily for personal, family, or house- will perform any of the activities of a loan sumer with regard to a residential mortgage hold use that is secured by a mortgage, deed originator shall not be required to be a loan. of trust, or other equivalent consensual secu- State-licensed loan originator or a registered (C) ADMINISTRATIVE OR CLERICAL TASKS.— rity interest on a dwelling (as defined in sec- loan originator. The term ‘‘administrative or clerical tasks’’ tion 103(v) of the Truth in Lending Act) or (2) INDEPENDENT CONTRACTORS.—A loan means the receipt, collection, and distribu- residential real estate upon which is con- processor or underwriter may not work as an tion of information common for the proc- structed or intended to be constructed a independent contractor unless such processing or underwriting of a loan in the mort- dwelling (as so defined). essor or underwriter is a State-licensed loan gage industry and communication with a (8) SECRETARY.—The term ‘‘Secretary’’ originator or a registered loan originator. consumer to obtain information necessary means the Secretary of Housing and Urban for the processing or underwriting of a resi- Development. SEC. 705. STATE LICENSE AND REGISTRATION AP- dential mortgage loan. (9) STATE-LICENSED LOAN ORIGINATOR.—The PLICATION AND ISSUANCE. (D) REAL ESTATE BROKERAGE ACTIVITY DE- term ‘‘State-licensed loan originator’’ means (a) BACKGROUND CHECKS.—In connection FINED.—The term ‘‘real estate brokerage ac- any individual who— with an application to any State for licens- tivity’’ means any activity that involves of- (A) is a loan originator; ing and registration as a State-licensed loan fering or providing real estate brokerage (B) is not an employee of a depository in- originator, the applicant shall, at a min- services to the public, including— stitution or any wholly-owned subsidiary of imum, furnish to the Nationwide Mortgage (i) acting as a real estate agent or real es- a depository institution; and Licensing System and Registry information tate broker for a buyer, seller, lessor, or les- (C) is licensed by a State or by the Sec- concerning the applicant’s identity, includ- see of real property; retary under section 708 and registered as a ing— (ii) listing or advertising real property for loan originator with, and maintains a unique (1) fingerprints for submission to the Fed- sale, purchase, lease, rental, or exchange; identifier through, the Nationwide Mortgage eral Bureau of Investigation, and any gov- (iii) providing advice in connection with Licensing System and Registry. ernmental agency or entity authorized to resale, purchase, lease, rental, or exchange of (10) SUBPRIME MORTGAGE.—The term ceive such information for a State and na- real property; ‘‘subprime mortgage’’ means a residential tional criminal history background check; (iv) bringing together parties interested in mortgage loan— and the sale, purchase, lease, rental, or exchange (A) that is secured by real property that is (2) personal history and experience, includ- of real property; used or intended to be used as a principal ing authorization for the System to obtain— (v) negotiating, on behalf of any party, any dwelling; (A) an independent credit report obtained portion of a contract relating to the sale, (B) that is typically offered to borrowers from a consumer reporting agency described purchase, lease, rental, or exchange of real having weakened credit histories and rein section 603(p) of the Fair Credit Reporting property (other than in connection with produced repayment capacity, as measured by Act; and

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(B) information related to any administra- (A) PASSING SCORE.—An individual shall SEC. 707. SYSTEM OF REGISTRATION ADMINIS- tive, civil or criminal findings by any gov- not be considered to have passed a qualified TRATION BY FEDERAL BANKING ernmental jurisdiction. written test unless the individual achieves a AGENCIES. (a) DEVELOPMENT.— (b) ISSUANCE OF LICENSE.—The minimum test score of not less than 75 percent correct (1) IN GENERAL.—The Federal banking standards for licensing and registration as a answers to questions. agencies shall jointly, through the Federal State-licensed loan originator shall include (B) INITIAL RETESTS.—An individual may Financial Institutions Examination Council, the following: retake a test 3 consecutive times with each develop and maintain a system for reg- (1) The applicant has never had a loan consecutive taking occurring in less than 14 istering employees of depository institutions originator or similar license revoked in any days after the preceding test. or subsidiaries of depository institutions as governmental jurisdiction. (C) SUBSEQUENT RETESTS.—After 3 consecu- registered loan originators with the Nation- tive tests, an individual shall wait at least 14 (2) The applicant has never been convicted wide Mortgage Licensing System and Reg- days before taking the test again. of, or pled guilty or nolo contendere to, a fel- istry. The system shall be implemented be- (D) RETEST AFTER LAPSE OF LICENSE.—A ony in a domestic, foreign, or military court. fore the end of the 1-year period beginning State-licensed loan originator who fails to (3) The applicant has demonstrated finan- on the date of the enactment of this title. cial responsibility, character, and general maintain a valid license for a period of 5 (2) REGISTRATION REQUIREMENTS.—In con- years or longer shall retake the test, not fitness such as to command the confidence of nection with the registration of any loan taking into account any time during which the community and to warrant a determina- originator who is an employee of a deposi- tion that the loan originator will operate such individual is a registered loan origi- tory institution or a wholly-owned sub- honestly, fairly, and efficiently within the nator. sidiary of a depository institution with the purposes of this title. (e) MORTGAGE CALL REPORTS.—Each mort- Nationwide Mortgage Licensing System and (4) The applicant has completed the pre-li- gage licensee shall submit to the Nationwide Registry, the appropriate Federal banking censing education requirement described in Mortgage Licensing System and Registry re- agency shall, at a minimum, furnish or cause subsection (c). ports of condition, which shall be in such to be furnished to the Nationwide Mortgage (5) The applicant has passed a written test form and shall contain such information as Licensing System and Registry information that meets the test requirement described in concerning the employees’s identity, includ- subsection (d). the Nationwide Mortgage Licensing System and Registry may require. ing— (6) The applicant has met a minimum net (A) fingerprints for submission to the Fed- worth requirement. SEC. 706. STANDARDS FOR STATE LICENSE RE- eral Bureau of Investigation, and any gov- (c) PRE-LICENSING EDUCATION OF LOAN NEWAL. ernmental agency or entity authorized to re- ORIGINATORS.— ceive such information for a State and na- (a) IN GENERAL.—The minimum standards (1) MINIMUM EDUCATIONAL REQUIREMENTS.— tional criminal history background check; for license renewal for State-licensed loan In order to meet the pre-licensing education and originators shall include the following: requirement referred to in subsection (b)(4), (B) personal history and experience, in- (1) The loan originator continues to meet a person shall complete at least 20 hours of cluding authorization for the Nationwide the minimum standards for license issuance. education approved in accordance with para- Mortgage Licensing System and Registry to (2) The loan originator has satisfied the an- graph (2), which shall include at least— obtain information related to any adminis- nual continuing education requirements de- (A) 3 hours of Federal law and regulations; trative, civil or criminal findings by any scribed in subsection (b). (B) 3 hours of ethics, which shall include governmental jurisdiction. instruction on fraud, consumer protection, (b) CONTINUING EDUCATION FOR STATE-LI- (b) COORDINATION.— and fair lending issues; and CENSED LOAN ORIGINATORS.— (1) UNIQUE IDENTIFIER.—The Federal bank- (C) 2 hours of training related to lending (1) IN GENERAL.—In order to meet the an- ing agencies, through the Financial Institu- standards for the subprime mortgage mar- nual continuing education requirements re- tions Examination Council, shall coordinate ketplace. ferred to in subsection (a)(2), a State-li- with the Nationwide Mortgage Licensing (2) APPROVED EDUCATIONAL COURSES.—For censed loan originator shall complete at System and Registry to establish protocols purposes of paragraph (1), pre-licensing edu- least 8 hours of education approved in ac- for assigning a unique identifier to each reg- cation courses shall be reviewed, and ap- cordance with paragraph (2), which shall in- istered loan originator that will facilitate proved by the Nationwide Mortgage Licens- clude at least— electronic tracking and uniform identifica- ing System and Registry. (A) 3 hours of Federal law and regulations; tion of, and public access to, the employ- (3) LIMITATION AND STANDARDS.— (B) 2 hours of ethics, which shall include ment history of and publicly adjudicated dis- (A) LIMITATION.—To maintain the inde- instruction on fraud, consumer protection, ciplinary and enforcement actions against pendence of the approval process, the Na- and fair lending issues; and loan originators. tionwide Mortgage Licensing System and (C) 2 hours of training related to lending (2) NATIONWIDE MORTGAGE LICENSING SYS- Registry shall not directly or indirectly offer standards for the subprime mortgage mar- TEM AND REGISTRY DEVELOPMENT.—To facili- pre-licensure educational courses for loan ketplace. tate the transfer of information required by originators. (2) APPROVED EDUCATIONAL COURSES.—For subsection (a)(2), the Nationwide Mortgage (B) STANDARDS.—In approving courses purposes of paragraph (1), continuing edu- Licensing System and Registry shall coordi- under this section, the Nationwide Mortgage cation courses shall be reviewed, and ap- nate with the Federal banking agencies, Licensing System and Registry shall apply proved by the Nationwide Mortgage Licens- through the Financial Institutions Examina- reasonable standards in the review and ap- ing System and Registry. tion Council, concerning the development proval of courses. (3) CALCULATION OF CONTINUING EDUCATION and operation, by such System and Registry, (d) TESTING OF LOAN ORIGINATORS.— CREDITS.—A State-licensed loan originator— of the registration functionality and data re- (1) IN GENERAL.—In order to meet the writ- (A) may only receive credit for a con- quirements for loan originators. ten test requirement referred to in sub- tinuing education course in the year in (c) CONSIDERATION OF FACTORS AND PROCE- section (b)(5), an individual shall pass, in ac- which the course is taken; and DURES.—In establishing the registration pro- cordance with the standards established (B) may not take the same approved course cedures under subsection (a) and the proto- under this subsection, a qualified written in the same or successive years to meet the cols for assigning a unique identifier to a test developed by the Nationwide Mortgage annual requirements for continuing edu- registered loan originator, the Federal bank- Licensing System and Registry and adminis- cation. ing agencies shall make such de minimis ex- tered by an approved test provider. (4) INSTRUCTOR CREDIT.—A State-licensed ceptions as may be appropriate to para- (2) QUALIFIED TEST.—A written test shall loan originator who is approved as an in- graphs (1)(A) and (2) of section 704(a), shall not be treated as a qualified written test for structor of an approved continuing education make reasonable efforts to utilize existing purposes of paragraph (1) unless— course may receive credit for the origina- information to minimize the burden of reg- (A) the test consists of a minimum of 100 tor’s own annual continuing education re- istering loan originators, and shall consider methods for automating the process to the questions; and quirement at the rate of 2 hours credit for greatest extent practicable consistent with (B) the test adequately measures the appli- every 1 hour taught. the purposes of this title. cant’s knowledge and comprehension in ap- (5) LIMITATION AND STANDARDS.— SEC. 708. SECRETARY OF HOUSING AND URBAN propriate subject areas, including— (A) LIMITATION.—To maintain the inde- DEVELOPMENT BACKUP AUTHORITY (i) ethics; pendence of the approval process, the Na- TO ESTABLISH A LOAN ORIGINATOR (ii) Federal law and regulation pertaining tionwide Mortgage Licensing System and LICENSING SYSTEM. to mortgage origination; Registry shall not directly or indirectly offer (a) BACK UP LICENSING SYSTEM.—If, by the (iii) State law and regulation pertaining to any continuing education courses for loan end of the 1-year period, or the 2-year period mortgage origination; and originators. in the case of a State whose legislature (iv) Federal and State law and regulation, (B) STANDARDS.—In approving courses meets only biennially, beginning on the date including instruction on fraud, consumer under this section, the Nationwide Mortgage of the enactment of this title or at any time protection, subprime mortgage marketplace, Licensing System and Registry shall apply thereafter, the Secretary determines that a and fair lending issues. reasonable standards in the review and ap- State does not have in place by law or regu- (3) MINIMUM COMPETENCE.— proval of courses. lation a system for licensing and registering

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LIABILITY PROVISIONS. the Nationwide Mortgage Licensing System ing System and Registry may charge reason- The Secretary, any State official or agen- and Registry, the Secretary shall provide for able fees to cover the costs of maintaining cy, any Federal banking agency, or any orga- the establishment and maintenance of a sys- and providing access to information from the nization serving as the administrator of the tem for the licensing and registration by the Nationwide Mortgage Licensing System and Nationwide Mortgage Licensing System and Secretary of loan originators operating in Registry, to the extent that such fees are not Registry or a system established by the Sec- such State as State-licensed loan origina- charged to consumers for access to such sys- retary under section 9, or any officer or em- tors. tem and registry. ployee of any such entity, shall not be sub- (b) LICENSING AND REGISTRATION REQUIRE- SEC. 711. BACKGROUND CHECKS OF LOAN ORIGI- ject to any civil action or proceeding for MENTS.—The system established by the Sec- NATORS. monetary damages by reason of the good- retary under subsection (a) for any State (a) ACCESS TO RECORDS.—Notwithstanding faith action or omission of any officer or em- shall meet the requirements of sections 705 any other provision of law, in providing iden- ployee of any such entity, while acting with- and 706 for State-licensed loan originators. tification and processing functions, the At- in the scope of office or employment, relat- (c) UNIQUE IDENTIFIER.—The Secretary torney General shall provide access to all ing to the collection, furnishing, or dissemi- shall coordinate with the Nationwide Mort- criminal history information to the appro- nation of information concerning persons gage Licensing System and Registry to es- priate State officials responsible for regu- who are loan originators or are applying for tablish protocols for assigning a unique iden- lating State-licensed loan originators to the licensing or registration as loan originators. tifier to each loan originator licensed by the extent criminal history background checks SEC. 714. ENFORCEMENT UNDER HUD BACKUP Secretary as a State-licensed loan originator are required under the laws of the State for LICENSING SYSTEM. that will facilitate electronic tracking and the licensing of such loan originators. (a) SUMMONS AUTHORITY.—The Secretary uniform identification of, and public access (b) AGENT.—For the purposes of this sec- may— to, the employment history of and the pub- tion and in order to reduce the points of con- (1) examine any books, papers, records, or licly adjudicated disciplinary and enforce- tact which the Federal Bureau of Investiga- other data of any loan originator operating ment actions against loan originators. tion may have to maintain for purposes of in any State which is subject to a licensing (d) STATE LICENSING LAW REQUIREMENTS.— subsection (a), the Conference of State Bank system established by the Secretary under For purposes of this section, the law in effect Supervisors or a wholly owned subsidiary section 708; and in a State meets the requirements of this may be used as a channeling agent of the (2) summon any loan originator referred to subsection if the Secretary determines the States for requesting and distributing infor- in paragraph (1) or any person having posses- law satisfies the following minimum require- mation between the Department of Justice sion, custody, or care of the reports and ments: and the appropriate State agencies. records relating to such loan originator, to (1) A State loan originator supervisory au- SEC. 712. CONFIDENTIALITY OF INFORMATION. appear before the Secretary or any delegate thority is maintained to provide effective su- (a) SYSTEM CONFIDENTIALITY.—Except as of the Secretary at a time and place named pervision and enforcement of such law, in- otherwise provided in this section, any rein the summons and to produce such books, cluding the suspension, termination, or non- quirement under Federal or State law re- papers, records, or other data, and to give renewal of a license for a violation of State garding the privacy or confidentiality of any testimony, under oath, as may be relevant or or Federal law. information or material provided to the Na- material to an investigation of such loan (2) The State loan originator supervisory tionwide Mortgage Licensing System and originator for compliance with the require- authority ensures that all State-licensed Registry or a system established by the Sec- ments of this title. loan originators operating in the State are retary under section 709, and any privilege (b) EXAMINATION AUTHORITY.— registered with Nationwide Mortgage Licens- arising under Federal or State law (including (1) IN GENERAL.—If the Secretary estab- ing System and Registry. the rules of any Federal or State court) with lishes a licensing system under section 708 (3) The State loan originator supervisory respect to such information or material, for any State, the Secretary shall appoint authority is required to regularly report vio- shall continue to apply to such information examiners for the purposes of administering lations of such law, as well as enforcement or material after the information or mate- such section. actions and other relevant information, to rial has been disclosed to the system. Such (2) POWER TO EXAMINE.—Any examiner ap- the Nationwide Mortgage Licensing System information and material may be shared pointed under paragraph (1) shall have and Registry. with all State and Federal regulatory offi- power, on behalf of the Secretary, to make (e) TEMPORARY EXTENSION OF PERIOD.—The cials with mortgage industry oversight au- any examination of any loan originator oper- Secretary may extend, by not more than 12 thority without the loss of privilege or the ating in any State which is subject to a li- months, the 1-year or 2-year period, as the loss of confidentiality protections provided censing system established by the Secretary case may be, referred to in subsection (a) for by Federal and State laws. under section 708 whenever the Secretary de- the licensing of loan originators in any State (b) NONAPPLICABILITY OF CERTAIN REQUIRE- termines an examination of any loan origi- under a State licensing law that meets the MENTS.—Information or material that is sub- nator is necessary to determine the compli- requirements of sections 705 and 706 and subject to a privilege or confidentiality under ance by the originator with this title. section (d) if the Secretary determines that subsection (a) shall not be subject to— (3) REPORT OF EXAMINATION.—Each exam- such State is making a good faith effort to (1) disclosure under any Federal or State iner appointed under paragraph (1) shall establish a State licensing law that meets law governing the disclosure to the public of make a full and detailed report of examina- such requirements, license mortgage origina- information held by an officer or an agency tion of any loan originator examined to the tors under such law, and register such origi- of the Federal Government or the respective Secretary. nators with the Nationwide Mortgage Li- State; or (4) ADMINISTRATION OF OATHS AND AFFIRMA- censing System and Registry. (2) subpoena or discovery, or admission TIONS; EVIDENCE.—In connection with exami- (f) LIMITATION ON HUD-LICENSED LOAN into evidence, in any private civil action or nations of loan originators operating in any ORIGINATORS.—Any loan originator who is li- administrative process, unless with respect State which is subject to a licensing system censed by the Secretary under a system es- to any privilege held by the Nationwide established by the Secretary under section tablished under this section for any State Mortgage Licensing System and Registry or 708, or with other types of investigations to may not use such license to originate loans the Secretary with respect to such informa- determine compliance with applicable law in any other State. tion or material, the person to whom such and regulations, the Secretary and exam- (g) CONTRACTING AUTHORITY.—The Sec- information or material pertains waives, in iners appointed by the Secretary may admin- retary may enter into contracts with quali- whole or in part, in the discretion of such ister oaths and affirmations and examine fied independent parties, as necessary to effi- person, that privilege. and take and preserve testimony under oath ciently fulfill the obligations of the Sec- (c) COORDINATION WITH OTHER LAW.—Any as to any matter in respect to the affairs of retary under this Section. State law, including any State open record any such loan originator. SEC. 709. BACKUP AUTHORITY TO ESTABLISH A law, relating to the disclosure of confidential (5) ASSESSMENTS.—The cost of conducting NATIONWIDE MORTGAGE LICENSING supervisory information or any information any examination of any loan originator oper- AND REGISTRY SYSTEM. or material described in subsection (a) that ating in any State which is subject to a li- If at any time the Secretary determines is inconsistent with subsection (a) shall be censing system established by the Secretary that the Nationwide Mortgage Licensing superseded by the requirements of such pro- under section 708 shall be assessed by the System and Registry is failing to meet the vision to the extent State law provides less Secretary against the loan originator to requirements and purposes of this title for a confidentiality or a weaker privilege. meet the Secretary’s expenses in carrying comprehensive licensing, supervisory, and (d) PUBLIC ACCESS TO INFORMATION.—This out such examination. tracking system for loan originators, the section shall not apply with respect to the (c) CEASE AND DESIST PROCEEDING.— Secretary shall establish and maintain such information or material relating to the em- (1) AUTHORITY OF SECRETARY.—If the Sec- a system to carry out the purposes of this ployment history of, and publicly adju- retary finds, after notice and opportunity for title and the effective registration and regu- dicated disciplinary and enforcement actions hearing, that any person is violating, has lation of loan originators. against, loan originators that is included in violated, or is about to violate any provision

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00152 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.105 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2519 of this title, or any regulation thereunder, the respondent may apply to the United submit to Congress a preliminary report re- with respect to a State which is subject to a States district court for the district in which garding the study required by this section. licensing system established by the Sec- the respondent resides or has its principal (c) FINAL REPORT TO CONGRESS.—Not later retary under section 708, the Secretary may place of business, or for the District of Co- than 12 months after the date of enactment publish such findings and enter an order re- lumbia, for an order setting aside, limiting, of this title, the Secretary shall submit to quiring such person, and any other person or suspending the effectiveness or enforce- Congress a final report regarding the results that is, was, or would be a cause of the viola- ment of the order, and the court shall have of the study required by this section, which tion, due to an act or omission the person jurisdiction to enter such an order. A re- shall include any recommended legislation knew or should have known would con- spondent served with a temporary cease-and- relating to the study, and recommendations tribute to such violation, to cease and desist desist order entered without a prior hearing for best practices and for a process to pro- from committing or causing such violation before the Secretary may not apply to the vide targeted assistance to populations with and any future violation of the same provi- court except after hearing and decision by the highest risk of potential default or fore- sion, rule, or regulation. Such order may, in the Secretary on the respondent’s applica- closure. addition to requiring a person to cease and tion under subparagraph (A). desist from committing or causing a viola- (C) NO AUTOMATIC STAY OF TEMPORARY SA 4411. Mr. KOHL (for himself and tion, require such person to comply, or to ORDER.—The commencement of proceedings Mrs. LINCOLN) submitted an amend- take steps to effect compliance, with such under subparagraph (B) shall not, unless spe- ment intended to be proposed to provision or regulation, upon such terms and cifically ordered by the court, operate as a amendment SA 4387 submitted by Mr. conditions and within such time as the Sec- stay of the Secretary’s order. DODD (for himself and Mr. SHELBY) to retary may specify in such order. Any such (5) AUTHORITY OF THE SECRETARY TO PRO- the bill H.R. 3221, moving the United order may, as the Secretary deems appro- HIBIT PERSONS FROM SERVING AS LOAN ORIGI- priate, require future compliance or steps to States toward greater energy independ- NATORS.—In any cease-and-desist proceeding ence and security, developing innova- effect future compliance, either permanently under paragraph (1), the Secretary may issue or for such period of time as the Secretary an order to prohibit, conditionally or uncon- tive new technologies, reducing carbon may specify, with such provision or regula- ditionally, and permanently or for such pe- emissions, creating green jobs, pro- tion with respect to any loan originator. riod of time as the Secretary shall deter- tecting consumers, increasing clean re- (2) HEARING.—The notice instituting pro- mine, any person who has violated this title newable energy production, and mod- ceedings pursuant to paragraph (1) shall fix a or regulations thereunder, from acting as a ernizing our energy infrastructure, and hearing date not earlier than 30 days nor loan originator if the conduct of that person to amend the Internal Revenue Code of later than 60 days after service of the notice demonstrates unfitness to serve as a loan unless an earlier or a later date is set by the 1986 to provide tax incentives for the originator. production of renewable energy and en- Secretary with the consent of any respond- (d) AUTHORITY OF THE SECRETARY TO AS- ent so served. SESS MONEY PENALTIES.— ergy conservation; which was ordered (3) TEMPORARY ORDER.—Whenever the Sec- (1) IN GENERAL.—The Secretary may im- to lie on the table; as follows: retary determines that the alleged violation pose a civil penalty on a loan originator op- On page 82, between lines 7 and 8, insert or threatened violation specified in the no- erating in any State which is subject to li- the following: tice instituting proceedings pursuant to censing system established by the Secretary TITLE VII—FORECLOSURE RESCUE paragraph (1), or the continuation thereof, is under section 708, if the Secretary finds, on likely to result in significant dissipation or FRAUD the record after notice and opportunity for conversion of assets, significant harm to SEC. 701. DEFINITIONS. hearing, that such loan originator has vio- consumers, or substantial harm to the public In this title: lated or failed to comply with any require- interest prior to the completion of the pro- (1) COMMISSION.—The term ‘‘Commission’’ ment of this title or any regulation pre- ceedings, the Secretary may enter a tem- means the Federal Trade Commission. scribed by the Secretary under this title or porary order requiring the respondent to (2) FORECLOSURE CONSULTANT.—The term order issued under subsection (c). cease and desist from the violation or threat- ‘‘foreclosure consultant’’— (2) MAXIMUM AMOUNT OF PENALTY.—The ened violation and to take such action to (A) means a person who directly or indi- maximum amount of penalty for each act or prevent the violation or threatened violation rectly makes any solicitation, representa- omission described in paragraph (1) shall be and to prevent dissipation or conversion of tion, or offer to a homeowner facing fore- $5,000 for each day the violation continues. assets, significant harm to consumers, or closure on residential real property to per- substantial harm to the public interest as SEC. 715. PREEMPTION OF STATE LAW. form, with or without compensation, or who the Secretary deems appropriate pending Nothing in this title may be construed to performs, with or without compensation, any completion of such proceedings. Such an preempt the law of any State, to the extent service that such person represents will pre- order shall be entered only after notice and that such State law provides greater protec- vent, postpone, or reverse the effect of such opportunity for a hearing, unless the Sec- tion to consumers than is provided under foreclosure; and retary determines that notice and hearing this title. (B) does not include— prior to entry would be impracticable or con- SEC. 716. REPORTS AND RECOMMENDATIONS TO (i) an attorney licensed to practice law in trary to the public interest. A temporary CONGRESS. the State in which the property is located order shall become effective upon service (a) ANNUAL REPORTS.—Not later than 1 who has established an attorney-client rela- upon the respondent and, unless set aside, year after the date of enactment of this title, tionship with the homeowner; limited, or suspended by the Secretary or a and annually thereafter, the Secretary shall (ii) a housing counseling agency approved court of competent jurisdiction, shall remain submit a report to Congress on the effective- by the Secretary; or effective and enforceable pending the com- ness of the provisions of this title, including (iii) a person licensed as a real estate pletion of the proceedings. legislative recommendations, if any, for broker or salesperson in the State where the (4) REVIEW OF TEMPORARY ORDERS.— strengthening consumer protections, enhanc- property is located, and such person engages (A) REVIEW BY SECRETARY.—At any time ing examination standards, and streamlining in acts permitted under the licensure laws of after the respondent has been served with a communication between all stakeholders in- such State. temporary cease-and-desist order pursuant volved in residential mortgage loan origina- (3) HOMEOWNER.—The term ‘‘homeowner’’, to paragraph (3), the respondent may apply tion and processing. with respect to residential real property for to the Secretary to have the order set aside, (b) LEGISLATIVE RECOMMENDATIONS.—Not which an action to foreclose on the mortgage limited, or suspended. If the respondent has later than 6 months after the date of enact- or deed of trust on such real property is been served with a temporary cease-and-de- ment of this title, the Secretary shall make filed, means the person holding record title sist order entered without a prior hearing be- recommendations to Congress on legislative to such property as of the date on which such fore the Secretary, the respondent may, reforms to the Real Estate Settlement Pro- action is filed. within 10 days after the date on which the cedures Act of 1974, that the Secretary deems (4) LOAN SERVICER.—The term ‘‘loan order was served, request a hearing on such appropriate to promote more transparent servicer’’ has the same meaning as the term application and the Secretary shall hold a disclosures, allowing consumers to better ‘‘servicer’’ in section 6(i)(2) of the Real Es- hearing and render a decision on such appli- shop and compare mortgage loan terms and tate Settlement Procedures Act of 1974 (12 cation at the earliest possible time. settlement costs. U.S.C. 2605(i)(2)). (B) JUDICIAL REVIEW.—Within— SEC. 717. STUDY AND REPORTS ON DEFAULTS (5) RESIDENTIAL MORTGAGE LOAN.—The (i) 10 days after the date the respondent AND FORECLOSURES. term ‘‘residential mortgage loan’’ means any was served with a temporary cease-and-de- (a) STUDY REQUIRED.—The Secretary shall loan primarily for personal, family, or house- sist order entered with a prior hearing before conduct an extensive study of the root hold use that is secured by a mortgage, deed the Secretary; or causes of default and foreclosure of home of trust, or other equivalent consensual secu- (ii) 10 days after the Secretary renders a loans, using as much empirical data as is rity interest on a dwelling (as defined in sec- decision on an application and hearing under available. tion 103(v) of the Truth in Lending Act (15 paragraph (1), with respect to any temporary (b) PRELIMINARY REPORT TO CONGRESS.— U.S.C. 1602)(v)) or residential real estate cease-and-desist order entered without a Not later than 6 months after the date of en- upon which is constructed or intended to be prior hearing before the Secretary, actment of this title, the Secretary shall constructed a dwelling (as so defined).

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(6) RESIDENTIAL REAL PROPERTY.—The term sultant regarding the foreclosure on the resi- spect to any other person shall be liable to ‘‘residential real property’’ has the meaning dential real property of such homeowner, such person in an amount equal to the sum given the term ‘‘dwelling’’ in section 103 of such homeowner may cancel such contract of the amounts determined under each of the the Consumer Credit Protection Act (15 without penalty or obligation by mailing a following paragraphs: U.S.C. 1602). notice of cancellation not later than mid- (1) ACTUAL DAMAGES.—The greater of— (7) SECRETARY.—The term ‘‘Secretary’’ night of the 3rd business day after the date (A) the amount of any actual damage sus- means the Secretary of Housing and Urban on which such contract is executed or would tained by such person as a result of such fail- Development. become enforceable against the parties to ure; or SEC. 702. MORTGAGE RESCUE FRAUD PROTEC- such contract. (B) any amount paid by the person to the TION. (2) CANCELLATION FORM AND OTHER INFOR- foreclosure consultant. (a) LIMITS ON FORECLOSURE CONSULTANTS.— MATION.—Each contract described in para- (2) PUNITIVE DAMAGES.— A foreclosure consultant may not— graph (1) shall be accompanied by a form, in (A) INDIVIDUAL ACTIONS.—In the case of any (1) claim, demand, charge, collect, or re- duplicate, that— action by an individual, such amount (in ad- ceive any compensation from a homeowner (A) has the heading ‘‘Notice of Cancella- dition to damages described in paragraph (1)) for services performed by such foreclosure tion’’ in boldface type; and as the court may allow. consultant with respect to residential real (B) contains in boldface type the following (B) CLASS ACTIONS.—In the case of a class property until such foreclosure consultant statement: action, the sum of— has fully performed each service that such ‘‘You may cancel this contract, without (i) the aggregate of the amount which the foreclosure consultant contracted to perform any penalty or obligation, at any time before court may allow for each named plaintiff; or represented would be performed with re- midnight of the 3rd day after the date on and spect to such residential real property; which the contract is signed by you. (ii) the aggregate of the amount which the (2) hold any power of attorney from any ‘‘To cancel this contract, mail or deliver a court may allow for each other class mem- homeowner, except to inspect documents, as signed and dated copy of this cancellation ber, without regard to any minimum indi- provided by applicable law; notice or any other equivalent written no- vidual recovery. (3) receive any consideration from a third tice to [insert name of foreclosure consult- (3) ATTORNEYS’ FEES.—In the case of any party in connection with services rendered ant] at [insert address of foreclosure consult- successful action to enforce any liability to a homeowner by such third party with re- ant] before midnight on [insert date]. under paragraph (1) or (2), the costs of the spect to the foreclosure of residential real ‘‘I hereby cancel this transaction on [inaction, together with reasonable attorneys’ property, unless such consideration is fully sert date] [insert homeowner signature].’’. fees. disclosed to such homeowner in writing be- (d) WAIVER OF RIGHTS AND PROTECTIONS (b) FACTORS TO BE CONSIDERED IN AWARD- fore such services are rendered; PROHIBITED.— ING PUNITIVE DAMAGES.—In determining the (4) accept any wage assignment, any lien of (1) IN GENERAL.—A waiver by a homeowner amount of any liability of any foreclosure any type on real or personal property, or of any protection provided by this section or consultant under subsection (a)(2), the court other security to secure the payment of com- any right of a homeowner under this sec- shall consider, among other relevant fac- pensation with respect to services provided tion— tors— by such foreclosure consultant in connection (A) shall be treated as void; and (1) the frequency and persistence of non- with the foreclosure of residential real prop- (B) may not be enforced by any Federal or compliance by the foreclosure consultant; erty; or State court or by any person. (2) the nature of the noncompliance; (5) acquire any interest, directly or indi- (2) ATTEMPT TO OBTAIN A WAIVER.—Any at- (3) the extent to which such noncompliance rectly, in the residence of a homeowner with tempt by any person to obtain a waiver from was intentional; and whom the foreclosure consultant has con- any homeowner of any protection provided (4) in the case of any class action, the num- tracted. by this section or any right of the home- (b) CONTRACT REQUIREMENTS.— ber of consumers adversely affected. owner under this section shall be treated as (1) WRITTEN CONTRACT REQUIRED.—Notwith- SEC. 705. ADMINISTRATIVE ENFORCEMENT. standing any other provision of law, a fore- a violation of this section. (a) ENFORCEMENT BY FEDERAL TRADE COM- closure consultant may not provide to a (3) CONTRACTS NOT IN COMPLIANCE.—Any MISSION.— homeowner a service related to the fore- contract that does not comply with the ap- (1) UNFAIR OR DECEPTIVE ACT OR PRACTICE.— closure of residential real property— plicable provisions of this title shall be void A violation of a prohibition described in sec- (A) unless— and may not be enforceable by any party. tion 702 or a failure to comply with any pro- (i) a written contract for the purchase of SEC. 703. WARNINGS TO HOMEOWNERS OF FORE- vision of section 702 or 703 shall be treated as such service has been signed and dated by CLOSURE RESCUE SCAMS. a violation of a rule defining an unfair or de- the homeowner; and (a) IN GENERAL.—If a loan servicer finds ceptive act or practice described under sec- (ii) such contract complies with the re- that a homeowner has failed to make 2 con- tion 18(a)(1)(B) of the Federal Trade Commis- quirements described in paragraph (2); and secutive payments on a residential mortgage sion Act (15 U.S.C. 57a(a)(1)(B)). (B) before the end of the 3-business day pe- loan and such loan is at risk of being fore- (2) ACTIONS BY THE FEDERAL TRADE COMMIS- riod beginning on the date on which the con- closed upon, the loan servicer shall notify SION.—The Federal Trade Commission shall tract is signed. such homeowner of the dangers of fraudulent enforce the provisions of sections 702 and 703 (2) TERMS AND CONDITIONS OF CONTRACT.— activities associated with foreclosure. in the same manner, by the same means, and The requirements described in this para- (b) NOTICE REQUIREMENTS.—Each notice with the same jurisdiction, powers, and du- graph, with respect to a contract, are as fol- provided under subsection (a) shall— ties as though all applicable terms and provi- lows: (1) be in writing; sions of the Federal Trade Commission Act (A) The contract includes, in writing— (2) be included with a mailing of account (15 U.S.C. 41 et seq.) were incorporated into (i) a full and detailed description of the information; and made part of this title. exact nature of the contract and the total (3) have the heading ‘‘Notice Required by (b) STATE ACTION FOR VIOLATIONS.— amount and terms of compensation; Federal Law’’ in a 14-point boldface type in (1) AUTHORITY OF STATES.—In addition to (ii) the name, physical address, phone num- English and Spanish at the top of such no- such other remedies as are provided under ber, email address, and facsimile number, if tice; and State law, whenever the chief law enforce- any, of the foreclosure consultant to whom a (4) contain the following statement: ment officer of a State, or an official or notice of cancellation can be mailed or sent ‘‘Mortgage foreclosure is a complex process. agency designated by a State, has reason to under subsection (d); and Some people may approach you about saving believe that any person has violated or is (iii) a conspicuous statement in at least 12 your home. You should be careful about any violating the provisions of section 702 or 703, point bold face type in immediate proximity such promises. There are government and the State— to the space reserved for the homeowner’s nonprofit agencies you may contact for help- (A) may bring an action to enjoin such vio- signature on the contract that reads as fol- ful information about the foreclosure proc- lation; lows: ‘‘You may cancel this contract without ess. Contact your lender immediately at (B) may bring an action on behalf of its penalty or obligation at any time before [llll], call the Department of Housing residents to recover damages for which the midnight of the 3rd business day after the and Urban Development Housing Counseling person is liable to such residents under sec- date on which you sign the contract. See the Line at (800) 569-4287 to find a housing coun- tion 704 as a result of the violation; and attached notice of cancellation form for an seling agency certified by the Department to (C) in the case of any successful action explanation of this right.’’. assist you in avoiding foreclosure, or visit under subparagraph (A) or (B), shall be (B) The contract is written in the principal the Department’s Tips for Avoiding Fore- awarded the costs of the action and reason- language used by both the homeowner and closure website at http://www.hud.gov/fore- able attorney fees, as determined by the the foreclosure consultant. closure for additional assistance.’’ (the blank court. (C) The contract is accompanied by the space to be filled in by the loan servicer). (2) RIGHTS OF FEDERAL TRADE COMMISSION.— form required by subsection (c)(2). SEC. 704. CIVIL LIABILITY. (A) NOTICE TO COMMISSION.—The State shall (c) RIGHT TO CANCEL CONTRACT.— (a) LIABILITY ESTABLISHED.—Any fore- serve prior written notice of any civil action (1) IN GENERAL.—With respect to a contract closure consultant who fails to comply with under paragraph (1) upon the Commission between a homeowner and a foreclosure con- any provision of section 702 or 703 with re- and provide the Commission with a copy of

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its complaint, except in any case in which ‘‘(B) LIMITATIONS.—Subparagraph (A) shall ‘‘(iii) the refunding issue shall have been such prior notice is not feasible, in which apply to only one refunding of the original approved in accordance with section 147(f) case the State shall serve such notice imme- issue and only if— prior to the issuance of the refunding diately upon instituting such action. ‘‘(i) the refunding issue is issued not later issue.’’. (B) INTERVENTION.—The Commission shall than the earlier of— (b) CONFORMING AMENDMENT.—Clause (ii) of have the right— ‘‘(I) the date which is 4 years after the date section 42(h)(4)(A) of the Internal Revenue (i) to intervene in any action referred to in on which the original issue was issued, or Code of 1986 (relating to credits for buildings subparagraph (A); ‘‘(II) December 31, 2014, financed by tax-exempt bonds subject to vol- (ii) upon so intervening, to be heard on all ‘‘(ii) the refunded bond is issued before ume cap not taken into account) is amended matters arising in the action; and January 1, 2011, by inserting ‘‘or such financing is refunded (iii) to file petitions for appeal in such ac- ‘‘(iii) the latest maturity date of any bond as described in section 146(i)(6)’’ after ‘‘pro- tions. of the refunding issue is not later than 34 vide such financing’’. (3) INVESTIGATORY POWERS.—For purposes years after the date on which the refunded (c) EFFECTIVE DATE.—The amendments of bringing any action under this subsection, bond was issued, and made by this section shall apply to repay- nothing in this subsection shall prevent the ‘‘(iv) the refunding issue shall have been ments of conduit loans received after the chief law enforcement officer, or an official approved in accordance with section 147(f) date of the enactment of this Act. or agency designated by a State, from exer- prior to the issuance of the refunding cising the powers conferred on the chief law issue.’’. SA 4414. Mr. FEINGOLD (for himself enforcement officer or such official by the (b) CONFORMING AMENDMENT.—Clause (ii) of and Mr. COLEMAN) submitted an laws of such State to conduct investigations section 42(h)(4)(A) of the Internal Revenue amendment intended to be proposed to or to administer oaths or affirmations, or to Code of 1986 (relating to credits for buildings amendment SA 4387 submitted by Mr. compel the attendance of witnesses or the financed by tax-exempt bonds subject to vol- DODD (for himself and Mr. SHELBY) to production of documentary and other evi- ume cap not taken into account) is amended dence. by inserting ‘‘or such financing is refunded the bill H.R. 3221, moving the United (4) LIMITATION.—Whenever the Federal as described in section 146(i)(6)’’ after ‘‘pro- States toward greater energy independ- Trade Commission has instituted a civil ac- vide such financing’’. ence and security, developing innovation for a violation of section 702 or 703, no (c) EFFECTIVE DATE.—The amendments tive new technologies, reducing carbon State may, during the pendency of such ac- made by this section shall apply to repay- emissions, creating green jobs, pro- tion, bring an action under this section ments of conduit loans received after the tecting consumers, increasing clean re- against any defendant named in the com- date of the enactment of this Act. newable energy production, and mod- plaint of the Commission for any violation of ernizing our energy infrastructure, and section 702 or 703 that is alleged in that com- SA 4413. Mr. SCHUMER submitted an to amend the Internal Revenue Code of plaint. amendment intended to be proposed to 1986 to provide tax incentives for the SEC. 706. PREEMPTION. amendment SA 4387 submitted by Mr. production of renewable energy and en- DODD (for himself and Mr. SHELBY) to Nothing in this title affects any provision ergy conservation; which was ordered of State or local law respecting any fore- the bill H.R. 3221, moving the United to lie on the table; as follows: closure consultant, residential mortgage States toward greater energy independ- loan, or residential real property that pro- ence and security, developing innova- On page 53, line 24, strike ‘‘; and’’ and insert a semicolon. vides equal or greater protection to home- tive new technologies, reducing carbon owners than what is provided under this On page 53, line 25, strike the period and title. emissions, creating green jobs, pro- insert a semicolon. tecting consumers, increasing clean re- On page 53, after line 25, insert the fol- newable energy production, and mod- SA 4412. Mr. SCHUMER submitted an lowing: ernizing our energy infrastructure, and (E) conduct observations of neighborhoods amendment intended to be proposed to where abandoned or foreclosed upon homes amendment SA 4387 submitted by Mr. to amend the Internal Revenue Code of 1986 to provide tax incentives for the or residential properties are located to docu- DODD (for himself and Mr. SHELBY) to production of renewable energy and en- ment instances of vandalism, unauthorized the bill H.R. 3221, moving the United use, theft, or deterioration of the abandoned States toward greater energy independ- ergy conservation; which was ordered or foreclosed upon homes or residential prop- ence and security, developing innova- to lie on the table; as follows: erties in order to use this documentation in tive new technologies, reducing carbon On page 82, between lines 7 and 8, insert code enforcement proceedings; and emissions, creating green jobs, pro- the following: (F) make efforts to bring abandoned or foreclosed upon homes or residential prop- tecting consumers, increasing clean re- SEC. 605. RECYCLING OF TAX-EXEMPT DEBT FOR FINANCING RESIDENTIAL RENTAL erties into compliance with State, county, newable energy production, and mod- PROJECTS. city, or local building and property mainte- ernizing our energy infrastructure, and (a) IN GENERAL.—Section 146(i) of the In- nance code requirements through code en- to amend the Internal Revenue Code of ternal Revenue Code of 1986 (relating to forcement proceedings. 1986 to provide tax incentives for the treatment of refunding issues) is amended by production of renewable energy and en- adding at the end the following new para- SA 4415. Ms. CANTWELL (for herself, ergy conservation; which was ordered graph: Mr. SMITH, and Mr. KERRY) submitted to lie on the table; as follows: ‘‘(6) TREATMENT OF CERTAIN RESIDENTIAL an amendment intended to be proposed RENTAL PROJECT BONDS AS REFUNDING BONDS to amendment SA 4387 submitted by On page 82, between lines 7 and 8, insert IRRESPECTIVE OF OBLIGOR.— Mr. DODD (for himself and Mr. SHELBY) the following: ‘‘(A) IN GENERAL.—Subject to subparagraph SEC. 605. RECYCLING OF TAX-EXEMPT DEBT FOR (B), if within 6 months after receipt of a re- to the bill H.R. 3221, moving the United FINANCING RESIDENTIAL RENTAL payment of a conduit loan used to finance a States toward greater energy independ- PROJECTS. project described in 142(d) such repayment is ence and security, developing innova- (a) IN GENERAL.—Section 146(i) of the In- used to provide a new conduit loan for any tive new technologies, reducing carbon ternal Revenue Code of 1986 (relating to project so described, any bond which is emissions, creating green jobs, pro- treatment of refunding issues) is amended by issued to refinance the issue financing the tecting consumers, increasing clean re- adding at the end the following new para- original conduit loan shall be treated as a renewable energy production, and mod- graph: funding issue to the extent the principal ernizing our energy infrastructure, and ‘‘(6) TREATMENT OF CERTAIN RESIDENTIAL amount of such refunding issue does not ex- RENTAL PROJECT BONDS AS REFUNDING BONDS ceed the principal amount of the bonds re- to amend the Internal Revenue Code of IRRESPECTIVE OF OBLIGOR.— funded. 1986 to provide tax incentives for the ‘‘(A) IN GENERAL.—Subject to subparagraph ‘‘(B) LIMITATIONS.—Subparagraph (A) shall production of renewable energy and en- (B), if within 6 months after receipt of a re- apply to only one refunding of the original ergy conservation; which was ordered payment of a conduit loan used to finance a issue and only if— to lie on the table; as follows: project described in 142(d) such repayment is ‘‘(i) the refunding issue is issued not later At the end, insert the following: used to provide a new conduit loan for any than the earlier of— project so described, any bond which is ‘‘(I) the date which is 4 years after the date TITLE VIII—AFFORDABLE HOUSING issued to refinance the issue financing the on which the original issue was issued, or INVESTMENT original conduit loan shall be treated as a re- ‘‘(II) December 31, 2010, SEC. 801. AMENDMENT OF 1986 CODE. funding issue to the extent the principal ‘‘(ii) the latest maturity date of any bond Except as otherwise expressly provided, amount of such refunding issue does not ex- of the refunding issue is not later than 34 whenever in this title an amendment or re- ceed the principal amount of the bonds re- years after the date on which the refunded peal is expressed in terms of an amendment funded. bond was issued, and to, or repeal of, a section or other provision,

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00155 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.106 S03APPT1 ccoleman on PRODPC75 with SENATE S2522 CONGRESSIONAL RECORD — SENATE April 3, 2008 the reference shall be considered to be made ‘‘(i) such obligation (when issued) identi- Subtitle B—Improve Coordination With to a section or other provision of the Inter- fied the building for which the proceeds of Other Federal Housing Programs nal Revenue Code of 1986. such obligation would be used, and SEC. 821. AFFORDABLE HOUSING CREDITS AL- Subtitle A—Facilitate Development of ‘‘(ii) such obligation is redeemed before LOWED FOR SECTION 8 MODERATE Housing Credit Property such building is placed in service.’’. REHABILITATION DEVELOPMENTS. SEC. 811. RENAMING THE LOW-INCOME HOUSING (2) CONFORMING AMENDMENT.—Section Paragraph (2) of section 42(c) (relating to CREDIT AS THE AFFORDABLE HOUS- 1400N(c)(6) is amended by striking ‘‘Decem- qualified low-income building) is amended by ING CREDIT. ber 31, 2010’’ and inserting ‘‘the date of the striking the last sentence. (a) IN GENERAL.—The heading of section 42 enactment of the Affordable Housing Invest- SEC. 822. MODIFICATION TO LOW-INCOME HOUS- (relating to low-income housing credit) is ment Act of 2008’’. ING CREDIT RULES FOR REDUCTION amended by striking ‘‘LOW-INCOME’’ and SEC. 813. INCREASE IN CREDIT FOR BUILDINGS OF ELIGIBLE BASIS BY GRANTS RE- inserting ‘‘AFFORDABLE’’. IN STATE DESIGNATED AREAS. CEIVED. (b) CONFORMING AMENDMENTS.— (a) IN GENERAL.—Clause (i) of section (a) IN GENERAL.—The Secretary of the (1) Sections 38(b)(5), 42(a), 772(a)(7), and 42(d)(5)(C) (relating to increase in credit for Treasury shall modify Treasury Regulations 772(d)(5) are each amended by striking ‘‘low- buildings in high cost areas) is amended by section 1.42–16(b) to provide that none of the income’’ and inserting ‘‘affordable’’. striking ‘‘or difficult development area’’ and following shall be considered a grant made (2) The headings of subparagraphs (3)(D) inserting ‘‘, difficult development area, or with respect to a building or its operation and (6)(B) of section 469(i) are each amended State designated project’’. for purposes of section 42(d)(5)(A) of the In- by striking ‘‘LOW-INCOME’’ and inserting ‘‘AF- (b) STATE DESIGNATED PROJECT.—Subpara- ternal Revenue Code of 1986: FORDABLE’’. graph (C) of section 42(d)(5) is amended by (1) Rental assistance under section 521 of (3) The table of sections for subpart D of adding at the end the following new clause: the Housing Act of 1949 (42 U.S.C. 1490a). part IV of subchapter A of chapter 1 is ‘‘(v) STATE DESIGNATED PROJECT.—For pur- (2) Assistance under section 538(f)(5) of the amended by striking the item relating to poses of this subparagraph, the term ‘State Housing Act of 1949 (42 U.S.C. 1490p–2(f)(5)). section 42 and inserting the following: designated project’ means any project pub- (3) Interest reduction payments under sec- ‘‘Sec. 42. Affordable housing credit.’’. lished as part of a State’s qualified allocation 236 of the National Housing Act (12 (c) EFFECTIVE DATE.—The amendments tion plan (as defined in subsection (m)(1)(B)) U.S.C. 1715z–1). made by this section shall take effect on the and designated by the housing credit agency (4) Rental assistance under section 202 of date of the enactment of this Act. as meeting such criteria for designation the Housing Act of 1959 (12 U.S.C. 1701q). SEC. 812. MODIFICATION OF RULES FOR DETER- under this clause as the State in which such (5) Rental assistance under section 811 of MINING APPLICABLE PERCENTAGE. project is located may specify. The rules of the Cranston-Gonzalez National Affordable (a) IN GENERAL.—Subsection (b) of section clauses (ii)(II) and (iii)(II) shall not apply for Housing Act (42 U.S.C. 8013). 42 is amended— purposes designations made under this (6) Modernization, operating, and rental as- (1) by striking the semicolon and all that clause.’’. sistance pursuant to section 202 of the Na- follows to the period in the heading, (c) CONFORMING AMENDMENT.—The heading tive American Housing Assistance and Self- (2) by striking paragraph (1) and inserting of subparagraph (C) of section 42(d)(5) is Determination Act of 1996 (25 U.S.C. 4132). the following new paragraph: amended by striking ‘‘BUILDINGS IN HIGH COST (7) Assistance under title IV of the Stewart ‘‘(1) IN GENERAL.—For purposes of this sec- AREAS’’ and inserting ‘‘CERTAIN BUILDINGS’’. B. McKinney Homeless Assistance Act (42 tion, the term ‘applicable percentage’ means SEC. 814. MODIFICATION OF SCATTERED SITE U.S.C. 11361 et seq.). the greater of the alternative applicable per- RULE. (8) Tenant-based rental assistance under centage determined under paragraph (2) or— Paragraph (7) of section 42(g) (relating to section 212 of the Cranston-Gonzalez Na- ‘‘(A) 9 percent in the case of any building scattered site projects) is amended to read as tional Affordable Housing Act (42 U.S.C. to which subparagraph (B) does not apply, follows: 12742). and ‘‘(7) SCATTERED SITE PROJECTS.—Buildings (9) Assistance under the AIDS Housing Op- ‘‘(B) 4 percent in the case of— which would (but for their lack of proximity) portunity Act (42 U.S.C. 12901 et seq.). ‘‘(i) any existing building, and be treated as a project for purposes of this (10) Per diem payments under section 2012 ‘‘(ii) any new building if, at any time dur- section shall be so treated if the rent-re- of title 38, United States Code. ing the taxable year or any prior taxable stricted (within the meaning of paragraph (11) Rent supplements under section 101 of year, there is or was outstanding any obliga- (2)) residential units of such project are dis- the Housing and Urban Development Act of tion— tributed among such buildings in proportion 1965 (12 U.S.C. 1701s). ‘‘(I) not taken into account under section to the number of residential units in each (12) Assistance under section 542 of the 146, building.’’. Housing Act of 1949 (42 U.S.C. 1490r). ‘‘(II) which is exempt from tax under sec- (13) Any other ongoing payment used to tion 103, and SEC. 815. TREATMENT OF RURAL PROJECTS. enable the property to be rented to low-in- ‘‘(III) the proceeds of which are or were Section 42(i) (relating to definitions and come tenants. used (directly or indirectly) with respect to special rules) is amended by adding at the (b) EFFECTIVE DATE.—The modifications such building or the operation thereof.’’, end the following new paragraph: ‘‘(8) TREATMENT OF RURAL PROJECTS.—For required by this section shall take effect on (3) by striking ‘‘BUILDINGS PLACED IN SERV- purposes of this section, in the case of any the date of the enactment of this Act. ICE AFTER 1987’’ in the heading for paragraph project for residential rental property lo- (c) NO INFERENCE.—Nothing contained in (2) and inserting ‘‘ALTERNATIVE APPLICABLE cated in a rural area (as defined in section subsection (a) may be construed to create PERCENTAGE’’, and any inference with respect to the consider- (4) by striking ‘‘In the case of any qualified 520 of the Housing Act of 1949), any income limitation measured by reference to area ation of any program specified under sub- low-income building placed in service by the section (a) as a grant made with respect to a taxpayer after 1987, the term ‘applicable per- median gross income shall be measured by reference to the greater of area median gross building or its operation for purposes of sec- centage’ means’’ in paragraph (2)(A) and in- tion 42(d)(5)(A) of the Internal Revenue Code serting ‘‘For purposes of paragraph (1), the income or national non-metropolitan median income.’’. of 1986 as in effect on the day before such term ‘alternative applicable percentage’ date of enactment. means’’. SEC. 816. EXPANSION OF ALLOWABLE BASIS FOR (b) MODIFICATION OF RULES RELATED TO COMMUNITY SERVICE FACILITIES. Subtitle C—Facilitate Private Investment FEDERAL SUBSIDIES.— Section 42(d)(4)(C) (relating to inclusion of Capital to Increase the Efficiency of Afford- (1) IN GENERAL.—Paragraph (2) of section basis of property used to provide services for able Housing Investment 42(i) (relating to determination of whether certain nontenants) is amended— SEC. 831. REPEAL OF RECAPTURE BOND RULE. building is Federally subsidized) is amended (1) by striking ‘‘10 percent of the eligible (a) IN GENERAL.—Paragraph (6) of section to read as follows: basis’’ in clause (ii)and inserting ‘‘20 percent 42(j) (relating to recapture of credit) is ‘‘(2) EXCEPTIONS FOR CERTAIN NEW BUILD- of the first $5,000,000 in eligible basis plus 10 amended to read as follows: INGS OTHERWISE SUBJECT TO 4 PERCENT CREDIT percent of the remaining eligible basis’’, and ‘‘(6) NO RECAPTURE ON DISPOSITION OF LIMITATION.— (2) by adding at the end the following new BUILDING (OR INTEREST THEREIN) REASONABLY ‘‘(A) ELECTION TO REDUCE ELIGIBLE BASIS BY flush sentences: EXPECTED TO CONTINUE AS A QUALIFIED LOW- PROCEEDS OF OBLIGATIONS.—A tax-exempt ob- ‘‘For each calendar year beginning after 2008, INCOME BUILDING.— ligation shall not be taken into account the dollar amount in clause (ii) shall be in- ‘‘(A) IN GENERAL.—In the case of a disposi- under subsection (b)(1)(B)(ii) if the taxpayer creased by an amount equal to such dollar tion of a building or an interest therein, the elects to exclude the proceeds of such obliga- amount multiplied by the cost-of-living ad- taxpayer shall be discharged from liability tion from the eligible basis of the building justment determined under section 1(f)(3), for any additional tax under this subsection for purposes of subsection (d). determined by substituting ‘calendar year by reason of such disposition if it is reason- ‘‘(B) SPECIAL RULE FOR SUBSIDIZED CON- 2007’ for ‘calendar year 1992’ in subparagraph ably expected that such building will con- STRUCTION FINANCING.—A tax-exempt obliga- (B) thereof. If any amount adjusted under tinue to be operated as a qualified low-in- tion used to provide construction financing the preceding sentence is not a multiple of come building for the remaining compliance for any building shall not be taken into ac- $100,000, such amount shall be rounded to the period with respect to such building. count under subsection (b)(1)(B)(ii) if— next lowest multiple of $100,000.’’. ‘‘(B) STATUTE OF LIMITATIONS.—

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‘‘(i) EXTENSION OF PERIOD.—The period for ‘‘(DD) section 6050W (relating to returns Subtitle E—Simplify Administration of the assessing a deficiency attributable to the ap- relating to payment of low-income housing Housing Credit Program plication of subparagraph (A) with respect to credit repayment amount).’’. SEC. 851. ELIMINATION OF CERTAIN ANNUAL RE- a building (or interest therein) during the (3) CLERICAL AMENDMENT.—The table of CERTIFICATIONS OF TENANT IN- compliance period with respect to such sections for subpart B of part III of sub- COMES. building shall not expire before the expira- chapter A of chapter 61 is amended by insert- Paragraph (8) of section 42(g) (relating to tion of 3 years after the end of such compli- ing after the item relating to section 6050V qualified low-income housing project) is ance period. the following new item: amended— ‘‘(ii) ASSESSMENT.—Such deficiency may be (1) by striking ‘‘may waive’’ in the mater assessed before the expiration of the 3-year ‘‘Sec. 6050W. Returns relating to payment of preceding subparagraph (A); period referred to in clause (i) notwith- low-income housing credit re- (2) by inserting ‘‘may waive’’ before ‘‘any standing the provisions of any other law or payment amount.’’. recapture’’ in subparagraph (A); and rule of law which would otherwise prevent (c) EFFECTIVE DATE.— (3) by inserting ‘‘shall waive’’ before ‘‘any such assessment.’’. (1) IN GENERAL.—The amendments made by annual recertification’’ in subparagraph (B). (b) INFORMATION REPORTING.— this section shall apply with respect to any Subtitle F—Conform Multifamily Housing (1) IN GENERAL.—Subpart B of part III of liability for the credit recapture amount Bond Rules to Housing Credit Rules subchapter A of chapter 61 (relating to infor- under section 42(j) of the Internal Revenue SEC. 861. COORDINATION OF CERTAIN RULES AP- mation concerning transactions with other Code of 1986 that arises after the date of the PLICABLE TO AFFORDABLE HOUS- persons) is amended by inserting after sec- enactment of this Act. ING CREDIT AND QUALIFIED RESI- tion 6050V the following new section: (2) SPECIAL RULE FOR LOW-INCOME HOUSING DENTIAL RENTAL PROJECT EXEMPT FACILITY BONDS. ‘‘SEC. 6050W. RETURNS RELATING TO PAYMENT BUILDINGS SOLD BEFORE DATE OF ENACTMENT (a) DETERMINATION OF NEXT AVAILABLE OF LOW-INCOME HOUSING CREDIT OF THIS ACT.—In the case of a building dis- UNIT.—Paragraph (3) of section 142(d) (relat- REPAYMENT AMOUNT. posed of before the date of the enactment of ing to current income determinations) is ‘‘(a) REQUIREMENT OF REPORTING.—Every this Act with respect to which the taxpayer posted a bond (or alternative form of secu- amended by adding at the end the following person who, at any time during the taxable new subparagraph: year, is an owner of a building (or an interest rity) under section 42(j) of the Internal Rev- ‘‘(C) EXCEPTION FOR PROJECTS WITH RESPECT therein)— enue Code of 1986 (as in effect before such TO WHICH AFFORDABLE HOUSING CREDIT IS AL- ‘‘(1) which is in the compliance period at date of enactment), the taxpayer may elect LOWED.—In the case of a project with respect any time during such year, and (by notifying the Secretary of the Treasury in writing)— to which credit is allowed under section 42, ‘‘(2) with respect to which recapture is re- the second sentence of subparagraph (B) quired by section 42(j), (A) to cease to be subject to the bond requirements under section 42(j)(6) of such shall be applied by substituting ‘building shall, at such time as the Secretary may pre- Code, as in effect before such date of enact- (within the meaning of section 42)’ for scribe, make the return described in sub- ment, and ‘project’.’’. section (b). (B) to be subject to the requirements of (b) STUDENTS.—Paragraph (2) of section 142(d) (relating to definitions and special ‘‘(b) FORM AND MANNER OF RETURNS.—A re- section 42(j) of such Code, as amended by this rules) is amended by adding at the end the turn is described in this subsection if such section. return— following new subparagraph: ‘‘(1) is in such form as the Secretary may SEC. 832. AFFORDABLE HOUSING CREDIT AL- ‘‘(C) STUDENTS.—Students (as defined in prescribe, and LOWED AGAINST ALTERNATIVE MIN- section 152(f)(2)) shall not be treated as satis- ‘‘(2) contains— IMUM TAX. fying the requirements of subparagraph (A) ‘‘(A) the name, address, and TIN of each (a) IN GENERAL.—Subparagraph (B) of sec- or (B) of paragraph (1) except under rules person who, with respect to such building or tion 38(c)(4) (relating to special rules for similar to the rules of 42(i)(3)(D).’’. interest, was formerly an investor in such specified credits) is amended by redesig- (c) SINGLE-ROOM OCCUPANCY UNITS.—Para- owner at any time during the compliance pe- nating clauses (ii), (iii), and (iv) as clauses graph (2) of section 142(d) (relating to defini- riod, (iii), (iv), and (v), respectively, and by insert- tions and special rules), as amended by this ‘‘(B) the amount (if any) of any credit re- ing after clause (i) the following new clause: Act, is further amended by adding at the end capture amount required under section 42(j), ‘‘(ii) the credit determined under section the following new subparagraph: and 42(a),’’. ‘‘(D) SINGLE-ROOM OCCUPANCY UNITS.—A ‘‘(C) such other information as the Sec- unit shall not fail to be treated as a residen- (b) EFFECTIVE DATE.—The amendments retary may prescribe. tial unit merely because such unit is a sin- made by this subsection shall apply to tax- gle-room occupancy unit (within the mean- ‘‘(c) STATEMENTS TO BE FURNISHED TO PER- able years beginning after the date of the ening of section 42).’’. SONS WITH RESPECT TO WHOM INFORMATION IS actment of this Act. (d) EFFECTIVE DATE.—The amendments REQUIRED.—Every person required to make a made by this section shall apply to deter- return under subsection (a) shall furnish to Subtitle D—Help Preserve Existing minations of the status of qualified residen- Affordable Housing each person whose name is required to be set tial rental projects for periods beginning forth in such return a written statement after the date of the enactment of this Act, showing— SEC. 841. REPEAL OF 10-YEAR RULE FOR ACQUI- SITION HOUSING CREDITS. with respect to bonds issued before, on, or ‘‘(1) the name and address of the person re- after such date. quired to make such return and the phone (a) IN GENERAL.—Subparagraph (B) of sec- number of the information contact for such tion 42(d)(2) (relating to existing buildings) Subtitle G—Improve the Mortgage Revenue person, and is amended by striking clause (ii) and by re- Bond Program ‘‘(2) the information required to be shown designating clauses (iii) and (iv) as clauses SEC. 871. SPECIAL RULE FOR USE OF MORTGAGE on the return with respect to such person. (ii) and (iii), respectively. BONDS FOR DISASTER VICTIMS, SIN- GLE PARENTS, AND HOMEMAKERS. The written statement required under the (b) CONFORMING AMENDMENT.—Section 42(d) (a) IN GENERAL.—Paragraph (2) of section preceding sentence shall be furnished on or is amended by striking paragraph (6) and by 143(d) (relating to exceptions to 3-year re- before March 31 of the year following the cal- redesignating paragraph (7) as paragraph (6). quirement) is amended by striking ‘‘and’’ at endar year for which the return under sub- the end of subparagraph (C) and by inserting SEC. 842. MODIFICATION OF RELATED PERSON section (a) is required to be made. RULE FOR AFFORDABLE HOUSING after subparagraph (D) the following new ‘‘(d) COMPLIANCE PERIOD.—For purposes of CREDIT. subparagraphs: this section, the term ‘compliance period’ ‘‘(E) financing of residences for individuals has the meaning given such term by section (a) IN GENERAL.—Clause (iii) of section with an ownership interest in a principal res- 42(i).’’. 42(d)(2)(D) (related to related person, etc.) is idence which— amended to read as follows: (2) ASSESSABLE PENALTIES.— ‘‘(i) is located in an area with respect to (A) Subparagraph (B) of section 6724(d)(1) ‘‘(iii) RELATED PERSON.—For purposes of which a major disaster has been declared by (relating to definitions) is amended by in- subparagraph (B)(iii), a person (hereinafter the President under section 401 of the Robert serting after clause (xxi) the following new in this subclause referred to as the ‘related T. Stafford Disaster Relief and Emergency clause: person’) is related to any person if the re- Assistance Act, and ‘‘(xxii) section 6050W (relating to returns lated person bears a relationship to such per- ‘‘(ii) has been rendered uninhabitable by relating to payment of low-income housing son specified in section 267(b) or 707(b)(1), or reason of the major disaster, credit repayment amount),’’. the related person and such person are en- ‘‘(F) financing of residences for individuals (B) Paragraph (2) of section 6724(d) is gaged in trades or businesses under common who— amended by striking ‘‘or’’ at the end of sub- control (within the meaning of subsections ‘‘(i) are not married, and paragraph (BB), by striking the period at the (a) and (b) of section 52.’’. ‘‘(ii) have one or more qualifying children end of subparagraph (CC) and inserting ‘‘, (b) EFFECTIVE DATE.—The amendment (within the meaning of section 152), and or’’, and by adding after subparagraph (CC) made by this subsection shall take effect on ‘‘(G) financing of residences for displaced the following new subparagraph: the date of the enactment of this Act. homemakers,’’.

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(b) DISPLACED HOMEMAKERS.—Section (2) by inserting after clause (i) the fol- eral of a State, or other authorized State of- 143(d) is amended by adding at the end the lowing new clause: ficer, from proceeding in State or Federal following new paragraph: ‘‘(ii) the credit determined under section court on the basis of an alleged violation of ‘‘(4) DISPLACED HOMEMAKER.—For purposes 42(a),’’. any civil or criminal statute of that State. of paragraph (2)(G), the term ‘displaced (b) EFFECTIVE DATE.—The amendments (e) VENUE; SERVICE OF PROCESS; JOINDER.— homemaker’ means any individual who is— made by this section shall apply to taxable In a civil action brought under subsection ‘‘(A) over 18 years of age, years beginning after the date of the enact- (a)— ‘‘(B) is not employed or underemployed and ment of this Act. (1) the venue shall be a judicial district in is experiencing difficulty in obtaining or up- which the lender or a related party operates grading employment, and SA 4417. Mr. DORGAN submitted an or is authorized to do business; ‘‘(C) has not worked full-time full-year in amendment intended to be proposed by (2) process may be served without regard to the labor force for a number of years before him to the bill H.R. 3221, moving the the territorial limits of the district or of the the date on which financing for a residence is State in which the civil action is instituted; supplied, but has, during such years, worked United States toward greater energy independence and security, developing and primarily without remuneration to care for (3) a person who participated with a lender the home and family.’’. innovative new technologies, reducing or related party an alleged violation that is (c) EFFECTIVE DATE.—The amendments carbon emissions, creating green jobs, being litigated in the civil action may be made by this section shall apply to bonds protecting consumers, increasing clean joined in the civil action without regard to issued after the date of the enactment of this renewable energy production, and mod- the residence of the person. Act. ernizing our energy infrastructure, and (f) PREEMPTIVE ACTION BY FTC.—If the SEC. 872. REPEAL OF REQUIRED USE OF CERTAIN to amend the Internal Revenue Code of Commission has instituted a civil action or PRINCIPAL REPAYMENTS ON QUALI- an administrative action for violation of this FIED MORTGAGE ISSUES TO RE- 1986 to provide tax incentives for the Act or any other Act enforced by the Com- DEEM BONDS. production of renewable energy and en- mission, no State attorney general, or other (a) IN GENERAL.—Subparagraph (A) of sec- ergy conservation; which was ordered official or agency of a State, may bring an tion 143(a)(2) (relating to qualified mortgage to lie on the table; as follows: issue defined) is amended by inserting ‘‘and’’ action under this section during the pend- At the appropriate place, insert the fol- at the end of clause (ii), by striking ‘‘, and’’ ency of that action against any defendant lowing: at the end of clause (iii) and inserting a pe- named in the complaint of the Commission ø riod, and by striking clause (iv) and the last SEC. ———. RULEMAKING PROCEDURE FOR for any violation of this Act alleged in the SUBPRIME LENDING MORTGAGES sentence. complaint. AND NONTRADITIONAL MORTGAGE (g) AWARD OF COSTS AND FEES.—If the at- (b) CONFORMING AMENDMENT.—Clause (ii) of LOANS. section 143(a)(2)(D) is amended by striking torney general of a State prevails in any Notwithstanding section 18 of the Federal civil action under subsection (a), the State ‘‘(and clause (iv) of subparagraph (A))’’. Trade Commission Act (15 U.S.C. 57a) or any (c) EFFECTIVE DATE.—The amendments can recover reasonable costs and attorney other provision of law, the Federal Trade fees from the lender or related party. made by this section shall apply to repay- Commission shall conduct rulemaking pro- ments received after the date of the enact- ceedings with respect to subprime mortgage ment of this Act. lending and nontraditional mortgage loans SA 4418. Mr. MARTINEZ (for himself Subtitle H—Effective Date in accordance with section 553 of title 5, and Mr. CARPER) submitted an amend- SEC. 881. EFFECTIVE DATE. United States Code. ment intended to be proposed by him Except as otherwise provided in this title, SEC. ———. ENFORCEMENT BY STATE ATTOR- to the bill H.R. 3221 moving the United the amendments made by this title shall NEYS GENERAL. States toward greater energy independ- apply to— (a) IN GENERAL.—Except as provided in ence and security, developing innova- (1) housing credit dollar amounts allocated subsection (f), a State, as parens patriae, tive new technologies, reducing carbon after the date of the enactment of this Act, may bring a civil action on behalf of its resi- emissions, creating green jobs, pro- and dents in an appropriate State or district (2) buildings placed in service after such court of the United States to enforce the tecting consumers, increasing clean re- date to the extent paragraph (1) of section provisions of the Federal Trade Commission newable energy production, and mod- 42(h) of the Internal Revenue Code of 1986 Act or any other Act enforced by the Federal ernizing our energy infrastructure, and does not apply to such building by reason of Trade Commission to obtain penalties and to amend the Internal Revenue Code of paragraph (4) thereof, but only with respect relief provided under such Acts whenever the 1986 to provide tax incentives for the to bonds issued after such date. attorney general of the State has reason to production of renewable energy and en- believe that the interests of the residents of ergy conservation; which was ordered SA 4416. Ms. CANTWELL (for herself, the State have been or are being threatened to lie on the table; as follows: Mr. SMITH, and Mr. KERRY) submitted or adversely affected by a violation of a an amendment intended to be proposed subprime mortgage lending rule or a non- At the end, add the following: to amendment SA 4387 submitted by traditional mortgage loan rule promulgated TITLE VIII—REGULATION OF HOUSING Mr. DODD (for himself and Mr. SHELBY) by the Federal Trade Commission. ENTERPRISES to the bill H.R. 3221, moving the United (b) NOTICE.—The State shall serve written notice to the Commission of any civil action SEC. 800. SHORT TITLE. States toward greater energy independ- under subsection (a) at least 60 days prior to This title may be cited as the ‘‘Federal ence and security, developing innova- initiating such civil action. The notice shall Housing Enterprise Regulatory Reform Act tive new technologies, reducing carbon include a copy of the complaint to be filed to of 2008’’. emissions, creating green jobs, pro- initiate such civil action, except that if it is Subtitle A—OFHEO tecting consumers, increasing clean re- not feasible for the State to provide such prior notice, the State shall provide notice SEC. 801. DUTIES AND AUTHORITIES OF THE DI- newable energy production, and mod- RECTOR OF OFHEO. ernizing our energy infrastructure, and immediately upon instituting such civil action. The Housing and Community Development to amend the Internal Revenue Code of Act of 1992 (12 U.S.C. 4513) is amended by 1986 to provide tax incentives for the (c) INTERVENTION BY FTC.—Upon receiving the notice required by subsection (b), the striking section 1313 and inserting the fol- production of renewable energy and en- Commission may intervene in such civil ac- lowing: ergy conservation; which was ordered tion and upon intervening— ‘‘SEC. 1313. DUTIES AND AUTHORITIES OF DIREC- to lie on the table; as follows: (1) be heard on all matters arising in such TOR. On page 82, between lines 7 and 8, insert civil action; and ‘‘(a) DUTIES.— the following: (2) file petitions for appeal of a decision in ‘‘(1) PRINCIPAL DUTIES.—The principal du- SEC. 605. AFFORDABLE HOUSING CREDIT AL- such civil action. ties of the Director shall be— LOWED AGAINST ALTERNATIVE MIN- (d) SAVINGS CLAUSE.—Nothing in this sec- ‘‘(A) to oversee the operations of each en- IMUM TAX. tion shall prevent the attorney general of a terprise; and (a) IN GENERAL.—Subparagraph (B) of sec- State from exercising the powers conferred ‘‘(B) to ensure that— tion 38(c)(4) of the Internal Revenue Code of on the attorney general by the laws of such ‘‘(i) each enterprise operates in a safe and 1986 (relating to specified credits) is amend- State to conduct investigations or to admin- sound manner, including maintenance of ed— ister oaths or affirmations or to compel the adequate capital and internal controls; (1) by redesignating clauses (ii), (iii), and attendance of witnesses or the production of ‘‘(ii) the operations and activities of each (iv) as clauses (iii), (iv), and (v), respectively, documentary and other evidence. Nothing in enterprise foster liquid, efficient, competi- and this section shall prohibit the attorney gen- tive, and resilient national housing finance

VerDate Aug 31 2005 07:50 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00158 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.109 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2525 markets that minimize the cost of housing ‘‘(9) maintenance of adequate records, in clauses (i) through (iii) of paragraph (2)(B) finance (including activities relating to accordance with consistent accounting poli- if— mortgages on housing for low- and moderate- cies and practices that enable the Director ‘‘(A) the Director determines that the en- income families involving a reasonable eco- to evaluate the financial condition of the enterprise fails to meet any standard pre- nomic return that may be less than the re- terprise; scribed under subsection (a); turn earned on other activities); ‘‘(10) issuance of subordinated debt by that ‘‘(B) the enterprise has not corrected the ‘‘(iii) each enterprise complies with this particular enterprise, as the Director con- deficiency; and title and the rules, regulations, guidelines, siders necessary; ‘‘(C) during the 18-month period before the and orders issued under this title and the au- ‘‘(11) overall risk management processes, date on which the enterprise first failed to thorizing statutes; and including adequacy of oversight by senior meet the standard, the enterprise underwent ‘‘(iv) each enterprise carries out its statu- management and the board of directors and extraordinary growth, as defined by the Di- tory mission only through activities that are of processes and policies to identify, meas- rector. consistent with this title and the author- ure, monitor, and control material risks, in- ‘‘(c) OTHER ENFORCEMENT AUTHORITY NOT izing statutes. cluding reputational risks, and for adequate, AFFECTED.—The authority of the Director ‘‘(2) SCOPE OF AUTHORITY.—The authority well-tested business resumption plans for all under this section is in addition to any other of the Director shall include the authority— major systems with remote site facilities to authority of the Director.’’. ‘‘(A) to review and, if warranted based on protect against disruptive events; and SEC. 802. AUTHORITY TO REQUIRE REPORTS BY the principal duties described in paragraph ‘‘(12) such other operational and manage- ENTERPRISES. (1), reject any acquisition or transfer of a ment standards as the Director determines Section 1314 of the Housing and Commu- controlling interest in an enterprise; and to be appropriate. nity Development Act of 1992 (12 U.S.C. 4514) ‘‘(B) to exercise such incidental powers as ‘‘(b) FAILURE TO MEET STANDARDS.— is amended— may be necessary or appropriate to fulfill ‘‘(1) PLAN REQUIREMENT.— (1) in subsection (a)— the duties and responsibilities of the Direc- ‘‘(A) IN GENERAL.—If the Director deter- (A) in the subsection heading, by striking tor in the supervision and regulation of each mines that an enterprise fails to meet any ‘‘SPECIAL REPORTS AND REPORTS OF FINAN- enterprise. CIAL CONDITION’’ and inserting ‘‘REGULAR AND ‘‘(b) DELEGATION OF AUTHORITY.—The Di- standard established under subsection (a)— rector may delegate to officers or employees ‘‘(i) if such standard is established by regu- SPECIAL REPORTS’’; of the Office, including each of the Deputy lation, the Director shall require the enter- (B) in paragraph (1)— Directors, any of the functions, powers, or prise to submit an acceptable plan to the Di- (i) in the paragraph heading, by striking duties of the Director, as the Director con- rector within the time allowed under sub- ‘‘FINANCIAL CONDITION’’ and inserting ‘‘REG- siders appropriate. paragraph (C); and ULAR REPORTS’’; and ‘‘(c) LITIGATION AUTHORITY.— ‘‘(ii) if such standard is established by (ii) by striking ‘‘reports of financial condi- ‘‘(1) IN GENERAL.—In enforcing any provi- guideline, the Director may require the en- tion and operations’’ and inserting ‘‘regular sion of this title, any regulation or order terprise to submit a plan described in clause reports on the condition (including financial prescribed under this title, or any other pro- (i). condition), management, activities, or oper- vision of law, rule, regulation, or order, or in ‘‘(B) CONTENTS.—Any plan required under ations of the enterprise, as the Director con- any other action, suit, or proceeding to subparagraph (A) shall specify the actions siders appropriate’’; and which the Director is a party or in which the that the enterprise will take to correct the (C) in paragraph (2), after ‘‘submit special Director is interested, and in the administra- deficiency. If the enterprise is undercapital- reports’’ insert ‘‘on any of the topics speci- tion of conservatorships and receiverships, ized, the plan may be a part of the capital fied in paragraph (1) or such other topics’’; the Director may act in the Director’s own restoration plan for the enterprise under sec- and name and through the Director’s own attor- tion 1369C. (2) by adding at the end the following: neys. ‘‘(C) DEADLINES FOR SUBMISSION AND RE- ‘‘(c) REPORTS OF FRAUDULENT FINANCIAL ‘‘(2) SUBJECT TO SUIT.—Except as otherwise VIEW.—The Director shall by regulation es- TRANSACTIONS.— provided by law, the Director shall be sub- tablish deadlines that— ‘‘(1) REQUIREMENT TO REPORT.—The Direc- ject to suit (other than suits on claims for ‘‘(i) provide the enterprises with reason- tor shall require an enterprise to submit to money damages) by an enterprise or director able time to submit plans required under the Director a timely report upon discovery or officer thereof with respect to any matter subparagraph (A), and generally require an by the enterprise that it has purchased or under this title or any other applicable pro- enterprise to submit a plan not later than 30 sold a fraudulent loan or financial instru- vision of law, rule, order, or regulation under days after the Director determines that the ment or suspects a possible fraud relating to this title, in the United States district court enterprise fails to meet any standard estab- a purchase or sale of any loan or financial infor the judicial district in which the enter- lished under subsection (a); and strument. The Director shall require the en- prise has its principal place of business, or in ‘‘(ii) require the Director to act on plans terprises to establish and maintain proce- the United States District Court for the Dis- expeditiously, and generally not later than dures designed to discover any such trans- trict of Columbia, and the Director may be 30 days after the plan is submitted. actions. served with process in the manner prescribed ‘‘(2) REQUIRED ORDER UPON FAILURE TO SUB- ‘‘(2) PROTECTION FROM LIABILITY FOR RE- by the Federal Rules of Civil Procedure. MIT OR IMPLEMENT PLAN.—If an enterprise PORTS.— ‘‘SEC. 1313A. PRUDENTIAL MANAGEMENT AND OP- fails to submit an acceptable plan within the ‘‘(A) IN GENERAL.—If an enterprise makes a ERATIONS STANDARDS. time allowed under paragraph (1)(C), or fails report pursuant to paragraph (1), or an enter- ‘‘(a) STANDARDS.—The Director shall estab- in any material respect to implement a plan prise-affiliated party makes, or requires an- lish standards, by regulation, guideline, or accepted by the Director, the following shall other to make, such a report, and such re- order, for each enterprise relating to— apply: port is made in a good faith effort to comply ‘‘(1) adequacy of internal controls and in- ‘‘(A) REQUIRED CORRECTION OF DEFI- with the requirements of paragraph (1), such formation systems taking into account the CIENCY.—The Director shall, by order, re- enterprise or enterprise-afffiliated party nature and scale of business operations; quire the enterprise to correct the defi- shall not be liable to any person under any ‘‘(2) independence and adequacy of internal ciency. law or regulation of the United States, any audit systems; ‘‘(B) OTHER AUTHORITY.—The Director may, constitution, law, or regulation of any State ‘‘(3) management of credit and by order, take one or more of the following or political subdivision of any State, or counterparty risk, including systems to actions until the deficiency is corrected: under any contract or other legally enforce- identify concentrations of credit risk and ‘‘(i) Prohibit the enterprise from permit- able agreement (including any arbitration prudential limits to restrict exposure of the ting its average total assets (as that term is agreement), for such report or for any failure enterprise to a single counterparty or groups defined in section 1316(b)) during any cal- to provide notice of such report to the person of related counterparties; endar quarter to exceed its average total as- who is the subject of such report or any ‘‘(4) management of interest rate risk ex- sets during the preceding calendar quarter, other person identified in the report. posure; or restrict the rate at which the average ‘‘(B) RULE OF CONSTRUCTION.—Subpara- ‘‘(5) management of market risk, including total assets of the enterprise may increase graph (A) shall not be construed as cre- standards that provide for systems that ac- from one calendar quarter to another. ating— curately measure, monitor, and control mar- ‘‘(ii) Require the enterprise, in the case of ‘‘(i) any inference that the term ‘person’, ket risks and, as warranted, that establish an enterprise, to increase its ratio of core as used in such subparagraph, may be con- limitations on market risk; capital to assets. strued more broadly than its ordinary usage ‘‘(6) adequacy and maintenance of liquidity ‘‘(iii) Require the enterprise to take any so as to include any government or agency of and reserves; other action that the Director determines government; or ‘‘(7) management of any asset and invest- will better carry out the purposes of this sec- ‘‘(ii) any immunity against, or otherwise ment portfolio; tion than any of the actions described in this affecting, any civil or criminal action ‘‘(8) investments and acquisitions by an en- subparagraph. brought by any government or agency of terprise, to ensure that they are consistent ‘‘(3) MANDATORY RESTRICTIONS.—In com- government to enforce any constitution, law, with the purposes of this Act and the author- plying with paragraph (2), the Director shall or regulation of such government or agen- izing statutes; take one or more of the actions described in cy.’’.

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SEC. 803. DISCLOSURE OF CHARITABLE CON- ‘‘(3) DEFINITION OF TOTAL ASSETS.—For pur- sion of law, any amounts remaining in the TRIBUTIONS BY ENTERPRISES. poses of this section, the term ‘total assets’ Federal Housing Enterprises Oversight Fund Section 1314 of the Housing and Commu- means as follows: established under this section (as in effect on nity Development Act of 1992 (12 U.S.C. 4514), ‘‘(A) ENTERPRISES.—With respect to an en- the day before the effective date of the Fed- as amended by the preceding provisions of terprise, the sum of—’’; and eral Housing Enterprise Regulatory Reform this Act, is further amended by adding at the (3) by striking subsection (c) and inserting Act of 2008), shall, upon such effective date, end the following: the following: be treated for purposes of this subsection as ‘‘(d) DISCLOSURE OF CHARITABLE CONTRIBU- ‘‘(c) INCREASED COSTS OF REGULATION.— amounts received from assessments under TIONS BY ENTERPRISES.— ‘‘(1) INCREASE FOR INADEQUATE CAPITALIZA- this section. ‘‘(1) REQUIRED DISCLOSURE.—The Director TION.—The semiannual payments made pur- ‘‘(g) BUDGET AND FINANCIAL MANAGE- shall, by regulation, require each enterprise suant to subsection (b) by any enterprise MENT.— to submit a report annually, in a format des- that is not classified (for purposes of subtitle ‘‘(1) FINANCIAL OPERATING PLANS AND FORE- ignated by the Director, containing the fol- B) as adequately capitalized may be in- CASTS.—The Director shall provide to the Di- lowing information: creased, as necessary, in the discretion of the rector of the Office of Management and ‘‘(A) TOTAL VALUE.—The total value of con- Director to pay additional estimated costs of Budget copies of the Director’s financial op- tributions made by the enterprise to non- regulation of the enterprise. erating plans and forecasts as prepared by profit organizations during its previous fis- ‘‘(2) ADJUSTMENT FOR ENFORCEMENT ACTIVI- the Director in the ordinary course of the Of- cal year. TIES.—The Director may adjust the amounts fice’s operations, and copies of the quarterly of any semiannual assessments for an assess- ‘‘(B) SUBSTANTIAL CONTRIBUTIONS.—If the reports of the Office’s financial condition ment under subsection (a) that are to be paid value of contributions made by the enter- and results of operations as prepared by the pursuant to subsection (b) by an enterprise, prise to any nonprofit organization during Director in the ordinary course of the Of- as necessary in the discretion of the Direc- its previous fiscal year exceeds the des- fice’s operations. tor, to ensure that the costs of enforcement ignated amount, the name of that organiza- ‘‘(2) FINANCIAL STATEMENTS.—The Office activities under subtitle B and C for an en- tion and the value of contributions. shall prepare annually a statement of assets terprise are borne only by such enterprise. ‘‘(C) SUBSTANTIAL CONTRIBUTIONS TO IN- and liabilities and surplus or deficit; a state- ‘‘(3) ADDITIONAL ASSESSMENT FOR DEFI- SIDER-AFFILIATED CHARITIES.—Identification ment of income and expenses; and a state- CIENCIES.—If at any time, as a result of in- of each contribution whose value exceeds the ment of sources and application of funds. creased costs of regulation of an enterprise designated amount that were made by the ‘‘(3) FINANCIAL MANAGEMENT SYSTEMS.—The that is not classified (for purposes of subtitle enterprise during the enterprise’s previous Office shall implement and maintain finan- B) as adequately captitalized or as the result fiscal year to any nonprofit organization of cial management systems that comply sub- of supervisory or enforcement activities which a director, officer, or controlling per- stantially with Federal financial manage- under subtitle B or C for an enterprise, the son of the enterprise, or a spouse thereof, ment systems requirements, applicable Fed- amount available from any semiannual pay- was a director or trustee, the name of such eral accounting standards, and that uses a ment made by such enterprise pursuant to nonprofit organization, and the value of the general ledger system that accounts for ac- subsection (b) is insufficient to cover the contribution. tivity at the transaction level. costs of the Office with respect to such en- ‘‘(2) DEFINITIONS.—For purposes of this sub- ‘‘(4) ASSERTION OF INTERNAL CONTROLS.— terprise, the Director may make and collect section— The Director shall provide to the Comp- from such enterprise an immediate assess- ‘‘(A) the term ‘designated amount’ means troller General an assertion as to the effec- ment to cover the amount of such deficiency such amount as may be designated by the Di- tiveness of the internal controls that apply for the semiannual period. If, at the end of rector by regulation, consistent with the to financial reporting by the Office, using any semiannual period during which such an public interest and the protection of inves- the standards established in section 3512 (c) assessment is made, any amount remains tors for purposes of this subsection; and of title 31, United States Code. from such assessment, such remaining ‘‘(B) the Director may, by such regulations ‘‘(5) RULE OF CONSTRUCTION.—This sub- amount shall be deducted from the assess- as the Director deems necessary or appro- section may not be construed as implying ment for such enterprise for the following priate in the public interest, define the any obligation on the part of the Director to semiannual period.’’; terms officer and controlling person. consult with or obtain the consent or ap- (4) in subsection (d), by striking ‘‘If’’ and ‘‘(3) PUBLIC AVAILABILITY.—The Director proval of the Director of the Office of Man- inserting ‘‘Except with respect to amounts shall make the information submitted pursu- agement and Budget with respect to any re- collected pursuant to subsection (a)(3), if’’; ant to this subsection publicly available.’’. ports, plans, forecasts, or other information and SEC. 804. ASSESSMENTS. referred to in paragraph (1) or any jurisdic- (5) by striking subsections (e) through (g) tion or oversight over the affairs or oper- Section 1316 of the Housing and Commu- and inserting the following: ations of the Office. nity Development Act of 1992 (12 U.S.C. 4516) ‘‘(e) WORKING CAPITAL FUND.—At the end of is amended— each year for which an assessment under this ‘‘(h) AUDIT OF OFFICE.— (1) by striking subsection (a) and inserting section is made, the Director shall remit to ‘‘(1) IN GENERAL.—The Comptroller General the following: each enterprise any amount of assessment shall annually audit the financial trans- ‘‘(a) ANNUAL ASSESSMENTS.—The Director collected from such enterprise that is attrib- actions of the Office in accordance with the shall establish and collect from the enter- utable to subsection (a)(3) and is in excess of U.S. generally accepted government auditing prises annual assessments in an amount not the amount the Director deems necessary to standards as may be prescribed by the Comp- exceeding the amount sufficient to provide maintain a working capital fund. troller General of the United States. The for reasonable costs and expenses of the Of- ‘‘(f) TREATMENT OF ASSESSMENTS.— audit shall be conducted at the place or fice, including— ‘‘(1) DEPOSIT.—Amounts received by the places where accounts of the Office are nor- ‘‘(1) the expenses of any examinations Director from assessments under this section mally kept. The representatives of the Gov- under section 1317; may be deposited by the Director in the ernment Accountability Office shall have ac- ‘‘(2) the expenses of obtaining any reviews manner provided in section 5234 of the Re- cess to the personnel and to all books, ac- and credit assessments under section 1319; vised Statutes of the United States (12 U.S.C. counts, documents, papers, records (includ- and 192) for monies deposited by the Comptroller ing electronic records), reports, files, and all ‘‘(3) such amounts in excess of actual ex- of the Currency. other papers, automated data, things, or penses for any given year as deemed nec- ‘‘(2) NOT GOVERNMENT FUNDS.—The property belonging to or under the control of essary by the Director to maintain a work- amounts received by the Director from any or used or employed by the Office pertaining ing capital fund in accordance with sub- assessment under this section shall not be to its financial transactions and necessary to section (e).’’; construed to be Government or public funds facilitate the audit, and such representatives (2) in subsection (b)— or appropriated money. shall be afforded full facilities for verifying (A) by realigning paragraph (2) two ems ‘‘(3) NO APPORTIONMENT OF FUNDS.—Not- transactions with the balances or securities from the left margin, so as to align the left withstanding any other provision of law, the held by depositaries, fiscal agents, and margin of such paragraph with the left mar- amounts received by the Director from any custodians. All such books, accounts, docu- gins of paragraph (1); and assessment under this section shall not be ments, records, reports, files, papers, and (B) in paragraph (3)— subject to apportionment for the purpose of property of the Office shall remain in posses- (i) in subparagraph (B), by striking ‘‘subchapter 15 of title 31, United States Code, or sion and custody of the Office. The Comp- paragraph (A)’’ and inserting ‘‘clause (i)’’; under any other authority. troller General may obtain and duplicate (ii) by redesignating subparagraphs (A), ‘‘(4) USE OF FUNDS.—The Director may use any such books, accounts, documents, (B), and (C) as clauses (i), (ii) and (ii), respec- any amounts received by the Director from records, working papers, automated data and tively, and realigning such clauses, as so re- assessments under this section for compensa- files, or other information relevant to such designated, so as to be indented 6 ems from tion of the Director and other employees of audit without cost to the Comptroller Gen- the left margin; the Office and for all other expenses of the eral and the Comptroller General’s right of (iii) by striking the matter that precedes Director and the Office. access to such information shall be enforce- clause (i), as so redesignated, and inserting ‘‘(5) AVAILABILITY OF OVERSIGHT FUND able pursuant to section 716(c) of title 31, the following: AMOUNTS.—Notwithstanding any other provi- United States Code.

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‘‘(2) REPORT.—The Comptroller General ‘‘(B) notwithstanding any statutes, rules, essary to carry out the duties of the Director shall submit to the Congress a report of each and regulations governing appointments in under this title and each of the authorizing annual audit conducted under this sub- the competitive service.’’. statutes to ensure that the purposes of this section. The report to the Congress shall set SEC. 806. PROHIBITION AND WITHHOLDING OF title and such Acts are accomplished.’’; forth the scope of the audit and shall include EXECUTIVE COMPENSATION. (2) in subsection (b), by inserting ‘‘, this the statement of assets and liabilities and (a) IN GENERAL.—Section 1318 of the Hous- title, or any of the authorizing statutes’’ surplus or deficit, the statement of income ing and Community Development Act of 1992 after ‘‘under this section’’; and and expenses, the statement of sources and (12 U.S.C. 4518) is amended— (3) by striking subsection (c). application of funds, and such comments and (1) in the section heading, by striking ‘‘OF SEC. 809. RISK-BASED CAPITAL REQUIREMENTS. information as may be deemed necessary to EXCESSIVE’’ and inserting ‘‘AND WITH- Section 1361 of the Housing and Commu- inform Congress of the financial operations HOLDING OF EXECUTIVE’’; nity Development Act of 1992 (12 U.S.C. 4611) and condition of the Office, together with (2) by redesignating subsection (b) as sub- is amended to read as follows: such recommendations with respect thereto section (d); and ‘‘SEC. 1361. RISK-BASED CAPITAL LEVELS FOR as the Comptroller General may deem advis- (3) by inserting after subsection (a) the fol- ENTERPRISES. able. A copy of each report shall be furnished lowing: ‘‘(a) IN GENERAL.—The Director shall, by to the President and to the Office at the ‘‘(b) FACTORS.—In making any determina- regulation, establish risk-based capital re- time submitted to the Congress. tion under subsection (a), the Director may quirements for the enterprises to ensure that ‘‘(3) ASSISTANCE AND COSTS.—For the pur- take into consideration any factors the Di- the enterprises operate in a safe and sound pose of conducting an audit under this sub- rector considers relevant, including any manner, maintaining sufficient capital and section, the Comptroller General may, in the wrongdoing on the part of the executive offi- reserves to support the risks that arise in discretion of the Comptroller General, em- cer, and such wrongdoing shall include any the operations and management of the enter- ploy by contract, without regard to section 5 fraudulent act or omission, breach of trust prises. of title 41, United States Code, professional or fiduciary duty, violation of law, rule, reg- ‘‘(b) CONFIDENTIALITY OF INFORMATION.— services of firms and organizations of cer- ulation, order, or written agreement, and in- Any person that receives any book, record, tified public accountants for temporary peri- sider abuse with respect to the enterprise. or information from the Director or an en- ods or for special purposes. Upon the request The approval of an agreement or contract terprise to enable the risk-based capital re- of the Comptroller General, the Director of pursuant to section 309(d)(3)(B) of the Fed- quirements established under this section to the Office shall transfer to the Government eral National Mortgage Association Charter be applied shall— Accountability Office from funds available, Act (12 U.S.C. 1723a(d)(3)(B)) or section ‘‘(1) maintain the confidentiality of the the amount requested by the Comptroller 303(h)(2) of the Federal Home Loan Mortgage book, record, or information in a manner General to cover the full costs of any audit Corporation Act (12 U.S.C. 1452(h)(2)) shall that is generally consistent with the level of and report conducted by the Comptroller not preclude the Director from making any confidentiality established for the material General. The Comptroller General shall cred- subsequent determination under subsection by the Director or the enterprise; and it funds transferred to the account estab- (a). ‘‘(2) be exempt from section 552 of title 5, lished for salaries and expenses of the Gov- ‘‘(c) WITHHOLDING OF COMPENSATION.—In United States Code, with respect to the ernment Accountability Office, and such carrying out subsection (a), the Director book, record, or information. ‘‘(c) NO LIMITATION.—Nothing in this sec- amount shall be available upon receipt and may require an enterprise to withhold any tion shall limit the authority of the Director without fiscal year limitation to cover the payment, transfer, or disbursement of com- to require other reports or undertakings, or full costs of the audit and report.’’. pensation to an executive officer, or to place such compensation in an escrow account, take other action, in furtherance of the re- SEC. 805. EXAMINERS AND ACCOUNTANTS. sponsibilities of the Director under this during the review of the reasonableness and (a) EXAMINATIONS.—Section 1317 of the Act.’’. Housing and Community Development Act of comparability of compensation.’’. (b) CONFORMING AMENDMENTS.— SEC. 810. REVIEW OF AND AUTHORITY OVER EN- 1992 (12 U.S.C. 4517) is amended—— TERPRISE ASSETS AND LIABILITIES. (1) FANNIE MAE.—Section 309(d) of the Fed- (1) in subsection (a), by adding after the pe- Subtitle B of title XIII of the Housing and eral National Mortgage Association Charter riod at the end the following: ‘‘Each exam- Community Development Act of 1992 (12 Act (12 U.S.C. 1723a(d)) is amended by adding ination under this subsection of an enter- U.S.C. 4611 et seq.) is amended— at the end the following: prise shall include a review of the procedures (1) by striking the subtitle designation and ‘‘(4) Notwithstanding any other provision required to be established and maintained by heading and inserting the following: of this section, the corporation shall not the enterprise pursuant to section 1314(c) (re- ‘‘Subtitle B—Required Capital Levels for En- lating to fraudulent financial transactions) transfer, disburse, or pay compensation to any executive officer, or enter into an agree- terprises, Special Enforcement Powers, and and the report regarding each such examina- Reviews of Assets and Liabilities’’; and tion shall describe any problems with such ment with such executive officer, without (2) by adding at the end the following: procedures maintained by the enterprise.’’; the approval of the Director, for matters (2) in subsection (b)— being reviewed under section 1318 of the Fed- ‘‘SEC. 1369E. REVIEWS OF ENTERPRISE ASSETS AND LIABILITIES. (A) by inserting ‘‘of an enterprise’’ after eral Housing Enterprises Financial Safety ‘‘(a) IN GENERAL.—The Director shall con- ‘‘under this section’’; and and Soundness Act of 1992 (12 U.S.C. 4518).’’. (2) FREDDIE MAC.—Section 303(h) of the duct, on a periodic basis, a review of the on- (B) by striking ‘‘to determine the condi- balance sheet and off-balance sheet assets tion of an enterprise for the purpose of en- Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1452(h)) is amended by adding and liabilities of each enterprise. suring its financial safety and soundness’’ ‘‘(b) AUTHORITY TO REQUIRE DISPOSITION OR and inserting ‘‘or appropriate’’ ; and at the end the following: ‘‘(4) Notwithstanding any other provision ACQUISITION.—Pursuant to such a review and (3) in subsection (c)— of this section, the Corporation shall not notwithstanding the capital classifications (A) in the second sentence, by inserting transfer, disburse, or pay compensation to of the enterprises, the Director may by order ‘‘to conduct examinations under this sec- any executive officer, or enter into an agree- require an enterprise, under such terms and tion’’ before the period; and ment with such executive officer, without conditions as the Director determines to be (B) in the third sentence, by striking the approval of the Director, for matters appropriate, to dispose of or acquire any ‘‘from amounts available in the Federal being reviewed under section 1318 of the Fed- asset or liability, if the Director determines Housing Enterprises Oversight Fund’’. eral Housing Enterprises Financial Safety that such action is consistent with the safe (b) ENHANCED AUTHORITY TO HIRE EXAM- and Soundness Act of 1992 (12 U.S.C. 4518).’’. and sound operation of the enterprise or with INERS AND ACCOUNTANTS.—Section 1317 of the the purposes of this Act or any of the author- SEC. 807. REVIEWS OF ENTERPRISES. Housing and Community Development Act of izing statutes.’’. 1992 (12 U.S.C. 4517) is amended by adding at Section 1319 of the Housing and Commu- nity Development Act of 1992 (12 U.S.C. 4519) SEC. 811. CORPORATE GOVERNANCE OF ENTER- the end the following: PRISES. is amended— ‘‘(g) APPOINTMENT OF ACCOUNTANTS, ECONO- The Housing and Community Development MISTS, SPECIALISTS, AND EXAMINERS.— (1) by striking the section designation and Act of 1992 is amended by inserting before ‘‘(1) APPLICABILITY.—This section applies heading and inserting the following: section 1323 (12 U.S.C. 4543) the following: with respect to any position of examiner, ac- ‘‘SEC. 1319. REVIEWS OF ENTERPRISES.’’; and ‘‘SEC. 1322A. CORPORATE GOVERNANCE OF EN- countant, specialist in financial markets, (2) by inserting after ‘‘any entity’’ the fol- TERPRISES. specialist in technology, and economist at lowing: ‘‘that the Director considers appro- ‘‘(a) BOARD OF DIRECTORS.— the Office, with respect to supervision and priate, including an entity’’. ‘‘(1) INDEPENDENCE.—A majority of seated regulation of the enterprises, that is in the SEC. 808. REGULATIONS AND ORDERS. members of the board of directors of each en- competitive service. Section 1319G of the Housing and Commu- terprise shall be independent board mem- ‘‘(2) APPOINTMENT AUTHORITY.—The Direc- nity Development Act of 1992 (12 U.S.C. 4526) bers, as defined under rules set forth by the tor may appoint candidates to any position is amended— New York Stock Exchange, as such rules described in paragraph (1)— (1) by striking subsection (a) and inserting may be amended from time to time. ‘‘(A) in accordance with the statutes, rules, the following: ‘‘(2) FREQUENCY OF MEETINGS.—To carry and regulations governing appointments in ‘‘(a) AUTHORITY.—The Director shall issue out its obligations and duties under applica- the excepted service; and any regulations, guidelines, and orders nec- ble laws, rules, regulations, and guidelines,

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00161 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.120 S03APPT1 ccoleman on PRODPC75 with SENATE S2528 CONGRESSIONAL RECORD — SENATE April 3, 2008 the board of directors of an enterprise shall utive officers, and employees of the enter- a compliance officer, however styled, who re- meet at least eight times a year and not less prise to discharge their duties and respon- ports directly to the chief executive officer than once a calendar quarter. sibilities, on behalf of the enterprise, in an of the enterprise. The compliance officer ‘‘(3) NON-MANAGEMENT BOARD MEMBER objective and impartial manner, and that in- shall report regularly to the board of direc- MEETINGS.—The non-management directors cludes standards required under section 406 tors or an appropriate committee of the of an enterprise shall meet at regularly of the Sarbanes-Oxley Act of 2002 (15 U.S.C. board of directors on compliance with and scheduled executive sessions without man- 7264) and other applicable laws, rules, and the adequacy of current compliance policies agement participation. regulations. and procedures of the enterprise, and shall ‘‘(4) QUORUM; PROHIBITION ON PROXIES.—For ‘‘(2) REVIEW.—Not less than once every recommend any adjustments to such policies the transaction of business, a quorum of the three years, an enterprise shall review the and procedures that the compliance officer board of directors of an enterprise shall be at adequacy of its code of conduct and ethics considers necessary and appropriate. least a majority of the seated board of direc- for consistency with practices appropriate to ‘‘(j) RISK MANAGEMENT PROGRAM.— tors and a board member may not vote by the enterprise and make any appropriate re- ‘‘(1) REQUIREMENT.—Each enterprise shall proxy. visions to such code. establish and maintain a risk management ‘‘(5) INFORMATION.—The management of an ‘‘(e) CONDUCT AND RESPONSIBILITIES OF program that is reasonably designed to man- enterprise shall provide a board member of BOARD OF DIRECTORS.—The board of directors age the risks of the operations of the enter- the enterprise with such adequate and appro- of an enterprise shall be responsible for di- prise. priate information that a reasonable board recting the conduct and affairs of the enter- ‘‘(2) RISK MANAGEMENT OFFICER.—The risk member would find important to the fulfill- prise in furtherance of the safe and sound op- management program of an enterprise shall ment of his or her fiduciary duties and obli- eration of the enterprise and shall remain be headed by a risk management officer, gations. reasonably informed of the condition, activi- however styled, who reports directly to the ‘‘(6) ANNUAL REVIEW.—At least annually, ties, and operations of the enterprise. The re- chief executive officer of the enterprise. The the board of directors of each enterprise sponsibilities of the board of directors shall risk management officer shall report regu- shall review, with appropriate professional include having in place adequate policies and larly to the board of directors or an appro- assistance, the requirements of laws, rules, procedures to assure its oversight of, among priate committee of the board of directors on regulations, and guidelines that are applica- other matters, the following: compliance with and the adequacy of current ble to its activities and duties. ‘‘(1) Corporate strategy, major plans of ac- risk management policies and procedures of ‘‘(b) COMMITTEES OF BOARDS OF DIREC- tion, risk policy, programs for legal and reg- the enterprise, and shall recommend any ad- TORS.— ulatory compliance and corporate perform- justments to such policies and procedures ‘‘(1) FREQUENCY OF MEETINGS.—Any com- ance, including prudent plans for growth and that the risk management officer considers mittee of the board of directors of an enter- allocation of adequate resources to manage necessary and appropriate. prise shall meet with sufficient frequency to operations risk. ‘‘(k) COMPLIANCE WITH OTHER LAWS.— carry out its obligations and duties under ‘‘(2) Hiring and retention of qualified exec- ‘‘(1) DEREGISTERED OR UNREGISTERED COM- applicable laws, rules, regulations, and utive officers and succession planning for MON STOCK.—If an enterprise deregisters or guidelines. such executive officers. has not registered its common stock with ‘‘(2) REQUIRED COMMITTEES.—Each enter- ‘‘(3) Compensation programs of the enter- the Securities and Exchange Commission prise shall provide for the establishment, prise. under the Securities Exchange Act of 1934, however styled, of the following committees ‘‘(4) Integrity of accounting and financial the enterprise shall comply or continue to of the board of directors: reporting systems of the enterprise, includ- comply with sections 10A(m) and 13(k) of the ‘‘(A) Audit committee. ing independent audits and systems of inter- Securities Exchange Act of 1934 (15 U.S.C. ‘‘(B) Compensation committee. nal control. 78j-1(m), 78m(k)) and sections 302, 304, and 406 ‘‘(C) Nominating/corporate governance ‘‘(5) Process and adequacy of reporting, dis- of the Sarbanes-Oxley Act of 2002 (15 U.S.C. committee. closures, and communications to share- 7241, 7243, 7264), subject to such requirements holders, investors, and potential investors. Such committees shall be in compliance as provided by subsection (l) of this section. ‘‘(6) Extensions of credit to board members with the charter, independence, composition, ‘‘(2) REGISTERED COMMON STOCK.—An enter- and executive officers. expertise, duties, responsibilities, and other prise that has its common stock registered ‘‘(7) Responsiveness of executive officers in requirements set forth under section 10A(m) with the Securities and Exchange Commis- providing accurate and timely reports to of the Securities Exchange Act of 1934 (15 sion shall maintain such registered status, Federal regulators and in addressing the su- U.S.C. 78j–1(m)), with respect to the audit unless it provides 60 days prior written no- pervisory concerns of Federal regulators in a committee, and under rules issued by the tice to the Director stating its intent to timely and appropriate manner. New York Stock Exchange, as such rules deregister and its understanding that it will ‘‘(f) PROHIBITION OF EXTENSIONS OF CRED- may be amended from time to time. remain subject to the requirements of the IT.—An enterprise may not directly or indi- ‘‘(c) COMPENSATION.— sections of the Securities Exchange Act of rectly, including through any subsidiary, ex- 1934 and the Sarbanes-Oxley Act of 2002, sub- ‘‘(1) IN GENERAL.—The compensation of tend or maintain credit, arrange for the ex- board members, executive officers, and em- ject to such requirements as provided by sub- tension of credit, or renew an extension of section (l) of this section. ployees of an enterprise— credit, in the form of a personal loan to or ‘‘(A) shall not be in excess of that which is ‘‘(l) OTHER MATTERS.—The Director may for any board member or executive officer of from time to time establish standards, by reasonable and appropriate; the enterprise, as provided by section 13(k) of ‘‘(B) shall be commensurate with the du- regulation, order, or guideline, regarding the Securities Exchange Act of 1934 (15 such other corporate governance matters of ties and responsibilities of such persons, U.S.C. 78m(k)). the enterprises as the Director considers ap- ‘‘(C) shall be consistent with the long-term ‘‘(g) CERTIFICATION OF DISCLOSURES.—The propriate. goals of the enterprise; chief executive officer and the chief financial ‘‘(m) MODIFICATION OF STANDARDS.—In con- ‘‘(D) shall not focus solely on earnings per- officer of an enterprise shall review each nection with standards of Federal or State formance, but shall take into account risk quarterly report and annual report issued by law (including the Revised Model Corpora- management, operational stability and legal the enterprise and such reports shall include tion Act) or New York Stock Exchange rules and regulatory compliance as well; and certifications by such officers as required by that are made applicable to an enterprise by ‘‘(E) shall be undertaken in a manner that section 302 of the Sarbanes-Oxley Act of 2002 section 1710.10 of the Director’s rules (12 complies with applicable laws, rules, and (15 U.S.C. 7241). regulations. ‘‘(h) CHANGE OF AUDIT PARTNER.—An enter- C.F.R. 1710.10) and by subsections (a), (b), (g), ‘‘(2) REIMBURSEMENT.—If an enterprise is prise may not accept audit services from an (i), (j), and (k) of this section, the Director, required to prepare an accounting restate- external auditing firm if the lead or coordi- in the Director’s sole discretion, may modify ment due to the material noncompliance of nating audit partner who has primary re- the standards contained in this section or in the enterprise, as a result of misconduct, sponsibility for the external audit of the en- part 1710 of the Director’s rules (12 U.S.C. with any financial reporting requirement terprise, or the external audit partner who Part 1710) in accordance with section 553 of under the securities laws, the chief executive has responsibility for reviewing the external title 5, United States Code, and upon written officer and chief financial officer of the en- audit has performed audit services for the notice to the enterprise.’’. terprise shall reimburse the enterprise as enterprise in each of the five previous fiscal SEC. 812. REQUIRED REGISTRATION UNDER SE- provided under section 304 of the Sarbanes- years. CURITIES EXCHANGE ACT OF 1934. Oxley Act of 2002 (15 U.S.C. 7243). This provi- ‘‘(i) COMPLIANCE PROGRAM.— The Housing and Community Development sion does not otherwise limit the authority ‘‘(1) REQUIREMENT.—Each enterprise shall Act of 1992 is amended by adding after sec- of the Office to employ remedies available to establish and maintain a compliance pro- tion 1322A, as added by the preceding provi- it under its enforcement authorities. gram that is reasonably designed to assure sions of this Act, the following: ‘‘(d) CODE OF CONDUCT AND ETHICS.— that the enterprise complies with applicable ‘‘SEC. 1322B. REQUIRED REGISTRATION UNDER ‘‘(1) IN GENERAL.—An enterprise shall es- laws, rules, regulations, and internal con- SECURITIES EXCHANGE ACT OF 1934. tablish and administer a written code of controls. ‘‘(a) IN GENERAL.—Each enterprise shall duct and ethics that is reasonably designed ‘‘(2) COMPLIANCE OFFICER.—The compliance register at least one class of the capital to assure the ability of board members, exec- program of an enterprise shall be headed by stock of such enterprise, and maintain such

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registration with the Securities and Ex- ‘‘(1) SUBMISSION OF REQUEST.—An enter- idential mortgage financing, or create sig- change Commission, under the Securities prise shall submit to the Director a written nificant new exposure to risk for the enter- Exchange Act of 1934. request for approval of a product that de- prise or the holder of the mortgage. ‘‘(b) ENTERPRISES.—Each enterprise shall scribes the product in such form as pre- ‘‘(g) NO LIMITATION.—Nothing in this sec- comply with sections 14 and 16 of the Securi- scribed by order or regulation of the Direc- tion shall be deemed to restrict— ties Exchange Act of 1934.’’. tor. ‘‘(1) the safety and soundness authority of SEC. 813. FINANCIAL INSTITUTIONS EXAMINA- ‘‘(2) REQUEST FOR PUBLIC COMMENT.—Imme- the Director over all new and existing prod- TION COUNCIL. diately upon receipt of a request for approval ucts or activities; or The Federal Financial Institutions Exam- of a product, as required under paragraph (1), ‘‘(2) the authority of the Director to review ination Council Act of 1978 is amended— the Director shall publish notice of such re- all new and existing products or activities to (1) in section 1003 (12 U.S.C. 3302)— quest and of the period for public comment determine that such products or activities (A) in paragraph (1), by inserting ‘‘Director pursuant to paragraph (3) regarding the are consistent with the statutory mission of of the Office of Federal Housing Enterprise product, and a description of the product an enterprise.’’. Oversight of the Department of Housing and proposed by the request. The Director shall SEC. 823. MONITORING AND ENFORCING COMPLI- Urban Development,’’ after ‘‘Supervision,’’; give interested parties the opportunity to re- ANCE WITH HOUSING GOALS. and spond in writing to the proposed product. Section 1336(a)(1) of the Federal Housing (B) in paragraph (3), by striking ‘‘or a cred- ‘‘(3) PUBLIC COMMENT PERIOD.—During the Enterprises Financial Safety and Soundness it union;’’ and inserting ‘‘a credit union, or 30-day period beginning on the date of publi- Act of 1992 (12 U.S.C. 4566(a)(1)) is amended an enterprise (as that term is defined in sec- cation pursuant to paragraph (2) of a request by striking ‘‘established’’ and all that fol- tion 1303 of the Housing and Community De- for approval of a product, the Director shall lows through ‘‘1334’’ and inserting ‘‘under velopment Act of 1992 (12 U.S.C. 4502)).’’; receive public comments regarding the pro- this subpart’’. (2) in section 1004(a) (12 U.S.C. 3303)— posed product. SEC. 824. ASSUMPTION BY DIRECTOR OF OTHER (A) in paragraph (4), by striking the ‘‘(4) OFFERING OF PRODUCT.— HUD RESPONSIBILITIES. comma at the end and inserting a semicolon; ‘‘(A) IN GENERAL.—Not later than 30 days (a) IN GENERAL.—Part 2 of subtitle A of the (B) by redesignating paragraphs (5) and (6) after the close of the public comment period Federal Housing Enterprises Financial Safe- as paragraphs (6) and (7), respectively; and described in paragraph (3), the Director shall ty and Soundness Act of 1992 (12 U.S.C. 4541 (C) by inserting after paragraph (4) the fol- approve or deny the product, specifying the et seq.) is amended— lowing: grounds for such decision in writing. (1) by striking ‘‘Secretary’’ each place that ‘‘(5) the Director of the Office of Federal ‘‘(B) FAILURE TO ACT.—If the Director fails term appears and inserting ‘‘Director’’ in Housing Enterprise Oversight of the Depart- to act within the 30-day period described in each of sections 1323, 1324, 1326, 1331, 1332, ment of Housing and Urban Development; subparagraph (A), then the enterprise may 1333, 1334, and 1336; and’’; and offer the product. (2) in section 1332 (12 U.S.C. 4562), by strik- (3) in section 1006(d) (12 U.S.C. 3305(d)), by ‘‘(d) EXPEDITED REVIEW.— ing subsection (d); striking ‘‘and employees of the Federal ‘‘(1) DETERMINATION AND NOTICE.—If an en- (3) in section 1333 (12 U.S.C. 4563), by strik- Housing Finance Board’’. terprise determines that any new activity, ing subsection (d); service, undertaking or offering is excluded (4) in section 1334 (12 U.S.C. 4564), by strik- Subtitle B—Improvement of Mission from the definition of a product under sub- ing subsection (d); and Supervision section (f), then the enterprise shall provide (5) by striking sections 1337, 1338, and 1349 SEC. 821. TRANSFER OF PROGRAM APPROVAL written notice to the Director prior to the (12 U.S.C. 4567, 4562 note, 4589). AND HOUSING GOAL OVERSIGHT. commencement of such activity, service, un- (b) RETENTION OF FAIR HOUSING RESPON- Part 2 of subtitle A of the Federal Housing dertaking, or offering. SIBILITIES.—Section 1325 of the Federal Hous- Enterprises Financial Safety and Soundness ‘‘(2) DIRECTOR DETERMINATION OF APPLICA- ing Enterprises Financial Safety and Sound- Act of 1992 (12 U.S.C. 4541 et seq.) is amend- BLE PROCEDURE.—Immediately upon receipt ness Act of 1992 (12 U.S.C. 4545) is amended in ed— of any notice pursuant to paragraph (1), the the matter preceding paragraph (1), by in- (1) by striking the heading for the part and Director shall make a determination under serting ‘‘of Housing and Urban Develop- inserting the following: paragraph (3). ment’’ after ‘‘The Secretary’’. ‘‘PART II—ADDITIONAL AUTHORITIES OF ‘‘(3) DETERMINATION AND TREATMENT AS A SEC. 825. ADMINISTRATIVE AND JUDICIAL EN- THE DIRECTOR’’; PRODUCT.—If the Director determines that FORCEMENT PROCEEDINGS. any new activity, service, undertaking, or of- (a) DIRECTOR AUTHORITY.—Subpart C of and part 2 of subtitle A of the Federal Housing (2) by striking sections 1321 and 1322. fering consists of, relates to, or involves a product— Enterprises Financial Safety and Soundness SEC. 822. REVIEW OF ENTERPRISE PRODUCTS. ‘‘(A) the Director shall notify the enter- Act of 1992 (12 U.S.C. 4581 et seq.) is amended Part 2 of subtitle A of the Federal Housing prise of the determination; by striking ‘‘Secretary’’ each place that Enterprises Financial Safety and Soundness ‘‘(B) the new activity, service, under- term appears and inserting ‘‘Director’’ in Act of 1992 (12 U.S.C. 4501 et seq.), as amend- taking, or offering described in the notice each of— ed by this Act, is amended by inserting be- under paragraph (1) shall be considered a (1) section 1341 (12 U.S.C. 4581); fore section 1323 the following: product for the purposes of this section; and (2) section 1342 (12 U.S.C. 4582); ‘‘SEC. 1321. PRIOR APPROVAL AUTHORITY FOR ‘‘(C) the enterprise shall withdraw its re- (3) section 1343 (12 U.S.C. 4583); PRODUCTS. quest or submit a written request for ap- (4) section 1344 (12 U.S.C. 4584); ‘‘(a) IN GENERAL.—The Director shall re- proval of the product pursuant to subsection (5) section 1345 (12 U.S.C. 4585); quire each enterprise to obtain the approval (c). (6) section 1346 (12 U.S.C. 4586); of the Director for any product of the enter- ‘‘(e) CONDITIONAL APPROVAL.—The Director (7) section 1347 (12 U.S.C. 4587); and prise before initially offering the product. may conditionally approve the offering of (8) section 1348 (12 U.S.C. 4588). ‘‘(b) STANDARD FOR APPROVAL.—In consid- any product by an enterprise, and may estab- (b) SUBPOENA ENFORCEMENT BY DIRECTOR.— ering any request for approval of a product lish terms, conditions, or limitations with Section 1348(c) of the Federal Housing Enter- pursuant to subsection (a), the Director shall respect to such product with which the en- prises Financial Safety and Soundness Act of make a determination that— terprise must comply in order to offer such 1992 (12 U.S.C. 4588(c)) is amended by insert- ‘‘(1) in the case of a product of the Federal product. ing ‘‘may bring an action or’’ before ‘‘may National Mortgage Association, the Director ‘‘(f) DEFINITION OF PRODUCT.—As used in request’’. determines that the product is authorized this section, the term ‘product’— SEC. 826. CONFORMING LOAN LIMITS. under paragraph (2), (3), (4), or (5) of section ‘‘(1) all programs, products, and activities, (a) FANNIE MAE.—Section 302(b)(2) of the 302(b) or section 304 of the Federal National offered by the enterprise in the marketplace; Federal National Mortgage Association Mortgage Association Charter Act (12 U.S.C. and Charter Act (12 U.S.C. 1717(b)(2)) is amended 1717(b), 1719); ‘‘(2) does not include— by striking ‘‘The Corporation shall estab- ‘‘(2) in the case of a product of the Federal ‘‘(A) the automated loan underwriting sys- lish’’ and all that follows through the end of Home Loan Mortgage Corporation, the Di- tem of an enterprise in existence as of the the paragraph and inserting the following: rector determines that the product is au- date of enactment of the Federal Housing ‘‘Such limitations shall not exceed $417,000 thorized under paragraph (1), (4), or (5) of Enterprise Regulatory Reform Act of 2008, for a mortgage secured by a single-family section 305(a) of the Federal Home Loan including any upgrade to the technology, op- residence, $533,850 for a mortgage secured by Mortgage Corporation Act (12 U.S.C. 1454(a)); erating system, or software to operate the a 2-family residence, $645,300 for a mortgage ‘‘(3) the product is in the public interest; underwriting system; or secured by a 3-family residence, or $801,950 ‘‘(4) the product is consistent with the ‘‘(B) any modification to the mortgage for a mortgage secured by a 4-family resi- safety and soundness of the enterprise or the terms and conditions or mortgage under- dence, except that such maximum limita- mortgage finance system; and writing criteria relating to the mortgages tions shall be adjusted effective January 1 of ‘‘(5) the product does not impair the sta- that are purchased or guaranteed by an en- each year beginning after the effective date bility or competitiveness of the mortgage fi- terprise, provided that such modifications do under section 163 of the Federal Housing En- nance system. not alter the underlying transaction so as to terprise Regulatory Reform Act of 2008, sub- ‘‘(c) PROCEDURE FOR APPROVAL.— include services or financing, other than res- ject to the limitations in this paragraph.

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00163 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.120 S03APPT1 ccoleman on PRODPC75 with SENATE S2530 CONGRESSIONAL RECORD — SENATE April 3, 2008 Such limitation shall be calculated with re- (2) by adding at the end the following: ‘‘(iv) the supportive housing for the elderly spect to the total original principal obliga- ‘‘(d) MORTGAGE DATA.—The Director shall, program under section 202 of the Housing tion of the mortgage, and not merely with by regulation or order, provide that certain Act of 1959; respect to the interest purchased by the en- information relating to single family mort- ‘‘(v) the supportive housing program for terprise. Each adjustment shall be made by gage data of the enterprises shall be dis- persons with disabilities under section 811 of adding to or subtracting from each such closed to the public in order to make avail- the Cranston-Gonzalez National Affordable amount (as it may have been previously ad- able to the public the same data from the en- Housing Act; and justed) a percentage thereof equal to the per- terprises that is required of insured deposi- ‘‘(vi) the rural rental housing program centage increase or decrease, during the tory institutions under the Home Mortgage under section 515 of the Housing Act of 1949; most recent 12-month or fourth quarter pe- Disclosure Act.’’. ‘‘(C) for mortgages on housing for very riod ending before the time of determining low-, low-, and moderate-income families in (b) DEFINITIONS.—Section 1334 of the Fed- such annual adjustment, in the housing price rural areas, and for mortgages for housing index maintained by the Director of the Of- eral Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4564), as for any other underserved market for very fice of Federal Housing Enterprise Oversight low-, low-, and moderate-income families (pursuant to section 1321 of the Federal amended by this Act, is amended by adding at the end the following: that the Director identifies as lacking ade- Housing Enterprises Financial Safety and quate credit through conventional lending ‘‘(d) DEFINITIONS.—For purposes of this sec- Soundness Act of 1992 (12 U.S.C. 4541)).’’. sources, which underserved markets may be (b) FREDDIE MAC.—Section 305(a)(2) of the tion, the term ‘underserved area’ means an identified by borrower type, market seg- Federal Home Loan Mortgage Corporation urban census tract that has— ment, or geographic area; and Act (12 U.S.C. 1454(a)(2)) is amended by strik- ‘‘(1) an average median family income of ‘‘(D) for mortgages originated through ing ‘‘The Corporation shall establish’’ and all less than 80 percent of the area median fam- State or local affordable or subsidized hous- that follows through the end of the para- ily income; or ing programs.’’; and graph and inserting the following: ‘‘Such ‘‘(2) a minority population of at least 30 (6) by adding at the end the following: limitations shall not exceed $417,000 for a percent and a median family income of less ‘‘(c) EVALUATION AND REPORTING OF COM- mortgage secured by a single-family resi- than 100 percent of the area family median PLIANCE.— dence, $533,850 for a mortgage secured by a 2- income.’’. family residence, $645,300 for a mortgage se- ‘‘(1) METHOD OF EVALUATION.—Not later cured by a 3-family residence, or $801,950 for SEC. 828. DUTY TO SERVE UNDERSERVED MAR- than 6 months after the effective date of a mortgage secured by a 4-family residence, KETS. title I of the Federal Housing Enterprise except that such maximum limitations shall (a) ESTABLISHMENT AND EVALUATION OF Regulatory Reform Act of 2008, the Director be adjusted effective January 1 of each year PERFORMANCE.—Section 1335 of the Federal shall establish a method for evaluating beginning after the effective date under sec- Housing Enterprises Financial Safety and whether, and the extent to which, the enter- tion 163 of the Federal Housing Enterprise Soundness Act of 1992 (12 U.S.C. 4565) is prises have complied with the duty under Regulatory Reform Act of 2008, subject to amended— subsection (a) to serve underserved markets the limitations in this paragraph. Such limi- (1) in the section heading, by inserting and for rating the extent of such compliance. tation shall be calculated with respect to the ‘‘DUTY TO SERVE UNDERSERVED MARKETS ‘‘(2) ANNUAL EVALUATIONS.—Using the total original principal obligation of the AND’’ before ‘‘OTHER’’; method established under paragraph (1), the mortgage and not merely with respect to the (2) by striking subsection (b); Director shall, for each year, evaluate such interest purchased by the enterprise. Each (3) in subsection (a)— compliance and rate the performance of each adjustment shall be made by adding to or (A) by inserting ‘‘and to carry out the duty enterprise as to the extent of compliance. subtracting from each such amount (as it under subsection (a)’’ before ‘‘, each enter- The Director shall include such evaluation may have been previously adjusted) a per- prise shall’’; and rating for each enterprise for a year in centage thereof equal to the percentage in- (B) in paragraph (3), by inserting ‘‘and’’ at the report for that year submitted pursuant crease or decrease, during the most recent the end; to section 1319B(a). 12-month or fourth quarter period ending be- (C) in paragraph (4), by striking ‘‘; and’’ ‘‘(3) SEPARATE EVALUATIONS.—In deter- fore the time of determining such annual ad- and inserting a period; and mining whether an enterprise has complied justment, in the housing price index main- (D) by striking paragraph (5); and with the duty under subsection (a), the Di- tained by the Director of the Office of Fed- (4) by redesignating subsection (a) as sub- rector shall separately evaluate whether the eral Housing Enterprise Oversight (pursuant section (b); enterprise has complied with such duty with to section 1321 of the Federal Housing Enter- (5) by inserting before subsection (b) (as so respect to each of the underserved markets prises Financial Safety and Soundness Act of redesignated) the following: identified in subsection (a), taking into con- 1992 (12 U.S.C. 4541)).’’. ‘‘(a) DUTY TO SERVE UNDERSERVED MAR- sideration— (c) HOUSING PRICE INDEX.—The Federal KETS.— ‘‘(A) the development of loan products and Housing Enterprises Financial Safety and ‘‘(1) DUTY.—In accordance with the pur- more flexible underwriting guidelines; Soundness Act of 1992, as amended by this poses of the enterprises under section 301(3) ‘‘(B) the extent of outreach to qualified Act, is amended by inserting before section loan sellers in each of such underserved mar- 1323 the following: of the Federal National Mortgage Associa- tion Charter Act (12 U.S.C. 1716) and section kets; and ‘‘SEC. 1322. HOUSING PRICE INDEX. 301(b)(3) of the Federal Home Loan Mortgage ‘‘(C) the volume of loans purchased in each ‘‘(a) METHOD OF ASSESSMENT.—The Direc- Corporation Act (12 U.S.C. 1451 note) to un- of such underserved markets.’’. tor shall establish, by regulation, and main- (b) ENFORCEMENT.—Section 1336(a) of the tain a method of assessing the national aver- dertake activities relating to mortgages on housing for very low-, low-, and moderate-in- Federal Housing Enterprises Financial Safe- age single-family housing price for use in ad- ty and Soundness Act of 1992 (12 U.S.C. justing the conforming loan limitations of come families, involving a reasonable economic return that may be less than the re- 4566(a)) is amended— the enterprises. (1) in paragraph (1), by inserting before the ‘‘(b) CONSIDERATIONS.—The Director shall turn earned on other activities, each enter- period ‘‘and with the duty under section take into consideration the monthly survey prise shall have the duty to increase the li- 1335A of each enterprise with respect to un- of all major lenders conducted by the Office quidity of mortgage investments and im- derserved markets’’; and to determine the national average single- prove the distribution of investment capital (2) by adding at the end the following: family house price, the Housing Price Index available for mortgage financing for under- ‘‘(4) ENFORCEMENT OF DUTY TO PROVIDE maintained by the Office of Federal Housing served markets. MORTGAGE CREDIT TO UNDERSERVED MAR- Enterprise Oversight of the Department of ‘‘(2) UNDERSERVED MARKETS.—To meet its KETS.—Compliance with the duty under sec- Housing and Urban Development before the duty under paragraph (1), each enterprise tion 1335(a) of each enterprise to serve under- effective date under section 163 of the Fed- shall lead the industry in developing loan served markets (as determined in accordance eral Housing Enterprise Regulatory Reform products and flexible underwriting guide- Act of 2008, any appropriate housing price in- lines to facilitate a secondary market— with section 1335(c)) shall be enforceable dexes of the Bureau of the Census of the De- ‘‘(A) for mortgages on manufactured homes under this section to the same extent and partment of Commerce, and any other infor very low-, low-, and moderate-income under the same provisions that the housing dexes or measure that the Director considers families; goals established under sections 1332, 1333, appropriate.’’. ‘‘(B) to preserve housing affordable to very and 1334 are enforceable. Such duty shall not be enforceable under any provision of this SEC. 827. REPORTING OF MORTGAGE DATA; low-, low-, and moderate-income families, in- HOUSING GOALS. cluding housing projects subsidized under— title (including subpart C), other than this (a) REPORTING OF MORTGAGE DATA.—Sec- ‘‘(i) the project-based and tenant-based section, or under any provision of the Fed- tion 1325 of the Federal Housing Enterprises rental assistance programs under section 8 of eral National Mortgage Association Charter Financial Safety and Soundness Act of 1992 the United States Housing Act of 1937; Act or the Federal Home Loan Mortgage (12 U.S.C. 4546), as so redesignated by this ‘‘(ii) the program under section 236 of the Corporation Act, as applicable.’’. Act, is amended— National Housing Act; SEC. 829. HOME PURCHASE GOAL. (1) in subsection (a), by striking ‘‘The Di- ‘‘(iii) the below market interest rate mort- The Federal Housing Enterprises Financial rector’’ and inserting ‘‘Subject to subsection gage program under section 221(d)(4) of the Safety and Soundness Act of 1992 (12 U.S.C. (d), the Director’’; and National Housing Act; 4501 et seq.) is amended—

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(1) by inserting after section 1334 the fol- financing of mortgages addressed by the ‘‘(B) CONSIDERATIONS.—In making a final lowing: goal. determination under subparagraph (A), the ‘‘SEC. 1334A. HOME PURCHASE GOAL. ‘‘(b) FACTORS TO BE CONSIDERED.—In estab- Director shall take into consideration any ‘‘(a) ESTABLISHMENT.— lishing any additional goals under this sec- relevant information submitted by the enter- ‘‘(1) IN GENERAL.—The Director shall estab- tion, the Director shall consider— prise during the response period. lish an annual home purchase goal for the ‘‘(1) national housing needs; ‘‘(C) NOTICE.—The Director shall provide purchase by each enterprise of mortgage fi- ‘‘(2) economic, housing, and demographic written notice, including a response to any nancing of owner-occupied single family conditions; information submitted during the response dwelling units. ‘‘(3) the performance and effort of the en- period to the enterprise, the Committee on terprises toward achieving the need ad- ‘‘(2) COMPONENTS.—The Director may, by Banking, Housing, and Urban Affairs of the regulation, establish components for the dressed by any such additional goal in pre- Senate, and the Committee on Financial vious years; goal established under paragraph (1) to in- Services of the House of Representatives, ‘‘(4) the size of the conventional mortgage clude any or all of the following: of— market serving the need addressed by the ‘‘(A) First-time home buyers. ‘‘(i) each final determination under this goal, relative to the size of the overall con- ‘‘(B) Low- and moderate-income home buy- paragraph that an enterprise has failed, or ventional mortgage market; ers. that there is a substantial probability that ‘‘(5) the ability of the enterprises to lead ‘‘(C) Home buyers in central cities, rural the enterprise will fail, to meet a housing the industry in making mortgage credit areas, and other underserved areas. goal; available to meet the need addressed by the ‘‘(D) Home buyers who obtain financing ‘‘(ii) each final determination that the goal; and through State or local affordable or sub- achievement of a housing goal was or is fea- ‘‘(6) the need to maintain the sound finan- sible; and sidized housing programs. cial condition of the enterprises. ‘‘(iii) the reasons for each such final deter- ‘‘(3) OTHER AUTHORITY.—The Director may, ‘‘(c) TRANSITION.—In order to permit a mination. by regulation, establish the goal under para- transition to the establishment of any goal ‘‘(c) CEASE AND DESIST, CIVIL MONEY PEN- graph (1) with components as percentages of under this section, such goal shall not be ef- ALTIES, AND REMEDIES INCLUDING HOUSING enterprise business, or by such other means fective or enforceable during the 1-year pe- PLANS.— as necessary to increase the secondary mar- riod beginning on the date of its establish- ‘‘(1) REQUIREMENT.—If the Director finds, ket financing of mortgages by the enter- ment under subsection (a).’’; pursuant to subsection (b), that there is a prises for home purchases, consistent with (2) in section 1335 (12 U.S.C. 4565(a)), by substantial probability that an enterprise the missions of the enterprises. striking ‘‘meet the low-’’ and all that follows will fail, or has actually failed, to meet any ‘‘(4) ENFORCEABILITY.—The components of through ‘‘1334’’ and inserting ‘‘meet the goals housing goal under this subpart, and that the the goal established by the Director under under this subpart’’; achievement of the housing goal was or is paragraph (1) shall be enforceable as goals (3) in section 1336 (12 U.S.C. 4566), by strik- feasible, the Director may require that the under subpart C. ing subsections (b) and (c) and inserting the enterprise submit a housing plan under this ‘‘(b) FACTORS TO BE CONSIDERED.—In estab- following: subsection. If the Director makes such a lishing the home purchase goal for an enter- ‘‘(b) NOTICE AND PRELIMINARY DETERMINA- finding and the enterprise refuses to submit prise under this section, the Director shall TION OF FAILURE TO MEET GOALS.— such a plan, submits an unacceptable plan, consider— ‘‘(1) NOTICE.—If the Director preliminarily fails to comply with the plan, or the Director ‘‘(1) national housing needs; determines that an enterprise has failed, or finds that the enterprise has failed to meet ‘‘(2) economic, housing, and demographic that there is a substantial probability that any housing goal under this subpart, in addi- conditions; an enterprise will fail, to meet any housing tion to requiring an enterprise to submit a ‘‘(3) the performance and effort of the en- goal under this subpart, the Director shall housing plan, the Director may issue a cease terprises toward achieving the home pur- provide written notice to the enterprise of and desist order in accordance with section chase goal in previous years; such a preliminary determination, the rea- 1341, impose civil money penalties in accord- ‘‘(4) the size of the conventional mortgage sons for such determination, and the infor- ance with section 1345, or order other rem- market serving home purchasers, relative to mation on which the Director based the de- edies as set forth in paragraph (7). the size of the overall conventional mort- termination. ‘‘(2) HOUSING PLAN.—If the Director re- gage market; ‘‘(2) RESPONSE PERIOD.— quires a housing plan under this subsection, ‘‘(5) the ability of the enterprises to lead ‘‘(A) IN GENERAL.—During the 30-day period such a plan shall be— the industry in making mortgage credit beginning on the date on which an enterprise ‘‘(A) a feasible plan describing the specific available for home purchasers; and is provided notice under paragraph (1), the actions the enterprise will take— ‘‘(6) the need to maintain the sound finan- enterprise may submit to the Director any ‘‘(i) to achieve the goal for the next cal- cial condition of the enterprises. written information that the enterprise con- endar year; and ‘‘(c) TRANSITION.—In order to permit a siders appropriate for consideration by the ‘‘(ii) if the Director determines that there transition to the establishment of the goal Director in finally determining whether such is a substantial probability that the enter- under this section, such goal shall not be ef- failure has occurred or whether the achieve- prise will fail to meet a goal in the current fective or enforceable during the 1-year pe- ment of such goal was or is feasible. year, to make such improvements and riod beginning on the date of its establish- ‘‘(B) EXTENDED PERIOD.—The Director may changes in its operations as are reasonable ment under subsection (a). extend the period under subparagraph (A) for in the remainder of such year; and ‘‘(d) IMPLEMENTATION DURING TRANSI- good cause for not more than 30 additional ‘‘(B) sufficiently specific to enable the Di- TION.—The Director shall establish, by rule, days. rector to monitor compliance periodically. any requirements necessary to implement ‘‘(C) SHORTENED PERIOD.—The Director ‘‘(3) DEADLINE FOR SUBMISSION.—The Direc- the transition provisions under subsection may shorten the period under subparagraph tor shall, by regulation, establish a deadline (c), after providing the enterprises with an (A) for good cause. for an enterprise to comply with any reme- opportunity to review and comment not less ‘‘(D) FAILURE TO RESPOND.—The failure of dial action or submit a housing plan to the than 30 days before the issuance of such no- an enterprise to provide information during Director, which may not be more than 45 tice. the 30-day period under this paragraph (as days after the enterprise is provided notice. ‘‘SEC. 1334B HOUSING GOALS, ADDITIONS, MODI- extended or shortened) shall waive any right The regulations shall provide that the Direc- FICATIONS, AND RESCISSIONS. of the enterprise to comment on the pro- tor may extend the deadline to the extent ‘‘(a) IN GENERAL.— posed determination or action of the Direc- that the Director determines necessary. Any ‘‘(1) AUTHORITY TO ADDRESS GOALS.—The tor. extension of the deadline shall be in writing Director may, by regulation, establish addi- ‘‘(3) CONSIDERATION OF INFORMATION AND and for a time certain. tional annual housing goals, or modify or re- FINAL DETERMINATION.— ‘‘(4) APPROVAL.—The Director shall review scind existing housing goals, to address na- ‘‘(A) IN GENERAL.—After the expiration of each submission by an enterprise, including tional housing needs consistent with the the response period under paragraph (2), or a housing plan submitted under this sub- missions, of the enterprises and the author- upon receipt of information provided during section, and, not later than 30 days after sub- izing statutes, for the purchase of mort- such period by the enterprise, whichever oc- mission, approve or disapprove the plan or gages, if the Director determines, by regula- curs earlier, the Director shall issue a final other action. The Director may extend the tion, that the housing need is greatest. determination on— period for approval or disapproval for a sin- ‘‘(2) METHODOLOGY.—The Director may ‘‘(i) whether the enterprise has failed, or gle additional 30-day period if the Director issue a regulation which establishes or modi- there is a substantial probability that the determines it necessary. The Director shall fies any goal under this subsection— enterprise will fail, to meet the housing goal; approve any plan that the Director deter- ‘‘(A) as a percentage of the mortgage pur- and mines is likely to succeed, and conforms chases of each enterprise; ‘‘(ii) whether (taking into consideration with the Federal National Mortgage Associa- ‘‘(B) as a dollar amount of each enter- market and economic conditions and the fi- tion Charter Act or the Federal Home Loan prise’s mortgage purchases; or nancial condition of the enterprise) the Mortgage Corporation Act (as applicable), ‘‘(C) by such other means as necessary to achievement of the housing goal was or is this title, and any other applicable provision increase the enterprises’ secondary market feasible. of law.

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‘‘(5) NOTICE OF APPROVAL AND DIS- ‘‘(C) comply with any provision of part 2 of ‘‘(C) ability to pay the penalty; APPROVAL.—The Director shall provide writ- this title or any order, rule, or regulation ‘‘(D) injury to the public; ten notice to any enterprise submitting a under part 2; ‘‘(E) benefits received; housing plan of the approval or disapproval ‘‘(D) submit a housing plan in compliance ‘‘(F) deterrence of future violations; of the plan (which shall include the reasons with section 1336(c); ‘‘(G) the length of time that the enterprise for any disapproval of the plan) and of any ‘‘(E) comply with the housing plan in com- should reasonably take to achieve the goal; extension of the period for approval or dis- pliance with section 1336(c); or and approval. ‘‘(F) provide the information required ‘‘(H) such other factors as the Director ‘‘(6) RESUBMISSION.—If the initial housing under subsection (m) or (n) of section 309 of may determine, by regulation, to be appro- plan submitted by an enterprise under this the Federal National Mortgage Association priate. section is disapproved, the enterprise shall Charter Act, or subsection (e) or (f) of sec- ‘‘(d) ACTION TO COLLECT PENALTY.—If an submit an amended plan acceptable to the tion 307 of the Federal Home Loan Mortgage enterprise fails to comply with an order by Director not later than 30 days after such Corporation Act. the Director imposing a civil money penalty disapproval, or such longer period that the ‘‘(c) EFFECTIVE DATE.—An order under this under this section, after the order is no Director determines is in the public interest. section shall become effective upon the expi- longer subject to review, as provided in sec- ‘‘(7) ADDITIONAL REMEDIES FOR FAILURE TO ration of the 30-day period beginning on the tions 1342 and 1343, the Director may request MEET GOALS.—In addition to ordering a hous- date of service of the order upon the enter- the Attorney General of the United States to ing plan under this section, issuing a cease prise (except in the case of an order issued bring an action in the United States District and desist order under section 1341, and or- upon consent, which shall become effective Court for the District of Columbia to obtain dering civil money penalties under section at the time specified therein), and shall re- a monetary judgment against the enterprise, 1345, the Director may seek other actions main effective and enforceable as provided in and such other relief as may be available. when an enterprise fails to meet a goal, in- the order, except to the extent that the order The monetary judgment may, in the court’s discretion, include the attorneys’ fees and cluding requesting that the Director exercise is stayed, modified, terminated, or set aside other expenses incurred by the United States appropriate enforcement authority available by action of the Director of or otherwise, as in connection with the action. In an action to the Director under this title to prohibit provided in this subpart.’’; and under this subsection, the validity and ap- the enterprise from entering into new activi- (7) by striking section 1345 and inserting propriateness of the order imposing the pen- ties, to freeze any pending approval of new the following: alty shall not be subject to review. activities, and to order the enterprise to sus- ‘‘SEC. 1345. CIVIL MONEY PENALTIES. ‘‘(e) SETTLEMENT BY DIRECTOR.—The Direc- pend activities pending its achievement of ‘‘(a) AUTHORITY.—The Director may impose tor may compromise, modify, or remit any the goal.’’; a civil money penalty, in accordance with civil money penalty which may be, or has (4) by striking section 1338 (12 U.S.C. 4568); the provisions of this section, on any enter- been, imposed under this section. (5) by striking from the heading of subpart prise that has failed to— ‘‘(f) DEPOSIT OF PENALTIES.—The Director C ‘‘of Housing Goals’’; ‘‘(1) meet any housing goal established shall deposit any civil money penalties col- (6) by striking section 1341 (12 U.S.C. 4581) under subpart B, following a written notice lected under this section into the General and inserting the following: and determination of such failure in accord- Fund of the Treasury.’’. ‘‘SEC. 1341. CEASE-AND-DESIST PROCEEDINGS. ance with section 1336(b); Subtitle C—Prompt Corrective Action ‘‘(2) submit a report under section 1327, fol- SEC. 831. CRITICAL CAPITAL LEVELS. ‘‘(a) GROUNDS FOR ISSUANCE.—The Director lowing a notice of such failure, an oppor- Section 1363 of the Federal Housing Enter- may issue and serve a notice of charges tunity for comment by the enterprise, and a prises Financial Safety and Soundness Act of under this section upon an enterprise if the final determination by the Director; 1992 (12 U.S.C. 4613) is amended— Director determines that— ‘‘(3) submit the information required under (1) by redesignating paragraphs (1) through ‘‘(1) the enterprise has failed to meet any subsection (m) or (n) of section 309 of the (3) as subparagraphs (A) through (C), respec- housing goal established under subpart B, Federal National Mortgage Association tively, and indenting appropriately; following a written notice and determination Charter Act or subsection (e) or (f) of section (2) by striking ‘‘shall be the sum of—’’ and of such failure in accordance with section 307 of the Federal Home Loan Mortgage Cor- inserting the following: ‘‘shall be— 1336; poration Act; ‘‘(1) the sum of—’’; and ‘‘(2) the enterprise has failed to submit a ‘‘(4) comply with any provision of part 2 of (3) in paragraph (1)(C), as so designated by report under section 1327, following a notice this title or any order, rule, or regulation this section, by striking the period at the of such failure, an opportunity for comment under part 2; end and inserting the following: ‘‘; or by the enterprise, and a final determination ‘‘(5) submit a housing plan or perform its ‘‘(2) such other level as the Director shall by the Director; responsibilities under a remedial order establish, by regulation.’’. ‘‘(3) the enterprise has failed to submit the issued pursuant to section 1336(c) within the SEC. 832. CAPITAL CLASSIFICATIONS. information required under subsection (m) or required period; or Section 1364 of the Federal Housing Enter- (n) of section 309 of the Federal National ‘‘(6) comply with a housing plan for the en- prises Financial Safety and Soundness Act of Mortgage Association Charter Act, sub- terprise under section 1336(c). 1992 (12 U.S.C. 4614) is amended— section (e) or (f) of section 307 of the Federal ‘‘(b) AMOUNT OF PENALTY.—The amount of (1) in subsection (a)— Home Loan Mortgage Corporation Act, or a penalty under this section, as determined (A) in paragraph (3)(A)— section 1337 of this title; by the Director, may not exceed— (i) by striking clause (i); and ‘‘(4) the enterprise has violated any provi- ‘‘(1) for any failure described in paragraph (ii) by redesignating clauses (ii) and (iii) as sion of part 2 of this title or any order, rule, (1), (5), or (6) of subsection (a), $100,000 for clauses (i) and (ii), respectively; and or regulation under part 2; each day that the failure occurs; and (B) in paragraph (4)(A), by striking ‘‘enter- ‘‘(5) the enterprise has failed to submit a ‘‘(2) for any failure described in paragraph prise—’’ and all that follows through ‘‘(ii) housing plan or perform its responsibilities (2), (3), or (4) of subsection (a), $50,000 for does’’ and inserting ‘‘enterprise does’’; under a remedial order that substantially each day that the failure occurs. (2) by striking subsection (b) and inserting complies with section 1336(c) within the ap- ‘‘(c) PROCEDURES.— the following: plicable period; or ‘‘(1) ESTABLISHMENT.—The Director shall ‘‘(b) DISCRETIONARY CLASSIFICATION.— ‘‘(6) the enterprise has failed to comply establish standards and procedures gov- ‘‘(1) GROUNDS FOR RECLASSIFICATION.—The with a housing plan under section 1336(c). erning the imposition of civil money pen- Director may reclassify an enterprise under ‘‘(b) PROCEDURE.— alties under this section. Such standards and paragraph (2) if— ‘‘(1) NOTICE OF CHARGES.—Each notice of procedures— ‘‘(A) at any time, the Director determines charges issued under this section shall con- ‘‘(A) shall provide for the Director to no- in writing that an enterprise is engaging in tain a statement of the facts constituting tify the enterprise in writing of the deter- conduct that could result in a rapid deple- the alleged conduct and shall fix a time and mination of the Director to impose the pen- tion of core capital, or that the value of the place at which a hearing will be held to de- alty, which shall be made on the record; property subject to mortgages held or termine on the record whether an order to ‘‘(B) shall provide for the imposition of a securitized by an enterprise, or the value of cease and desist from such conduct should penalty only after the enterprise has been collateral pledged as security, has decreased issue. given an opportunity for a hearing on the significantly; ‘‘(2) ISSUANCE OF ORDER.—If the Director record pursuant to section 1342; and ‘‘(B) after notice and an opportunity for finds on the record made at a hearing de- ‘‘(C) may provide for review by the Direc- hearing, the Director determines that an en- scribed in paragraph (1) that any conduct tor of any determination or order, or inter- terprise is in an unsafe or unsound condition; specified in the notice of charges has been locutory ruling, arising from a hearing. or established (or the enterprise consents pur- ‘‘(2) FACTORS IN DETERMINING AMOUNT OF ‘‘(C) pursuant to section 1371(b), the Direc- suant to section 1342(a)(4)), the Director may PENALTY.—In determining the amount of a tor determines that an enterprise is engag- issue and serve upon the enterprise an order penalty under this section, the Director shall ing in an unsafe or unsound practice. requiring the enterprise to— give consideration to factors including— ‘‘(2) RECLASSIFICATION.—In addition to any ‘‘(A) comply with the goals; ‘‘(A) the gravity of the offense; other action authorized under this title, in- ‘‘(B) submit a report under section 1327; ‘‘(B) any history of prior offenses; cluding the reclassification of an enterprise

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00166 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.121 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2533 for any reason not specified in this sub- ‘‘(B) the Director determines that the pro- SEC. 835. AUTHORITY OVER CRITICALLY UNDER- section, if the Director takes any action de- posed action will further the purpose of this CAPITALIZED ENTERPRISES. scribed in paragraph (1), the Director may subtitle.’’; (a) IN GENERAL.—Section 1367 of the Fed- reclassify an enterprise— (2) in subsection (b)— eral Housing Enterprises Financial Safety ‘‘(A) as ‘undercapitalized’, if the enterprise (A) in the subsection heading, by striking and Soundness Act of 1992 (12 U.S.C. 4617) is is otherwise classified as adequately capital- ‘‘DISCRETIONARY’’; amended to read as follows: ized; (B) in the matter preceding paragraph (1), ‘‘SEC. 1367. AUTHORITY OVER CRITICALLY ‘‘(B) as ‘significantly undercapitalized’, if by striking ‘‘may’’ and inserting ‘‘shall’’; UNDERCAPITALIZED ENTERPRISES. the enterprise is otherwise classified as and ‘‘(a) APPOINTMENT OF THE OFFICE AS CON- undercapitalized; and (C) in paragraph (2)— SERVATOR OR RECEIVER.— ‘‘(1) IN GENERAL.—Notwithstanding any ‘‘(C) as ‘critically undercapitalized’, if the (i) by striking ‘‘make, in good faith, rea- other provision of Federal or State law, the enterprise is otherwise classified as signifi- sonable efforts necessary to’’; and Director may appoint the Office as conser- cantly undercapitalized.’’; and (ii) by striking the period at the end and vator or receiver for an enterprise in the (3) by striking subsection (d) and inserting inserting ‘‘in any material respect.’’; and manner provided under paragraph (2) or (4). the following: (3) by striking subsection (c) and inserting All references to the conservator or receiver the following: ‘‘(d) RESTRICTION ON CAPITAL DISTRIBU- under this section are references to the Of- ‘‘(c) OTHER DISCRETIONARY SAFEGUARDS.— TIONS.— The Director may take, with respect to an fice acting as conservator or receiver. ‘‘(1) IN GENERAL.—An enterprise shall make undercapitalized enterprise, any of the ac- ‘‘(2) DISCRETIONARY APPOINTMENT.—The Of- no capital distribution if, after making the tions authorized to be taken under section fice may, at the discretion of the Director, distribution, the enterprise would be under- 1366 with respect to a significantly under- be appointed conservator or receiver for the capitalized. capitalized enterprise, if the Director deter- purpose of reorganizing, rehabilitating, or ‘‘(2) EXCEPTION.—Notwithstanding para- mines that such actions are necessary to winding up the affairs of an enterprise. graph (1), the Director may permit an enter- carry out the purpose of this subtitle.’’. ‘‘(3) GROUNDS FOR DISCRETIONARY APPOINT- prise to repurchase, redeem, retire, or other- SEC. 834. SUPERVISORY ACTIONS APPLICABLE MENT OF CONSERVATOR OR RECEIVER.—The wise acquire shares or ownership interests if TO SIGNIFICANTLY UNDERCAPITAL- grounds for appointing conservator or re- the repurchase, redemption, retirement, or IZED ENTERPRISES. ceiver for any enterprise under paragraph (2) other acquisition— Section 1366 of the Federal Housing Enter- are as follows: ‘‘(A) is made in connection with the prises Financial Safety and Soundness Act of ‘‘(A) SUBSTANTIAL DISSIPATION.—Substan- issuance of additional shares or obligations 1992 (12 U.S.C. 4616) is amended— tial dissipation of assets or earnings due to— of the enterprise in at least an equivalent (1) in subsection (a)(2), by striking ‘‘under- ‘‘(i) any violation of any provision of Fed- amount; and capitalized enterprise’’ and inserting ‘‘under- eral or State law; or ‘‘(B) will reduce the financial obligations capitalized’’; and ‘‘(ii) any unsafe or unsound practice. of the enterprise or otherwise improve the fi- (2) in subsection (b)— ‘‘(B) UNSAFE OR UNSOUND CONDITION.—An nancial condition of the enterprise.’’. (A) in the subsection heading, by striking unsafe or unsound condition to transact ‘‘DISCRETIONARY SUPERVISORY’’ and inserting business. SEC. 833. SUPERVISORY ACTIONS APPLICABLE ‘‘SPECIFIC’’; ‘‘(C) CEASE-AND-DESIST ORDERS.—Any will- TO UNDERCAPITALIZED ENTER- ful violation of a cease-and-desist order that PRISES. (B) in the matter preceding paragraph (1), by striking ‘‘may, at any time, take any’’ has become final. Section 1365 of the Federal Housing Enter- and inserting ‘‘shall carry out this section ‘‘(D) CONCEALMENT.—Any concealment of prises Financial Safety and Soundness Act of by taking, at any time, 1 or more’’; the books, papers, records, or assets of the 1992 (12 U.S.C. 4615) is amended— (C) by striking paragraph (6); enterprise, or any refusal to submit the (1) in subsection (a)— (D) by redesignating paragraph (5) as para- books, papers, records, or affairs of the en- (A) by redesignating paragraphs (1) and (2) graph (6); terprise, for inspection to any examiner or to as paragraphs (2) and (3), respectively; (E) by inserting after paragraph (4) the fol- any lawful agent of the Director. (B) by inserting before paragraph (2), as re- lowing: ‘‘(E) INABILITY TO MEET OBLIGATIONS.—The designated, the following: ‘‘(5) IMPROVEMENT OF MANAGEMENT.—Take enterprise is likely to be unable to pay its ‘‘(1) REQUIRED MONITORING.—The Director 1 or more of the following actions: obligations or meet the demands of its credi- shall— ‘‘(A) NEW ELECTION OF BOARD.—Order a new tors in the normal course of business. ‘‘(A) closely monitor the condition of any election for the board of directors of the en- ‘‘(F) LOSSES.—The enterprise has incurred undercapitalized enterprise; terprise. or is likely to incur losses that will deplete ‘‘(B) closely monitor compliance with the ‘‘(B) DISMISSAL OF DIRECTORS OR EXECUTIVE all or substantially all of its capital, and capital restoration plan, restrictions, and re- OFFICERS.—Require the enterprise to dismiss there is no reasonable prospect for the enter- quirements imposed on an undercapitalized from office any director or executive officer prise to become adequately capitalized (as enterprise under this section; and who had held office for more than 180 days defined in section 1364(a)(1)). ‘‘(C) periodically review the plan, restric- immediately before the date on which the ‘‘(G) VIOLATIONS OF LAW.—Any violation of tions, and requirements applicable to an enterprise became undercapitalized. Dis- any law or regulation, or any unsafe or un- undercapitalized enterprise to determine missal under this subparagraph shall not be sound practice or condition that is likely whether the plan, restrictions, and require- construed to be a removal pursuant to the to— ments are achieving the purpose of this sec- enforcement powers of the Director under ‘‘(i) cause insolvency or substantial dis- tion.’’; and section 1377. sipation of assets or earnings; or (C) by adding at the end the following: ‘‘(C) EMPLOY QUALIFIED EXECUTIVE OFFI- ‘‘(ii) weaken the condition of the enter- ‘‘(4) RESTRICTION OF ASSET GROWTH.—An CERS.—Require the enterprise to employ prise. undercapitalized enterprise shall not permit qualified executive officers (who, if the Di- ‘‘(H) CONSENT.—The enterprise, by resolu- its average total assets during any calendar rector so specifies, shall be subject to ap- tion of its board of directors or its share- quarter to exceed its average total assets proval by the Director).’’; and holders or members, consents to the appoint- during the preceding calendar quarter, un- (F) by adding at the end the following: ment. less— ‘‘(7) OTHER ACTION.—Require the enterprise ‘‘(I) UNDERCAPITALIZATION.—The enterprise ‘‘(A) the Director has accepted the capital to take any other action that the Director is undercapitalized or significantly under- restoration plan of the enterprise; determines will better carry out the purpose capitalized (as defined in section 1364(a)(3)), ‘‘(B) any increase in total assets is con- of this section than any of the other actions and— sistent with the capital restoration plan; and specified in this subsection.’’; and ‘‘(i) has no reasonable prospect of becom- ‘‘(C) the ratio of tangible equity to assets (3) by striking subsection (c) and inserting ing adequately capitalized; of the enterprise increases during the cal- the following: ‘‘(ii) fails to become adequately capital- endar quarter at a rate sufficient to enable ‘‘(c) RESTRICTION ON COMPENSATION OF EX- ized, as required by— the enterprise to become adequately capital- ECUTIVE OFFICERS.—An enterprise that is ‘‘(I) section 1365(a)(1) with respect to an en- ized within a reasonable time. classified as significantly undercapitalized in terprise; or ‘‘(5) PRIOR APPROVAL OF ACQUISITIONS AND accordance with section 1364 may not, with- ‘‘(II) section 1366(a)(1) with respect to a sig- NEW ACTIVITIES.—An undercapitalized enter- out prior written approval by the Director— nificantly undercapitalized enterprise; prise shall not, directly or indirectly, ac- ‘‘(1) pay any bonus to any executive offi- ‘‘(iii) fails to submit a capital restoration quire any interest in any entity or engage in cer; or plan acceptable to the Office within the time any new activity, unless— ‘‘(2) provide compensation to any executive prescribed under section 1369C; or ‘‘(A) the Director has accepted the capital officer at a rate exceeding the average rate ‘‘(iv) materially fails to implement a cap- restoration plan of the enterprise, the enter- of compensation of that officer (excluding ital restoration plan submitted and accepted prise is implementing the plan, and the Di- bonuses, stock options, and profit sharing) under section 1369C. rector determines that the proposed action is during the 12 calendar months preceding the ‘‘(J) CRITICAL UNDERCAPITALIZATION.—The consistent with and will further the achieve- calendar month in which the enterprise be- enterprise is critically undercapitalized, as ment of the plan; or came significantly undercapitalized.’’. defined in section 1364(a)(4).

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‘‘(K) MONEY LAUNDERING.—The Attorney spect to the enterprise and the assets of the ‘‘(iii) RULE OF CONSTRUCTION.—This sub- General notifies the Director in writing that enterprise; and section shall not be construed to limit any the enterprise has been found guilty of a ‘‘(ii) title to the books, records, and assets rights that the Office, in any capacity, might criminal offense under section 1956 or 1957 of of any other legal custodian of such enter- otherwise have under section 1317 or 1379B. title 18, United States Code, or section 5322 prise. ‘‘(J) INCIDENTAL POWERS.—The Office may, or 5324 of title 31, United States Code. ‘‘(B) OPERATE THE ENTERPRISE.—The Office as conservator or receiver— ‘‘(4) MANDATORY RECEIVERSHIP.— may, as conservator or receiver— ‘‘(i) exercise all powers and authorities ‘‘(A) IN GENERAL.—The Director shall ap- ‘‘(i) take over the assets of and operate the specifically granted to conservators or re- point the Office as receiver for an enterprise enterprise with all the powers of the share- ceivers, respectively, under this section, and if the Director determines, in writing, that— holders, the directors, and the officers of the such incidental powers as shall be necessary ‘‘(i) the assets of the enterprise are, and enterprise and conduct all business of the en- to carry out such powers; and during the preceding 30 calendar days have terprise; ‘‘(ii) take any action authorized by this been, less than the obligations of the enter- ‘‘(ii) collect all obligations and money due section, which the Office determines is in the prise to its creditors and others; or the enterprise; best interests of the enterprise or the Office. ‘‘(ii) the enterprise is not, and during the ‘‘(iii) perform all functions of the enter- ‘‘(K) OTHER PROVISIONS.— prise in the name of the enterprise which are preceding 30 calendar days has not been, gen- ‘‘(i) SHAREHOLDERS AND CREDITORS OF consistent with the appointment as conser- erally paying the debts of the enterprise FAILED ENTERPRISE.—Notwithstanding any (other than debts that are the subject of a vator or receiver; other provision of law, the appointment of ‘‘(iv) preserve and conserve the assets and bona fide dispute) as such debts become due. the Office as receiver for an enterprise pursu- property of the enterprise; and ‘‘(B) PERIODIC DETERMINATION REQUIRED FOR ant to paragraph (2) or (4) of subsection (a) ‘‘(v) provide by contract for assistance in CRITICALLY UNDERCAPITALIZED ENTERPRISE.— and its succession, by operation of law, to fulfilling any function, activity, action, or If an enterprise is critically undercapital- the rights, titles, powers, and privileges de- duty of the Office as conservator or receiver. ized, the Director shall make a determina- scribed in subsection (b)(2)(A) shall termi- ‘‘(C) FUNCTIONS OF OFFICERS, DIRECTORS, tion, in writing, as to whether the enterprise nate all rights and claims that the stock- meets the criteria specified in clause (i) or AND SHAREHOLDERS OF AN ENTERPRISE.—The Office may, by regulation or order, provide holders and creditors of the enterprise may (ii) of subparagraph (A)— have against the assets or charter of the en- ‘‘(i) not later than 30 calendar days after for the exercise of any function by any stockholder, director, or officer of any enter- terprise or the Office arising as a result of the enterprise initially becomes critically their status as stockholders or creditors, ex- undercapitalized; and prise for which the Office has been named conservator or receiver. cept for their right to payment, resolution, ‘‘(ii) at least once during each succeeding or other satisfaction of their claims, as per- 30-calendar day period. ‘‘(D) POWERS AS CONSERVATOR.—The Office may, as conservator, take such action as mitted under subsections (b)(9), (c), and (e). ‘‘(C) DETERMINATION NOT REQUIRED IF RE- may be— ‘‘(ii) ASSETS OF ENTERPRISE.—Notwith- CEIVERSHIP ALREADY IN PLACE.—Subpara- standing any other provision of law, for pur- graph (B) does not apply with respect to an ‘‘(i) necessary to put the enterprise in a sound and solvent condition; and poses of this section, the charter of an enter- enterprise in any period during which the Of- prise shall not be considered an asset of the fice serves as receiver for the enterprise. ‘‘(ii) appropriate to carry on the business of the enterprise and preserve and conserve enterprise. ‘‘(D) RECEIVERSHIP TERMINATES CON- the assets and property of the enterprise. ‘‘(3) AUTHORITY OF RECEIVER TO DETERMINE SERVATORSHIP.—The appointment of the Of- ‘‘(E) ADDITIONAL POWERS AS RECEIVER.—In CLAIMS.— fice as receiver of an enterprise under this any case in which the Office is acting as re- ‘‘(A) IN GENERAL.—The Office may, as re- section shall immediately terminate any ceiver, the Office shall place the enterprise ceiver, determine claims in accordance with conservatorship established for the enter- in liquidation and proceed to realize upon the requirements of this subsection and any prise under this title. the assets of the enterprise in such manner regulations prescribed under paragraph (4). ‘‘(5) JUDICIAL REVIEW.— as the Office deems appropriate, including ‘‘(B) NOTICE REQUIREMENTS.—The receiver, ‘‘(A) IN GENERAL.—If the Office is ap- through the sale of assets, the transfer of as- in any case involving the liquidation or pointed conservator or receiver under this sets to a limited-life enterprise established winding up of the affairs of a closed enter- section, the enterprise may, within 30 days under subsection (i), or the exercise of any prise, shall— of such appointment, bring an action in the other rights or privileges granted to the Of- ‘‘(i) promptly publish a notice to the credi- United States district court for the judicial fice under this paragraph. tors of the enterprise to present their claims, district in which the home office of such en- ‘‘(F) ORGANIZATION OF NEW ENTERPRISE.— together with proof, to the receiver by a date terprise is located, or in the United States The Office shall, as receiver for an enter- specified in the notice which shall be not less District Court for the District of Columbia, prise, organize a successor enterprise that than 90 days after the date of publication of for an order requiring the Office to remove will operate pursuant to subsection (i). such notice; and itself as conservator or receiver. ‘‘(G) TRANSFER OR SALE OF ASSETS AND LI- ‘‘(ii) republish such notice approximately 1 ‘‘(B) REVIEW.—Upon the filing of an action ABILITIES.—The Office may, as conservator month and 2 months, respectively, after the under subparagraph (A), the court shall, or receiver, transfer or sell any asset or li- date of publication under clause (i). upon the merits, dismiss such action or di- ability of the enterprise in default, and may ‘‘(C) MAILING REQUIRED.—The receiver shall rect the Office to remove itself as such condo so without any approval, assignment, or mail a notice similar to the notice published servator or receiver. consent with respect to such transfer or sale. under subparagraph (B)(i) at the time of such ‘‘(6) DIRECTORS NOT LIABLE FOR ACQUIESCING ‘‘(H) PAYMENT OF VALID OBLIGATIONS.—The publication to any creditor shown on the IN APPOINTMENT OF CONSERVATOR OR RE- Office, as conservator or receiver, shall, to books of the enterprise— CEIVER.—The members of the board of direc- the extent of proceeds realized from the per- ‘‘(i) at the last address of the creditor ap- tors of an enterprise shall not be liable to formance of contracts or sale of the assets of pearing in such books; or the shareholders or creditors of the enter- an enterprise, pay all valid obligations of the ‘‘(ii) upon discovery of the name and ad- prise for acquiescing in or consenting in good enterprise that are due and payable at the dress of a claimant not appearing on the faith to the appointment of the Office as con- time of the appointment of the Office as con- books of the enterprise, within 30 days after servator or receiver for that enterprise. servator or receiver, in accordance with the the discovery of such name and address. ‘‘(7) OFFICE NOT SUBJECT TO ANY OTHER FED- prescriptions and limitations of this section. ‘‘(4) RULEMAKING AUTHORITY RELATING TO ERAL AGENCY.—When acting as conservator ‘‘(I) SUBPOENA AUTHORITY.— DETERMINATION OF CLAIMS.—Subject to sub- or receiver, the Office shall not be subject to ‘‘(i) IN GENERAL.— section (c), the Director may prescribe regu- the direction or supervision of any other ‘‘(I) OFFICE AUTHORITY.—The Office may, as lations regarding the allowance or disallow- agency of the United States or any State in conservator or receiver, and for purposes of ance of claims by the receiver and providing the exercise of the rights, powers, and privi- carrying out any power, authority, or duty for administrative determination of claims leges of the Office. with respect to an enterprise (including de- and review of such determination. ‘‘(b) POWERS AND DUTIES OF THE OFFICE AS termining any claim against the enterprise ‘‘(5) PROCEDURES FOR DETERMINATION OF CONSERVATOR OR RECEIVER.— and determining and realizing upon any CLAIMS.— ‘‘(1) RULEMAKING AUTHORITY OF THE OF- asset of any person in the course of col- ‘‘(A) DETERMINATION PERIOD.— FICE.—The Office may prescribe such regula- lecting money due the enterprise), exercise ‘‘(i) IN GENERAL.—Before the end of the 180- tions as the Office determines to be appro- any power established under section 1348. day period beginning on the date on which priate regarding the conduct of ‘‘(II) APPLICABILITY OF LAW.—The provi- any claim against an enterprise is filed with conservatorships or receiverships. sions of section 1348 shall apply with respect the Office as receiver, the Office shall deter- ‘‘(2) GENERAL POWERS.— to the exercise of any power under this sub- mine whether to allow or disallow the claim ‘‘(A) SUCCESSOR TO ENTERPRISE.—The Office paragraph, in the same manner as such pro- and shall notify the claimant of any deter- shall, as conservator or receiver, and by op- visions apply under that section. mination with respect to such claim. eration of law, immediately succeed to— ‘‘(ii) SUBPOENA.—A subpoena or subpoena ‘‘(ii) EXTENSION OF TIME.—The period de- ‘‘(i) all rights, titles, powers, and privileges duces tecum may be issued under clause (i) scribed in clause (i) may be extended by a of the enterprise, and of any stockholder, of- only by, or with the written approval of, the written agreement between the claimant and ficer, or director of such enterprise with re- Director, or the designee of the Director. the Office.

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‘‘(iii) MAILING OF NOTICE SUFFICIENT.—The (and such court shall have jurisdiction to suit is not made, before the end of the 30-day requirements of clause (i) shall be deemed to hear such claim), before the end of the 60-day period beginning on the date on which such be satisfied if the notice of any determina- period beginning on the earlier of— action or motion may be filed under subpara- tion with respect to any claim is mailed to ‘‘(i) the end of the period described in paragraph (B), the claim shall be deemed to be the last address of the claimant which ap- graph (5)(A)(i) with respect to any claim disallowed as of the end of such period (other pears— against an enterprise for which the Office is than any portion of such claim which was al- ‘‘(I) on the books of the enterprise; receiver; or lowed by the receiver), such disallowance ‘‘(II) in the claim filed by the claimant; or ‘‘(ii) the date of any notice of disallowance shall be final, and the claimant shall have no ‘‘(III) in documents submitted in proof of of such claim pursuant to paragraph (5)(A)(i). further rights or remedies with respect to the claim. ‘‘(B) STATUTE OF LIMITATIONS.—A claim such claim. ‘‘(iv) CONTENTS OF NOTICE OF DISALLOW- shall be deemed to be disallowed (other than ‘‘(E) LEGAL EFFECT OF FILING.— ANCE.—If any claim filed under clause (i) is any portion of such claim which was allowed ‘‘(i) STATUTE OF LIMITATION TOLLED.—For disallowed, the notice to the claimant shall by the receiver), and such disallowance shall purposes of any applicable statute of limita- contain— be final, and the claimant shall have no fur- tions, the filing of a claim with the receiver ‘‘(I) a statement of each reason for the dis- ther rights or remedies with respect to such shall constitute a commencement of an ac- allowance; and claim, if the claimant fails, before the end of tion. ‘‘(II) the procedures available for obtaining the 60-day period described under subpara- ‘‘(ii) NO PREJUDICE TO OTHER ACTIONS.—Sub- agency review of the determination to dis- graph (A), to file suit on such claim (or con- ject to paragraph (10), the filing of a claim allow the claim or judicial determination of tinue an action commenced before the ap- with the receiver shall not prejudice any the claim. pointment of the receiver). right of the claimant to continue any action ‘‘(B) ALLOWANCE OF PROVEN CLAIM.—The re- ‘‘(7) REVIEW OF CLAIMS.— that was filed before the appointment of the ceiver shall allow any claim received on or ‘‘(A) OTHER REVIEW PROCEDURES.— receiver, subject to the determination of before the date specified in the notice pub- ‘‘(i) IN GENERAL.—The Office shall establish claims by the receiver. lished under paragraph (3)(B)(i) by the re- such alternative dispute resolution processes ‘‘(9) PAYMENT OF CLAIMS.— ceiver from any claimant which is proved to as may be appropriate for the resolution of ‘‘(A) IN GENERAL.—The receiver may, in the the satisfaction of the receiver. claims filed under paragraph (5)(A)(i). discretion of the receiver, and to the extent ‘‘(C) DISALLOWANCE OF CLAIMS FILED AFTER ‘‘(ii) CRITERIA.—In establishing alternative that funds are available from the assets of FILING PERIOD.—Claims filed after the date dispute resolution processes, the Office shall the enterprise, pay creditor claims, in such specified in the notice published under para- strive for procedures which are expeditious, manner and amounts as are authorized under graph (3)(B)(i), or the date specified under fair, independent, and low cost. this section, which are— paragraph (3)(C), shall be disallowed and ‘‘(iii) VOLUNTARY BINDING OR NONBINDING ‘‘(i) allowed by the receiver; such disallowance shall be final. PROCEDURES.—The Office may establish both ‘‘(ii) approved by the Office pursuant to a ‘‘(D) AUTHORITY TO DISALLOW CLAIMS.— binding and nonbinding processes under this final determination pursuant to paragraph ‘‘(i) IN GENERAL.—The receiver may dis- subparagraph, which may be conducted by (7) or (8); or allow any portion of any claim by a creditor any government or private party. All par- ‘‘(iii) determined by the final judgment of or claim of security, preference, or priority ties, including the claimant and the Office, any court of competent jurisdiction. which is not proved to the satisfaction of the must agree to the use of the process in a par- ‘‘(B) AGREEMENTS AGAINST THE INTEREST OF receiver. ticular case. THE OFFICE.—No agreement that tends to di- ‘‘(ii) PAYMENTS TO LESS THAN FULLY SE- ‘‘(B) CONSIDERATION OF INCENTIVES.—The minish or defeat the interest of the Office in CURED CREDITORS.—In the case of a claim of Office shall seek to develop incentives for any asset acquired by the Office as receiver a creditor against an enterprise which is se- claimants to participate in the alternative under this section shall be valid against the cured by any property or other asset of such dispute resolution process. Office unless such agreement is in writing enterprise, the receiver— ‘‘(8) EXPEDITED DETERMINATION OF and executed by an authorized officer or rep- ‘‘(I) may treat the portion of such claim CLAIMS.— resentative of the enterprise. which exceeds an amount equal to the fair ‘‘(A) ESTABLISHMENT REQUIRED.—The Office ‘‘(C) PAYMENT OF DIVIDENDS ON CLAIMS.— market value of such property or other asset shall establish a procedure for expedited re- The receiver may, in the sole discretion of as an unsecured claim against the enterprise; lief outside of the routine claims process es- the receiver, pay from the assets of the en- and tablished under paragraph (5) for claimants terprise dividends on proved claims at any ‘‘(II) may not make any payment with re- who— time, and no liability shall attach to the Of- spect to such unsecured portion of the claim, ‘‘(i) allege the existence of legally valid fice by reason of any such payment, for fail- other than in connection with the disposi- and enforceable or perfected security inter- ure to pay dividends to a claimant whose tion of all claims of unsecured creditors of ests in assets of any enterprise for which the claim is not proved at the time of any such the enterprise. Office has been appointed receiver; and payment. ‘‘(iii) EXCEPTIONS.—No provision of this ‘‘(ii) allege that irreparable injury will ‘‘(D) RULEMAKING AUTHORITY OF THE DIREC- paragraph shall apply with respect to— occur if the routine claims procedure is fol- TOR.—The Director may prescribe such rules, ‘‘(I) any extension of credit from any Fed- lowed. including definitions of terms, as the Direc- eral Reserve Bank or the United States ‘‘(B) DETERMINATION PERIOD.—Before the tor deems appropriate to establish a single Treasury; or end of the 90-day period beginning on the uniform interest rate for, or to make pay- ‘‘(II) any security interest in the assets of date on which any claim is filed in accord- ments of post-insolvency interest to credi- the enterprise securing any such extension of ance with the procedures established under tors holding proven claims against the re- credit. subparagraph (A), the Director shall— ceivership estates of any enterprise, fol- ‘‘(E) NO JUDICIAL REVIEW OF DETERMINATION ‘‘(i) determine— lowing satisfaction by the receiver of the PURSUANT TO SUBPARAGRAPH (d).—No court ‘‘(I) whether to allow or disallow such principal amount of all creditor claims. may review the determination of the Office claim; or ‘‘(10) SUSPENSION OF LEGAL ACTIONS.— under subparagraph (D) to disallow a claim. ‘‘(II) whether such claim should be deter- ‘‘(A) IN GENERAL.—After the appointment ‘‘(F) LEGAL EFFECT OF FILING.— mined pursuant to the procedures estab- of a conservator or receiver for an enter- ‘‘(i) STATUTE OF LIMITATION TOLLED.—For lished under paragraph (5); and prise, the conservator or receiver may, in purposes of any applicable statute of limita- ‘‘(ii) notify the claimant of the determina- any judicial action or proceeding to which tions, the filing of a claim with the receiver tion, and if the claim is disallowed, provide such enterprise is or becomes a party, re- shall constitute a commencement of an ac- a statement of each reason for the disallow- quest a stay for a period not to exceed— tion. ance and the procedure for obtaining Office ‘‘(i) 45 days, in the case of any conservator; ‘‘(ii) NO PREJUDICE TO OTHER ACTIONS.—Sub- review or judicial determination. and ject to paragraph (10), the filing of a claim ‘‘(C) PERIOD FOR FILING OR RENEWING ‘‘(ii) 90 days, in the case of any receiver. with the receiver shall not prejudice any SUIT.—Any claimant who files a request for ‘‘(B) GRANT OF STAY BY ALL COURTS RE- right of the claimant to continue any action expedited relief shall be permitted to file a QUIRED.—Upon receipt of a request by the which was filed before the date of the ap- suit, or to continue a suit filed before the conservator or receiver under subparagraph pointment of the receiver, subject to the de- date of appointment of the receiver, seeking (A) for a stay of any judicial action or pro- termination of claims by the receiver. a determination of the rights of the claimant ceeding in any court with jurisdiction of ‘‘(6) PROVISION FOR JUDICIAL DETERMINATION with respect to such security interest after such action or proceeding, the court shall OF CLAIMS.— the earlier of— grant such stay as to all parties. ‘‘(A) IN GENERAL.—The claimant may file ‘‘(i) the end of the 90-day period beginning ‘‘(11) ADDITIONAL RIGHTS AND DUTIES.— suit on a claim (or continue an action com- on the date of the filing of a request for expe- ‘‘(A) PRIOR FINAL ADJUDICATION.—The Of- menced before the appointment of the re- dited relief; or fice shall abide by any final unappealable ceiver) in the district or territorial court of ‘‘(ii) the date on which the Office denies judgment of any court of competent jurisdic- the United States for the district within the claim. tion which was rendered before the appoint- which the principal place of business of the ‘‘(D) STATUTE OF LIMITATIONS.—If an action ment of the Office as conservator or receiver. enterprise is located or the United States described under subparagraph (C) is not filed, ‘‘(B) RIGHTS AND REMEDIES OF CONSERVATOR District Court for the District of Columbia or the motion to renew a previously filed OR RECEIVER.—In the event of any appealable

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judgment, the Office as conservator or re- ‘‘(14) ACCOUNTING AND RECORDKEEPING RE- graph (16) without regard to the requirement ceiver— QUIREMENTS.— of such rule that the applicant show that the ‘‘(i) shall have all of the rights and rem- ‘‘(A) IN GENERAL.—The Office as conser- injury, loss, or damage is irreparable and im- edies available to the enterprise (before the vator or receiver shall, consistent with the mediate. appointment of such conservator or receiver) accounting and reporting practices and pro- ‘‘(18) TREATMENT OF CLAIMS ARISING FROM and the Office, including removal to Federal cedures established by the Office, maintain a BREACH OF CONTRACTS EXECUTED BY THE CON- court and all appellate rights; and full accounting of each conservatorship and SERVATOR OR RECEIVER.— ‘‘(ii) shall not be required to post any bond receivership or other disposition of an enter- ‘‘(A) IN GENERAL.—Notwithstanding any in order to pursue such remedies. prise in default. other provision of this subsection, any final ‘‘(C) NO ATTACHMENT OR EXECUTION.—No at- ‘‘(B) ANNUAL ACCOUNTING OR REPORT.—With and unappealable judgment for monetary tachment or execution may issue by any respect to each conservatorship or receiver- damages entered against the conservator or court upon assets in the possession of the re- ship, the Office shall make an annual ac- receiver for the breach of an agreement exe- ceiver, or upon the charter, of an enterprise counting or report available to the Board, cuted or approved in writing by the conser- for which the Office has been appointed re- the Comptroller General of the United vator or receiver after the date of its ap- ceiver. States, the Committee on Banking, Housing, pointment, shall be paid as an administra- and Urban Affairs of the Senate, and the ‘‘(D) LIMITATION ON JUDICIAL REVIEW.—Ex- tive expense of the conservator or receiver. cept as otherwise provided in this sub- Committee on Financial Services of the ‘‘(B) NO LIMITATION OF POWER.—Nothing in section, no court shall have jurisdiction House of Representatives. this paragraph shall be construed to limit ‘‘(C) AVAILABILITY OF REPORTS.—Any re- over— the power of the conservator or receiver to port prepared under subparagraph (B) shall ‘‘(i) any claim or action for payment from, exercise any rights under contract or law, in- be made available by the Office upon request or any action seeking a determination of cluding to terminate, breach, cancel, or oth- to any shareholder of an enterprise or any rights with respect to, the assets or charter erwise discontinue such agreement. member of the public. of any enterprise for which the Office has ‘‘(19) GENERAL EXCEPTIONS.— ‘‘(D) RECORDKEEPING REQUIREMENT.—After been appointed receiver; or ‘‘(A) LIMITATIONS.—The rights of the con- the end of the 6-year period beginning on the ‘‘(ii) any claim relating to any act or omis- servator or receiver appointed under this date on which the conservatorship or receiv- section shall be subject to the limitations on sion of such enterprise or the Office as re- ership is terminated by the Director, the Of- ceiver. the powers of a receiver under sections 402 fice may destroy any records of such enter- through 407 of the Federal Deposit Insurance ‘‘(E) DISPOSITION OF ASSETS.—In exercising prise which the Office, in the discretion of any right, power, privilege, or authority as Corporation Improvement Act of 1991 (12 the Office, determines to be unnecessary, un- U.S.C. 4402 through 4407). conservator or receiver in connection with less directed not to do so by a court of com- ‘‘(B) MORTGAGES HELD IN TRUST.— any sale or disposition of assets of an enter- petent jurisdiction or governmental agency, prise for which the Office has been appointed ‘‘(i) IN GENERAL.—Any mortgage, pool of or prohibited by law. mortgages, or interest in a pool of mortgages conservator or receiver, the Office shall con- ‘‘(15) FRAUDULENT TRANSFERS.— duct its operations in a manner which— held in trust, custodial, or agency capacity ‘‘(A) IN GENERAL.—The Office, as conser- by an enterprise for the benefit of any person ‘‘(i) maximizes the net present value re- vator or receiver, may avoid a transfer of other than the enterprise shall not be avail- turn from the sale or disposition of such as- any interest of an enterprise-affiliated party, able to satisfy the claims of creditors gen- sets; or any person determined by the conservator erally. ‘‘(ii) minimizes the amount of any loss re- or receiver to be a debtor of the enterprise, ‘‘(ii) HOLDING OF MORTGAGES.—Any mort- alized in the resolution of cases; and in property, or any obligation incurred by gage, pool of mortgages, or interest in a pool ‘‘(iii) ensures adequate competition and such party or person, that was made within of mortgages described in clause (i) shall be fair and consistent treatment of offerors. 5 years of the date on which the Office was held by the conservator or receiver ap- ‘‘(12) STATUTE OF LIMITATIONS FOR ACTIONS appointed conservator or receiver, if such pointed under this section for the beneficial BROUGHT BY CONSERVATOR OR RECEIVER.— party or person voluntarily or involuntarily owners of such mortgage, pool of mortgages, ‘‘(A) IN GENERAL.—Notwithstanding any made such transfer or incurred such liability or interest in accordance with the terms of provision of any contract, the applicable with the intent to hinder, delay, or defraud statute of limitations with regard to any ac- the enterprise, the Office, the conservator, or the agreement creating such trust, custodial, tion brought by the Office as conservator or receiver. or other agency arrangement. ‘‘(iii) LIABILITY OF CONSERVATOR OR RE- receiver shall be— ‘‘(B) RIGHT OF RECOVERY.—To the extent a ‘‘(i) in the case of any contract claim, the transfer is avoided under subparagraph (A), CEIVER.—The liability of the conservator or longer of— the conservator or receiver may recover, for receiver appointed under this section for ‘‘(I) the 6-year period beginning on the date the benefit of the enterprise, the property damages shall, in the case of any contingent on which the claim accrues; or transferred, or, if a court so orders, the value or unliquidated claim relating to the mort- ‘‘(II) the period applicable under State law; of such property (at the time of such trans- gages held in trust, be estimated in accord- and fer) from— ance with in the regulations of the Director. ‘‘(ii) in the case of any tort claim, the ‘‘(i) the initial transferee of such transfer ‘‘(c) PRIORITY OF EXPENSES AND UNSECURED longer of— or the enterprise-affiliated party or person CLAIMS.— ‘‘(I) the 3-year period beginning on the date for whose benefit such transfer was made; or ‘‘(1) IN GENERAL.—Unsecured claims on which the claim accrues; or ‘‘(ii) any immediate or mediate transferee against an enterprise, or the receiver there- ‘‘(II) the period applicable under State law. of any such initial transferee. for, that are proven to the satisfaction of the ‘‘(B) DETERMINATION OF THE DATE ON WHICH ‘‘(C) RIGHTS OF TRANSFEREE OR OBLIGEE.— receiver shall have priority in the following A CLAIM ACCRUES.—For purposes of subpara- The conservator or receiver may not recover order: graph (A), the date on which the statute of under subparagraph (B) from— ‘‘(A) Administrative expenses of the re- limitations begins to run on any claim de- ‘‘(i) any transferee that takes for value, in- ceiver. scribed in such subparagraph shall be the cluding satisfaction or securing of a present ‘‘(B) Any other general or senior liability later of— or antecedent debt, in good faith; or of the enterprise (which is not a liability de- ‘‘(i) the date of the appointment of the Of- ‘‘(ii) any immediate or mediate good faith scribed under subparagraph (C) or (D). fice as conservator or receiver; or transferee of such transferee. ‘‘(C) Any obligation subordinated to gen- ‘‘(ii) the date on which the cause of action ‘‘(D) RIGHTS UNDER THIS PARAGRAPH.—The eral creditors (which is not an obligation de- accrues. rights under this paragraph of the conser- scribed under subparagraph (D)). ‘‘(13) REVIVAL OF EXPIRED STATE CAUSES OF vator or receiver described under subpara- ‘‘(D) Any obligation to shareholders or ACTION.— graph (A) shall be superior to any rights of a members arising as a result of their status as ‘‘(A) IN GENERAL.—In the case of any tort trustee or any other party (other than any shareholder or members. claim described under subparagraph (B) for party which is a Federal agency) under title ‘‘(2) CREDITORS SIMILARLY SITUATED.—All which the statute of limitations applicable 11, United States Code. creditors that are similarly situated under under State law with respect to such claim ‘‘(16) ATTACHMENT OF ASSETS AND OTHER IN- paragraph (1) shall be treated in a similar has expired not more than 5 years before the JUNCTIVE RELIEF.—Subject to paragraph (17), manner, except that the receiver may take appointment of the Office as conservator or any court of competent jurisdiction may, at any action (including making payments) receiver, the Office may bring an action as the request of the conservator or receiver, that does not comply with this subsection, conservator or receiver on such claim with- issue an order in accordance with Rule 65 of if— out regard to the expiration of the statute of the Federal Rules of Civil Procedure, includ- ‘‘(A) the Director determines that such ac- limitations applicable under State law. ing an order placing the assets of any person tion is necessary to maximize the value of ‘‘(B) CLAIMS DESCRIBED.—A tort claim redesignated by the conservator or receiver the assets of the enterprise, to maximize the ferred to under subparagraph (A) is a claim under the control of the court, and appoint- present value return from the sale or other arising from fraud, intentional misconduct ing a trustee to hold such assets. disposition of the assets of the enterprise, or resulting in unjust enrichment, or inten- ‘‘(17) STANDARDS OF PROOF.—Rule 65 of the to minimize the amount of any loss realized tional misconduct resulting in substantial Federal Rules of Civil Procedure shall apply upon the sale or other disposition of the as- loss to the enterprise. with respect to any proceeding under para- sets of the enterprise assets; and

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00170 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.122 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2537 ‘‘(B) all creditors that are similarly situ- ‘‘(i) be entitled to the contractual rent ac- ‘‘(III) have no obligation under the con- ated under paragraph (1) receive not less cruing before the later of the date on tract other than the performance required than the amount provided in subsection which— under subclause (II). (e)(2). ‘‘(I) the notice of disaffirmance or repudi- ‘‘(C) ASSIGNMENT AND SALE ALLOWED.— ‘‘(3) DEFINITION.—As used in this sub- ation is mailed; or ‘‘(i) IN GENERAL.—No provision of this para- section, the term ‘administrative expenses of ‘‘(II) the disaffirmance or repudiation be- graph shall be construed as limiting the the receiver’ includes— comes effective, unless the lessor is in de- right of the conservator or receiver to assign ‘‘(A) the actual, necessary costs and ex- fault or breach of the terms of the lease; the contract described under subparagraph penses incurred by the receiver in preserving ‘‘(ii) have no claim for damages under any (A), and sell the property subject to the con- the assets of a failed enterprise or liqui- acceleration clause or other penalty provi- tract and the provisions of this paragraph. dating or otherwise resolving the affairs of a sion in the lease; and ‘‘(ii) NO LIABILITY AFTER ASSIGNMENT AND failed enterprise; and ‘‘(iii) have a claim for any unpaid rent, SALE.—If an assignment and sale described ‘‘(B) any obligations that the receiver de- subject to all appropriate offsets and de- under clause (i) is consummated, the conser- termines are necessary and appropriate to fenses, due as of the date of the appointment, vator or receiver shall have no further liabil- facilitate the smooth and orderly liquidation which shall be paid in accordance with this ity under the contract described under sub- or other resolution of the enterprise. subsection and subsection (e). paragraph (A), or with respect to the real ‘‘(5) LEASES UNDER WHICH THE ENTERPRISE property which was the subject of such con- ‘‘(d) PROVISIONS RELATING TO CONTRACTS IS THE LESSOR.— tract. ENTERED INTO BEFORE APPOINTMENT OF CON- ‘‘(A) IN GENERAL.—If the conservator or re- ‘‘(7) SERVICE CONTRACTS.— SERVATOR OR RECEIVER.— ceiver repudiates an unexpired written lease ‘‘(A) SERVICES PERFORMED BEFORE APPOINT- ‘‘(1) AUTHORITY TO REPUDIATE CONTRACTS.— of real property of the enterprise under MENT.—In the case of any contract for serv- In addition to any other rights a conservator which the enterprise is the lessor and the ices between any person and any enterprise or receiver may have, the conservator or re- lessee is not, as of the date of such repudi- for which the Office has been appointed con- ceiver for any enterprise may disaffirm or ation, in default, the lessee under such lease servator or receiver, any claim of such per- repudiate any contract or lease— may either— son for services performed before the ap- ‘‘(A) to which such enterprise is a party; ‘‘(i) treat the lease as terminated by such pointment of the conservator or receiver ‘‘(B) the performance of which the conser- repudiation; or shall be— vator or receiver, in its sole discretion, de- ‘‘(ii) remain in possession of the leasehold ‘‘(i) a claim to be paid in accordance with termines to be burdensome; and interest for the balance of the term of the subsections (b) and (e); and ‘‘(C) the disaffirmance or repudiation of lease, unless the lessee defaults under the ‘‘(ii) deemed to have arisen as of the date which the conservator or receiver deter- terms of the lease after the date of such re- on which the conservator or receiver was ap- mines, in its sole discretion, will promote pudiation. pointed. the orderly administration of the affairs of ‘‘(B) PROVISIONS APPLICABLE TO LESSEE RE- ‘‘(B) SERVICES PERFORMED AFTER APPOINT- the enterprise. MAINING IN POSSESSION.—If any lessee under a MENT AND PRIOR TO REPUDIATION.—If, in the ‘‘(2) TIMING OF REPUDIATION.—The conser- lease described under subparagraph (A) re- case of any contract for services described vator or receiver shall determine whether or mains in possession of a leasehold interest under subparagraph (A), the conservator or not to exercise the rights of repudiation under clause (ii) of subparagraph (A)— receiver accepts performance by the other under this subsection within a reasonable pe- ‘‘(i) the lessee— person before the conservator or receiver riod following such appointment. ‘‘(I) shall continue to pay the contractual makes any determination to exercise the ‘‘(3) CLAIMS FOR DAMAGES FOR REPUDI- rent pursuant to the terms of the lease after right of repudiation of such contract under ATION.— the date of the repudiation of such lease; and this section— ‘‘(A) IN GENERAL.—Except as otherwise pro- ‘‘(II) may offset against any rent payment ‘‘(i) the other party shall be paid under the vided under subparagraph (C) and paragraphs which accrues after the date of the repudi- terms of the contract for the services per- (4), (5), and (6), the liability of the conser- ation of the lease, and any damages which formed; and vator or receiver for the disaffirmance or re- accrue after such date due to the non- ‘‘(ii) the amount of such payment shall be pudiation of any contract pursuant to para- performance of any obligation of the enter- treated as an administrative expense of the graph (1) shall be— prise under the lease after such date; and conservatorship or receivership. ‘‘(i) limited to actual direct compensatory ‘‘(ii) the conservator or receiver shall not ‘‘(C) ACCEPTANCE OF PERFORMANCE NO BAR damages; and be liable to the lessee for any damages aris- TO SUBSEQUENT REPUDIATION.—The accept- ‘‘(ii) determined as of— ing after such date as a result of the repudi- ance by the conservator or receiver of serv- ‘‘(I) the date of the appointment of the ation, other than the amount of any offset ices referred to under subparagraph (B) in conservator or receiver; or allowed under clause (i)(II). connection with a contract described in such ‘‘(II) in the case of any contract or agree- ‘‘(6) CONTRACTS FOR THE SALE OF REAL subparagraph shall not affect the right of the ment referred to in paragraph (8), the date of PROPERTY.— conservator or receiver to repudiate such the disaffirmance or repudiation of such con- ‘‘(A) IN GENERAL.—If the conservator or re- contract under this section at any time after tract or agreement. ceiver repudiates any contract for the sale of such performance. ‘‘(B) NO LIABILITY FOR OTHER DAMAGES.— real property and the purchaser of such real ‘‘(8) CERTAIN QUALIFIED FINANCIAL CON- For purposes of subparagraph (A), the term property under such contract is in posses- TRACTS.— ‘actual direct compensatory damages’ shall sion, and is not, as of the date of such repudi- ‘‘(A) RIGHTS OF PARTIES TO CONTRACTS.— not include— ation, in default, such purchaser may ei- Subject to paragraphs (9) and (10), and not- ‘‘(i) punitive or exemplary damages; ther— withstanding any other provision of this ‘‘(ii) damages for lost profits or oppor- ‘‘(i) treat the contract as terminated by title (other than subsection (b)(9)(B) of this tunity; or such repudiation; or section), any other Federal law, or the law of ‘‘(iii) damages for pain and suffering. ‘‘(ii) remain in possession of such real any State, no person shall be stayed or pro- ‘‘(C) MEASURE OF DAMAGES FOR REPUDI- property. hibited from exercising— ATION OF FINANCIAL CONTRACTS.—In the case ‘‘(B) PROVISIONS APPLICABLE TO PURCHASER ‘‘(i) any right of that person to cause the of any qualified financial contract or agree- REMAINING IN POSSESSION.—If any purchaser termination, liquidation, or acceleration of ment to which paragraph (8) applies, com- of real property under any contract de- any qualified financial contract with an en- pensatory damages shall be— scribed under subparagraph (A) remains in terprise that arises upon the appointment of ‘‘(i) deemed to include normal and reason- possession of such property under clause (ii) the Office as receiver for such enterprise at able costs of cover or other reasonable meas- of subparagraph (A)— any time after such appointment; ures of damages utilized in the industries for ‘‘(i) the purchaser— ‘‘(ii) any right under any security agree- such contract and agreement claims; and ‘‘(I) shall continue to make all payments ment or arrangement or other credit en- ‘‘(ii) paid in accordance with this sub- due under the contract after the date of the hancement relating to one or more qualified section and subsection (e), except as other- repudiation of the contract; and financial contracts; or wise specifically provided in this section. ‘‘(II) may offset against any such payments ‘‘(iii) any right to offset or net out any ter- ‘‘(4) LEASES UNDER WHICH THE ENTERPRISE any damages which accrue after such date mination value, payment amount, or other IS THE LESSEE.— due to the nonperformance (after such date) transfer obligation arising under or in con- ‘‘(A) IN GENERAL.—If the conservator or re- of any obligation of the enterprise under the nection with 1 or more contracts and agree- ceiver disaffirms or repudiates a lease under contract; and ments described in clause (i), including any which the enterprise was the lessee, the con- ‘‘(ii) the conservator or receiver shall— master agreement for such contracts or servator or receiver shall not be liable for ‘‘(I) not be liable to the purchaser for any agreements. any damages (other than damages deter- damages arising after such date as a result of ‘‘(B) APPLICABILITY OF OTHER PROVISIONS.— mined under subparagraph (B)) for the the repudiation, other than the amount of Subsection (b)(10) shall apply in the case of disaffirmance or repudiation of such lease. any offset allowed under clause (i)(II); any judicial action or proceeding brought ‘‘(B) PAYMENTS OF RENT.—Notwithstanding ‘‘(II) deliver title to the purchaser in ac- against any receiver referred to under sub- subparagraph (A), the lessor under a lease to cordance with the provisions of the contract; paragraph (A), or the enterprise for which which that subparagraph applies shall— and such receiver was appointed, by any party to

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and this clause, except that the master agree- vator or receiver of an enterprise, may not ‘‘(X) means any security agreement or ar- ment shall be considered to be a forward con- avoid any transfer of money or other prop- rangement or other credit enhancement re- tract under this clause only with respect to erty in connection with any qualified finan- lated to any agreement or transaction re- each agreement or transaction under the cial contract with an enterprise. ferred to in this clause, including any guar- master agreement that is referred to in sub- ‘‘(ii) EXCEPTION FOR CERTAIN TRANSFERS.— antee or reimbursement obligation in con- clause (I), (II), or (III); or Clause (i) shall not apply to any transfer of nection with any agreement or transaction ‘‘(V) any security agreement or arrange- money or other property in connection with referred to in this clause. ment or other credit enhancement related to any qualified financial contract with an en- ‘‘(iii) COMMODITY CONTRACT.—The term any agreement or transaction referred to in terprise if the Office determines that the ‘commodity contract’ means— subclause (I), (II), (III), or (IV), including any transferee had actual intent to hinder, delay, ‘‘(I) with respect to a futures commission guarantee or reimbursement obligation in or defraud such enterprise, the creditors of merchant, a contract for the purchase or sale connection with any agreement or trans- such enterprise, or any conservator or re- of a commodity for future delivery on, or action referred to in any such subclause. ceiver appointed for such enterprise. subject to the rules of, a contract market or ‘‘(v) REPURCHASE AGREEMENT.—The term ‘‘(D) CERTAIN CONTRACTS AND AGREEMENTS board of trade; ‘repurchase agreement’ (including a reverse DEFINED.—In this subsection the following ‘‘(II) with respect to a foreign futures com- repurchase agreement)— definitions shall apply: mission merchant, a foreign future; ‘‘(I) means an agreement, including related ‘‘(i) QUALIFIED FINANCIAL CONTRACT.—The ‘‘(III) with respect to a leverage trans- terms, which provides for the transfer of one term ‘qualified financial contract’ means action merchant, a leverage transaction; any securities contract, commodity con- ‘‘(IV) with respect to a clearing organiza- or more certificates of deposit, mortgage-re- tract, forward contract, repurchase agree- tion, a contract for the purchase or sale of a lated securities (as that term is defined in ment, swap agreement, and any similar commodity for future delivery on, or subject section 3 of the Securities Exchange Act of agreement that the Office determines by reg- to the rules of, a contract market or board of 1934), mortgage loans, interests in mortgage- ulation, resolution, or order to be a qualified trade that is cleared by such clearing organi- related securities or mortgage loans, eligible financial contract for purposes of this para- zation, or commodity option traded on, or bankers’ acceptances, qualified foreign gov- graph. subject to the rules of, a contract market or ernment securities (defined for purposes of ‘‘(ii) SECURITIES CONTRACT.—The term ‘se- board of trade that is cleared by such clear- this clause as a security that is a direct obli- curities contract’— ing organization; gation of, or that is fully guaranteed by, the ‘‘(I) means a contract for the purchase, ‘‘(V) with respect to a commodity options central government of a member of the Orga- sale, or loan of a security, a certificate of de- dealer, a commodity option; nization for Economic Cooperation and De- posit, a mortgage loan, or any interest in a ‘‘(VI) any other agreement or transaction velopment, as determined by regulation or mortgage loan, a group or index of securi- that is similar to any agreement or trans- order adopted by the appropriate Federal ties, certificates of deposit, or mortgage action referred to in this clause; banking authority), or securities that are di- loans or interests therein (including any in- ‘‘(VII) any combination of the agreements rect obligations of, or that are fully guaran- terest therein or based on the value thereof) or transactions referred to in this clause; teed by, the United States or any agency of or any option on any of the foregoing, in- ‘‘(VIII) any option to enter into any agree- the United States against the transfer of cluding any option to purchase or sell any ment or transaction referred to in this funds by the transferee of such certificates of such security, certificate of deposit, mort- clause; deposit, eligible bankers’ acceptances, secu- gage loan, interest, group or index, or op- ‘‘(IX) a master agreement that provides for rities, mortgage loans, or interests with a sition, and including any repurchase or reverse an agreement or transaction referred to in multaneous agreement by such transferee to repurchase transaction on any such security, subclause (I), (II), (III), (IV), (V), (VI), (VII), transfer to the transferor thereof certificates certificate of deposit, mortgage loan, inter- or (VIII), together with all supplements to of deposit, eligible bankers’ acceptances, se- est, group or index, or option; any such master agreement, without regard curities, mortgage loans, or interests as de- ‘‘(II) does not include any purchase, sale, to whether the master agreement provides scribed above, at a date certain not later or repurchase obligation under a participa- for an agreement or transaction that is not than 1 year after such transfers or on de- tion in a commercial mortgage loan, unless a commodity contract under this clause, ex- mand, against the transfer of funds, or any the Office determines by regulation, resolu- cept that the master agreement shall be con- other similar agreement; tion, or order to include any such agreement sidered to be a commodity contract under ‘‘(II) does not include any repurchase obli- within the meaning of that term; this clause only with respect to each agree- gation under a participation in a commercial ‘‘(III) means any option entered into on a ment or transaction under the master agree- mortgage loan, unless the Office determines national securities exchange relating to for- ment that is referred to in subclause (I), (II), by regulation, resolution, or order to include eign currencies; (III), (IV), (V), (VI), (VII), or (VIII); or any such participation within the meaning ‘‘(IV) means the guarantee by or to any se- ‘‘(X) any security agreement or arrange- of such term; curities clearing agency of any settlement of ment or other credit enhancement related to ‘‘(III) means any combination of agree- cash, securities, certificates of deposit, any agreement or transaction referred to in ments or transactions referred to in sub- mortgage loans or interests therein, group or this clause, including any guarantee or reim- clauses (I) and (IV); index of securities, certificates of deposit, or bursement obligation in connection with any ‘‘(IV) means any option to enter into any mortgage loans or interests therein (includ- agreement or transaction referred to in this agreement or transaction referred to in sub- ing any interest therein or based on the clause. clause (I) or (III); value thereof) or option on any of the fore- ‘‘(iv) FORWARD CONTRACT.—The term ‘for- ‘‘(V) means a master agreement that pro- going, including any option to purchase or ward contract’ means— vides for an agreement or transaction re- sell any such security, certificate of deposit, ‘‘(I) a contract (other than a commodity ferred to in subclause (I), (III), or (IV), to- mortgage loan, interest, group or index, or contract) for the purchase, sale, or transfer gether with all supplements to any such option; of a commodity or any similar good, article, master agreement, without regard to wheth- ‘‘(V) means any margin loan; service, right, or interest which is presently er the master agreement provides for an ‘‘(VI) means any other agreement or trans- or in the future becomes the subject of deal- agreement or transaction that is not a repur- action that is similar to any agreement or ing in the forward contract trade, or product chase agreement under this clause, except transaction referred to in this clause; or byproduct thereof, with a maturity date that the master agreement shall be consid- ‘‘(VII) means any combination of the more than 2 days after the date on which the ered to be a repurchase agreement under this agreements or transactions referred to in contract is entered into, including a repur- subclause only with respect to each agree- this clause; chase transaction, reverse repurchase trans- ment or transaction under the master agree- ‘‘(VIII) means any option to enter into any action, consignment, lease, swap, hedge ment that is referred to in subclause (I), agreement or transaction referred to in this transaction, deposit, loan, option, allocated (III), or (IV); and clause; transaction, unallocated transaction, or any ‘‘(VI) means any security agreement or ar- ‘‘(IX) means a master agreement that pro- other similar agreement; rangement or other credit enhancement re- vides for an agreement or transaction re- ‘‘(II) any combination of agreements or lated to any agreement or transaction referred to in subclause (I), (III), (IV), (V), (VI), transactions referred to in subclauses (I) and ferred to in subclause (I), (III), (IV), or (V), (VII), or (VIII), together with all supple- (III); including any guarantee or reimbursement ments to any such master agreement, with- ‘‘(III) any option to enter into any agree- obligation in connection with any agreement out regard to whether the master agreement ment or transaction referred to in subclause or transaction referred to in any such sub- provides for an agreement or transaction (I) or (II); clause.

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‘‘(vi) SWAP AGREEMENT.—The term ‘swap ‘‘(E) CERTAIN PROTECTIONS IN EVENT OF AP- lowing the date of the appointment of the re- agreement’ means— POINTMENT OF CONSERVATOR.—Notwith- ceiver in the case of a receivership, or the ‘‘(I) any agreement, including the terms standing any other provision of this section, business day following such transfer in the and conditions incorporated by reference in any other Federal law, or the law of any case of a conservatorship, if— any such agreement, which is an interest State (other than paragraph (10) of this sub- ‘‘(i) the conservator or receiver for an en- rate swap, option, future, or forward agree- section and subsection (b)(9)(B)), no person terprise in default makes any transfer of the ment, including a rate floor, rate cap, rate shall be stayed or prohibited from exer- assets and liabilities of such enterprise; and collar, cross-currency rate swap, and basis cising— ‘‘(ii) such transfer includes any qualified swap; a spot, same day-tomorrow, tomorrow- ‘‘(i) any right such person has to cause the financial contract. next, forward, or other foreign exchange or termination, liquidation, or acceleration of ‘‘(B) CERTAIN RIGHTS NOT ENFORCEABLE.— precious metals agreement; a currency swap, any qualified financial contract with an en- ‘‘(i) RECEIVERSHIP.—A person who is a option, future, or forward agreement; an eq- terprise in a conservatorship based upon a party to a qualified financial contract with uity index or equity swap, option, future, or default under such financial contract which an enterprise may not exercise any right forward agreement; a debt index or debt is enforceable under applicable noninsol- that such person has to terminate, liquidate, swap, option, future, or forward agreement; a vency law; or net such contract under paragraph (8)(A) total return, credit spread or credit swap, op- ‘‘(ii) any right under any security agree- of this subsection or under section 403 or 404 tion, future, or forward agreement; a comment or arrangement or other credit en- of the Federal Deposit Insurance Corporation modity index or commodity swap, option, fu- hancement relating to 1 or more such quali- Improvement Act of 1991, solely by reason of ture, or forward agreement; or a weather fied financial contracts; or or incidental to the appointment of a re- swap, weather derivative, or weather option; ‘‘(iii) any right to offset or net out any ter- ceiver for the enterprise (or the insolvency ‘‘(II) any agreement or transaction that is mination values, payment amounts, or other or financial condition of the enterprise for similar to any other agreement or trans- transfer obligations arising under or in con- which the receiver has been appointed)— action referred to in this clause and that is nection with such qualified financial con- ‘‘(I) until 5:00 p.m. (Eastern Standard of a type that has been, is presently, or in tracts. Time) on the business day following the date the future becomes, the subject of recurrent ‘‘(F) CLARIFICATION.—No provision of law of the appointment of the receiver; or dealings in the swap markets (including shall be construed as limiting the right or terms and conditions incorporated by ref- power of the Office, or authorizing any court ‘‘(II) after the person has received notice erence in such agreement) and that is a for- or agency to limit or delay in any manner, that the contract has been transferred pursu- ward, swap, future, or option on one or more the right or power of the Office to transfer ant to paragraph (9)(A). rates, currencies, commodities, equity secu- any qualified financial contract in accord- ‘‘(ii) CONSERVATORSHIP.—A person who is a rities or other equity instruments, debt secu- ance with paragraphs (9) and (10), or to dis- party to a qualified financial contract with rities or other debt instruments, quan- affirm or repudiate any such contract in ac- an enterprise may not exercise any right titative measures associated with an occur- cordance with subsection (d)(1). that such person has to terminate, liquidate, rence, extent of an occurrence, or contin- ‘‘(G) WALKAWAY CLAUSES NOT EFFECTIVE.— or net such contract under paragraph (8)(E) gency associated with a financial, commer- ‘‘(i) IN GENERAL.—Notwithstanding the proof this subsection or under section 403 or 404 cial, or economic consequence, or economic visions of subparagraphs (A) and (E), and sec- of the Federal Deposit Insurance Corporation or financial indices or measures of economic tions 403 and 404 of the Federal Deposit In- Improvement Act of 1991, solely by reason of or financial risk or value; surance Corporation Improvement Act of or incidental to the appointment of a conser- ‘‘(III) any combination of agreements or 1991, no walkaway clause shall be enforceable vator for the enterprise (or the insolvency or transactions referred to in this clause; in a qualified financial contract of an enter- financial condition of the enterprise for ‘‘(IV) any option to enter into any agree- prise in default. which the conservator has been appointed). ment or transaction referred to in this ‘‘(ii) WALKAWAY CLAUSE DEFINED.—For pur- ‘‘(iii) NOTICE.—For purposes of this para- clause; poses of this subparagraph, the term graph, the conservator or receiver of an en- ‘‘(V) a master agreement that provides for ‘walkaway clause’ means a provision in a terprise shall be deemed to have notified a an agreement or transaction referred to in qualified financial contract that, after cal- person who is a party to a qualified financial subclause (I), (II), (III), or (IV), together with culation of a value of a party’s position or an contract with such enterprise, if the conser- all supplements to any such master agree- amount due to or from 1 of the parties in ac- vator or receiver has taken steps reasonably ment, without regard to whether the master cordance with its terms upon termination, calculated to provide notice to such person agreement contains an agreement or trans- liquidation, or acceleration of the qualified by the time specified in subparagraph (A). action that is not a swap agreement under financial contract, either does not create a ‘‘(C) BUSINESS DAY DEFINED.—For purposes this clause, except that the master agree- payment obligation of a party or extin- of this paragraph, the term ‘business day’ ment shall be considered to be a swap agree- guishes a payment obligation of a party in means any day other than any Saturday, ment under this clause only with respect to whole or in part solely because of the status Sunday, or any day on which either the New each agreement or transaction under the of such party as a nondefaulting party. York Stock Exchange or the Federal Reserve master agreement that is referred to in sub- ‘‘(9) TRANSFER OF QUALIFIED FINANCIAL CON- Bank of New York is closed. clause (I), (II), (III), or (IV); and TRACTS.—In making any transfer of assets or ‘‘(11) DISAFFIRMANCE OR REPUDIATION OF ‘‘(VI) any security agreement or arrange- liabilities of an enterprise in default which QUALIFIED FINANCIAL CONTRACTS.—In exer- ment or other credit enhancement related to includes any qualified financial contract, the cising the rights of disaffirmance or repudi- any agreements or transactions referred to conservator or receiver for such enterprise ation of a conservator or receiver with rein subclause (I), (II), (III), (IV), or (V), in- shall either— spect to any qualified financial contract to cluding any guarantee or reimbursement ob- ‘‘(A) transfer to 1 person— which an enterprise is a party, the conser- ligation in connection with any agreement ‘‘(i) all qualified financial contracts be- vator or receiver for such institution shall or transaction referred to in any such sub- tween any person (or any affiliate of such either— clause. person) and the enterprise in default; ‘‘(A) disaffirm or repudiate all qualified fi- ‘‘(vii) TREATMENT OF MASTER AGREEMENT ‘‘(ii) all claims of such person (or any affil- nancial contracts between— AS ONE AGREEMENT.—Any master agreement iate of such person) against such enterprise ‘‘(i) any person or any affiliate of such per- for any contract or agreement described in under any such contract (other than any son; and any preceding clause of this subparagraph claim which, under the terms of any such ‘‘(ii) the enterprise in default; or (or any master agreement for such master contract, is subordinated to the claims of ‘‘(B) disaffirm or repudiate none of the agreement or agreements), together with all general unsecured creditors of such enter- qualified financial contracts referred to in supplements to such master agreement, shall prise); subparagraph (A) (with respect to such per- be treated as a single agreement and a single ‘‘(iii) all claims of such enterprise against son or any affiliate of such person). qualified financial contract. If a master such person (or any affiliate of such person) ‘‘(12) CERTAIN SECURITY INTERESTS NOT agreement contains provisions relating to under any such contract; and AVOIDABLE.—No provision of this subsection agreements or transactions that are not ‘‘(iv) all property securing, or any other shall be construed as permitting the avoid- themselves qualified financial contracts, the credit enhancement for any contract de- ance of any legally enforceable or perfected master agreement shall be deemed to be a scribed in clause (i), or any claim described security interest in any of the assets of any qualified financial contract only with rein clause (ii) or (iii) under any such contract; enterprise, except where such an interest is spect to those transactions that are them- or taken in contemplation of the insolvency of selves qualified financial contracts. ‘‘(B) transfer none of the financial con- the enterprise, or with the intent to hinder, ‘‘(viii) TRANSFER.—The term ‘transfer’ tracts, claims, or property referred to under delay, or defraud the enterprise or the credi- means every mode, direct or indirect, abso- subparagraph (A) (with respect to such per- tors of such enterprise. lute or conditional, voluntary or involun- son and any affiliate of such person). ‘‘(13) AUTHORITY TO ENFORCE CONTRACTS.— tary, of disposing of or parting with property ‘‘(10) NOTIFICATION OF TRANSFER.— ‘‘(A) IN GENERAL.—Notwithstanding any or with an interest in property, including re- ‘‘(A) IN GENERAL.—The conservator or re- provision of a contract providing for termi- tention of title as a security interest and ceiver shall notify any person that is a party nation, default, acceleration, or exercise of foreclosure of the equity of redemption of to a contract or transfer by 5:00 p.m. (East- rights upon, or solely by reason of, insol- the enterprise. ern Standard Time) on the business day fol- vency or the appointment of, or the exercise

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of rights or powers by, a conservator or re- ‘‘(A) acting as conservator or receiver of ‘‘(B) INTERESTS IN AND ASSETS AND OBLIGA- ceiver, the conservator or receiver may en- such enterprise; or TIONS OF ENTERPRISE IN DEFAULT.—Notwith- force any contract, other than a contract for ‘‘(B) acting based upon a suit, claim, or standing subparagraph (A) or any other pro- liability insurance for a director or officer, cause of action purchased from, assigned by, vision of law— or a contract or an enterprise bond, entered or otherwise conveyed by such receiver or ‘‘(i) a limited-life enterprise shall assume, into by the enterprise. conservator. acquire, or succeed to the assets or liabilities ‘‘(B) CERTAIN RIGHTS NOT AFFECTED.—No ‘‘(2) ACTIONS ADDRESSED.—Paragraph (1) of an enterprise only to the extent that such provision of this paragraph may be construed applies in any civil action for gross neg- assets or liabilities are transferred by the Of- as impairing or affecting any right of the ligence, including any similar conduct or fice to the limited-life enterprise in accord- conservator or receiver to enforce or recover conduct that demonstrates a greater dis- ance with, and subject to the restrictions set under a liability insurance contract for an regard of a duty of care than gross neg- forth in, paragraph (1)(B); officer or director, or enterprise bond under ligence, including intentional tortious con- ‘‘(ii) a limited-life enterprise shall not as- other applicable law. duct, as such terms are defined and deter- sume, acquire, or succeed to any obligation ‘‘(C) CONSENT REQUIREMENT.— mined under applicable State law. that an enterprise for which a receiver has ‘‘(i) IN GENERAL.—Except as otherwise pro- ‘‘(3) NO LIMITATION.—Nothing in this sub- been appointed may have to any shareholder vided under this section, no person may exer- section shall impair or affect any right of of the enterprise that arises as a result of cise any right or power to terminate, accel- the Office under other applicable law. the status of that person as a shareholder of erate, or declare a default under any con- ‘‘(h) DAMAGES.—In any proceeding related the enterprise; and tract to which an enterprise is a party, or to to any claim against a director, officer, em- ‘‘(iii) no shareholder or creditor of an en- obtain possession of or exercise control over ployee, agent, attorney, accountant, ap- terprise shall have any right or claim any property of the enterprise, or affect any praiser, or any other party employed by or against the charter of the enterprise once contractual rights of the enterprise, without providing services to an enterprise, recover- the Office has been appointed receiver for the consent of the conservator or receiver, as able damages determined to result from the the enterprise and a limited-life enterprise improvident or otherwise improper use or inappropriate, for a period of— succeeds to the charter pursuant to subpara- vestment of any assets of the enterprise ‘‘(I) 45 days after the date of appointment graph (A). shall include principal losses and appropriate of a conservator; or ‘‘(C) LIMITED-LIFE ENTERPRISE TREATED AS interest. ‘‘(II) 90 days after the date of appointment BEING IN DEFAULT FOR CERTAIN PURPOSES.—A ‘‘(i) LIMITED-LIFE ENTERPRISES.— limited-life enterprise shall be treated as an of a receiver. ‘‘(1) ORGANIZATION.— ‘‘(ii) EXCEPTIONS.—This subparagraph shall enterprise in default at such times and for ‘‘(A) PURPOSE.—The Office, as receiver ap- such purposes as the Office may, in its dis- not— pointed pursuant to subsection (a), shall, in ‘‘(I) apply to a contract for liability insur- cretion, determine. the case of an enterprise, organize a limited- ‘‘(D) MANAGEMENT.—Upon its establish- ance for an officer or director; life enterprise with respect to that enter- ‘‘(II) apply to the rights of parties to cer- ment, a limited-life enterprise shall be under prise in accordance with this subsection. the management of a board of directors contain qualified financial contracts under sub- ‘‘(B) AUTHORITIES.—Upon the creation of a section (d)(8); and sisting of not fewer than 5 nor more than 10 limited-life enterprise under subparagraph members appointed by the Office. ‘‘(III) be construed as permitting the con- (A), the limited-life enterprise may— ‘‘(E) BYLAWS.—The board of directors of a servator or receiver to fail to comply with ‘‘(i) assume such liabilities of the enter- limited-life enterprise shall adopt such by- otherwise enforceable provisions of such con- prise that is in default or in danger of de- laws as may be approved by the Office. tracts. fault as the Office may, in its discretion, de- ‘‘(3) CAPITAL STOCK.— ‘‘(14) SAVINGS CLAUSE.—The meanings of termine to be appropriate, except that the li- ‘‘(A) NO REQUIREMENT.—The Office is not terms used in this subsection are applicable abilities assumed shall not exceed the required to pay capital stock into a limited- for purposes of this subsection only, and amount of assets purchased or transferred life enterprise or to issue any capital stock shall not be construed or applied so as to from the enterprise to the limited-life enter- on behalf of a limited-life enterprise estab- challenge or affect the characterization, def- prise; lished under this subsection. inition, or treatment of any similar terms ‘‘(ii) purchase such assets of the enterprise ‘‘(B) AUTHORITY.—If the Director deter- under any other statute, regulation, or rule, that is in default, or in danger of default as mines that such action is advisable, the Of- including the Gramm-Leach-Bliley Act, the the Office may, in its discretion, determine fice may cause capital stock or other securi- Legal Certainty for Bank Products Act of to be appropriate; and ties of a limited-life enterprise established 2000, the securities laws (as that term is de- ‘‘(iii) perform any other temporary func- with respect to an enterprise to be issued fined in section 3(a)(47) of the Securities Ex- tion which the Office may, in its discretion, and offered for sale, in such amounts and on change Act of 1934), and the Commodity Ex- prescribe in accordance with this section. such terms and conditions as the Director change Act. ‘‘(2) CHARTER AND ESTABLISHMENT.— may determine, in the discretion of the Di- ‘‘(e) VALUATION OF CLAIMS IN DEFAULT.— ‘‘(A) TRANSFER OF CHARTER.— rector. ‘‘(1) IN GENERAL.—Notwithstanding any ‘‘(i) FANNIE MAE.—If the Office is appointed ‘‘(4) INVESTMENTS.—Funds of a limited-life other provision of Federal law or the law of as receiver for the Federal National Mort- enterprise shall be kept on hand in cash, in- any State, and regardless of the method gage Association, the limited-life enterprise vested in obligations of the United States or which the Office determines to utilize with established under this subsection with re- obligations guaranteed as to principal and respect to an enterprise in default or in dan- spect to such enterprise shall, by operation interest by the United States, or deposited ger of default, including transactions author- of law and immediately upon its organiza- with the Office, or any Federal reserve bank. ized under subsection (i), this subsection tion— ‘‘(5) EXEMPT TAX STATUS.—Notwith- shall govern the rights of the creditors of ‘‘(I) succeed to the charter of the Federal standing any other provision of Federal or such enterprise. National Mortgage Association, as set forth State law, a limited-life enterprise, its fran- ‘‘(2) MAXIMUM LIABILITY.—The maximum in the Federal National Mortgage Associa- chise, property, and income shall be exempt liability of the Office, acting as receiver or tion Charter Act; and from all taxation now or hereafter imposed in any other capacity, to any person having ‘‘(II) thereafter operate in accordance with, by the United States, by any territory, de- a claim against the receiver or the enterprise and subject to, such charter, this Act, and pendency, or possession thereof, or by any for which such receiver is appointed shall be any other provision of law to which the Fed- State, county, municipality, or local taxing not more than the amount that such claim- eral National Mortgage Association is sub- authority. ant would have received if the Office had liq- ject, except as otherwise provided in this ‘‘(6) WINDING UP.— uidated the assets and liabilities of the en- subsection. ‘‘(A) IN GENERAL.—Subject to subpara- terprise without exercising the authority of ‘‘(ii) FREDDIE MAC.—If the Office is ap- graphs (B) and (C), not later than 2 years the Office under subsection (i). pointed as receiver for the Federal Home after the date of its organization, the Office ‘‘(f) LIMITATION ON COURT ACTION.—Except Loan Mortgage Corporation, the limited-life shall wind up the affairs of a limited-life en- as provided in this section or at the request enterprise established under this subsection terprise. of the Director, no court may take any ac- with respect to such enterprise shall, by op- ‘‘(B) EXTENSION.—The Director may, in the tion to restrain or affect the exercise of pow- eration of law and immediately upon its or- discretion of the Director, extend the status ers or functions of the Office as a conser- ganization— of a limited-life enterprise for 3 additional 1- vator or a receiver. ‘‘(I) succeed to the charter of the Federal year periods. ‘‘(g) LIABILITY OF DIRECTORS AND OFFI- Home Loan Mortgage Corporation, as set ‘‘(C) TERMINATION OF STATUS AS LIMITED- CERS.— forth in the Federal Home Loan Mortgage LIFE ENTERPRISE.— ‘‘(1) IN GENERAL.—A director or officer of Corporation Charter Act; and ‘‘(i) IN GENERAL.—Upon the sale by the Of- an enterprise may be held personally liable ‘‘(II) thereafter operate in accordance with, fice of 80 percent or more of the capital stock for monetary damages in any civil action de- and subject to, such charter, this Act, and of a limited-life enterprise, as defined in scribed in paragraph (2) brought by, on be- any other provision of law to which the Fed- clause (iv), to 1 or more persons (other than half of, or at the request or direction of the eral Home Loan Mortgage Corporation is the Office)— Office, and prosecuted wholly or partially for subject, except as otherwise provided in this ‘‘(I) the status of the limited-life enter- the benefit of the Office— subsection. prise as such shall terminate; and

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‘‘(II) the enterprise shall cease to be a lim- ‘‘(A) IN GENERAL.—Each limited-life enter- taining of credit or the issuance of debt by a ited-life enterprise for purposes of this sub- prise created under this subsection shall limited-life enterprise that is secured by a section. have all corporate powers of, and be subject senior or equal lien on property of the lim- ‘‘(ii) DIVESTITURE OF REMAINING STOCK, IF to the same provisions of law as, the enter- ited-life enterprise that is subject to a lien ANY.— prise in default or in danger of default to (other than mortgages that collateralize the ‘‘(I) IN GENERAL.—Not later than 1 year which it relates, except that— mortgage-backed securities issued or guar- after the date on which the status of a lim- ‘‘(i) the Office may— anteed by an enterprise) only if— ited-life enterprise is terminated pursuant to ‘‘(I) remove the directors of a limited-life ‘‘(I) the limited-life enterprise is unable to clause (i), the Office shall sell to 1 or more enterprise; otherwise obtain such credit or issue such persons (other than the Office) any remain- ‘‘(II) fix the compensation of members of debt; and ing capital stock of the former limited-life the board of directors and senior manage- ‘‘(II) there is adequate protection of the in- enterprise. ment, as determined by the Office in its dis- terest of the holder of the lien on the prop- ‘‘(II) EXTENSION AUTHORIZED.—The Director cretion, of a limited-life enterprise; and erty with respect to which such senior or may extend the period referred to in sub- ‘‘(III) indemnify the representatives for equal lien is proposed to be granted. clause (I) for not longer than an additional 2 purposes of paragraph (1)(B), and the direc- ‘‘(12) BURDEN OF PROOF.—In any hearing years, if the Director determines that such tors, officers, employees, and agents of a under this subsection, the Director has the action would be in the public interest. limited-life enterprise on such terms as the burden of proof on the issue of adequate pro- ‘‘(iii) SAVINGS CLAUSE.—Notwithstanding Office determines to be appropriate; and tection. any provision of law, other than clause (ii), ‘‘(ii) the board of directors of a limited-life ‘‘(13) AFFECT ON DEBTS AND LIENS.—The re- the Office shall not be required to sell the enterprise— versal or modification on appeal of an au- capital stock of an enterprise or a limited- ‘‘(I) shall elect a chairperson who may also thorization under this subsection to obtain life enterprise established with respect to an serve in the position of chief executive offi- credit or issue debt, or of a grant under this enterprise. cer, except that such person shall not serve section of a priority or a lien, does not affect ‘‘(iv) APPLICABILITY.—This subparagraph either as chairperson or as chief executive the validity of any debt so issued, or any pri- applies only with respect to a limited-life en- officer without the prior approval of the Of- ority or lien so granted, to an entity that ex- terprise that is established with respect to fice; and tended such credit in good faith, whether or an enterprise. ‘‘(II) may appoint a chief executive officer not such entity knew of the pendency of the ‘‘(7) TRANSFER OF ASSETS AND LIABILITIES.— who is not also the chairperson, except that appeal, unless such authorization and the ‘‘(A) IN GENERAL.— such person shall not serve as chief executive issuance of such debt, or the granting of such ‘‘(i) TRANSFER OF ASSETS AND LIABILITIES.— officer without the prior approval of the Of- priority or lien, were stayed pending appeal. The Office, as receiver, may transfer any as- fice. ‘‘(j) OTHER OFFICE EXEMPTIONS.— sets and liabilities of an enterprise in de- ‘‘(B) STAY OF JUDICIAL ACTION.—Any judi- ‘‘(1) APPLICABILITY.—The provisions of this fault, or in danger of default, to the limited- cial action to which a limited-life enterprise subsection shall apply with respect to the Of- life enterprise in accordance with and sub- becomes a party by virtue of its acquisition fice in any case in which the Office is acting ject to the restrictions of paragraph (1). of any assets or assumption of any liabilities as a conservator or a receiver. ‘‘(ii) SUBSEQUENT TRANSFERS.—At any time of an enterprise in default shall be stayed ‘‘(2) TAXATION.—The Office, including its after the establishment of a limited-life en- from further proceedings for a period of not franchise, its capital, reserves, and surplus, terprise, the Office, as receiver, may transfer longer than 45 days, at the request of the and its income, shall be exempt from all tax- any assets and liabilities of the enterprise in limited-life enterprise. Such period may be ation imposed by any State, county, munici- default, or in danger of default, as the Office modified upon the consent of all parties. pality, or local taxing authority, except that may, in its discretion, determine to be ap- ‘‘(10) NO FEDERAL STATUS.— any real property of the Office shall be sub- propriate in accordance with and subject to ‘‘(A) AGENCY STATUS.—A limited-life enter- ject to State, territorial, county, municipal, the restrictions of paragraph (1). prise is not an agency, establishment, or in- or local taxation to the same extent accord- ‘‘(iii) EFFECTIVE WITHOUT APPROVAL.—The strumentality of the United States. ing to its value as other real property is transfer of any assets or liabilities of an en- ‘‘(B) EMPLOYEE STATUS.—Representatives taxed, except that, notwithstanding the fail- terprise in default or in danger of default to for purposes of paragraph (1)(B), interim di- ure of any person to challenge an assessment a limited-life enterprise shall be effective rectors, directors, officers, employees, or under State law of the value of such prop- without any further approval under Federal agents of a limited-life enterprise are not, erty, and the tax thereon, shall be deter- or State law, assignment, or consent with re- solely by virtue of service in any such capac- mined as of the period for which such tax is spect thereto. ity, officers or employees of the United imposed. ‘‘(iv) EQUITABLE TREATMENT OF SIMILARLY States. Any employee of the Office or of any ‘‘(3) PROPERTY PROTECTION.—No property of SITUATED CREDITORS.—The Office shall treat Federal instrumentality who serves at the the Office shall be subject to levy, attach- all creditors of an enterprise in default or in request of the Office as a representative for ment, garnishment, foreclosure, or sale with- danger of default that are similarly situated purposes of paragraph (1)(B), interim direc- out the consent of the Office, nor shall any under subsection (c)(1) in a similar manner tor, director, officer, employee, or agent of a involuntary lien attach to the property of in exercising the authority of the Office limited-life enterprise shall not— the Office. under this subsection to transfer any assets ‘‘(i) solely by virtue of service in any such ‘‘(4) PENALTIES AND FINES.—The Office or liabilities of the enterprise to the limited- capacity lose any existing status as an offi- shall not be liable for any amounts in the na- life enterprise established with respect to cer or employee of the United States for pur- ture of penalties or fines, including those such enterprise, except that the Office may poses of title 5, United States Code, or any arising from the failure of any person to pay take actions (including making payments) other provision of law; or any real property, personal property, pro- that do not comply with this clause, if— ‘‘(ii) receive any salary or benefits for serv- bate, or recording tax or any recording or fil- ‘‘(I) the Director determines that such ac- ice in any such capacity with respect to a ing fees when due. tions are necessary to maximize the value of limited-life enterprise in addition to such ‘‘(k) PROHIBITION OF CHARTER REVOCA- the assets of the enterprise, to maximize the salary or benefits as are obtained through TION.—In no case may the receiver appointed present value return from the sale or other employment with the Office or such Federal pursuant to this section revoke, annul, or disposition of the assets of the enterprise, or instrumentality. terminate the charter of an enterprise.’’. to minimize the amount of any loss realized ‘‘(11) AUTHORITY TO OBTAIN CREDIT.— (b) TECHNICAL AND CONFORMING AMEND- upon the sale or other disposition of the as- ‘‘(A) IN GENERAL.—A limited-life enterprise MENTS.—The Federal Housing Enterprises Fi- sets of the enterprise; and may obtain unsecured credit and issue unse- nancial Safety and Soundness Act of 1992 (12 ‘‘(II) all creditors that are similarly situ- cured debt. U.S.C. 4501 et seq.) is amended by striking ated under subsection (c)(1) receive not less ‘‘(B) INABILITY TO OBTAIN CREDIT.—If a lim- sections 1369, 1369A, and 1369B (12 U.S.C. 4619, than the amount provided in subsection ited-life enterprise is unable to obtain unse- 4620, and 4621). (e)(2). cured credit or issue unsecured debt, the Di- Subtitle D—Enforcement Actions ‘‘(v) LIMITATION ON TRANSFER OF LIABIL- rector may authorize the obtaining of credit SEC. 841. CEASE-AND-DESIST PROCEEDINGS. ITIES.—Notwithstanding any other provision or the issuance of debt by the limited-life en- Section 1371 of the Federal Housing Enter- of law, the aggregate amount of liabilities of terprise— prises Financial Safety and Soundness Act of an enterprise that are transferred to, or as- ‘‘(i) with priority over any or all of the ob- 1992 (12 U.S.C. 4631) is amended— sumed by, a limited-life enterprise may not ligations of the limited-life enterprise; (1) by striking subsections (a) and (b) and exceed the aggregate amount of assets of the ‘‘(ii) secured by a lien on property of the inserting the following: enterprise that are transferred to, or pur- limited-life enterprise that is not otherwise ‘‘(a) ISSUANCE FOR UNSAFE OR UNSOUND chased by, the limited-life enterprise. subject to a lien; or PRACTICES AND VIOLATIONS.—If, in the opin- ‘‘(8) REGULATIONS.—The Office may pro- ‘‘(iii) secured by a junior lien on property ion of the Director, an enterprise or any en- mulgate such regulations as the Office deter- of the limited-life enterprise that is subject terprise-affiliated party is engaging or has mines to be necessary or appropriate to im- to a lien. engaged, or the Director has reasonable plement this subsection. ‘‘(C) LIMITATIONS.— cause to believe that the enterprise or any ‘‘(9) POWERS OF LIMITED-LIFE ENTER- ‘‘(i) IN GENERAL.—The Director, after no- enterprise-affiliated party is about to en- PRISES.— tice and a hearing, may authorize the ob- gage, in an unsafe or unsound practice in

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00175 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.123 S03APPT1 ccoleman on PRODPC75 with SENATE S2542 CONGRESSIONAL RECORD — SENATE April 3, 2008 conducting the business of the enterprise or the proceedings conducted pursuant to sec- soundness of such enterprise or business in- the Finance Facility, or is violating or has tions 1371 and 1373, the Director may— stitution. violated, or the Director has reasonable ‘‘(A) issue a temporary order requiring ‘‘(b) SUSPENSION ORDER.— cause to believe is about to violate, a law, that enterprise or enterprise-affiliated party ‘‘(1) SUSPENSION OR PROHIBITION AUTHOR- rule, regulation, or order, or any condition to cease and desist from any such violation ITY.—If the Director serves written notice imposed in writing by the Director in con- or practice; and under subsection (a) upon a party subject to nection with the granting of any application ‘‘(B) require that enterprise or enterprise- that subsection (a), the Director may, by or other request by the enterprise or the Fi- affiliated party to take affirmative action to order, suspend or remove such party from of- nance Facility or any written agreement en- prevent or remedy such insolvency, dissipa- fice, or prohibit such party from further par- tered into with the Director, the Director tion, condition, or prejudice pending comple- ticipation in any manner in the conduct of may issue and serve upon the enterprise or tion of such proceedings. the affairs of the enterprise, if the Director— enterprise-affiliated party a notice of ‘‘(2) ADDITIONAL REQUIREMENTS.—An order ‘‘(A) determines that such action is nec- charges in respect thereof. issued under paragraph (1) may include any essary for the protection of the enterprise; ‘‘(b) ISSUANCE FOR UNSATISFACTORY RAT- requirement authorized under subsection and ING.—If an enterprise receives, in its most re- 1371(d).’’; ‘‘(B) serves such party with written notice cent report of examination, a less-than-satis- (2) in subsection (b), by striking ‘‘or direc- of the order. factory rating for credit risk, market risk, tor’’ and inserting ‘‘director, or enterprise- ‘‘(2) EFFECTIVE PERIOD.—Any order issued operations, or corporate governance, the Di- affiliated party’’; and under this subsection— rector may (if the deficiency is not cor- (3) in subsection (d), by striking ‘‘or direc- ‘‘(A) shall become effective upon service; rected) deem the enterprise to be engaging in tor’’ each place that term appears and in- and an unsafe or unsound practice for purposes of serting ‘‘director, or enterprise-affiliated ‘‘(B) unless a court issues a stay of such subsection (a).’’; party’’; and order under subsection (g), shall remain in (2) in subsection (c)— (4) in subsection (e)— effect and enforceable until— (A) in paragraph (1), by inserting before (A) by striking ‘‘request the Attorney Gen- ‘‘(i) the date on which the Director dis- the period at the end the following: ‘‘, unless eral of the United States to’’; and misses the charges contained in the notice the party served with a notice of charges (B) by striking ‘‘or may, under the direc- served under subsection (a) with respect to shall appear at the hearing personally or by tion and control of the Attorney General, such party; or a duly authorized representative, the party bring such action’’. ‘‘(ii) the effective date of an order issued shall be deemed to have consented to the under subsection (b). SEC. 843. REMOVAL AND PROHIBITION AUTHOR- issuance of the cease-and-desist order’’; and ‘‘(3) COPY OF ORDER.—If the Director issues ITY. (B) in paragraph (2)— an order under subsection (b) to any party, (i) by striking ‘‘or director’’ and inserting (a) IN GENERAL.—Part 1 of subtitle C of the the Director shall serve a copy of such order ‘‘director, or enterprise-affiliated party’’; Federal Housing Enterprises Financial Safe- on any enterprise with which such party is and ty and Soundness Act of 1992 (12 U.S.C. 4631 affiliated at the time such order is issued. (ii) by inserting ‘‘or enterprise-affiliated et seq.) is amended— ‘‘(c) NOTICE, HEARING, AND ORDER.— party’’ before ‘‘consents’’; (1) by redesignating sections 1377 through ‘‘(1) NOTICE.—A notice under subsection (a) (3) in each of subsections (c), (d), and (e), 1379B (12 U.S.C. 4637–4641) as sections 1379 of the intention of the Director to issue an by striking ‘‘conduct’’ each place that term through 1379D, respectively; and order under this section shall contain a appears and inserting ‘‘practice’’; (2) by inserting after section 1376 (12 U.S.C. statement of the facts constituting grounds (4) in subsection (d)— 4636) the following: for such action, and shall fix a time and (A) in the matter preceding paragraph (1)— ‘‘SEC. 1377. REMOVAL AND PROHIBITION AU- place at which a hearing will be held on such (i) by striking ‘‘or director’’ and inserting THORITY. action. ‘‘director, or enterprise-affiliated party’’; ‘‘(a) AUTHORITY TO ISSUE ORDER.— ‘‘(2) TIMING OF HEARING.—A hearing shall (ii) by inserting ‘‘to require a enterprise or ‘‘(1) IN GENERAL.—The Director may serve be fixed for a date not earlier than 30 days, enterprise-affiliated party’’ after ‘‘includes upon a party described in paragraph (2), or nor later than 60 days, after the date of serv- the authority’’; any officer, director, or management of the ice of notice under subsection (a), unless an (B) in paragraph (1)— Finance Facility a written notice of the in- earlier or a later date is set by the Director (i) by striking ‘‘to require an executive of- tention of the Director to suspend or remove at the request of— ficer or a director to’’; and such party from office, or prohibit any fur- ‘‘(A) the party receiving such notice, and (ii) by striking ‘‘loss’’ and all that follows ther participation by such party, in any good cause is shown; or through ‘‘person’’ and inserting ‘‘loss, if’’; manner, in the conduct of the affairs of the ‘‘(B) the Attorney General of the United (iii) in subparagraph (A), by inserting enterprise. States. ‘‘such entity or party or finance facility’’ be- ‘‘(2) APPLICABILITY.—A party described in ‘‘(3) CONSENT.—Unless the party that is the fore ‘‘was’’; and this paragraph is an enterprise-affiliated subject of a notice delivered under sub- (iv) by striking subparagraph (B) and in- party or any officer, director, or manage- section (a) appears at the hearing in person serting the following: ment of the Finance Facility, if the Director or by a duly authorized representative, such ‘‘(B) the violation or practice involved a determines that— party shall be deemed to have consented to reckless disregard for the law or any applica- ‘‘(A) that party, officer, or director has, di- the issuance of an order under this section. ble regulations or prior order of the Direc- rectly or indirectly— ‘‘(4) ISSUANCE OF ORDER OF SUSPENSION.— tor;’’; and ‘‘(i) violated— The Director may issue an order under this (C) in paragraph (4), by inserting ‘‘loan or’’ ‘‘(I) any law or regulation; section, as the Director may deem appro- before ‘‘asset’’; ‘‘(II) any cease-and-desist order which has priate, if— (5) in subsection (e), by inserting ‘‘or enter- become final; ‘‘(A) a party is deemed to have consented prise-affiliated party’’— ‘‘(III) any condition imposed in writing by to the issuance of an order under paragraph (A) before ‘‘or any executive’’; and the Director in connection with the grant of (3); or (B) before the period at the end; and any application or other request by such en- ‘‘(B) upon the record made at the hearing, (6) in subsection (f)— terprise; or the Director finds that any of the grounds (A) by striking ‘‘enterprise’’ and inserting ‘‘(IV) any written agreement between such specified in the notice have been established. ‘‘enterprise, finance facility,’’; and enterprise and the Director; ‘‘(5) EFFECTIVENESS OF ORDER.—Any order (B) by striking ‘‘or director’’ and inserting ‘‘(ii) engaged or participated in any unsafe issued under paragraph (4) shall become ef- ‘‘director, or enterprise-affiliated party’’. or unsound practice in connection with any fective at the expiration of 30 days after the SEC. 842. TEMPORARY CEASE-AND-DESIST PRO- enterprise or business institution; or date of service upon the relevant enterprise CEEDINGS. ‘‘(iii) committed or engaged in any act, and party (except in the case of an order Section 1372 of the Federal Housing Enter- omission, or practice which constitutes a issued upon consent under paragraph (3), prises Financial Safety and Soundness Act of breach of such party’s fiduciary duty; which shall become effective at the time 1992 (12 U.S.C. 4632) is amended— ‘‘(B) by reason of the violation, practice, or specified therein). Such order shall remain (1) by striking subsection (a) and inserting breach described in subparagraph (A)— effective and enforceable except to such ex- the following: ‘‘(i) such enterprise or business institution tent as it is stayed, modified, terminated, or ‘‘(a) GROUNDS FOR ISSUANCE.— has suffered or will probably suffer financial set aside by action of the Director or a re- ‘‘(1) IN GENERAL.—If the Director deter- loss or other damage; or viewing court. mines that the actions specified in the notice ‘‘(ii) such party has received financial gain ‘‘(d) PROHIBITION OF CERTAIN SPECIFIC AC- of charges served upon an enterprise or any or other benefit; and TIVITIES.—Any person subject to an order enterprise-affiliated party pursuant to sec- ‘‘(C) the violation, practice, or breach de- issued under this section shall not— tion 1371(a), or the continuation thereof, is scribed in subparagraph (A)— ‘‘(1) participate in any manner in the con- likely to cause insolvency or significant dis- ‘‘(i) involves personal dishonesty on the duct of the affairs of any enterprise or the sipation of assets or earnings of that enter- part of such party; or Finance Facility; prise, or is likely to weaken the condition of ‘‘(ii) demonstrates willful or continuing ‘‘(2) solicit, procure, transfer, attempt to that enterprise prior to the completion of disregard by such party for the safety or transfer, vote, or attempt to vote any proxy,

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consent, or authorization with respect to graph (A) is finally disposed of, or until ter- ‘‘(C) DETERMINATION.—Not later than 60 any voting rights in any enterprise; minated by the Director. days after the date of a hearing under sub- ‘‘(3) violate any voting agreement pre- ‘‘(2) REMOVAL OR PROHIBITION.— paragraph (B), the Director shall notify the viously approved by the Director; or ‘‘(A) IN GENERAL.—If a judgment of convic- enterprise-affiliated party whether the sus- ‘‘(4) vote for a director, or serve or act as tion or an agreement to enter a pretrial di- pension or prohibition from participation in an enterprise-affiliated party of an enter- version or other similar program is entered any manner in the conduct of the affairs of prise or as an officer or director of the Fi- against an enterprise-affiliated party in con- the enterprise will be continued, terminated, nance Facility. nection with a crime described in paragraph or otherwise modified, or whether the order ‘‘(e) INDUSTRY-WIDE PROHIBITION.— (1)(A), at such time as such judgment is not removing such party from office or prohib- ‘‘(1) IN GENERAL.—Except as provided in subject to further appellate review, the Di- iting such party from further participation paragraph (2), any person who, pursuant to rector may, if continued service or participa- in any manner in the conduct of the affairs an order issued under this section, has been tion by such party may pose a threat to the of the enterprise will be rescinded or other- removed or suspended from office in an en- enterprise or impair public confidence in the wise modified. Such notification shall con- terprise or the Finance Facility, or prohib- enterprise, issue and serve upon such party tain a statement of the basis for any adverse ited from participating in the conduct of the an order removing such party from office or decision of the Director. affairs of an enterprise or the Finance Facil- prohibiting such party from further partici- ‘‘(5) RULES.—The Director is authorized to ity, may not, while such order is in effect, pation in any manner in the conduct of the prescribe such rules as may be necessary to continue or commence to hold any office in, affairs of the enterprise without the prior carry out this subsection.’’. written consent of the Director. or participate in any manner in the conduct (b) CONFORMING AMENDMENTS.— ‘‘(B) PROVISIONS APPLICABLE TO ORDER.— of the affairs of, any enterprise or the Fi- (1) SAFETY AND SOUNDNESS ACT.—Subtitle C ‘‘(i) COPY.—A copy of any order under sub- nance Facility. of title XIII of the Federal Housing Enter- paragraph (A) shall be served upon the rel- ‘‘(2) EXCEPTION IF DIRECTOR PROVIDES WRIT- prises Financial Safety and Soundness Act of evant enterprise, at which time the enter- TEN CONSENT.—If, on or after the date on 1992 (42 U.S.C. 4501 et seq.) is amended— prise-affiliated party who is subject to the which an order is issued under this section (A) in section 1317(f), by striking ‘‘section order (if a director or an officer) shall cease which removes or suspends from office any 1379B’’ and inserting ‘‘section 1379D’’; to be a director or officer of such enterprise. party, or prohibits such party from partici- (B) in section 1373(a)— ‘‘(ii) EFFECT OF ACQUITTAL.—A finding of pating in the conduct of the affairs of an en- (i) in paragraph (1), by striking ‘‘or 1376(c)’’ not guilty or other disposition of the charge terprise or the Finance Facility, such party and inserting ‘‘, 1376(c), or 1377’’; receives the written consent of the Director, shall not preclude the Director from instituting proceedings after such finding or dis- (ii) in paragraph (2), by inserting ‘‘or 1377’’ the order shall, to the extent of such con- after’’1371’’; and sent, cease to apply to such party with re- position to remove a party from office or to prohibit further participation in the affairs (iii) in paragraph (4), by inserting ‘‘or respect to the enterprise or such Finance Fa- moval or prohibition’’ after ‘‘cease and de- cility described in the written consent. Any of an enterprise pursuant to subsection (a) or (b). sist’’; and such consent shall be publicly disclosed. (C) in section 1374(a)— ‘‘(iii) EFFECTIVE PERIOD.—Unless termi- ‘‘(3) VIOLATION OF PARAGRAPH (1) TREATED (i) by striking ‘‘or 1376’’ and inserting ‘‘, AS VIOLATION OF ORDER.—Any violation of nated by the Director, any notice of suspension or order of removal issued under this 1376, or 1377’’; and paragraph (1) by any person who is subject to (ii) by striking ‘‘such section’’ and insert- an order issued under subsection (h) shall be subsection shall remain effective and outstanding until the completion of any hearing ing ‘‘this title’’. treated as a violation of the order. (2) FANNIE MAE CHARTER ACT.—Section ‘‘(f) APPLICABILITY.—This section shall or appeal authorized under paragraph (4). ‘‘(3) AUTHORITY OF REMAINING BOARD MEM- 308(b) of the Federal National Mortgage As- only apply to a person who is an individual, sociation Charter Act (12 U.S.C. 1723(b)) is unless the Director specifically finds that it BERS.— amended in the second sentence, by striking should apply to a corporation, firm, or other ‘‘(A) IN GENERAL.—If at any time, because ‘‘The’’ and inserting ‘‘Except to the extent business entity. of the suspension of 1 or more directors pur- that action under section 1377 of the Federal ‘‘(g) STAY OF SUSPENSION AND PROHIBITION suant to this section, there shall be on the Housing Enterprises Financial Safety and OF ENTERPRISE-AFFILIATED PARTY.—Not board of directors of an enterprise less than later than 10 days after the date on which a quorum of directors not so suspended, all Soundness Act of 1992 temporarily results in any enterprise-affiliated party has been sus- powers and functions vested in or exercisable a lesser number, the’’. pended from office or prohibited from par- by such board shall vest in and be exer- (3) FREDDIE MAC CHARTER ACT.—Section ticipation in the conduct of the affairs of an cisable by the director or directors on the 303(a)(2)(A) of the Federal Home Loan Mort- enterprise under this section, such party board not so suspended, until such time as gage Corporation Act (12 U.S.C. 1452(a)(2)(A)) may apply to the United States District there shall be a quorum of the board of direc- is amended, in the second sentence, by strik- Court for the District of Columbia, or the tors. ing ‘‘The’’ and inserting ‘‘Except to the ex- United States district court for the judicial ‘‘(B) APPOINTMENT OF TEMPORARY DIREC- tent action under section 1377 of the Federal district in which the headquarters of the en- TORS.—If all of the directors of an enterprise Housing Enterprises Financial Safety and terprise is located, for a stay of such suspen- are suspended pursuant to this section, the Soundness Act of 1992 temporarily results in sion or prohibition pending the completion Director shall appoint persons to serve tem- a lesser number, the’’. of the administrative proceedings pursuant porarily as directors pending the termi- SEC. 844. ENFORCEMENT AND JURISDICTION. to subsection (c). The court shall have juris- nation of such suspensions, or until such (a) IN GENERAL.—Section 1375 of the Fed- diction to stay such suspension or prohibi- time as those who have been suspended cease eral Housing Enterprises Financial Safety tion. to be directors of the enterprise and their re- and Soundness Act of 1992 (12 U.S.C. 4635) is ‘‘(h) SUSPENSION OR REMOVAL OF ENTER- spective successors take office. amended— PRISE-AFFILIATED PARTY CHARGED WITH FEL- ‘‘(4) HEARING REGARDING CONTINUED PAR- (1) by striking subsection (a) and inserting ONY.— TICIPATION.— the following: ‘‘(1) SUSPENSION OR PROHIBITION.— ‘‘(A) IN GENERAL.—Not later than 30 days ‘‘(A) IN GENERAL.—Whenever any enter- after the date of service of any notice of sus- ‘‘(a) ENFORCEMENT.—The Director may, in prise-affiliated party is charged in any infor- pension or order of removal issued pursuant the discretion of the Director, apply to the mation, indictment, or complaint, with the to paragraph (1) or (2), the enterprise-affili- United States District Court for the District commission of or participation in a crime in- ated party may request in writing an oppor- of Columbia, or the United States district volving dishonesty or breach of trust which tunity to appear before the Director to show court within the jurisdiction of which the is punishable by imprisonment for a term ex- that the continued service or participation headquarters of the enterprise is located, for ceeding 1 year under Federal or State law, in the conduct of the affairs of the enterprise the enforcement of any effective and out- the Director may, if continued service or by such party does not, or is not likely to, standing notice, order, or subpoena issued participation by such party may pose a pose a threat to the interests of the enter- under this title, or request that the Attorney threat to the enterprise or impair public con- prise, or threaten to impair public con- General of the United States bring such an fidence in the enterprise, by written notice fidence in the enterprise. action. Such court shall have jurisdiction served upon such party, suspend such party ‘‘(B) TIMING AND FORM OF HEARING.—Upon and power to order and require compliance from office or prohibit such party from fur- receipt of a request for a hearing under sub- with such notice, order, or subpoena.’’; and ther participation in any manner in the con- paragraph (A), the Director shall fix a time (2) in subsection (b)— duct of the affairs of any enterprise. (not later than 30 days after the date of re- (A) by striking ‘‘section 1371, 1372, or 1376 ‘‘(B) PROVISIONS APPLICABLE TO NOTICE.— ceipt of such request, unless extended at the or’’; ‘‘(i) COPY.—A copy of any notice under sub- request of such party) and place at which the (B) by inserting ‘‘subtitle C, or section paragraph (A) shall be served upon the rel- enterprise-affiliated party may appear, per- 1313A’’ after ‘‘subtitle B,’’; and evant enterprise. sonally or through counsel, before the Direc- (C) by inserting ‘‘, standard,’’ after ‘‘no- ‘‘(ii) EFFECTIVE PERIOD.—A suspension or tor or 1 or more designated employees of the tice’’ each place that term appears. prohibition under subparagraph (A) shall re- Director to submit written materials (or, at (b) CONFORMING AMENDMENT.—Section main in effect until the information, indict- the discretion of the Director, oral testi- 1379B of the Federal Housing Enterprises Fi- ment, or complaint referred to in subpara- mony) and oral argument. nancial Safety and Soundness Act of 1992 (12

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00177 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.123 S03APPT1 ccoleman on PRODPC75 with SENATE S2544 CONGRESSIONAL RECORD — SENATE April 3, 2008 U.S.C. 4641) is amended by striking sub- ‘‘(B) in the case of any enterprise, risdiction and power to order and require section (c) and redesignating subsection (d) $2,000,000.’’; compliance with any subpoena issued under as subsection (c). (3) in subsection (c)— paragraph (1)’’; SEC. 845. CIVIL MONEY PENALTIES. (A) by inserting ‘‘or enterprise-affiliated (4) in subsection (d), by inserting ‘‘enter- Section 1376 of the Federal Housing Enter- party’’ before ‘‘in writing’’; and prise-affiliated party’’ before ‘‘may allow’’; prises Financial Safety and Soundness Act of (B) by inserting ‘‘or enterprise-affiliated and 1992 (12 U.S.C. 4636) is amended— party’’ before ‘‘has been given’’; and (5) by adding at the end the following: (1) by striking subsection (a) and inserting (4) in subsection (d)— ‘‘(e) PENALTIES.—A person shall be guilty the following: (A) by striking ‘‘or director’’ each place of a misdemeanor, and upon conviction, shall ‘‘(a) IN GENERAL.—The Director may im- that term appears and inserting ‘‘director, or be subject to a fine of not more than $1,000 or pose a civil money penalty in accordance enterprise-affiliated party’’; to imprisonment for a term of not more than with this section on any enterprise, or any (B) by striking ‘‘request the Attorney Gen- 1 year, or both, if that person willfully fails executive offices of an enterprise or any en- eral of the United States to’’; or refuses, in disobedience of a subpoena terprise-affiliated party.’’; (C) by inserting ‘‘, or the United States dis- issued under subsection (c), to— (2) by striking subsection (b) and inserting trict court within the jurisdiction of which ‘‘(1) attend court; the following: the headquarters of the enterprise is lo- ‘‘(2) testify in court; ‘‘(b) AMOUNT OF PENALTY.— cated,’’ after ‘‘District of Columbia’’; ‘‘(3) answer any lawful inquiry; or ‘‘(1) FIRST TIER.—An enterprise or enter- (D) by striking ‘‘, or may, under the direc- ‘‘(4) produce books, papers, correspondence, prise-affiliated party shall forfeit and pay a tion and control of the Attorney General of contracts, agreements, or such other records civil penalty of not more than $10,000 for the United States, bring such an action’’; as requested in the subpoena.’’. and each day during which a violation continues, Mr. ENSIGN submitted an if such enterprise or party— (E) by striking ‘‘and section 1374’’. SA 4419. ‘‘(A) violates any provision of this title, SEC. 846. CRIMINAL PENALTY. amendment intended to be proposed to the authorizing statutes, or any order, condi- Subtitle C of the Federal Housing Enter- amendment SA 4387 submitted by Mr. tion, rule, or regulation under this title or prises Financial Safety and Soundness Act of DODD (for himself and Mr. SHELBY) to any authorizing statute; 1992 (12 U.S.C. 4631 et seq.), as amended by the bill H.R. 3221, moving the United ‘‘(B) violates any final or temporary order this Act, is amended by adding at the end States toward greater energy independ- or notice issued pursuant to this title; the following: ence and security, developing innova- ‘‘(C) violates any condition imposed in ‘‘SEC. 1378. CRIMINAL PENALTY. tive new technologies, reducing carbon ‘‘Whoever, being subject to an order in ef- writing by the Director in connection with emissions, creating green jobs, pro- the grant of any application or other request fect under section 1377, without the prior by such enterprise; written approval of the Director, knowingly tecting consumers, increasing clean re- ‘‘(D) violates any written agreement be- participates, directly or indirectly, in any newable energy production, and mod- tween the enterprise and the Director; or manner (including by engaging in an activity ernizing our energy infrastructure, and ‘‘(E) engages in any conduct that the Di- specifically prohibited in such an order) in to amend the Internal Revenue Code of rector determines to be an unsafe or unsound the conduct of the affairs of any enterprise 1986 to provide tax incentives for the practice. shall, notwithstanding section 3571 of title production of renewable energy and en- ‘‘(2) SECOND TIER.—Notwithstanding para- 18, be fined not more than $1,000,000, impris- ergy conservation; which was ordered oned for not more than 5 years, or both.’’. graph (1), a enterprise or enterprise-affili- to lie on the table; as follows: ated party shall forfeit and pay a civil pen- SEC. 847. NOTICE AFTER SEPARATION FROM alty of not more than $50,000 for each day SERVICE. At the end, add the following: during which a violation, practice, or breach Section 1379 of the Federal Housing Enter- TITLE VIII—CLEAN ENERGY TAX continues, if— prises Financial Safety and Soundness Act of STIMULUS ‘‘(A) the enterprise or enterprise-affiliated 1992 (12 U.S.C. 4637), as so designated by this SEC. 801. SHORT TITLE; ETC. party, respectively— Act, is amended— (a) SHORT TITLE.—This title may be cited ‘‘(i) commits any violation described in (1) by striking ‘‘2-year’’ and inserting ‘‘6- as the ‘‘Clean Energy Tax Stimulus Act of any subparagraph of paragraph (1); year’’; and 2008’’. ‘‘(ii) recklessly engages in an unsafe or un- (2) by inserting ‘‘or an enterprise-affiliated (b) AMENDMENT OF 1986 CODE.—Except as sound practice in conducting the affairs of party’’ after ‘‘enterprise’’ each place that otherwise expressly provided, whenever in the enterprise; or term appears. this title an amendment or repeal is ex- ‘‘(iii) breaches any fiduciary duty; and SEC. 848. SUBPOENA AUTHORITY. pressed in terms of an amendment to, or re- ‘‘(B) the violation, practice, or breach— Section 1379B of the Federal Housing En- peal of, a section or other provision, the ref- ‘‘(i) is part of a pattern of misconduct; terprises Financial Safety and Soundness erence shall be considered to be made to a ‘‘(ii) causes or is likely to cause more than Act of 1992 (12 U.S.C. 4641) is amended— section or other provision of the Internal a minimal loss to the enterprise; or (1) in subsection (a)— Revenue Code of 1986. ‘‘(iii) results in pecuniary gain or other (A) in the matter preceding paragraph (1)— Subtitle A—Extension of Clean Energy benefit to such party. (i) by striking ‘‘administrative’’; Production Incentives ‘‘(3) THIRD TIER.—Notwithstanding para- (ii) by inserting ‘‘, examination, or inves- SEC. 811. EXTENSION AND MODIFICATION OF RE- graphs (1) and (2), any enterprise or enter- tigation’’ after ‘‘proceeding’’; NEWABLE ENERGY PRODUCTION prise-affiliated party shall forfeit and pay a (iii) by striking ‘‘subchapter’’ and insert- TAX CREDIT. civil penalty in an amount not to exceed the ing ‘‘title’’; and (a) EXTENSION OF CREDIT.—Each of the fol- applicable maximum amount determined (iv) by inserting ‘‘or any designated rep- lowing provisions of section 45(d) (relating to under paragraph (4) for each day during resentative thereof, including any person qualified facilities) is amended by striking which such violation, practice, or breach designated to conduct any hearing under this ‘‘January 1, 2009’’ and inserting ‘‘January 1, continues, if such enterprise or enterprise-af- subtitle’’ after ‘‘Director’’; and 2010’’: filiated party— (B) in paragraph (4), by striking ‘‘issued by (1) Paragraph (1). ‘‘(A) knowingly— the Director’’; (2) Clauses (i) and (ii) of paragraph (2)(A). ‘‘(i) commits any violation described in (2) in subsection (b), by inserting ‘‘or in (3) Clauses (i)(I) and (ii) of paragraph any subparagraph of paragraph (1); any territory or other place subject to the (3)(A). ‘‘(ii) engages in any unsafe or unsound jurisdiction of the United States’’ after (4) Paragraph (4). practice in conducting the affairs of the en- ‘‘State’’; (5) Paragraph (5). terprise; or (3) by striking subsection (c) and inserting (6) Paragraph (6). ‘‘(iii) breaches any fiduciary duty; and the following: (7) Paragraph (7). ‘‘(B) knowingly or recklessly causes a sub- ‘‘(c) ENFORCEMENT.— (8) Paragraph (8). stantial loss to the enterprise or a substan- ‘‘(1) IN GENERAL.—The Director, or any (9) Subparagraphs (A) and (B) of paragraph tial pecuniary gain or other benefit to such party to proceedings under this subtitle, (9). party by reason of such violation, practice, may apply to the United States District (b) PRODUCTION CREDIT FOR ELECTRICITY or breach. Court for the District of Columbia, or the PRODUCED FROM MARINE RENEWABLES.— ‘‘(4) MAXIMUM AMOUNTS OF PENALTIES FOR United States district court for the judicial (1) IN GENERAL.—Paragraph (1) of section ANY VIOLATION DESCRIBED IN PARAGRAPH (3).— district of the United States in any territory 45(c) (relating to resources) is amended by The maximum daily amount of any civil pen- in which such proceeding is being conducted, striking ‘‘and’’ at the end of subparagraph alty which may be assessed pursuant to or where the witness resides or carries on (G), by striking the period at the end of subparagraph (3) for any violation, practice, or business, for enforcement of any subpoena or paragraph (H) and inserting ‘‘, and’’, and by breach described in paragraph (3) is— subpoena duces tecum issued pursuant to adding at the end the following new subpara- ‘‘(A) in the case of any enterprise-affiliated this section. graph: party, an amount not to exceed $2,000,000; ‘‘(2) POWER OF COURT.—The courts de- ‘‘(I) marine and hydrokinetic renewable and scribed under paragraph (1) shall have the ju- energy.’’.

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(2) MARINE RENEWABLES.—Subsection (c) of fuel cell property) is amended by striking (C) by striking ‘‘, (2),’’ in subparagraph (C). section 45 is amended by adding at the end ‘‘December 31, 2008’’ and inserting ‘‘Decem- (c) CREDIT ALLOWED AGAINST ALTERNATIVE the following new paragraph: ber 31, 2017’’. MINIMUM TAX.— ‘‘(10) MARINE AND HYDROKINETIC RENEWABLE (3) QUALIFIED MICROTURBINE PROPERTY.— (1) IN GENERAL.—Subsection (c) of section ENERGY.— Subparagraph (E) of section 48(c)(2) (relating 25D is amended to read as follows: ‘‘(A) IN GENERAL.—The term ‘marine and to qualified microturbine property) is ‘‘(c) LIMITATION BASED ON AMOUNT OF TAX; hydrokinetic renewable energy’ means en- amended by striking ‘‘December 31, 2008’’ and CARRYFORWARD OF UNUSED CREDIT.— ergy derived from— inserting ‘‘December 31, 2017’’. ‘‘(1) LIMITATION BASED ON AMOUNT OF TAX.— ‘‘(i) waves, tides, and currents in oceans, (b) ALLOWANCE OF ENERGY CREDIT AGAINST In the case of a taxable year to which section estuaries, and tidal areas, ALTERNATIVE MINIMUM TAX.—Subparagraph 26(a)(2) does not apply, the credit allowed ‘‘(ii) free flowing water in rivers, lakes, and (B) of section 38(c)(4) (relating to specified under subsection (a) for the taxable year streams, credits) is amended by striking ‘‘and’’ at the shall not exceed the excess of— ‘‘(iii) free flowing water in an irrigation end of clause (iii), by striking the period at ‘‘(A) the sum of the regular tax liability system, canal, or other man-made channel, the end of clause (iv) and inserting ‘‘, and’’, (as defined in section 26(b)) plus the tax im- including projects that utilize nonmechan- and by adding at the end the following new posed by section 55, over ical structures to accelerate the flow of clause: ‘‘(B) the sum of the credits allowable under water for electric power production purposes, ‘‘(v) the credit determined under section 46 this subpart (other than this section) and or to the extent that such credit is attributable section 27 for the taxable year. ‘‘(iv) differentials in ocean temperature to the energy credit determined under sec- ‘‘(2) CARRYFORWARD OF UNUSED CREDIT.— (ocean thermal energy conversion). tion 48.’’. ‘‘(A) RULE FOR YEARS IN WHICH ALL PER- ‘‘(B) EXCEPTIONS.—Such term shall not in- (c) REPEAL OF DOLLAR PER KILOWATT LIMI- SONAL CREDITS ALLOWED AGAINST REGULAR clude any energy which is derived from any TATION FOR FUEL CELL PROPERTY.— AND ALTERNATIVE MINIMUM TAX.—In the case source which utilizes a dam, diversionary (1) IN GENERAL.—Section 48(c)(1) (relating of a taxable year to which section 26(a)(2) ap- structure (except as provided in subpara- to qualified fuel cell), as amended by sub- plies, if the credit allowable under sub- graph (A)(iii)), or impoundment for electric section (a)(2), is amended by striking subsection (a) exceeds the limitation imposed by power production purposes.’’. paragraph (B) and by redesignating subpara- section 26(a)(2) for such taxable year reduced (3) DEFINITION OF FACILITY.—Subsection (d) graphs (C), (D), and (E) as subparagraphs (B), by the sum of the credits allowable under of section 45 is amended by adding at the end (C), and (D), respectively. this subpart (other than this section), such the following new paragraph: (2) CONFORMING AMENDMENT.—Section excess shall be carried to the succeeding tax- ‘‘(11) MARINE AND HYDROKINETIC RENEWABLE 48(a)(1) is amended by striking ‘‘paragraphs able year and added to the credit allowable ENERGY FACILITIES.—In the case of a facility (1)(B) and (2)(B) of subsection (c)’’ and insert- under subsection (a) for such succeeding tax- producing electricity from marine and ing ‘‘subsection (c)(2)(B)’’. able year. hydrokinetic renewable energy, the term (d) PUBLIC ELECTRIC UTILITY PROPERTY ‘‘(B) RULE FOR OTHER YEARS.—In the case ‘qualified facility’ means any facility owned TAKEN INTO ACCOUNT.— of a taxable year to which section 26(a)(2) by the taxpayer— (1) IN GENERAL.—Paragraph (3) of section does not apply, if the credit allowable under ‘‘(A) which has a nameplate capacity rat- 48(a) is amended by striking the second sen- subsection (a) exceeds the limitation im- ing of at least 150 kilowatts, and tence thereof. posed by paragraph (1) for such taxable year, ‘‘(B) which is originally placed in service (2) CONFORMING AMENDMENTS.— such excess shall be carried to the suc- on or after the date of the enactment of this (A) Paragraph (1) of section 48(c), as ceeding taxable year and added to the credit paragraph and before January 1, 2010.’’. amended by this section, is amended by allowable under subsection (a) for such suc- (4) CREDIT RATE.—Subparagraph (A) of sec- striking subparagraph (C) and redesignating ceeding taxable year.’’. tion 45(b)(4) is amended by striking ‘‘or (9)’’ subparagraph (D) as subparagraph (C). (2) CONFORMING AMENDMENTS.— and inserting ‘‘(9), or (11)’’. (B) Paragraph (2) of section 48(c), as (A) Section 23(b)(4)(B) is amended by in- (5) COORDINATION WITH SMALL IRRIGATION amended by subsection (a)(3), is amended by serting ‘‘and section 25D’’ after ‘‘this sec- POWER.—Paragraph (5) of section 45(d), as striking subparagraph (D) and redesignating tion’’. amended by subsection (a), is amended by subparagraph (E) as subparagraph (D). (B) Section 24(b)(3)(B) is amended by strik- striking ‘‘January 1, 2010’’ and inserting ‘‘the (e) EFFECTIVE DATES.— ing ‘‘and 25B’’ and inserting ‘‘, 25B, and 25D’’. date of the enactment of paragraph (11)’’. (1) EXTENSION.—The amendments made by (C) Section 25B(g)(2) is amended by strik- (c) SALES OF ELECTRICITY TO REGULATED subsection (a) shall take effect on the date of ing ‘‘section 23’’ and inserting ‘‘sections 23 PUBLIC UTILITIES TREATED AS SALES TO UN- the enactment of this Act. and 25D’’. RELATED PERSONS.—Section 45(e)(4) (relating (2) ALLOWANCE AGAINST ALTERNATIVE MIN- (D) Section 26(a)(1) is amended by striking to related persons) is amended by adding at IMUM TAX.—The amendments made by sub- ‘‘and 25B’’ and inserting ‘‘25B, and 25D’’. the end the following new sentence: ‘‘A tax- section (b) shall apply to credits determined (d) EFFECTIVE DATE.— payer shall be treated as selling electricity under section 46 of the Internal Revenue (1) IN GENERAL.—The amendments made by to an unrelated person if such electricity is Code of 1986 in taxable years beginning after this section shall apply to taxable years be- sold to a regulated public utility (as defined the date of the enactment of this Act and to ginning after December 31, 2007. in section 7701(a)(33).’’. carrybacks of such credits. (2) APPLICATION OF EGTRRA SUNSET.—The (d) TRASH FACILITY CLARIFICATION.—Para- (3) FUEL CELL PROPERTY AND PUBLIC ELEC- amendments made by subparagraphs (A) and graph (7) of section 45(d) is amended— TRIC UTILITY PROPERTY.—The amendments (B) of subsection (c)(2) shall be subject to (1) by striking ‘‘facility which burns’’ and made by subsections (c) and (d) shall apply title IX of the Economic Growth and Tax Re- inserting ‘‘facility (other than a facility de- to periods after the date of the enactment of lief Reconciliation Act of 2001 in the same scribed in paragraph (6)) which uses’’, and this Act, in taxable years ending after such manner as the provisions of such Act to (2) by striking ‘‘COMBUSTION’’. date, under rules similar to the rules of sec- which such amendments relate. (e) EFFECTIVE DATES.— tion 48(m) of the Internal Revenue Code of SEC. 814. EXTENSION AND MODIFICATION OF (1) EXTENSION.—The amendments made by 1986 (as in effect on the day before the date CREDIT FOR CLEAN RENEWABLE EN- subsection (a) shall apply to property origi- of the enactment of the Revenue Reconcili- ERGY BONDS. nally placed in service after December 31, ation Act of 1990). (a) EXTENSION.—Section 54(m) (relating to 2008. SEC. 813. EXTENSION AND MODIFICATION OF termination) is amended by striking ‘‘De- (2) MODIFICATIONS.—The amendments made RESIDENTIAL ENERGY EFFICIENT cember 31, 2008’’ and inserting ‘‘December 31, by subsections (b) and (c) shall apply to elec- PROPERTY CREDIT. 2009’’. tricity produced and sold after the date of (a) EXTENSION.—Section 25D(g) (relating to (b) INCREASE IN NATIONAL LIMITATION.— the enactment of this Act, in taxable years termination) is amended by striking ‘‘De- Section 54(f) (relating to limitation on ending after such date. cember 31, 2008’’ and inserting ‘‘December 31, amount of bonds designated) is amended— (3) TRASH FACILITY CLARIFICATION.—The 2009’’. (1) by inserting ‘‘, and for the period begin- amendments made by subsection (d) shall (b) NO DOLLAR LIMITATION FOR CREDIT FOR ning after the date of the enactment of the apply to electricity produced and sold before, SOLAR ELECTRIC PROPERTY.— Clean Energy Tax Stimulus Act of 2008 and on, or after December 31, 2007. (1) IN GENERAL.—Section 25D(b)(1) (relating ending before January 1, 2010, $400,000,000’’ SEC. 812. EXTENSION AND MODIFICATION OF to maximum credit) is amended by striking after ‘‘$1,200,000,000’’ in paragraph (1), SOLAR ENERGY AND FUEL CELL IN- subparagraph (A) and by redesignating sub- (2) by striking ‘‘$750,000,000 of the’’ in para- VESTMENT TAX CREDIT. paragraphs (B) and (C) as subparagraphs (A) graph (2) and inserting ‘‘$750,000,000 of the (a) EXTENSION OF CREDIT.— and (B), respectively. $1,200,000,000’’, and (1) SOLAR ENERGY PROPERTY.—Paragraphs (2) CONFORMING AMENDMENTS.—Section (3) by striking ‘‘bodies’’ in paragraph (2) (2)(A)(i)(II) and (3)(A)(ii) of section 48(a) (re- 25D(e)(4) is amended— and inserting ‘‘bodies, and except that the lating to energy credit) are each amended by (A) by striking clause (i) in subparagraph Secretary may not allocate more than 1⁄3 of striking ‘‘January 1, 2009’’ and inserting (A), the $400,000,000 national clean renewable en- ‘‘January 1, 2017’’. (B) by redesignating clauses (ii) and (iii) in ergy bond limitation to finance qualified (2) FUEL CELL PROPERTY.—Subparagraph subparagraph (A) as clauses (i) and (ii), re- projects of qualified borrowers which are (E) of section 48(c)(1) (relating to qualified spectively, and public power providers nor more than 1⁄3 of

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00179 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.112 S03APPT1 ccoleman on PRODPC75 with SENATE S2546 CONGRESSIONAL RECORD — SENATE April 3, 2008 such limitation to finance qualified projects ‘‘(A) an electric heat pump which achieves placed in service after the date of the enact- of qualified borrowers which are mutual or the highest efficiency tier established by the ment of this Act. cooperative electric companies described in Consortium for Energy Efficiency, as in ef- SEC. 824. MODIFICATION AND EXTENSION OF EN- section 501(c)(12) or section 1381(a)(2)(C)’’. fect on January 1, 2008.’’. ERGY EFFICIENT APPLIANCE CRED- (c) PUBLIC POWER PROVIDERS DEFINED.— (2) CENTRAL AIR CONDITIONERS.—Section IT FOR APPLIANCES PRODUCED Section 54(j) is amended— 25C(d)(3)(D) is amended by striking ‘‘2006’’ AFTER 2007. (1) by adding at the end the following new and inserting ‘‘2008’’. (a) IN GENERAL.—Subsection (b) of section paragraph: (3) WATER HEATERS.—Subparagraph (E) of 45M (relating to applicable amount) is ‘‘(6) PUBLIC POWER PROVIDER.—The term section 25C(d) is amended to read as follows: amended to read as follows: ‘public power provider’ means a State utility ‘‘(E) a natural gas, propane, or oil water ‘‘(b) APPLICABLE AMOUNT.—For purposes of with a service obligation, as such terms are heater which has either an energy factor of subsection (a)— defined in section 217 of the Federal Power at least 0.80 or a thermal efficiency of at ‘‘(1) DISHWASHERS.—The applicable amount Act (as in effect on the date of the enact- least 90 percent.’’. is— ment of this paragraph).’’, and (4) OIL FURNACES AND HOT WATER BOILERS.— ‘‘(A) $45 in the case of a dishwasher which UBLIC POWER PRO- (2) by inserting ‘‘; P Paragraph (4) of section 25C(d) is amended to is manufactured in calendar year 2008 or 2009 VIDER’’ before the period at the end of the read as follows: and which uses no more than 324 kilowatt heading. ‘‘(4) QUALIFIED NATURAL GAS, PROPANE, AND hours per year and 5.8 gallons per cycle, and (d) TECHNICAL AMENDMENT.—The third sen- OIL FURNACES AND HOT WATER BOILERS.— ‘‘(B) $75 in the case of a dishwasher which tence of section 54(e)(2) is amended by strik- ‘‘(A) QUALIFIED NATURAL GAS FURNACE.— ing ‘‘subsection (l)(6)’’ and inserting ‘‘sub- is manufactured in calendar year 2008, 2009, The term ‘qualified natural gas furnace’ or 2010 and which uses no more than 307 kilo- section (l)(5)’’. means any natural gas furnace which (e) EFFECTIVE DATE.—The amendments watt hours per year and 5.0 gallons per cycle achieves an annual fuel utilization efficiency (5.5 gallons per cycle for dishwashers de- made by this section shall apply to bonds rate of not less than 95. signed for greater than 12 place settings). issued after the date of the enactment of this ‘‘(B) QUALIFIED NATURAL GAS HOT WATER ‘‘(2) CLOTHES WASHERS.—The applicable Act. BOILER.—The term ‘qualified natural gas hot amount is— SEC. 815. EXTENSION OF SPECIAL RULE TO IM- water boiler’ means any natural gas hot ‘‘(A) $75 in the case of a residential top- PLEMENT FERC RESTRUCTURING water boiler which achieves an annual fuel POLICY. loading clothes washer manufactured in cal- utilization efficiency rate of not less than 90. (a) QUALIFYING ELECTRIC TRANSMISSION endar year 2008 which meets or exceeds a 1.72 ‘‘(C) QUALIFIED PROPANE FURNACE.—The TRANSACTION.— modified energy factor and does not exceed a term ‘qualified propane furnace’ means any (1) IN GENERAL.—Section 451(i)(3) (defining 8.0 water consumption factor, propane furnace which achieves an annual qualifying electric transmission transaction) ‘‘(B) $125 in the case of a residential top- fuel utilization efficiency rate of not less is amended by striking ‘‘January 1, 2008’’ and than 95. loading clothes washer manufactured in cal- inserting ‘‘January 1, 2010’’. endar year 2008 or 2009 which meets or ex- ‘‘(D) QUALIFIED PROPANE HOT WATER BOIL- (2) EFFECTIVE DATE.—The amendment ceeds a 1.8 modified energy factor and does ER.—The term ‘qualified propane hot water made by this subsection shall apply to trans- boiler’ means any propane hot water boiler not exceed a 7.5 water consumption factor, actions after December 31, 2007. ‘‘(C) $150 in the case of a residential or (b) INDEPENDENT TRANSMISSION COMPANY.— which achieves an annual fuel utilization efficiency rate of not less than 90. commercial clothes washer manufactured in (1) IN GENERAL.—Section 451(i)(4)(B)(ii) (de- calendar year 2008, 2009, or 2010 which meets fining independent transmission company) is ‘‘(E) QUALIFIED OIL FURNACES.—The term ‘qualified oil furnace’ means any oil furnace or exceeds 2.0 modified energy factor and amended by striking ‘‘December 31, 2007’’ and does not exceed a 6.0 water consumption fac- inserting ‘‘the date which is 2 years after the which achieves an annual fuel utilization efficiency rate of not less than 90. tor, and date of such transaction’’. ‘‘(D) $250 in the case of a residential or (2) EFFECTIVE DATE.—The amendment ‘‘(F) QUALIFIED OIL HOT WATER BOILER.— The term ‘qualified oil hot water boiler’ commercial clothes washer manufactured in made by this subsection shall take effect as calendar year 2008, 2009, or 2010 which meets if included in the amendments made by sec- means any oil hot water boiler which achieves an annual fuel utilization efficiency or exceeds 2.2 modified energy factor and tion 909 of the American Jobs Creation Act does not exceed a 4.5 water consumption fac- of 2004. rate of not less than 90.’’. (d) EFFECTIVE DATE.—The amendments tor. Subtitle B—Extension of Incentives to made this section shall apply to expenditures ‘‘(3) REFRIGERATORS.—The applicable Improve Energy Efficiency made after December 31, 2007. amount is— SEC. 821. EXTENSION AND MODIFICATION OF SEC. 822. EXTENSION AND MODIFICATION OF TAX ‘‘(A) $50 in the case of a refrigerator which CREDIT FOR ENERGY EFFICIENCY CREDIT FOR ENERGY EFFICIENT is manufactured in calendar year 2008, and IMPROVEMENTS TO EXISTING NEW HOMES. consumes at least 20 percent but not more HOMES. (a) EXTENSION OF CREDIT.—Subsection (g) than 22.9 percent less kilowatt hours per (a) EXTENSION OF CREDIT.—Section 25C(g) of section 45L (relating to termination) is year than the 2001 energy conservation (relating to termination) is amended by amended by striking ‘‘December 31, 2008’’ and standards, striking ‘‘December 31, 2007’’ and inserting inserting ‘‘December 31, 2010’’. ‘‘(B) $75 in the case of a refrigerator which ‘‘December 31, 2009’’. (b) ALLOWANCE FOR CONTRACTOR’S PER- (b) QUALIFIED BIOMASS FUEL PROPERTY.— is manufactured in calendar year 2008 or 2009, SONAL RESIDENCE.—Subparagraph (B) of sec- and consumes at least 23 percent but no (1) IN GENERAL.—Section 25C(d)(3) is tion 45L(a)(1) is amended to read as follows: amended— more than 24.9 percent less kilowatt hours ‘‘(B)(i) acquired by a person from such eli- (A) by striking ‘‘and’’ at the end of sub- per year than the 2001 energy conservation gible contractor and used by any person as a paragraph (D), standards, residence during the taxable year, or (B) by striking the period at the end of ‘‘(C) $100 in the case of a refrigerator which ‘‘(ii) used by such eligible contractor as a subparagraph (E) and inserting ‘‘, and’’, and is manufactured in calendar year 2008, 2009, residence during the taxable year.’’. (C) by adding at the end the following new or 2010, and consumes at least 25 percent but (c) EFFECTIVE DATE.—The amendments subparagraph: not more than 29.9 percent less kilowatt made by this section shall apply to homes hours per year than the 2001 energy con- ‘‘(F) a stove which uses the burning of bio- acquired after December 31, 2008. mass fuel to heat a dwelling unit located in servation standards, and SEC. 823. EXTENSION AND MODIFICATION OF EN- the United States and used as a residence by ‘‘(D) $200 in the case of a refrigerator man- ERGY EFFICIENT COMMERCIAL ufactured in calendar year 2008, 2009, or 2010 the taxpayer, or to heat water for use in such BUILDINGS DEDUCTION. and which consumes at least 30 percent less a dwelling unit, and which has a thermal ef- (a) EXTENSION.—Section 179D(h) (relating ficiency rating of at least 75 percent.’’. to termination) is amended by striking ‘‘De- energy than the 2001 energy conservation (2) BIOMASS FUEL.—Section 25C(d) (relating cember 31, 2008’’ and inserting ‘‘December 31, standards.’’. to residential energy property expenditures) 2009’’. (b) ELIGIBLE PRODUCTION.— is amended by adding at the end the fol- (b) ADJUSTMENT OF MAXIMUM DEDUCTION (1) SIMILAR TREATMENT FOR ALL APPLI- lowing new paragraph: AMOUNT.— ANCES.—Subsection (c) of section 45M (relat- ‘‘(6) BIOMASS FUEL.—The term ‘biomass (1) IN GENERAL.—Subparagraph (A) of sec- ing to eligible production) is amended— fuel’ means any plant-derived fuel available tion 179D(b)(1) (relating to maximum (A) by striking paragraph (2), on a renewable or recurring basis, including amount of deduction) is amended by striking (B) by striking ‘‘(1) IN GENERAL’’ and all agricultural crops and trees, wood and wood ‘‘$1.80’’ and inserting ‘‘$2.25’’. that follows through ‘‘the eligible’’ and in- waste and residues (including wood pellets), (2) PARTIAL ALLOWANCE.—Paragraph (1) of serting ‘‘The eligible’’, and plants (including aquatic plants), grasses, section 179D(d) is amended— (C) by moving the text of such subsection residues, and fibers.’’. (A) by striking ‘‘$.60’’ and inserting in line with the subsection heading and re- (c) MODIFICATIONS OF STANDARDS FOR EN- ‘‘$0.75’’, and designating subparagraphs (A) and (B) as ERGY-EFFICIENT BUILDING PROPERTY.— (B) by striking ‘‘$1.80’’ and inserting paragraphs (1) and (2), respectively. (1) ELECTRIC HEAT PUMPS.—Subparagraph ‘‘$2.25’’. (2) MODIFICATION OF BASE PERIOD.—Para- (B) of section 25C(d)(3) is amended to read as (c) EFFECTIVE DATE.—The amendments graph (2) of section 45M(c), as amended by follows: made by this section shall apply to property paragraph (1) of this section, is amended by

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00180 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.112 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2547 striking ‘‘3-calendar year’’ and inserting ‘‘2- respect to a clothes washer, the quotient of ant to paragraph (1) with respect to a quali- calendar year’’. the total weighted per-cycle water consump- fied foreclosure recovery distribution from (c) TYPES OF ENERGY EFFICIENT APPLI- tion divided by the cubic foot (or liter) ca- an eligible retirement plan other than an in- ANCES.—Subsection (d) of section 45M (defin- pacity of the clothes washer.’’. dividual retirement plan, then the taxpayer ing types of energy efficient appliances) is (f) EFFECTIVE DATE.—The amendments shall, to the extent of the amount of the con- amended to read as follows: made by this section shall apply to appli- tribution, be treated as having received the ‘‘(d) TYPES OF ENERGY EFFICIENT APPLI- ances produced after December 31, 2007. qualified foreclosure recovery distribution in ANCE.—For purposes of this section, the an eligible rollover distribution (as defined types of energy efficient appliances are— SA 4420. Mr. NELSON of Florida (for in section 402(e)(4) of such Code) and as hav- ‘‘(1) dishwashers described in subsection himself and Mr. COLEMAN) submitted ing transferred the amount to the eligible re- (b)(1), an amendment intended to be proposed tirement plan in a direct trustee to trustee ‘‘(2) clothes washers described in sub- by him to the bill H.R. 3221, moving the transfer within 60 days of the distribution. section (b)(2), and (3) TREATMENT OF REPAYMENTS FOR DIS- ‘‘(3) refrigerators described in subsection United States toward greater energy TRIBUTIONS FROM IRAS.—For purposes of (b)(3).’’. independence and security, developing such Code, if a contribution is made pursu- (d) AGGREGATE CREDIT AMOUNT ALLOWED.— innovative new technologies, reducing ant to paragraph (1) with respect to a quali- (1) INCREASE IN LIMIT.—Paragraph (1) of carbon emissions, creating green jobs, fied foreclosure recovery distribution from section 45M(e) (relating to aggregate credit protecting consumers, increasing clean an individual retirement plan (as defined by amount allowed) is amended to read as fol- section 7701(a)(37) of such Code), then, to the lows: renewable energy production, and modernizing our energy infrastructure, and extent of the amount of the contribution, ‘‘(1) AGGREGATE CREDIT AMOUNT ALLOWED.— the qualified foreclosure recovery distribu- The aggregate amount of credit allowed to amend the Internal Revenue Code of tion shall be treated as a distribution de- under subsection (a) with respect to a tax- 1986 to provide tax incentives for the scribed in section 408(d)(3) of such Code and payer for any taxable year shall not exceed production of renewable energy and en- as having been transferred to the eligible re- $75,000,000 reduced by the amount of the ergy conservation; which was ordered tirement plan in a direct trustee to trustee credit allowed under subsection (a) to the to lie on the table; as follows: transfer within 60 days of the distribution. taxpayer (or any predecessor) for all prior (4) APPLICATION TO ELIGIBLE RETIREMENT At the end of title VI, insert the following: taxable years beginning after December 31, PLANS.— 2007.’’. SEC. PENALTY-FREE WITHDRAWALS FROM RE- (A) IN GENERAL.—Nothing in this section TIREMENT PLANS FOR FORE- (2) EXCEPTION FOR CERTAIN REFRIGERATOR shall be treated as requiring an eligible re- CLOSURE RECOVERY RELIEF FOR AND CLOTHES WASHERS.—Paragraph (2) of sec- INDIVIDUALS WITH MORTGAGES ON tirement plan to accept any contributions tion 45M(e) is amended to read as follows: THEIR PRINCIPAL RESIDENCES. described in this subsection. (B) QUALIFICATION.—An eligible retirement ‘‘(2) AMOUNT ALLOWED FOR CERTAIN REFRIG- (a) IN GENERAL.—Section 72(t) of the Inter- ERATORS AND CLOTHES WASHERS.—Refrig- nal Revenue Code of 1986 shall not apply to plan shall not be treated as violating any requirement of Federal law solely by reason of erators described in subsection (b)(3)(D) and any qualified foreclosure recovery distribu- the acceptance of contributions described in clothes washers described in subsection tion. this subparagraph. (b)(2)(D) shall not be taken into account (b) LIMITATIONS.— (d) DEFINITIONS.—FOR PURPOSES OF THIS under paragraph (1).’’. (1) IN GENERAL.—For purposes of this sec- SECTION (e) QUALIFIED ENERGY EFFICIENT APPLI- tion, the aggregate amount of distributions (1) QUALIFIED FORECLOSURE RECOVERY DIS- ANCES.— received by an individual which may he TRIBUTION.—The term ‘‘qualified foreclosure (1) IN GENERAL.—Paragraph (1) of section treated as qualified foreclosure recovery dis- 45M(f) (defining qualified energy efficient ap- recovery distribution’’ means any distribu- tributions for any taxable year shall not ex- tion to an individual from an eligible retire- pliance) is amended to read as follows: ceed the excess (if any) of— ‘‘(1) QUALIFIED ENERGY EFFICIENT APPLI- ment plan which is made— (A) the lesser of (A) on or after the date of the enactment of ANCE.—The term ‘qualified energy efficient (i) the individual’s qualified mortgage ex- appliance’ means— this Act and before January 1, 2010, and penditures for the taxable year, or (B) during a taxable year during which the ‘‘(A) any dishwasher described in sub- (ii) $25,000, over individual has qualifying mortgage expendi- section (b)(1), (B) the aggregate amounts treated as tures. ‘‘(B) any clothes washer described in sub- qualified foreclosure recovery distributions (2) QUALIFYING MORTGAGE EXPENDITURES.— section (b)(2), and received by such individual for all prior tax- (A) IN GENERAL.—The term ‘‘qualifying ‘‘(C) any refrigerator described in sub- able years. mortgage expenditures’’ means any of the section (b)(3).’’. (2) TREATMENT OF PLAN DISTRIBUTIONS.—If following expenditures: (2) CLOTHES WASHER.—Section 45M(f)(3) (de- a distribution to an individual would (with- (i) Payment of principal or interest on an fining clothes washer) is amended by insert- out regard to paragraph (1)) be a qualified applicable mortgage. ing ‘‘commercial’’ before ‘‘residential’’ the foreclosure recovery distribution, a plan (ii) Payment of costs paid or incurred in second place it appears. shall not be treated as violating any require- refinancing, or modifying the terms of, an (3) TOP-LOADING CLOTHES WASHER.—Sub- ment of the Internal Revenue Code of 1986 applicable mortgage. section (f) of section 45M (relating to defini- merely because the plan treats such distribu- (B) Applicable Mortgage.—The term ‘‘ap- tions) is amended by redesignating para- tion as a qualified foreclosure recovery dis- plicable mortgage’’ means a mortgage graphs (4), (5), (6), and (7) as paragraphs (5), tribution, unless the aggregate amount of which— (6), (7), and (8), respectively, and by inserting such distributions from all plans maintained (i) was entered into after December 31, after paragraph (3) the following new para- by the employer (and any member of any 1999, and before the date of the enactment of graph: controlled group which includes the em- this Act, and (ii) constitutes a security interest in the ‘‘(4) TOP-LOADING CLOTHES WASHER.—The ployer) to such individual exceeds $25,000. principal residence of the mortgagor. term ‘top-loading clothes washer’ means a (3) CONTROLLED GROUP.—For purposes of (C) JOINT FILERS.—In the case of married clothes washer which has the clothes con- paragraph (2), the term ‘‘controlled group’’ individuals filing a joint return under sec- tainer compartment access located on the means any group treated as a single em- tion 6013 of the Internal Revenue Code of top of the machine and which operates on a ployer under subsection (b), (e), (m), or (o) of 1986, the qualifying mortgage expenditures of vertical axis.’’. section 414 of such Code. the taxpayer may be allocated between the (4) REPLACEMENT OF ENERGY FACTOR.—Sec- (c) AMOUNT DISTRIBUTED MAY BE REPAID.— spouses in such manner as they elect. tion 45M(f)(6), as redesignated by paragraph (1) IN GENERAL.—Any individual who re- (3) Eligible Retirement Plan.—The term (3), is amended to read as follows: ceives a qualified foreclosure recovery dis- ‘‘eligible retirement plan’’ shall have the ‘‘(6) MODIFIED ENERGY FACTOR.—The term tribution may, at any time during the 3–year meaning given such term by section ‘modified energy factor’ means the modified period beginning on the day after the date on 402(c)(8)(B) of such Code. energy factor established by the Department which such distribution was received, make (4) Principal Residence.—The term ‘‘prin- of Energy for compliance with the Federal one or more contributions in an aggregate cipal residence’’ has the same meaning as energy conservation standard.’’. amount not to exceed the amount of such when used in section 121 of such Code. (5) GALLONS PER CYCLE; WATER CONSUMP- distribution to an eligible retirement plan of (e) INCOME INCLUSION SPREAD OVER 3–YEAR TION FACTOR.—Section 45M(f) (relating to which such individual is a beneficiary and to PERIOD FOR QUALIFIED FORECLOSURE RECOV- definitions), as amended by paragraph (3), is which a rollover contribution of such dis- ERY DISTRIBUTIONS.— amended by adding at the end the following: tribution could be made under section 402(c), (1) IN GENERAL.—In the case of any quali- ‘‘(9) GALLONS PER CYCLE.—The term ‘gal- 403(a)(4), 403(h)(8), 408(d)(3), or 457(e)(16) of fied foreclosure recovery distribution, unless lons per cycle’ means, with respect to a dish- the Internal Revenue Code of 1986, as the the taxpayer elects not to have this sub- washer, the amount of water, expressed in case may be. section apply for any taxable year, any gallons, required to complete a normal cycle (2) TREATMENT OF REPAYMENTS OF DIS- amount required to be included in gross in- of a dishwasher. TRIBUTIONS FROM ELIGIBLE RETIREMENT come for such taxable year shall be so in- ‘‘(10) WATER CONSUMPTION FACTOR.—The PLANS OTHER THAN IRAS.—For purposes of cluded ratably over the 3–taxable year period term ‘water consumption factor’ means, with such Code, if a contribution is made pursu- beginning with such taxable year.

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00181 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.112 S03APPT1 ccoleman on PRODPC75 with SENATE S2548 CONGRESSIONAL RECORD — SENATE April 3, 2008 (2) SPECIAL RULE.—For purposes of para- protecting consumers, increasing clean ‘‘(D) OTHER TAXPAYERS.—If 2 or more indi- graph (1), rules similar to the rules of sub- renewable energy production, and mod- viduals who are not married purchase a prin- paragraph ernizing our energy infrastructure, and cipal residence— (E) of section 408A(d)(3) of the Internal to amend the Internal Revenue Code of ‘‘(i) the credit under this section is allow- Revenue Code of 1986 shall apply. able only if each of the individuals is a first- (f) SPECIAL RULES. 1986 to provide tax incentives for the time homebuyer, and (1) EXEMPTION OF DISTRIBUTIONS FROM production of renewable energy and en- ‘‘(ii) the amount of the credit allowed TRUSTEE TO TRUSTEE TRANSFER AND WITH- ergy conservation; which was ordered under subsection (a) shall be allocated HOLDING RULES.—For purposes of sections to lie on the table; as follows: among such individuals in such manner as 401(a)(31), 402(f), and 3405 of the Internal Rev- At the end, insert the following: the Secretary may prescribe. enue Code of 1986, qualified foreclosure re- TITLE—FIRST-TIME HOMEBUYERS’ TAX ‘‘(2) PRINCIPAL RESIDENCE.—The term ‘prin- covery distributions shall not be treated as CREDIT cipal residence’ has the same meaning as eligible rollover distributions. when used in section 121. SEC. l01. CREDIT FOR FIRST-TIME HOME- (2) QUALIFIED FORECLOSURE RECOVERY DIS- ‘‘(3) PURCHASE.— BUYERS. TRIBUTIONS TREATED AS MEETING PLAN DIS- ‘‘(A) IN GENERAL.—The term ‘purchase’ (a) IN GENERAL.—Subpart A of part IV of TRIBUTION REQUIREMENTS.—For purposes of subchapter A of chapter 1 of the Internal means any acquisition, but only if— such Code, a qualified foreclosure recovery Revenue Code of 1986 (relating to nonrefund- ‘‘(i) the property is not acquired from a distribution shall be treated as meeting the able personal credits) is amended by insert- person whose relationship to the person ac- requirements of sections 401(k)(2)(B)(i), ing after section 25D the following new sec- quiring it would result in the disallowance of 403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A) of tion: losses under section 267 or 707(b) (but, in ap- such Code. plying section 267 (b) and (c) for purposes of ‘‘SEC. 25E. PURCHASE OF PRINCIPAL RESIDENCE (3) SUBSTANTIALLY EQUAL PERIODIC PAY- BY FIRST-TIME HOMEBUYER. this section, paragraph (4) of section 267(c) MENTS.—A qualified foreclosure recovery dis- shall be treated as providing that the family ‘‘(a) ALLOWANCE OF CREDIT.— tribution— of an individual shall include only the indi- ‘‘(1) IN GENERAL.—In the case of an indi- (A) shall be disregarded in determining vidual who is a first-time homebuyer of a vidual’s spouse, ancestors, and lineal de- whether a payment is a part of a series of principal residence in the United States dur- scendants), and substantially equal periodic payment under ing any taxable year, there shall be allowed ‘‘(ii) the basis of the property in the hands section 72(t)(2)(A)(iv) of such Code, and as a credit against the tax imposed by this of the person acquiring it is not deter- (B) shall not constitute a change in sub- subtitle for the taxable year an amount mined— stantially equal periodic payments under equal to so much of the purchase price of the ‘‘(I) in whole or in part by reference to the section 72(t)(4) of such Code. residence as does not exceed $7,000. adjusted basis of such property in the hands (g) PROVISIONS RELATING TO PLAN AMEND- of the person from whom acquired, or ‘‘(2) ALLOCATION OF CREDIT AMOUNT.—The MENTS.— amount of the credit allowed under para- ‘‘(II) under section 1014(a) (relating to (1) IN GENERAL.—If this subsection applies graph (1) shall be equally divided among the property acquired from a decedent). to any amendment to any plan or annuity 2 taxable years beginning with the taxable ‘‘(B) CONSTRUCTION.—A residence which is contract, such plan or contract shall be year in which the purchase of the principal constructed by the taxpayer shall be treated treated as being operated in accordance with residence is made. as purchased by the taxpayer. the terms of the plan during the period de- ‘‘(b) LIMITATIONS.— ‘‘(4) PURCHASE PRICE.—The term ‘purchase scribed in paragraph (2)(B)(i). ‘‘(1) LIMITATION BASED ON MODIFIED AD- price’ means the adjusted basis of the prin- (2) AMENDMENTS TO WHICH SUBSECTION AP- JUSTED GROSS INCOME.— cipal residence on the date of acquisition PLIES.— ‘‘(A) IN GENERAL.—The amount allowable (within the meaning of section (A) IN GENERAL.—This subsection shall as a credit under subsection (a) (determined 72(t)(8)(D)(iii)). apply to any amendment to any plan or an- without regard to this subsection) for the ‘‘(d) DENIAL OF DOUBLE BENEFIT.—No credit nuity contract which is made— shall be allowed under subsection (a) for any taxable year shall be reduced (but not below (i) pursuant to the provisions this section, expense for which a deduction or credit is al- zero) by the amount which bears the same or pursuant to any regulation issued by the lowed under any other provision of this chap- ratio to the credit so allowable as— Secretary of the Treasury or the Secretary ter. ‘‘(i) the excess (if any) of— of Labor under this section, and ‘‘(e) RECAPTURE IN THE CASE OF CERTAIN ‘‘(I) the taxpayer’s modified adjusted gross (ii) on or before the last day of the first DISPOSITIONS.—In the event that a tax- income for such taxable year, over plan year beginning on or after January 1, payer— ‘‘(II) $70,000 ($110,000 in the case of a joint 2010, or such later date as the Secretary of ‘‘(1) disposes of the principal residence return), bears to the Treasury may prescribe. with respect to which a credit is allowed ‘‘(ii) $20,000. under subsection (a), or In the case of a governmental plan (as de- ‘‘(B) MODIFIED ADJUSTED GROSS INCOME.— fined in section 414(d) of the Internal Rev- ‘‘(2) fails to occupy such residence as the For purposes of paragraph (1), the term taxpayer’s principal residence, enue Code of 1986), clause (ii) shall be applied ‘modified adjusted gross income’ means the at any time within 24 months after the date by substituting the date which is 2 years adjusted gross income of the taxpayer for the on which the taxpayer purchased such resi- after the date otherwise applied under clause taxable year increased by any amount ex- dence, then the remaining portion of the (ii). cluded from gross income under section 911, credit allowed under subsection (a) shall be (B) CONDITIONS.—This subsection shall not 931, or 933. disallowed in the taxable year during which apply to any amendment unless— ‘‘(2) LIMITATION BASED ON AMOUNT OF TAX.— such disposition occurred or in which the (i) during the period— In the case of a taxable year to which section taxpayer failed to occupy the residence as a (I) beginning on the date the legislative or 26(a)(2) does not apply, the credit allowed regulatory amendment described in subpara- principal residence, and in any subsequent under subsection (a) for any taxable year taxable year in which the remaining portion graph (A)(i) takes effect (or in the case of a shall not exceed the excess of— plan or contract amendment not required by of the credit would, but for this subsection, ‘‘(A) the sum of the regular tax liability have been allowed. such legislative or regulatory amendment, (as defined in section 26(b)) plus the tax im- any later effective date specified by the ‘‘(f) BASIS ADJUSTMENT.—For purposes of posed by section 55, over this subtitle, if a credit is allowed under this plan), and ‘‘(B) the sum of the credits allowable under (II) ending on the date described in subsection with respect to the purchase of any this subpart (other than this section and sec- residence, the basis of such residence shall be paragraph (A)(ii) (or, if earlier, the date the tion 23) for the taxable year. plan or contract amendment is adopted), reduced by the amount of the credit so al- ‘‘(c) DEFINITIONS AND SPECIAL RULES.—For lowed. the plan or contract is operated as if such purposes of this section— ‘‘(g) PROPERTY TO WHICH SECTION AP- plan or contract amendment were in effect; ‘‘(1) FIRST-TIME HOMEBUYER.— PLIES.—The provisions of this section shall and ‘‘(A) IN GENERAL.—The term ‘first-time apply to a principal residence if the tax- (ii) such plan or contract amendment ap- homebuyer’ has the same meaning as when payer’s date of acquisition of the residence plies retroactively for such period. used in section 72(t)(8)(D)(i). (within the meaning of section ‘‘(B) ONE-TIME ONLY.—If an individual is 72(t)(8)(D)(iii)) and date of settlement on SA 4421. Mr. CARDIN (for himself treated as a first-time homebuyer with re- such residence are during the period begin- and Mr. ENSIGN) proposed an amend- spect to any principal residence, such indi- ning on the date of the enactment of this ment to amendment SA 4387 submitted vidual may not be treated as a first-time section and ending on the date that is 1 year by Mr. DODD (for himself and Mr. SHEL- homebuyer with respect to any other prin- after such date.’’. cipal residence. (b) CONFORMING AMENDMENTS.— BY) to the bill H.R. 3221, moving the ‘‘(C) MARRIED INDIVIDUALS FILING JOINT- (1) Section 24(b)(3)(B) of the Internal Rev- United States toward greater energy LY.—In the case of married individuals who enue Code of 1986 is amended by striking independence and security, developing file a joint return, the credit under this sec- ‘‘and 25B’’ and inserting ‘‘, 25B, and 25E’’. innovative new technologies, reducing tion is allowable only if both individuals are (2) Section 25(e)(1)(C)(ii) of such Code is carbon emissions, creating green jobs, first-time homebuyers. amended by inserting ‘‘25E,’’ after ‘‘25D,’’.

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00182 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.113 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2549 (3) Section 25B(g)(2) of such Code is amend- reason of the May 4, 2007, storms and tor- (C) by substituting ‘‘qualified storm dis- ed by striking ‘‘section 23’’ and inserting nados’’ for ‘‘on or after August 25, 2005, by tribution’’ for ‘‘qualified Katrina distribu- ‘‘sections 23 and 25E’’. reason of Hurricane Katrina’’. tion’’ each place it appears, (4) Section 25D(c)(2) of such Code is amend- (3) EMPLOYEE RETENTION CREDIT FOR EM- (D) by substituting ‘‘after November 4, ed by striking ‘‘and 25B’’ and inserting ‘‘25B, PLOYERS AFFECTED BY MAY 4 STORMS AND TOR- 2006, and before May 5, 2007’’ for ‘‘after Feb- and 25E’’. NADOS.—Section 1400R(a) of the Internal Rev- ruary 28, 2005, and before August 29, 2005’’ in (5) Section 26(a)(1) of such Code is amended enue Code of 1986— subsection (b)(2)(B)(ii), by striking ‘‘and 25B’’ and inserting ‘‘25B, (A) by substituting ‘‘May 4, 2007’’ for ‘‘Au- (E) by substituting ‘‘beginning on May 4, and 25E’’. gust 28, 2005’’ each place it appears, 2007, and ending on November 5, 2007’’ for (6) Section 904(i) of such Code is amended (B) by substituting ‘‘January 1, 2008’’ for ‘‘beginning on August 25, 2005, and ending on by striking ‘‘and 25B’’ and inserting ‘‘25B, ‘‘January 1, 2006’’ both places it appears, and February 28, 2006’’ in subsection (b)(3)(A), and 25E’’. (C) only with respect to eligible employers (F) by substituting ‘‘qualified storm indi- (7) Subsection (a) of section 1016 of such who employed an average of not more than vidual’’ for ‘‘qualified Hurricane Katrina in- Code is amended by striking ‘‘and’’ at the 200 employees on business days during the dividual’’ each place it appears, end of paragraph (36), by striking the period taxable year before May 4, 2007. (G) by substituting ‘‘December 31, 2007’’ for at the end of paragraph (37) and inserting ‘‘, (4) SPECIAL ALLOWANCE FOR CERTAIN PROP- ‘‘December 31, 2006’’ in subsection (c)(2)(A), and’’, and by adding at the end the following ERTY ACQUIRED ON OR AFTER MAY 5, 2007.—Sec- (H) by substituting ‘‘beginning on June 4, new paragraph: tion 1400N(d) of such Code— 2007, and ending on December 31, 2007’’ for ‘‘(38) to the extent provided in section (A) by substituting ‘‘qualified Recovery ‘‘beginning on September 24, 2005, and ending 25E(f).’’. Assistance property’’ for ‘‘qualified Gulf Op- on December 31, 2006’’ in subsection (8) Section 1400C(d)(2) of such Code is portunity Zone property’’ each place it ap- (c)(4)(A)(i), amended by striking ‘‘and 25D’’ and inserting pears, (I) by substituting ‘‘May 4, 2007’’ for ‘‘Au- ‘‘25D, and 25E’’. (B) by substituting ‘‘May 5, 2007’’ for ‘‘Au- gust 25, 2005’’ in subsection (c)(4)(A)(ii), and (c) CLERICAL AMENDMENT.—The table of gust 28, 2005’’ each place it appears, (J) by substituting ‘‘January 1, 2008’’ for sections for subpart A of part IV of sub- (C) by substituting ‘‘December 31, 2008’’ for ‘‘January 1, 2007’’ in subsection (d)(2)(A)(ii). chapter A of chapter 1 of the Internal Rev- ‘‘December 31, 2007’’ in paragraph (2)(A)(v), enue Code of 1986 is amended by inserting (D) by substituting ‘‘December 31, 2009’’ for SA 4423. Mr. NELSON of Florida (for after the item relating to section 25D the fol- ‘‘December 31, 2008’’ in paragraph (2)(A)(v), himself and Mr. COLEMAN) submitted lowing new item: (E) by substituting ‘‘May 4, 2007’’ for ‘‘Au- an amendment intended to be proposed gust 27, 2005’’ in paragraph (3)(A), ‘‘Sec. 25E. Purchase of principal residence (F) by substituting ‘‘January 1, 2009’’ for by him to the bill H.R. 3221, moving the by first-time homebuyer.’’. ‘‘January 1, 2008’’ in paragraph (3)(B), and United States toward greater energy (G) determined without regard to para- independence and security, developing SA 4422. Mr. ROBERTS (for himself graph (6) thereof. innovative new technologies, reducing and Mr. BROWNBACK) submitted an (5) INCREASE IN EXPENSING UNDER SECTION carbon emissions, creating green jobs, amendment intended to be proposed to 179.—Section 1400N(e) of such Code, by sub- protecting consumers, increasing clean amendment SA 4389 submitted by Ms. stituting ‘‘qualified section 179 Recovery As- renewable energy production, and mod- LANDRIEU (for herself, Mr. COCHRAN, sistance property’’ for ‘‘qualified section 179 Gulf Opportunity Zone property’’ each place ernizing our energy infrastructure, and Mr. VITTER, and Mr. WICKER) to the to amend the Internal Revenue Code of amendment SA 4387 submitted by Mr. it appears. (6) EXPENSING FOR CERTAIN DEMOLITION AND 1986 to provide tax incentives for the DODD (for himself and Mr. SHELBY) to CLEAN-UP COSTS.—Section 1400N(f) of such production of renewable energy and en- the bill H.R. 3221, moving the United Code— ergy conservation; which was ordered States toward greater energy independ- (A) by substituting ‘‘qualified Recovery to lie on the table; as follows: ence and security, developing innova- Assistance clean-up cost’’ for ‘‘qualified Gulf At the end of title VI, insert the following: Opportunity Zone clean-up cost’’ each place tive new technologies, reducing carbon SEC. ll. PENALTY-FREE WITHDRAWALS FROM emissions, creating green jobs, pro- it appears, and RETIREMENT PLANS FOR FORE- tecting consumers, increasing clean re- (B) by substituting ‘‘beginning on May 4, CLOSURE RECOVERY RELIEF FOR 2007, and ending on December 31, 2009’’ for newable energy production, and mod- INDIVIDUALS WITH MORTGAGES ON ‘‘beginning on August 28, 2005, and ending on THEIR PRINCIPAL RESIDENCES. ernizing our energy infrastructure, and December 31, 2007’’ in paragraph (2) thereof. (a) IN GENERAL.—Section 72(t) of the Inter- to amend the Internal Revenue Code of (7) TREATMENT OF PUBLIC UTILITY PROPERTY nal Revenue Code of 1986 shall not apply to 1986 to provide tax incentives for the DISASTER LOSSES.—Section 1400N(o) of such any qualified foreclosure recovery distribu- production of renewable energy and en- Code. tion. ergy conservation; which was ordered (8) TREATMENT OF NET OPERATING LOSSES (b) LIMITATIONS.— to lie on the table; as follows: ATTRIBUTABLE TO STORM LOSSES.—Section (1) IN GENERAL.—For purposes of this sec- 1400N(k) of such Code— tion, the aggregate amount of distributions At the end add the following: (A) by substituting ‘‘qualified Recovery received by an individual which may be TITLE—DISASTER TAX RELIEF Assistance loss’’ for ‘‘qualified Gulf Oppor- treated as qualified foreclosure recovery dis- ASSISTANCE tunity Zone loss’’ each place it appears, tributions for any taxable year shall not ex- SEC. lll. TEMPORARY TAX RELIEF FOR KIOWA (B) by substituting ‘‘after May 3, 2007, and ceed the lesser of— COUNTY, KANSAS AND SUR- before on January 1, 2010’’ for ‘‘after August (A) the individual’s qualified mortgage ex- ROUNDING AREA. 27, 2005, and before January 1, 2008’’ each penditures for the taxable year, or The following provisions of or relating to place it appears, (B) the excess (if any) of— the Internal Revenue Code of 1986 shall (C) by substituting ‘‘May 4, 2007’’ for ‘‘Au- (i) $25,000, over apply, in addition to the areas described in gust 28, 2005’’ in paragraph (2)(B)(ii)(I) there- (ii) the aggregate amounts treated as such provisions, to an area with respect to of, qualified foreclosure recovery distributions which a major disaster has been declared by (D) by substituting ‘‘qualified Recovery received by such individual for all prior tax- the President under section 401 of the Robert Assistance property’’ for ‘‘qualified Gulf Op- able years. T. Stafford Disaster Relief and Emergency portunity Zone property’’ in paragraph (2) TREATMENT OF PLAN DISTRIBUTIONS.—If Assistance Act (FEMA-1699-DR, as in effect (2)(B)(iv) thereof, and a distribution to an individual would (with- on the date of the enactment of this Act) by (E) by substituting ‘‘qualified Recovery As- out regard to paragraph (1)) be a qualified reason of severe storms and tornados begin- sistance casualty loss’’ for ‘‘qualified Gulf foreclosure recovery distribution, a plan ning on May 4, 2007, and determined by the Opportunity Zone casualty loss’’ each place shall not be treated as violating any require- President to warrant individual or individual it appears. ment of the Internal Revenue Code of 1986 and public assistance from the Federal Gov- (9) TREATMENT OF REPRESENTATIONS RE- merely because the plan treats such distribu- ernment under such Act with respect to GARDING INCOME ELIGIBILITY FOR PURPOSES OF tion as a qualified foreclosure recovery dis- damages attributed to such storms and tor- QUALIFIED RENTAL PROJECT REQUIREMENTS.— tribution, unless the aggregate amount of nados: Section 1400N(n) of such Code. such distributions from all plans maintained (1) SUSPENSION OF CERTAIN LIMITATIONS ON (10) SPECIAL RULES FOR USE OF RETIREMENT by the employer (and any member of any PERSONAL CASUALTY LOSSES.—Section FUNDS.—Section 1400Q of such Code— controlled group which includes the em- 1400S(b)(1) of the Internal Revenue Code of (A) by substituting ‘‘qualified Recovery ployer) to such individual exceeds $25,000. 1986, by substituting ‘‘May 4, 2007’’ for ‘‘Au- Assistance distribution’’ for ‘‘qualified hurri- (3) CONTROLLED GROUP.—For purposes of gust 25, 2005’’. cane distribution’’ each place it appears, paragraph (2), the term ‘‘controlled group’’ (2) EXTENSION OF REPLACEMENT PERIOD FOR (B) by substituting ‘‘on or after May 4, means any group treated as a single em- NONRECOGNITION OF GAIN.—Section 405 of the 2007, and before January 1, 2009’’ for ‘‘on or ployer under subsection (b), (c), (m), or (o) of Katrina Emergency Tax Relief Act of 2005, after August 25, 2005, and before January 1, section 414 of such Code. by substituting ‘‘on or after May 4, 2007, by 2007’’ in subsection (a)(4)(A)(i), (c) AMOUNT DISTRIBUTED MAY BE REPAID.—

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(1) IN GENERAL.—Any individual who re- the taxpayer may be allocated between the (II) ending on the date described in sub- ceives a qualified foreclosure recovery dis- spouses in such manner as they elect. paragraph (A)(ii) (or, if earlier, the date the tribution may, at any time during the 3-year (3) ELIGIBLE RETIREMENT PLAN.—The term plan or contract amendment is adopted), period beginning on the day after the date on ‘‘eligible retirement plan’’ shall have the the plan or contract is operated as if such which such distribution was received, make meaning given such term by section plan or contract amendment were in effect; one or more contributions in an aggregate 402(c)(8)(B) of such Code. and amount not to exceed the amount of such (4) PRINCIPAL RESIDENCE.—The term ‘‘prin- (ii) such plan or contract amendment ap- distribution to an eligible retirement plan of cipal residence’’ has the same meaning as plies retroactively for such period. which such individual is a beneficiary and to when used in section 121 of such Code. which a rollover contribution of such dis- (e) INCOME INCLUSION SPREAD OVER 3-YEAR SA 4424. Mrs. HUTCHISON (for her- tribution could be made under section 402(c), PERIOD FOR QUALIFIED FORECLOSURE RECOV- self and Mr. NELSON of Florida) sub- 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16) of ERY DISTRIBUTIONS.— mitted an amendment intended to be the Internal Revenue Code of 1986, as the (1) IN GENERAL.—In the case of any quali- case may be. fied foreclosure recovery distribution, unless proposed to amendment SA 4387 sub- (2) TREATMENT OF REPAYMENTS OF DIS- the taxpayer elects not to have this submitted by Mr. DODD (for himself and TRIBUTIONS FROM ELIGIBLE RETIREMENT PLANS section apply for any taxable year, any Mr. SHELBY) to the bill H.R. 3221, mov- OTHER THAN IRAS.—For purposes of such amount required to be included in gross in- ing the United States toward greater Code, if a contribution is made pursuant to come for such taxable year shall be so in- energy independence and security, de- paragraph (1) with respect to a qualified fore- cluded ratably over the 3-taxable year period veloping innovative new technologies, closure recovery distribution from an eligi- beginning with such taxable year. ble retirement plan other than an individual reducing carbon emissions, creating (2) SPECIAL RULE.—For purposes of para- green jobs, protecting consumers, in- retirement plan, then the taxpayer shall, to graph (1), rules similar to the rules of sub- the extent of the amount of the contribu- paragraph (E) of section 408A(d)(3) of the In- creasing clean renewable energy pro- tion, be treated as having received the quali- ternal Revenue Code of 1986 shall apply. duction, and modernizing our energy fied foreclosure recovery distribution in an (f) SPECIAL RULES.— infrastructure, and to amend the Inter- eligible rollover distribution (as defined in (1) EXEMPTION OF DISTRIBUTIONS FROM nal Revenue Code of 1986 to provide tax section 402(c)(4) of such Code) and as having TRUSTEE TO TRUSTEE TRANSFER AND WITH- incentives for the production of renew- transferred the amount to the eligible retire- HOLDING RULES.—For purposes of sections able energy and energy conservation; ment plan in a direct trustee to trustee 401(a)(31), 402(f), and 3405 of the Internal Rev- transfer within 60 days of the distribution. which was ordered to lie on the table; enue Code of 1986, qualified foreclosure re- as follows: (3) TREATMENT OF REPAYMENTS FOR DIS- covery distributions shall not be treated as TRIBUTIONS FROM IRAS.—For purposes of such eligible rollover distributions. At the end of title IV, insert the following: Code, if a contribution is made pursuant to (2) QUALIFIED FORECLOSURE RECOVERY DIS- SEC. 605. NEW RESTAURANT PROPERTY TREATED paragraph (1) with respect to a qualified fore- TRIBUTIONS TREATED AS MEETING PLAN DIS- AS 15-YEAR PROPERTY. closure recovery distribution from an indi- TRIBUTION REQUIREMENTS.—For purposes of (a) IN GENERAL.—Section 168(e)(3)(E) of the vidual retirement plan (as defined by section such Code, a qualified foreclosure recovery Internal Revenue Code of 1986 (defining 15- 7701(a)(37) of such Code), then, to the extent distribution shall be treated as meeting the year property) is amended by striking ‘‘and’’ of the amount of the contribution, the quali- requirements of sections 401(k)(2)(B)(i), at the end of clause (vii), by striking the pe- fied foreclosure recovery distribution shall 403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A) of riod at the end of clause (viii) and inserting be treated as a distribution described in sec- such Code. ‘‘, and’’, and by adding at the end the fol- tion 408(d)(3) of such Code and as having been (3) SUBSTANTIALLY EQUAL PERIODIC PAY- lowing new clause: transferred to the eligible retirement plan in MENTS.—A qualified foreclosure recovery dis- ‘‘(ix) any qualified new restaurant property a direct trustee to trustee transfer within 60 tribution— placed in service before the date that is 12 days of the distribution. (A) shall be disregarded in determining months after the date of the enactment of (4) APPLICATION TO ELIGIBLE RETIREMENT whether a payment is a part of a series of this clause.’’. PLANS.— substantially equal periodic payment under (b) QUALIFIED NEW RESTAURANT PROP- (A) IN GENERAL.—Nothing in this section ERTY.—Subsection (e) of section 168 of such shall be treated as requiring an eligible re- section 72(t)(2)(A)(iv) of such Code, and Code is amended by adding at the end the tirement plan to accept any contributions (B) shall not constitute a change in sub- following new paragraph: described in this subsection. stantially equal periodic payments under section 72(t)(4) of such Code. ‘‘(8) QUALIFIED NEW RESTAURANT PROP- (B) QUALIFICATION.—An eligible retirement ERTY.—The term ‘qualified new restaurant plan shall not be treated as violating any re- (g) PROVISIONS RELATING TO PLAN AMEND- property’ means any section 1250 property quirement of Federal law solely by reason of MENTS.— which is a building if more than 50 percent of the acceptance of contributions described in (1) IN GENERAL.—If this subsection applies the building’s square footage is devoted to this subparagraph. to any amendment to any plan or annuity preparation of, and seating for on-premises (d) DEFINITIONS.—For purposes of this sec- contract, such plan or contract shall be tion— treated as being operated in accordance with consumption of, prepared meals.’’. (c) EFFECTIVE DATE.—The amendments (1) QUALIFIED FORECLOSURE RECOVERY DIS- the terms of the plan during the period de- made by this section shall apply to property TRIBUTION.—The term ‘‘qualified foreclosure scribed in paragraph (2)(B)(i). recovery distribution’’ means any distribu- (2) AMENDMENTS TO WHICH SUBSECTION AP- placed in service after the date of the enact- tion to an individual from an eligible retire- PLIES.— ment of this Act. ment plan which is made— (A) IN GENERAL.—This subsection shall (A) on or after the date of the enactment of apply to any amendment to any plan or an- SA 4425. Mrs. HUTCHISON (for her- this Act and before January 1, 2010, and nuity contract which is made— self and Mr. NELSON of Florida) sub- (B) during a taxable year during which the (i) pursuant to the provisions this section, mitted an amendment intended to be individual has qualifying mortgage expendi- or pursuant to any regulation issued by the proposed by her to the bill H.R. 3221, tures. Secretary of the Treasury or the Secretary moving the United States toward (2) QUALIFYING MORTGAGE EXPENDITURES.— of Labor under this section, and greater energy independence and secu- (A) IN GENERAL.—The term ‘‘qualifying (ii) on or before the last day of the first plan year beginning on or after January 1, rity, developing innovative new tech- mortgage expenditures’’ means any of the nologies, reducing carbon emissions, following expenditures: 2010, or such later date as the Secretary of (i) Payment of principal or interest on an the Treasury may prescribe. creating green jobs, protecting con- applicable mortgage. In the case of a governmental plan (as de- sumers, increasing clean renewable en- (ii) Payment of costs paid or incurred in fined in section 414(d) of the Internal Rev- ergy production, and modernizing our refinancing, or modifying the terms of, an enue Code of 1986), clause (ii) shall be applied energy infrastructure, and to amend applicable mortgage. by substituting the date which is 2 years the Internal Revenue Code of 1986 to (B) APPLICABLE MORTGAGE.—The term ‘‘ap- after the date otherwise applied under clause provide tax incentives for the produc- plicable mortgage’’ means a mortgage (ii). tion of renewable energy and energy which— (B) CONDITIONS.—This subsection shall not conservation; which was ordered to lie (i) was entered into after December 31, apply to any amendment unless— 1999, and before the date of the enactment of (i) during the period— on the table; as follows: this Act, and (I) beginning on the date the legislative or At the end of title VI, insert the following: (ii) constitutes a security interest in the regulatory amendment described in subpara- SEC. 605. NEW RESTAURANT PROPERTY TREATED principal residence of the mortgagor. graph (A)(i) takes effect (or in the case of a AS 20-YEAR PROPERTY. (C) JOINT FILERS.—In the case of married plan or contract amendment not required by (a) IN GENERAL.—Subparagraph (F) of sec- individuals filing a joint return under sec- such legislative or regulatory amendment, tion 168(e)(3) of the Internal Revenue Code of tion 6013 of the Internal Revenue Code of any later effective date specified by the 1986 (defining 20-year property) is amended 1986, the qualifying mortgage expenditures of plan), and to read as follows:

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‘‘(F) 20-YEAR PROPERTY.—The term ‘20-year Sec. 117. Required registration under Securi- TITLE III—TRANSFER OF FUNCTIONS, property’ means— ties Exchange Act of 1934. PERSONNEL, AND PROPERTY OF OF- ‘‘(i) initial clearing and grading land im- Sec. 118. Liaison with Financial Institutions FICE OF FEDERAL HOUSING ENTER- provements with respect to any electric util- Examination Council. PRISE OVERSIGHT, FEDERAL HOUSING ity transmission and distribution plant, and Sec. 119. Guarantee fee study. FINANCE BOARD, AND DEPARTMENT ‘‘(ii) any qualified new restaurant property Sec. 120. Conforming amendments. OF HOUSING AND URBAN DEVELOP- placed in service before the date that is 12 MENT Subtitle B—Improvement of Mission months after the date of the enactment of Supervision Subtitle A—Office of Federal Housing this clause.’’. Enterprise Oversight Sec. 131. Transfer of product approval and (b) QUALIFIED NEW RESTAURANT PROP- Sec. 301. Abolishment of OFHEO. ERTY.—Subsection (e) of section 168 of such housing goal oversight. Sec. 302. Continuation and coordination of Code is amended by adding at the end the Sec. 132. Review of enterprise products. certain regulations. following new paragraph: Sec. 133. Conforming loan limits. Sec. 303. Transfer and rights of employees of ‘‘(8) QUALIFIED NEW RESTAURANT PROP- Sec. 134. Annual housing report regarding OFHEO. ERTY.—The term ‘qualified new restaurant regulated entities. Sec. 304. Transfer of property and facilities. property’ means any section 1250 property Sec. 135. Annual reports by regulated enti- Subtitle B—Federal Housing Finance Board which is a building if more than 50 percent of ties on affordable housing Sec. 321. Abolishment of the Federal Hous- the building’s square footage is devoted to stock. ing Finance Board. preparation of, and seating for on-premises Sec. 136. Mortgagor identification require- Sec. 322. Continuation and coordination of consumption of, prepared meals.’’. ments for mortgages of regu- certain regulations. (c) EFFECTIVE DATE.—The amendments lated entities. Sec. 323. Transfer and rights of employees of made by this section shall apply to property Sec. 137. Revision of housing goals. the Federal Housing Finance placed in service after the date of the enact- Sec. 138. Duty to serve underserved markets. Board. ment of this Act. Sec. 139. Monitoring and enforcing compli- Sec. 324. Transfer of property and facilities. Subtitle C—Department of Housing and SA 4426. Mr. MARTINEZ (for himself ance with housing goals. Sec. 140. Affordable Housing Fund. Urban Development and Mr. CARPER) submitted an amend- Sec. 141. Consistency with mission. Sec. 341. Termination of enterprise-related ment intended to be proposed to Sec. 142. Enforcement. functions. amendment SA 4387 submitted by Mr. Sec. 143. Conforming amendments. Sec. 342. Continuation and coordination of DODD (for himself and Mr. SHELBY) to certain regulations. the bill H.R. 3221, moving the United Subtitle C—Prompt Corrective Action Sec. 343. Transfer and rights of employees of States toward greater energy independ- Sec. 151. Capital classifications. Department of Housing and Sec. 152. Supervisory actions applicable to Urban Development. ence and security, developing innova- Sec. 344. Transfer of appropriations, prop- tive new technologies, reducing carbon undercapitalized regulated entities. erty, and facilities. emissions, creating green jobs, pro- Sec. 153. Supervisory actions applicable to SEC. 2. DEFINITIONS. tecting consumers, increasing clean re- significantly undercapitalized Section 1303 of the Housing and Commu- newable energy production, and mod- regulated entities. nity Development Act of 1992 (12 U.S.C. 4502) ernizing our energy infrastructure, and Sec. 154. Authority over critically under- is amended— to amend the Internal Revenue Code of capitalized regulated entities. (1) in paragraph (7), by striking ‘‘an enterprise’’ and inserting ‘‘a regulated entity’’; 1986 to provide tax incentives for the Sec. 155. Conforming amendments. (2) by striking ‘‘the enterprise’’ each place production of renewable energy and en- Subtitle D—Enforcement Actions such term appears (except in paragraphs (4) ergy conservation; which was ordered Sec. 161. Cease-and-desist proceedings. and (18)) and inserting ‘‘the regulated enti- to lie on the table; as follows: Sec. 162. Temporary cease-and-desist pro- ty’’; At the end, add the following: ceedings. (3) in paragraph (5), by striking ‘‘Office of DIVISION 2 Sec. 163. Prejudgment attachment. Federal Housing Enterprise Oversight of the Sec. 164. Enforcement and jurisdiction. Department of Housing and Urban Develop- SECTION 1. SHORT TITLE AND TABLE OF CON- ment’’ and inserting ‘‘Federal Housing Fi- TENTS. Sec. 165. Civil money penalties. nance Agency’’; (a) SHORT TITLE.—This Division may be Sec. 166. Removal and prohibition authority. (4) in each of paragraphs (8), (9), (10), and cited as the ‘‘Federal Housing Finance Re- Sec. 167. Criminal penalty. (19), by striking ‘‘Secretary’’ each place that form Act of 2007’’. Sec. 168. Subpoena authority. term appears and inserting ‘‘Director’’; (b) TABLE OF CONTENTS.—The table of con- Sec. 169. Conforming amendments. (5) in paragraph (13), by inserting ‘‘, with tents for this Division is as follows: Subtitle E—General Provisions respect to an enterprise,’’ after ‘‘means’’; Sec. 1. Short title and table of contents. Sec. 181. Boards of enterprises. (6) by redesignating paragraphs (16) Sec. 2. Definitions. through (19) as paragraphs (20) through (23), Sec. 182. Report on portfolio operations, TITLE I—REFORM OF REGULATION OF respectively; safety and soundness, and mis- ENTERPRISES AND FEDERAL HOME (7) by striking paragraphs (14) and (15) and sion of enterprises. LOAN BANKS inserting the following new paragraphs: Sec. 183. Conforming and technical amend- ‘‘(18) REGULATED ENTITY.—The term ‘regu- Subtitle A—Improvement of Safety and ments. Soundness lated entity’ means— Sec. 184. Study of alternative secondary Sec. 101. Establishment of the Federal Hous- ‘‘(A) the Federal National Mortgage Asso- market systems. ciation and any affiliate thereof; ing Finance Agency. Sec. 185. Effective date. Sec. 102. Duties and authorities of Director. ‘‘(B) the Federal Home Loan Mortgage Cor- Sec. 103. Federal Housing Enterprise Board. TITLE II—FEDERAL HOME LOAN BANKS poration and any affiliate thereof; and Sec. 104. Authority to require reports by Sec. 201. Definitions. ‘‘(C) each Federal home loan bank. regulated entities. Sec. 202. Directors. ‘‘(19) REGULATED ENTITY-AFFILIATED PARTY.—The term ‘regulated entity-affili- Sec. 105. Disclosure of income and chari- Sec. 203. Federal Housing Finance Agency ated party’ means— table contributions by enter- oversight of Federal Home ‘‘(A) any director, officer, employee, or prises. Loan Banks. agent for, a regulated entity, or controlling Sec. 106. Assessments. Sec. 204. Joint activities of Banks. Sec. 107. Examiners and accountants. shareholder of an enterprise; Sec. 205. Sharing of information between Sec. 108. Prohibition and withholding of ex- ‘‘(B) any shareholder, affiliate, consultant, Federal Home Loan Banks. ecutive compensation. or joint venture partner of a regulated enti- Sec. 109. Reviews of regulated entities. Sec. 206. Reorganization of Banks and vol- ty, and any other person, as determined by Sec. 110. Inclusion of minorities and women; untary merger. the Director (by regulation or on a case-by- diversity in Agency workforce. Sec. 207. Securities and Exchange Commis- case basis) that participates in the conduct Sec. 111. Regulations and orders. sion disclosure. of the affairs of a regulated entity, except Sec. 112. Non-waiver of privileges. Sec. 208. Community financial institution that a shareholder of a regulated entity shall Sec. 113. Risk-Based capital requirements. members. not be considered to have participated in the Sec. 114. Minimum and critical capital lev- Sec. 209. Technical and conforming amend- affairs of that regulated entity solely by rea- els. ments. son of being a member or customer of the Sec. 115. Review of and authority over enter- Sec. 210. Study of affordable housing pro- regulated entity; prise assets and liabilities. gram use for long-term care fa- ‘‘(C) any independent contractor for a reg- Sec. 116. Corporate governance of enter- cilities. ulated entity (including any attorney, ap- prises. Sec. 211. Effective date. praiser, or accountant), if—

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00185 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.118 S03APPT1 ccoleman on PRODPC75 with SENATE S2552 CONGRESSIONAL RECORD — SENATE April 3, 2008 ‘‘(i) the independent contractor knowingly the Federal Housing Finance Agency, who ‘‘(1) have any direct or indirect financial or recklessly participates in— shall be the head of the Agency. interest in any regulated entity or regulated ‘‘(I) any violation of any law or regulation; ‘‘(b) APPOINTMENT; TERM.— entity-affiliated party; ‘‘(II) any breach of fiduciary duty; or ‘‘(1) APPOINTMENT.—The Director shall be ‘‘(2) hold any office, position, or employ- ‘‘(III) any unsafe or unsound practice; and appointed by the President, by and with the ment in any regulated entity or regulated ‘‘(ii) such violation, breach, or practice advice and consent of the Senate, from entity-affiliated party; or caused, or is likely to cause, more than a among individuals who are citizens of the ‘‘(3) have served as an executive officer or minimal financial loss to, or a significant United States, have a demonstrated under- director of any regulated entity, or regulated adverse effect on, the regulated entity; and standing of financial management or over- entity-affiliated party, at any time during ‘‘(D) any not-for-profit corporation that re- sight, and have a demonstrated under- the 3-year period ending on the date of ap- ceives its principal funding, on an ongoing standing of capital markets, including the pointment of such individual as Director or basis, from any regulated entity.’’. mortgage securities markets and housing fi- Deputy Director. (8) by redesignating paragraphs (8) through nance. ‘‘(g) OMBUDSMAN.—The Director shall es- (13) as paragraphs (12) through (17), respec- ‘‘(2) TERM AND REMOVAL.—The Director tablish the position of the Ombudsman in tively; and shall be appointed for a term of 5 years and the Agency. The Director shall provide that (9) by inserting after paragraph (7) the fol- may be removed by the President only for the Ombudsman will consider complaints lowing new paragraph: cause. and appeals from any regulated entity and ‘‘(11) FEDERAL HOME LOAN BANK.—The term ‘‘(3) VACANCY.—A vacancy in the position any person that has a business relationship ‘Federal home loan bank’ means a bank es- of Director that occurs before the expiration with a regulated entity and shall specify the tablished under the authority of the Federal of the term for which a Director was ap- duties and authority of the Ombudsman.’’. Home Loan Bank Act.’’; pointed shall be filled in the manner estab- (b) APPOINTMENT OF DIRECTOR.—Notwith- (10) by redesignating paragraphs (2) lished under paragraph (1), and the Director standing any other provision of law or of this through (7) as paragraphs (5) through (10), re- appointed to fill such vacancy shall be ap- Division, the President may, any time after spectively; and pointed only for the remainder of such term. the date of the enactment of this Act, appoint an individual to serve as the Director (11) by inserting after paragraph (1) the fol- ‘‘(4) SERVICE AFTER END OF TERM.—An indi- lowing new paragraphs: vidual may serve as the Director after the of the Federal Housing Finance Agency, as such office is established by the amendment ‘‘(2) AGENCY.—The term ‘Agency’ means expiration of the term for which appointed the Federal Housing Finance Agency. until a successor has been appointed. made by subsection (a). This subsection shall take effect on the date of the enactment of ‘‘(3) AUTHORIZING STATUTES.—The term ‘au- ‘‘(5) TRANSITIONAL PROVISION.—Notwith- this Act. thorizing statutes’ means— standing paragraphs (1) and (2), the Director ‘‘(A) the Federal National Mortgage Asso- of the Office of Federal Housing Enterprise SEC. 102. DUTIES AND AUTHORITIES OF DIREC- TOR. ciation Charter Act; Oversight of the Department of Housing and (a) IN GENERAL.—The Housing and Commu- ‘‘(B) the Federal Home Loan Mortgage Cor- Urban Development shall serve as the Direc- nity Development Act of 1992 (12 U.S.C. 4513) poration Act; and tor until a successor has been appointed is amended by striking section 1313 and in- ‘‘(C) the Federal Home Loan Bank Act. under paragraph (1). serting the following new sections: ‘‘(4) BOARD.—The term ‘Board’ means the ‘‘(c) DEPUTY DIRECTOR OF THE DIVISION OF Federal Housing Enterprise Board estab- ‘‘SEC. 1313. DUTIES AND AUTHORITIES OF DIREC- ENTERPRISE REGULATION.— TOR. lished under section 1313B.’’. ‘‘(1) IN GENERAL.—The Agency shall have a ‘‘(a) DUTIES.— TITLE I—REFORM OF REGULATION OF EN- Deputy Director of the Division of Enter- ‘‘(1) PRINCIPAL DUTIES.—The principal du- TERPRISES AND FEDERAL HOME LOAN prise Regulation, who shall be appointed by ties of the Director shall be— BANKS the Director from among individuals who are ‘‘(A) to oversee the operations of each reg- Subtitle A—Improvement of Safety and citizens of the United States, and have a ulated entity and any joint office of the Fed- Soundness demonstrated understanding of financial eral Home Loan Banks; and management or oversight and of mortgage SEC. 101. ESTABLISHMENT OF THE FEDERAL ‘‘(B) to ensure that— HOUSING FINANCE AGENCY. securities markets and housing finance. ‘‘(i) each regulated entity operates in a (a) IN GENERAL.—The Housing and Commu- ‘‘(2) FUNCTIONS.—The Deputy Director of safe and sound manner, including mainte- nity Development Act of 1992 (12 U.S.C. 4501 the Division of Enterprise Regulation shall nance of adequate capital and internal con- et seq.) is amended by striking sections 1311 have such functions, powers, and duties with trols; and 1312 and inserting the following: respect to the oversight of the enterprises as ‘‘(ii) the operations and activities of each ‘‘SEC. 1311. ESTABLISHMENT OF THE FEDERAL the Director shall prescribe. regulated entity foster liquid, efficient, com- HOUSING FINANCE AGENCY. ‘‘(d) DEPUTY DIRECTOR OF THE DIVISION OF petitive, and resilient national housing fi- ‘‘(a) ESTABLISHMENT.—There is established FEDERAL HOME LOAN BANK REGULATION.— nance markets that minimize the cost of the Federal Housing Finance Agency, which ‘‘(1) IN GENERAL.—The Agency shall have a housing finance (including activities relating shall be an independent agency of the Fed- Deputy Director of the Division of Federal to mortgages on housing for low- and mod- eral Government. Home Loan Bank Regulation, who shall be erate-income families involving a reasonable ‘‘(b) GENERAL SUPERVISORY AND REGU- appointed by the Director from among indi- economic return that may be less than the LATORY AUTHORITY.— viduals who are citizens of the United return earned on other activities); ‘‘(1) IN GENERAL.—Each regulated entity States, have a demonstrated understanding ‘‘(iii) each regulated entity complies with shall, to the extent provided in this title, be of financial management or oversight and of this title and the rules, regulations, guide- subject to the supervision and regulation of the Federal Home Loan Bank System and lines, and orders issued under this title and the Agency. housing finance. the authorizing statutes; and ‘‘(2) AUTHORITY OVER FANNIE MAE, FREDDIE ‘‘(2) FUNCTIONS.—The Deputy Director of ‘‘(iv) each regulated entity carries out its MAC, AND FEDERAL HOME LOAN BANKS.—The the Division of Federal Home Loan Bank statutory mission only through activities Director of the Federal Housing Finance Regulation shall have such functions, pow- that are consistent with this title and the Agency shall have general supervisory and ers, and duties with respect to the oversight authorizing statutes. regulatory authority over each regulated en- of the Federal home loan banks as the Direc- ‘‘(2) SCOPE OF AUTHORITY.—The authority tity and shall exercise such general regu- tor shall prescribe. of the Director shall include the authority— latory and supervisory authority, including ‘‘(e) DEPUTY DIRECTOR FOR HOUSING.— ‘‘(A) to review and, if warranted based on such duties and authorities set forth under ‘‘(1) IN GENERAL.—The Agency shall have a the principal duties described in paragraph section 1313 of this Act, to ensure that the Deputy Director for Housing, who shall be (1), reject any acquisition or transfer of a purposes of this Act, the authorizing stat- appointed by the Director from among indi- controlling interest in an enterprise; and utes, and any other applicable law are car- viduals who are citizens of the United ‘‘(B) to exercise such incidental powers as ried out. The Director shall have the same States, and have a demonstrated under- may be necessary or appropriate to fulfill supervisory and regulatory authority over standing of the housing markets and housing the duties and responsibilities of the Direc- any joint office of the Federal home loan finance and of community and economic de- tor in the supervision and regulation of each banks, including the Office of Finance of the velopment. regulated entity. Federal Home Loan Banks, as the Director ‘‘(2) FUNCTIONS.—The Deputy Director for ‘‘(b) DELEGATION OF AUTHORITY.—The Di- has over the individual Federal home loan Housing shall have such functions, powers, rector may delegate to officers or employees banks. and duties with respect to the oversight of of the Agency, including each of the Deputy ‘‘(c) SAVINGS PROVISION.—The authority of the housing mission and goals of the enter- Directors, any of the functions, powers, or the Director to take actions under subtitles prises, and with respect to oversight of the duties of the Director, as the Director con- B and C shall not in any way limit the gen- housing finance and community and eco- siders appropriate. eral supervisory and regulatory authority nomic development mission of the Federal ‘‘(c) LITIGATION AUTHORITY.— granted to the Director. home loan banks, as the Director shall pre- ‘‘(1) IN GENERAL.—In enforcing any provi- ‘‘SEC. 1312. DIRECTOR. scribe. sion of this title, any regulation or order ‘‘(a) ESTABLISHMENT OF POSITION.—There is ‘‘(f) LIMITATIONS.—The Director and each prescribed under this title, or any other pro- established the position of the Director of of the Deputy Directors may not— vision of law, rule, regulation, or order, or in

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00186 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.129 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2553 any other action, suit, or proceeding to ‘‘(12) such other operational and manage- derwent extraordinary growth, as defined by which the Director is a party or in which the ment standards as the Director determines the Director. Director is interested, and in the administra- to be appropriate. ‘‘(c) OTHER ENFORCEMENT AUTHORITY NOT tion of conservatorships and receiverships, ‘‘(b) FAILURE TO MEET STANDARDS.— AFFECTED.—The authority of the Director the Director may act in the Director’s own ‘‘(1) PLAN REQUIREMENT.— under this section is in addition to any other name and through the Director’s own attor- ‘‘(A) IN GENERAL.—If the Director deter- authority of the Director.’’. (b) INDEPENDENCE IN CONGRESSIONAL TESTI- neys, or request that the Attorney General mines that a regulated entity fails to meet MONY AND RECOMMENDATIONS.—Section 111 of of the United States act on behalf of the Di- any standard established under subsection Public Law 93–495 (12 U.S.C. 250) is amended rector. (a)— by striking ‘‘the Federal Housing Finance ‘‘(2) CONSULTATION WITH ATTORNEY GEN- ‘‘(i) if such standard is established by regu- Board’’ and inserting ‘‘the Director of the ERAL.—The Director shall provide notice to, lation, the Director shall require the regu- Federal Housing Finance Agency’’. and consult with, the Attorney General of lated entity to submit an acceptable plan to the United States before taking an action the Director within the time allowed under SEC. 103. FEDERAL HOUSING ENTERPRISE BOARD. under paragraph (1) of this subsection or subparagraph (C); and (a) IN GENERAL.—Title XIII of the Housing under section 1344(a), 1345(d), 1348(c), 1372(e), ‘‘(ii) if such standard is established by 1375(a), 1376(d), or 1379D(c), except that, if the and Community Development Act of 1992 (12 guideline, the Director may require the regu- Director determines that any delay caused U.S.C. 4501 et seq.) is amended by inserting lated entity to submit a plan described in by such prior notice and consultation may after section 1313A, as added by section 102 of clause (i). adversely affect the safety and soundness re- this Division, the following new section: ‘‘(B) CONTENTS.—Any plan required under sponsibilities of the Director under this title, subparagraph (A) shall specify the actions ‘‘SEC. 1313B. FEDERAL HOUSING ENTERPRISE the Director shall notify the Attorney Gen- BOARD. that the regulated entity will take to correct eral as soon as reasonably possible after tak- ‘‘(a) IN GENERAL.—There is established the the deficiency. If the regulated entity is ing such action. Federal Housing Enterprise Board, which undercapitalized, the plan may be a part of ‘‘(3) SUBJECT TO SUIT.—Except as otherwise shall advise the Director with respect to the capital restoration plan for the regulated provided by law, the Director shall be sub- overall strategies and policies in carrying entity under section 1369C. ject to suit (other than suits on claims for out the duties of the Director under this ‘‘(C) DEADLINES FOR SUBMISSION AND RE- money damages) by a regulated entity or di- title. VIEW.—The Director shall by regulation es- rector or officer thereof with respect to any ‘‘(b) LIMITATIONS.—The Board may not ex- matter under this title or any other applica- tablish deadlines that— ercise any executive authority, and the Di- ble provision of law, rule, order, or regula- ‘‘(i) provide the regulated entities with rector may not delegate to the Board any of tion under this title, in the United States reasonable time to submit plans required the functions, powers, or duties of the Direc- district court for the judicial district in under subparagraph (A), and generally re- tor. which the regulated entity has its principal quire a regulated entity to submit a plan not ‘‘(c) COMPOSITION.—The Board shall be place of business, or in the United States later than 30 days after the Director deter- comprised of 3 members, of whom— District Court for the District of Columbia, mines that the entity fails to meet any ‘‘(1) one member shall be the Secretary of and the Director may be served with process standard established under subsection (a); the Treasury; in the manner prescribed by the Federal and ‘‘(2) one member shall be the Secretary of Rules of Civil Procedure. ‘‘(ii) require the Director to act on plans Housing and Urban Development; and ‘‘SEC. 1313A. PRUDENTIAL MANAGEMENT AND OP- expeditiously, and generally not later than ‘‘(3) one member shall be the Director, who ERATIONS STANDARDS. 30 days after the plan is submitted. shall serve as the Chairperson of the Board. ‘‘(a) STANDARDS.—The Director shall estab- ‘‘(2) REQUIRED ORDER UPON FAILURE TO SUB- ‘‘(d) MEETINGS.— lish standards, by regulation, guideline, or MIT OR IMPLEMENT PLAN.—If a regulated enti- ‘‘(1) IN GENERAL.—The Board shall meet order, for each regulated entity relating to— ty fails to submit an acceptable plan within upon notice by the Director, but in no event ‘‘(1) adequacy of internal controls and in- the time allowed under paragraph (1)(C), or shall the Board meet less frequently than formation systems, including information fails in any material respect to implement a once every 3 months. security and privacy policies and practices, plan accepted by the Director, the following ‘‘(2) SPECIAL MEETINGS.—Either the Sec- taking into account the nature and scale of shall apply: retary of the Treasury or the Secretary of business operations; ‘‘(A) REQUIRED CORRECTION OF DEFI- Housing and Urban Development may, upon ‘‘(2) independence and adequacy of internal CIENCY.—The Director shall, by order, re- giving written notice to the Director, require audit systems; quire the regulated entity to correct the de- a special meeting of the Board. ‘‘(3) management of credit and ficiency. ‘‘(e) TESTIMONY.—On an annual basis, the counterparty risk, including systems to ‘‘(B) OTHER AUTHORITY.—The Director may, Board shall testify before Congress regard- identify concentrations of credit risk and by order, take one or more of the following ing— prudential limits to restrict exposure of the actions until the deficiency is corrected: ‘‘(1) the safety and soundness of the regu- regulated entity to a single counterparty or ‘‘(i) Prohibit the regulated entity from per- lated entities; groups of related counterparties; mitting its average total assets (as such ‘‘(2) any material deficiencies in the con- ‘‘(4) management of interest rate risk ex- term is defined in section 1316(b)) during any duct of the operations of the regulated enti- posure; calendar quarter to exceed its average total ties; ‘‘(5) management of market risk, including assets during the preceding calendar quarter, ‘‘(3) the overall operational status of the standards that provide for systems that ac- or restrict the rate at which the average regulated entities; curately measure, monitor, and control mar- total assets of the entity may increase from ‘‘(4) an evaluation of the performance of ket risks and, as warranted, that establish one calendar quarter to another. the regulated entities in carrying out their limitations on market risk; ‘‘(ii) Require the regulated entity— respective missions; ‘‘(6) adequacy and maintenance of liquidity ‘‘(I) in the case of an enterprise, to in- ‘‘(5) operations, resources, and performance and reserves; crease its ratio of core capital to assets. of the Agency; and ‘‘(7) management of any asset and invest- ‘‘(II) in the case of a Federal home loan ‘‘(6) such other matters relating to the ment portfolio; bank, to increase its ratio of total capital (as Agency and its fulfillment of its mission, as ‘‘(8) investments and acquisitions by a reg- such term is defined in section 6(a)(5) of the the Board determines appropriate.’’. ulated entity, to ensure that they are con- Federal Home Loan Bank Act (12 U.S.C. (b) ANNUAL REPORT OF THE DIRECTOR.—Sec- sistent with the purposes of this Act and the 1426(a)(5)) to assets. tion 1319B(a) of the Housing and Community authorizing statutes; ‘‘(iii) Require the regulated entity to take Development Act of 1992 (12 U.S.C. 4521 (a)) is ‘‘(9) maintenance of adequate records, in any other action that the Director deter- amended— accordance with consistent accounting poli- mines will better carry out the purposes of (1) in paragraph (3), by striking ‘‘and’’ at cies and practices that enable the Director this section than any of the actions de- the end; and to evaluate the financial condition of the scribed in this subparagraph. (2) by striking paragraph (4) and inserting regulated entity; ‘‘(3) MANDATORY RESTRICTIONS.—In com- the following new paragraphs: ‘‘(10) issuance of subordinated debt by that plying with paragraph (2), the Director shall ‘‘(4) an assessment of the Board or any of particular regulated entity, as the Director take one or more of the actions described in its members with respect to— considers necessary; clauses (i) through (iii) of paragraph (2)(B) ‘‘(A) the safety and soundness of the regu- ‘‘(11) overall risk management processes, if— lated entities; including adequacy of oversight by senior ‘‘(A) the Director determines that the reg- ‘‘(B) any material deficiencies in the con- management and the board of directors and ulated entity fails to meet any standard pre- duct of the operations of the regulated enti- of processes and policies to identify, meas- scribed under subsection (a); ties; ure, monitor, and control material risks, in- ‘‘(B) the regulated entity has not corrected ‘‘(C) the overall operational status of the cluding reputational risks, and for adequate, the deficiency; and regulated entities; and well-tested business resumption plans for all ‘‘(C) during the 18-month period before the ‘‘(D) an evaluation of the performance of major systems with remote site facilities to date on which the regulated entity first the regulated entities in carrying out their protect against disruptive events; and failed to meet the standard, the entity un- missions;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00187 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.129 S03APPT1 ccoleman on PRODPC75 with SENATE S2554 CONGRESSIONAL RECORD — SENATE April 3, 2008 ‘‘(5) operations, resources, and performance SEC. 105. DISCLOSURE OF INCOME AND CHARI- ing capital fund in accordance with sub- of the Agency; TABLE CONTRIBUTIONS BY ENTER- section (e); and ‘‘(6) a description of the demographic PRISES. ‘‘(4) the wind up of the affairs of the Office makeup of the workforce of the Agency and Section 1314 of the Housing and Commu- of Federal Housing Enterprise Oversight and the actions taken pursuant to section nity Development Act of 1992 (12 U.S.C. 4514), the Federal Housing Finance Board under 1319A(b) to provide for diversity in the work- as amended by the preceding provisions of title III of the Federal Housing Finance Re- this Division, is further amended by adding force; and form Act of 2007.’’; at the end the following new subsections: ‘‘(7) such other matters relating to the (2) in subsection (b)— ‘‘(d) DISCLOSURE OF CHARITABLE CONTRIBU- Agency and its fulfillment of its mission.’’. (A) in the subsection heading, by striking TIONS BY ENTERPRISES.— ‘‘ENTERPRISES’’ and inserting ‘‘REGULATED ‘‘(1) REQUIRED DISCLOSURE.—The Director SEC. 104. AUTHORITY TO REQUIRE REPORTS BY ENTITIES’’ ; shall, by regulation, require each enterprise REGULATED ENTITIES. (B) by realigning paragraph (2) two ems to submit a report annually, in a format des- Section 1314 of the Housing and Commu- from the left margin, so as to align the left ignated by the Director, containing the fol- margin of such paragraph with the left mar- nity Development Act of 1992 (12 U.S.C. 4514) lowing information: gins of paragraph (1); is amended— ‘‘(A) TOTAL VALUE.—The total value of con- (C) in paragraph (1)— (1) in the section heading, by striking ‘‘EN- tributions made by the enterprise to non- (i) by striking ‘‘Each enterprise’’ and in- TERPRISES’’ and inserting ‘‘REGULATED ENTI- profit organizations during its previous fis- serting ‘‘Each regulated entity’’; TIES’’; cal year. (ii) by striking ‘‘each enterprise’’ and in- (2) in subsection (a)— ‘‘(B) SUBSTANTIAL CONTRIBUTIONS.—If the serting ‘‘each regulated entity’’; and (A) in the subsection heading, by striking value of contributions made by the enter- (iii) by striking ‘‘both enterprises’’ and in- ‘‘SPECIAL REPORTS AND REPORTS OF FINAN- prise to any nonprofit organization during serting ‘‘all of the regulated entities’’; and CIAL CONDITION’’ and inserting ‘‘REGULAR AND its previous fiscal year exceeds the des- (D) in paragraph (3)— SPECIAL REPORTS’’; ignated amount, the name of that organiza- (i) in subparagraph (B), by striking ‘‘sub- (B) in paragraph (1)— tion and the value of contributions. paragraph (A)’’ and inserting ‘‘clause (i)’’; (i) in the paragraph heading, by striking ‘‘(C) SUBSTANTIAL CONTRIBUTIONS TO IN- (ii) by redesignating subparagraphs (A), ‘‘FINANCIAL CONDITION’’ and inserting ‘‘REG- SIDER-AFFILIATED CHARITIES.—Identification (B), and (C) as clauses (i), (ii) and (ii), respec- ULAR REPORTS’’; and of each contribution whose value exceeds the tively, and realigning such clauses, as so re- (ii) by striking ‘‘reports of financial condi- designated amount that were made by the designated, so as to be indented 6 ems from tion and operations’’ and inserting ‘‘regular enterprise during the enterprise’s previous the left margin; reports on the condition (including financial fiscal year to any nonprofit organization of (iii) by striking the matter that precedes condition), management, activities, or oper- which a director, officer, or controlling per- clause (i), as so redesignated, and inserting ations of the regulated entity, as the Direc- son of the enterprise, or a spouse thereof, the following: tor considers appropriate’’; and was a director or trustee, the name of such ‘‘(3) DEFINITION OF TOTAL ASSETS.—For pur- (C) in paragraph (2), after ‘‘submit special nonprofit organization, and the value of the poses of this section, the term ‘total assets’ reports’’ insert ‘‘on any of the topics speci- contribution. means as follows: fied in paragraph (1) or such other topics’’; ‘‘(2) DEFINITIONS.—For purposes of this sub- ‘‘(A) ENTERPRISES.—With respect to an en- and section— terprise, the sum of—’’; and (3) by adding at the end the following new ‘‘(A) the term ‘designated amount’ means (iv) by adding at the end the following new subsection: such amount as may be designated by the Di- subparagraph: rector by regulation, consistent with the ‘‘(c) REPORTS OF FRAUDULENT FINANCIAL ‘‘(B) FEDERAL HOME LOAN BANKS.—With republic interest and the protection of inves- TRANSACTIONS.— spect to a Federal home loan bank, the total tors for purposes of this subsection; and ‘‘(1) REQUIREMENT TO REPORT.—The Direc- assets of the Bank, as determined by the Di- ‘‘(B) the Director may, by such regulations rector in accordance with generally accepted tor shall require a regulated entity to sub- as the Director deems necessary or appro- accounting principles.’’; mit to the Director a timely report upon dis- priate in the public interest, define the (3) by striking subsection (c) and inserting covery by the regulated entity that it has terms officer and controlling person. purchased or sold a fraudulent loan or finan- the following new subsection: ‘‘(3) PUBLIC AVAILABILITY.—The Director cial instrument or suspects a possible fraud shall make the information submitted pursu- ‘‘(c) INCREASED COSTS OF REGULATION.— relating to a purchase or sale of any loan or ant to this subsection publicly available. ‘‘(1) INCREASE FOR INADEQUATE CAPITALIZA- financial instrument. The Director shall re- ‘‘(e) DISCLOSURE OF INCOME.—Each enter- TION.—The semiannual payments made pur- quire the regulated entities to establish and prise shall include, in each annual report suant to subsection (b) by any regulated en- maintain procedures designed to discover filed under section 13 of the Securities Ex- tity that is not classified (for purposes of any such transactions. change Act of 1934 (15 U.S.C. 78m), the in- subtitle B) as adequately capitalized may be ‘‘(2) PROTECTION FROM LIABILITY FOR RE- come reported by the issuer to the Internal increased, as necessary, in the discretion of PORTS.— Revenue Service for the most recent taxable the Director to pay additional estimated ‘‘(A) IN GENERAL.—If a regulated entity year. Such income shall— costs of regulation of the regulated entity. makes a report pursuant to paragraph (1), or ‘‘(1) be presented in a prominent location ‘‘(2) ADJUSTMENT FOR ENFORCEMENT ACTIVI- a regulated entity-affiliated party makes, or in each such report and in a manner that TIES.—The Director may adjust the amounts requires another to make, such a report, and permits a ready comparison of such income of any semiannual payments for an assess- such report is made in a good faith effort to to income otherwise required to be included ment under subsection (a) that are to be paid comply with the requirements of paragraph in such reports under regulations issued pursuant to subsection (b) by a regulated en- (1), such regulated entity or regulated enti- under such section; and tity, as necessary in the discretion of the Di- ty-affiliated party shall not be liable to any ‘‘(2) be submitted to the Securities and Ex- rector, to ensure that the costs of enforce- person under any law or regulation of the change Commission in a form and manner ment activities under this Act for a regu- United States, any constitution, law, or reg- suitable for entry into the EDGAR system of lated entity are borne only by such regulated ulation of any State or political subdivision such Commission for public availability entity. of any State, or under any contract or other under such system.’’. ‘‘(3) ADDITIONAL ASSESSMENT FOR DEFI- legally enforceable agreement (including any SEC. 106. ASSESSMENTS. CIENCIES.—If at any time, as a result of in- arbitration agreement), for such report or Section 1316 of the Housing and Commu- creased costs of regulation of a regulated en- for any failure to provide notice of such re- nity Development Act of 1992 (12 U.S.C. 4516) tity that is not classified (for purposes of port to the person who is the subject of such is amended— subtitle B) as adequately capitalized or as report or any other person identified in the (1) by striking subsection (a) and inserting the result of supervisory or enforcement ac- report. the following new subsection: tivities under this Act for a regulated entity, ‘‘(B) RULE OF CONSTRUCTION.—Subpara- ‘‘(a) ANNUAL ASSESSMENTS.—The Director the amount available from any semiannual graph (A) shall not be construed as cre- shall establish and collect from the regu- payment made by such regulated entity pur- ating— lated entities annual assessments in an suant to subsection (b) is insufficient to ‘‘(i) any inference that the term ‘person’, amount not exceeding the amount sufficient cover the costs of the Agency with respect to as used in such subparagraph, may be con- to provide for reasonable costs and expenses such entity, the Director may make and col- strued more broadly than its ordinary usage of the Agency, including— lect from such regulated entity an imme- so as to include any government or agency of ‘‘(1) the expenses of any examinations diate assessment to cover the amount of government; or under section 1317 of this Act and under sec- such deficiency for the semiannual period. If, ‘‘(ii) any immunity against, or otherwise tion 20 of the Federal Home Loan Bank Act; at the end of any semiannual period during affecting, any civil or criminal action ‘‘(2) the expenses of obtaining any reviews which such an assessment is made, any brought by any government or agency of and credit assessments under section 1319; amount remains from such assessment, such government to enforce any constitution, law, ‘‘(3) such amounts in excess of actual ex- remaining amount shall be deducted from or regulation of such government or agen- penses for any given year as deemed nec- the assessment for such regulated entity for cy.’’. essary by the Director to maintain a work- the following semiannual period.’’;

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(4) in subsection (d), by striking ‘‘If’’ and ‘‘(2) FINANCIAL STATEMENTS.—The Agency services of firms and organizations of cer- inserting ‘‘Except with respect to amounts shall prepare annually a statement of assets tified public accountants for temporary peri- collected pursuant to subsection (a)(3), if’’; and liabilities and surplus or deficit; a state- ods or for special purposes. Upon the request and ment of income and expenses; and a state- of the Comptroller General, the Director of (5) by striking subsections (e) through (g) ment of sources and application of funds. the Agency shall transfer to the Government and inserting the following new subsections: ‘‘(3) FINANCIAL MANAGEMENT SYSTEMS.—The Accountability Office from funds available, ‘‘(e) WORKING CAPITAL FUND.—At the end of Agency shall implement and maintain finan- the amount requested by the Comptroller each year for which an assessment under this cial management systems that comply sub- General to cover the full costs of any audit section is made, the Director shall remit to stantially with Federal financial manage- and report conducted by the Comptroller each regulated entity any amount of assessment systems requirements, applicable Fed- General. The Comptroller General shall cred- ment collected from such regulated entity eral accounting standards, and that uses a it funds transferred to the account estab- that is attributable to subsection (a)(3) and general ledger system that accounts for ac- lished for salaries and expenses of the Gov- is in excess of the amount the Director tivity at the transaction level. ernment Accountability Office, and such deems necessary to maintain a working cap- ‘‘(4) ASSERTION OF INTERNAL CONTROLS.— amount shall be available upon receipt and ital fund. The Director shall provide to the Comp- without fiscal year limitation to cover the ‘‘(f) TREATMENT OF ASSESSMENTS.— troller General an assertion as to the effec- full costs of the audit and report.’’. tiveness of the internal controls that apply ‘‘(1) DEPOSIT.—Amounts received by the SEC. 107. EXAMINERS AND ACCOUNTANTS. Director from assessments under this section to financial reporting by the Agency, using (a) EXAMINATIONS.—Section 1317 of the may be deposited by the Director in the the standards established in section 3512(c) of Housing and Community Development Act of manner provided in section 5234 of the Re- title 31, United States Code. 1992 (12 U.S.C. 4517) is amended— vised Statutes (12 U.S.C. 192) for monies de- ‘‘(5) RULE OF CONSTRUCTION.—This sub- (1) in subsection (a), by adding after the pe- section may not be construed as implying posited by the Comptroller of the Currency. riod at the end the following: ‘‘Each exam- any obligation on the part of the Director to ination under this subsection of a regulated ‘‘(2) NOT GOVERNMENT FUNDS.—The consult with or obtain the consent or ap- amounts received by the Director from any entity shall include a review of the proce- proval of the Director of the Office of Man- assessment under this section shall not be dures required to be established and main- agement and Budget with respect to any re- construed to be Government or public funds tained by the regulated entity pursuant to ports, plans, forecasts, or other information section 1314(c) (relating to fraudulent finan- or appropriated money. referred to in paragraph (1) or any jurisdic- cial transactions) and the report regarding ‘‘(3) NO APPORTIONMENT OF FUNDS.—Not- tion or oversight over the affairs or oper- each such examination shall describe any withstanding any other provision of law, the ations of the Agency. problems with such procedures maintained amounts received by the Director from any ‘‘(h) AUDIT OF AGENCY.— by the regulated entity.’’; assessment under this section shall not be ‘‘(1) IN GENERAL.—The Comptroller General (2) in subsection (b)— subject to apportionment for the purpose of shall annually audit the financial trans- (A) by inserting ‘‘of a regulated entity’’ chapter 15 of title 31, United States Code, or actions of the Agency in accordance with the after ‘‘under this section’’; and under any other authority. U.S. generally accepted government auditing (B) by striking ‘‘to determine the condi- ‘‘(4) USE OF FUNDS.—The Director may use standards as may be prescribed by the Comp- tion of an enterprise for the purpose of en- any amounts received by the Director from troller General of the United States. The suring its financial safety and soundness’’ assessments under this section for compensa- audit shall be conducted at the place or and inserting ‘‘or appropriate’’; and tion of the Director and other employees of places where accounts of the Agency are nor- (3) in subsection (c)— the Agency and for all other expenses of the mally kept. The representatives of the Gov- (A) in the second sentence, by inserting Director and the Agency. ernment Accountability Office shall have ac- ‘‘to conduct examinations under this sec- ‘‘(5) AVAILABILITY OF OVERSIGHT FUND cess to the personnel and to all books, action’’ before the period; and AMOUNTS.—Notwithstanding any other provi- counts, documents, papers, records (includ- (B) in the third sentence, by striking sion of law, any amounts remaining in the ing electronic records), reports, files, and all ‘‘from amounts available in the Federal Federal Housing Enterprises Oversight Fund other papers, automated data, things, or Housing Enterprises Oversight Fund’’. established under this section (as in effect property belonging to or under the control of (b) ENHANCED AUTHORITY TO HIRE EXAM- before the effective date under section 185 of or used or employed by the Agency per- INERS AND ACCOUNTANTS.—Section 1317 of the the Federal Housing Finance Reform Act of taining to its financial transactions and nec- Housing and Community Development Act of 2007), and any amounts remaining from as- essary to facilitate the audit, and such rep- 1992 (12 U.S.C. 4517) is amended by adding at sessments on the Federal Home Loan banks resentatives shall be afforded full facilities the end the following new subsection: pursuant to section 18(b) of the Federal for verifying transactions with the balances ‘‘(g) APPOINTMENT OF ACCOUNTANTS, ECONO- Home Loan Bank Act (12 U.S.C. 1438(b)), or securities held by depositories, fiscal MISTS, SPECIALISTS, AND EXAMINERS.— shall, upon such effective date, be treated for agents, and custodians. All such books, ac- ‘‘(1) APPLICABILITY.—This section applies purposes of this subsection as amounts re- counts, documents, records, reports, files, with respect to any position of examiner, ac- ceived from assessments under this section. papers, and property of the Agency shall re- countant, specialist in financial markets, ‘‘(6) TREASURY INVESTMENTS.— main in possession and custody of the Agen- specialist in information technology, and ‘‘(A) AUTHORITY.—The Director may re- cy. The Comptroller General may obtain and economist at the Agency, with respect to su- quest the Secretary of the Treasury to invest duplicate any such books, accounts, docu- pervision and regulation of the regulated en- such portions of amount received by the Di- ments, records, working papers, automated tities, that is in the competitive service. rector from assessments paid under this sec- data and files, or other information relevant ‘‘(2) APPOINTMENT AUTHORITY.—The Direc- tion that, in the Director’s discretion, are to such audit without cost to the Comp- tor may appoint candidates to any position not required to meet the current working troller General and the Comptroller Gen- described in paragraph (1)— needs of the Agency. eral’s right of access to such information ‘‘(A) in accordance with the statutes, rules, ‘‘(B) GOVERNMENT OBLIGATIONS.—Pursuant shall be enforceable pursuant to section and regulations governing appointments in to a request under subparagraph (A), the 716(c) of title 31, United States Code. the excepted service; and Secretary of the Treasury shall invest such ‘‘(2) REPORT.—The Comptroller General ‘‘(B) notwithstanding any statutes, rules, amounts in government obligations guaran- shall submit to the Congress a report of each and regulations governing appointments in teed as to principal and interest by the annual audit conducted under this sub- the competitive service. United States with maturities suitable to section. The report to the Congress shall set ‘‘(3) RULE OF CONSTRUCTION.—The appoint- the needs of Agency and bearing interest at forth the scope of the audit and shall include ment of a candidate to a position under the a rate determined by the Secretary of the the statement of assets and liabilities and authority of this subsection shall not be con- Treasury taking into consideration current surplus or deficit, the statement of income sidered to cause such position to be con- market yields on outstanding marketable and expenses, the statement of sources and verted from the competitive service to the obligations of the United States of com- application of funds, and such comments and excepted service.’’. parable maturity. information as may be deemed necessary to (c) REPEAL.—Section 20 of the Federal ‘‘(g) BUDGET AND FINANCIAL MANAGE- inform Congress of the financial operations Home Loan Bank Act (12 U.S.C. 1440) is MENT.— and condition of the Agency, together with amended— ‘‘(1) FINANCIAL OPERATING PLANS AND FORE- such recommendations with respect thereto (1) by striking the section heading and in- CASTS.—The Director shall provide to the Di- as the Comptroller General may deem advis- serting the following: ‘‘EXAMINATIONS AND rector of the Office of Management and able. A copy of each report shall be furnished GAO AUDITS’’; Budget copies of the Director’s financial op- to the President and to the Agency at the (2) in the third sentence, by striking ‘‘the erating plans and forecasts as prepared by time submitted to the Congress. Board and’’ each place such term appears; the Director in the ordinary course of the ‘‘(3) ASSISTANCE AND COSTS.—For the pur- and Agency’s operations, and copies of the quar- pose of conducting an audit under this sub- (3) by striking the first two sentences and terly reports of the Agency’s financial condi- section, the Comptroller General may, in the inserting the following: ‘‘The Federal home tion and results of operations as prepared by discretion of the Comptroller General, em- loan banks shall be subject to examinations the Director in the ordinary course of the ploy by contract, without regard to section 5 by the Director to the extent provided in sec- Agency’s operations. of title 41, United States Code, professional tion 1317 of the Federal Housing Enterprises

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PROHIBITION AND WITHHOLDING OF (2) by striking ‘‘is a nationally recognized’’ the actions taken by the entity pursuant to EXECUTIVE COMPENSATION. and all that follows through ‘‘1934’’ and in- this section, which shall include a statement (a) IN GENERAL.—Section 1318 of the Hous- serting the following: ‘‘the Director con- of the total amounts paid by the entity to ing and Community Development Act of 1992 siders appropriate, including an entity that third party contractors since the last such (12 U.S.C. 4518) is amended— is registered under section 15 of the Securi- report and the percentage of such amounts (1) in the section heading, by striking ‘‘OF ties Exchange Act of 1934 (15 U.S.C. 78a) as a paid to businesses described in subsection (b) EXCESSIVE’’ and inserting ‘‘AND WITH- nationally registered statistical rating orga- of this section.’’; and HOLDING OF EXECUTIVE’’; nization’’. (5) by adding at the end the following new (2) by redesignating subsection (b) as sub- SEC. 110. INCLUSION OF MINORITIES AND subsection: section (d); and WOMEN; DIVERSITY IN AGENCY ‘‘(f) DIVERSITY IN AGENCY WORKFORCE.— (3) by inserting after subsection (a) the fol- WORKFORCE. The Agency shall take affirmative steps to lowing new subsections: Section 1319A of the Housing and Commu- seek diversity in its workforce at all levels ‘‘(b) FACTORS.—In making any determina- nity Development Act of 1992 (12 U.S.C. 4520) of the agency consistent with the demo- tion under subsection (a), the Director may is amended— graphic diversity of the United States, which take into consideration any factors the Di- (1) in the section heading, by striking shall include— rector considers relevant, including any ‘‘EQUAL OPPORTUNITY IN SOLICITATION OF ‘‘(1) heavily recruiting at historically wrongdoing on the part of the executive offi- CONTRACTS’’ and inserting ‘‘MINORITY AND Black colleges and universities, Hispanic- cer, and such wrongdoing shall include any WOMEN INCLUSION; DIVERSITY REQUIRE- serving institutions, women’s colleges, and fraudulent act or omission, breach of trust MENTS’’; colleges that typically serve majority minor- or fiduciary duty, violation of law, rule, reg- (2) in subsection (a), by striking ‘‘(a) IN ity populations; ulation, order, or written agreement, and in- GENERAL.—Each enterprise’’ and inserting ‘‘(2) sponsoring and recruiting at job fairs sider abuse with respect to the regulated en- ‘‘(e) OUTREACH.—Each regulated entity’’; and in urban communities, and placing employ- tity. The approval of an agreement or con- (3) by striking subsection (b); ment advertisements in newspapers and tract pursuant to section 309(d)(3)(B) of the (4) by inserting before subsection (e), as so magazines oriented toward women and peo- Federal National Mortgage Association redesignated by paragraph (2) of this section, ple of color; Charter Act (12 U.S.C. 1723a(d)(3)(B)) or sec- the following new subsections: ‘‘(3) partnering with organizations that are tion 303(h)(2) of the Federal Home Loan ‘‘(a) OFFICE OF MINORITY AND WOMEN INCLU- focused on developing opportunities for mi- Mortgage Corporation Act (12 U.S.C. SION.—Each regulated entity shall establish norities and women to place talented young 1452(h)(2)) shall not preclude the Director an Office of Minority and Women Inclusion, minorities and women in industry intern- from making any subsequent determination or designate an office of the entity, that ships, summer employment, and full-time under subsection (a). shall be responsible for carrying out this sec- positions; and ‘‘(c) WITHHOLDING OF COMPENSATION.—In tion and all matters of the entity relating to ‘‘(4) where feasible, partnering with inner- carrying out subsection (a), the Director diversity in management, employment, and city high schools, girls’ high schools, and may require a regulated entity to withhold business activities in accordance with such high schools with majority minority popu- any payment, transfer, or disbursement of standards and requirements as the Director lations to establish or enhance financial lit- compensation to an executive officer, or to shall establish. eracy programs and provide mentoring.’’. place such compensation in an escrow ac- ‘‘(b) INCLUSION IN ALL LEVELS OF BUSINESS SEC. 111. REGULATIONS AND ORDERS. count, during the review of the reasonable- ACTIVITIES.—Each regulated entity shall de- Section 1319G of the Housing and Commu- ness and comparability of compensation.’’. velop and implement standards and proce- nity Development Act of 1992 (12 U.S.C. 4526) (b) CONFORMING AMENDMENTS.— dures to ensure, to the maximum extent pos- is amended— (1) FANNIE MAE.—Section 309(d) of the Fed- sible, the inclusion and utilization of minori- (1) by striking subsection (a) and inserting eral National Mortgage Association Charter ties (as such term is defined in section 1204(c) the following new subsection: Act (12 U.S.C. 1723a(d)) is amended by adding of the Financial Institutions Reform, Recov- ‘‘(a) AUTHORITY.—The Director shall issue at the end the following new paragraph: ery, and Enforcement Act of 1989 (12 U.S.C. any regulations, guidelines, and orders nec- ‘‘(4) Notwithstanding any other provision 1811 note)) and women, and minority- and essary to carry out the duties of the Director of this section, the corporation shall not women-owned businesses (as such terms are under this title and each of the authorizing transfer, disburse, or pay compensation to defined in section 21A(r)(4) of the Federal statutes to ensure that the purposes of this any executive officer, or enter into an agree- Home Loan Bank Act (12 U.S.C. 1441a(r)(4)) title and such statutes are accomplished.’’; ment with such executive officer, without (including financial institutions, investment (2) in subsection (b), by inserting ‘‘, this the approval of the Director, for matters banking firms, mortgage banking firms, title, or any of the authorizing statutes’’ being reviewed under section 1318 of the Fed- asset management firms, broker-dealers, fi- after ‘‘under this section’’; and eral Housing Enterprises Financial Safety nancial services firms, underwriters, ac- (3) by striking subsection (c). and Soundness Act of 1992 (12 U.S.C. 4518).’’. countants, brokers, investment consultants, SEC. 112. NON-WAIVER OF PRIVILEGES. (2) FREDDIE MAC.—Section 303(h) of the and providers of legal services) in all busi- Part 1 of subtitle A of title XIII of the Federal Home Loan Mortgage Corporation ness and activities of the regulated entity at Housing and Community Development Act of Act (12 U.S.C. 1452(h)) is amended by adding all levels, including in procurement, insur- 1992 (12 U.S.C. 4511) is amended by adding at at the end the following new paragraph: ance, and all types of contracts (including the end the following new section: ‘‘(4) Notwithstanding any other provision contracts for the issuance or guarantee of ‘‘SEC. 1319H. PRIVILEGES NOT AFFECTED BY DIS- of this section, the Corporation shall not any debt, equity, or mortgage-related securi- CLOSURE. transfer, disburse, or pay compensation to ties, the management of its mortgage and se- ‘‘(a) IN GENERAL.—The submission by any any executive officer, or enter into an agree- curities portfolios, the making of its equity person of any information to the Agency for ment with such executive officer, without investments, the purchase, sale and servicing any purpose in the course of any supervisory the approval of the Director, for matters of single- and multi-family mortgage loans, or regulatory process of the Agency shall not being reviewed under section 1318 of the Fed- and the implementation of its affordable be construed as waiving, destroying, or oth- eral Housing Enterprises Financial Safety housing program and initiatives). The proc- erwise affecting any privilege such person and Soundness Act of 1992 (12 U.S.C. 4518).’’. esses established by each regulated entity may claim with respect to such information (3) FEDERAL HOME LOAN BANKS.—Section 7 for review and evaluation for contract pro- under Federal or State law as to any person of the Federal Home Loan Bank Act (12 posals and to hire service providers shall in- or entity other than the Agency. U.S.C. 1427) is amended by adding at the end clude a component that gives consideration ‘‘(b) RULE OF CONSTRUCTION.—No provision the following new subsection: to the diversity of the applicant. of subsection (a) may be construed as imply- ‘‘(l) WITHHOLDING OF COMPENSATION.—Not- ‘‘(c) APPLICABILITY.—This section shall ing or establishing that— withstanding any other provision of this sec- apply to all contracts of a regulated entity ‘‘(1) any person waives any privilege appli- tion, a Federal home loan bank shall not for services of any kind, including services cable to information that is submitted or transfer, disburse, or pay compensation to that require the services of investment bank- transferred under any circumstance to which any executive officer, or enter into an agreeing, asset management entities, broker-deal- subsection (a) does not apply; or ment with such executive officer, without ers, financial services entities, underwriters, ‘‘(2) any person would waive any privilege the approval of the Director, for matters accountants, investment consultants, and applicable to any information by submitting being reviewed under section 1318 of the Fed- providers of legal services. the information to the Agency, but for this eral Housing Enterprises Financial Safety ‘‘(d) INCLUSION IN ANNUAL REPORTS.—Each subsection.’’. and Soundness Act of 1992 (12 U.S.C. 4518).’’. regulated entity shall include, in the annual SEC. 113. RISK-BASED CAPITAL REQUIREMENTS. SEC. 109. REVIEWS OF REGULATED ENTITIES. report submitted by the entity to the Direc- (a) IN GENERAL.—Section 1361 of the Hous- Section 1319 of the Housing and Commu- tor pursuant to section 309(k) of the Federal ing and Community Development Act of 1992 nity Development Act of 1992 (12 U.S.C. 4519) National Mortgage Association Charter Act (12 U.S.C. 4611) is amended to read as follows: is amended— (12 U.S.C. 1723a(k)), section 307(c) of the Fed- ‘‘SEC. 1361. RISK-BASED CAPITAL LEVELS FOR (1) by striking the section designation and eral Home Loan Mortgage Corporation Act REGULATED ENTITIES. heading and inserting the following: (12 U.S.C. 1456(c)), and section 20 of the Fed- ‘‘(a) IN GENERAL.—

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‘‘(1) ENTERPRISES.—The Director shall, by ‘‘(1) makes any determination specified in ‘‘SEC. 1369E. REVIEWS OF ENTERPRISE ASSETS regulation, establish risk-based capital re- subparagraphs (A) through (C) of section AND LIABILITIES. quirements for the enterprises to ensure that 1364(c)(1); ‘‘(a) IN GENERAL.—The Director shall, by the enterprises operate in a safe and sound ‘‘(2) determines that the regulated entity regulation, establish standards by which the manner, maintaining sufficient capital and has violated any of the prudential standards portfolio holdings, or rate of growth of the reserves to support the risks that arise in established pursuant to section 1313A and, as portfolio holdings, of the enterprises will be the operations and management of the enter- a result of such violation, determines that deemed to be consistent with the mission prises. an unsafe and unsound condition exists; or and the safe and sound operations of the enterprises. In developing such standards, the ‘‘(2) FEDERAL HOME LOAN BANKS.—The Di- ‘‘(3) determines that an unsafe and un- rector shall establish risk-based capital sound condition exists, except that a tem- Director shall consider— standards under section 6 of the Federal porary increase in minimum capital imposed ‘‘(1) the size or growth of the mortgage market; Home Loan Bank Act for the Federal home on a regulated entity pursuant to this para- ‘‘(2) the need for the portfolio in maintain- loan banks. graph shall not remain in place for a period ing liquidity or stability of the secondary ‘‘(b) CONFIDENTIALITY OF INFORMATION.— of more than 6 months unless the Director mortgage market (including the market for Any person that receives any book, record, makes a renewed determination of the exist- the mortgage-backed securities the enter- or information from the Director or a regu- ence of an unsafe and unsound condition. prises issue); lated entity to enable the risk-based capital ‘‘(e) AUTHORITY TO ESTABLISH ADDITIONAL ‘‘(3) the need for an inventory of mortgages requirements established under this section CAPITAL AND RESERVE REQUIREMENTS FOR in connection with securitizations; to be applied shall— PARTICULAR PROGRAMS.—The Director may, ‘‘(4) the need for the portfolio to directly ‘‘(1) maintain the confidentiality of the at any time by order or regulation, establish support the affordable housing mission of the book, record, or information in a manner such capital or reserve requirements with re- enterprises; that is generally consistent with the level of spect to any program or activity of a regu- ‘‘(5) the liquidity needs of the enterprises; confidentiality established for the material lated entity as the Director considers appro- ‘‘(6) any potential risks posed to the enter- by the Director or the regulated entity; and priate to ensure that the regulated entity prises by the nature of the portfolio hold- ‘‘(2) be exempt from section 552 of title 5, operates in a safe and sound manner, with ings; and United States Code, with respect to the sufficient capital and reserves to support the ‘‘(7) any additional factors that the Direc- book, record, or information. risks that arise in the operations and man- tor determines to be necessary to carry out ‘‘(c) NO LIMITATION.—Nothing in this sec- agement of the regulated entity. the purpose under the first sentence of this tion shall limit the authority of the Director ‘‘(f) PERIODIC REVIEW.—The Director shall subsection to establish standards for assess- to require other reports or undertakings, or periodically review the amount of core cap- ing whether the portfolio holdings are con- take other action, in furtherance of the re- ital maintained by the enterprises, the sistent with the mission and safe and sound sponsibilities of the Director under this amount of capital retained by the Federal operations of the enterprises. Act.’’. home loan banks, and the minimum capital (b) FEDERAL HOME LOAN BANKS RISK-BASED ‘‘(b) TEMPORARY ADJUSTMENTS.—The Direc- levels established for such regulated entities CAPITAL.—Section 6(a)(3) of the Federal tor may, by order, make temporary adjust- pursuant to this section. The Director shall Home Loan Bank Act (12 U.S.C. 1426(a)(3)) is ments to the established standards for an en- rescind any temporary minimum capital amended— terprise or both enterprises, such as during level increase if the Director determines (1) by striking subparagraph (A) and in- times of economic distress or market disrup- that the circumstances or facts justifying serting the following new subparagraph: tion. the temporary increase are no longer ‘‘(A) RISK-BASED CAPITAL STANDARDS.—The ‘‘(c) AUTHORITY TO REQUIRE DISPOSITION OR present.’’. Director shall, by regulation, establish risk- ACQUISITION.—The Director shall monitor (b) CRITICAL CAPITAL LEVELS.— based capital standards for the Federal home the portfolio of each enterprise. Pursuant to (1) IN GENERAL.—Section 1363 of the Hous- loan banks to ensure that the Federal home subsection (a) and notwithstanding the cap- ing and Community Development Act of 1992 loan banks operate in a safe and sound man- ital classifications of the enterprises, the Di- (12 U.S.C. 4613) is amended— ner, with sufficient permanent capital and rector may, by order, require an enterprise, (A) by striking ‘‘For’’ and inserting ‘‘(a) reserves to support the risks that arise in under such terms and conditions as the Di- ENTERPRISES.—FOR’’; and rector determines to be appropriate, to dis- the operations and management of the Fed- (B) by adding at the end the following new pose of or acquire any asset, if the Director eral home loans banks.’’; and subsection: determines that such action is consistent (2) in subparagraph (B), by striking ‘‘(b) FEDERAL HOME LOAN BANKS.— with the purposes of this Act or any of the ‘‘(A)(ii)’’ and inserting ‘‘(A)’’. ‘‘(1) IN GENERAL.—For purposes of this sub- authorizing statutes.’’. SEC. 114. MINIMUM AND CRITICAL CAPITAL LEV- title, the critical capital level for each Fed- (b) REGULATIONS.—Not later than the expi- ELS. eral home loan bank shall be such amount of ration of the 180-day period beginning on the (a) MINIMUM CAPITAL LEVEL.—Section 1362 capital as the Director shall, by regulation effective date under section 185, the Director of the Housing and Community Development require. of the Federal Housing Finance Agency shall Act of 1992 (12 U.S.C. 4612) is amended— ‘‘(2) CONSIDERATION OF OTHER CRITICAL CAP- issue regulations pursuant to section (1) in subsection (a), by striking ‘‘IN GEN- ITAL LEVELS.—In establishing the critical 1369E(a) of the Housing and Community De- ERAL’’ and inserting ‘‘ENTERPRISES’’; and capital level under paragraph (1) for the Fed- velopment Act of 1992 (as added by sub- (2) by striking subsection (b) and inserting eral home loan banks, the Director shall section (a) of this section) establishing the the following new subsections: take due consideration of the critical capital portfolio holdings standards under such sec- ‘‘(b) FEDERAL HOME LOAN BANKS.—For pur- tion. poses of this subtitle, the minimum capital level established under subsection (a) for the SEC. 116. CORPORATE GOVERNANCE OF ENTER- level for each Federal home loan bank shall enterprises, with such modifications as the Director determines to be appropriate to re- PRISES. be the minimum capital required to be main- The Housing and Community Development tained to comply with the leverage require- flect the difference in operations between the banks and the enterprises.’’. Act of 1992 is amended by inserting before ment for the bank established under section section 1323 (12 U.S.C. 4543) the following new (2) REGULATIONS.—Not later than the expi- 6(a)(2) of the Federal Home Loan Bank Act section: (12 U.S.C. 1426(a)(2)). ration of the 180-day period beginning on the ‘‘SEC. 1322A. CORPORATE GOVERNANCE OF EN- ‘‘(c) ESTABLISHMENT OF REVISED MINIMUM effective date under section 185, the Director TERPRISES. CAPITAL LEVELS.—Notwithstanding sub- of the Federal Housing Finance Agency shall ‘‘(a) BOARD OF DIRECTORS.— sections (a) and (b) and notwithstanding the issue regulations pursuant to section 1363(b) ‘‘(1) INDEPENDENCE.—A majority of seated capital classifications of the regulated enti- of the Housing and Community Development members of the board of directors of each en- ties, the Director may, by regulations issued Act of 1992 (as added by paragraph (1) of this terprise shall be independent board mem- under section 1319G, establish a minimum subsection) establishing the critical capital bers, as defined under rules set forth by the capital level for the enterprises, for the Fed- level under such section. eral home loan banks, or for both the enter- New York Stock Exchange, as such rules SEC. 115. REVIEW OF AND AUTHORITY OVER EN- may be amended from time to time. prises and the banks, that is higher than the TERPRISE ASSETS AND LIABILITIES. ‘‘(2) FREQUENCY OF MEETINGS.—To carry level specified in subsection (a) for the enter- (a) IN GENERAL.—Subtitle B of title XIII of out its obligations and duties under applica- prises or the level specified in subsection (b) the Housing and Community Development ble laws, rules, regulations, and guidelines, for the Federal home loan banks, to the ex- Act of 1992 (12 U.S.C. 4611 et seq.) is amend- the board of directors of an enterprise shall tent needed to ensure that the regulated ened— meet at least eight times a year and not less tities operate in a safe and sound manner. (1) by striking the subtitle designation and than once a calendar quarter. ‘‘(d) AUTHORITY TO REQUIRE TEMPORARY IN- heading and inserting the following: CREASE.—Notwithstanding subsections (a) ‘‘(3) NON-MANAGEMENT BOARD MEMBER and (b) and any minimum capital level es- ‘‘Subtitle B—Required Capital Levels for Reg- MEETINGS.—The non-management directors tablished pursuant to subsection (c), the Di- ulated Entities, Special Enforcement Pow- of an enterprise shall meet at regularly rector may, by order, increase the minimum ers, and Reviews of Assets and Liabilities’’; scheduled executive sessions without man- capital level for a regulated entity on a tem- and agement participation. porary basis for such period as the Director (2) by adding at the end the following new ‘‘(4) QUORUM; PROHIBITION ON PROXIES.—For may provide if the Director— section: the transaction of business, a quorum of the

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board of directors of an enterprise shall be at adequacy of its code of conduct and ethics ‘‘(j) RISK MANAGEMENT PROGRAM.— least a majority of the seated board of direc- for consistency with practices appropriate to ‘‘(1) REQUIREMENT.—Each enterprise shall tors and a board member may not vote by the enterprise and make any appropriate re- establish and maintain a risk management proxy. visions to such code. program that is reasonably designed to man- ‘‘(5) INFORMATION.—The management of an ‘‘(e) CONDUCT AND RESPONSIBILITIES OF age the risks of the operations of the enter- enterprise shall provide a board member of BOARD OF DIRECTORS.—The board of directors prise. the enterprise with such adequate and appro- of an enterprise shall be responsible for di- ‘‘(2) RISK MANAGEMENT OFFICER.—The risk priate information that a reasonable board recting the conduct and affairs of the enter- management program of an enterprise shall member would find important to the fulfill- prise in furtherance of the safe and sound op- be headed by a risk management officer, ment of his or her fiduciary duties and obli- eration of the enterprise and shall remain however styled, who reports directly to the gations. reasonably informed of the condition, activi- chief executive officer of the enterprise. The ‘‘(6) ANNUAL REVIEW.—At least annually, ties, and operations of the enterprise. The re- risk management officer shall report regu- the board of directors of each enterprise sponsibilities of the board of directors shall larly to the board of directors or an appro- shall review, with appropriate professional include having in place adequate policies and priate committee of the board of directors on assistance, the requirements of laws, rules, procedures to assure its oversight of, among compliance with and the adequacy of current regulations, and guidelines that are applica- other matters, the following: risk management policies and procedures of ble to its activities and duties. ‘‘(1) Corporate strategy, major plans of ac- the enterprise, and shall recommend any ad- tion, risk policy, programs for legal and reg- ‘‘(b) COMMITTEES OF BOARDS OF DIREC- justments to such policies and procedures ulatory compliance and corporate perform- TORS.— that the risk management officer considers ance, including prudent plans for growth and ‘‘(1) FREQUENCY OF MEETINGS.—Any com- necessary and appropriate. allocation of adequate resources to manage mittee of the board of directors of an enter- ‘‘(k) COMPLIANCE WITH OTHER LAWS.— operations risk. prise shall meet with sufficient frequency to ‘‘(1) DEREGISTERED OR UNREGISTERED COM- ‘‘(2) Hiring and retention of qualified exec- carry out its obligations and duties under MON STOCK.—If an enterprise deregisters or utive officers and succession planning for applicable laws, rules, regulations, and has not registered its common stock with such executive officers. guidelines. the Securities and Exchange Commission ‘‘(3) Compensation programs of the enter- under the Securities Exchange Act of 1934, ‘‘(2) REQUIRED COMMITTEES.—Each enterprise. prise shall provide for the establishment, the enterprise shall comply or continue to ‘‘(4) Integrity of accounting and financial comply with sections 10A(m) and 13(k) of the however styled, of the following committees reporting systems of the enterprise, includ- of the board of directors: Securities Exchange Act of 1934 (15 U.S.C. ing independent audits and systems of inter- 78j–1(m), 78m(k)) and sections 302, 304, and ‘‘(A) Audit committee. nal control. 406 of the Sarbanes-Oxley Act of 2002 (15 ‘‘(B) Compensation committee. ‘‘(5) Process and adequacy of reporting, dis- U.S.C. 7241, 7243, 7264), subject to such re- ‘‘(C) Nominating/corporate governance closures, and communications to share- quirements as provided by subsection (l) of committee. holders, investors, and potential investors. this section. Such committees shall be in compliance ‘‘(6) Extensions of credit to board members ‘‘(2) REGISTERED COMMON STOCK.—An enter- with the charter, independence, composition, and executive officers. prise that has its common stock registered expertise, duties, responsibilities, and other ‘‘(7) Responsiveness of executive officers in with the Securities and Exchange Commis- requirements set forth under section 10A(m) providing accurate and timely reports to sion shall maintain such registered status, of the Securities Exchange Act of 1934 (15 Federal regulators and in addressing the su- unless it provides 60 days prior written no- U.S.C. 78j–1(m)), with respect to the audit pervisory concerns of Federal regulators in a tice to the Director stating its intent to committee, and under rules issued by the timely and appropriate manner. deregister and its understanding that it will New York Stock Exchange, as such rules ‘‘(f) PROHIBITION OF EXTENSIONS OF CRED- remain subject to the requirements of the may be amended from time to time. IT.—An enterprise may not directly or indi- sections of the Securities Exchange Act of ‘‘(c) COMPENSATION.— rectly, including through any subsidiary, ex- 1934 and the Sarbanes-Oxley Act of 2002, sub- tend or maintain credit, arrange for the ex- ‘‘(1) IN GENERAL.—The compensation of ject to such requirements as provided by sub- tension of credit, or renew an extension of board members, executive officers, and em- section (l) of this section. credit, in the form of a personal loan to or ployees of an enterprise— ‘‘(l) OTHER MATTERS.—The Director may ‘‘(A) shall not be in excess of that which is for any board member or executive officer of from time to time establish standards, by reasonable and appropriate; the enterprise, as provided by section 13(k) of regulation, order, or guideline, regarding ‘‘(B) shall be commensurate with the du- the Securities Exchange Act of 1934 (15 such other corporate governance matters of ties and responsibilities of such persons; U.S.C. 78m(k)). the enterprises as the Director considers ap- ‘‘(g) CERTIFICATION OF DISCLOSURES.—The ‘‘(C) shall be consistent with the long-term propriate. chief executive officer and the chief financial goals of the enterprise; ‘‘(m) MODIFICATION OF STANDARDS.—In con- officer of an enterprise shall review each ‘‘(D) shall not focus solely on earnings per- nection with standards of Federal or State quarterly report and annual report issued by formance, but shall take into account risk law (including the Revised Model Corpora- the enterprise and such reports shall include management, operational stability and legal tion Act) or New York Stock Exchange rules certifications by such officers as required by and regulatory compliance as well; and that are made applicable to an enterprise by section 302 of the Sarbanes-Oxley Act of 2002 ‘‘(E) shall be undertaken in a manner that section 1710.10 of the Director’s rules (12 CFR (15 U.S.C. 7241). 1710.10) and by subsections (a), (b), (g), (i), (j), complies with applicable laws, rules, and ‘‘(h) CHANGE OF AUDIT PARTNER.—An enter- and (k) of this section, the Director, in the regulations. prise may not accept audit services from an Director’s sole discretion, may modify the ‘‘(2) REIMBURSEMENT.—If an enterprise is external auditing firm if the lead or coordi- standards contained in this section or in part required to prepare an accounting restate- nating audit partner who has primary re- 1710 of the Director’s rules (12 CFR Part 1710) ment due to the material noncompliance of sponsibility for the external audit of the en- in accordance with section 553 of title 5, the enterprise, as a result of misconduct, terprise, or the external audit partner who United States Code, and upon written notice with any financial reporting requirement has responsibility for reviewing the external to the enterprise.’’. under the securities laws, the chief executive audit has performed audit services for the officer and chief financial officer of the en- enterprise in each of the five previous fiscal SEC. 117. REQUIRED REGISTRATION UNDER SE- CURITIES EXCHANGE ACT OF 1934. terprise shall reimburse the enterprise as years. The Housing and Community Development provided under section 304 of the Sarbanes- ‘‘(i) COMPLIANCE PROGRAM.— Act of 1992 is amended by adding after sec- Oxley Act of 2002 (15 U.S.C. 7243). This provi- ‘‘(1) REQUIREMENT.—Each enterprise shall tion 1322A, as added by the preceding provision does not otherwise limit the authority establish and maintain a compliance pro- sions of this Division, the following new sec- of the Agency to employ remedies available gram that is reasonably designed to assure tion: to it under its enforcement authorities. that the enterprise complies with applicable ‘‘SEC. 1322B. REQUIRED REGISTRATION UNDER ‘‘(d) CODE OF CONDUCT AND ETHICS.— laws, rules, regulations, and internal con- SECURITIES EXCHANGE ACT OF 1934. ‘‘(1) IN GENERAL.—An enterprise shall es- trols. ‘‘(a) IN GENERAL.—Each regulated entity tablish and administer a written code of con- ‘‘(2) COMPLIANCE OFFICER.—The compliance shall register at least one class of the capital duct and ethics that is reasonably designed program of an enterprise shall be headed by stock of such regulated entity, and maintain to assure the ability of board members, exec- a compliance officer, however styled, who re- such registration with the Securities and Ex- utive officers, and employees of the enter- ports directly to the chief executive officer change Commission, under the Securities prise to discharge their duties and respon- of the enterprise. The compliance officer Exchange Act of 1934. sibilities, on behalf of the enterprise, in an shall report regularly to the board of direc- ‘‘(b) ENTERPRISES.—Each enterprise shall objective and impartial manner, and that in- tors or an appropriate committee of the comply with sections 14 and 16 of the Securi- cludes standards required under section 406 board of directors on compliance with and ties Exchange Act of 1934.’’. of the Sarbanes-Oxley Act of 2002 (15 U.S.C. the adequacy of current compliance policies SEC. 118. LIAISON WITH FINANCIAL INSTITU- 7264) and other applicable laws, rules, and and procedures of the enterprise, and shall TIONS EXAMINATION COUNCIL. regulations. recommend any adjustments to such policies Section 1007 of the Federal Financial Insti- ‘‘(2) REVIEW.—Not less than once every and procedures that the compliance officer tutions Examination Council Act of 1978 (12 three years, an enterprise shall review the considers necessary and appropriate. U.S.C. 3306) is amended—

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00192 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.130 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2559 (1) in the section heading, by inserting (5) by striking ‘‘Office’’ each place such (ii) in paragraph (2), by striking ‘‘Sec- after ‘‘STATE’’ the following: ‘‘AND FEDERAL term appears in such part (except in sections retary’’ the second place such term appears HOUSING FINANCE AGENCY’’; and 1311(b)(2), 1312(b)(5), 1315(b), and 1316(a)(4), and inserting ‘‘Director’’; and (2) by inserting after ‘‘financial institu- (g), and (h), 1317(c), and 1319A(a)) and insert- (iii) by striking ‘‘Secretary’’ each other tions’’ the following: ‘‘, and one representa- ing ‘‘Agency’’; place such term appears and inserting ‘‘Di- tive of the Federal Housing Finance Agen- (6) in section 1315 (12 U.S.C. 4515)— rector of the Federal Housing Finance Agen- cy,’’. (A) in subsection (a)— cy’’; and SEC. 119. GUARANTEE FEE STUDY. (i) in the subsection heading, by striking (B) in subsection (f), by striking ‘‘Sec- (a) IN GENERAL.—The Director of the Fed- ‘‘OFFICE PERSONNEL’’ and inserting ‘‘IN GEN- retary’’ each place such term appears and in- eral Housing Finance Agency, in consulta- ERAL’’; and serting ‘‘Director of the Federal Housing Fi- tion with the heads of the federal banking (ii) by striking ‘‘The’’ and inserting ‘‘Sub- nance Agency’’. agencies, shall, not later than 18 months ject to title III of the Federal Housing Fi- Subtitle B—Improvement of Mission after the date of the enactment of this Act, nance Reform Act of 2007, the’’; Supervision submit to the Congress a study concerning (B) by striking subsections (d) and (f); and SEC. 131. TRANSFER OF PRODUCT APPROVAL the pricing, transparency and reporting of (C) by redesignating subsection (e) as sub- AND HOUSING GOAL OVERSIGHT. the Federal National Mortgage Association, section (d); Part 2 of subtitle A of title XIII of the the Federal Home Loan Mortgage Corpora- (7) in section 1319B (12 U.S.C. 4521), by Housing and Community Development Act of tion, and the Federal home loan banks with striking ‘‘Committee on Banking, Finance 1992 (12 U.S.C. 4541 et seq.) is amended— regard to guarantee fees and concerning and Urban Affairs’’ each place such term ap- (1) by striking the designation and heading analogous practices, transparency and re- pears and inserting ‘‘Committee on Finan- for the part and inserting the following: porting requirements (including advances cial Services’’; and pricing practices by the Federal Home Loan (8) in section 1319F (12 U.S.C. 4525), striking ‘‘PART 2—PRODUCT APPROVAL BY DIREC- Banks) of other participants in the business all that follows ‘‘United States Code’’ and in- TOR, CORPORATE GOVERNANCE, AND of mortgage purchases and securitization. serting ‘‘, the Agency shall be considered an ESTABLISHMENT OF HOUSING GOALS’’; (b) FACTORS.—The study required by this agency responsible for the regulation or su- and section shall examine various factors such as pervision of financial institutions.’’. (2) by striking sections 1321 and 1322. credit risk, counterparty risk consider- (b) AMENDMENTS TO FANNIE MAE CHARTER SEC. 132. REVIEW OF ENTERPRISE PRODUCTS. ations, economic value considerations, and ACT.—The Federal National Mortgage Asso- (a) IN GENERAL.—Part 2 of subtitle A of volume considerations used by the regulated ciation Charter Act (12 U.S.C. 1716 et seq.) is title XIII of the Housing and Community De- entities (as such term is defined in section amended— velopment Act of 1992 is amended by insert- 1303 of the Housing and Community Develop- (1) by striking ‘‘Director of the Office of ing before section 1323 (12 U.S.C. 4543) the fol- ment Act of 1992) included in the study in Federal Housing Enterprise Oversight of the lowing new section: setting the amount of fees they charge. Department of Housing and Urban Develop- ‘‘SEC. 1321. PRIOR APPROVAL AUTHORITY FOR (c) CONTENTS OF REPORT.—The report re- ment’’ each place such term appears, and in- PRODUCTS OF ENTERPRISES. quired under subsection (a) shall identify and serting ‘‘Director of the Federal Housing Fi- ‘‘(a) IN GENERAL.—The Director shall re- analyze— nance Agency’’, in— quire each enterprise to obtain the approval (1) the factors used by each enterprise (as (A) section 303(c)(2) (12 U.S.C. 1718(c)(2)); of the Director for any product of the enter- such term is defined in section 1303 of the (B) section 309(d)(3)(B) (12 U.S.C. prise before initially offering the product. Housing and Community Development Act of 1723a(d)(3)(B)); and ‘‘(b) STANDARD FOR APPROVAL.—In consid- 1992) in determining the amount of the guar- (C) section 309(k)(1); and ering any request for approval of a product antee fees it charges; (2) in section 309— pursuant to subsection (a), the Director shall (2) the total revenue the enterprises earn (A) in subsections (d)(3)(A) and (n)(1), by make a determination that— from guarantee fees; striking ‘‘Banking, Finance and Urban Af- ‘‘(1) in the case of a product of the Federal (3) the total costs incurred by the enter- fairs’’ each place such term appears and in- National Mortgage Association, the Director prises for providing guarantees; serting ‘‘Financial Services’’; and determines that the product is authorized (4) the average guarantee fee charged by (B) in subsection (m)— under paragraph (2), (3), (4), or (5) of section the enterprises; (i) in paragraph (1), by striking ‘‘Sec- 302(b) or section 304 of the Federal National (5) an analysis of how and why the guar- retary’’ the second place such term appears Mortgage Association Charter Act, (12 U.S.C. antee fees charged differ from such fees and inserting ‘‘Director’’; 1717(b), 1719); charged during the previous year; (ii) in paragraph (2), by striking ‘‘Sec- ‘‘(2) in the case of a product of the Federal (6) a breakdown of the revenue and costs retary’’ the second place such term appears Home Loan Mortgage Corporation, the Di- associated with providing guarantees, based and inserting ‘‘Director’’; and rector determines that the product is au- on product type and risk classifications; and (iii) by striking ‘‘Secretary’’ each other thorized under paragraph (1), (4), or (5) of (7) other relevant information on guar- place such term appears and inserting ‘‘Di- section 305(a) of the Federal Home Loan antee fees with other participants in the rector of the Federal Housing Finance Agen- Mortgage Corporation Act (12 U.S.C. 1454(a)); mortgage and securitization business. cy’’; and ‘‘(3) the product is in the public interest; (d) PROTECTION OF INFORMATION.—Nothing in this section may be construed to require (C) in subsection (n), by striking ‘‘Sec- ‘‘(4) the product is consistent with the or authorize the Director of the Federal retary’’ each place such term appears and in- safety and soundness of the enterprise or the Housing Finance Agency, in connection with serting ‘‘Director of the Federal Housing Fi- mortgage finance system; and the study mandated by this section, to dis- nance Agency’’. ‘‘(5) the product does not materially impair close information of the enterprises or other (c) AMENDMENTS TO FREDDIE MAC ACT.— the efficiency of the mortgage finance sys- organization that is confidential or propri- The Federal Home Loan Mortgage Corpora- tem. etary. tion Act is amended— ‘‘(c) PROCEDURE FOR APPROVAL.— (e) EFFECTIVE DATE.—This section shall (1) by striking ‘‘Director of the Office of ‘‘(1) SUBMISSION OF REQUEST.—An enter- take effect on the date of the enactment of Federal Housing Enterprise Oversight of the prise shall submit to the Director a written this Act. Department of Housing and Urban Develop- request for approval of a product that de- SEC. 120. CONFORMING AMENDMENTS. ment’’ each place such term appears, and in- scribes the product in such form as pre- (a) 1992 ACT.—Part 1 of subtitle A of title serting ‘‘Director of the Federal Housing Fi- scribed by order or regulation of the Direc- XIII of the Housing and Community Develop- nance Agency’’, in— tor. ment Act of 1992 (12 U.S.C. 4511 et seq.), as (A) section 303(b)(2) (12 U.S.C. 1452(b)(2)); ‘‘(2) REQUEST FOR PUBLIC COMMENT.—Imme- amended by the preceding provisions of this (B) section 303(h)(2) (12 U.S.C. 1452(h)(2)); diately upon receipt of a request for approval Division, is further amended— and of a product, as required under paragraph (1), (1) by striking ‘‘an enterprise’’ each place (C) section 307(c)(1) (12 U.S.C. 1456(c)(1)); the Director shall publish notice of such re- such term appears in such part (except in (2) in sections 303(h)(1) and 307(f)(1) (12 quest and of the period for public comment sections 1313(a)(2)(A), 1313A(b)(2)(B)(ii)(I), U.S.C. 1452(h)(1), 1456(f)(1)), by striking pursuant to paragraph (3) regarding the and 1316(b)(3)) and inserting ‘‘a regulated en- ‘‘Banking, Finance and Urban Affairs’’ each product, and a description of the product tity’’; place such term appears and inserting ‘‘Fi- proposed by the request. The Director shall (2) by striking ‘‘the enterprise’’ each place nancial Services’’; give interested parties the opportunity to re- such term appears in such part (except in (3) in section 306(i) (12 U.S.C. 1455(i))— spond in writing to the proposed product. section 1316(b)(3)) and inserting ‘‘the regu- (A) by striking ‘‘1316(c)’’ and inserting ‘‘(3) PUBLIC COMMENT PERIOD.—During the lated entity’’; ‘‘306(c)’’; and 30-day period beginning on the date of publi- (3) by striking ‘‘the enterprises’’ each place (B) by striking ‘‘section 106’’ and inserting cation pursuant to paragraph (2) of a request such term appears in such part (except in ‘‘section 1316’’; and for approval of a product, the Director shall sections 1312(c)(2), and 1312(e)(2)) and insert- (4) in section 307 (12 U.S.C. 1456))— receive public comments regarding the pro- ing ‘‘the regulated entities’’; (A) in subsection (e)— posed product. (4) by striking ‘‘each enterprise’’ each (i) in paragraph (1), by striking ‘‘Sec- ‘‘(4) OFFERING OF PRODUCT.— place such term appears in such part and in- retary’’ the second place such term appears ‘‘(A) IN GENERAL.—Not later than 30 days serting ‘‘each regulated entity’’; and inserting ‘‘Director’’; after the close of the public comment period

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described in paragraph (3), the Director shall (2) FREDDIE MAC.—Section 305(c) of the and $801,950 for a mortgage secured by a 4- approve or deny the product, specifying the Federal Home Loan Mortgage Corporation family residence, except that such maximum grounds for such decision in writing. Act (12 U.S.C. 1454(c)) is amended— limitations shall be adjusted effective Janu- ‘‘(B) FAILURE TO ACT.—If the Director fails (A) by striking ‘‘implement any new pro- ary 1 of each year beginning with 2008, sub- to act within the 30-day period described in gram’’ and inserting ‘‘initially offer any ject to the limitations in this paragraph. subparagraph (A), the enterprise may offer product’’; Each adjustment shall be made by adding to the product. (B) by striking ‘‘section 1303’’ and inserting or subtracting from each such amount (as it ‘‘(d) EXPEDITED REVIEW.— ‘‘section 1321(f)’’; and may have been previously adjusted) a per- ‘‘(1) DETERMINATION AND NOTICE.—If an en- (C) by striking ‘‘before obtaining the ap- centage thereof equal to the percentage in- terprise determines that any new activity, proval of the Secretary under section 1322’’ crease or decrease, during the most recent service, undertaking, or offering is not a and inserting ‘‘except in accordance with 12-month or four-quarter period ending be- product, as defined in subsection (f), the en- section 1321’’. fore the time of determining such annual ad- terprise shall provide written notice to the (3) 1992 ACT.—Section 1303 of the Housing justment, in the housing price index main- Director prior to the commencement of such and Community Development Act of 1992 (12 tained by the Director of the Federal Hous- activity, service, undertaking, or offering. U.S.C. 4502), as amended by section 2 of this ing Finance Agency (pursuant to section 1322 ‘‘(2) DIRECTOR DETERMINATION OF APPLICA- Division, is further amended— of the Housing and Community Development BLE PROCEDURE.—Immediately upon receipt (A) by striking paragraph (17) (relating to Act of 1992 (12 U.S.C. 4541)).’’ of any notice pursuant to paragraph (1), the the definition of ‘‘new program’’); and (2) HIGH-COST AREA LIMIT.—Section 305(a)(2) Director shall make a determination under (B) by redesignating paragraphs (18) of the Federal Home Loan Mortgage Cor- paragraph (3). through (23) as paragraphs (17) through (22), poration Act is amended by adding after the ‘‘(3) DETERMINATION AND TREATMENT AS respectively. period at the end the following: ‘‘Such fore- PRODUCT.—If the Director determines that SEC. 133. CONFORMING LOAN LIMITS. going limitations shall also be increased any new activity, service, undertaking, or of- (a) FANNIE MAE.— with respect to properties of a particular size fering consists of, relates to, or involves a (1) GENERAL LIMIT.—Section 302(b)(2) of the located in any area for which the median product— Federal National Mortgage Association price for such size residence exceeds the fore- ‘‘(A) the Director shall notify the enter- Charter Act (12 U.S.C. 1717(b)(2)) is amend- going limitation for such size residence, to prise of the determination; ed— the lesser of 150 percent of such foregoing ‘‘(B) the new activity, service, under- (A) in the 4th sentence, by striking ‘‘the limitation for such size residence or the taking, or offering described in the notice Resolution Trust Corporation,’’; and amount that is equal to the median price in under paragraph (1) shall be considered a (B) by striking the 7th and 8th sentences such area for such size residence, except product for purposes of this section; and and inserting the following new sentences: that, subject to the order, if any, issued by ‘‘(C) the enterprise shall withdraw its re- ‘‘For 2007, such limitations shall not exceed the Director of the Federal Housing Finance quest or submit a written request for ap- $417,000 for a mortgage secured by a single- Agency pursuant to section 133(d)(3) of the proval of the product pursuant to subsection family residence, $533,850 for a mortgage se- Federal Housing Finance Reform Act of 2007, (c). cured by a 2-family residence, $645,300 for a such increase shall apply only with respect to mortgages on which are based securities ‘‘(e) CONDITIONAL APPROVAL.—The Director mortgage secured by a 3-family residence, issued and sold by the Corporation.’’. may conditionally approve the offering of and $801,950 for a mortgage secured by a 4- (c) HOUSING PRICE INDEX.—Subpart A of any product by an enterprise, and may estab- family residence, except that such maximum part 2 of subtitle A of title XIII of the Hous- lish terms, conditions, or limitations with limitations shall be adjusted effective Janu- ing and Community Development Act of 1992 respect to such product with which the en- ary 1 of each year beginning with 2008, sub- (as amended by the preceding provisions of terprise must comply in order to offer such ject to the limitations in this paragraph. this Division) is amended by inserting after product. Each adjustment shall be made by adding to or subtracting from each such amount (as it section 1321 (as added by section 132 of this ‘‘(f) DEFINITION OF PRODUCT.—For purposes may have been previously adjusted) a per- Division) the following new section: of this section, the term ‘product’ does not centage thereof equal to the percentage in- ‘‘SEC. 1322. HOUSING PRICE INDEX. include— crease or decrease, during the most recent ‘‘(a) IN GENERAL.—The Director shall es- ‘‘(1) the automated loan underwriting sys- 12-month or four-quarter period ending be- tablish and maintain a method of assessing tem of an enterprise in existence as of the fore the time of determining such annual ad- the national average 1-family house price for date of the enactment of the Federal Hous- justment, in the housing price index main- use for adjusting the conforming loan limita- ing Finance Reform Act of 2007, including tained by the Director of the Federal Hous- tions of the enterprises. In establishing such any upgrade to the technology, operating ing Finance Agency (pursuant to section 1322 method, the Director shall take into consid- system, or software to operate the under- of the Housing and Community Development eration the monthly survey of all major writing system; or Act of 1992 (12 U.S.C. 4541)).’’. lenders conducted by the Federal Housing ‘‘(2) any modification to the mortgage (2) HIGH-COST AREA LIMIT.—Section 302(b)(2) Finance Agency to determine the national terms and conditions or mortgage under- of the Federal National Mortgage Associa- average 1-family house price, the House writing criteria relating to the mortgages tion Charter Act is (12 U.S.C. 1717(b)(2)) is Price Index maintained by the Office of Fed- that are purchased or guaranteed by an en- amended by adding after the period at the eral Housing Enterprise Oversight of the De- terprise: Provided, That such modifications end the following: ‘‘Such foregoing limita- partment of Housing and Urban Development do not alter the underlying transaction so as tions shall also be increased with respect to before the effective date under section 185 of to include services or financing, other than properties of a particular size located in any the Federal Housing Finance Reform Act of residential mortgage financing, or create area for which the median price for such size 2007, any appropriate house price indexes of significant new exposure to risk for the en- residence exceeds the foregoing limitation the Bureau of the Census of the Department terprise or the holder of the mortgage. for such size residence, to the lesser of 150 of Commerce, and any other indexes or meas- ‘‘(g) NO LIMITATION.—Nothing in this sec- percent of such foregoing limitation for such ures that the Director considers appropriate. tion shall be deemed to restrict— size residence or the amount that is equal to ‘‘(b) GAO AUDIT.— ‘‘(1) the safety and soundness authority of the median price in such area for such size ‘‘(1) IN GENERAL.—At such times as are re- the Director over all new and existing prod- residence, except that, subject to the order, quired under paragraph (2), the Comptroller ucts or activities; or if any, issued by the Director of the Federal General of the United States shall conduct ‘‘(2) the authority of the Director to review Housing Finance Agency pursuant to section an audit of the methodology established by all new and existing products or activities to 133(d)(3) of the Federal Housing Finance Re- the Director under subsection (a) to deter- determine that such products or activities form Act of 2007, such increase shall apply mine whether the methodology established is are consistent with the statutory mission of only with respect to mortgages on which are an accurate and appropriate means of meas- the enterprise.’’. based securities issued and sold by the cor- uring changes to the national average 1-fam- (b) CONFORMING AMENDMENTS.— poration.’’. ily house price. (1) FANNIE MAE.—Section 302(b)(6) of the (b) FREDDIE MAC.— ‘‘(2) TIMING.—An audit referred to in para- Federal National Mortgage Association (1) GENERAL LIMIT.—Section 305(a)(2) of the graph (1) shall be conducted and completed Charter Act (12 U.S.C. 1717(b)(6)) is amend- Federal Home Loan Mortgage Corporation not later than the expiration of the 180-day ed— Act (12 U.S.C. 1454(a)(2)) is amended— period that begins upon each of the following (A) by striking ‘‘implement any new pro- (A) in the 3rd sentence, by striking ‘‘the dates: gram’’ and inserting ‘‘initially offer any Resolution Trust Corporation,’’; and ‘‘(A) ESTABLISHMENT.—The date upon product’’; (B) by striking the 6th and 7th sentences which such methodology is initially estab- (B) by striking ‘‘section 1303’’ and inserting and inserting the following new sentences: lished under subsection (a) in final form by ‘‘section 1321(f)’’; and ‘‘For 2007, such limitations shall not exceed the Director. (C) by striking ‘‘before obtaining the ap- $417,000 for a mortgage secured by a single- ‘‘(B) MODIFICATION OR AMENDMENT.—Each proval of the Secretary under section 1322’’ family residence, $533,850 for a mortgage se- date upon which any modification or amend- and inserting ‘‘except in accordance with cured by a 2-family residence, $645,300 for a ment to such methodology is adopted in final section 1321’’. mortgage secured by a 3-family residence, form by the Director.

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‘‘(3) REPORT.—Within 30 days of the com- in the last sentence of such sections (as so Reform Act of 2007) and compare the charac- pletion of any audit conducted under this amended). teristics of subprime loans purchased and subsection, the Comptroller General shall SEC. 134. ANNUAL HOUSING REPORT REGARDING securitized by the enterprises to other loans submit a report detailing the results and REGULATED ENTITIES. purchased and securitized by the enterprises. conclusions of the audit to the Director, the (a) IN GENERAL.—The Housing and Commu- ‘‘(c) DATA COLLECTION AND REPORTING.— Committee on Financial Services of the nity Development Act of 1992 is amended by ‘‘(1) IN GENERAL.—To assist the Director in House of Representatives, and the Com- striking section 1324 (12 U.S.C. 4544) and in- analyzing the matters described in sub- mittee on Banking, Housing, and Urban Af- serting the following new section: section (b) and establishing the methodology fairs of the Senate.’’. ‘‘SEC. 1324. ANNUAL HOUSING REPORT REGARD- described in section 1322, the Director shall (d) CONDITIONS ON CONFORMING LOAN LIMIT ING REGULATED ENTITIES. conduct, on a monthly basis, a survey of FOR HIGH-COST AREAS.— ‘‘(a) IN GENERAL.—After reviewing and ana- mortgage markets in accordance with this (1) STUDY.—The Director of the Federal lyzing the reports submitted under section subsection. Housing Finance Agency shall conduct a 309(n) of the Federal National Mortgage As- ‘‘(2) DATA POINTS.—Each monthly survey study under this subsection during the six- sociation Charter Act, section 307(f) of the conducted by the Director under paragraph month period beginning on the effective date Federal Home Loan Mortgage Corporation (1) shall collect data on— under section 185 of this Division. Act, and section 10(j)(11) of the Federal Home ‘‘(A) the characteristics of individual (2) ISSUES.—The study under this sub- mortgages that are eligible for purchase by section shall determine— Loan Bank Act (12 U.S.C. 1430(j)(11)), the Di- rector shall submit a report, not later than the enterprises and the characteristics of in- (A) the effect that restricting the con- dividual mortgages that are not eligible for forming loan limits for high-cost areas only October 30 of each year, to the Committee on Financial Services of the House of Rep- purchase by the enterprises including, in to mortgages on which are based securities both cases, information concerning— issued and sold by the Federal National resentatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, on ‘‘(i) the price of the house that secures the Mortgage Association and the Federal Home mortgage; Loan Mortgage Corporation (as provided in the activities of each regulated entity. ‘‘(b) CONTENTS.—The report shall— ‘‘(ii) the loan-to-value ratio of the mort- the last sentence of section 302(b)(2) of the gage, which shall reflect any secondary liens Federal National Mortgage Association ‘‘(1) discuss the extent to which— on the relevant property; Charter Act and the last sentence of section ‘‘(A) each enterprise is achieving the an- ‘‘(iii) the terms of the mortgage; 305(a)(2) of the Federal Home Loan Mortgage nual housing goals established under subpart ‘‘(iv) the creditworthiness of the borrower Corporation Act, pursuant to the amend- B of this part; or borrowers; and ments made by subsections (a)(2) and (b)(2) ‘‘(B) each enterprise is complying with sec- ‘‘(v) whether the mortgage, in the case of a of this section) would have on the cost to tion 1337; conforming mortgage, was purchased by an borrowers for mortgages on housing in such ‘‘(C) each Federal home loan bank is com- enterprise; and high-cost areas; plying with section 10(j) of the Federal Home ‘‘(B) such other matters as the Director de- (B) the effects that such restrictions would Loan Bank Act; and termines to be appropriate. have on the availability of mortgages for ‘‘(D) each regulated entity is achieving the UBLIC AVAILABILITY.—The Director housing in such high-cost areas; and purposes of the regulated entity established ‘‘(3) P (C) the extent to which the Federal Na- by law; shall make any data collected by the Direc- tional Mortgage Association and the Federal ‘‘(2) aggregate and analyze relevant data tor in connection with the conduct of a Home Loan Mortgage Corporation will be on income to assess the compliance by each monthly survey available to the public in a able to issue and sell securities based on enterprise with the housing goals established timely manner, provided that the Director mortgages for housing located in such high- under subpart B; may modify the data released to the public cost areas. ‘‘(3) aggregate and analyze data on income, to ensure that the data is not released in an (3) DETERMINATION.— race, and gender by census tract and other identifiable form. (A) IN GENERAL.—Not later than the expira- relevant classifications, and compare such ‘‘(4) DEFINITION.—For purposes of this sub- tion of the six-month period specified in data with larger demographic, housing, and section, the term ‘identifiable form’ means paragraph (1), the Director of the Federal economic trends; any representation of information that per- Housing Finance Agency shall make a deter- ‘‘(4) examine actions that— mits the identity of a borrower to which the mination, based on the results of the study ‘‘(A) each enterprise has undertaken or information relates to be reasonably inferred under this subsection, of whether the restric- could undertake to promote and expand the by either direct or indirect means.’’. tion of conforming loan limits for high-cost annual goals established under subpart B and (b) STANDARDS FOR SUBPRIME LOANS.—The areas only to mortgages on which are based the purposes of the enterprise established by Director shall, not later than one year after securities issued and sold by the Federal Na- law; and the effective date under section 185, by regu- tional Mortgage Association and the Federal ‘‘(B) each Federal home loan bank has lations issued under section 1316G of the Home Loan Mortgage Corporation (as pro- taken or could undertake to promote and ex- Housing and Community Development Act of vided in the amendments made by sub- pand the community investment program 1992, establish standards by which mortgages sections (a)(2) and (b)(2) of this section) will and affordable housing program of the bank purchased and mortgages purchased and result in an increase in the cost to borrowers established under section subsections (i) and securitized shall be characterized as for mortgages on housing in such high-cost (j) of section 10 of the Federal Home Loan subprime for the purpose of, and only for the areas. Bank Act; purpose of, complying with the reporting re- (B) ORDER.—If such determination is that ‘‘(5) examine the primary and secondary quirement under section 1324(b)(9) of such costs to borrowers on housing in such high- multifamily housing mortgage markets and Act. cost areas will be increased by such restric- describe— SEC. 135. ANNUAL REPORTS BY REGULATED EN- tions, the Director may issue an order termi- ‘‘(A) the availability and liquidity of mort- TITIES ON AFFORDABLE HOUSING nating such restrictions, in whole or in part. gage credit; STOCK. (4) PUBLICATION.—Not later than the expi- ‘‘(B) the status of efforts to provide stand- The Housing and Community Development ration of the six-month period specified in ard credit terms and underwriting guidelines Act of 1992 is amended by inserting after sec- paragraph (1), the Director of the Federal for multifamily housing and to securitize tion 1328 (12 U.S.C. 4548) the following new Housing Finance Agency shall cause to be such mortgage products; and section: published in the Federal Register— ‘‘(C) any factors inhibiting such standard- ‘‘SEC. 1329. ANNUAL REPORTS ON AFFORDABLE (A) a report that— ization and securitization; HOUSING STOCK. (i) describes the study under this sub- ‘‘(6) examine actions each regulated entity ‘‘(a) IN GENERAL.—To obtain information section; and has undertaken and could undertake to pro- helpful in applying the formula under sec- (ii) sets forth the conclusions of the study mote and expand opportunities for first-time tion 1337(c)(2) for the affordable housing pro- regarding the issues to be determined under homebuyers, including the use of alternative gram under such section and for other appro- paragraph (2); and credit scoring; priate uses, the regulated entities shall con- (B) notice of the determination of the Di- ‘‘(7) describe any actions taken under sec- duct, or provide for the conducting of, a rector under paragraph (3); and tion 1325(5) with respect to originators found study on an annual basis to determine the (C) the order of the Director under para- to violate fair lending procedures; levels of affordable housing inventory, and graph (3). ‘‘(8) discuss and analyze existing condi- the changes in such levels, in communities (5) DEFINITION.—For purposes of this sub- tions and trends, including conditions and throughout the United States. section, the term ‘‘conforming loan limits trends relating to pricing, in the housing ‘‘(b) CONTENTS.—The annual study under for high-cost areas’’ means the dollar markets and mortgage markets; and this section shall determine, for the United amount limitations applicable under the sec- ‘‘(9) identify the extent to which each en- States, each State, and each community tion 302(b)(2) of the Federal National Mort- terprise is involved in mortgage purchases within each State— gage Association Charter Act and section and secondary market activities involving ‘‘(1) the level of affordable housing inven- 305(a)(2) of the Federal Home Loan Mortgage subprime loans (as identified in accordance tory, including affordable rental dwelling Corporation Act (as amended by subsections with the regulations issued pursuant to sec- units and affordable homeownership dwelling (a) and (b) of this section) for areas described tion 134(b) of the Federal Housing Finance units;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00195 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.130 S03APPT1 ccoleman on PRODPC75 with SENATE S2562 CONGRESSIONAL RECORD — SENATE April 3, 2008 ‘‘(2) any changes to the level of such inven- (12 U.S.C. 1454) is amended by adding at the ing, and Urban Affairs of the Senate a report tory during the 12-month period of the study end the following new subsection: describing the actions taken, and being under this section, including— ‘‘(d) PROHIBITION REGARDING MORTGAGOR taken, by the Director to carry out this sub- ‘‘(A) any additions to such inventory, IDENTIFICATION REQUIREMENTS.—Nothing in section. No such report shall identify any disaggregated by the category of such addi- this Act may be construed to authorize the lender or lenders who have not been found to tions (including new construction or housing Corporation to purchase, service, hold, sell, have engaged in discriminatory lending prac- conversion); lend on the security of, or otherwise deal tices pursuant to a final adjudication on the ‘‘(B) any subtractions from such inventory, with any mortgage that the Corporation is record, and after opportunity for an adminis- disaggregated by the category of such sub- prohibited from so dealing with under the trative hearing, in accordance with subtractions (including abandonment, demoli- standards issued under section 1330 of the chapter II of chapter 5 of title 5, United tion, or upgrade to market-rate housing); Housing and Community Development Act of States Code. ‘‘(C) the number of new affordable dwelling 1992 by the Director of the Federal Housing ‘‘(4) PROTECTION OF IDENTITY OF INDIVID- units placed in service; and Finance Agency.’’. UALS.—In carrying out this subsection, the ‘‘(D) the number of affordable housing (d) FEDERAL HOME LOAN BANKS.—Section Director shall ensure that no property-re- dwelling units withdrawn from service; 10(a) of the Federal Home Loan Bank Act (12 lated or financial information that would en- ‘‘(3) the types of financing used to build U.S.C. 1430(a)) is amended— able a borrower to be identified shall be any dwelling units added to such inventory (1) by redesignating paragraph (6) as para- made public. level and the period during which such units graph (7); and ‘‘(c) TIMING.—The Director shall establish are required to remain affordable; (2) by inserting after paragraph (5) the fol- an annual deadline by which the Director ‘‘(4) any excess demand for affordable hous- lowing new paragraph: shall establish the annual housing goals ing, including the number of households on ‘‘(6) PROHIBITION REGARDING MORTGAGOR under this subpart for each year, taking into rental housing waiting lists and the tenure IDENTIFICATION REQUIREMENTS.—Nothing in consideration the need for the enterprises to of the wait on such lists; and this Act may be construed to authorize a reasonably and sufficiently plan their oper- ‘‘(5) such other information as the Director Federal Home Loan Bank to provide any ad- ations and activities in advance, including may require. vance to a member for use in financing, or operations and activities necessary to meet ‘‘(c) REPORT.—For each annual study con- accept as collateral for an advance under such annual goals. ducted pursuant to this section, the regu- this section, any mortgage that a Bank is ‘‘SEC. 1332. SINGLE-FAMILY HOUSING GOALS. lated entities shall submit to the Congress, prohibited from so accepting under the ‘‘(a) IN GENERAL.—The Director shall es- and make publicly available, a report setting standards issued under section 1330 of the tablish annual goals for the purchase by each forth the findings of the study. Housing and Community Development Act of enterprise of conventional, conforming, sin- ‘‘(d) REGULATIONS AND TIMING.—The Direc- 1992 by the Director of the Federal Housing gle-family, purchase money mortgages fi- tor shall, by regulation, establish require- Finance Agency.’’. ments for the studies and reports under this nancing owner-occupied and rental housing SEC. 137. REVISION OF HOUSING GOALS. section, including deadlines for the submis- for each of the following categories of fami- (a) HOUSING GOALS.—The Housing and sion of such annual reports and standards for lies: Community Development Act of 1992 is determining affordable housing.’’. ‘‘(1) Low-income families. amended by striking sections 1331 through ‘‘(2) Families that reside in low-income SEC. 136. MORTGAGOR IDENTIFICATION RE- 1334 (12 U.S.C. 4561–4) and inserting the fol- QUIREMENTS FOR MORTGAGES OF areas. REGULATED ENTITIES. lowing new sections: ‘‘(3) Very low-income families. (a) IN GENERAL.—Subpart A of part 2 of ‘‘SEC. 1331. ESTABLISHMENT OF HOUSING GOALS. ‘‘(b) REFINANCE SUBGOAL.— subtitle A of title XIII of the Housing and ‘‘(a) IN GENERAL.—The Director shall es- ‘‘(1) IN GENERAL.—The Director shall estab- Community Development Act of 1992 (12 tablish, effective for the first year that be- lish a separate subgoal within each goal U.S.C. 4541 et seq.), as amended by the pre- gins after the effective date under section 185 under subsection (a)(1) for the purchase by ceding provisions of this Division, is further of the Federal Housing Finance Reform Act each enterprise of mortgages for low-income amended by adding at the end the following of 2007 and each year thereafter, annual families on single family housing given to new section: housing goals, with respect to the mortgage pay off or prepay an existing loan secured by ‘‘SEC. 1330. MORTGAGOR IDENTIFICATION RE- purchases by the enterprises, as follows: the same property. The Director shall, for QUIREMENTS FOR MORTGAGES OF ‘‘(1) SINGLE FAMILY HOUSING GOALS.—Three each year, determine whether each enter- REGULATED ENTITIES. single-family housing goals under section prise has complied with the subgoal under ‘‘(a) LIMITATION.—The Director shall by 1332. this subsection in the same manner provided regulation establish standards, and shall en- ‘‘(2) MULTIFAMILY SPECIAL AFFORDABLE under this section for determining compli- force compliance with such standards, that— HOUSING GOALS.—A multifamily special af- ance with the housing goals. ‘‘(1) prohibit the enterprises from the pur- fordable housing goal under section 1333. ‘‘(2) ENFORCEMENT.—For purposes of sec- chase, service, holding, selling, lending on ‘‘(b) ELIMINATING INTEREST RATE DISPARI- tion 1336, the subgoal established under para- the security of, or otherwise dealing with TIES.— graph (1) of this subsection shall be consid- any mortgage on a one- to four-family resi- ‘‘(1) IN GENERAL.—Upon request by the Di- ered to be a housing goal established under dence that will be used as the principal resi- rector, an enterprise shall provide to the Di- this section. Such subgoal shall not be en- dence of the mortgagor that does not meet rector, in a form determined by the Director, forceable under any other provision of this the requirements under subsection (b); and data the Director may review to determine title (including subpart C of this part) other ‘‘(2) prohibit the Federal home loan banks whether there exist disparities in interest than section 1336 or under any provision of from providing any advances to a member rates charged on mortgages to borrowers the Federal National Mortgage Association for use in financing, and from accepting as who are minorities as compared with com- Charter Act or the Federal Home Loan Mort- collateral for any advance to a member, any parable mortgages to borrowers of similar gage Corporation Act. mortgage on a one- to four-family residence creditworthiness who are not minorities. ‘‘(c) DETERMINATION OF COMPLIANCE.—The that will be used as the principal residence of ‘‘(2) REMEDIAL ACTIONS UPON PRELIMINARY Director shall determine, for each year that the mortgagor that does not meet the re- FINDING.—Upon a preliminary finding by the the housing goals under this section are in quirements under subsection (b). Director that a pattern of disparities in in- effect pursuant to section 1331(a), whether ‘‘(b) IDENTIFICATION REQUIREMENTS.—The terest rates with respect to any lender or each enterprise has complied with the single- requirements under this subsection with re- lenders exists pursuant to the data provided family housing goals established under this spect to a mortgage are that the mortgagor by an enterprise in paragraph (1), the Direc- section for such year. An enterprise shall be have, at the time of settlement on the mort- tor shall— considered to be in compliance with such a gage, a Social Security account number.’’. ‘‘(A) refer the preliminary finding to the goal for a year only if, for each of the types (b) FANNIE MAE.—Section 304 of the Fed- eral National Mortgage Association Charter appropriate regulatory or enforcement agen- of families described in subsection (a), the Act (12 U.S.C. 1719) is amended by adding at cy for further review; percentage of the number of conventional, the end the following new subsection: ‘‘(B) require the enterprise to submit addi- conforming, single-family, owner-occupied or ‘‘(g) PROHIBITION REGARDING MORTGAGOR tional data with respect to any lender or rental, as applicable, purchase money mort- IDENTIFICATION REQUIREMENT.—Nothing in lenders, as appropriate and to the extent gages purchased by each enterprise in such this Act may be construed to authorize the practicable, to the Director who shall submit year that serve such families, meets or ex- corporation to purchase, service, hold, sell, any such additional data to the regulatory ceeds the target for the year for such type of lend on the security of, or otherwise deal or enforcement agency for appropriate ac- family that is established under subsection with any mortgage that the corporation is tion; and (d). prohibited from so dealing with under the ‘‘(C) require the enterprise to undertake ‘‘(d) ANNUAL TARGETS.— standards issued under section 1330 of the remedial actions, as appropriate, pursuant to ‘‘(1) IN GENERAL.—Except as provided in Housing and Community Development Act of section 1325(5) (12 U.S.C. 4545(5)). paragraph (2), for each of the types of fami- 1992 by the Director of the Federal Housing ‘‘(3) ANNUAL REPORT TO CONGRESS.—The Di- lies described in subsection (a), the target Finance Agency.’’. rector shall submit to the Committee on Fi- under this subsection for a year shall be the (c) FREDDIE MAC.—Section 305 of the Fed- nancial Services of the House of Representa- average percentage, for the three years that eral Home Loan Mortgage Corporation Act tives and the Committee on Banking, Hous- most recently precede such year and for

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00196 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.130 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2563 which information under the Home Mortgage ‘‘SEC. 1333. MULTIFAMILY SPECIAL AFFORDABLE and the additional requirements under sub- Disclosure Act of 1975 is publicly available, HOUSING GOAL. section (a)(2). of the number of conventional, conforming, ‘‘(a) ESTABLISHMENT.— ‘‘SEC. 1334. DISCRETIONARY ADJUSTMENT OF single-family, owner-occupied or rental, as ‘‘(1) IN GENERAL.—The Director shall estab- HOUSING GOALS. applicable, purchase money mortgages origi- lish, by regulation, an annual goal for the ‘‘(a) AUTHORITY.—An enterprise may peti- nated in such year that serves such type of purchase by each enterprise of each of the tion the Director in writing at any time dur- family, as determined by the Director using following types of mortgages on multifamily ing a year to reduce the level of any goal for the information obtained and determined housing: such year established pursuant to this sub- pursuant to paragraphs (3) and (4). ‘‘(A) Mortgages that finance dwelling units part. ‘‘(2) AUTHORITY TO INCREASE TARGETS.— for low-income families. ‘‘(b) STANDARD FOR REDUCTION.—The Direc- ‘‘(A) IN GENERAL.—The Director may, for ‘‘(B) Mortgages that finance dwelling units tor may reduce the level for a goal pursuant any year, establish by regulation, for any or for very low-income families. to such a petition only if— all of the types of families described in sub- ‘‘(C) Mortgages that finance dwelling units ‘‘(1) market and economic conditions or section (a), percentage targets that are high- assisted by the low-income housing tax cred- the financial condition of the enterprise reer than the percentages for such year deter- it under section 42 of the Internal Revenue quire such action; or mined pursuant to paragraph (1), to reflect Code of 1986. ‘‘(2) efforts to meet the goal would result expected changes in market performance re- ‘‘(2) ADDITIONAL REQUIREMENTS FOR SMALL- in the constraint of liquidity, over-invest- lated to such information under the Home ER PROJECTS.—The Director shall establish, ment in certain market segments, or other Mortgage Disclosure Act of 1975. within the goal under this section, addi- consequences contrary to the intent of this ‘‘(B) FACTORS.—In establishing any targets tional requirements for the purchase by each subpart, or section 301(3) of the Federal Na- pursuant to subparagraph (A), the Director enterprise of mortgages described in para- tional Mortgage Association Charter Act (12 shall consider the following factors: graph (1) for multifamily housing projects of U.S.C. 1716(3)) or section 301(3) of the Federal ‘‘(i) National housing needs. a smaller or limited size, which may be Home Loan Mortgage Corporation Act (12 ‘‘(ii) Economic, housing, and demographic based on the number of dwelling units in the U.S.C. 1451 note), as applicable. conditions. project or the amount of the mortgage, or ‘‘(c) DETERMINATION.—The Director shall ‘‘(iii) The performance and effort of the en- both, and shall include multifamily housing make a determination regarding any pro- terprises toward achieving the housing goals projects of such smaller sizes as are typical posed reduction within 30 days of receipt of under this section in previous years. among such projects that serve rural areas. the petition regarding the reduction. The Di- ‘‘(iv) The size of the conventional mort- ‘‘(3) FACTORS.—In establishing the goal rector may extend such period for a single gage market serving each of the types of under this section relating to mortgages on additional 15-day period, but only if the Di- rector requests additional information from families described in subsection (a) relative multifamily housing for an enterprise for a the enterprise. A denial by the Director to to the size of the overall conventional mort- year, the Director shall consider— reduce the level of any goal under this sec- gage market. ‘‘(A) national multifamily mortgage credit tion may be appealed to the United States ‘‘(v) The ability of the enterprise to lead needs; District Court for the District of Columbia the industry in making mortgage credit ‘‘(B) the performance and effort of the en- or the United States district court in the ju- available. terprise in making mortgage credit available risdiction in which the headquarters of an ‘‘(vi) The need to maintain the sound fi- for multifamily housing in previous years; enterprise is located.’’. nancial condition of the enterprises. ‘‘(C) the size of the multifamily mortgage (b) CONFORMING AMENDMENTS.—The Hous- market; ‘‘(3) HMDA INFORMATION.—The Director ing and Community Development Act of 1992 ‘‘(D) the ability of the enterprise to lead shall annually obtain information submitted is amended— the industry in making mortgage credit in compliance with the Home Mortgage Dis- (1) in section 1335(a) (12 U.S.C. 4565(a)), in available, especially for underserved mar- closure Act of 1975 regarding conventional, the matter preceding paragraph (1), by strik- kets, such as for small multifamily projects conforming, single-family, owner-occupied or ing ‘‘low- and moderate-income housing of 5 to 50 units, multifamily properties in rental, as applicable, purchase money mort- goal’’ and all that follows through ‘‘section need of rehabilitation, and multifamily prop- gages originated and purchased for the pre- 1334’’ and inserting ‘‘housing goals estab- erties located in rural areas; and vious year. lished under this subpart’’; and ‘‘(E) the need to maintain the sound finan- ‘‘(4) CONFORMING MORTGAGES.—In deter- (2) in section 1336(a)(1) (12 U.S.C. 4566(a)(1)), cial condition of the enterprise. mining whether a mortgage is a conforming by striking ‘‘sections 1332, 1333, and 1334,’’ mortgage for purposes of this paragraph, the ‘‘(b) UNITS FINANCED BY HOUSING FINANCE and inserting ‘‘this subpart’’. Director shall consider the original principal AGENCY BONDS.—The Director shall give (c) DEFINITIONS.—Section 1303 of the Hous- balance of the mortgage loan to be the prin- credit toward the achievement of the multi- ing and Community Development Act of 1992 cipal balance as reported in the information family special affordable housing goal under (12 U.S.C. 4502), as amended by the preceding referred to in paragraph (3), as rounded to this section (for purposes of section 1336) to provisions of this Division, is further amend- the nearest thousand dollars. dwelling units in multifamily housing that ed— ‘‘(e) NOTICE OF DETERMINATION AND ENTER- otherwise qualifies under such goal and that (1) in paragraph (22) (relating to the defini- PRISE COMMENT.— is financed by tax-exempt or taxable bonds tion of ‘‘very low-income’’), by striking ‘‘60 ‘‘(1) NOTICE.—Within 30 days of making a issued by a State or local housing finance percent’’ each place such term appears and determination under subsection (c) regarding agency, but only if such bonds— inserting ‘‘50 percent’’; a compliance of an enterprise for a year with ‘‘(1) are secured by a guarantee of the en- (2) by redesignating paragraphs (19) a housing goal established under this section terprise; or through (22) as paragraphs (23) through (26), and before any public disclosure thereof, the ‘‘(2) are not investment grade and are pur- respectively; Director shall provide notice of the deter- chased by the enterprise. (3) by inserting after paragraph (18) the fol- mination to the enterprise, which shall in- ‘‘(c) USE OF TENANT INCOME OR RENT.—The lowing new paragraph: clude an analysis and comparison, by the Di- Director shall monitor the performance of ‘‘(22) RURAL AREA.—The term ‘rural area’ rector, of the performance of the enterprise each enterprise in meeting the goals estab- has the meaning given such term in section for the year and the targets for the year lished under this section and shall evaluate 520 of the Housing Act of 1949 (42 U.S.C. 1490), under subsection (d). such performance (for purposes of section except that such term includes micropolitan ‘‘(2) COMMENT PERIOD.—The Director shall 1336) based on— areas and tribal trust lands.’’. provide each enterprise an opportunity to ‘‘(1) the income of the prospective or ac- (4) by redesignating paragraphs (13) comment on the determination during the tual tenants of the property, where such data through (18) as paragraphs (16) through (21), 30-day period beginning upon receipt by the are available; or respectively; enterprise of the notice. ‘‘(2) where the data referred to in para- (5) by inserting after paragraph (12) the fol- ‘‘(f) USE OF BORROWER INCOME.—In moni- graph (1) are not available, rent levels af- lowing new paragraph: toring the performance of each enterprise fordable to low-income and very low-income ‘‘(15) LOW-INCOME AREA.—The term ‘low in- pursuant to the housing goals under this sec- families. come area’ means a census tract or block tion and evaluating such performance (for A rent level shall be considered to be afford- numbering area in which the median income purposes of section 1336), the Director shall able for purposes of this subsection for an in- does not exceed 80 percent of the median in- consider a mortgagor’s income to be such income category referred to in this subsection come for the area in which such census tract come at the time of origination of the mort- if it does not exceed 30 percent of the max- or block numbering area is located, and, for gage. imum income level of such income category, the purposes of section 1332(a)(2), shall in- ‘‘(g) CONSIDERATION OF UNITS IN SINGLE- with appropriate adjustments for unit size as clude families having incomes not greater FAMILY RENTAL HOUSING.—In establishing measured by the number of bedrooms. than 100 percent of the area median income any goal under this subpart, the Director ‘‘(d) DETERMINATION OF COMPLIANCE.—The who reside in minority census tracts.’’; may take into consideration the number of Director shall, for each year that the hous- (6) by redesignating paragraphs (11) and housing units financed by any mortgage on ing goal under this section is in effect pursu- (12) as paragraphs (13) and (14), respectively; single-family rental housing purchased by an ant to section 1331(a), determine whether (7) by inserting after paragraph (10) the fol- enterprise. each enterprise has complied with such goal lowing new paragraph:

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00197 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.131 S03APPT1 ccoleman on PRODPC75 with SENATE S2564 CONGRESSIONAL RECORD — SENATE April 3, 2008

‘‘(12) EXTREMELY LOW-INCOME.—The term lies, including housing projects subsidized (2) by adding at the end of such subsection, ‘extremely low-income’ means— under— as amended by the preceding provisions of ‘‘(A) in the case of owner-occupied units, ‘‘(i) the project-based and tenant-based this title, the following new paragraph: income not in excess of 30 percent of the area rental assistance programs under section 8 of ‘‘(4) ENFORCEMENT OF DUTY TO PROVIDE median income; and the United States Housing Act of 1937; MORTGAGE CREDIT TO UNDERSERVED MAR- ‘‘(B) in the case of rental units, income not ‘‘(ii) the program under section 236 of the KETS.—The duty under section 1335(a) of each in excess of 30 percent of the area median in- National Housing Act; enterprise to serve underserved markets (as come, with adjustments for smaller and larg- ‘‘(iii) the below-market interest rate mort- determined in accordance with section er families, as determined by the Sec- gage program under section 221(d)(4) of the 1335(c)) shall be enforceable under this secretary.’’; National Housing Act; tion to the same extent and under the same (8) by redesignating paragraphs (7) through ‘‘(iv) the supportive housing for the elderly provisions that the housing goals established (10) as paragraphs (8) through (11), respec- program under section 202 of the Housing under this subpart are enforceable. Such tively; and Act of 1959; duty shall not be enforceable under any (9) by inserting after paragraph (6) the fol- ‘‘(v) the supportive housing program for other provision of this title (including sub- lowing new paragraph: persons with disabilities under section 811 of part C of this part) other than this section or ‘‘(7) CONFORMING MORTGAGE.—The term the Cranston-Gonzalez National Affordable under any provision of the Federal National ‘conforming mortgage’ means, with respect Housing Act; Mortgage Association Charter Act or the to an enterprise, a conventional mortgage ‘‘(vi) the programs under title IV of the Federal Home Loan Mortgage Corporation having an original principal obligation that McKinney-Vento Homeless Assistance Act Act.’’. does not exceed the dollar limitation, in ef- (42 U.S.C. 11361 et seq.), but only permanent SEC. 139. MONITORING AND ENFORCING COMPLI- fect at the time of such origination, under, supportive housing projects subsidized under ANCE WITH HOUSING GOALS. as applicable— such programs; and (a) ADDITIONAL CREDIT FOR CERTAIN MORT- ‘‘(A) section 302(b)(2) of the Federal Na- ‘‘(vii) the rural rental housing program GAGES.—Section 1336(a) of the Housing and tional Mortgage Association Charter Act; or under section 515 of the Housing Act of 1949. Community Development Act of 1992 (12 U.S.C. 4566(a)) is amended— ‘‘(B) section 305(a)(2) of the Federal Home ‘‘(C) RURAL AND OTHER UNDERSERVED MAR- (1) in paragraph (2), by inserting ‘‘, except Loan Mortgage Corporation Act.’’. KETS.—The enterprise shall lead the industry in developing loan products and flexible un- as provided in paragraph (4),’’ after ‘‘which’’; SEC. 138. DUTY TO SERVE UNDERSERVED MAR- and KETS. derwriting guidelines to facilitate a secondary market for mortgages on housing for (2) by adding at the end the following new (a) ESTABLISHMENT AND EVALUATION OF paragraph: very low-, low-, and moderate-income fami- PERFORMANCE.—Section 1335 of the Housing ‘‘(5) ADDITIONAL CREDIT.—The Director lies in rural areas, and for mortgages for and Community Development Act of 1992 (12 shall assign more than 125 percent credit to- housing for any other underserved market U.S.C. 4565) is amended— ward achievement, under this section, of the for very low-, low-, and moderate-income (1) in the section heading, by inserting housing goals for mortgage purchase activi- families that the Secretary identifies as ‘‘DUTY TO SERVE UNDERSERVED MAR- ties of the enterprises that comply with the lacking adequate credit through conven- KETS AND’’ before ‘‘OTHER’’; requirements of such goals and support— tional lending sources. Such underserved (2) by striking subsection (b); ‘‘(A) housing that meets energy efficiency markets may be identified by borrower type, (3) in subsection (a)— or other environmental standards that are (A) in the matter preceding paragraph (1), market segment, or geographic area.’’; and established by a Federal, State, or local gov- by inserting ‘‘and to carry out the duty (5) by adding at the end the following new ernmental authority with respect to the geo- under subsection (a) of this section’’ before subsection: graphic area where the housing is located or ‘‘, each enterprise shall’’; ‘‘(c) EVALUATION AND REPORTING OF COM- are otherwise widely recognized; or (B) in paragraph (3), by inserting ‘‘and’’ PLIANCE.— ‘‘(B) housing that includes a licensed after the semicolon at the end; ‘‘(1) IN GENERAL.—Not later than 6 months childcare center. after the effective date under section 185 of (C) in paragraph (4), by striking ‘‘; and’’ The availability of additional credit under the Federal Housing Finance Reform Act of and inserting a period; this paragraph shall not be used to increase 2007, the Director shall establish a manner (D) by striking paragraph (5); and any housing goal, subgoal, or target estab- for evaluating whether, and the extent to (E) by redesignating such subsection as lished under this subpart.’’. subsection (b); which, the enterprises have complied with (b) MONITORING AND ENFORCEMENT.—Sec- (4) by inserting before subsection (b) (as so the duty under subsection (a) to serve under- tion 1336 of the Housing and Community De- redesignated by paragraph (3)(E) of this sub- served markets and for rating the extent of velopment Act of 1992 (12 U.S.C. 4566) is section) the following new subsection: such compliance. Using such method, the Di- amended— ‘‘(a) DUTY TO SERVE UNDERSERVED MAR- rector shall, for each year, evaluate such (1) in subsection (b)— KETS.— compliance and rate the performance of each (A) in the subsection heading, by inserting ‘‘(1) DUTY.—In accordance with the purpose enterprise as to extent of compliance. The ‘‘PRELIMINARY’’ before ‘‘DETERMINATION’’; of the enterprises under section 301(3) of the Director shall include such evaluation and (B) by striking paragraph (1) and inserting Federal National Mortgage Association rating for each enterprise for a year in the the following new paragraph: Charter Act (12 U.S.C. 1716) and section report for that year submitted pursuant to ‘‘(1) NOTICE.—If the Director preliminarily 301(b)(3) of the Federal Home Loan Mortgage section 1319B(a). determines that an enterprise has failed, or Corporation Act (12 U.S.C. 1451 note) to un- ‘‘(2) SEPARATE EVALUATIONS.—In deter- that there is a substantial probability that dertake activities relating to mortgages on mining whether an enterprise has complied an enterprise will fail, to meet any housing housing for very low-, low-, and moderate-in- with the duty referred to in paragraph (1), goal established under this subpart, the Di- come families involving a reasonable eco- the Director shall separately evaluate rector shall provide written notice to the en- nomic return that may be less than the re- whether the enterprise has complied with terprise of such a preliminary determina- turn earned on other activities, each enter- such duty with respect to each of the under- tion, the reasons for such determination, and prise shall have the duty to increase the li- served markets identified in subsection (a), the information on which the Director based quidity of mortgage investments and im- taking into consideration— the determination.’’; prove the distribution of investment capital ‘‘(A) the development of loan products and (C) in paragraph (2)— available for mortgage financing for under- more flexible underwriting guidelines; (i) in subparagraph (A), by inserting ‘‘fi- served markets. ‘‘(B) the extent of outreach to qualified nally’’ before ‘‘determining’’; ‘‘(2) UNDERSERVED MARKETS.—To meet its loan sellers in each of such underserved mar- (ii) by striking subparagraphs (B) and (C) duty under paragraph (1), each enterprise kets; and and inserting the following new subpara- shall comply with the following require- ‘‘(C) the volume of loans purchased in each graph: ments with respect to the following under- of such underserved markets. ‘‘(B) EXTENSION OR SHORTENING OF PE- served markets: ‘‘(3) MANUFACTURED HOUSING MARKET.—In RIOD.—The Director may— ‘‘(A) MANUFACTURED HOUSING.—The enter- determining whether an enterprise has com- ‘‘(i) extend the period under subparagraph prise shall lead the industry in developing plied with the duty under subparagraph (A) (A) for good cause for not more than 30 addi- loan products and flexible underwriting of subsection (a)(2), the Director may con- tional days; and guidelines to facilitate a secondary market sider loans secured by both real and personal ‘‘(ii) shorten the period under subpara- for mortgages on manufactured homes for property.’’. graph (A) for good cause.’’; and very low-, low-, and moderate-income fami- (b) ENFORCEMENT.—Subsection (a) of sec- (iii) by redesignating subparagraph (D) as lies. tion 1336 of the Housing and Community De- subparagraph (C); and ‘‘(B) AFFORDABLE HOUSING PRESERVATION.— velopment Act of 1992 (12 U.S.C. 4566(a)) is (D) in paragraph (3)— The enterprise shall lead the industry in de- amended— (i) in subparagraph (A), by striking ‘‘deter- veloping loan products and flexible under- (1) in paragraph (1), by inserting ‘‘and with mine’’ and inserting ‘‘issue a final deter- writing guidelines to facilitate a secondary the duty under section 1335(a) of each enter- mination of’’; market to preserve housing affordable to prise with respect to underserved markets,’’ (ii) in subparagraph (B), by inserting very low-, low-, and moderate-income fami- before ‘‘as provided in this section’’; and ‘‘final’’ before ‘‘determinations’’; and

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00198 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.131 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2565 (iii) in subparagraph (C)— of Housing and Urban Development, shall es- ‘‘(ii) The allocation percentage for the Mis- (I) by striking ‘‘Committee on Banking, Fi- tablish and manage an affordable housing sissippi Development Authority shall be 25 nance and Urban Affairs’’ and inserting fund in accordance with this section, which percent. ‘‘Committee on Financial Services’’; and shall be funded with amounts allocated by ‘‘(B) USE IN DISASTER AREAS.—Affordable (II) by inserting ‘‘final’’ before ‘‘determina- the enterprises under subsection (b). The housing grant amounts for 2007 shall be used tion’’ each place such term appears; and purpose of the affordable housing fund shall only as provided in subsection (g) only for (2) in subsection (c)— be to provide formula grants to grantees for such eligible activities in areas that were (A) by striking the subsection designation use— subject to a declaration by the President of a major disaster or emergency under the and heading and all that follows through the ‘‘(1) to increase homeownership for ex- Robert T. Stafford Disaster Relief and Emer- end of paragraph (1) and inserting the fol- tremely low-and very low-income families; gency Assistance Act (42 U.S.C. 5121 et seq.) lowing: ‘‘(2) to increase investment in housing in in connection with Hurricane Katrina or ‘‘(c) CEASE AND DESIST ORDERS, CIVIL low-income areas, and areas designated as Rita of 2005. MONEY PENALTIES, AND REMEDIES INCLUDING qualified census tracts or an area of chronic ‘‘(2) ALLOCATION FORMULA FOR OTHER HOUSING PLANS.— economic distress pursuant to section 143(j) YEARS.—The Secretary of Housing and Urban ‘‘(1) REQUIREMENT.—If the Director finds, of the Internal Revenue Code of 1986 (26 Development shall, by regulation, establish a pursuant to subsection (b), that there is a U.S.C. 143(j)); substantial probability that an enterprise formula to allocate, among the States (as ‘‘(3) to increase and preserve the supply of such term is defined in section 1303) and fed- will fail, or has actually failed, to meet any rental and owner-occupied housing for ex- housing goal under this subpart and that the erally recognized Indian tribes, the amounts tremely low- and very low-income families; provided by the enterprises in each year re- achievement of the housing goal was or is ‘‘(4) to increase investment in public infra- feasible, the Director may require that the ferred to subsection (b)(1), other than 2007, to structure development in connection with the affordable housing fund established enterprise submit a housing plan under this housing assisted under this section; and subsection. If the Director makes such a under this section. The formula shall be ‘‘(5) to leverage investments from other based on the following factors, with respect finding and the enterprise refuses to submit sources in affordable housing and in public such a plan, submits an unacceptable plan, to each State and tribe: infrastructure development in connection ‘‘(A) The ratio of the population of the fails to comply with the plan or the Director with housing assisted under this section. finds that the enterprise has failed to meet State or federally recognized Indian tribe to any housing goal under this subpart, in addi- ‘‘(b) ALLOCATION OF AMOUNTS BY ENTER- the aggregate population of all the States tion to requiring an enterprise to submit a PRISES.— and tribes. housing plan, the Director may issue a cease ‘‘(1) IN GENERAL.—In accordance with regu- ‘‘(B) The percentage of families in the and desist order in accordance with section lations issued by the Director under sub- State or federally recognized Indian tribe 1341, impose civil money penalties in accord- section (m) and subject to paragraph (2) of that pay more than 50 percent of their an- ance with section 1345, or order other rem- this subsection and subsection (i)(5), each en- nual income for housing costs. edies as set forth in paragraph (7) of this sub- terprise shall allocate to the affordable hous- ‘‘(C) The percentage of persons in the State section.’’; ing fund established under subsection (a), in or federally recognized Indian tribe that are (B) in paragraph (2)— each of the years 2007 through 2011, an members of extremely low- or very low-income families. (i) by striking ‘‘CONTENTS.—Each housing amount equal to 1.2 basis points for each dol- ‘‘(D) The cost of developing or carrying out plan’’ and inserting ‘‘HOUSING PLAN.—If the lar of the average total mortgage portfolio of Director requires a housing plan under this the enterprise during the preceding year. rehabilitation of housing in the State or for section, such a plan’’; and ‘‘(2) SUSPENSION OF CONTRIBUTIONS.—The the federally recognized Indian tribe. ‘‘(E) The percentage of families in the (ii) in subparagraph (B), by inserting ‘‘and Director shall temporarily suspend the allo- State or federally recognized Indian tribe changes in its operations’’ after ‘‘improve- cation under paragraph (1) by an enterprise that live in substandard housing. ments’’; to the affordable housing fund upon a finding ‘‘(F) The percentage of housing stock in (C) in paragraph (3)— by the Director that such allocations— the State or for the federally recognized In- (i) by inserting ‘‘comply with any remedial ‘‘(A) are contributing, or would contribute, dian tribe that is extremely old housing. action or’’ before ‘‘submit a housing plan’’; to the financial instability of the enterprise; ‘‘(G) Any other factors that the Secretary and ‘‘(B) are causing, or would cause, the enter- determines to be appropriate. (ii) by striking ‘‘under subsection (b)(3) prise to be classified as undercapitalized; or ‘‘(C) are preventing, or would prevent, the ‘‘(3) FAILURE TO ESTABLISH.—If, in any year that a housing plan is required’’; referred to in subsection (b)(1), other than (D) in paragraph (4), by striking the first enterprise from successfully completing a capital restoration plan under section 1369C. 2007, the regulations establishing the for- two sentences and inserting the following: mula required under paragraph (2) of this ‘‘(3) 5-YEAR SUNSET AND REPORT.— ‘‘The Director shall review each submission subsection have not been issued by the date by an enterprise, including a housing plan ‘‘(A) SUNSET.—The enterprises shall not be required to make allocations to the afford- that the Director determines the amounts submitted under this subsection, and not described in subsection (d)(1) to be available later than 30 days after submission, approve able housing fund in 2012 or in any year thereafter. for affordable housing fund grants in such or disapprove the plan or other action. The year, for purposes of such year any amounts Director may extend the period for approval ‘‘(B) REPORT ON PROGRAM CONTINUANCE.— Not later than June 30, 2011, the Director for a State (as such term is defined in sec- or disapproval for a single additional 30-day tion 1303 of this Act) that would otherwise be period if the Director determines such exten- shall submit to the Committee on Financial Services of the House of Representatives and determined under subsection (d) by applying sion necessary.’’; and the formula established pursuant to para- (E) by adding at the end the following new the Committee on Banking, Housing, and Urban Affairs of the Senate a report making graph (2) of this subsection shall be deter- paragraph: mined instead by applying, for such State, ‘‘(7) ADDITIONAL REMEDIES FOR FAILURE TO recommendations on whether the program under this section, including the require- the percentage that is equal to the percent- MEET GOALS.—In addition to ordering a hous- age of the total amounts made available for ing plan under this section, issuing cease and ment for the enterprises to make allocations to the affordable housing fund, should be ex- such year for allocation under subtitle A of desist orders under section 1341, and ordering title II of the Cranston-Gonzalez National civil money penalties under section 1345, the tended and on any modifications for the program. Affordable Housing Act (42 U.S.C. 12741 et Director may seek other actions when an en- seq.) that are allocated in such year, pursu- ‘‘(4) PROHIBITION OF PASS-THROUGH OF COST terprise fails to meet a goal, and exercise ap- ant to such subtitle, to such State (including OF ALLOCATIONS.—The Director shall, by reg- propriate enforcement authority available to any insular area or unit of general local gov- the Director under this Act to prohibit the ulation, prohibit each enterprise from re- directing such costs, through increased ernment, as such terms are defined in sec- enterprise from initially offering any prod- tion 104 of such Act (42 U.S.C. 12704), that is uct (as such term is defined in section 1321(f)) charges or fees, or decreased premiums, or in any other manner, to the originators of treated as a State under section 1303 of this or engaging in any new activities, services, Act) and to participating jurisdictions and undertakings, and offerings and to order the mortgages purchased or securitized by the enterprise. other eligible entities within such State. enterprise to suspend products and activi- ‘‘(d) ALLOCATION OF FORMULA AMOUNT; ties, services, undertakings, and offerings ‘‘(c) AFFORDABLE HOUSING NEEDS FOR- GRANTS.— pending its achievement of the goal.’’. MULAS.— ‘‘(1) FORMULA AMOUNT.—For each year re- SEC. 140. AFFORDABLE HOUSING FUND. ‘‘(1) ALLOCATION FOR 2007.— ferred to in subsection (b)(1), the Director (a) IN GENERAL.—The Housing and Commu- ‘‘(A) ALLOCATION PERCENTAGES FOR LOU- shall determine the formula amount under nity Development Act of 1992 is amended by ISIANA AND MISSISSIPPI.—For purposes of sub- this section for each grantee, which shall be striking sections 1337 and 1338 (12 U.S.C. 4562 section (d)(1)(A), the allocation percentages the amount determined for such grantee— note) and inserting the following new sec- for 2007 for the grantees under this section ‘‘(A) for 2007, by applying the allocation tion: for such year shall be as follows: percentages under subparagraph (A) of sub- ‘‘SEC. 1337. AFFORDABLE HOUSING FUND. ‘‘(i) The allocation percentage for the Lou- section (c)(1) to the sum of the total ‘‘(a) ESTABLISHMENT AND PURPOSE.—The isiana Housing Finance Agency shall be 75 amounts allocated by the enterprises to the Director, in consultation with the Secretary percent. affordable housing fund for such year, less

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any amounts used pursuant to subsection ‘‘(2) ESTABLISHMENT.—In establishing an el time or distance involved in providing (i)(1); and allocation plan, a grantee shall notify the counseling with respect to such area or ‘‘(B) for any other year referred to in sub- public of the establishment of the plan, pro- areas, as otherwise required under this subsection (b)(1) (other than 2007), by applying vide an opportunity for public comments re- paragraph, on an in-person basis is excessive the formula established pursuant to para- garding the plan, consider any public com- or the cost of such travel is prohibitive; and graph (2) of subsection (c) to the sum of the ments received, and make the completed (II) the State provides alternative forms of total amounts allocated by the enterprises plan available to the public. counseling for such area or areas, which may to the affordable housing fund for such year ‘‘(3) CONTENTS.—An allocation plan of a include interactive telephone counseling, on- and any recaptured amounts available pursu- grantee shall set forth the requirements for line counseling, interactive video counseling, ant to subsection (i)(4), less any amounts eligible recipients under subsection (h) to and interactive home study counseling and a used pursuant to subsection (i)(1). apply to the grantee to receive assistance program of financial literacy and education ‘‘(2) NOTICE.—In each year referred to in from affordable housing fund grant amounts, to promote an understanding of consumer, subsection (b)(1), not later than 60 days after including a requirement that each such ap- economic, and personal finance issues and the date that the Director determines the plication include— concepts, including saving for retirement, amounts described in paragraph (1) to be ‘‘(A) a description of the eligible activities managing credit, long-term care, and estate available for affordable housing fund grants to be conducted using such assistance; and planning and education on predatory lend- to grantees in such year, the Director shall ‘‘(B) a certification by the eligible recipi- ing, identity theft, and financial abuse cause to be published in the Federal Register ent applying for such assistance that any schemes relating to homeownership that is a notice that such amounts shall be so avail- housing units assisted with such assistance approved by the Director, except that enti- able. will comply with the requirements under ties providing such counseling shall not dis- ‘‘(3) GRANT AMOUNT.— this section. criminate against any particular form of ‘‘(A) IN GENERAL.—For each year referred ‘‘(f) SELECTION OF ACTIVITIES FUNDED USING housing; and to in subsection (b)(1), the Director shall AFFORDABLE HOUSING FUND GRANT ‘‘(ii) demonstrated, in accordance with reg- make a grant from amounts in the affordable AMOUNTS.—Affordable housing fund grant ulations as the Director shall issue setting housing fund to each grantee in an amount amounts of a grantee may be used, or com- forth requirements for sufficient evidence, mitted for use, only for activities that— that is, except as provided in subparagraph that they are lawfully present in the United ‘‘(1) are eligible under subsection (g) for (B), equal to the formula amount under this States; and such use; section for the grantee. A grantee may des- ‘‘(3) public infrastructure development ac- ‘‘(2) comply with the applicable allocation ignate a State housing finance agency, hous- tivities in connection with housing activities plan under subsection (e) of the grantee; and ing and community development entity, funded under paragraph (1) or (2). ‘‘(3) are selected for funding by the grantee ‘‘(h) ELIGIBLE RECIPIENTS.—Affordable tribally designated housing entity (as such in accordance with the process and criteria housing fund grant amounts of a grantee term is defined in section 4 of the Native for such selection established pursuant to may be provided only to a recipient that is American Housing Assistance and Self-De- subsection (m)(2)(C). an organization, agency, or other entity (in- termination Act of 1997 (25 U.S.C. 4103)) or ‘‘(g) ELIGIBLE ACTIVITIES.—Affordable cluding a for-profit entity, a nonprofit enti- other qualified instrumentality of the grant- housing fund grant amounts of a grantee ty, and a faith-based organization) that— ee to receive such grant amounts. shall be eligible for use, or for commitment ‘‘(1) has demonstrated experience and ca- ‘‘(B) REDUCTION FOR FAILURE TO OBTAIN RE- for use, only for assistance for— pacity to conduct an eligible activity under TURN OF MISUSED FUNDS.—If in any year a ‘‘(1) the production, preservation, and re- (g), as evidenced by its ability to— grantee fails to obtain reimbursement or rehabilitation of rental housing, including ‘‘(A) own, construct or rehabilitate, man- turn of the full amount required under sub- housing under the programs identified in sec- age, and operate an affordable multifamily section (j)(1)(B) to be reimbursed or returned tion 1335(a)(2)(B), except that such grant rental housing development; to the grantee during such year— amounts may be used for the benefit only of ‘‘(B) design, construct or rehabilitate, and ‘‘(i) except as provided in clause (ii)— extremely low- and very low-income fami- market affordable housing for homeowner- ‘‘(I) the amount of the grant for the grant- lies; ship; ee for the succeeding year, as determined ‘‘(2) the production, preservation, and re- ‘‘(C) provide forms of assistance, such as pursuant to subparagraph (A), shall be rehabilitation of housing for homeownership, downpayments, closing costs, or interest- duced by the amount by which such amounts including such forms as downpayment assist- rate buy-downs, for purchasers; or required to be reimbursed or returned exceed ance, closing cost assistance, and assistance ‘‘(D) construct related public infrastruc- the amount actually reimbursed or returned; for interest-rate buy-downs, that— ture development activities in connection and ‘‘(A) is available for purchase only for use with such housing activities; ‘‘(II) the amount of the grant for the suc- as a principal residence by families that ‘‘(2) demonstrates the ability and financial ceeding year for each other grantee whose qualify both as— capacity to undertake, comply, and manage grant is not reduced pursuant to subclause ‘‘(i) extremely low- and very-low income the eligible activity; (I) shall be increased by the amount deter- families at the times described in subpara- ‘‘(3) demonstrates its familiarly with the mined by applying the formula established graphs (A) through (C) of section 215(b)(2) of requirements of any other Federal, State or pursuant to subsection (c)(2) to the total the Cranston-Gonzalez National Affordable local housing program that will be used in amount of all reductions for all grantees for Housing Act (42 U.S.C. 12745(b)(2)); and conjunction with such grant amounts to en- such year pursuant to subclause (I); or ‘‘(ii) first-time homebuyers, as such term sure compliance with all applicable require- ‘‘(ii) in any case in which such failure to is defined in section 104 of the Cranston-Gon- ments and regulations of such programs; and obtain reimbursement or return occurs dur- zalez National Affordable Housing Act (42 ‘‘(4) makes such assurances to the grantee ing a year immediately preceding a year in U.S.C. 12704), except that any reference in as the Director shall, by regulation, require which grants under this subsection will not such section to assistance under title II of to ensure that the recipient will comply with be made, the grantee shall pay to the Direc- such Act shall for purposes of this section be the requirements of this section during the tor for reallocation among the other grant- considered to refer to assistance from afford- entire period that begins upon selection of ees an amount equal to the amount of the re- able housing fund grant amounts; the recipient to receive such grant amounts duction for the grantee that would otherwise ‘‘(B) has an initial purchase price that and ending upon the conclusion of all activi- apply under clause (i)(I). meets the requirements of section 215(b)(1) of ties under subsection (g) that are engaged in ‘‘(e) GRANTEE ALLOCATION PLANS.— the Cranston-Gonzalez National Affordable by the recipient and funded with such grant ‘‘(1) IN GENERAL.—For each year that a Housing Act; amounts. grantee receives affordable housing fund ‘‘(C) is subject to the same resale restric- ‘‘(i) LIMITATIONS ON USE.— grant amounts, the grantee shall establish tions established under section 215(b)(3) of ‘‘(1) REQUIRED AMOUNT FOR REFCORP.—Of an allocation plan in accordance with this the Cranston-Gonzalez National Affordable the aggregate amount allocated pursuant to subsection, which shall be a plan for the dis- Housing Act and applicable to the partici- subsection (b) in each year to the affordable tribution of such grant amounts of the pating jurisdiction that is the State in which housing fund, 25 percent shall be used as pro- grantee for such year that— such housing is located; and vided in section 21B(f)(2)(E) of the Federal ‘‘(A) is based on priority housing needs, as ‘‘(D) is made available for purchase only Home Loan Bank Act (12 U.S.C. determined by the grantee in accordance by, or in the case of assistance under this 1441b(f)(2)(E)). with the regulations established under subparagraph, is made available only to, home- ‘‘(2) REQUIRED AMOUNT FOR HOMEOWNERSHIP section (m)(2)(C); buyers who have, before purchase— ACTIVITIES.—Of the aggregate amount of af- ‘‘(B) complies with subsection (f); and ‘‘(i) completed a program of counseling fordable housing fund grant amounts pro- ‘‘(C) includes performance goals, bench- with respect to the responsibilities and fi- vided in each year to a grantee, not less than marks, and timetables for the grantee for nancial management involved in home- 10 percent shall be used for activities under the production, preservation, and rehabilita- ownership that is approved by the Director; paragraph (2) of subsection (g). tion of affordable rental and homeownership except that the Director may, at the request ‘‘(3) MAXIMUM AMOUNT FOR PUBLIC INFRA- housing with such grant amounts that com- of a State, waive the requirements of this STRUCTURE DEVELOPMENT ACTIVITIES IN CON- ply with the requirements established by the subparagraph with respect to a geographic NECTION WITH AFFORDABLE HOUSING ACTIVI- Director pursuant to subsection (m)(2)(F). area or areas within the State if: (I) the trav- TIES.—Of the aggregate amount of affordable

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00200 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.131 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2567 housing fund grant amounts provided in each REAL ID Act of 2005 (title II of division B of plan established pursuant to subsection (e) year to a grantee, not more than 12.5 percent Public Law 109-13; 49 U.S.C. 30301 note). for the grantee. may be used for activities under paragraph ‘‘(ii) PASSPORT.—A passport issued by the ‘‘(ii) PUBLIC AVAILABILITY.—The Director (3) of subsection (g). United States or a foreign government. shall make such reports pursuant to this ‘‘(4) DEADLINE FOR COMMITMENT OR USE.— ‘‘(iii) USCIS PHOTO IDENTIFICATION CARD.— subparagraph publicly available. Any affordable housing fund grant amounts A photo identification card issued by the ‘‘(B) MISUSE OF FUNDS.—If the Director de- of a grantee shall be used or committed for Secretary of Homeland Security (acting termines, after reasonable notice and oppor- use within two years of the date of that such through the Director of the United States tunity for hearing, that a grantee has failed grant amounts are made available to the Citizenship and Immigration Services). to comply substantially with any provision grantee. The Director shall recapture into ‘‘(B) REGULATIONS.—The Director shall, by of this section and until the Director is sat- the affordable housing fund any such regulation, require that each grantee and re- isfied that there is no longer any such failure amounts not so used or committed for use cipient take such actions as the Director to comply, the Director shall— and allocate such amounts under subsection considers necessary to ensure compliance ‘‘(i) reduce the amount of assistance under (d)(1) in the first year after such recapture. with the requirements of subparagraph (A). this section to the grantee by an amount equal to the amount affordable housing fund ‘‘(5) USE OF RETURNS.—The Director shall, ‘‘(j) ACCOUNTABILITY OF RECIPIENTS AND grant amounts which were not used in ac- by regulation provide that any return on a GRANTEES.— cordance with this section; loan or other investment of any affordable ‘‘(1) RECIPIENTS.— ‘‘(ii) require the grantee to repay the Di- housing fund grant amounts of a grantee ‘‘(A) TRACKING OF FUNDS.—The Director rector an amount equal to the amount of the shall be treated, for purposes of availability shall— amount affordable housing fund grant to and use by the grantee, as affordable ‘‘(i) require each grantee to develop and amounts which were not used in accordance housing fund grant amounts. maintain a system to ensure that each re- with this section; ‘‘(6) PROHIBITED USES.—The Director cipient of assistance from affordable housing ‘‘(iii) limit the availability of assistance shall— fund grant amounts of the grantee uses such under this section to the grantee to activi- ‘‘(A) by regulation, set forth prohibited amounts in accordance with this section, the ties or recipients not affected by such failure uses of affordable housing fund grant regulations issued under this section, and to comply; or amounts, which shall include use for— any requirements or conditions under which ‘‘(iv) terminate any assistance under this ‘‘(i) political activities; such amounts were provided; and section to the grantee. ‘‘(ii) advocacy; ‘‘(ii) establish minimum requirements for ‘‘(k) CAPITAL REQUIREMENTS.—The utiliza- ‘‘(iii) lobbying, whether directly or agreements, between the grantee and recipi- tion or commitment of amounts from the af- through other parties; ents, regarding assistance from the afford- fordable housing fund shall not be subject to ‘‘(iv) counseling services; able housing fund grant amounts of the the risk-based capital requirements estab- ‘‘(v) travel expenses; and grantee, which shall include— lished pursuant to section 1361(a). ‘‘(vi) preparing or providing advice on tax ‘‘(I) appropriate continuing financial and ‘‘(l) DEFINITIONS.—For purposes of this sec- returns; project reporting, record retention, and tion, the following definitions shall apply: ‘‘(B) by regulation, provide that, except as audit requirements for the duration of the ‘‘(1) AFFORDABLE HOUSING FUND GRANT provided in subparagraph (C), affordable grant to the recipient to ensure compliance AMOUNTS.—The term ‘affordable housing fund housing fund grant amounts of a grantee with the limitations and requirements of grant amounts’ means amounts from the af- may not be used for administrative, out- this section and the regulations under this fordable housing fund established under sub- reach, or other costs of— section; and section (a) that are provided to a grantee ‘‘(i) the grantee; or ‘‘(II) any other requirements that the Di- pursuant to subsection (d)(3). ‘‘(ii) any recipient of such grant amounts; rector determines are necessary to ensure ‘‘(2) GRANTEE.—The term ‘grantee’ means— and appropriate grant administration and com- ‘‘(A) with respect to 2007, the Louisiana ‘‘(C) by regulation, limit the amount of pliance. Housing Finance Agency and the Mississippi any affordable housing fund grant amounts ‘‘(B) MISUSE OF FUNDS.— Development Authority; and of the grantee for a year that may be used ‘‘(i) REIMBURSEMENT REQUIREMENT.—If any ‘‘(B) with respect to the years referred to for administrative costs of the grantee of recipient of assistance from affordable hous- in subsection (b)(1), other than 2007, each carrying out the program required under this ing fund grant amounts of a grantee is deter- State (as such term is defined in section 1303) section to a percentage of such grant mined, in accordance with clause (ii), to and each federally recognized Indian tribe. amounts of the grantee for such year, which have used any such amounts in a manner ‘‘(3) RECIPIENT.—The term ‘recipient’ may not exceed 10 percent. that is materially in violation of this sec- means an entity meeting the requirements ‘‘(7) PROHIBITION OF CONSIDERATION OF USE tion, the regulations issued under this sec- under subsection (h) that receives assistance FOR MEETING HOUSING GOALS OR DUTY TO tion, or any requirements or conditions from a grantee from affordable housing fund SERVE.—In determining compliance with the under which such amounts were provided, grant amounts of the grantee. housing goals under this subpart and the the grantee shall require that, within 12 ‘‘(4) TOTAL MORTGAGE PORTFOLIO.—The duty to serve underserved markets under months after the determination of such mis- term ‘total mortgage portfolio’ means, with section 1335, the Director may not consider use, the recipient shall reimburse the grant- respect to a year, the sum, for all mortgages any affordable housing fund grant amounts ee for such misused amounts and return to outstanding during that year in any form, used under this section for eligible activities the grantee any amounts from the affordable including whole loans, mortgage-backed se- under subsection (g). The Director shall give housing fund grant amounts of the grantee curities, participation certificates, or other credit toward the achievement of such hous- that remain unused or uncommitted for use. structured securities backed by mortgages, ing goals and such duty to serve underserved The remedies under this clause are in addi- of the dollar amount of the unpaid out- markets to purchases by the enterprises of tion to any other remedies that may be standing principal balances under such mort- mortgages for housing that receives funding available under law. gages. Such term includes all such mort- from affordable housing fund grant amounts, ‘‘(ii) DETERMINATION.—A determination is gages or securitized obligations, whether re- but only to the extent that such purchases made in accordance with this clause if the tained in portfolio, or sold in any form. The by the enterprises are funded other than determination is— Director is authorized to promulgate rules with such grant amounts. ‘‘(I) made by the Director; or further defining such term as necessary to ‘‘(8) ACCEPTABLE IDENTIFICATION REQUIRE- ‘‘(II)(aa) made by the grantee; implement this section and to address mar- MENT FOR OCCUPANCY OR ASSISTANCE.— ‘‘(bb) the grantee provides notification of ket developments. ‘‘(A) IN GENERAL.—Any assistance provided the determination to the Director for review, ‘‘(5) VERY-LOW INCOME FAMILY.—The term with any affordable housing grant amounts in the discretion of the Director, of the de- ‘very low-income family’ has the meaning may not be made available to, or on behalf termination; and given such term in section 1303, except that of, any individual or household unless the in- ‘‘(cc) the Director does not subsequently such term includes any family that resides dividual provides, or, in the case of a house- reverse the determination. in a rural area that has an income that does hold, all adult members of the household ‘‘(2) GRANTEES.— not exceed the poverty line (as such term is provide, personal identification in one of the ‘‘(A) REPORT.— defined in section 673(2) of the Omnibus following forms: ‘‘(i) IN GENERAL.—The Director shall re- Budget Reconciliation Act of 1981 (42 U.S.C. ‘‘(i) SOCIAL SECURITY CARD WITH PHOTO quire each grantee receiving affordable hous- 9902(2)), including any revision required by IDENTIFICATION CARD OR REAL ID ACT IDENTI- ing fund grant amounts for a year to submit such section) applicable to a family of the FICATION.— a report, for such year, to the Director size involved. ‘‘(I) A social security card accompanied by that— ‘‘(m) REGULATIONS.— a photo identification card issued by the ‘‘(I) describes the activities funded under ‘‘(1) IN GENERAL.—The Director, in con- Federal Government or a State Government; this section during such year with the af- sultation with the Secretary of Housing and or fordable housing fund grant amounts of the Urban Development, shall issue regulations ‘‘(II) A driver’s license or identification grantee; and to carry out this section. card issued by a State in the case of a State ‘‘(II) the manner in which the grantee com- ‘‘(2) REQUIRED CONTENTS.—The regulations that is in compliance with title II of the plied during such year with the allocation issued under this subsection shall include—

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00201 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.131 S03APPT1 ccoleman on PRODPC75 with SENATE S2568 CONGRESSIONAL RECORD — SENATE April 3, 2008 ‘‘(A) a requirement that the Director en- section (i)(6). Nothing in this subsection ment Act of 1992 (12 U.S.C. 4561 et seq.) is sure that the program of each grantee for shall be construed to alter the terms and amended by adding after section 1337, as use of affordable housing fund grant amounts conditions of the affordable housing fund added by section 139 of this Division, the fol- of the grantee is audited not less than annu- under this section or to extend the life of lowing new section: ally to ensure compliance with this section; such fund. ‘‘SEC. 1338. CONSISTENCY WITH MISSION. ‘‘(B) authority for the Director to audit, ‘‘(p) FUNDING ACCOUNTABILITY AND TRANS- ‘‘This subpart may not be construed to au- provide for an audit, or otherwise verify a PARENCY.—Any grant under this section to a thorize an enterprise to engage in any pro- grantee’s activities, to ensure compliance grantee from the affordable housing fund es- gram or activity that contravenes or is in- with this section; tablished under subsection (a), any assist- consistent with the Federal National Mort- ‘‘(C) requirements for a process for applica- ance provided to a recipient by a grantee gage Association Charter Act or the Federal tion to, and selection by, each grantee for from affordable housing fund grant amounts, Home Loan Mortgage Corporation Act.’’. activities meeting the grantee’s priority and any grant, award, or other assistance SEC. 142. ENFORCEMENT. housing needs to be funded with affordable from an affordable housing trust fund re- (a) CEASE-AND-DESIST PROCEEDINGS.—Sec- housing fund grant amounts of the grantee, ferred to in subsection (o) shall be considered tion 1341 of the Housing and Community De- which shall provide for priority in funding to a Federal award for purposes of the Federal velopment Act of 1992 (12 U.S.C. 4581) is Funding Accountability and Transparency be based upon— amended— Act of 2006 (31 U.S.C. 6101 note). Upon the re- ‘‘(i) greatest impact; (1) by striking subsection (a) and inserting quest of the Director of the Office of Manage- ‘‘(ii) geographic diversity; the following new subsection: ment and Budget, the Director of the Federal ‘‘(iii) ability to obligate amounts and un- ‘‘(a) GROUNDS FOR ISSUANCE.—The Director Housing Finance Agency shall obtain and may issue and serve a notice of charges dertake activities so funded in a timely man- provide such information regarding any such ner; under this section upon an enterprise if the grants, assistance, and awards as the Direc- Director determines— ‘‘(iv) in the case of rental housing projects tor of the Office of Management and Budget under subsection (g)(1), the extent to which ‘‘(1) the enterprise has failed to meet any considers necessary to comply with the re- housing goal established under subpart B, rents for units in the project funded are af- quirements of such Act, as applicable pursu- fordable, especially for extremely low-in- following a written notice and determination ant to the preceding sentence.’’. of such failure in accordance with section come families; (b) TIMELY ESTABLISHMENT OF AFFORDABLE 1336; ‘‘(v) in the case of rental housing projects HOUSING NEEDS FORMULA.— ‘‘(2) the enterprise has failed to submit a under subsection (g)(1), the extent of the du- (1) IN GENERAL.—The Secretary of Housing report under section 1314, following a notice ration for which such rents will remain af- and Urban Development shall, not later than of such failure, an opportunity for comment fordable; the effective date under section 185 of this by the enterprise, and a final determination ‘‘(vi) the extent to which the application Division, issue the regulations establishing by the Director; makes use of other funding sources; and the affordable housing needs formulas in ac- ‘‘(3) the enterprise has failed to submit the ‘‘(vii) the merits of an applicant’s proposed cordance with the provisions of section eligible activity; 1337(c)(2) of the Housing and Community De- information required under subsection (m) or ‘‘(D) requirements to ensure that amounts velopment Act of 1992, as such section is (n) of section 309 of the Federal National provided to a grantee from the affordable amended by subsection (a) of this section. Mortgage Association Charter Act, or subsection (e) or (f) of section 307 of the Federal housing fund that are used for rental housing (2) EFFECTIVE DATE.—This subsection shall under subsection (g)(1) are used only for the take effect on the date of the enactment of Home Loan Mortgage Corporation Act; benefit of extremely low- and very-low in- this Act. ‘‘(4) the enterprise has violated any provi- come families; (c) REFCORP PAYMENTS.—Section 21B(f)(2) sion of this part or any order, rule or regula- ‘‘(E) limitations on public infrastructure of the Federal Home Loan Bank Act (12 tion under this part; development activities that are eligible pur- U.S.C. 1441b(f)(2)) is amended— ‘‘(5) the enterprise has failed to submit a suant to subsection (g)(3) for funding with af- (1) in subparagraph (E), by striking ‘‘and housing plan that complies with section fordable housing fund grant amounts and re- (D)’’ and inserting ‘‘(D), and (E)’’; 1336(c) within the applicable period; or quirements for the connection between such (2) by redesignating subparagraph (E) as ‘‘(6) the enterprise has failed to comply activities and housing activities funded subparagraph (F); and with a housing plan under section 1336(c).’’; under paragraph (1) or (2) of subsection (g); (3) by inserting after subparagraph (D) the (2) in subsection (b)(2), by striking ‘‘requir- and following new subparagraph: ing the enterprise to’’ and all that follows ‘‘(F) requirements and standards for estab- ‘‘(E) PAYMENTS BY FANNIE MAE AND FREDDIE through the end of the paragraph and insert- lishment, by grantees (including the grant- MAC.—To the extent that the amounts avail- ing the following: ‘‘requiring the enterprise ees for 2007 pursuant to subsection (l)(2)(A)), able pursuant to subparagraphs (A), (B), (C), to— of performance goals, benchmarks, and time- and (D) are insufficient to cover the amount ‘‘(A) comply with the goal or goals; tables for the production, preservation, and of interest payments, each enterprise (as ‘‘(B) submit a report under section 1314; rehabilitation of affordable rental and home- such term is defined in section 1303 of the ‘‘(C) comply with any provision this part ownership housing with affordable housing Housing and Community Development Act of or any order, rule or regulation under such fund grant amounts. 1992 (42 U.S.C. 4502)) shall transfer to the part; ‘‘(n) ENFORCEMENT OF REQUIREMENTS ON Funding Corporation in each calendar year ‘‘(D) submit a housing plan in compliance ENTERPRISE.—Compliance by the enterprises the amounts allocated for use under this sub- with section 1336(c); with the requirements under this section paragraph pursuant to section 1337(i)(1) of ‘‘(E) comply with a housing plan submitted shall be enforceable under subpart C. Any such Act.’’. under section 1336(c); or reference in such subpart to this part or to (d) GAO REPORT.—The Comptroller Gen- ‘‘(F) provide the information required an order, rule, or regulation under this part eral shall conduct a study to determine the under subsection (m) or (n) of section 309 of specifically includes this section and any effects that the affordable housing fund es- the Federal National Mortgage Association order, rule, or regulation under this section. tablished under section 1337 of the Housing Charter Act or subsection (e) or (f) of section ‘‘(o) AFFORDABLE HOUSING TRUST FUND.—If, and Community Development Act of 1992, as 307 of the Federal Home Loan Mortgage Cor- after the enactment of this Act, in any year, added by the amendment made by subsection poration Act, as applicable.’’; there is enacted any provision of Federal law (a) of this section, will have on the avail- (3) in subsection (c), by inserting ‘‘date of establishing an affordable housing trust fund ability and affordability of credit for home- the’’ before ‘‘service of the order’’; and other than under this title for use only for buyers, including the effects on such credit (4) by striking subsection (d). grants to provide affordable rental housing of the requirement under such section 1337(b) (b) AUTHORITY OF DIRECTOR TO ENFORCE and affordable homeownership opportunities, that the Federal National Mortgage Associa- NOTICES AND ORDERS.—Section 1344 of the and the subsequent year is a year referred to tion and Federal Home Loan Mortgage Cor- Housing and Community Development Act of in subsection (b)(1), the Director shall in poration make allocations of amounts to 1992 (12 U.S.C. 4584) is amended by striking such subsequent year and any remaining such fund based on the average total mort- subsection (a) and inserting the following years referred to in subsection (b)(1) transfer gage portfolios, and the extent to which the new subsection: to such affordable housing trust fund the ag- costs of such allocation requirement will be ‘‘(a) ENFORCEMENT.—The Director may, in gregate amount allocated pursuant to sub- borne by such entities or will be passed on to the discretion of the Director, apply to the section (b) in such year to the affordable homebuyers. Not later than the expiration of United States District Court for the District housing fund under this section, less any the 12-month period beginning on the date of of Columbia, or the United States district amounts used pursuant to subsection (i)(1). the enactment of this Act, the Comptroller court within the jurisdiction of which the For such subsequent and remaining years, General shall submit a report to the Con- headquarters of the enterprise is located, for the provisions of subsections (c) and (d) shall gress setting forth the results and conclu- the enforcement of any effective and out- not apply. Notwithstanding any other provisions of such study. This subsection shall standing notice or order issued under section sion of law, assistance provided using take effect on the date of the enactment of 1341 or 1345, or request that the Attorney amounts transferred to such affordable hous- this Act. General of the United States bring such an ing trust fund pursuant to this subsection SEC. 141. CONSISTENCY WITH MISSION. action. Such court shall have jurisdiction may not be used for any of the activities Subpart B of part 2 of subtitle A of title and power to order and require compliance specified in clauses (i) through (vi) of sub- XIII of the Housing and Community Develop- with such notice or order.’’.

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(c) CIVIL MONEY PENALTIES.—Section 1345 (3) by striking section 1327 (12 U.S.C. 4547); ‘‘(B) as significantly undercapitalized, if of the Housing and Community Development (4) by striking section 1328 (12 U.S.C. 4548); the regulated entity is otherwise classified Act of 1992 (12 U.S.C. 4585) is amended— (5) by redesignating section 1329 (as amend- as undercapitalized; and (1) by striking subsections (a) and (b) and ed by section 135) as section 1327; ‘‘(C) as critically undercapitalized, if the inserting the following new subsections: (6) in sections 1345(c)(1)(A), 1346(a), and regulated entity is otherwise classified as ‘‘(a) AUTHORITY.—The Director may impose 1346(b) (12 U.S.C. 4585(c)(1)(A), 4586(a), and significantly undercapitalized.’’; and a civil money penalty, in accordance with 4586(b)), by striking ‘‘Secretary’s’’ each place (5) by inserting after subsection (d) (as so the provisions of this section, on any enter- such term appears and inserting ‘‘Direc- redesignated by paragraph (3) of this sub- prise that has failed to— tor’s’’; and section), the following new subsection: ‘‘(1) meet any housing goal established (7) by striking section 1349 (12 U.S.C. 4589). ‘‘(e) RESTRICTION ON CAPITAL DISTRIBU- under subpart B, following a written notice TIONS.— Subtitle C—Prompt Corrective Action and determination of such failure in accord- ‘‘(1) IN GENERAL.—A regulated entity shall ance with section 1336(b); SEC. 151. CAPITAL CLASSIFICATIONS. make no capital distribution if, after making ‘‘(2) submit a report under section 1314, fol- (a) IN GENERAL.—Section 1364 of the Hous- the distribution, the regulated entity would lowing a notice of such failure, an oppor- ing and Community Development Act of 1992 be undercapitalized. tunity for comment by the enterprise, and a (12 U.S.C. 4614) is amended— ‘‘(2) EXCEPTION.—Notwithstanding para- final determination by the Director; (1) in the heading for subsection (a), by graph (1), the Director may permit a regu- ‘‘(3) submit the information required under striking ‘‘IN GENERAL’’ and inserting ‘‘EN- lated entity, to the extent appropriate or ap- subsection (m) or (n) of section 309 of the TERPRISES’’. plicable, to repurchase, redeem, retire, or Federal National Mortgage Association (2) in subsection (c)— otherwise acquire shares or ownership inter- Charter Act, or subsection (e) or (f) of sec- (A) by striking ‘‘subsection (b)’’ and insert- ests if the repurchase, redemption, retire- tion 307 of the Federal Home Loan Mortgage ing ‘‘subsection (c)’’; ment, or other acquisition— Corporation Act; (B) by striking ‘‘enterprises’’ and inserting ‘‘(A) is made in connection with the ‘‘(4) comply with any provision of this part ‘‘regulated entities’’; and issuance of additional shares or obligations or any order, rule or regulation under this (C) by striking the last sentence; of the regulated entity in at least an equiva- part; (3) by redesignating subsections (c) (as so lent amount; and ‘‘(5) submit a housing plan pursuant to sec- amended by paragraph (2) of this subsection) ‘‘(B) will reduce the financial obligations tion 1336(c) within the required period; or and (d) as subsections (d) and (f), respec- of the regulated entity or otherwise improve ‘‘(6) comply with a housing plan for the en- tively; the financial condition of the entity.’’. terprise under section 1336(c). (4) by striking subsection (b) and inserting (b) REGULATIONS.—Not later than the expi- ‘‘(b) AMOUNT OF PENALTY.—The amount of the following new subsections: ration of the 180-day period beginning on the the penalty, as determined by the Director, effective date under section 185, the Director ‘‘(b) FEDERAL HOME LOAN BANKS.— may not exceed— of the Federal Housing Finance Agency shall ‘‘(1) ESTABLISHMENT AND CRITERIA.—For ‘‘(1) for any failure described in paragraph issue regulations to carry out section 1364(b) purposes of this subtitle, the Director shall, (1), (5), or (6) of subsection (a), $50,000 for of the Housing and Community Development each day that the failure occurs; and by regulation— Act of 1992 (as added by paragraph (4) of this ‘‘(2) for any failure described in paragraph ‘‘(A) establish the capital classifications subsection), relating to capital classifica- (2), (3), or (4) of subsection (a), $20,000 for specified under paragraph (2) for the Federal tions for the Federal home loan banks. home loan banks; each day that the failure occurs.’’; SEC. 152. SUPERVISORY ACTIONS APPLICABLE (2) in subsection (c)— ‘‘(B) establish criteria for each such capital TO UNDERCAPITALIZED REGULATED (A) in paragraph (1)— classification based on the amount and types ENTITIES. (i) in subparagraph (A), by inserting ‘‘and’’ of capital held by a bank and the risk-based, Section 1365 of the Housing and Commu- after the semicolon at the end; minimum, and critical capital levels for the nity Development Act of 1992 (12 U.S.C. 4615) (ii) in subparagraph (B), by striking ‘‘; banks and taking due consideration of the is amended— and’’ and inserting a period; and capital classifications established under sub- (1) in the section heading, by striking ‘‘EN- (iii) by striking subparagraph (C); and section (a) for the enterprises, with such TERPRISES’’ and inserting ‘‘REGULATED ENTI- (B) in paragraph (2), by inserting after the modifications as the Director determines to TIES’’; period at the end the following: ‘‘In deter- be appropriate to reflect the difference in op- (2) in subsection (a)— mining the penalty under subsection (a)(1), erations between the banks and the enter- (A) by redesignating paragraphs (1) and (2) the Director shall give consideration to the prises; and as paragraphs (2) and (3), respectively; length of time the enterprise should reason- ‘‘(C) shall classify the Federal home loan (B) by inserting before paragraph (2), as so ably take to achieve the goal.’’; banks according to such capital classifica- redesignated by subparagraph (A) of this (3) in the first sentence of subsection (d)— tions. paragraph, the following paragraph: (A) by striking ‘‘request the Attorney Gen- ‘‘(2) CLASSIFICATIONS.—The capital classi- ‘‘(1) REQUIRED MONITORING.—The Director eral of the United States to’’ and inserting ‘‘, fications specified under this paragraph are— shall— in the discretion of the Director,’’; and ‘‘(A) adequately capitalized; ‘‘(A) closely monitor the condition of any (B) by inserting ‘‘, or request that the At- ‘‘(B) undercapitalized; regulated entity that is classified as under- torney General of the United States bring ‘‘(C) significantly undercapitalized; and capitalized; such an action’’ before the period at the end; ‘‘(D) critically undercapitalized. ‘‘(B) closely monitor compliance with the (4) by striking subsection (f); and ‘‘(c) DISCRETIONARY CLASSIFICATION.— capital restoration plan, restrictions, and re- (5) by redesignating subsection (g) as sub- ‘‘(1) GROUNDS FOR RECLASSIFICATION.—The quirements imposed under this section; and section (f). Director may reclassify a regulated entity ‘‘(C) periodically review the plan, restric- (d) ENFORCEMENT OF SUBPOENAS.—Section under paragraph (2) if— tions, and requirements applicable to the 1348(c) of the Housing and Community Devel- ‘‘(A) at any time, the Director determines undercapitalized regulated entity to deter- opment Act of 1992 (12 U.S.C. 4588(c)) is in writing that the regulated entity is engag- mine whether the plan, restrictions, and re- amended— ing in conduct that could result in a rapid quirements are achieving the purpose of this (1) by striking ‘‘request the Attorney Gen- depletion of core or total capital or, in the section.’’; and eral of the United States to’’ and inserting ‘‘, case of an enterprise, that the value of the (C) by inserting at the end the following in the discretion of the Director,’’; and property subject to mortgages held or new paragraphs: (2) by inserting ‘‘or request that the Attor- securitized by the enterprise has decreased ‘‘(4) RESTRICTION OF ASSET GROWTH.—A reg- ney General of the United States bring such significantly; ulated entity that is classified as under- an action,’’ after ‘‘District of Columbia,’’. ‘‘(B) after notice and an opportunity for capitalized shall not permit its average total (e) CONFORMING AMENDMENT.—The heading hearing, the Director determines that the assets (as such term is defined in section for subpart C of part 2 of subtitle A of title regulated entity is in an unsafe or unsound 1316(b) during any calendar quarter to exceed XIII of the Housing and Community Develop- condition; or its average total assets during the preceding ment Act of 1992 is amended to read as fol- ‘‘(C) pursuant to section 1371(b), the Direc- calendar quarter unless— lows: tor deems the regulated entity to be engag- ‘‘(A) the Director has accepted the capital ‘‘Subpart C—Enforcement’’. ing in an unsafe or unsound practice. restoration plan of the regulated entity; SEC. 143. CONFORMING AMENDMENTS. ‘‘(2) RECLASSIFICATION.—In addition to any ‘‘(B) any increase in total assets is con- Part 2 of subtitle A of title XIII of the other action authorized under this title, in- sistent with the plan; and Housing and Community Development Act of cluding the reclassification of a regulated ‘‘(C) the ratio of total capital to assets for 1992 (12 U.S.C. 4541 et seq.) is amended— entity for any reason not specified in this the regulated entity increases during the (1) by striking ‘‘Secretary’’ each place such subsection, if the Director takes any action calendar quarter at a rate sufficient to en- term appears in such part and inserting ‘‘Di- described in paragraph (1) the Director may able the entity to become adequately cap- rector’’; classify a regulated entity— italized within a reasonable time. (2) in the section heading for section 1323 ‘‘(A) as undercapitalized, if the regulated ‘‘(5) PRIOR APPROVAL OF ACQUISITIONS, NEW (12 U.S.C. 4543), by inserting ‘‘OF ENTER- entity is otherwise classified as adequately PRODUCTS, AND NEW ACTIVITIES.—A regulated PRISES’’ before the period at the end; capitalized; entity that is classified as undercapitalized

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00203 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.132 S03APPT1 ccoleman on PRODPC75 with SENATE S2570 CONGRESSIONAL RECORD — SENATE April 3, 2008 shall not, directly or indirectly, acquire any ‘‘(2) provide compensation to any executive ‘‘(iii) fails to submit a capital restoration interest in any entity or initially offer any officer at a rate exceeding that officer’s av- plan acceptable to the Agency within the new product (as such term is defined in sec- erage rate of compensation (excluding bo- time prescribed under section 1369C; or tion 1321(f)) or engage in any new activity, nuses, stock options, and profit sharing) dur- ‘‘(iv) materially fails to implement a cap- service, undertaking, or offering unless— ing the 12 calendar months preceding the cal- ital restoration plan submitted and accepted ‘‘(A) the Director has accepted the capital endar month in which the regulated entity under section 1369C. restoration plan of the regulated entity, the became undercapitalized.’’. ‘‘(K) CRITICAL UNDERCAPITALIZATION.—The entity is implementing the plan, and the Di- SEC. 154. AUTHORITY OVER CRITICALLY UNDER- regulated entity is critically undercapital- rector determines that the proposed action is CAPITALIZED REGULATED ENTITIES. ized, as defined in section 1364(a)(4) or in reg- consistent with and will further the achieve- (a) IN GENERAL.—Section 1367 of the Hous- ulations issued pursuant to section 1364(b), ment of the plan; or ing and Community Development Act of 1992 as applicable. ‘‘(B) the Director determines that the pro- (12 U.S.C. 4617) is amended to read as follows: ‘‘(L) MONEY LAUNDERING.—The Attorney posed action will further the purpose of this ‘‘SEC. 1367. AUTHORITY OVER CRITICALLY General notifies the Director in writing that section.’’; UNDERCAPITALIZED REGULATED the regulated entity has been found guilty of (3) in the subsection heading for subsection ENTITIES. a criminal offense under section 1956 or 1957 ‘‘(a) APPOINTMENT OF AGENCY AS CONSER- (b), by striking ‘‘FROM UNDERCAPITALIZED TO of title 18, United States Code, or section VATOR OR RECEIVER.— SIGNIFICANTLY UNDERCAPITALIZED’’; and 5322 or 5324 of title 31, United States Code. ‘‘(1) IN GENERAL.—Notwithstanding any (4) by striking subsection (c) and inserting ‘‘(4) MANDATORY RECEIVERSHIP.— other provision of Federal or State law, if the following new subsection: ‘‘(A) IN GENERAL.—The Director shall ap- any of the grounds under paragraph (3) exist, ‘‘(c) OTHER DISCRETIONARY SAFEGUARDS.— point the Agency as receiver for a regulated The Director may take, with respect to a at the discretion of the Director, the Direc- entity if the Director determines, in writing, regulated entity that is classified as under- tor may establish a conservatorship or re- that— capitalized, any of the actions authorized to ceivership, as appropriate, for the purpose of ‘‘(i) the assets of the regulated entity are, be taken under section 1366 with respect to a reorganizing, rehabilitating, or winding up and during the preceding 30 calendar days regulated entity that is classified as signifi- the affairs of a regulated entity. have been, less than the obligations of the cantly undercapitalized, if the Director de- ‘‘(2) APPOINTMENT.—In any conservatorship regulated entity to its creditors and others; termines that such actions are necessary to or receivership established under this sec- or carry out the purpose of this subtitle.’’. tion, the Director shall appoint the Agency ‘‘(ii) the regulated entity is not, and during SEC. 153. SUPERVISORY ACTIONS APPLICABLE as conservator or receiver. the preceding 30 calendar days has not been, TO SIGNIFICANTLY UNDERCAPITAL- ‘‘(3) GROUNDS FOR APPOINTMENT.—The generally paying the debts of the regulated IZED REGULATED ENTITIES. grounds for appointing a conservator or re- entity (other than debts that are the subject Section 1366 of the Housing and Commu- ceiver for a regulated entity are as follows: of a bona fide dispute) as such debts become nity Development Act of 1992 (12 U.S.C. 4616) ‘‘(A) ASSETS INSUFFICIENT FOR OBLIGA- due. is amended— TIONS.—The assets of the regulated entity ‘‘(B) PERIODIC DETERMINATION REQUIRED FOR (1) in the section heading, by striking ‘‘EN- are less than the obligations of the regulated CRITICALLY UNDER CAPITALIZED REGULATED TERPRISES’’ and inserting ‘‘REGULATED ENTI- entity to its creditors and others. ENTITY.—If a regulated entity is critically TIES’’; ‘‘(B) SUBSTANTIAL DISSIPATION.—Substan- undercapitalized, the Director shall make a (2) in subsection (a)(2)(A), by striking ‘‘en- tial dissipation of assets or earnings due to— determination, in writing, as to whether the terprise’’ the last place such term appears; ‘‘(i) any violation of any provision of Fed- regulated entity meets the criteria specified (3) in subsection (b)— eral or State law; or in clause (i) or (ii) of subparagraph (A)— (A) in the subsection heading, by striking ‘‘(ii) any unsafe or unsound practice. ‘‘(i) not later than 30 calendar days after ‘‘DISCRETIONARY SUPERVISORY ACTIONS’’ and ‘‘(C) UNSAFE OR UNSOUND CONDITION.—An the regulated entity initially becomes criti- inserting ‘‘SPECIFIC ACTIONS’’. unsafe or unsound condition to transact cally undercapitalized; and (B) in the matter preceding paragraph (1), business. ‘‘(ii) at least once during each succeeding by striking ‘‘may, at any time, take any’’ ‘‘(D) CEASE-AND-DESIST ORDERS.—Any will- 30-calendar day period. and inserting ‘‘shall carry out this section ful violation of a cease-and-desist order that ‘‘(C) DETERMINATION NOT REQUIRED IF RE- by taking, at any time, one or more’’; has become final. CEIVERSHIP ALREADY IN PLACE.—Subpara- (C) by redesignating paragraphs (5) and (6) ‘‘(E) CONCEALMENT.—Any concealment of graph (B) shall not apply with respect to a as paragraphs (6) and (7), respectively; the books, papers, records, or assets of the regulated entity in any period during which (D) by inserting after paragraph (4) the fol- regulated entity, or any refusal to submit the Agency serves as receiver for the regu- lowing new paragraph: the books, papers, records, or affairs of the lated entity. ‘‘(5) IMPROVEMENT OF MANAGEMENT.—Take regulated entity, for inspection to any exam- ‘‘(D) RECEIVERSHIP TERMINATES CON- one or more of the following actions: iner or to any lawful agent of the Director. SERVATORSHIP.—The appointment under this ‘‘(A) NEW ELECTION OF BOARD.—Order a new ‘‘(F) INABILITY TO MEET OBLIGATIONS.—The section of the Agency as receiver of a regu- election for the board of directors of the reg- regulated entity is likely to be unable to pay lated entity shall immediately terminate ulated entity. its obligations or meet the demands of its any conservatorship established under this ‘‘(B) DISMISSAL OF DIRECTORS OR EXECUTIVE creditors in the normal course of business. title for the regulated entity. OFFICERS.—Require the regulated entity to ‘‘(G) LOSSES.—The regulated entity has in- ‘‘(5) JUDICIAL REVIEW.— dismiss from office any director or executive curred or is likely to incur losses that will ‘‘(A) IN GENERAL.—If the Agency is ap- officer who had held office for more than 180 deplete all or substantially all of its capital, pointed conservator or receiver under this days immediately before the entity became and there is no reasonable prospect for the section, the regulated entity may, within 30 undercapitalized. Dismissal under this sub- regulated entity to become adequately cap- days of such appointment, bring an action in paragraph shall not be construed to be a re- italized (as defined in section 1364(a)(1)). the United States District Court for the judi- moval pursuant to the Director’s enforce- ‘‘(H) VIOLATIONS OF LAW.—Any violation of cial district in which the principal place of ment powers provided in section 1377. any law or regulation, or any unsafe or un- business of such regulated entity is located, ‘‘(C) EMPLOY QUALIFIED EXECUTIVE OFFI- sound practice or condition that is likely or in the United States District Court for the CERS.—Require the regulated entity to em- to— District of Columbia, for an order requiring ploy qualified executive officers (who, if the ‘‘(i) cause insolvency or substantial dis- the Agency to remove itself as conservator Director so specifies, shall be subject to ap- sipation of assets or earnings; or or receiver. proval by the Director).’’; and ‘‘(ii) weaken the condition of the regulated ‘‘(B) REVIEW.—Upon the filing of an action (E) by inserting at the end the following entity. under subparagraph (A), the court shall, new paragraph: ‘‘(I) CONSENT.—The regulated entity, by upon the merits, dismiss such action or di- ‘‘(8) OTHER ACTION.—Require the regulated resolution of its board of directors or its rect the Agency to remove itself as such con- entity to take any other action that the Di- shareholders or members, consents to the ap- servator or receiver. rector determines will better carry out the pointment. ‘‘(6) DIRECTORS NOT LIABLE FOR ACQUIESCING purpose of this section than any of the ac- ‘‘(J) UNDERCAPITALIZATION.—The regulated IN APPOINTMENT OF CONSERVATOR OR RE- tions specified in this paragraph.’’; entity is undercapitalized or significantly CEIVER.—The members of the board of direc- (4) by redesignating subsection (c) as sub- undercapitalized (as defined in section tors of a regulated entity shall not be liable section (d); and 1364(a)(3) or in regulations issued pursuant to to the shareholders or creditors of the regu- (5) by inserting after subsection (b) the fol- section 1364(b), as applicable), and— lated entity for acquiescing in or consenting lowing new subsection: ‘‘(i) has no reasonable prospect of becom- in good faith to the appointment of the ‘‘(c) RESTRICTION ON COMPENSATION OF EX- ing adequately capitalized; Agency as conservator or receiver for that ECUTIVE OFFICERS.—A regulated entity that ‘‘(ii) fails to become adequately capital- regulated entity. is classified as significantly undercapitalized ized, as required by— ‘‘(7) AGENCY NOT SUBJECT TO ANY OTHER may not, without prior written approval by ‘‘(I) section 1365(a)(1) with respect to an FEDERAL AGENCY.—When acting as conser- the Director— undercapitalized regulated entity; or vator or receiver, the Agency shall not be ‘‘(1) pay any bonus to any executive offi- ‘‘(II) section 1366(a)(1) with respect to a sig- subject to the direction or supervision of any cer; or nificantly undercapitalized regulated entity; other agency of the United States or any

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State in the exercise of the rights, powers, ‘‘(I) IN GENERAL.—The Agency may, as con- any determination with respect to such and privileges of the Agency. servator or receiver, and for purposes of car- claim. ‘‘(b) POWERS AND DUTIES OF THE AGENCY AS rying out any power, authority, or duty with ‘‘(ii) EXTENSION OF TIME.—The period de- CONSERVATOR OR RECEIVER.— respect to a regulated entity (including described in clause (i) may be extended by a ‘‘(1) RULEMAKING AUTHORITY OF THE AGEN- termining any claim against the regulated written agreement between the claimant and CY.—The Agency may prescribe such regula- entity and determining and realizing upon the Agency. tions as the Agency determines to be appro- any asset of any person in the course of col- ‘‘(iii) MAILING OF NOTICE SUFFICIENT.—The priate regarding the conduct of lecting money due the regulated entity), ex- notification requirements of clause (i) shall conservatorships or receiverships. ercise any power established under section be deemed to be satisfied if the notice of any ‘‘(2) GENERAL POWERS.— 1348. determination with respect to any claim is ‘‘(II) APPLICABILITY OF LAW.—The provi- mailed to the last address of the claimant ‘‘(A) SUCCESSOR TO REGULATED ENTITY.— The Agency shall, as conservator or receiver, sions of section 1348 shall apply with respect which appears— and by operation of law, immediately suc- to the exercise of any power exercised under ‘‘(I) on the books of the regulated entity; ceed to— this subparagraph in the same manner as ‘‘(II) in the claim filed by the claimant; or ‘‘(i) all rights, titles, powers, and privileges such provisions apply under that section. ‘‘(III) in documents submitted in proof of UTHORITY OF DIRECTOR.—A subpoena of the regulated entity, and of any stock- ‘‘(ii) A the claim. or subpoena duces tecum may be issued ‘‘(iv) CONTENTS OF NOTICE OF DISALLOW- holder, officer, or director of such regulated under clause (i) only by, or with the written ANCE.—If any claim filed under clause (i) is entity with respect to the regulated entity approval of, the Director, or the designee of disallowed, the notice to the claimant shall and the assets of the regulated entity; and the Director. contain— ‘‘(ii) title to the books, records, and assets ‘‘(iii) RULE OF CONSTRUCTION.—This sub- ‘‘(I) a statement of each reason for the dis- of any other legal custodian of such regu- section shall not be construed to limit any allowance; and lated entity. rights that the Agency, in any capacity, ‘‘(II) the procedures available for obtaining ‘‘(B) OPERATE THE REGULATED ENTITY.—The might otherwise have under section 1317 or agency review of the determination to dis- Agency may, as conservator or receiver— 1379D. allow the claim or judicial determination of ‘‘(i) take over the assets of and operate the ‘‘(J) CONTRACTING FOR SERVICES.—The the claim. regulated entity with all the powers of the Agency may, as conservator or receiver, pro- ‘‘(B) ALLOWANCE OF PROVEN CLAIM.—The re- shareholders, the directors, and the officers vide by contract for the carrying out of any ceiver shall allow any claim received on or of the regulated entity and conduct all busi- of its functions, activities, actions, or duties before the date specified in the notice pub- ness of the regulated entity; as conservator or receiver. lished under paragraph (3)(B)(i), or the date ‘‘(ii) collect all obligations and money due ‘‘(K) INCIDENTAL POWERS.—The Agency specified in the notice required under para- the regulated entity; may, as conservator or receiver— graph (3)(C), which is proved to the satisfac- ‘‘(iii) perform all functions of the regulated ‘‘(i) exercise all powers and authorities tion of the receiver. entity in the name of the regulated entity specifically granted to conservators or re- ‘‘(C) DISALLOWANCE OF CLAIMS FILED AFTER which are consistent with the appointment ceivers, respectively, under this section, and END OF FILING PERIOD.—Claims filed after the as conservator or receiver; and such incidental powers as shall be necessary date specified in the notice published under ‘‘(iv) preserve and conserve the assets and to carry out such powers; and paragraph (3)(B)(i), or the date specified property of such regulated entity. ‘‘(ii) take any action authorized by this under paragraph (3)(C), shall be disallowed ‘‘(C) FUNCTIONS OF OFFICERS, DIRECTORS, section, which the Agency determines is in and such disallowance shall be final. AND SHAREHOLDERS OF A REGULATED ENTITY.— the best interests of the regulated entity or ‘‘(D) AUTHORITY TO DISALLOW CLAIMS.— The Agency may, by regulation or order, the Agency. ‘‘(i) IN GENERAL.—The receiver may dis- provide for the exercise of any function by ‘‘(3) AUTHORITY OF RECEIVER TO DETERMINE allow any portion of any claim by a creditor any stockholder, director, or officer of any CLAIMS.— or claim of security, preference, or priority regulated entity for which the Agency has ‘‘(A) IN GENERAL.—The Agency may, as re- which is not proved to the satisfaction of the been named conservator or receiver. ceiver, determine claims in accordance with receiver. ‘‘(D) POWERS AS CONSERVATOR.—The Agen- the requirements of this subsection and any ‘‘(ii) PAYMENTS TO LESS THAN FULLY SE- cy may, as conservator, take such action as regulations prescribed under paragraph (4). CURED CREDITORS.—In the case of a claim of may be— ‘‘(B) NOTICE REQUIREMENTS.—The receiver, a creditor against a regulated entity which ‘‘(i) necessary to put the regulated entity in any case involving the liquidation or is secured by any property or other asset of in a sound and solvent condition; and winding up of the affairs of a closed regu- such regulated entity, the receiver— ‘‘(ii) appropriate to carry on the business lated entity, shall— ‘‘(I) may treat the portion of such claim of the regulated entity and preserve and con- ‘‘(i) promptly publish a notice to the credi- which exceeds an amount equal to the fair serve the assets and property of the regu- tors of the regulated entity to present their market value of such property or other asset lated entity, including, if two or more Fed- claims, together with proof, to the receiver as an unsecured claim against the regulated eral home loan banks have been placed in by a date specified in the notice which shall entity; and conservatorship contemporaneously, merg- be not less than 90 days after the publication ‘‘(II) may not make any payment with re- ing two or more such banks into a single of such notice; and spect to such unsecured portion of the claim Federal home loan bank. ‘‘(ii) republish such notice approximately 1 other than in connection with the disposi- ‘‘(E) ADDITIONAL POWERS AS RECEIVER.—The month and 2 months, respectively, after the tion of all claims of unsecured creditors of Agency may, as receiver, place the regulated publication under clause (i). the regulated entity. entity in liquidation and proceed to realize ‘‘(C) MAILING REQUIRED.—The receiver shall ‘‘(iii) EXCEPTIONS.—No provision of this upon the assets of the regulated entity, hav- mail a notice similar to the notice published paragraph shall apply with respect to any ex- ing due regard to the conditions of the hous- under subparagraph (B)(i) at the time of such tension of credit from any Federal Reserve ing finance market. publication to any creditor shown on the Bank, Federal home loan bank, or the Treas- ‘‘(F) ORGANIZATION OF NEW REGULATED EN- books of the regulated entity— ury of the United States. TITIES.—The Agency may, as receiver, orga- ‘‘(i) at the last address of the creditor ap- ‘‘(E) NO JUDICIAL REVIEW OF DETERMINATION nize a successor regulated entity that will pearing in such books; or PURSUANT TO SUBPARAGRAPH (D).—No court operate pursuant to subsection (i). ‘‘(ii) upon discovery of the name and ad- may review the determination of the Agency ‘‘(G) TRANSFER OF ASSETS AND LIABIL- dress of a claimant not appearing on the under subparagraph (D) to disallow a claim. ITIES.—The Agency may, as conservator or books of the regulated entity within 30 days This subparagraph shall not affect the au- receiver, transfer any asset or liability of the after the discovery of such name and ad- thority of a claimant to obtain de novo judi- regulated entity in default without any ap- dress. cial review of a claim pursuant to paragraph proval, assignment, or consent with respect ‘‘(4) RULEMAKING AUTHORITY RELATING TO (6). to such transfer. Any Federal home loan DETERMINATION OF CLAIMS.—Subject to sub- ‘‘(F) LEGAL EFFECT OF FILING.— bank may, with the approval of the Agency, section (c), the Director may prescribe regu- ‘‘(i) STATUTE OF LIMITATION TOLLED.—For acquire the assets of any Bank in con- lations regarding the allowance or disallow- purposes of any applicable statute of limita- servatorship or receivership, and assume the ance of claims by the receiver and providing tions, the filing of a claim with the receiver liabilities of such Bank. for administrative determination of claims shall constitute a commencement of an ac- ‘‘(H) PAYMENT OF VALID OBLIGATIONS.—The and review of such determination. tion. Agency, as conservator or receiver, shall, to ‘‘(5) PROCEDURES FOR DETERMINATION OF ‘‘(ii) NO PREJUDICE TO OTHER ACTIONS.—Sub- the extent of proceeds realized from the per- CLAIMS.— ject to paragraph (10), the filing of a claim formance of contracts or sale of the assets of ‘‘(A) DETERMINATION PERIOD.— with the receiver shall not prejudice any a regulated entity, pay all valid obligations ‘‘(i) IN GENERAL.—Before the end of the 180- right of the claimant to continue any action of the regulated entity in accordance with day period beginning on the date on which which was filed before the date of the ap- the prescriptions and limitations of this sec- any claim against a regulated entity is filed pointment of the receiver, subject to the de- tion. with the Agency as receiver, the Agency termination of claims by the receiver. ‘‘(I) SUBPOENA AUTHORITY.— shall determine whether to allow or disallow ‘‘(6) PROVISION FOR JUDICIAL DETERMINATION ‘‘(i) IN GENERAL.— the claim and shall notify the claimant of OF CLAIMS.—

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‘‘(A) IN GENERAL.—The claimant may file respect to such security interest after the conservator or receiver under subparagraph suit on a claim (or continue an action com- earlier of— (A) for a stay of any judicial action or pro- menced before the appointment of the re- ‘‘(i) the end of the 90-day period beginning ceeding in any court with jurisdiction of ceiver) in the district or territorial court of on the date of the filing of a request for expe- such action or proceeding, the court shall the United States for the district within dited relief; or grant such stay as to all parties. which the principal place of business of the ‘‘(ii) the date the Agency denies the claim. ‘‘(11) ADDITIONAL RIGHTS AND DUTIES.— regulated entity is located or the United ‘‘(D) STATUTE OF LIMITATIONS.—If an action ‘‘(A) PRIOR FINAL ADJUDICATION.—The States District Court for the District of Co- described under subparagraph (C) is not filed, Agency shall abide by any final unappealable lumbia (and such court shall have jurisdic- or the motion to renew a previously filed judgment of any court of competent jurisdiction to hear such claim), before the end of suit is not made, before the end of the 30-day tion which was rendered before the appoint- the 60-day period beginning on the earlier period beginning on the date on which such ment of the Agency as conservator or re- of— action or motion may be filed under subpara- ceiver. ‘‘(i) the end of the period described in paragraph (B), the claim shall be deemed to be ‘‘(B) RIGHTS AND REMEDIES OF CONSERVATOR graph (5)(A)(i) with respect to any claim disallowed as of the end of such period (other OR RECEIVER.—In the event of any appealable against a regulated entity for which the than any portion of such claim which was al- judgment, the Agency as conservator or re- Agency is receiver; or lowed by the receiver), such disallowance ceiver shall— ‘‘(ii) the date of any notice of disallowance shall be final, and the claimant shall have no ‘‘(i) have all the rights and remedies avail- of such claim pursuant to paragraph (5)(A)(i). further rights or remedies with respect to able to the regulated entity (before the ap- such claim. pointment of such conservator or receiver) ‘‘(B) STATUTE OF LIMITATIONS.—A claim ‘‘(E) LEGAL EFFECT OF FILING.— and the Agency, including removal to Fed- shall be deemed to be disallowed (other than ‘‘(i) STATUTE OF LIMITATION TOLLED.—For eral court and all appellate rights; and any portion of such claim which was allowed purposes of any applicable statute of limita- ‘‘(ii) not be required to post any bond in by the receiver), and such disallowance shall tions, the filing of a claim with the receiver order to pursue such remedies. be final, and the claimant shall have no fur- shall constitute a commencement of an ac- ‘‘(C) NO ATTACHMENT OR EXECUTION.—No at- ther rights or remedies with respect to such tion. tachment or execution may issue by any claim, if the claimant fails, before the end of ‘‘(ii) NO PREJUDICE TO OTHER ACTIONS.—Sub- court upon assets in the possession of the re- the 60-day period described under subpara- ject to paragraph (10), the filing of a claim ceiver. graph (A), to file suit on such claim (or con- with the receiver shall not prejudice any ‘‘(D) LIMITATION ON JUDICIAL REVIEW.—Ex- tinue an action commenced before the ap- right of the claimant to continue any action cept as otherwise provided in this sub- pointment of the receiver). that was filed before the appointment of the section, no court shall have jurisdiction ‘‘(7) REVIEW OF CLAIMS.— receiver, subject to the determination of over— ‘‘(A) OTHER REVIEW PROCEDURES.— claims by the receiver. ‘‘(i) any claim or action for payment from, ‘‘(i) IN GENERAL.—The Agency shall estab- ‘‘(9) PAYMENT OF CLAIMS.— or any action seeking a determination of lish such alternative dispute resolution proc- ‘‘(A) IN GENERAL.—The receiver may, in the rights with respect to, the assets of any reg- esses as may be appropriate for the resolu- discretion of the receiver, and to the extent ulated entity for which the Agency has been tion of claims filed under paragraph (5)(A)(i). funds are available from the assets of the appointed receiver; or ‘‘(ii) CRITERIA.—In establishing alternative regulated entity, pay creditor claims, in ‘‘(ii) any claim relating to any act or omis- dispute resolution processes, the Agency such manner and amounts as are authorized sion of such regulated entity or the Agency shall strive for procedures which are expedi- under this section, which are— as receiver. tious, fair, independent, and low cost. ‘‘(i) allowed by the receiver; ‘‘(E) DISPOSITION OF ASSETS.—In exercising ‘‘(iii) VOLUNTARY BINDING OR NONBINDING ‘‘(ii) approved by the Agency pursuant to a any right, power, privilege, or authority as PROCEDURES.—The Agency may establish final determination pursuant to paragraph conservator or receiver in connection with both binding and nonbinding processes, (7) or (8); or any sale or disposition of assets of a regu- which may be conducted by any government ‘‘(iii) determined by the final judgment of lated entity for which the Agency has been or private party. All parties, including the any court of competent jurisdiction. appointed conservator or receiver, the Agen- claimant and the Agency, must agree to the ‘‘(B) AGREEMENTS AGAINST THE INTEREST OF cy shall conduct its operations in a manner use of the process in a particular case. THE AGENCY.—No agreement that tends to di- which maintains stability in the housing fi- ‘‘(B) CONSIDERATION OF INCENTIVES.—The minish or defeat the interest of the Agency nance markets and, to the extent consistent Agency shall seek to develop incentives for in any asset acquired by the Agency as re- with that goal— claimants to participate in the alternative ceiver under this section shall be valid ‘‘(i) maximizes the net present value re- dispute resolution process. against the Agency unless such agreement is turn from the sale or disposition of such as- ‘‘(8) EXPEDITED DETERMINATION OF in writing, and executed by an authorized of- sets; CLAIMS.— ficial of the regulated entity, except that ‘‘(ii) minimizes the amount of any loss re- ‘‘(A) ESTABLISHMENT REQUIRED.—The Agen- such requirements for qualified financial alized in the resolution of cases; and cy shall establish a procedure for expedited contracts shall be applied in a manner con- ‘‘(iii) ensures adequate competition and relief outside of the routine claims process sistent with reasonable business trading fair and consistent treatment of offerors. established under paragraph (5) for claimants practices in the financial contracts market. ‘‘(12) STATUTE OF LIMITATIONS FOR ACTIONS who— ‘‘(C) PAYMENT OF DIVIDENDS ON CLAIMS.— BROUGHT BY CONSERVATOR OR RECEIVER.— ‘‘(i) allege the existence of legally valid The receiver may, in the sole discretion of ‘‘(A) IN GENERAL.—Notwithstanding any and enforceable or perfected security inter- the receiver, pay from the assets of the regu- provision of any contract, the applicable ests in assets of any regulated entity for lated entity dividends on proved claims at statute of limitations with regard to any ac- which the Agency has been appointed re- any time, and no liability shall attach to the tion brought by the Agency as conservator ceiver; and Agency, by reason of any such payment, for or receiver shall be— ‘‘(ii) allege that irreparable injury will failure to pay dividends to a claimant whose ‘‘(i) in the case of any contract claim, the occur if the routine claims procedure is fol- claim is not proved at the time of any such longer of— lowed. payment. ‘‘(I) the 6-year period beginning on the date ‘‘(B) DETERMINATION PERIOD.—Before the ‘‘(D) RULEMAKING AUTHORITY OF THE DIREC- the claim accrues; or end of the 90-day period beginning on the TOR.—The Director may prescribe such rules, ‘‘(II) the period applicable under State law; date any claim is filed in accordance with including definitions of terms, as the Direc- and the procedures established under subpara- tor deems appropriate to establish a single ‘‘(ii) in the case of any tort claim, the graph (A), the Director shall— uniform interest rate for, or to make pay- longer of— ‘‘(i) determine— ments of post-insolvency interest to credi- ‘‘(I) the 3-year period beginning on the date ‘‘(I) whether to allow or disallow such tors holding proven claims against the re- the claim accrues; or claim; or ceivership estates of regulated entities fol- ‘‘(II) the period applicable under State law. ‘‘(II) whether such claim should be deter- lowing satisfaction by the receiver of the ‘‘(B) DETERMINATION OF THE DATE ON WHICH mined pursuant to the procedures estab- principal amount of all creditor claims. A CLAIM ACCRUES.—For purposes of subpara- lished under paragraph (5); and ‘‘(10) SUSPENSION OF LEGAL ACTIONS.— graph (A), the date on which the statute of ‘‘(ii) notify the claimant of the determina- ‘‘(A) IN GENERAL.—After the appointment limitations begins to run on any claim de- tion, and if the claim is disallowed, provide of a conservator or receiver for a regulated scribed in such subparagraph shall be the a statement of each reason for the disallow- entity, the conservator or receiver may, in later of— ance and the procedure for obtaining agency any judicial action or proceeding to which ‘‘(i) the date of the appointment of the review or judicial determination. such regulated entity is or becomes a party, Agency as conservator or receiver; or ‘‘(C) PERIOD FOR FILING OR RENEWING request a stay for a period not to exceed— ‘‘(ii) the date on which the cause of action SUIT.—Any claimant who files a request for ‘‘(i) 45 days, in the case of any conservator; accrues. expedited relief shall be permitted to file a and ‘‘(13) REVIVAL OF EXPIRED STATE CAUSES OF suit, or to continue a suit filed before the ap- ‘‘(ii) 90 days, in the case of any receiver. ACTION.— pointment of the receiver, seeking a deter- ‘‘(B) GRANT OF STAY BY ALL COURTS RE- ‘‘(A) IN GENERAL.—In the case of any tort mination of the rights of the claimant with QUIRED.—Upon receipt of a request by any claim described under subparagraph (B) for

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Federal Rules of Civil Procedure shall apply ceive not less than the amount provided ‘‘(14) ACCOUNTING AND RECORDKEEPING RE- with respect to any proceeding under para- under subsection (e)(2). QUIREMENTS.— graph (16) without regard to the requirement ‘‘(3) DEFINITION.—The term ‘administrative ‘‘(A) IN GENERAL.—The Agency as conser- of such rule that the applicant show that the expenses of the receiver’ shall include the ac- vator or receiver shall, consistent with the injury, loss, or damage is irreparable and im- tual, necessary costs and expenses incurred accounting and reporting practices and pro- mediate. by the receiver in preserving the assets of cedures established by the Agency, maintain ‘‘(18) TREATMENT OF CLAIMS ARISING FROM the regulated entity or liquidating or other- a full accounting of each conservatorship BREACH OF CONTRACTS EXECUTED BY THE RE- wise resolving the affairs of the regulated en- and receivership or other disposition of a CEIVER OR CONSERVATOR.— tity. Such expenses shall include obligations regulated entity in default. ‘‘(A) IN GENERAL.—Notwithstanding any that are incurred by the receiver after ap- ‘‘(B) ANNUAL ACCOUNTING OR REPORT.—With other provision of this subsection, any final pointment as receiver that the Director de- respect to each conservatorship or receiver- termines are necessary and appropriate to ship, the Agency shall make an annual ac- and unappealable judgment for monetary damages entered against a receiver or con- facilitate the smooth and orderly liquidation counting or report available to the Board, or other resolution of the regulated entity. the Comptroller General of the United servator for the breach of an agreement exe- States, the Committee on Banking, Housing, cuted or approved in writing by such receiver ‘‘(d) PROVISIONS RELATING TO CONTRACTS and Urban Affairs of the Senate, and the or conservator after the date of its appoint- ENTERED INTO BEFORE APPOINTMENT OF CON- Committee on Financial Services of the ment, shall be paid as an administrative ex- SERVATOR OR RECEIVER.— House of Representatives. pense of the receiver or conservator. ‘‘(1) AUTHORITY TO REPUDIATE CONTRACTS.— ‘‘(C) AVAILABILITY OF REPORTS.—Any re- ‘‘(B) NO LIMITATION OF POWER.—Nothing in In addition to any other rights a conservator port prepared under subparagraph (B) shall this paragraph shall be construed to limit or receiver may have, the conservator or re- be made available by the Agency upon re- the power of a receiver or conservator to ex- ceiver for any regulated entity may dis- quest to any shareholder of a regulated enti- ercise any rights under contract or law, in- affirm or repudiate any contract or lease— ty or any member of the public. cluding to terminate, breach, cancel, or oth- ‘‘(A) to which such regulated entity is a ‘‘(D) RECORDKEEPING REQUIREMENT.—After erwise discontinue such agreement. party; the end of the 6-year period beginning on the ‘‘(19) GENERAL EXCEPTIONS.— ‘‘(B) the performance of which the conser- date that the conservatorship or receivership ‘‘(A) LIMITATIONS.—The rights of a conservator or receiver, in its sole discretion, de- is terminated by the Director, the Agency vator or receiver appointed under this sec- termines to be burdensome; and may destroy any records of such regulated tion shall be subject to the limitations on ‘‘(C) the disaffirmance or repudiation of entity which the Agency, in the discretion of the powers of a receiver under sections 402 which the conservator or receiver deter- the Agency, determines to be unnecessary through 407 of the Federal Deposit Insurance mines, in its sole discretion, will promote unless directed not to do so by a court of Corporation Improvement Act of 1991 (12 the orderly administration of the affairs of competent jurisdiction or governmental U.S.C. 4402 through 4407). the regulated entity. agency, or prohibited by law. ‘‘(B) MORTGAGES HELD IN TRUST.— ‘‘(2) TIMING OF REPUDIATION.—The conser- ‘‘(15) FRAUDULENT TRANSFERS.— ‘‘(i) IN GENERAL.—Any mortgage, pool of vator or receiver shall determine whether or ‘‘(A) IN GENERAL.—The Agency, as conser- mortgages, or interest in a pool of mort- not to exercise the rights of repudiation vator or receiver, may avoid a transfer of gages, held in trust, custodial, or agency ca- under this subsection within a reasonable pe- any interest of a regulated entity-affiliated pacity by a regulated entity for the benefit riod following such appointment. party, or any person who the conservator or of persons other than the regulated entity ‘‘(3) CLAIMS FOR DAMAGES FOR REPUDI- receiver determines is a debtor of the regu- shall not be available to satisfy the claims of ATION.— lated entity, in property, or any obligation creditors generally. ‘‘(A) IN GENERAL.—Except as otherwise provided under subparagraph (C) and paragraphs incurred by such party or person, that was ‘‘(ii) HOLDING OF MORTGAGES.—Any mort- made within 5 years of the date on which the gage, pool of mortgages, or interest in a pool (4), (5), and (6), the liability of the conser- Agency was appointed conservator or re- of mortgages, described under clause (i) shall vator or receiver for the disaffirmance or repudiation of any contract pursuant to para- ceiver, if such party or person voluntarily or be held by the conservator or receiver ap- graph (1) shall be— involuntarily made such transfer or incurred pointed under this section for the beneficial such liability with the intent to hinder, ‘‘(i) limited to actual direct compensatory owners of such mortgage, pool of mortgages, delay, or defraud the regulated entity, the damages; and or interest in a pool of mortgages in accord- Agency, the conservator, or receiver. ‘‘(ii) determined as of— ance with the terms of the agreement cre- ‘‘(B) RIGHT OF RECOVERY.—To the extent a ‘‘(I) the date of the appointment of the ating such trust, custodial, or other agency transfer is avoided under subparagraph (A), conservator or receiver; or arrangement. the conservator or receiver may recover, for ‘‘(II) in the case of any contract or agree- ‘‘(iii) LIABILITY OF RECEIVER.—The liability the benefit of the regulated entity, the prop- ment referred to in paragraph (8), the date of of a receiver appointed under this section for erty transferred, or, if a court so orders, the the disaffirmance or repudiation of such con- damages shall, in the case of any contingent value of such property (at the time of such tract or agreement. or unliquidated claim relating to the mort- transfer) from— ‘‘(B) NO LIABILITY FOR OTHER DAMAGES.— gages held in trust, be estimated in accord- ‘‘(i) the initial transferee of such transfer For purposes of subparagraph (A), the term ance set forth in the regulations of the Di- or the regulated entity-affiliated party or ‘actual direct compensatory damages’ shall rector. person for whose benefit such transfer was not include— made; or ‘‘(c) PRIORITY OF EXPENSES AND UNSECURED ‘‘(i) punitive or exemplary damages; ‘‘(ii) any immediate or mediate transferee CLAIMS.— ‘‘(ii) damages for lost profits or oppor- of any such initial transferee. ‘‘(1) IN GENERAL.—Unsecured claims tunity; or ‘‘(C) RIGHTS OF TRANSFEREE OR OBLIGEE.— against a regulated entity, or a receiver, ‘‘(iii) damages for pain and suffering. The conservator or receiver may not recover that are proven to the satisfaction of the re- ‘‘(C) MEASURE OF DAMAGES FOR REPUDI- under subparagraph (B) from— ceiver shall have priority in the following ATION OF FINANCIAL CONTRACTS.—In the case ‘‘(i) any transferee that takes for value, in- order: of any qualified financial contract or agree- cluding satisfaction or securing of a present ‘‘(A) Administrative expenses of the re- ment to which paragraph (8) applies, com- or antecedent debt, in good faith; or ceiver. pensatory damages shall be— ‘‘(ii) any immediate or mediate good faith ‘‘(B) Any other general or senior liability ‘‘(i) deemed to include normal and reason- transferee of such transferee. of the regulated entity and claims of other able costs of cover or other reasonable meas- ‘‘(D) RIGHTS UNDER THIS PARAGRAPH.—The Federal home loan banks arising from their ures of damages utilized in the industries for rights under this paragraph of the conser- payment obligations (including joint and such contract and agreement claims; and vator or receiver described under subpara- several payment obligations). ‘‘(ii) paid in accordance with this sub- graph (A) shall be superior to any rights of a ‘‘(C) Any obligation subordinated to gen- section and subsection (e), except as other- trustee or any other party (other than any eral creditors. wise specifically provided in this section.

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‘‘(4) LEASES UNDER WHICH THE REGULATED ‘‘(II) may offset against any such payments ‘‘(iii) any right to offset or net out any ter- ENTITY IS THE LESSEE.— any damages which accrue after such date mination value, payment amount, or other ‘‘(A) IN GENERAL.—If the conservator or re- due to the nonperformance (after such date) transfer obligation arising under or in con- ceiver disaffirms or repudiates a lease under of any obligation of the regulated entity nection with 1 or more contracts and agree- which the regulated entity was the lessee, under the contract; and ments described in clause (i), including any the conservator or receiver shall not be lia- ‘‘(ii) the conservator or receiver shall— master agreement for such contracts or ble for any damages (other than damages de- ‘‘(I) not be liable to the purchaser for any agreements. termined under subparagraph (B)) for the damages arising after such date as a result of ‘‘(B) APPLICABILITY OF OTHER PROVISIONS.— disaffirmance or repudiation of such lease. the repudiation other than the amount of Paragraph (10) of subsection (b) shall apply ‘‘(B) PAYMENTS OF RENT.—Notwithstanding any offset allowed under clause (i)(II); in the case of any judicial action or pro- subparagraph (A), the lessor under a lease to ‘‘(II) deliver title to the purchaser in ac- ceeding brought against any receiver re- which that subparagraph applies shall— cordance with the provisions of the contract; ferred to under subparagraph (A), or the reg- and ‘‘(i) be entitled to the contractual rent ac- ulated entity for which such receiver was ap- ‘‘(III) have no obligation under the con- cruing before the later of the date— pointed, by any party to a contract or agree- tract other than the performance required ‘‘(I) the notice of disaffirmance or repudi- ment described under subparagraph (A)(i) under subclause (II). ation is mailed; or with such regulated entity. ‘‘(C) ASSIGNMENT AND SALE ALLOWED.— ‘‘(II) the disaffirmance or repudiation be- ‘‘(C) CERTAIN TRANSFERS NOT AVOIDABLE.— comes effective, unless the lessor is in de- ‘‘(i) IN GENERAL.—No provision of this paragraph shall be construed as limiting the ‘‘(i) IN GENERAL.—Notwithstanding para- fault or breach of the terms of the lease; right of the conservator or receiver to assign graph (11) or any other Federal or State laws ‘‘(ii) have no claim for damages under any the contract described under subparagraph relating to the avoidance of preferential or acceleration clause or other penalty provi- (A), and sell the property subject to the con- fraudulent transfers, the Agency, whether sion in the lease; and tract and the provisions of this paragraph. acting as such or as conservator or receiver ‘‘(iii) have a claim for any unpaid rent, ‘‘(ii) NO LIABILITY AFTER ASSIGNMENT AND of a regulated entity, may not avoid any subject to all appropriate offsets and de- SALE.—If an assignment and sale described transfer of money or other property in con- fenses, due as of the date of the appointment, under clause (i) is consummated, the conser- nection with any qualified financial contract which shall be paid in accordance with this vator or receiver shall have no further liabil- with a regulated entity. subsection and subsection (e). ity under the contract described under sub- ‘‘(ii) EXCEPTION FOR CERTAIN TRANSFERS.— ‘‘(5) LEASES UNDER WHICH THE REGULATED paragraph (A), or with respect to the real Clause (i) shall not apply to any transfer of ENTITY IS THE LESSOR.— property which was the subject of such con- money or other property in connection with ‘‘(A) IN GENERAL.—If the conservator or re- tract. any qualified financial contract with a regu- ceiver repudiates an unexpired written lease ‘‘(7) PROVISIONS APPLICABLE TO SERVICE lated entity if the Agency determines that of real property of the regulated entity CONTRACTS.— the transferee had actual intent to hinder, under which the regulated entity is the les- ‘‘(A) SERVICES PERFORMED BEFORE APPOINT- delay, or defraud such regulated entity, the sor and the lessee is not, as of the date of MENT.—In the case of any contract for serv- creditors of such regulated entity, or any such repudiation, in default, the lessee under ices between any person and any regulated conservator or receiver appointed for such such lease may either— entity for which the Agency has been ap- regulated entity. ‘‘(i) treat the lease as terminated by such pointed conservator or receiver, any claim of ‘‘(D) CERTAIN CONTRACTS AND AGREEMENTS repudiation; or such person for services performed before the DEFINED.—In this subsection: ‘‘(ii) remain in possession of the leasehold appointment of the conservator or the re- ‘‘(i) QUALIFIED FINANCIAL CONTRACT.—The interest for the balance of the term of the ceiver shall be— term ‘qualified financial contract’ means lease, unless the lessee defaults under the ‘‘(i) a claim to be paid in accordance with any securities contract, commodity con- terms of the lease after the date of such re- subsections (b) and (e); and tract, forward contract, repurchase agree- pudiation. ‘‘(ii) deemed to have arisen as of the date ment, swap agreement, and any similar ‘‘(B) PROVISIONS APPLICABLE TO LESSEE RE- the conservator or receiver was appointed. agreement that the Agency determines by MAINING IN POSSESSION.—If any lessee under a ‘‘(B) SERVICES PERFORMED AFTER APPOINT- regulation, resolution, or order to be a quali- lease described under subparagraph (A) re- MENT AND PRIOR TO REPUDIATION.—If, in the fied financial contract for purposes of this mains in possession of a leasehold interest case of any contract for services described paragraph. under clause (ii) of such subparagraph— under subparagraph (A), the conservator or ‘‘(ii) SECURITIES CONTRACT.—The term ‘se- ‘‘(i) the lessee— receiver accepts performance by the other curities contract’— ‘‘(I) shall continue to pay the contractual person before the conservator or receiver ‘‘(I) means a contract for the purchase, rent pursuant to the terms of the lease after makes any determination to exercise the sale, or loan of a security, a certificate of de- the date of the repudiation of such lease; and right of repudiation of such contract under posit, a mortgage loan, or any interest in a ‘‘(II) may offset against any rent payment this section— mortgage loan, a group or index of securi- which accrues after the date of the repudi- ‘‘(i) the other party shall be paid under the ties, certificates of deposit, or mortgage ation of the lease, and any damages which terms of the contract for the services per- loans or interests therein (including any in- accrue after such date due to the non- formed; and performance of any obligation of the regu- ‘‘(ii) the amount of such payment shall be terest therein or based on the value thereof) lated entity under the lease after such date; treated as an administrative expense of the or any option on any of the foregoing, in- and conservatorship or receivership. cluding any option to purchase or sell any ‘‘(ii) the conservator or receiver shall not ‘‘(C) ACCEPTANCE OF PERFORMANCE NO BAR such security, certificate of deposit, mort- be liable to the lessee for any damages aris- TO SUBSEQUENT REPUDIATION.—The accept- gage loan, interest, group or index, or oping after such date as a result of the repudi- ance by any conservator or receiver of serv- tion, and including any repurchase or reverse ation other than the amount of any offset al- ices referred to under subparagraph (B) in repurchase transaction on any such security, lowed under clause (i)(II). connection with a contract described in such certificate of deposit, mortgage loan, inter- ‘‘(6) CONTRACTS FOR THE SALE OF REAL subparagraph shall not affect the right of the est, group or index, or option; PROPERTY.— conservator or receiver to repudiate such ‘‘(II) does not include any purchase, sale, ‘‘(A) IN GENERAL.—If the conservator or re- contract under this section at any time after or repurchase obligation under a participa- ceiver repudiates any contract for the sale of such performance. tion in a commercial mortgage loan unless real property and the purchaser of such real ‘‘(8) CERTAIN QUALIFIED FINANCIAL CON- the Agency determines by regulation, resolu- property under such contract is in posses- TRACTS.— tion, or order to include any such agreement sion, and is not, as of the date of such repudi- ‘‘(A) RIGHTS OF PARTIES TO CONTRACTS.— within the meaning of such term; ation, in default, such purchaser may ei- Subject to paragraphs (9) and (10) and not- ‘‘(III) means any option entered into on a ther— withstanding any other provision of this Di- national securities exchange relating to for- ‘‘(i) treat the contract as terminated by vision, any other Federal law, or the law of eign currencies; such repudiation; or any State, no person shall be stayed or pro- ‘‘(IV) means the guarantee by or to any se- ‘‘(ii) remain in possession of such real hibited from exercising— curities clearing agency of any settlement of property. ‘‘(i) any right such person has to cause the cash, securities, certificates of deposit, ‘‘(B) PROVISIONS APPLICABLE TO PURCHASER termination, liquidation, or acceleration of mortgage loans or interests therein, group or REMAINING IN POSSESSION.—If any purchaser any qualified financial contract with a regu- index of securities, certificates of deposit, or of real property under any contract de- lated entity that arises upon the appoint- mortgage loans or interests therein (includ- scribed under subparagraph (A) remains in ment of the Agency as receiver for such reg- ing any interest therein or based on the possession of such property under clause (ii) ulated entity at any time after such appoint- value thereof) or option on any of the fore- of such subparagraph— ment; going, including any option to purchase or ‘‘(i) the purchaser— ‘‘(ii) any right under any security agree- sell any such security, certificate of deposit, ‘‘(I) shall continue to make all payments ment or arrangement or other credit en- mortgage loan, interest, group or index, or due under the contract after the date of the hancement relating to one or more qualified option; repudiation of the contract; and financial contracts described in clause (i); or ‘‘(V) means any margin loan;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00208 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.133 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2575 ‘‘(VI) means any other agreement or trans- or in the future becomes the subject of deal- ment that is referred to in subclause (I), action that is similar to any agreement or ing in the forward contract trade, or product (III), or (IV); and transaction referred to in this clause; or byproduct thereof, with a maturity date ‘‘(VI) means any security agreement or ar- ‘‘(VII) means any combination of the more than 2 days after the date the contract rangement or other credit enhancement re- agreements or transactions referred to in is entered into, including, a repurchase lated to any agreement or transaction re- this clause; transaction, reverse repurchase transaction, ferred to in subclause (I), (III), (IV), or (V), ‘‘(VIII) means any option to enter into any consignment, lease, swap, hedge transaction, including any guarantee or reimbursement agreement or transaction referred to in this deposit, loan, option, allocated transaction, obligation in connection with any agreement clause; unallocated transaction, or any other simi- or transaction referred to in any such sub- ‘‘(IX) means a master agreement that pro- lar agreement; clause. vides for an agreement or transaction re- ‘‘(II) any combination of agreements or For purposes of this clause, the term ‘quali- ferred to in subclause (I), (III), (IV), (V), (VI), transactions referred to in subclauses (I) and fied foreign government security’ means a (VII), or (VIII), together with all supple- (III); security that is a direct obligation of, or ments to any such master agreement, with- ‘‘(III) any option to enter into any agree- that is fully guaranteed by, the central gov- out regard to whether the master agreement ment or transaction referred to in subclause ernment of a member of the Organization for provides for an agreement or transaction (I) or (II); Economic Cooperation and Development (as that is not a securities contract under this ‘‘(IV) a master agreement that provides for determined by regulation or order adopted clause, except that the master agreement an agreement or transaction referred to in by the appropriate Federal banking author- shall be considered to be a securities con- subclauses (I), (II), or (III), together with all ity). tract under this clause only with respect to supplements to any such master agreement, ‘‘(vi) SWAP AGREEMENT.—The term ‘swap each agreement or transaction under the without regard to whether the master agree- agreement’ means— master agreement that is referred to in sub- ment provides for an agreement or trans- ‘‘(I) any agreement, including the terms clause (I), (III), (IV), (V), (VI), (VII), or action that is not a forward contract under and conditions incorporated by reference in (VIII); and this clause, except that the master agree- any such agreement, which is an interest ‘‘(X) means any security agreement or ar- ment shall be considered to be a forward con- rate swap, option, future, or forward agree- rangement or other credit enhancement re- tract under this clause only with respect to ment, including a rate floor, rate cap, rate lated to any agreement or transaction re- collar, cross-currency rate swap, and basis ferred to in this clause, including any guar- each agreement or transaction under the master agreement that is referred to in sub- swap; a spot, same day-tomorrow, tomorrow- antee or reimbursement obligation in con- next, forward, or other foreign exchange or nection with any agreement or transaction clause (I), (II), or (III); or ‘‘(V) any security agreement or arrange- precious metals agreement; a currency swap, referred to in this clause. option, future, or forward agreement; an eq- ‘‘(iii) COMMODITY CONTRACT.—The term ment or other credit enhancement related to any agreement or transaction referred to in uity index or equity swap, option, future, or ‘commodity contract’ means— forward agreement; a debt index or debt ‘‘(I) with respect to a futures commission subclause (I), (II), (III), or (IV), including any guarantee or reimbursement obligation in swap, option, future, or forward agreement; a merchant, a contract for the purchase or sale total return, credit spread or credit swap, op- of a commodity for future delivery on, or connection with any agreement or trans- tion, future, or forward agreement; a com- subject to the rules of, a contract market or action referred to in any such subclause. modity index or commodity swap, option, fu- board of trade; ‘‘(v) REPURCHASE AGREEMENT.—The term ture, or forward agreement; or a weather ‘‘(II) with respect to a foreign futures com- ‘repurchase agreement’ (which definition swap, weather derivative, or weather option; mission merchant, a foreign future; also applies to a reverse repurchase agree- ‘‘(II) any agreement or transaction that is ‘‘(III) with respect to a leverage trans- ment)— similar to any other agreement or transaction merchant, a leverage transaction; ‘‘(I) means an agreement, including related action referred to in this clause and that is ‘‘(IV) with respect to a clearing organiza- terms, which provides for the transfer of one of a type that has been, is presently, or in tion, a contract for the purchase or sale of a or more certificates of deposit, mortgage-re- the future becomes, the subject of recurrent commodity for future delivery on, or subject lated securities (as such term is defined in to the rules of, a contract market or board of the Securities Exchange Act of 1934), mort- dealings in the swap markets (including trade that is cleared by such clearing organi- gage loans, interests in mortgage-related se- terms and conditions incorporated by ref- zation, or commodity option traded on, or curities or mortgage loans, eligible bankers’ erence in such agreement) and that is a for- subject to the rules of, a contract market or acceptances, qualified foreign government ward, swap, future, or option on one or more board of trade that is cleared by such clear- securities or securities that are direct obli- rates, currencies, commodities, equity secu- ing organization; gations of, or that are fully guaranteed by, rities or other equity instruments, debt secu- ‘‘(V) with respect to a commodity options the United States or any agency of the rities or other debt instruments, quan- dealer, a commodity option; United States against the transfer of funds titative measures associated with an occur- ‘‘(VI) any other agreement or transaction by the transferee of such certificates of derence, extent of an occurrence, or contin- that is similar to any agreement or trans- posit, eligible bankers’ acceptances, securi- gency associated with a financial, commer- action referred to in this clause; ties, mortgage loans, or interests with a si- cial, or economic consequence, or economic ‘‘(VII) any combination of the agreements multaneous agreement by such transferee to or financial indices or measures of economic or transactions referred to in this clause; transfer to the transferor thereof certificates or financial risk or value; ‘‘(VIII) any option to enter into any agree- of deposit, eligible bankers’ acceptances, se- ‘‘(III) any combination of agreements or ment or transaction referred to in this curities, mortgage loans, or interests as de- transactions referred to in this clause; clause; scribed above, at a date certain not later ‘‘(IV) any option to enter into any agree- ‘‘(IX) a master agreement that provides for than 1 year after such transfers or on de- ment or transaction referred to in this an agreement or transaction referred to in mand, against the transfer of funds, or any clause; subclause (I), (II), (III), (IV), (V), (VI), (VII), other similar agreement; ‘‘(V) a master agreement that provides for or (VIII), together with all supplements to ‘‘(II) does not include any repurchase obli- an agreement or transaction referred to in any such master agreement, without regard gation under a participation in a commercial subclause (I), (II), (III), or (IV), together with to whether the master agreement provides mortgage loan unless the Agency determines all supplements to any such master agree- for an agreement or transaction that is not by regulation, resolution, or order to include ment, without regard to whether the master a commodity contract under this clause, ex- any such participation within the meaning agreement contains an agreement or trans- cept that the master agreement shall be con- of such term; action that is not a swap agreement under sidered to be a commodity contract under ‘‘(III) means any combination of agree- this clause, except that the master agree- this clause only with respect to each agreements or transactions referred to in sub- ment shall be considered to be a swap agreement or transaction under the master agree- clauses (I) and (IV); ment under this clause only with respect to ment that is referred to in subclause (I), (II), ‘‘(IV) means any option to enter into any each agreement or transaction under the (III), (IV), (V), (VI), (VII), or (VIII); or agreement or transaction referred to in sub- master agreement that is referred to in sub- ‘‘(X) any security agreement or arrange- clause (I) or (III); clause (I), (II), (III), or (IV); and ment or other credit enhancement related to ‘‘(V) means a master agreement that pro- ‘‘(VI) any security agreement or arrange- any agreement or transaction referred to in vides for an agreement or transaction re- ment or other credit enhancement related to this clause, including any guarantee or reim- ferred to in subclause (I), (III), or (IV), to- any agreements or transactions referred to bursement obligation in connection with any gether with all supplements to any such in subclause (I), (II), (III), (IV), or (V), in- agreement or transaction referred to in this master agreement, without regard to wheth- cluding any guarantee or reimbursement ob- clause. er the master agreement provides for an ligation in connection with any agreement ‘‘(iv) FORWARD CONTRACT.—The term ‘for- agreement or transaction that is not a repur- or transaction referred to in any such sub- ward contract’ means— chase agreement under this clause, except clause. ‘‘(I) a contract (other than a commodity that the master agreement shall be consid- Such term is applicable for purposes of this contract) for the purchase, sale, or transfer ered to be a repurchase agreement under this subsection only and shall not be construed or of a commodity or any similar good, article, subclause only with respect to each agree- applied so as to challenge or affect the char- service, right, or interest which is presently ment or transaction under the master agree- acterization, definition, or treatment of any

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swap agreement under any other statute, whole or in part solely because of such par- ‘‘(C) BUSINESS DAY DEFINED.—For purposes regulation, or rule, including the Securities ty’s status as a nondefaulting party. of this paragraph, the term ‘business day’ Act of 1933, the Securities Exchange Act of ‘‘(9) TRANSFER OF QUALIFIED FINANCIAL CON- means any day other than any Saturday, 1934, the Public Utility Holding Company TRACTS.—In making any transfer of assets or Sunday, or any day on which either the New Act of 1935, the Trust Indenture Act of 1939, liabilities of a regulated entity in default York Stock Exchange or the Federal Reserve the Investment Company Act of 1940, the In- which includes any qualified financial con- Bank of New York is closed. vestment Advisers Act of 1940, the Securities tract, the conservator or receiver for such ‘‘(11) DISAFFIRMANCE OR REPUDIATION OF Investor Protection Act of 1970, the Com- regulated entity shall either— QUALIFIED FINANCIAL CONTRACTS.—In exer- modity Exchange Act, the Gramm-Leach- ‘‘(A) transfer to 1 person— cising the rights of disaffirmance or repudi- Bliley Act, and the Legal Certainty for Bank ‘‘(i) all qualified financial contracts be- ation of a conservator or receiver with re- Products Act of 2000. tween any person (or any affiliate of such spect to any qualified financial contract to ‘‘(vii) TREATMENT OF MASTER AGREEMENT person) and the regulated entity in default; which a regulated entity is a party, the con- ‘‘(ii) all claims of such person (or any affil- AS ONE AGREEMENT.—Any master agreement servator or receiver for such institution iate of such person) against such regulated for any contract or agreement described in shall either— entity under any such contract (other than any preceding clause of this subparagraph ‘‘(A) disaffirm or repudiate all qualified fi- any claim which, under the terms of any (or any master agreement for such master nancial contracts between— such contract, is subordinated to the claims agreement or agreements), together with all ‘‘(i) any person or any affiliate of such per- of general unsecured creditors of such regu- supplements to such master agreement, shall son; and be treated as a single agreement and a single lated entity); ‘‘(iii) all claims of such regulated entity ‘‘(ii) the regulated entity in default; or qualified financial contract. If a master ‘‘(B) disaffirm or repudiate none of the agreement contains provisions relating to against such person (or any affiliate of such person) under any such contract; and qualified financial contracts referred to in agreements or transactions that are not subparagraph (A) (with respect to such per- themselves qualified financial contracts, the ‘‘(iv) all property securing or any other son or any affiliate of such person). master agreement shall be deemed to be a credit enhancement for any contract de- ‘‘(12) CERTAIN SECURITY INTERESTS NOT qualified financial contract only with re- scribed in clause (i) or any claim described in AVOIDABLE.—No provision of this subsection spect to those transactions that are them- clause (ii) or (iii) under any such contract; or shall be construed as permitting the avoid- selves qualified financial contracts. ‘‘(B) transfer none of the financial con- ance of any legally enforceable or perfected ‘‘(viii) TRANSFER.—The term ‘transfer’ tracts, claims, or property referred to under means every mode, direct or indirect, abso- subparagraph (A) (with respect to such per- security interest in any of the assets of any lute or conditional, voluntary or involun- son and any affiliate of such person). regulated entity, except where such an inter- tary, of disposing of or parting with property ‘‘(10) NOTIFICATION OF TRANSFER.— est is taken in contemplation of the insol- or with an interest in property, including re- ‘‘(A) IN GENERAL.—If— vency of the regulated entity, or with the intention of title as a security interest and ‘‘(i) the conservator or receiver for a regu- tent to hinder, delay, or defraud the regu- foreclosure of the regulated entity’s equity lated entity in default makes any transfer of lated entity or the creditors of such regu- of redemption. the assets and liabilities of such regulated lated entity. ‘‘(E) CERTAIN PROTECTIONS IN EVENT OF AP- entity, and ‘‘(13) AUTHORITY TO ENFORCE CONTRACTS.— POINTMENT OF CONSERVATOR.—Notwith- ‘‘(ii) the transfer includes any qualified fi- ‘‘(A) IN GENERAL.—Notwithstanding any standing any other provision of this Act nancial contract, provision of a contract providing for termi- (other than paragraph (13) of this sub- the conservator or receiver shall notify any nation, default, acceleration, or exercise of section), any other Federal law, or the law of person who is a party to any such contract of rights upon, or solely by reason of, insol- any State, no person shall be stayed or pro- such transfer by 5:00 p.m. (eastern time) on vency or the appointment of a conservator or hibited from exercising— the business day following the date of the ap- receiver, the conservator or receiver may en- ‘‘(i) any right such person has to cause the pointment of the receiver in the case of a re- force any contract or regulated entity bond termination, liquidation, or acceleration of ceivership, or the business day following entered into by the regulated entity. any qualified financial contract with a regu- such transfer in the case of a conservator- ‘‘(B) CERTAIN RIGHTS NOT AFFECTED.—No lated entity in a conservatorship based upon ship. provision of this paragraph may be construed a default under such financial contract ‘‘(B) CERTAIN RIGHTS NOT ENFORCEABLE.— as impairing or affecting any right of the which is enforceable under applicable non- ‘‘(i) RECEIVERSHIP.—A person who is a conservator or receiver to enforce or recover insolvency law; party to a qualified financial contract with a under a director’s or officer’s liability insur- ‘‘(ii) any right under any security agree- regulated entity may not exercise any right ance contract or surety bond under other ap- ment or arrangement or other credit en- that such person has to terminate, liquidate, plicable law. hancement relating to one or more such or net such contract under paragraph (8)(A) ‘‘(C) CONSENT REQUIREMENT.— qualified financial contracts; or of this subsection or section 403 or 404 of the ‘‘(i) IN GENERAL.—Except as otherwise pro- ‘‘(iii) any right to offset or net out any ter- Federal Deposit Insurance Corporation Im- vided under this section, no person may exer- mination values, payment amounts, or other provement Act of 1991, solely by reason of or cise any right or power to terminate, accel- transfer obligations arising under or in con- incidental to the appointment of a receiver erate, or declare a default under any connection with such qualified financial con- for the regulated entity (or the insolvency or tract to which a regulated entity is a party, tracts. financial condition of the regulated entity or to obtain possession of or exercise control ‘‘(F) CLARIFICATION.—No provision of law for which the receiver has been appointed)— over any property of the regulated entity, or shall be construed as limiting the right or ‘‘(I) until 5:00 p.m. (eastern time) on the affect any contractual rights of the regu- power of the Agency, or authorizing any business day following the date of the ap- lated entity, without the consent of the con- court or agency to limit or delay, in any pointment of the receiver; or servator or receiver, as appropriate, for a pe- manner, the right or power of the Agency to ‘‘(II) after the person has received notice riod of— transfer any qualified financial contract in that the contract has been transferred pursu- ‘‘(I) 45 days after the date of appointment accordance with paragraphs (9) and (10) of ant to paragraph (9)(A). of a conservator; or this subsection or to disaffirm or repudiate ‘‘(ii) CONSERVATORSHIP.—A person who is a ‘‘(II) 90 days after the date of appointment any such contract in accordance with sub- party to a qualified financial contract with a of a receiver. section (d)(1) of this section. regulated entity may not exercise any right ‘‘(ii) EXCEPTIONS.—This paragraph shall— ‘‘(G) WALKAWAY CLAUSES NOT EFFECTIVE.— that such person has to terminate, liquidate, ‘‘(I) not apply to a director’s or officer’s li- ‘‘(i) IN GENERAL.—Notwithstanding the pro- or net such contract under paragraph (8)(E) visions of subparagraphs (A) and (E), and sec- of this subsection or section 403 or 404 of the ability insurance contract; tions 403 and 404 of the Federal Deposit In- Federal Deposit Insurance Corporation Im- ‘‘(II) not apply to the rights of parties to surance Corporation Improvement Act of provement Act of 1991, solely by reason of or any qualified financial contracts under sub- 1991, no walkaway clause shall be enforceable incidental to the appointment of a conser- section (d)(8); and in a qualified financial contract of a regu- vator for the regulated entity (or the insol- ‘‘(III) not be construed as permitting the lated entity in default. vency or financial condition of the regulated conservator or receiver to fail to comply ‘‘(ii) WALKAWAY CLAUSE DEFINED.—For pur- entity for which the conservator has been with otherwise enforceable provisions of poses of this subparagraph, the term appointed). such contracts. ‘walkaway clause’ means a provision in a ‘‘(iii) NOTICE.—For purposes of this para- ‘‘(14) SAVINGS CLAUSE.—The meanings of qualified financial contract that, after cal- graph, the Agency as receiver or conservator terms used in this subsection are applicable culation of a value of a party’s position or an of a regulated entity shall be deemed to have for purposes of this subsection only, and amount due to or from 1 of the parties in ac- notified a person who is a party to a quali- shall not be construed or applied so as to cordance with its terms upon termination, fied financial contract with such regulated challenge or affect the characterization, def- liquidation, or acceleration of the qualified entity if the Agency has taken steps reason- inition, or treatment of any similar terms financial contract, either does not create a ably calculated to provide notice to such per- under any other statute, regulation, or rule, payment obligation of a party or extin- son by the time specified in subparagraph including the Gramm-Leach-Bliley Act, the guishes a payment obligation of a party in (A). Legal Certainty for Bank Products Act of

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00210 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.133 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2577 2000, the securities laws (as that term is de- ject to the provisions of this subsection. The such regulated entity in default, or in danger fined in section 3(a)(47) of the Securities Ex- Director shall grant a temporary charter to in default, as the Agency may, in its discre- change Act of 1934), and the Commodity Ex- the limited-life regulated entity, and the tion, determine to be appropriate in accord- change Act. limited-life regulated entity shall operate ance with paragraph (1). ‘‘(15) EXCEPTION FOR FEDERAL RESERVE AND subject to that charter. ‘‘(iii) EFFECTIVE WITHOUT APPROVAL.—The FEDERAL HOME LOAN BANKS.—No provision of ‘‘(B) AUTHORITIES.—Upon the creation of a transfer of any assets or liabilities of a regu- this subsection shall apply with respect to— limited-life regulated entity under subpara- lated entity in default, or in danger of de- ‘‘(A) any extension of credit from any Fed- graph (A), the limited-life regulated entity fault, transferred to a limited-life regulated eral home loan bank or Federal Reserve may— entity shall be effective without any further Bank to any regulated entity; or ‘‘(i) assume such liabilities of the regu- approval under Federal or State law, assign- ‘‘(B) any security interest in the assets of lated entity that is in default or in danger of ment, or consent with respect thereto. the regulated entity securing any such ex- default as the Agency may, in its discretion, ‘‘(8) PROCEEDS.—To the extent that avail- tension of credit. determine to be appropriate, provided that able proceeds from the limited-life regulated ‘‘(e) VALUATION OF CLAIMS IN DEFAULT.— the liabilities assumed shall not exceed the entity exceed amounts required to pay obli- ‘‘(1) IN GENERAL.—Notwithstanding any amount of assets of the limited-life regu- gations, such proceeds may be paid to the other provision of Federal law or the law of lated entity; regulated entity in default, or in danger of any State, and regardless of the method ‘‘(ii) purchase such assets of the regulated default. which the Agency determines to utilize with entity that is in default, or in danger of de- ‘‘(9) POWERS.— respect to a regulated entity in default or in fault, as the Agency may, in its discretion, ‘‘(A) IN GENERAL.—Each limited-life regu- danger of default, including transactions au- determine to be appropriate; and lated entity created under this subsection thorized under subsection (i), this subsection ‘‘(iii) perform any other temporary func- shall have all corporate powers of, and be shall govern the rights of the creditors of tion which the Agency may, in its discretion, subject to the same provisions of law as, the such regulated entity. prescribe in accordance with this section. regulated entity in default or in danger of ‘‘(2) MAXIMUM LIABILITY.—The maximum ‘‘(2) CHARTER.— default to which it relates, except that— liability of the Agency, acting as receiver or ‘‘(A) CONDITIONS.—The Agency may grant a ‘‘(i) the Agency may— in any other capacity, to any person having temporary charter if the Agency determines ‘‘(I) remove the directors of a limited-life a claim against the receiver or the regulated that the continued operation of the regu- regulated entity; and entity for which such receiver is appointed lated entity in default or in danger of default ‘‘(II) fix the compensation of members of shall equal the lesser of— is in the best interest of the national econ- the board of directors and senior manage- ‘‘(A) the amount such claimant would have omy and the housing markets. ment, as determined by the Agency in its received if the Agency had liquidated the as- ‘‘(B) TREATMENT AS BEING IN DEFAULT FOR discretion, of a limited-life regulated entity; sets and liabilities of such regulated entity CERTAIN PURPOSES.—A limited-life regulated ‘‘(ii) the Agency may indemnify the rep- without exercising the authority of the entity shall be treated as a regulated entity resentatives for purposes of paragraph (1)(B), Agency under subsection (i) of this section; in default at such times and for such pur- and the directors, officers, employees, and or poses as the Agency may, in its discretion, agents of a limited-life regulated entity on ‘‘(B) the amount of proceeds realized from determine. such terms as the Agency determines to be ‘‘(C) MANAGEMENT.—A limited-life regu- appropriate; and the performance of contracts or sale of the lated entity, upon the granting of its char- ‘‘(iii) the board of directors of a limited- assets of the regulated entity. ter, shall be under the management of a life regulated entity— ‘‘(f) LIMITATION ON COURT ACTION.—Except board of directors consisting of not fewer ‘‘(I) shall elect a chairperson who may also as provided in this section or at the request than 5 nor more than 10 members appointed serve in the position of chief executive offi- of the Director, no court may take any ac- by the Agency. cer, except that such person shall not serve tion to restrain or affect the exercise of pow- ‘‘(D) BYLAWS.—The board of directors of a either as chairperson or as chief executive ers or functions of the Agency as a conser- limited-life regulated entity shall adopt such officer without the prior approval of the vator or a receiver. bylaws as may be approved by the Agency. Agency; and ‘‘(g) LIABILITY OF DIRECTORS AND OFFI- ‘‘(3) CAPITAL STOCK.—No capital stock need ‘‘(II) may appoint a chief executive officer CERS.— be paid into a limited-life regulated entity who is not also the chairperson, except that ‘‘(1) IN GENERAL.—A director or officer of a by the Agency. such person shall not serve as chief executive regulated entity may be held personally lia- ‘‘(4) INVESTMENTS.—Funds of a limited-life officer without the prior approval of the ble for monetary damages in any civil action regulated entity shall be kept on hand in Agency. by, on behalf of, or at the request or direc- cash, invested in obligations of the United ‘‘(B) STAY OF JUDICIAL ACTION.—Any judi- tion of the Agency, which action is pros- States or obligations guaranteed as to prin- cial action to which a limited-life regulated ecuted wholly or partially for the benefit of cipal and interest by the United States, or entity becomes a party by virtue of its ac- the Agency— deposited with the Agency, or any Federal quisition of any assets or assumption of any ‘‘(A) acting as conservator or receiver of Reserve bank. liabilities of a regulated entity in default such regulated entity, or ‘‘(5) EXEMPT STATUS.—Notwithstanding shall be stayed from further proceedings for ‘‘(B) acting based upon a suit, claim, or any other provision of Federal or State law, a period of up to 45 days at the request of the cause of action purchased from, assigned by, the limited-life regulated entity, its fran- limited-life regulated entity. Such period or otherwise conveyed by such receiver or chise, property, and income shall be exempt may be modified upon the consent of all par- conservator, from all taxation now or hereafter imposed ties. for gross negligence, including any similar by the United States, by any territory, de- ‘‘(10) OBTAINING OF CREDIT AND INCURRING conduct or conduct that demonstrates a pendency, or possession thereof, or by any OF DEBT.— greater disregard of a duty of care (than State, county, municipality, or local taxing ‘‘(A) IN GENERAL.—The limited-life regu- gross negligence) including intentional authority. lated entity may obtain unsecured credit and tortious conduct, as such terms are defined ‘‘(6) WINDING UP.— incur unsecured debt in the ordinary course and determined under applicable State law. ‘‘(A) IN GENERAL.—Subject to subparagraph of business. ‘‘(2) NO LIMITATION.—Nothing in this para- (B), unless Congress authorizes the sale of ‘‘(B) INABILITY TO OBTAIN CREDIT.—If the graph shall impair or affect any right of the the capital stock of the limited-life regu- limited-life regulated entity is unable to ob- Agency under other applicable law. lated entity, not later than 2 years after the tain unsecured credit the Director may au- ‘‘(h) DAMAGES.—In any proceeding related date of its organization, the Agency shall thorize the obtaining of credit or the incur- to any claim against a director, officer, em- wind up the affairs of the limited-life regu- ring of debt— ployee, agent, attorney, accountant, ap- lated entity. ‘‘(i) with priority over any or all adminis- praiser, or any other party employed by or ‘‘(B) EXTENSION.—The Director may, in the trative expenses; providing services to a regulated entity, re- discretion of the Director, extend the status ‘‘(ii) secured by a lien on property that is coverable damages determined to result from of the limited-life regulated entity for 3 ad- not otherwise subject to a lien; or the improvident or otherwise improper use ditional 1-year periods. ‘‘(iii) secured by a junior lien on property or investment of any assets of the regulated ‘‘(7) TRANSFER OF ASSETS AND LIABILITIES.— that is subject to a lien. entity shall include principal losses and ap- ‘‘(A) IN GENERAL.— ‘‘(C) LIMITATIONS.— propriate interest. ‘‘(i) TRANSFER OF ASSETS AND LIABILITIES.— ‘‘(i) IN GENERAL.—The Director, after no- ‘‘(i) LIMITED-LIFE REGULATED ENTITIES.— The Agency, as receiver, may transfer any tice and a hearing, may authorize the ob- ‘‘(1) ORGANIZATION.— assets and liabilities of a regulated entity in taining of credit or the incurring of debt se- ‘‘(A) PURPOSE.—If a regulated entity is in default, or in danger of default, to the lim- cured by a senior or equal lien on property default, or if the Agency anticipates that a ited-life regulated entity in accordance with that is subject to a lien (other than mort- regulated entity will default, the Agency paragraph (1). gages that collateralize the mortgage-backed may organize a limited-life regulated entity ‘‘(ii) SUBSEQUENT TRANSFERS.—At any time securities issued or guaranteed by the regu- with those powers and attributes of the regu- after a charter is transferred to a limited-life lated entity) only if— lated entity in default or in danger of default regulated entity, the Agency, as receiver, ‘‘(I) the limited-life regulated entity is un- that the Director determines necessary, sub- may transfer any assets and liabilities of able to obtain such credit otherwise; and

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00211 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.134 S03APPT1 ccoleman on PRODPC75 with SENATE S2578 CONGRESSIONAL RECORD — SENATE April 3, 2008 ‘‘(II) there is adequate protection of the in- thereon, shall be determined as of the period Subtitle D—Enforcement Actions terest of the holder of the lien on the prop- for which such tax is imposed. SEC. 161. CEASE-AND-DESIST PROCEEDINGS. erty which such senior or equal lien is pro- ‘‘(2) EXEMPTION FROM ATTACHMENT AND Section 1371 of the Housing and Commu- posed to be granted. LIENS.—No property of the Agency shall be nity Development Act of 1992 (12 U.S.C. 4631) ‘‘(ii) BURDEN OF PROOF.—In any hearing subject to levy, attachment, garnishment, is amended— under this subsection, the Director has the foreclosure, or sale without the consent of (1) by striking subsections (a) and (b) and burden of proof on the issue of adequate pro- the Agency, nor shall any involuntary lien inserting the following new subsections: tection. attach to the property of the Agency. ‘‘(a) ISSUANCE FOR UNSAFE OR UNSOUND ‘‘(D) EFFECT ON DEBTS AND LIENS.—The re- ‘‘(3) EXEMPTION FROM PENALTIES AND PRACTICES AND VIOLATIONS OF RULES OR versal or modification on appeal of an au- FINES.—The Agency shall not be liable for LAWS.—If, in the opinion of the Director, a thorization under this paragraph to obtain any amounts in the nature of penalties or regulated entity or any regulated entity-af- credit or incur debt, or of a grant under this fines, including those arising from the fail- filiated party is engaging or has engaged, or section of a priority or a lien, does not affect ure of any person to pay any real property, the Director has reasonable cause to believe the validity of any debt so incurred, or any personal property, probate, or recording tax that the regulated entity or any regulated priority or lien so granted, to an entity that or any recording or filing fees when due. entity-affiliated party is about to engage, in extended such credit in good faith, whether ‘‘(k) PROHIBITION OF CHARTER REVOCA- an unsafe or unsound practice in conducting or not such entity knew of the pendency of TION.—In no case may a receiver appointed the business of the regulated entity or is vio- the appeal, unless such authorization and pursuant to this section revoke, annul, or lating or has violated, or the Director has the incurring of such debt, or the granting of terminate the charter of a regulated enti- reasonable cause to believe that the regu- such priority or lien, were stayed pending ty.’’. lated entity or any regulated entity-affili- appeal. ated party is about to violate, a law, rule, or ‘‘(11) ISSUANCE OF PREFERRED DEBT.—A lim- (b) CONFORMING AMENDMENTS.— regulation, or any condition imposed in writ- ited-life regulated entity may, subject to the (1) HOUSING AND COMMUNITY DEVELOPMENT ing by the Director in connection with the approval of the Director and subject to such ACT OF 1992.—Subtitle B of title XIII of the granting of any application or other request terms and conditions as the Director may Housing and Community Development Act of by the regulated entity or any written agree- prescribe, issue notes, bonds, or other debt 1992 is amended by striking sections 1369 (12 ment entered into with the Director, the Di- obligations of a class to which all other debt U.S.C. 4619), 1369A (12 U.S.C. 4620), and 1369B rector may issue and serve upon the regu- obligations of the limited-life regulated enti- (12 U.S.C. 4621). lated entity or such party a notice of charges ty shall be subordinate in right and pay- (2) FEDERAL HOME LOAN BANKS.—Section 25 in respect thereof. The Director may not, ment. of the Federal Home Loan Bank Act (12 pursuant to this section, enforce compliance ‘‘(12) NO FEDERAL STATUS.— U.S.C. 1445) is amended to read as follows: with any housing goal established under sub- ‘‘(A) AGENCY STATUS.—A limited-life regu- ‘‘SEC. 25. SUCCESSION OF FEDERAL HOME LOAN part B of part 2 of subtitle A of this title, lated entity is not an agency, establishment, BANKS. with section 1336 or 1337 of this title, with or instrumentality of the United States. subsection (m) or (n) of section 309 of the ‘‘(B) EMPLOYEE STATUS.—Representatives ‘‘Each Federal Home Loan Bank shall have Federal National Mortgage Association for purposes of paragraph (1)(B), interim di- succession until it is voluntarily merged Charter Act (12 U.S.C. 1723a(m), (n)), with rectors, directors, officers, employees, or with another Bank under this Act, or until it subsection (e) or (f) of section 307 of the Fed- agents of a limited-life regulated entity are is merged, reorganized, rehabilitated, liq- eral Home Loan Mortgage Corporation Act not, solely by virtue of service in any such uidated, or otherwise wound up by the Direc- (12 U.S.C. 1456(e), (f)), or with paragraph (5) capacity, officers or employees of the United tor in accordance with the provisions of sec- of section 10(j) of the Federal Home Loan States. Any employee of the Agency or of tion 1367 of the Housing and Community De- Bank Act (12 U.S.C. 1430(j)). any Federal instrumentality who serves at velopment Act of 1992, or by further Act of ‘‘(b) ISSUANCE FOR UNSATISFACTORY RAT- the request of the Agency as a representative Congress.’’. ING.—If a regulated entity receives, in its for purposes of paragraph (1)(B), interim di- most recent report of examination, a less- SEC. 155. CONFORMING AMENDMENTS. rector, director, officer, employee, or agent than-satisfactory rating for asset quality, of a limited-life regulated entity shall not— Title XIII of the Housing and Community management, earnings, or liquidity, the Di- ‘‘(i) solely by virtue of service in any such Development Act of 1992, as amended by the rector may (if the deficiency is not cor- capacity lose any existing status as an offi- preceding provisions of this Division, is fur- rected) deem the regulated entity to be en- cer or employee of the United States for pur- ther amended— gaging in an unsafe or unsound practice for poses of title 5, United States Code, or any (1) in sections 1365 (12 U.S.C. 4615) through purposes of this subsection.’’; other provision of law; or 1369D (12 U.S.C. 4623), but not including sec- (2) in subsection (c)(2), by striking ‘‘enter- ‘‘(ii) receive any salary or benefits for serv- tion 1367 (12 U.S.C. 4617) as amended by sec- prise, executive officer, or director’’ and in- ice in any such capacity with respect to a tion 154 of this Division— serting ‘‘regulated entity or regulated enti- limited-life regulated entity in addition to (A) by striking ‘‘An enterprise’’ each place ty-affiliated party’’; and such salary or benefits as are obtained such term appears and inserting ‘‘A regu- (3) in subsection (d)— through employment with the Agency or lated entity’’; (A) in the matter preceding paragraph (1), such Federal instrumentality. (B) by striking ‘‘an enterprise’’ each place by striking ‘‘enterprise, executive officer, or ‘‘(13) ADDITIONAL POWERS.—In addition to such term appears and inserting ‘‘a regulated director’’ and inserting ‘‘regulated entity or any other powers granted under this sub- entity’’; and regulated entity-affiliated party’’; section, a limited-life regulated entity (C) by striking ‘‘the enterprise’’ each place (B) in paragraph (1)— may— such term appears and inserting ‘‘the regu- (i) by striking ‘‘an executive officer or a di- ‘‘(A) extend a maturity date or change in lated entity’’; rector’’ and inserting ‘‘a regulated entity af- an interest rate or other term of outstanding (2) in section 1366 (12 U.S.C. 4616)— filiated party’’; and securities; (A) in subsection (b)(7), by striking ‘‘sec- (ii) by inserting ‘‘(including reimburse- ‘‘(B) issue securities of the limited-life reg- tion 1369 (excluding subsection (a)(1) and ment of compensation under section 1318)’’ ulated entity, for cash, for property, for ex- (2))’’ and inserting ‘‘section 1367’’; and after ‘‘reimbursement’’; isting securities, or in exchange for claims or (B) in subsection (d), by striking ‘‘the en- (C) in paragraph (6), by striking ‘‘and’’ at interests, or for any other appropriate pur- terprises’’ and inserting ‘‘the regulated enti- the end; poses; and ties’’; (D) by redesignating paragraph (7) as para- ‘‘(C) take any other action not incon- (3) in section 1368(d) (12 U.S.C. 4618(d)), by graph (8); and sistent with this section. striking ‘‘Committee on Banking, Finance (E) by inserting after paragraph (6) the fol- ‘‘(j) OTHER EXEMPTIONS.—When acting as a and Urban Affairs’’ and inserting ‘‘Com- lowing new paragraph: receiver, the following provisions shall apply mittee on Financial Services’’; ‘‘(7) to effect an attachment on a regulated with respect to the Agency: (4) in section 1369C (12 U.S.C. 4622)— entity or regulated entity-affiliated party ‘‘(1) EXEMPTION FROM TAXATION.—The (A) in subsection (a)(4), by striking ‘‘ac- subject to an order under this section or sec- Agency, including its franchise, its capital, tivities (including existing and new pro- tion 1372; and’’. reserves, and surplus, and its income, shall grams)’’ and inserting ‘‘activities, services, SEC. 162. TEMPORARY CEASE-AND-DESIST PRO- be exempt from all taxation imposed by any undertakings, and offerings (including exist- CEEDINGS. State, country, municipality, or local taxing ing and new products (as such term is de- Section 1372 of the Housing and Commu- authority, except that any real property of fined in section 1321(f))’’; and nity Development Act of 1992 (12 U.S.C. 4632) the Agency shall be subject to State, terri- (B) in subsection (c), by striking ‘‘any en- is amended— torial, county, municipal, or local taxation terprise’’ and inserting ‘‘any regulated enti- (1) by striking subsection (a) and inserting to the same extent according to its value as ty’’; and the following new subsection: other real property is taxed, except that, (5) in subsections (a) and (d) of section ‘‘(a) GROUNDS FOR ISSUANCE.—Whenever notwithstanding the failure of any person to 1369D, by striking ‘‘section 1366 or 1367 or ac- the Director determines that the violation or challenge an assessment under State law of tion under section 1369)’’ each place such threatened violation or the unsafe or un- the value of such property, and the tax phrase appears and inserting ‘‘section 1367)’’. sound practice or practices specified in the

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00212 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.134 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2579 notice of charges served upon the regulated SEC. 164. ENFORCEMENT AND JURISDICTION. ‘‘(i) is part of a pattern of misconduct; entity or any regulated entity-affiliated Section 1375 of the Housing and Commu- ‘‘(ii) causes or is likely to cause more than party pursuant to section 1371(a), or the con- nity Development Act of 1992 (12 U.S.C. 4635) a minimal loss to such regulated entity; or tinuation thereof, is likely to cause insol- is amended— ‘‘(iii) results in pecuniary gain or other vency or significant dissipation of assets or (1) by striking subsection (a) and inserting benefit to such party, earnings of the regulated entity, or is likely the following new subsection: the regulated entity or regulated entity-af- to weaken the condition of the regulated en- ‘‘(a) ENFORCEMENT.—The Director may, in filiated party shall forfeit and pay a civil tity prior to the completion of the pro- the discretion of the Director, apply to the penalty of not more than $50,000 for each day ceedings conducted pursuant to sections 1371 United States District Court for the District during which such violation, practice, or and 1373, the Director may issue a temporary of Columbia, or the United States district breach continues. order requiring the regulated entity or such court within the jurisdiction of which the ‘‘(3) THIRD TIER.—Notwithstanding para- party to cease and desist from any such vio- headquarters of the regulated entity is lo- graphs (1) and (2), any regulated entity lation or practice and to take affirmative ac- cated, for the enforcement of any effective which, or any regulated entity-affiliated tion to prevent or remedy such insolvency, and outstanding notice or order issued under party who— dissipation, condition, or prejudice pending this subtitle or subtitle B, or request that ‘‘(A) knowingly— completion of such proceedings. Such order the Attorney General of the United States ‘‘(i) commits any violation or engages in may include any requirement authorized bring such an action. Such court shall have any conduct described in any subparagraph under section 1371(d).’’; jurisdiction and power to order and require of paragraph (1); (2) in subsection (b), by striking ‘‘enter- compliance with such notice or order.’’; and ‘‘(ii) engages in any unsafe or unsound prise, executive officer, or director’’ and in- (2) in subsection (b), by striking ‘‘or 1376’’ practice in conducting the affairs of such serting ‘‘regulated entity or regulated enti- and inserting ‘‘1376, or 1377’’. regulated entity; or ty-affiliated party’’; SEC. 165. CIVIL MONEY PENALTIES. ‘‘(iii) breaches any fiduciary duty; and (3) in subsection (d)— Section 1376 of the Housing and Commu- ‘‘(B) knowingly or recklessly causes a sub- (A) by striking ‘‘An enterprise, executive nity Development Act of 1992 (12 U.S.C. 4636) stantial loss to such regulated entity or a officer, or director’’ and inserting ‘‘A regu- is amended— substantial pecuniary gain or other benefit lated entity or regulated entity-affiliated (1) in subsection (a)— to such party by reason of such violation, party’’; and (A) in the matter preceding paragraph (1), practice, or breach, (B) by striking ‘‘the enterprise, executive by striking ‘‘, or any executive officer or di- shall forfeit and pay a civil penalty in an officer, or director’’ and inserting ‘‘the regu- rector’’ and inserting ‘‘or any regulated-enti- amount not to exceed the applicable max- lated entity or regulated entity-affiliated ty affiliated party’’; and imum amount determined under paragraph party’’; and (B) in paragraph (1)— (4) for each day during which such violation, (4) by striking subsection (e) and in insert- (i) by striking ‘‘the Federal National Mort- practice, or breach continues. ing the following new subsection: gage Association Charter Act, the Federal ‘‘(4) MAXIMUM AMOUNTS OF PENALTIES FOR ‘‘(e) ENFORCEMENT.—In the case of viola- Home Loan Mortgage Corporation Act’’ and ANY VIOLATION DESCRIBED IN PARAGRAPH (3).— tion or threatened violation of, or failure to inserting ‘‘any provision of any of the au- The maximum daily amount of any civil pen- obey, a temporary cease-and-desist order thorizing statutes’’; alty which may be assessed pursuant to issued pursuant to this section, the Director (ii) by striking ‘‘or Act’’ and inserting ‘‘or paragraph (3) for any violation, practice, or may apply to the United States District statute’’; breach described in such paragraph is— Court for the District of Columbia or the (iii) by striking ‘‘or subsection’’ and insert- ‘‘(A) in the case of any person other than a United States district court within the juris- ing ‘‘, subsection’’; and regulated entity, an amount not to exceed diction of which the headquarters of the reg- (iv) by inserting ‘‘, or paragraph (5) or (12) $2,000,000; and ulated entity is located, for an injunction to of section 10(j) of the Federal Home Loan ‘‘(B) in the case of any regulated entity, enforce such order, and, if the court deter- Bank Act’’ before the semicolon at the end; $2,000,000.’’; mines that there has been such violation or (2) by striking subsection (b) and inserting (3) in subsection (c)(1)(B), by striking ‘‘en- threatened violation or failure to obey, it the following new subsection: terprise, executive officer, or director’’ and shall be the duty of the court to issue such ‘‘(b) AMOUNT OF PENALTY.— inserting ‘‘regulated entity or regulated en- injunction.’’. ‘‘(1) FIRST TIER.—Any regulated entity tity-affiliated party’’; which, or any regulated entity-affiliated SEC. 163. PREJUDGMENT ATTACHMENT. (4) in subsection (d), by striking the first party who— sentence and inserting the following: ‘‘If a The Housing and Community Development ‘‘(A) violates any provision of this title, regulated entity or regulated entity-affili- Act of 1992 is amended by inserting after sec- any provision of any of the authorizing stat- ated party fails to comply with an order of tion 1375 (12 U.S.C. 4635) the following new utes, or any order, condition, rule, or regula- the Director imposing a civil money penalty section: tion under any such title or statute, except under this section, after the order is no ‘‘SEC. 1375A. PREJUDGMENT ATTACHMENT. that the Director may not, pursuant to this longer subject to review as provided under section, enforce compliance with any hous- subsection (c)(1) and section 1374, the Direc- ‘‘(a) IN GENERAL.—In any action brought ing goal established under subpart B of part tor may, in the discretion of the Director, pursuant to this title, or in actions brought 2 of subtitle A of this title, with section 1336 bring an action in the United States District in aid of, or to enforce an order in, any ad- or 1337 of this title, with subsection (m) or Court for the District of Columbia, or the ministrative or other civil action for money (n) of section 309 of the Federal National United States district court within the juris- damages, restitution, or civil money pen- Mortgage Association Charter Act (12 U.S.C. diction of which the headquarters of the reg- alties brought pursuant to this title, the 1723a(m), (n)), with subsection (e) or (f) of ulated entity is located, to obtain a mone- court may, upon application of the Director section 307 of the Federal Home Loan Mort- tary judgment against the regulated entity or Attorney General, as applicable, issue a gage Corporation Act (12 U.S.C. 1456(e), (f)), or regulated entity affiliated party and such restraining order that— or with paragraph (5) or (12) of section 10(j) other relief as may be available, or request ‘‘(1) prohibits any person subject to the of the Federal Home Loan Bank Act; that the Attorney General of the United proceeding from withdrawing, transferring, ‘‘(B) violates any final or temporary order States bring such an action.’’; and removing, dissipating, or disposing of any or notice issued pursuant to this title; (5) in subsection (g), by striking ‘‘sub- funds, assets or other property; and ‘‘(C) violates any condition imposed in section (b)(3)’’ and inserting ‘‘this section, ‘‘(2) appoints a person on a temporary basis writing by the Director in connection with unless authorized by the Director by rule, to administer the restraining order. the grant of any application or other request regulation, or order’’. ‘‘(b) STANDARD.— by such regulated entity; or SEC. 166. REMOVAL AND PROHIBITION AUTHOR- ‘‘(1) SHOWING.—Rule 65 of the Federal Rules ‘‘(D) violates any written agreement be- ITY. of Civil Procedure shall apply with respect to tween the regulated entity and the Director, (a) IN GENERAL.—Subtitle C of title XIII of any proceeding under subsection (a) without shall forfeit and pay a civil money penalty of the Housing and Community Development regard to the requirement of such rule that not more than $10,000 for each day during Act of 1992 is amended— the applicant show that the injury, loss, or which such violation continues. (1) by redesignating sections 1377, 1378, damage is irreparable and immediate. ‘‘(2) SECOND TIER.—Notwithstanding para- 1379, 1379A, and 1379B (12 U.S.C. 4637–41) as ‘‘(2) STATE PROCEEDING.—If, in the case of graph (1)— sections 1379, 1379A, 1379B, 1379C, and 1379D, any proceeding in a State court, the court ‘‘(A) if a regulated entity, or a regulated respectively; and determines that rules of civil procedure entity-affiliated party— (2) by inserting after section 1376 (12 U.S.C. available under the laws of such State pro- ‘‘(i) commits any violation described in 4636) the following new section: vide substantially similar protections to a any subparagraph of paragraph (1); ‘‘SEC. 1377. REMOVAL AND PROHIBITION AU- party’s right to due process as Rule 65 (as ‘‘(ii) recklessly engages in an unsafe or un- THORITY. modified with respect to such proceeding by sound practice in conducting the affairs of ‘‘(a) AUTHORITY TO ISSUE ORDER.—When- paragraph (1)), the relief sought under sub- such regulated entity; or ever the Director determines that— section (a) may be requested under the laws ‘‘(iii) breaches any fiduciary duty; and ‘‘(1) any regulated entity-affiliated party of such State.’’. ‘‘(B) the violation, practice, or breach— has, directly or indirectly—

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00213 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.134 S03APPT1 ccoleman on PRODPC75 with SENATE S2580 CONGRESSIONAL RECORD — SENATE April 3, 2008 ‘‘(A) violated— such action. Such hearing shall be fixed for trict court for the judicial district in which ‘‘(i) any law or regulation; a date not earlier than 30 days nor later than the headquarters of the regulated entity is ‘‘(ii) any cease-and-desist order which has 60 days after the date of service of such no- located, for a stay of such suspension and/or become final; tice, unless an earlier or a later date is set prohibition and any prohibition under sub- ‘‘(iii) any condition imposed in writing by by the Director at the request of (1) such section (b)(1)(B) pending the completion of the Director in connection with the grant of party, and for good cause shown, or (2) the the administrative proceedings pursuant to any application or other request by such reg- Attorney General of the United States. Un- the notice served upon such party under this ulated entity; or less such party shall appear at the hearing in section, and such court shall have jurisdic- ‘‘(iv) any written agreement between such person or by a duly authorized representation to stay such suspension and/or prohibi- regulated entity and the Director; tive, such party shall be deemed to have con- tion. ‘‘(B) engaged or participated in any unsafe sented to the issuance of an order of such re- ‘‘(h) SUSPENSION OR REMOVAL OF REGU- or unsound practice in connection with any moval or prohibition. In the event of such LATED ENTITY-AFFILIATED PARTY CHARGED regulated entity; or consent, or if upon the record made at any WITH FELONY.— ‘‘(C) committed or engaged in any act, such hearing the Director shall find that any ‘‘(1) SUSPENSION OR PROHIBITION.— omission, or practice which constitutes a of the grounds specified in such notice have ‘‘(A) IN GENERAL.—Whenever any regulated breach of such party’s fiduciary duty; been established, the Director may issue entity-affiliated party is charged in any in- ‘‘(2) by reason of the violation, practice, or such orders of suspension or removal from formation, indictment, or complaint, with breach described in any subparagraph of office, or prohibition from participation in the commission of or participation in a paragraph (1)— the conduct of the affairs of the regulated crime involving dishonesty or breach of trust ‘‘(A) such regulated entity has suffered or entity, as it may deem appropriate, together which is punishable by imprisonment for a will probably suffer financial loss or other with an order prohibiting compensation de- term exceeding one year under State or Fed- damage; or scribed in subsection (b)(1)(B). Any such eral law, the Director may, if continued serv- ‘‘(B) such party has received financial gain order shall become effective at the expira- ice or participation by such party may pose or other benefit by reason of such violation, tion of 30 days after service upon such regu- a threat to the regulated entity or impair practice, or breach; and lated entity and such party (except in the public confidence in the regulated entity, by ‘‘(3) such violation, practice, or breach— case of an order issued upon consent, which written notice served upon such party— ‘‘(A) involves personal dishonesty on the shall become effective at the time specified ‘‘(i) suspend such party from office or pro- part of such party; or therein). Such order shall remain effective hibit such party from further participation ‘‘(B) demonstrates willful or continuing and enforceable except to such extent as it is in any manner in the conduct of the affairs disregard by such party for the safety or stayed, modified, terminated, or set aside by of any regulated entity; and soundness of such regulated entity, the Di- action of the Director or a reviewing court. ‘‘(ii) prohibit the regulated entity from re- rector may serve upon such party a written ‘‘(d) PROHIBITION OF CERTAIN SPECIFIC AC- leasing to or on behalf of the regulated enti- notice of the Director’s intention to remove TIVITIES.—Any person subject to an order ty-affiliated party any compensation or such party from office or to prohibit any fur- issued under this section shall not— other payment of money or other thing of ther participation by such party, in any ‘‘(1) participate in any manner in the concurrent or potential value in connection manner, in the conduct of the affairs of any duct of the affairs of any regulated entity; with the period of any such suspension or regulated entity. ‘‘(2) solicit, procure, transfer, attempt to with any resignation, removal, retirement, ‘‘(b) SUSPENSION ORDER.— transfer, vote, or attempt to vote any proxy, or other termination of employment or of- ‘‘(1) SUSPENSION OR PROHIBITION AUTHOR- consent, or authorization with respect to fice of the party. ITY.—If the Director serves written notice any voting rights in any regulated entity; ‘‘(B) PROVISIONS APPLICABLE TO NOTICE.— under subsection (a) to any regulated entity- ‘‘(3) violate any voting agreement pre- ‘‘(i) COPY.—A copy of any notice under affiliated party of the Director’s intention to viously approved by the Director; or paragraph (1)(A) shall also be served upon issue an order under such subsection, the Di- ‘‘(4) vote for a director, or serve or act as the regulated entity. rector may— a regulated entity-affiliated party. ‘‘(ii) EFFECTIVE PERIOD.—A suspension or ‘‘(A) suspend such party from office or pro- ‘‘(e) INDUSTRY-WIDE PROHIBITION.— prohibition under subparagraph (A) shall re- hibit such party from further participation ‘‘(1) IN GENERAL.—Except as provided in main in effect until the information, indict- in any manner in the conduct of the affairs paragraph (2), any person who, pursuant to ment, or complaint referred to in such sub- of the regulated entity, if the Director— an order issued under this section, has been paragraph is finally disposed of or until ter- ‘‘(i) determines that such action is nec- removed or suspended from office in a regu- minated by the Director. essary for the protection of the regulated en- lated entity or prohibited from participating ‘‘(2) REMOVAL OR PROHIBITION.— tity; and in the conduct of the affairs of a regulated ‘‘(A) IN GENERAL.—If a judgment of convic- ‘‘(ii) serves such party with written notice entity may not, while such order is in effect, tion or an agreement to enter a pretrial di- of the suspension order; and continue or commence to hold any office in, version or other similar program is entered ‘‘(B) prohibit the regulated entity from re- or participate in any manner in the conduct against a regulated entity-affiliated party in leasing to or on behalf of the regulated enti- of the affairs of, any regulated entity. connection with a crime described in para- ty-affiliated party any compensation or ‘‘(2) EXCEPTION IF DIRECTOR PROVIDES WRIT- graph (1)(A), at such time as such judgment other payment of money or other thing of TEN CONSENT.—If, on or after the date an is not subject to further appellate review, current or potential value in connection order is issued under this section which re- the Director may, if continued service or with any resignation, removal, retirement, moves or suspends from office any regulated participation by such party may pose a or other termination of employment or of- entity-affiliated party or prohibits such threat to the regulated entity or impair pub- fice of the party. party from participating in the conduct of lic confidence in the regulated entity, issue ‘‘(2) EFFECTIVE PERIOD.—Any suspension the affairs of a regulated entity, such party and serve upon such party an order that— order issued under this subsection— receives the written consent of the Director, ‘‘(i) removes such party from office or pro- ‘‘(A) shall become effective upon service; the order shall, to the extent of such con- hibits such party from further participation and sent, cease to apply to such party with rein any manner in the conduct of the affairs ‘‘(B) unless a court issues a stay of such spect to the regulated entity described in the of the regulated entity without the prior order under subsection (g) of this section, written consent. If the Director grants such written consent of the Director; and shall remain in effect and enforceable until— a written consent, it shall publicly disclose ‘‘(ii) prohibits the regulated entity from ‘‘(i) the date the Director dismisses the such consent. releasing to or on behalf of the regulated en- charges contained in the notice served under ‘‘(3) VIOLATION OF PARAGRAPH (1) TREATED tity-affiliated party any compensation or subsection (a) with respect to such party; or AS VIOLATION OF ORDER.—Any violation of other payment of money or other thing of ‘‘(ii) the effective date of an order issued paragraph (1) by any person who is subject to current or potential value in connection by the Director to such party under sub- an order described in such subsection shall with the termination of employment or of- section (a). be treated as a violation of the order. fice of the party. ‘‘(3) COPY OF ORDER.—If the Director issues ‘‘(f) APPLICABILITY.—This section shall ‘‘(B) PROVISIONS APPLICABLE TO ORDER.— a suspension order under this subsection to only apply to a person who is an individual, ‘‘(i) COPY.—A copy of any order under para- any regulated entity-affiliated party, the Di- unless the Director specifically finds that it graph (2)(A) shall also be served upon the rector shall serve a copy of such order on should apply to a corporation, firm, or other regulated entity, whereupon the regulated any regulated entity with which such party business enterprise. entity-affiliated party who is subject to the is affiliated at the time such order is issued. ‘‘(g) STAY OF SUSPENSION AND PROHIBITION order (if a director or an officer) shall cease ‘‘(c) NOTICE, HEARING, AND ORDER.—A no- OF REGULATED ENTITY-AFFILIATED PARTY.— to be a director or officer of such regulated tice of intention to remove a regulated enti- Within 10 days after any regulated entity-af- entity. ty-affiliated party from office or to prohibit filiated party has been suspended from office ‘‘(ii) EFFECT OF ACQUITTAL.—A finding of such party from participating in the conduct and/or prohibited from participation in the not guilty or other disposition of the charge of the affairs of a regulated entity shall con- conduct of the affairs of a regulated entity shall not preclude the Director from insti- tain a statement of the facts constituting under this section, such party may apply to tuting proceedings after such finding or dis- grounds for such action, and shall fix a time the United States District Court for the Dis- position to remove such party from office or and place at which a hearing will be held on trict of Columbia, or the United States dis- to prohibit further participation in regulated

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00214 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.134 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2581 entity affairs, and to prohibit compensation cated) and shall issue and serve upon each ‘‘SEC. 1378. CRIMINAL PENALTY. or other payment of money or other thing of party to the proceeding an order or orders ‘‘Whoever, being subject to an order in ef- current or potential value in connection consistent with the provisions of this sec- fect under section 1377, without the prior with any resignation, removal, retirement, tion. Judicial review of any such order shall written approval of the Director, knowingly or other termination of employment or of- be exclusively as provided in this subsection. participates, directly or indirectly, in any fice of the party, pursuant to subsections (a), Unless a petition for review is timely filed in manner (including by engaging in an activity (d), or (e) of this section. a court of appeals of the United States, as specifically prohibited in such an order) in ‘‘(iii) EFFECTIVE PERIOD.—Any notice of provided in paragraph (2), and thereafter the conduct of the affairs of any regulated suspension or order of removal issued under until the record in the proceeding has been entity shall, notwithstanding section 3571 of this subsection shall remain effective and filed as so provided, the Director may at any title 18, be fined not more than $1,000,000, im- outstanding until the completion of any time, upon such notice and in such manner prisoned for not more than 5 years, or hearing or appeal authorized under para- as it shall deem proper, modify, terminate, both.’’. graph (4) unless terminated by the Director. or set aside any such order. Upon such filing SEC. 168. SUBPOENA AUTHORITY. ‘‘(3) AUTHORITY OF REMAINING BOARD MEM- of the record, the Director may modify, ter- Section 1379D(c) of the Housing and Com- BERS.—If at any time, because of the suspen- minate, or set aside any such order with per- munity Development Act of 1992 (12 U.S.C. sion of one or more directors pursuant to mission of the court. 4641(c)), as so redesignated by section 166(a)(1) of this Division, is further amend- this section, there shall be on the board of ‘‘(2) REVIEW OF ORDER.—Any party to any directors of a regulated entity less than a proceeding under paragraph (1) may obtain a ed— quorum of directors not so suspended, all review of any order served pursuant to para- (1) by striking ‘‘request the Attorney Gen- powers and functions vested in or exercisable graph (1) (other than an order issued with eral of the United States to’’ and inserting ‘‘, by such board shall vest in and be exer- the consent of the regulated entity or the in the discretion of the Director,’’; (2) by inserting ‘‘or request that the Attor- cisable by the director or directors on the regulated entity-affiliated party concerned, ney General of the United States bring such board not so suspended, until such time as or an order issued under subsection (h) of an action,’’ after ‘‘District of Columbia,’’; there shall be a quorum of the board of direc- this section) by the filing in the United and tors. In the event all of the directors of a States Court of Appeals for the District of (3) by striking ‘‘or may, under the direc- regulated entity are suspended pursuant to Columbia Circuit or court of appeals of the tion and control of the Attorney General, this section, the Director shall appoint per- United States for the circuit in which the bring such an action’’. sons to serve temporarily as directors in headquarters of the regulated entity is lo- their place and stead pending the termi- cated, within 30 days after the date of service SEC. 169. CONFORMING AMENDMENTS. Subtitle C of title XIII of the Housing and nation of such suspensions, or until such of such order, a written petition praying Community Development Act of 1992 (12 time as those who have been suspended cease that the order of the Director be modified, U.S.C. 4631 et seq.), as amended by the pre- to be directors of the regulated entity and terminated, or set aside. A copy of such peti- their respective successors take office. ceding provisions of this Division, is amend- tion shall be forthwith transmitted by the ed— ‘‘(4) HEARING REGARDING CONTINUED PAR- clerk of the court to the Director, and there- TICIPATION.—Within 30 days from service of (1) in section 1372(c)(1) (12 U.S.C. 4632(c)), upon the Director shall file in the court the by striking ‘‘that enterprise’’ and inserting any notice of suspension or order of removal record in the proceeding, as provided in sec- issued pursuant to paragraph (1) or (2) of this ‘‘that regulated entity’’; tion 2112 of title 28, United States Code. subsection, the regulated entity-affiliated (2) in section 1379 (12 U.S.C. 4637), as so re- Upon the filing of such petition, such court party concerned may request in writing an designated by section 166(a)(1) of this Divi- shall have jurisdiction, which upon the filing opportunity to appear before the Director to sion— of the record shall (except as provided in the show that the continued service to or par- (A) by inserting ‘‘, or of a regulated entity- last sentence of paragraph (1)) be exclusive, ticipation in the conduct of the affairs of the affiliated party,’’ before ‘‘shall not affect’’; to affirm, modify, terminate, or set aside, in regulated entity by such party does not, or is and whole or in part, the order of the Director. not likely to, pose a threat to the interests (B) by striking ‘‘such director or executive Review of such proceedings shall be had as of the regulated entity or threaten to impair officer’’ each place such term appears and in- provided in chapter 7 of title 5, United States public confidence in the regulated entity. serting ‘‘such director, executive officer, or Upon receipt of any such request, the Direc- Code. The judgment and decree of the court regulated entity-affiliated party’’; tor shall fix a time (not more than 30 days shall be final, except that the same shall be (3) in section 1379A (12 U.S.C. 4638), as so after receipt of such request, unless extended subject to review by the Supreme Court upon redesignated by section 166(a)(1) of this Divi- at the request of such party) and place at certiorari, as provided in section 1254 of title sion, by inserting ‘‘or against a regulated en- which such party may appear, personally or 28, United States Code. tity-affiliated party,’’ before ‘‘or impair’’; through counsel, before one or more mem- ‘‘(3) PROCEEDINGS NOT TREATED AS STAY.— (4) by striking ‘‘An enterprise’’ each place bers of the Director or designated employees The commencement of proceedings for judi- such term appears in such subtitle and in- of the Director to submit written materials cial review under paragraph (2) shall not, un- serting ‘‘A regulated entity’’; (or, at the discretion of the Director, oral less specifically ordered by the court, oper- (5) by striking ‘‘an enterprise’’ each place testimony) and oral argument. Within 60 ate as a stay of any order issued by the Di- such term appears in such subtitle and in- days of such hearing, the Director shall no- rector.’’. serting ‘‘a regulated entity’’; tify such party whether the suspension or (b) CONFORMING AMENDMENTS.— (6) by striking ‘‘the enterprise’’ each place prohibition from participation in any man- (1) 1992 ACT.—Section 1317(f) of the Housing such term appears in such subtitle and inner in the conduct of the affairs of the regu- and Community Development Act of 1992 (12 serting ‘‘the regulated entity’’; and lated entity will be continued, terminated, U.S.C. 4517(f)) is amended by striking ‘‘sec- (7) by striking ‘‘any enterprise’’ each place or otherwise modified, or whether the order tion 1379B’’ and inserting ‘‘section 1379D’’. such term appears in such subtitle and in- removing such party from office or prohib- (2) FANNIE MAE CHARTER ACT.—The second serting ‘‘any regulated entity’’. iting such party from further participation sentence of subsection (b) of section 308 of Subtitle E—General Provisions in any manner in the conduct of the affairs the Federal National Mortgage Association SEC. 181. BOARDS OF ENTERPRISES. of the regulated entity, and prohibiting com- Charter Act (12 U.S.C. 1723(b)) is amended by (a) FANNIE MAE.— pensation in connection with termination striking ‘‘The’’ and inserting ‘‘Except to the (1) IN GENERAL.—Section 308(b) of the Fed- will be rescinded or otherwise modified. Such extent that action under section 1377 of the eral National Mortgage Association Charter notification shall contain a statement of the Housing and Community Development Act of Act (12 U.S.C. 1723(b)) is amended— basis for the Director’s decision, if adverse to 1992 temporarily results in a lesser number, (A) in the first sentence, by striking such party. The Director is authorized to the’’. ‘‘eighteen persons, five of whom shall be ap- prescribe such rules as may be necessary to (3) FREDDIE MAC ACT.—The second sentence pointed annually by the President of the effectuate the purposes of this subsection. of subparagraph (A) of section 303(a)(2) of the United States, and the remainder of whom’’ ‘‘(i) HEARINGS AND JUDICIAL REVIEW.— Federal Home Loan Mortgage Corporation and inserting ‘‘13 persons, or such other ‘‘(1) VENUE AND PROCEDURE.—Any hearing Act (12 U.S.C. 1452(a)(2)(A)) is amended by number that the Director determines appro- provided for in this section shall be held in striking ‘‘The’’ and inserting ‘‘Except to the priate, who’’; the District of Columbia or in the Federal ju- extent that action under section 1377 of the (B) in the second sentence, by striking ‘‘ap- dicial district in which the headquarters of Housing and Community Development Act of pointed by the President’’; the regulated entity is located, unless the 1992 temporarily results in a lesser number, (C) in the third sentence— party afforded the hearing consents to an- the’’. (i) by striking ‘‘appointed or’’; and other place, and shall be conducted in ac- (ii) by striking ‘‘, except that any such ap- cordance with the provisions of chapter 5 of SEC. 167. CRIMINAL PENALTY. pointed member may be removed from office title 5, United States Code. After such hear- Subtitle C of title XIII of the Housing and by the President for good cause’’; ing, and within 90 days after the Director has Community Development Act of 1992 (12 (D) in the fourth sentence, by striking notified the parties that the case has been U.S.C. 4631 et seq.) is amended by inserting ‘‘elective’’; and submitted to it for final decision, it shall after section 1377 (as added by the preceding (E) by striking the fifth sentence. render its decision (which shall include find- provisions of this Division) the following new (2) TRANSITIONAL PROVISION.—The amend- ings of fact upon which its decision is predi- section: ments made by paragraph (1) shall not apply

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00215 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.134 S03APPT1 ccoleman on PRODPC75 with SENATE S2582 CONGRESSIONAL RECORD — SENATE April 3, 2008 to any appointed position of the board of di- ing and Urban Development’’ and inserting (B) establishing bank-like mechanisms for rectors of the Federal National Mortgage As- ‘‘Director of the Federal Housing Finance granting new charters for limited purposed sociation until the expiration of the annual Agency’’. mortgage securitization entities; term for such position during which the ef- (d) DEPARTMENT OF HOUSING AND URBAN (C) permitting the Director of the Federal fective date under Section 185 occurs. DEVELOPMENT ACT.—Section 5 of the Depart- Housing Finance Agency to grant new char- (b) FREDDIE MAC.— ment of Housing and Urban Development Act ters for limited purpose mortgage (1) IN GENERAL.—Section 303(a)(2) of the (42 U.S.C. 3534) is amended by striking sub- securitization entities, which shall include Federal Home Loan Mortgage Corporation section (d). analyzing the terms on which such charters Act (12 U.S.C. 1452(a)(2)) is amended— (e) TITLE 5, UNITED STATES CODE.— should be granted, including whether such (A) in subparagraph (A)— (1) DIRECTOR’S PAY RATE.—Section 5313 of charters should be sold, or whether such (i) in the first sentence, by striking ‘‘18 title 5, United States Code, is amended by charters and the charters for the Federal Na- persons, 5 of whom shall be appointed annu- striking the item relating to the Director of tional Mortgage Association and the Federal ally by the President of the United States the Office of Federal Housing Enterprise Home Loan Mortgage Corporation should be and the remainder of whom’’ and inserting Oversight, Department of Housing and Urban taxed or otherwise assessed a monetary ‘‘13 persons, or such other number as the Di- Development and inserting the following new price; and rector determines appropriate, who’’; and item: (D) such other alternatives as the Director (ii) in the second sentence, by striking ‘‘ap- ‘‘Director of the Federal Housing Finance considers appropriate; pointed by the President of the United Agency.’’. (2) examine all of the issues involved in States’’; (2) EXCLUSION FROM SENIOR EXECUTIVE making the transition to a completely pri- (B) in subparagraph (B)— SERVICE.—Section 3132(a)(1)(D) of title 5, vate secondary mortgage market system; (i) by striking ‘‘such or’’; and United States Code, is amended— (3) examine the technological advance- (ii) by striking ‘‘, except that any ap- (A) by striking ‘‘the Federal Housing Fi- ments the private sector has made in pro- pointed member may be removed from office nance Board,’’; and viding liquidity in the secondary mortgage by the President for good cause’’; and (B) by striking ‘‘the Office of Federal Hous- market and how such advancements have af- (C) in subparagraph (C)— ing Enterprise Oversight of the Department fected liquidity in the secondary mortgage (i) by striking the first sentence; and of Housing and Urban Development’’ and in- market; and (ii) by striking ‘‘elective’’. serting ‘‘the Federal Housing Finance Agen- (4) examine how taxpayers would be im- (2) TRANSITIONAL PROVISION.—The amend- cy’’. pacted by each alternative system, including ments made by paragraph (1) shall not apply (f) INSPECTOR GENERAL ACT OF 1978.—Sec- the complete privatization of the Federal to any appointed position of the board of dition 8G(a)(2) of the Inspector General Act of National Mortgage Association and the Fed- rectors of the Federal Home Loan Mortgage 1978 (5 U.S.C. App.) is amended by striking eral Home Loan Mortgage Corporation. Corporation until the expiration of the an- ‘‘Federal Housing Finance Board’’ and in- (c) REPORT.—The Director of the Federal serting ‘‘Federal Housing Finance Agency’’. nual term for such position during which the Housing Finance Agency shall submit a re- (g) FEDERAL DEPOSIT INSURANCE ACT.—Sec- effective date under Section 185 occurs. port to the Congress on the study not later tion 11(t)(2)(A) of the Federal Deposit Insur- than the expiration of the 24-month period SEC. 182. REPORT ON PORTFOLIO OPERATIONS, ance Act (12 U.S.C.1821(t)(2)(A)) is amended beginning on the effective date under section SAFETY AND SOUNDNESS, AND MIS- by adding at the end the following new SION OF ENTERPRISES. 185. clause: Not later than the expiration of the 12- SEC. 185. EFFECTIVE DATE. month period beginning on the effective date ‘‘(vii) The Federal Housing Finance Agen- Except as specifically provided otherwise under section 185, the Director of the Federal cy.’’. in this title, this title shall take effect on (h) 1997 EMERGENCY SUPPLEMENTAL APPRO- Housing Finance Agency shall submit a re- and the amendments made by this title shall PRIATIONS ACT.—Section 10001 of the 1997 port to the Congress which shall include— take effect on, and shall apply beginning on, Emergency Supplemental Appropriations the expiration of the 6-month period begin- (1) a description of the portfolio holdings of Act for Recovery From Natural Disasters, the enterprises (as such term is defined in ning on the date of the enactment of this and for Overseas Peacekeeping Efforts, In- Act. section 1303 of the Housing and Community cluding Those In Bosnia (42 U.S.C. 3548) is TITLE II—FEDERAL HOME LOAN BANKS Development Act of 1992 (12 U.S.C. 4502) in amended— mortgages (including whole loans and mort- (1) by striking ‘‘the Government National SEC. 201. DEFINITIONS. gage-backed securities), non-mortgages, and Mortgage Association, and the Office of Fed- Section 2 of the Federal Home Loan Bank other assets; eral Housing Enterprise Oversight’’ and in- Act (12 U.S.C. 1422) is amended— (2) a description of the risk implications serting ‘‘and the Government National Mort- (1) by striking paragraphs (1), (10), and (11); for the enterprises of such holdings and the gage Association’’; and (2) by redesignating paragraphs (2) through (9) as paragraphs (1) through (8), respec- consequent risk management undertaken by (2) by striking ‘‘, the Government National tively; the enterprises (including the use of deriva- Mortgage Association, or the Office of Fed- (3) by redesignating paragraphs (12) and tives for hedging purposes), compared with eral Housing Enterprise Oversight’’ and in- (13) as paragraphs (9) and (10), respectively; off-balance sheet liabilities of the enter- serting ‘‘or the Government National Mort- and prises (including mortgage-backed securities gage Association’’. (4) by adding at the end the following: guaranteed by the enterprises); (i) NATIONAL HOMEOWNERSHIP TRUST ACT.— (3) an analysis of portfolio holdings for Section 302(b)(4) of the Cranston-Gonzalez ‘‘(11) DIRECTOR.—The term ‘Director’ safety and soundness purposes; National Affordable Housing Act (42 U.S.C. means the Director of the Federal Housing (4) an assessment of whether portfolio 12851(b)(4)) is amended by striking ‘‘the Finance Agency. holdings fulfill the mission purposes of the chairperson of the Federal Housing Finance ‘‘(12) AGENCY.—The term ‘Agency’ means enterprises under the Federal National Mort- Board’’ and inserting ‘‘the Director of the the Federal Housing Finance Agency.’’. gage Association Charter Act and the Fed- Federal Housing Finance Agency’’. SEC. 202. DIRECTORS. eral Home Loan Mortgage Corporation Act; SEC. 184. STUDY OF ALTERNATIVE SECONDARY (a) ELECTION.—Section 7 of the Federal and MARKET SYSTEMS. Home Loan Bank Act (12 U.S.C. 1427) is (5) an analysis of the potential systemic (a) IN GENERAL.—The Director of the Fed- amended— risk implications for the enterprises, the eral Housing Finance Agency, in consulta- (1) by striking subsection (a) and inserting housing and capital markets, and the finan- tion with the Board of Governors of the Fed- the following: cial system of portfolio holdings, and wheth- eral Reserve System, the Secretary of the ‘‘(a) NUMBER; ELECTION; QUALIFICATIONS; er such holdings should be limited or reduced Treasury, and the Secretary of Housing and CONFLICTS OF INTEREST.— over time. Urban Development, shall conduct a com- ‘‘(1) IN GENERAL.—The management of each Federal Home Loan Bank shall be vested in SEC. 183. CONFORMING AND TECHNICAL AMEND- prehensive study of the effects on financial MENTS. and housing finance markets of alternatives a board of 13 directors, or such other number (a) 1992 ACT.—Title XIII of the Housing and to the current secondary market system for as the Director determines appropriate, each Community Development Act of 1992 is housing finance, taking into consideration of whom shall be a citizen of the United amended by striking section 1383 (12 U.S.C. changes in the structure of financial and States. All directors of a Bank who are not 1451 note). housing finance markets and institutions independent directors pursuant to paragraph (b) TITLE 18, UNITED STATES CODE.—Sec- since the creation of the Federal National (3) shall be elected by the members. tion 1905 of title 18, United States Code, is Mortgage Association and the Federal Home ‘‘(2) MEMBER DIRECTORS.—A majority of the amended by striking ‘‘Office of Federal Loan Mortgage Corporation. directors of each Bank shall be officers or di- Housing Enterprise Oversight’’ and inserting (b) CONTENTS.—The study under this sec- rectors of a member of such Bank that is lo- ‘‘Federal Housing Finance Agency’’. tion shall— cated in the district in which such Bank is (c) FLOOD DISASTER PROTECTION ACT OF (1) include, among the alternatives to the located. 1973.—Section 102(f)(3)(A) of the Flood Dis- current secondary market system analyzed— ‘‘(3) INDEPENDENT DIRECTORS.—At least aster Protection Act of 1973 (42 U.S.C. (A) repeal of the chartering Acts for the two-fifths of the directors of each Bank shall 4012a(f)(3)(A)) is amended by striking ‘‘Direc- Federal National Mortgage Association and be independent directors, who shall be ap- tor of the Office of Federal Housing Enter- the Federal Home Loan Mortgage Corpora- pointed by the Director of the Federal Hous- prise Oversight of the Department of Hous- tion; ing Finance Agency from a list of individuals

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00216 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.134 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2583 recommended by the Federal Housing Enter- (4) by striking ‘‘elective’’ each place such (2) in section 6 (12 U.S.C. 1426(b)(1))— prise Board. The Federal Housing Enterprise term appears (except in subsections (c), (e), (A) in subsection (b)(1), in the matter pre- Board may recommend individuals who are and (f)). ceding subparagraph (A), by striking ‘‘Fi- identified by the Board’s own independent (b) TERMS.— nance Board approval’’ and inserting ‘‘ap- process or included on a list of individuals (1) IN GENERAL.—Section 7(d) of the Federal proval by the Director’’; and recommended by the board of directors of Home Loan Bank Act (12 U.S.C. 1427(d)) is (B) in each of subsections (c)(4)(B) and the Bank involved, which shall be submitted amended— (d)(2), by striking ‘‘Finance Board regula- to the Federal Housing Enterprise Board by (A) in the first sentence, by striking ‘‘3 tions’’ each place that term appears and in- such board of directors. The number of indi- years’’ and inserting ‘‘4 years’’; and serting ‘‘regulations of the Director’’; viduals on any such list submitted by a (B) in the second sentence— (3) in section 8 (12 U.S.C. 1428), in the sec- (i) by striking ‘‘Federal Home Loan Bank Bank’s board of directors shall be equal to at tion heading, by striking ‘‘BY THE BOARD’’; System Modernization Act of 1999’’ and in- least two times the number of independent (4) in section 10(b) (12 U.S.C. 1430(b)), by serting ‘‘Federal Housing Finance Reform striking ‘‘by formal resolution’’; directorships to be filled. All independent di- Act of 2007’’; and (5) in section 10 (12 U.S.C. 1430), by adding rectors appointed shall meet the following (ii) by striking ‘‘1/3’’ and inserting ‘‘1/4’’. at the end the following new subsection: criteria: (2) SAVINGS PROVISION.—The amendments ‘‘(k) MONITORING AND ENFORCING COMPLI- ‘‘(A) IN GENERAL.—Each independent direc- made by paragraph (1) shall not apply to the ANCE WITH AFFORDABLE HOUSING AND COMMU- tor shall be a bona fide resident of the dis- term of office of any director of a Federal NITY INVESTMENT PROGRAM REQUIREMENTS.— trict in which such Bank is located. home loan bank who is serving as of the ef- The requirements under subsection (i) and (j) ‘‘(B) PUBLIC INTEREST DIRECTORS.—At least fective date of this title under section 211, that the Banks establish Community Invest- 2 of the independent directors under this including any director elected to fill a va- ment and Affordable Housing Programs, re- paragraph of each Bank shall be representa- cancy in any such office. spectively, and contribute to the Affordable tives chosen from organizations with more (c) CONTINUED SERVICE OF INDEPENDENT DI- Housing Program, shall be enforceable by than a 2-year history of representing con- RECTORS AFTER EXPIRATION OF TERM.—Sec- the Director with respect to the Banks in the sumer or community interests on banking tion 7(f)(2) of the Federal Home Loan Bank same manner and to the same extent as the services, credit needs, housing, community Act (12 U.S.C. 1427(f)(2)) is amended— housing goals under subpart B of part 2 of development, economic development, or fi- (1) in the second sentence, by striking ‘‘or subtitle A of title XIII of the Housing and nancial consumer protections. the term of such office expires, whichever oc- Community Development Act of 1992 (12 ‘‘(C) OTHER DIRECTORS.— curs first’’; U.S.C. 4561 et seq.) are enforceable under sec- ‘‘(i) QUALIFICATIONS.—Each independent di- (2) by adding at the end the following new tion 1336 of such Act with respect to the Fed- rector that is not a public interest director sentence: ‘‘An independent Bank director eral National Mortgage Association and the under subparagraph (B) shall have dem- may continue to serve as a director after the Federal Home Loan Mortgage Corporation.’’; onstrated knowledge of, or experience in, fi- expiration of the term of such director until (6) in section 11 (12 U.S.C. 1431)— nancial management, auditing and account- a successor is appointed.’’; (A) in subsection (b)— ing, risk management practices, derivatives, (3) in the paragraph heading, by striking (i) in the first sentence— project development, or organizational man- ‘‘APPOINTED’’ and inserting ‘‘INDEPENDENT’’; (I) by striking ‘‘The Board’’ and inserting agement, or such other knowledge or exper- and ‘‘The Office of Finance, as agent for the tise as the Director may provide by regula- (4) by striking ‘‘appointive’’ each place Banks,’’; and tion. such term appears and inserting ‘‘inde- (II) by striking ‘‘the Board’’ and inserting ‘‘such Office’’; and ‘‘(ii) CONSULTATION WITH BANKS.—In ap- pendent’’. (d) CONFORMING AMENDMENTS.—Section pointing other directors to serve on the (ii) in the second and fourth sentences, by 7(f)(3) of the Federal Home Loan Bank Act board of a Federal home loan bank, the Di- striking ‘‘the Board’’ each place such term (12 U.S.C. 1427(f)(3)) is amended— appears and inserting ‘‘the Office of Fi- rector of the Federal Housing Finance Agen- (1) in the paragraph heading, by striking nance’’; cy may consult with each Federal home loan ‘‘ELECTED’’ and inserting ‘‘MEMBER’’; and (B) in subsection (c)— bank about the knowledge, skills, and exper- (2) by striking ‘‘elective’’ each place such (i) by striking ‘‘the Board’’ the first place tise needed to assist the board in better ful- term appears in the first and third sentences such term appears and inserting ‘‘the Office filling its responsibilities. and inserting ‘‘member’’. of Finance, as agent for the Banks,’’; and ‘‘(D) CONFLICTS OF INTEREST.—Notwith- (e) COMPENSATION.—Subsection (i) of sec- (ii) by striking ‘‘the Board’’ the second standing subsection (f)(2), an independent dition 7 of the Federal Home Loan Bank Act place such term appears and inserting ‘‘such rector under this paragraph of a Bank may (12 U.S.C. 1427(i)) is amended to read as fol- Office’’; and not, during such director’s term of office, lows: (C) in subsection (f)— serve as an officer of any Federal Home Loan ‘‘(i) DIRECTORS’ COMPENSATION.— (i) by striking the two commas after ‘‘per- ‘‘(1) IN GENERAL.—Each Federal home loan Bank or as a director or officer of any mem- mit’’ and inserting ‘‘or’’; and bank may pay the directors on the board of ber of a Bank. (ii) by striking the comma after ‘‘require’’; directors for the bank reasonable and appro- ‘‘(E) COMMUNITY DEMOGRAPHICS.—In ap- (7) in section 15 (12 U.S.C. 1435), by insert- priate compensation for the time required of pointing independent directors of a Bank ing ‘‘or the Director’’ after ‘‘the Board’’; such directors, and reasonable and appro- pursuant to this paragraph, the Director (8) in section 18 (12 U.S.C. 1438), by striking priate expenses incurred by such directors, shall take into consideration the demo- subsection (b); in connection with service on the board of di- graphic makeup of the community most (9) in section 21 (12 U.S.C. 1441)— rectors, in accordance with resolutions served by the Affordable Housing Program of (A) in subsection (b)— adopted by the board of directors and subject the Bank pursuant to section 10(j).’’; (i) in paragraph (5), by striking ‘‘Chair- to the approval of the Director. (2) in the first sentence of subsection (b), person of the Federal Housing Finance ‘‘(2) ANNUAL REPORT BY THE BOARD.—The by striking ‘‘elective directorship’’ and in- Board’’ and inserting ‘‘Director’’; and Director shall include, in the annual report serting ‘‘member directorship established (ii) in the heading for paragraph (8), by submitted to the Congress pursuant to sec- pursuant to subsection (a)(2)’’; striking ‘‘FEDERAL HOUSING FINANCE BOARD’’ tion 1319B of the Federal Housing Enter- (3) in subsection (c)— and inserting ‘‘DIRECTOR’’; and prises Financial Safety and Soundness Act of (A) by striking ‘‘elective’’ each place such (B) in subsection (i), in the heading for 1992, information regarding the compensa- term appears and inserting ‘‘member’’, ex- paragraph (2), by striking ‘‘FEDERAL HOUSING tion and expenses paid by the Federal home cept— FINANCE BOARD’’ and inserting ‘‘DIRECTOR’’; loan banks to the directors on the boards of (i) in the second sentence, the second place (10) in section 23 (12 U.S.C. 1443), by strik- directors of the banks.’’. such term appears; and ing ‘‘Board of Directors of the Federal Hous- (ii) each place such term appears in the (f) TRANSITION RULE.—Any member of the board of directors of a Federal Home Loan ing Finance Board’’ and inserting ‘‘Direc- fifth sentence; tor’’; (B) in the first sentence, by inserting after Bank serving as of the effective date under section 211 may continue to serve as a mem- (11) by striking ‘‘the Board’’ each place ‘‘less than one’’ the following: ‘‘or two, as de- ber of such board of directors for the remain- such term appears in such Act (except in sec- termined by the board of directors of the ap- der of the term of such office as provided in tion 15 (12 U.S.C. 1435), section 21(f)(2) (12 propriate Federal home loan bank,’’; and section 7 of the Federal Home Loan Bank U.S.C. 1441(f)(2)), subsections (a), (k)(2)(B)(i), (C) in the second sentence— Act, as in effect before such effective date. and (n)(6)(C)(ii) of section 21A (12 U.S.C. (i) by inserting ‘‘(A) except as provided in SEC. 203. FEDERAL HOUSING FINANCE AGENCY 1441a), subsections (f)(2)(C), and (k)(7)(B)(ii) clause (B) of this sentence,’’ before ‘‘if at any OVERSIGHT OF FEDERAL HOME of section 21B (12 U.S.C. 1441b), and the first time’’; and LOAN BANKS. two places such term appears in section 22 (ii) by inserting before the period at the The Federal Home Loan Bank Act (12 (12 U.S.C. 1442)) and inserting ‘‘the Direc- end the following: ‘‘, and (B) clause (A) of U.S.C. 1421 et seq.), other than in provisions tor’’; this sentence shall not apply to the director- of that Act added or amended otherwise by (12) by striking ‘‘The Board’’ each place ships of any Federal home loan bank result- this Division, is amended— such term appears in such Act (except in sec- ing from the merger of any two or more such (1) by striking sections 2A and 2B (12 U.S.C. tions 7(e) (12 U.S.C. 1427(e)), and 11(b) (12 banks’’; and 1422a, 1422b); U.S.C. 1431(b)) and inserting ‘‘The Director’’;

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00217 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.135 S03APPT1 ccoleman on PRODPC75 with SENATE S2584 CONGRESSIONAL RECORD — SENATE April 3, 2008 (13) by striking ‘‘the Board’s’’ each place with respect to transactions in capital stock (B) by inserting ‘‘, and community develop- such term appears in such Act and inserting of the Banks. ment activities’’ before the period at the ‘‘the Director’s’’; (b) MEMBER EXEMPTION.—The members of end; (14) by striking ‘‘The Board’s’’ each place the Federal Home Loan Banks shall be ex- (2) in paragraph (3)(E), by inserting ‘‘or such term appears in such Act and inserting empt from compliance with sections 13(d), community development activities’’ after ‘‘The Director’s’’; 13(f), 13(g), 14(d), and 16 of the Securities Ex- ‘‘agriculture,’’; and (15) by striking ‘‘the Finance Board’’ each change Act of 1934 and related Securities and (3) in paragraph (6)— place such term appears in such Act and in- Exchange Commission regulations with re- (A) by striking ‘‘and’’; and serting ‘‘the Director’’; spect to their ownership of, or transactions (B) by inserting ‘‘, and ‘community devel- (16) by striking ‘‘Federal Housing Finance in, capital stock of the Federal Home Loan opment activities’’’ before ‘‘shall’’. Board’’ each place such term appears and in- Banks. SEC. 209. TECHNICAL AND CONFORMING AMEND- serting ‘‘Director’’; (c) EXEMPTED AND GOVERNMENT SECURI- MENTS. (17) in section 11(i) (12 U.S.C. 1431(i), by TIES.— (a) RIGHT TO FINANCIAL PRIVACY ACT OF striking ‘‘the Chairperson of’’; and (1) CAPITAL STOCK.—The capital stock 1978.—Section 1113(o) of the Right to Finan- (18) in section 21(e)(9) (12 U.S.C. 1441(e)(9)), issued by each of the Federal Home Loan cial Privacy Act of 1978 (12 U.S.C. 3413(o)) is by striking ‘‘Chairperson of the’’. Banks under section 6 of the Federal Home amended— SEC. 204. JOINT ACTIVITIES OF BANKS. Loan Bank Act are— (1) by striking ‘‘Federal Housing Finance Section 11 of the Federal Home Loan Bank (A) exempted securities within the mean- Board’’ and inserting ‘‘Federal Housing Fi- Act (12 U.S.C. 1431) is amended by adding at ing of section 3(a)(2) of the Securities Act of nance Agency’’; and the end the following new subsection: 1933; and (2) by striking ‘‘Federal Housing Finance ‘‘(l) JOINT ACTIVITIES.—Subject to the regu- (B) ‘‘exempted securities’’ within the Board’s’’ and inserting ‘‘Federal Housing Fi- lation of the Director, any two or more Fed- meaning of section 3(a)(12)(A) of the Securi- nance Agency’s’’. eral Home Loan Banks may establish a joint ties Exchange Act of 1934. (b) RIEGLE COMMUNITY DEVELOPMENT AND office for the purpose of performing func- (2) OTHER OBLIGATIONS.—The debentures, REGULATORY IMPROVEMENT ACT OF 1994.— tions for, or providing services to, the Banks bonds, and other obligations issued under Section 117(e) of the Riegle Community De- on a common or collective basis, or may re- section 11 of the Federal Home Loan Bank velopment and Regulatory Improvement Act quire that the Office of Finance perform such Act are— of 1994 (12 U.S.C. 4716(e)) is amended by strik- functions or services, but only if the Banks (A) exempted securities within the meaning ‘‘Federal Housing Finance Board’’ and inserting ‘‘Federal Housing Finance Agen- are otherwise authorized to perform such ing of section 3(a)(2) of the Securities Act of cy’’. functions or services individually.’’. 1933; (c) TITLE 18, UNITED STATES CODE.—Title SEC. 205. SHARING OF INFORMATION BETWEEN (B) ‘‘government securities’’ within the FEDERAL HOME LOAN BANKS. 18, United States Code, is amended by strik- meaning of section 3(a)(42) of the Securities ing ‘‘Federal Housing Finance Board’’ each (a) IN GENERAL.—The Federal Home Loan Exchange Act of 1934; Bank Act is amended by inserting after sec- place such term appears in each of sections (C) excluded from the definition of ‘‘gov- 212, 657, 1006, 1014, and inserting ‘‘Federal tion 20 (12 U.S.C. 1440) the following new sec- ernment securities broker’’ within section tion: Housing Finance Agency’’. 3(a)(43) of the Securities Exchange Act of (d) MARA ACT OF 1997.—Section 517(b)(4) of ‘‘SEC. 20A. SHARING OF INFORMATION BETWEEN 1934; the Multifamily Assisted Housing Reform FEDERAL HOME LOAN BANKS. (D) excluded from the definition of ‘‘gov- and Affordability Act of 1997 (42 U.S.C. 1437f ‘‘(a) REGULATORY AUTHORITY.—The Direc- ernment securities dealer’’ within section note) is amended by striking ‘‘Federal Hous- tor shall prescribe such regulations as may 3(a)(44) of the Securities Exchange Act of ing Finance Board’’ and inserting ‘‘Federal be necessary to ensure that each Federal 1934; and Housing Finance Agency’’. Home Loan Bank has access to information (E) ‘‘government securities’’ within the (e) TITLE 44, UNITED STATES CODE.—Section that the Bank needs to determine the nature meaning of section 2(a)(16) of the Investment 3502(5) of title 44, United States Code, is and extent of its joint and several liability. Company Act of 1940. amended by striking ‘‘Federal Housing Fi- ‘‘(b) NO WAIVER OF PRIVILEGE.—The Direc- (d) EXEMPTION FROM REPORTING REQUIRE- nance Board’’ and inserting ‘‘Federal Hous- tor shall not be deemed to have waived any MENTS.—The Federal Home Loan Banks shall ing Finance Agency’’. privilege applicable to any information con- be exempt from periodic reporting require- (f) ACCESS TO LOCAL TV ACT OF 2000.—Sec- cerning a Federal Home Loan Bank by trans- ments pertaining to— tion 1004(d)(2)(D)(iii) of the Launching Our ferring, or permitting the transfer of, that (1) the disclosure of related party trans- Communities’ Access to Local Television information to any other Federal Home Loan actions that occur in the ordinary course of Act of 2000 (47 U.S.C. 1103(d)(2)(D)(iii)) is Bank for the purpose of enabling the recipi- business of the Banks with their members; amended by striking ‘‘Office of Federal ent to evaluate the nature and extent of its and Housing Enterprise Oversight, the Federal joint and several liability.’’. (2) the disclosure of unregistered sales of Housing Finance Board’’ and inserting ‘‘Fed- (b) REGULATIONS.—The regulations re- equity securities. eral Housing Finance Agency’’. quired under the amendment made by sub- (g) SARBANES-OXLEY ACT OF 2002.—Section section (a) shall be issued in final form not (e) TENDER OFFERS.—The Securities and Exchange Commission’s rules relating to 105(b)(5)(B)(ii)(II) of the Sarbanes-Oxley Act later than 6 months after the effective date of 2002 (15 U.S.C. 7215(B)(5)(b)(ii)(II)) is under section 211 of this Division. tender offers shall not apply in connection with transactions in capital stock of the amended by inserting ‘‘and the Director of SEC. 206. REORGANIZATION OF BANKS AND VOL- Federal Home Loan Banks. the Federal Housing Finance Agency’’ after UNTARY MERGER. ‘‘Commission,’’. (f) REGULATIONS.—In issuing any final reg- Section 26 of the Federal Home Loan Bank SEC. 210. STUDY OF AFFORDABLE HOUSING PRO- Act (12 U.S.C. 1446) is amended— ulations to implement provisions of this section, the Securities and Exchange Commis- GRAM USE FOR LONG-TERM CARE (1) by inserting ‘‘(a) REORGANIZATION.—’’ FACILITIES. before ‘‘Whenever’’; and sion shall consider the distinctive character- The Comptroller General shall conduct a (2) by striking ‘‘liquidated or’’ each place istics of the Federal Home Loan Banks when study of the use of affordable housing pro- such phrase appears; evaluating the accounting treatment with grams of the Federal home loan banks under (3) by striking ‘‘liquidation or’’; and respect to the payment to Resolution Fund- section 10(j) of the Federal Home Loan Bank (4) by adding at the end the following new ing Corporation, the role of the combined fi- Act to determine how and the extent to subsection: nancial statements of the twelve Banks, the which such programs are used to assist long- ‘‘(b) VOLUNTARY MERGERS.—Any two or accounting classification of redeemable cap- term care facilities for low- and moderate-in- more Banks may, with the approval of the ital stock, and the accounting treatment re- come individuals, and the effectiveness and Director, and the approval of the boards of lated to the joint and several nature of the adequacy of such assistance in meeting the directors of the Banks involved, merge. The obligations of the Banks. needs of affected communities. The study Director shall promulgate regulations estab- SEC. 208. COMMUNITY FINANCIAL INSTITUTION shall examine the applicability of such use lishing the conditions and procedures for the MEMBERS. to the affordable housing programs required consideration and approval of any such vol- (a) TOTAL ASSET REQUIREMENT.—Paragraph to be established by the enterprises pursuant untary merger, including the procedures for (10) of section 2 of the Federal Home Loan to the amendment made by section 139 of Bank member approval.’’. Bank Act (12 U.S.C. 1422(10)), as so redesig- this Division. The Comptroller General shall SEC. 207. SECURITIES AND EXCHANGE COMMIS- nated by section 201(3) of this Division, is submit a report to the Director of the Fed- SION DISCLOSURE. amended by striking ‘‘$500,000,000’’ each eral Housing Finance Agency and the Con- (a) IN GENERAL.—The Federal Home Loan place such term appears and inserting gress regarding the results of the study not Banks shall be exempt from compliance ‘‘$1,000,000,000’’. later than the expiration of the 1-year period with— (b) USE OF ADVANCES FOR COMMUNITY DE- beginning on the date of the enactment of (1) sections 13(e), 14(a), 14(c), and 17A of the VELOPMENT ACTIVITIES.—Section 10(a) of the this Act. This section shall take effect on Securities Exchange Act of 1934 and related Federal Home Loan Bank Act (12 U.S.C. the date of the enactment of this Act. Commission regulations; and 1430(a)) is amended— SEC. 211. EFFECTIVE DATE. (2) section 15 of that Act and related Secu- (1) in paragraph (2)(B)— Except as specifically provided otherwise rities and Exchange Commission regulations (A) by striking ‘‘and’’; and in this title, this title shall take effect on

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00218 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.135 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2585 and the amendments made by this title shall ment Act of 1992, the Federal National Mort- combined work force is required, that reor- take effect on, and shall apply beginning on, gage Association Charter Act, the Federal ganization shall be deemed a major reorga- the expiration of the 6-month period begin- Home Loan Mortgage Corporation Act, or nization for purposes of affording affected ning on the date of the enactment of this any other provision of law applicable with employees retirement under section Act. respect to such Office; and 8336(d)(2) or 8414(b)(1)(B) of title 5, United TITLE III—TRANSFER OF FUNCTIONS, (B) existed on the day before the abolish- States Code. PERSONNEL, AND PROPERTY OF OFFICE ment under subsection (a) of this section. (e) EMPLOYEE BENEFIT PROGRAMS.—Any OF FEDERAL HOUSING ENTERPRISE (2) CONTINUATION OF SUITS.—No action or employee of the Office of Federal Housing OVERSIGHT, FEDERAL HOUSING FI- other proceeding commenced by or against Enterprise Oversight accepting employment NANCE BOARD, AND DEPARTMENT OF the Director of the Office of Federal Housing with the Director of the Federal Housing Fi- HOUSING AND URBAN DEVELOPMENT Enterprise Oversight in connection with nance Agency as a result of a transfer under functions that are transferred to the Direc- subsection (a) may retain for 12 months after Subtitle A—Office of Federal Housing the date such transfer occurs membership in Enterprise Oversight tor of the Federal Housing Finance Agency shall abate by reason of the enactment of any employee benefit program of the Federal SEC. 301. ABOLISHMENT OF OFHEO. this Act, except that the Director of the Fed- Housing Finance Agency or the Office of (a) IN GENERAL.—Effective at the end of eral Housing Finance Agency shall be sub- Federal Housing Enterprise Oversight, as ap- the 6-month period beginning on the date of stituted for the Director of the Office of Fed- plicable, including insurance, to which such the enactment of this Act, the Office of Fed- eral Housing Enterprise Oversight as a party employee belongs on the date of the abolish- eral Housing Enterprise Oversight of the De- to any such action or proceeding. ment under section 301(a) if— partment of Housing and Urban Development (1) the employee does not elect to give up and the positions of the Director and Deputy SEC. 302. CONTINUATION AND COORDINATION OF CERTAIN REGULATIONS. the benefit or membership in the program; Director of such Office are abolished. and (b) DISPOSITION OF AFFAIRS.—During the 6- All regulations, orders, determinations, and resolutions that— (2) the benefit or program is continued by month period beginning on the date of the the Director of the Federal Housing Finance enactment of this Act, the Director of the (1) were issued, made, prescribed, or allowed to become effective by— Agency, Office of Federal Housing Enterprise Over- The difference in the costs between the bene- sight shall, for the purpose of winding up the (A) the Office of Federal Housing Enter- prise Oversight; or fits which would have been provided by such affairs of the Office of Federal Housing En- agency and those provided by this section terprise Oversight and in addition to car- (B) a court of competent jurisdiction and that relate to functions transferred by this shall be paid by the Director of the Federal rying out its other responsibilities under Housing Finance Agency. If any employee law— subtitle; and (2) are in effect on the date of the abolish- elects to give up membership in a health in- (1) manage the employees of such Office surance program or the health insurance and provide for the payment of the comment under section 301(a) of this Division, shall remain in effect according to the terms program is not continued by such Director, pensation and benefits of any such employee the employee shall be permitted to select an which accrue before the effective date of the of such regulations, orders, determinations, and resolutions, and shall be enforceable by alternate Federal health insurance program transfer of such employee pursuant to sec- within 30 days of such election or notice, tion 303; and or against the Director of the Federal Hous- ing Finance Agency until modified, termi- without regard to any other regularly sched- (2) may take any other action necessary uled open season. for the purpose of winding up the affairs of nated, set aside, or superseded in accordance with applicable law by such Director, as the SEC. 304. TRANSFER OF PROPERTY AND FACILI- the Office. TIES. case may be, any court of competent juris- (c) STATUS OF EMPLOYEES BEFORE TRANS- Upon the abolishment under section 301(a), diction, or operation of law. FER.—The amendments made by title I and all property of the Office of Federal Housing the abolishment of the Office of Federal SEC. 303. TRANSFER AND RIGHTS OF EMPLOYEES Enterprise Oversight shall transfer to the Di- Housing Enterprise Oversight under sub- OF OFHEO. rector of the Federal Housing Finance Agen- section (a) of this section may not be con- (a) TRANSFER.—Each employee of the Of- cy. fice of Federal Housing Enterprise Oversight strued to affect the status of any employee Subtitle B—Federal Housing Finance Board of such Office as employees of an agency of shall be transferred to the Federal Housing SEC. 321. ABOLISHMENT OF THE FEDERAL HOUS- the United States for purposes of any other Finance Agency for employment no later than the date of the abolishment under sec- ING FINANCE BOARD. provision of law before the effective date of (a) IN GENERAL.—Effective at the end of tion 301(a) of this Division and such transfer the transfer of any such employee pursuant the 6-month period beginning on the date of shall be deemed a transfer of function for to section 303. enactment of this Act, the Federal Housing purposes of section 3503 of title 5, United (d) USE OF PROPERTY AND SERVICES.— Finance Board (in this title referred to as States Code. (1) PROPERTY.—The Director of the Federal the ‘‘Board’’) is abolished. UARANTEED OSITIONS Housing Finance Agency may use the prop- (b) G P .—Each em- (b) DISPOSITION OF AFFAIRS.—During the 6- erty of the Office of Federal Housing Enter- ployee transferred under subsection (a) shall month period beginning on the date of enact- prise Oversight to perform functions which be guaranteed a position with the same sta- ment of this Act, the Board, for the purpose have been transferred to the Director of the tus, tenure, grade, and pay as that held on of winding up the affairs of the Board and in Federal Housing Finance Agency for such the day immediately preceding the transfer. addition to carrying out its other respon- time as is reasonable to facilitate the or- Each such employee holding a permanent po- sibilities under law— derly transfer of functions transferred pursu- sition shall not be involuntarily separated or (1) shall manage the employees of such ant to any other provision of this Division or reduced in grade or compensation for 12 Board and provide for the payment of the any amendment made by this Division to months after the date of transfer, except for compensation and benefits of any such em- any other provision of law. cause or, if the employee is a temporary employee which accrue before the effective date (2) AGENCY SERVICES.—Any agency, depart- ployee, separated in accordance with the of the transfer of such employee under sec- ment, or other instrumentality of the United terms of the appointment. tion 323; and States, and any successor to any such agen- (c) APPOINTMENT AUTHORITY FOR EXCEPTED (2) may take any other action necessary cy, department, or instrumentality, which SERVICE EMPLOYEES.— for the purpose of winding up the affairs of was providing supporting services to the Of- (1) IN GENERAL.—In the case of employees the Board. fice of Federal Housing Enterprise Oversight occupying positions in the excepted service, (c) STATUS OF EMPLOYEES BEFORE TRANS- before the expiration of the period under sub- any appointment authority established pur- FER.—The amendments made by titles I and section (a) in connection with functions that suant to law or regulations of the Office of II and the abolishment of the Board under are transferred to the Director of the Federal Personnel Management for filling such posi- subsection (a) may not be construed to affect Housing Finance Agency shall— tions shall be transferred, subject to para- the status of any employee of such Board as (A) continue to provide such services, on a graph (2). employees of an agency of the United States reimbursable basis, until the transfer of such (2) DECLINE OF TRANSFER.—The Director of for purposes of any other provision of law be- functions is complete; and the Federal Housing Finance Agency may fore the effective date of the transfer of any (B) consult with any such agency to co- decline a transfer of authority under para- such employee under section 323. ordinate and facilitate a prompt and reason- graph (1) (and the employees appointed pur- (d) USE OF PROPERTY AND SERVICES.— able transition. suant thereto) to the extent that such au- (1) PROPERTY.—The Director of the Federal (e) SAVINGS PROVISIONS.— thority relates to positions excepted from Housing Finance Agency may use the prop- (1) EXISTING RIGHTS, DUTIES, AND OBLIGA- the competitive service because of their con- erty of the Board to perform functions which TIONS NOT AFFECTED.—Subsection (a) shall fidential, policy-making, policy-deter- have been transferred to the Director of the not affect the validity of any right, duty, or mining, or policy-advocating character. Federal Housing Finance Agency for such obligation of the United States, the Director (d) REORGANIZATION.—If the Director of the time as is reasonable to facilitate the or- of the Office of Federal Housing Enterprise Federal Housing Finance Agency deter- derly transfer of functions transferred under Oversight, or any other person, which— mines, after the end of the 1-year period be- any other provision of this Division or any (A) arises under or pursuant to the title ginning on the date of the abolishment under amendment made by this Division to any XIII of the Housing and Community Develop- section 301(a), that a reorganization of the other provision of law.

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(2) AGENCY SERVICES.—Any agency, depart- or the Senior Executive Service, any ap- and any other provisions of law, as in effect ment, or other instrumentality of the United pointment authority established under law before the date of the enactment of this Act, States, and any successor to any such agen- or by regulations of the Office of Personnel but not including any such functions, duties, cy, department, or instrumentality, which Management for filling such positions shall and activities of the Director of the Office of was providing supporting services to the be transferred, subject to paragraph (2). Federal Housing Enterprise Oversight of the Board before the expiration of the period (2) DECLINE OF TRANSFER.—The Director of Department of Housing and Urban Develop- under subsection (a) in connection with func- the Federal Housing Finance Agency may ment and such Office; and tions that are transferred to the Director of decline a transfer of authority under para- (B) the employees of the Department of the Federal Housing Finance Agency shall— graph (1) to the extent that such authority Housing and Urban Development necessary (A) continue to provide such services, on a relates to positions excepted from the com- to perform such functions, duties, and activi- reimbursable basis, until the transfer of such petitive service because of their confidential, ties. functions is complete; and policymaking, policy-determining, or policy- (2) ENTERPRISE-RELATED FUNCTIONS.—For (B) consult with any such agency to co- advocating character, and noncareer posi- purposes of this subtitle, the term ‘‘enter- ordinate and facilitate a prompt and reason- tions in the Senior Executive Service (within prise-related functions of the Department’’ able transition. the meaning of section 3132(a)(7) of title 5, means the functions, duties, and activities of (e) SAVINGS PROVISIONS.— United States Code). the Department of Housing and Urban Devel- (1) EXISTING RIGHTS, DUTIES, AND OBLIGA- (d) REORGANIZATION.—If the Director of the opment determined under paragraph (1)(A). TIONS NOT AFFECTED.—Subsection (a) shall Federal Housing Finance Agency deter- (3) ENTERPRISE-RELATED EMPLOYEES.—For not affect the validity of any right, duty, or mines, after the end of the 1-year period be- purposes of this subtitle, the term ‘‘enter- obligation of the United States, a member of ginning on the effective date of the abolish- prise-related employees of the Department’’ the Board, or any other person, which— ment under section 321(a), that a reorganiza- means the employees of the Department of (A) arises under the Federal Home Loan tion of the combined workforce is required, Housing and Urban Development determined Bank Act or any other provision of law ap- that reorganization shall be deemed a major under paragraph (1)(B). plicable with respect to such Board; and reorganization for purposes of affording af- (c) DISPOSITION OF AFFAIRS.—During the 6- (B) existed on the day before the effective fected employees retirement under section month period beginning on the date of enact- date of the abolishment under subsection (a). 8336(d)(2) or 8414(b)(1)(B) of title 5, United ment of this Act, the Secretary of Housing (2) CONTINUATION OF SUITS.—No action or States Code. and Urban Development (in this title re- other proceeding commenced by or against (e) EMPLOYEE BENEFIT PROGRAMS.— ferred to as the ‘‘Secretary’’), for the purpose the Board in connection with functions that (1) IN GENERAL.—Any employee of the of winding up the affairs of the Secretary re- are transferred to the Director of the Federal Board accepting employment with the Fed- garding the enterprise-related functions of Housing Finance Agency shall abate by rea- eral Housing Finance Agency as a result of a the Department of Housing and Urban Devel- son of the enactment of this Act, except that transfer under subsection (a) may retain for opment (in this title referred to as the ‘‘De- the Director of the Federal Housing Finance 12 months after the date on which such partment’’) and in addition to carrying out Agency shall be substituted for the Board or transfer occurs membership in any employee the Secretary’s other responsibilities under any member thereof as a party to any such benefit program of the Federal Housing Fi- law regarding such functions— action or proceeding. nance Agency or the Board, as applicable, in- (1) shall manage the enterprise-related em- SEC. 322. CONTINUATION AND COORDINATION OF cluding insurance, to which such employee ployees of the Department and provide for CERTAIN REGULATIONS. belongs on the effective date of the abolish- the payment of the compensation and bene- (a) IN GENERAL.—All regulations, orders, ment under section 321(a) if— fits of any such employee which accrue be- determinations, and resolutions described (A) the employee does not elect to give up fore the effective date of the transfer of any under subsection (b) shall remain in effect the benefit or membership in the program; such employee under section 343; and according to the terms of such regulations, and (2) may take any other action necessary orders, determinations, and resolutions, and (B) the benefit or program is continued by for the purpose of winding up the enterprise- shall be enforceable by or against the Direc- the Director of the Federal Housing Finance related functions of the Department. tor of the Federal Housing Finance Agency Agency. (d) STATUS OF EMPLOYEES BEFORE TRANS- until modified, terminated, set aside, or su- (2) COST DIFFERENTIAL.—The difference in FER.—The amendments made by titles I and perseded in accordance with applicable law the costs between the benefits which would II and the termination of the enterprise-re- by such Director, any court of competent ju- have been provided by the Board and those lated functions of the Department under sub- risdiction, or operation of law. provided by this section shall be paid by the section (b) may not be construed to affect (b) APPLICABILITY.—A regulation, order, Director of the Federal Housing Finance the status of any employee of the Depart- determination, or resolution is described Agency. If any employee elects to give up ment as employees of an agency of the under this subsection if it— membership in a health insurance program United States for purposes of any other pro- (1) was issued, made, prescribed, or allowed or the health insurance program is not con- vision of law before the effective date of the to become effective by— tinued by such Director, the employee shall transfer of any such employee under section (A) the Board; or be permitted to select an alternate Federal 343. (B) a court of competent jurisdiction and health insurance program within 30 days (e) USE OF PROPERTY AND SERVICES.— relates to functions transferred by this sub- after such election or notice, without regard (1) PROPERTY.—The Director of the Federal title; and to any other regularly scheduled open sea- Housing Finance Agency may use the prop- (2) is in effect on the effective date of the son. erty of the Secretary to perform functions abolishment under section 321(a). SEC. 324. TRANSFER OF PROPERTY AND FACILI- which have been transferred to the Director SEC. 323. TRANSFER AND RIGHTS OF EMPLOYEES TIES. of the Federal Housing Finance Agency for OF THE FEDERAL HOUSING FI- Upon the effective date of the abolishment such time as is reasonable to facilitate the NANCE BOARD. under section 321(a), all property of the (a) TRANSFER.—Each employee of the orderly transfer of functions transferred Board shall transfer to the Director of the Board shall be transferred to the Federal under any other provision of this Division or Federal Housing Finance Agency. Housing Finance Agency for employment not any amendment made by this Division to later than the effective date of the abolish- Subtitle C—Department of Housing and any other provision of law. ment under section 321(a), and such transfer Urban Development (2) AGENCY SERVICES.—Any agency, depart- shall be deemed a transfer of function for SEC. 341. TERMINATION OF ENTERPRISE-RE- ment, or other instrumentality of the United purposes of section 3503 of title 5, United LATED FUNCTIONS. States, and any successor to any such agen- States Code. (a) TERMINATION DATE.—For purposes of cy, department, or instrumentality, which (b) GUARANTEED POSITIONS.—Each em- this subtitle, the term ‘‘termination date’’ was providing supporting services to the Sec- ployee transferred under subsection (a) shall means the date that occurs 6 months after retary regarding enterprise-related functions be guaranteed a position with the same sta- the date of the enactment of this Act. of the Department before the termination tus, tenure, grade, and pay as that held on (b) DETERMINATION OF TRANSFERRED FUNC- date under subsection (a) in connection with the day immediately preceding the transfer. TIONS AND EMPLOYEES.— such functions that are transferred to the Each such employee holding a permanent po- (1) IN GENERAL.—Not later than the expira- Director of the Federal Housing Finance sition shall not be involuntarily separated or tion of the 3-month period beginning on the Agency shall— reduced in grade or compensation for 12 date of the enactment of this Act, the Sec- (A) continue to provide such services, on a months after the date of transfer, except for retary, in consultation with the Director of reimbursable basis, until the transfer of such cause or, if the employee is a temporary em- the Office of Federal Housing Enterprise functions is complete; and ployee, separated in accordance with the Oversight, shall determine— (B) consult with any such agency to co- terms of the appointment. (A) the functions, duties, and activities of ordinate and facilitate a prompt and reason- (c) APPOINTMENT AUTHORITY FOR EXCEPTED the Secretary of Housing and Urban Develop- able transition. AND SENIOR EXECUTIVE SERVICE EMPLOY- ment regarding oversight or regulation of (f) SAVINGS PROVISIONS.— EES.— the enterprises under or pursuant to the au- (1) EXISTING RIGHTS, DUTIES, AND OBLIGA- (1) IN GENERAL.—In the case of employees thorizing statutes, title XIII of the Housing TIONS NOT AFFECTED.—Subsection (a) shall occupying positions in the excepted service and Community Development Act of 1992, not affect the validity of any right, duty, or

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00220 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.135 S03APPT1 ccoleman on PRODPC75 with SENATE April 3, 2008 CONGRESSIONAL RECORD — SENATE S2587 obligation of the United States, the Sec- (c) APPOINTMENT AUTHORITY FOR EXCEPTED mittee on Armed Services be author- retary, or any other person, which— AND SENIOR EXECUTIVE SERVICE EMPLOY- ized to meet during the session of the (A) arises under the authorizing statutes, EES.— Senate on Thursday, April 3, 2008, at title XIII of the Housing and Community De- (1) IN GENERAL.—In the case of employees 9:30 a.m., in open session to consider velopment Act of 1992, or any other provision occupying positions in the excepted service of law applicable with respect to the Sec- or the Senior Executive Service, any ap- pending nominations. retary, in connection with the enterprise-re- pointment authority established under law The PRESIDING OFFICER. Without lated functions of the Department; and or by regulations of the Office of Personnel objection, it is so ordered. (B) existed on the day before the termi- Management for filling such positions shall COMMITTEE ON BANKING, HOUSING, AND URBAN nation date under subsection (a). be transferred, subject to paragraph (2). AFFAIRS (2) CONTINUATION OF SUITS.—No action or (2) DECLINE OF TRANSFER.—The Director of Mr. DURBIN. Mr. President, I ask other proceeding commenced by or against the Federal Housing Finance Agency may unanimous consent that the Com- the Secretary in connection with the enter- decline a transfer of authority under para- prise-related functions of the Department graph (1) (and the employees appointed pur- mittee on Banking, Housing, and shall abate by reason of the enactment of suant thereto) to the extent that such au- Urban Affairs be authorized to meet this Act, except that the Director of the Fed- thority relates to positions excepted from during the session of the Senate on eral Housing Finance Agency shall be sub- the competitive service because of their con- April 3, 2008, at 10:00 A.M., to conduct a stituted for the Secretary or any member fidential, policymaking, policy-determining, hearing entitled ‘‘turmoil in U.S. cred- thereof as a party to any such action or pro- or policy-advocating character, and non- it markets: examining the recent ac- ceeding. career positions in the Senior Executive tions of Federal Financial Regulators.’’ SEC. 342. CONTINUATION AND COORDINATION OF Service (within the meaning of section The PRESIDING OFFICER. Without CERTAIN REGULATIONS. 3132(a)(7) of title 5, United States Code). objection, it is so ordered. (a) IN GENERAL.—All regulations, orders, (d) REORGANIZATION.—If the Director of the and determinations described in subsection Federal Housing Finance Agency deter- COMMITTEE ON COMMERCE, SCIENCE, AND (b) shall remain in effect according to the mines, after the end of the 1-year period be- TRANSPORTATION terms of such regulations, orders, determina- ginning on the termination date under sec- Mr. DURBIN. Mr. President, I ask tions, and resolutions, and shall be enforce- tion 341(a), that a reorganization of the com- unanimous consent that the Com- able by or against the Director of the Fed- bined workforce is required, that reorganiza- mittee on Commerce, Science, and eral Housing Finance Agency until modified, tion shall be deemed a major reorganization Transportation be authorized to meet terminated, set aside, or superseded in ac- for purposes of affording affected employees during the session of the Senate on retirement under section 8336(d)(2) or cordance with applicable law by such Direc- Thursday, April 3, 2008, at 10 a.m., in tor, any court of competent jurisdiction, or 8414(b)(1)(B) of title 5, United States Code. operation of law. (e) EMPLOYEE BENEFIT PROGRAMS.— Room 253 of the Russell Senate Office (b) APPLICABILITY.—A regulation, order, or (1) IN GENERAL.—Any enterprise-related Building. determination is described under this sub- employee of the Department accepting em- The PRESIDING OFFICER. Without section if it— ployment with the Federal Housing Finance objection, it is so ordered. (1) was issued, made, prescribed, or allowed Agency as a result of a transfer under sub- COMMITTEE ON ENERGY AND NATIONAL to become effective by— section (a) may retain for 12 months after RESOURCES (A) the Secretary; or the date on which such transfer occurs mem- Mr. DURBIN. Mr. President, I ask bership in any employee benefit program of (B) a court of competent jurisdiction and unanimous consent that the Com- that relate to the enterprise-related func- the Federal Housing Finance Agency or the tions of the Department; and Department, as applicable, including insur- mittee on Energy and Natural Re- (2) is in effect on the termination date ance, to which such employee belongs on the sources be authorized to meet during under section 341(a). termination date under section 341(a) if— the session of the Senate to conduct a SEC. 343. TRANSFER AND RIGHTS OF EMPLOYEES (A) the employee does not elect to give up hearing on Thursday, April 3, 2008, at OF DEPARTMENT OF HOUSING AND the benefit or membership in the program; 9:30 a.m., in room SD–366 of the Dirk- URBAN DEVELOPMENT. and sen Senate Office Building. (a) TRANSFER.— (B) the benefit or program is continued by The PRESIDING OFFICER. Without the Director of the Federal Housing Finance (1) IN GENERAL.—Except as provided in objection, it is so ordered. paragraph (2), each enterprise-related em- Agency. ployee of the Department shall be trans- (2) COST DIFFERENTIAL.—The difference in COMMITTEE ON ENVIRONMENT AND PUBLIC ferred to the Federal Housing Finance Agen- the costs between the benefits which would WORKS cy for employment not later than the termi- have been provided by the Department and Mr. DURBIN. Mr. President, I ask nation date under section 341(a) and such those provided by this section shall be paid unanimous consent that the Com- transfer shall be deemed a transfer of func- by the Director of the Federal Housing Fi- mittee on Environment and Public tion for purposes of section 3503 of title 5, nance Agency. If any employee elects to give Works be authorized to meet during United States Code. up membership in a health insurance program or the health insurance program is not the session of the Senate on Thursday, (2) AUTHORITY TO DECLINE.—An enterprise- April 3, 2008 at 10 a.m. in room 406 of related employee of the Department may, in continued by such Director, the employee the discretion of the employee, decline shall be permitted to select an alternate the Dirksen Senate Office Building to transfer under paragraph (1) to a position in Federal health insurance program within 30 hold a hearing entitled, ‘‘Examining the Federal Housing Finance Agency and days after such election or notice, without Strategies to Reduce Greenhouse Gas shall be guaranteed a position in the Depart- regard to any other regularly scheduled open Emissions at U.S. Colleges and Univer- ment with the same status, tenure, grade, season. sities.’’ and pay as that held on the day immediately SEC. 344. TRANSFER OF APPROPRIATIONS, PROP- The PRESIDING OFFICER. Without preceding the date that such declination was ERTY, AND FACILITIES. objection, it is so ordered. made. Each such employee holding a perma- Upon the termination date under section COMMITTEE ON FINANCE nent position shall not be involuntarily sepa- 341(a), all assets, liabilities, contracts, prop- rated or reduced in grade or compensation erty, records, and unexpended balances of ap- Mr. DURBIN. Mr. President, I ask for 12 months after the date that the transfer propriations, authorizations, allocations, unanimous consent that the Com- would otherwise have occurred, except for and other funds employed, held, used, arising mittee on Finance be authorized to cause or, if the employee is a temporary em- from, available to, or to be made available to meet during the session of the Senate ployee, separated in accordance with the the Department in connection with enter- on Thursday, April 3, 2008, at 10 a.m., in terms of the appointment. prise-related functions of the Department room 215 of the Dirksen Senate Office shall transfer to the Director of the Federal (b) GUARANTEED POSITIONS.—Each enter- Building, to conduct a hearing entitled prise-related employee of the Department Housing Finance Agency. Unexpended funds transferred under subsection (a) shall be transferred by this section shall be used only ‘‘Outside the Box on Estate Tax Re- guaranteed a position with the same status, for the purposes for which the funds were form: Reviewing Ideas to Simplify tenure, grade, and pay as that held on the originally authorized and appropriated. Planning’’. day immediately preceding the transfer. f The PRESIDING OFFICER. Without Each such employee holding a permanent po- objection, it is so ordered. sition shall not be involuntarily separated or AUTHORITY FOR COMMITTEES TO COMMITTEE ON FOREIGN RELATIONS reduced in grade or compensation for 12 MEET months after the date of transfer, except for Mr. DURBIN. Mr. President, I ask cause or, if the employee is a temporary em- COMMITTEE ON ARMED SERVICES unanimous consent that the Com- ployee, separated in accordance with the Mr. DURBIN. Mr. President, I ask mittee on Foreign Relations be author- terms of the appointment. unanimous consent that the Com- ized to meet during the session of the

VerDate Aug 31 2005 07:12 Apr 04, 2008 Jkt 069060 PO 00000 Frm 00221 Fmt 4624 Sfmt 0634 E:\CR\FM\A03AP6.135 S03APPT1 ccoleman on PRODPC75 with SENATE S2588 CONGRESSIONAL RECORD — SENATE April 3, 2008 Senate on Thursday, April 3, 2008, at COMMITTEE ON VETERANS’ AFFAIRS mous consent that Dionne Thompson, a 9:30 a.m. to hold a hearing on Iraq. Mr. DURBIN. Mr. President, I ask fellow in Senator LANDRIEU’s office, be The PRESIDING OFFICER. Without unanimous consent for the Committee granted privileges of the floor during objection, it is so ordered. on Veterans’ Affairs to be authorized consideration of H.R. 3221 and for the COMMITTEE ON HOMELAND SECURITY AND to meet during the session of the Sen- duration. GOVERNMENTAL AFFAIRS ate on Thursday, April 3, 2008 to con- The PRESIDING OFFICER. Without Mr. DURBIN. Mr. President, I ask duct a Joint Hearing with the House objection, it is so ordered. unanimous consent that the Com- Veterans’ Affairs Committee to hear f mittee on Homeland Security and Gov- the Legislative Presentations from the: ernmental Affairs be authorized to AMVETS, Military Order of the Purple NATIONAL HEALTH CARE meet during the session of the Senate Heart, Gold Star Wives of America, DECISIONS DAY on Thursday, April 3, 2008, at 10 a.m. to Fleet Reserve Association, The Retired Mr. DODD. Mr. President, I ask unan- conduct a hearing entitled ‘‘The New Enlisted Association, Military Officers imous consent that the Senate proceed FEMA: Is the Agency Better Prepared Association of America, and National to the immediate consideration of S. for a Catastrophe Now Than It Was in Association of State Directors of Vet- Con. Res. 73, introduced earlier today 2005?’’. erans Affairs. The Committee will by Senator WYDEN. The PRESIDING OFFICER. Without meet in room 216 of the Hart Senate Of- The PRESIDING OFFICER. The objection, it is so ordered. fice Building, at 9:30 a.m. clerk will report the concurrent resolu- COMMITTEE ON THE JUDICIARY The PRESIDING OFFICER. Without tion by title. Mr. DURBIN. Mr. President, I ask objection, it is so ordered. The legislative clerk read as follows: unanimous consent that the Senate SUBCOMMITTEE ON AIRLAND A concurrent resolution (S. Con. Res. 73) Committee on the Judiciary be author- Mr. DURBIN. Mr. President, I ask expressing Congressional support for the ized to meet during the session of the unanimous consent that the Sub- goals and ideals of National Health Care De- cisions Day. Senate, to conduct an executive busi- committee on Airland of the Com- ness meeting on Thursday, April 3, mittee on Armed Services be author- There being no objection, the Senate 2008, at 10 a.m. in room SD–226 of the ized to meet during the session of the proceeded to consider the concurrent Dirksen Senate Office Building. Senate on Thursday, April 3, 2008, at 3 resolution. p.m., in open session to receive testi- Mr. DODD. Mr. President, I ask unan- Agenda mony on Army modernization in re- imous consent that the concurrent res- I. Bills: S.2136, Helping Families Save view of the defense authorization re- olution be agreed to, the preamble be Their Homes in Bankruptcy Act of quest for fiscal year 2009 and the future agreed to, the motions to reconsider be 2007, (Durbin, Schumer, Whitehouse, years defense program. laid upon the table, with no inter- Biden, Feinstein); S.2133, Home Owners The PRESIDING OFFICER. Without vening action or debate, and that any ‘‘Mortgage and Equity Savings Act’’, objection, it is so ordered. statements relating to the concurrent ECORD (Specter, Coleman); S.2041, False SUBCOMMITTEE ON OVERSIGHT OF GOVERNMENT resolution be printed in the R . Claims Act Correction Act of 2007, MANAGEMENT, THE FEDERAL WORKFORCE, The PRESIDING OFFICER. Without (Grassley, Durbin, Leahy, Specter, AND THE DISTRICT OF COLUMBIA objection, it is so ordered. Whitehouse); S.2533, State Secrets Pro- Mr. DURBIN. Mr. President, I ask The concurrent resolution (S. Con. tection Act, (Kennedy, Specter, Leahy, unanimous consent that the Com- Res. 73) was agreed to. Feingold, Whitehouse); S.702, State mittee on Homeland Security and Gov- The preamble was agreed to. Court Interpreter Grant Program Act, ernment Affairs’ Subcommittee on The concurrent resolution, with its (Kohl, Kennedy, Durbin, Biden, Cardin, Oversight of Government Management, preamble, reads as follows: Leahy, Specter). the Federal Workforce, and the Dis- S. CON. RES. 73 II. Resolution: S. Res. 468, desig- trict of Columbia be authorized to Whereas National Health Care Decisions nating April 2008 as ‘‘National 9–1–1 meet during the session of the Senate Day is designed to raise public awareness of Education Month’’, (Clinton, Stevens). on Thursday, April 3, 2008 at 2 p.m. to the need to plan ahead for health care deci- III. Nominations: Catharina Haynes conduct a hearing entitled, ‘‘Managing sions related to end-of-life care and medical decision-making whenever patients are un- to be United States Circuit Court Diversity of Senior Leadership in the Judge for the Fifth Circuit, Rebecca able to speak for themselves and to encour- Federal Workforce an Postal Service.’’ age the specific use of advance directives to Ann Gregory to be United States At- The PRESIDING OFFICER. Without communicate these important decisions; torney for the Eastern District of objection, it is so ordered. Whereas the Patient Self-Determination Texas. SPECIAL COMMITTEE ON AGING Act (42 U.S.C. 1395cc(f) et seq.) guarantees The PRESIDING OFFICER. Without Mr. DURBIN. Mr. President, I ask patients the right to information about their objection, it is so ordered. unanimous consent that the Special rights under State law regarding accepting COMMITTEE ON THE JUDICIARY Committee on Aging be authorized to or refusing medical treatment; Whereas it is estimated that only a minor- Mr. DURBIN. Mr. President, I ask meet on Thursday, April 3, 2008, from unanimous consent that the Senate ity of Americans have executed advance di- 10:30 a.m. to 12:30 p.m. in Dirksen 608 rectives, including those who are terminally Committee on the Judiciary be author- for the purpose of conducting a hearing ill or living with life-threatening or life-lim- ized to meet during the session of the The PRESIDING OFFICER. Without iting illnesses; Senate, to conduct a hearing on Thurs- objection, it is so ordered. Whereas advance directives offer individ- day, April 3, 2008, at 2:15 p.m., in room f uals the opportunity to discuss with loved SD–226 of the Dirksen Senate Office ones in advance of a health care crisis and Building. PRIVILEGES OF THE FLOOR decide what measures would be appropriate Witness list: Mark S. Davis to be Mr. BAUCUS. Mr. President, I ask for them when it comes to end-of-life care; United States District Judge for the unanimous consent that the following Whereas the preparation of an advance directive would advise family members, health Eastern District of Virginia; David fellows and interns on the staff of the care providers, and other persons as to how Gregory Kays to be United States Dis- Finance Committee be allowed floor an individual would want to be treated with trict Judge for the Western District of privileges during consideration of the respect to health care; Missouri; David J. Novak to be United Foreclosure Prevention Act: Ben Mil- Whereas to avoid any legal or medical con- States District Judge for the Eastern ler, Blake Thompson, Bridget Mallon, fusion due to the emotions involved in end- District of Virginia; Stephen N. Damian Kudelka, Emily Schwartz, of-life decisions, it is in the best interest of Limbaugh, Jr. to be United States Dis- Ezana Teferra, Kayleigh Brown, Mary all Americans that each person over the age trict Judge for the Eastern District of Baker, Tom Louthan, and Tyler Gam- of 18 communicate his or her wishes by creating an advance directive; Missouri; Elisebeth C. Cook to be As- ble. Whereas the Conditions of Participation in sistant Attorney General for the Office The PRESIDING OFFICER. Without Medicare and Medicaid, section 489.102 of of Legal Policy, Department of Justice. objection, it is so ordered. title 42, Code of Federal Regulations (as in The PRESIDING OFFICER. Without Mr. DURBIN. Mr. President, on be- effect on the date of enactment of this reso- objection, it is so ordered. half of Senator LANDRIEU, I ask unani- lution), require all participating facilities to

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Whereas the Centers for Medicare & Med- ence and in the Constitution, a dream More than four decades after Dr. King icaid Services has recognized that the use of that lives today in our values, our and his supporters marched through advance directives is tied to quality health the streets of Chicago to fight housing care and has included discussions of advance identities, our highest ideals as Ameri- directives in the criteria of the Physician cans. discrimination, African Americans and Quality Reporting Initiative; This is the dream: that all men are Latinos in Cook County report sub- Whereas establishing National Health Care created equal, and that in a just soci- stantial levels of unfair—and illegal— Decisions Day will encourage health care fa- ety all are afforded the same opportu- treatment in the housing industry. cilities and professionals as well as chap- nities. The intent of the Fair Housing Act lains, attorneys, and others to participate in A week after Dr. King’s assassina- was broad and inclusive: to advance a collective, nationwide effort to provide tion, and in a step closer to the fulfill- equal opportunity in housing and clear, concise, and consistent information to ment of this dream, Congress passed achieve racial integration for the ben- the public about health care decision-mak- the Fair Housing Act as part of the efit of all Americans. But enforcement ing, particularly advance directives; and of this law has been narrow and incom- Whereas as a result of National Health Civil Rights Act of 1968. The Fair Hous- Care Decisions Day, recognized on April 16, ing Act prohibits discrimination in plete. Where you live profoundly af- 2008, more Americans will have conversa- housing on the basis of race, color, na- fects where you work, what you do, tions about their health care decisions, more tional origin, and religion. In 1974, Con- where you send your kids to school, Americans will execute advance directives to gress added protection on the basis of whether they grow up healthy and safe. make their wishes known, and fewer families sex. In 1988, thanks to the leadership of As long as our commitment to fair and health care providers will have to strug- Senator KENNEDY and Senator SPEC- housing laws—to civil rights—remains gle with making difficult health care deci- timid, we will never end segregation. sions in the absence of guidance from the pa- TER, Congress included protection on the basis of familial status and dis- We will never declare victory over pov- tient: Now, therefore, be it erty. We will never build a truly just Resolved by the Senate (the House of Rep- ability. We have made a lot of progress since society. resentatives concurring), That Congress— As we honor Dr. King, former Sen- (1) supports the goals and ideals of Na- the summer of 1966, when Dr. King led tional Health Care Decisions Day; a movement to protest housing dis- ator Walter Mondale and former Sen- ator Edward Brooke, who cosponsored (2) supports the goals and ideals of advance crimination and slum conditions for the original Fair Housing Act, and oth- care planning for all adult Americans; African Americans in Chicago. But if ers who made possible fair housing (3) encourages each person in the United he were alive today, he would be the States who is over the age of 18 to prepare an laws, we need to remember that it is first to say—we aren’t there yet. Seg- advance directive to assist his or her loved not enough to pass laws. We have to ones, health care providers, and others as regation persists in our schools and enforce them. The dream of equality is they honor his or her wishes; neighborhoods. We are in the middle of our Nation’s moral compass. Our duty (4) calls upon all members of Congress to a housing crisis that is hitting African- as legislators and as citizens is to execute such documents and discussions for American and Hispanic families and make sure the needle points in the themselves; and communities particularly hard. In Chi- (5) encourages health care, civic, edu- right direction. cago, African-American borrowers were I thank Senators SPECTER, KENNEDY, cational, religious, and for- and non-profit 14 times more likely to have a higher organizations to encourage individuals to DODD, BROWN, and VOINOVICH for join- prepare advance directives to ensure that cost loan from Wells Fargo than were ing me today in honoring the 40th an- their wishes and rights with respect to White borrowers. This is a pattern that niversary of the Fair Housing Act and health care are protected. repeats all across the country. African- the 20th anniversary of the Fair Hous- f American and Latino families were ing Amendments Act, and I urge my dramatically more likely to have colleagues in Congress to renew their RECOGNIZING AND HONORING 40TH subprime loans than White families. dedication to upholding these laws. ANNIVERSARY OF FAIR HOUSING Right now, millions face the possibility These laws may be 40 years old, but the ACT AND 20TH ANNIVERSARY OF of foreclosure. And when they lose dream they seek to make real is as old FAIR HOUSING AMENDMENTS their homes, they lose their assets. as our country. ACT OF 1988 They lose their plans for financing Mr. DODD. Mr. President, I ask unan- Mr. DODD. Mr. President, I ask unan- their kids’ education, for building a imous consent that the resolution be imous consent that the Senate proceed better life for themselves in the future, agreed to, the preamble be agreed to, to the immediate consideration of S. for closing the income and education the motions to reconsider be laid upon Res. 503, submitted earlier today by gaps. the table, with no intervening action Senator DURBIN. For too many Americans, the dream or debate, and any statements related The PRESIDING OFFICER. The is still just that—a dream, with little to the resolution be printed in the clerk will report the resolution by chance of becoming reality. We may RECORD. title. have all been created equal, but since The PRESIDING OFFICER. Without The legislative clerk read as follows: then we have been treated very dif- objection, it is so ordered. A resolution (S. Res. 503) recognizing and ferently. We are treated differently be- The resolution (S. Res. 503) was honoring the 40th anniversary of the Fair cause of the color of our skin, the faith agreed to. Housing Act and the 20th anniversary of the we practice, whether we are a man or a The preamble was agreed to. Fair Housing Amendments Act of 1988. woman, single or with children, or use The resolution, with its preamble, reads as follows: There being no objection, the Senate a wheelchair and a ramp to enter our proceeded to consider the resolution. apartment. S. RES. 503 Mr. DURBIN. Mr. President, today I The irony is that we have fair hous- Whereas 2008 marks the 40th anniversary of rise to support this resolution honoring ing laws that make this kind of treat- the enactment of the Fair Housing Act (42 the 40th anniversary of the Fair Hous- ment not only unfair but illegal—and U.S.C. 3601 et seq.); Whereas 2008 also marks the 20th anniver- ing Act and the 20th anniversary of the we have had them for 40 years. Yet 3.7 sary of the enactment of the Fair Housing Fair Housing Amendments Act. million violations of these laws occur Amendments Act of 1988 (Public Law 100–430; But first I want to honor a man each year against African Americans, 102 Stat. 1619); whose work helped pave the way for Latinos, Asian Americans, and Indian Whereas the Chicago Freedom Movement, this landmark civil rights legislation. Americans. This doesn’t even include which took place from 1965 to 1967 and was Forty years ago, the Reverend Dr. Mar- the number of violations that occur on led by the Reverend Doctor Martin Luther tin Luther King, Jr. lost his life to a the basis of other protected classes. King, Jr., raised the national consciousness sniper’s bullet. Today, we remember Only 1 percent of people who believe about housing discrimination and shaped the debate that led to landmark fair housing leg- him as one of the greatest civil rights they are victims of fair housing viola- islation; leaders of our country. We know his tions report it to the Government. Whereas the National Advisory Commis- dream. We are intimately familiar with Testing on the enforcement of fair sion on Civil Disorders, appointed by Presi- it. It is a dream conceived in the found- housing laws shows a high rate of dis- dent Lyndon B. Johnson and commonly

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Whereas Congress passed the Fair Housing housing laws continues to uncover a high Act as part of the Civil Rights Act of 1968 rate of discrimination in the rental, sales, f (Public Law 90–284; 82 Stat. 73), and Presi- mortgage lending, and insurance markets; dent Johnson signed the Act into law on and PROGRAM April 11, 1968, one week after the assassina- Whereas the Fair Housing Act is an essen- tion of Dr. King; tial component of our Nation’s civil rights Mr. DODD. Mr. President, Senators Whereas the Fair Housing Act prohibits legislation: Now, therefore, be it should be prepared to begin voting as discrimination in housing and housing-re- Resolved, That the Senate— early at 9:05 a.m. tomorrow in relation lated transactions on the basis of race, color, (1) recognizes and honors the 40th anniver- to the Voinovich-Stabenow amend- national origin, and religion; sary of the enactment of the Fair Housing ment, No. 4406, to be followed by a vote Whereas, in section 808 of the Housing and Act (42 U.S.C. 3601 et seq.) and the 20th anni- in relation to the Landrieu amend- Community Development Act of 1974 (Public versary of the enactment of the Fair Housing Law 93–383; 88 Stat. 728), Congress amended Amendments Act of 1988 (Public Law 100–430; ment, No. 4389, as modified. the Fair Housing Act to include protection 102 Stat. 1619); f on the basis of sex; (2) supports activities to recognize and cel- Whereas the Fair Housing Amendments ebrate the historical milestone represented ADJOURNMENT UNTIL 9 A.M Act of 1988 (Public Law 100–430; 102 Stat. by the anniversaries of the enactment of the TOMORROW 1619), passed by overwhelming margins in Fair Housing Act and the enactment of the Congress, included protection on the basis of Fair Housing Amendments Act of 1988; and Mr. DODD. If there is no further busi- familial status and disability and expanded (3) encourages all levels of government to ness to come before the Senate, I ask the definition of ‘‘discriminatory housing rededicate themselves to the enforcement unanimous consent that the Senate practices’’ to include interference and in- and the ideals of fair housing laws. timidation; stand adjourned under the previous Whereas Congress’s intent in passing the f order. Fair Housing Act was broad and inclusive, to DISCHARGE AND REFERRAL There being no objection, the Senate, advance equal opportunity in housing and at 8:32 p.m., adjourned until Friday, Mr. DODD. Mr. President, I ask unan- achieve racial integration for the benefit of April 4, 2008, at 9 a.m. all people in the United States; imous consent that the Armed Services Whereas housing integration affects other Committee be discharged of S. 2764, a f dimensions of life, including educational at- bill relating to the Servicemembers tainment, employment opportunities, access Relief Act, and that it be referred to NOMINATIONS to health care, and home equity; the Committee on Veterans’ Affairs. Executive nominations received by Whereas the majority of people in the The PRESIDING OFFICER. Without the Senate: United States support neighborhood integra- objection, it is so ordered. tion and numerous studies have shown the COMMODITY FUTURES TRADING COMMISSION universal benefits of residential integration; f BARTHOLOMEW H. CHILTON, OF DELAWARE, TO BE A Whereas the National Fair Housing Alli- ORDERS FOR FRIDAY, APRIL 4, COMMISSIONER OF THE COMMODITY FUTURES TRADING ance estimates that 3,700,000 violations of COMMISSION FOR A TERM EXPIRING APRIL 13, 2013. (RE- 2008 APPOINTMENT) fair housing laws still occur each year SCOTT O’MALIA, OF MICHIGAN, TO BE A COMMISSIONER against African Americans, Latinos, Asian Mr. DODD. Mr. President, I ask unan- OF THE COMMODITY FUTURES TRADING COMMISSION FOR A TERM EXPIRING APRIL 13, 2012, VICE RUEBEN Americans, and American Indians, and that imous consent that when the Senate JEFFERY III, RESIGNED number does not include violations that completes its business today, it stand PUBLIC HEALTH SERVICE occur on the basis of other national origins, adjourned until 9 a.m. tomorrow, April religion, sex, or familial status or against 4; that following the prayer and pledge, THE FOLLOWING CANDIDATES FOR PERSONNEL AC- persons with disabilities; TION IN THE REGULAR CORPS OF THE COMMISSIONED the Journal of proceedings be approved CORPS OF THE U.S. PUBLIC HEALTH SERVICE SUBJECT Whereas the Department of Housing and TO QUALIFICATIONS THEREFORE AS PROVIDED BY LAW Urban Development estimates that only 1 to date, the morning hour be deemed AND REGULATIONS. percent of individuals who believe they are expired, the time for the two leaders be To be assistant surgeon reserved for their use later in the day, victims of housing discrimination report ROBERT P. DREWELOW those violations of fair housing laws to the and the Senate then resume consider- SARAH R. WHEATLEY

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