E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 108 CONGRESS, SECOND SESSION

Vol. 150 WASHINGTON, THURSDAY, MARCH 18, 2004 No. 35 Senate The Senate was not in session today. Its next meeting will be held on Monday, March 22, 2004, at 12 noon. House of Representatives THURSDAY, MARCH 18, 2004

The House met at 10 a.m. forward and lead the House in the Iraq has changed the world as we Rabbi Elie Spitz, Congregation B’nai Pledge of Allegiance. know it. Libya is cooperating on nu- Israel, Tustin, California, offered the Mr. ANDREWS led the Pledge of Al- clear weapons. North Korea is talking following prayer: legiance as follows: about peace. Pakistan and India are Master of the Universe, may You I pledge allegiance to the Flag of the trying to settle their longstanding bless our great country and its leaders. United States of America, and to the Repub- skirmish over Kashmir. May You give them, our congressional lic for which it stands, one nation under God, Michael Woodliff died defending the leaders, the wisdom to discern the path indivisible, with liberty and justice for all. honor of this country. Politicians of righteousness. f should think of him when they utter Scripture teaches: ‘‘Today, I place ANNOUNCEMENT BY THE SPEAKER words on this floor. His sacrifice to this before you life and death, blessing and Nation is a lot better than the speeches curse. Choose life.’’ The SPEAKER. The Chair will enter- I have heard by some. Sixty years ago this day, the Ger- tain 10 1-minute speeches on each side. God bless you, Michael. Thank you mans invaded greater Hungary to oust f for serving your Nation. the government and begin deportations of hundreds of thousands of Jews and HONORING SPECIALIST MICHAEL f others. Many of those who survived WOODLIFF have modeled an affirmation of life and (Mr. FOLEY asked and was given per- THE AMERICAN PEOPLE DESERVE a passion for justice in the shadow of mission to address the House for 1 THE TRUTH tragic loss. minute and to revise and extend his re- (Mr. INSLEE asked and was given May You, the Almighty, guide our marks.) permission to address the House for 1 congressional leaders toward affirming Mr. FOLEY. Mr. Speaker, last Friday minute.) life and pursuing justice in all that in Punta Gorda, Florida, I attended the Mr. INSLEE. Mr. Speaker, one of the they do. May they find Your light de- funeral services for one Specialist Mi- reasons this current administration spite shadow. chael Woodliff who was killed in Iraq. has run up the largest Federal deficit Infuse their acts with strength and He was laid to rest in Arlington Ceme- in the universe’s history is it has not courage, memory and wise purpose, tery on Monday. told the truth to the American people. open hearts and outstretched hands. At the ceremony there was no bitter- The most recent example of that is Amen. ness, but fond memories for a fallen this story that has come out that the f hero. His friends and families describe chief actuary for Medicare had num- THE JOURNAL his credos as faith, family, country. His bers indicating that the President’s The SPEAKER. The Chair has exam- father said to me, ‘‘Michael died serv- Medicare bill would cost billions of dol- ined the Journal of the last day’s pro- ing his country with pride in defending lars more money than the administra- ceedings and announces to the House his homeland.’’ tion told the American people. Indeed, his approval thereof. Michael would not want the political Richard Foster advised the administra- Pursuant to clause 1, rule I, the Jour- debate that has taken place in the last tion that this bill would cost $534 bil- nal stands approved. 24 hours of acrimony and division. Mi- lion, when the administration was tell- chael would want us not to question ing the American people it would cost f the merits of the war in Iraq. He would about $400 billion. PLEDGE OF ALLEGIANCE want us to track the terrorists who And the reason this individual was The SPEAKER. Will the gentleman killed him and others who killed those not able to blow the whistle at that from New Jersey (Mr. ANDREWS) come in New York on September 11. time is they effectively said they would

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

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VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00001 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.000 H18PT1 H1232 CONGRESSIONAL RECORD — HOUSE March 18, 2004 fire him if he told the truth to the plaint on behalf of American con- publican Member of Congress to sup- American people. sumers because OPEC is breaking the port that legislation. In an e-mail disclosed yesterday in rules? They have told me they will not No wonder the senior citizens do not the Wall Street Journal, it was dis- do that. like this bill. It was never about them. closed that this gentleman got an e- They are going to unilaterally dis- It was only about the special interest mail that said essentially, if you tell arm Americans in face of this attack and special money and campaign con- Congress or the American people the against our economy by OPEC because tributions and employment contracts truth, quote, ‘‘The consequences for in- some of their buddies in the oil indus- for the Republican administrators and subordination are extremely severe,’’ try are adding a little margin on and the Republican Members of the House. closed quote. We know what that doing okay. f means. f This administration told the person ONE YEAR ANNIVERSARY OF THE IRAQ he would be fired if he told the truth to WAR IN IRAQ the American people. Well, we disagree (Mr. MURPHY asked and was given (Mr. BURGESS asked and was given with Jack Nicholson: We can handle permission to address the House for 1 permission to address the House for 1 the truth, and we deserve it. minute.) minute and to revise and extend his re- f Mr. MURPHY. Mr. Speaker, 1 year marks.) ago the Iraqi people lived under the Mr. BURGESS. Mr. Speaker, today IRAQ rule of a man who massacred and tor- this House should recognize that just 1 (Mr. PITTS asked and was given per- tured his own people by the hundreds year ago the campaign started in Iraq mission to address the House for 1 of thousands, who supported terrorists to liberate the Iraqi people. A signifi- minute and to revise and extend his re- groups, and who was a human weapon cant part of the war on terrorism, mili- marks.) of mass destruction. tary victory in Iraq, and the capture of Mr. PITTS. Mr. Speaker, a year ago Today 25 million Iraqis have been lib- Saddam Hussein have helped move the our troops went into Iraq, removed erated and an example has been made world closer to safety. Saddam Hussein from power, and the of Saddam Hussein. Today America is a Make no mistake about it, the deci- world is a safer place with him gone. safer place. Today the world is a safer sion to go into Iraq was not taken Hussein was a homicidal tyrant who place because of the actions of our lightly. And the price of freedom is disregarded international law, basic military. costly, but we must endure. We must human rights, and invaded his neigh- Since September 11, thousands of recognize and relate the victories that bors at will. He supported Palestinian Guard and reservists have been acti- have been achieved. terrorists and suicide bombers. He used vated to fight the war on terror and 40 Unfortunately, we cannot count on chemical weapons of mass destruction percent of the current force in Iraq is our own news outlets to be objective against Iran and his own people. He composed of these soldiers. And despite and complete in this, because just last killed thousands and thousands. what some critics continue to say, week, Mr. Speaker, a momentous event Hussein reigned over the people of Guard and Reserve service is just as occurred that has yet to receive suffi- Iraq in terror and he terrorized the re- honorable as regular military service. cient mention in the press. And this, of gion. Human rights organizations re- They have left their families and their course, was the signing of the interim port that women told them that rape jobs to serve their Nation. They too Iraqi Constitution by the 25 signato- was routinely used by Iraqi officials as have seen the horrors of Saddam Hus- ries. a means of torture and intimidation. sein’s regime and the gratitude of the The press scarcely reported what will Electric shock, pulling out fingernails, Iraqi people as they work hand in hand likely be the outcome of this constitu- dripping acid on victims’ skin, gouging to rebuild their country. tion and how this will shape the world out eyes, were torture methods used by Today I thank all who serve. I give a events for the rest of this century. Saddam’s regime. special nod to our guardsmen, for when Mr. Speaker, I want to congratulate Iraq has come a long way since then. I see them, I do not see half a soldier, our President on his leadership for get- And if we stay the course, we can build but I see twice a patriot. ting this done. I want to congratulate a future for Iraq free of this kind of f Ambassador Bremer. terror and deal a deathblow to the ter- THE TRUTH ABOUT THE rorists who rely on murder and coer- b 1015 MEDICARE BILL cion and death to advance the terrible I want to congratulate our soldiers agenda by building a free democratic (Mr. GEORGE MILLER of California and our Reservists who dedicate them- Iraq. asked and was given permission to ad- selves to ensuring as much safety as f dress the House for 1 minute and to re- possible for the people of Iraq. As we vise and extend his remarks.) focus on the future, we must under- THE RISING COST OF OIL Mr. GEORGE MILLER of California. stand that sacrifices have to be made (Mr. DEFAZIO asked and was given Mr. Speaker, Members of the House, we for democracy and freedom to flourish permission to address the House for 1 now learn that the efforts to provide a for generations to come. minute.) prescription drug benefit to the seniors f Mr. DEFAZIO. Mr. Speaker, oil hit a of this Nation, which they so des- new high yesterday. Prices over 2 perately need, that legislative process CONSEQUENCES FOR TELLING bucks a gallon in places in the western has now become a scandal. TRUTH ABOUT MEDICARE BILL United States; $30 billion will be ex- We learned in the papers this morn- EXTREMELY SEVERE torted from American consumers this ing that administration officials were (Mr. EMANUEL asked and was given year because OPEC is fixing prices and threatened to be fired if they told the permission to address the House for 1 driving up the cost. Congress the true cost of that legisla- minute.) Now, what is the response of the oil tion. We learned that the Medicare ad- Mr. EMANUEL. Mr. Speaker, the men at the Bush White House? A col- ministrator was negotiating to set up a consequences for insubordination are lective yawn and silence from the Bush consulting business with the very peo- extremely severe. That was the warn- administration. I guess their buddies in ple who would benefit from this legisla- ing that the Medicare actuary Richard the oil industry are doing pretty well tion. Foster received from his superiors for because they are adding on a little We learned that the legislative chair- trying to tell the truth about the real margin to these increases in prices. man of the committee was negotiating costs of the Medicare bill. The pen- Now OPEC is violating the rules of with the pharmaceutical industry for a alties for misleading the American peo- the World Trade Organization. We have contract to a job after leaving Con- ple are extremely severe as well. an administration that is a big fan of gress. We learned in the New York Today, we learned that some in the the World Trade Organization and Times that there is an inquiry now Republican leadership knew all along rules-based trade. Will they file a com- about the offering of a bribe to a Re- the real cost of the prescription drug

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00002 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.002 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1233 bill and yet continued to hide that in- ministration knew well ahead of time systematically lied to the American formation from their colleagues on that this bill was going to cost sub- people and to this Congress about the both sides of the aisle. Let me again stantially more than it represented it reasons why it said it was necessary to quote from the Wall Street Journal’s was going to cost; and in fact, a mem- go into war with Iraq. We know that lead editorial yesterday: ‘‘What’s a ber of the administration was threat- what they said about weapons of mass mere $140 billion among friends?’’ ened with the loss of his job if he told destruction, about nuclear weapons, This is a case not only of politics Congress the facts, if he let people about the biological weapons, we know trumpeting policy but of politics trum- know the facts. all this was not true. The only question peting principle. Some think that there We find that the chairman of one of now is when they knew it was not true. are consequences for insubordination, the committees drafting the bill was We now learn, Mr. Speaker, that the but all of us know that the con- offered a $2 million-a-year job by the Bush administration misled this Con- sequences of deception are extremely industry that would benefit by $139 bil- gress deliberately and knowingly mis- severe as well. lion over the course of that bill; and we led this Congress as to the cost of the Medicare bill by over $140 billion. We f find that a Republican Member of this House now says that although he is not know that they threatened the actuary UNCOVERING SADDAM HUSSEIN’S running, he was told that his son would with being fired if he gave truthful in- LEGACY OF TERROR get money or not get money for his formation to Congress. (Mr. WILSON of South Carolina campaign to succeed his father depend- Mr. Speaker, we depend on truthful asked and was given permission to ad- ing on the vote on that bill. information to have democracy. Mar- dress the House for 1 minute and to re- Mr. Speaker, the credibility of this tha Stewart faces jail time for lying to vise and extend his remarks.) House is endangered. We need an inves- the government. When are we going to Mr. WILSON of South Carolina. Mr. tigation into those circumstances. We hold this administration accountable Speaker, in cooperation with the gen- cannot afford to let the credibility of for lying to the American people and to tleman from California (Mr. HUNTER), this institution go the way of the this institution so that we cannot do the Committee on Armed Services credibility of the administration. our work properly because we are working on false information? When chairman, I recently sent every Mem- f ber of the House a copy of ‘‘Iraq’s Leg- are we going to appoint an independent acy of Terror: Mass Graves,’’ a report THE RIGHT PRESCRIPTION FOR counsel to begin to demand honesty so that highlights the worst human rights BETTER HEALTH that we can represent the American atrocity of Saddam Hussein’s regime. (Mr. REHBERG asked and was given people properly? Hundreds of thousands of murdered permission to address the House for 1 f Iraqis, including women holding their minute.) OUR PRESIDENT IS WORKING TO children with bullet holes, lie in at Mr. REHBERG. Mr. Speaker, I am DEFEND AND PROTECT THE least 270 mass grave sites around the proud of the Medicare prescription AMERICAN PEOPLE country. drug legislation we passed not long ago (Mr. GARRETT of New Jersey asked Saddam’s mass graves represent a that will give more seniors more access and was given permission to address crime against humanity surpassed in to prescription drugs at lower costs. the House for 1 minute and to revise scope only by the World War II Nazi Sadly, a lot of seniors have not gotten and extend his remarks.) Holocaust, Pol Pot’s Cambodian com- the word yet. They have not heard that Mr. GARRETT of New Jersey. Mr. munist killing fields in the 1970s, and Medicare will now give seniors choice Speaker, when in power, Saddam Hus- the Rwandan genocide in 1994. Thanks and control over their prescription sein posed a grave and great danger to to the leadership of President Bush and drug plans. They have not heard that the Iraqi people, the region’s stability, the valor of the American military, Medicare will now pay 75 percent of and the worldwide community. He along with our international allies, drug costs and 95 percent of cata- ruled by oppression, deception, and Iraqis no longer live in fear of strophic drug costs. They have not fear; and the President’s decision to go Saddam’s brutal regime. Today, the heard that those who choose to enroll to war with Iraq was the right one, and Coalition Provisional Authority is in the prescription drug program will the world is safer and better off with- working with thousands of Iraqi fami- receive discount cards this spring enti- out Saddam Hussein in power. lies to identify and rebury their loved tling them to save up to 25 percent off For 12 years, Saddam Hussein used ones. the cost of their medications. In fact, tactics of denial, distortion, and delay In conclusion, may God bless our by 2006, seniors who have elected to to prevent the world from enforcing troops, and we will never forget Sep- sign up for their new prescription ben- the 1991 cease-fire agreement that tember 11. efit will pay a monthly premium of as ended the Persian Gulf War and numer- f little as $35. ous other U.N. Security Council resolu- On top of that, low-income seniors WOUNDED CREDIBILITY tions demanding complete disar- will receive a $600 cash subsidy to de- mament. It proves Saddam Hussein’s (Mr. TIERNEY asked and was given fray the costs of their medications. stance against a peaceful resolve in the permission to address the House for 1 Plus, those with incomes below the region. minute.) Federal poverty level will see their Now, while some skeptics continue to Mr. TIERNEY. Mr. Speaker, the drug bills virtually eliminated. Their suggest that military action in Iraq credibility of this administration deductible and monthly premiums will was wrong, their answer never is that abroad has been wounded severely be- be waived, and their copays will be as Iraqis or the world would be better off cause of the misleading representa- little as $1 per prescription. left with him in power. tions about the reasons we went into Groups like AARP, the American Mr. Speaker, I stand here today in that country; and no matter how we Medical Association, and the American support of the President and his deci- try to rewrite history, that fact will Hospital Association agree, we have sions, for I know his one overriding re- not go away. given seniors the right prescription to sponsibility is to protect and defend The administration’s credibility at better health. the American people, and our President home has been shot. It is failing every f is working to do just that. day with the decreasing job market f and the failure to do anything about it. CONGRESS DEPENDS ON This House must fight the loss of its TRUTHFUL INFORMATION UNEMPLOYMENT RATES credibility with respect, especially (Mr. NADLER asked and was given (Mrs. MILLER of Michigan asked and what has been going on with the Medi- permission to address the House for 1 was given permission to address the care measure that passed more re- minute and to revise and extend his re- House for 1 minute and to revise and cently. marks.) extend her remarks.) We now find out in today’s papers Mr. NADLER. Mr. Speaker, last year Mrs. MILLER of Michigan. Mr. and the last week’s papers that the ad- the Bush administration misled and Speaker, we in the Congress have been

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00003 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.004 H18PT1 H1234 CONGRESSIONAL RECORD — HOUSE March 18, 2004 working hard to improve the economy to China, India, and Eastern Europe. in the report, shall be considered as read, and to help to create an environment We have now lost 229,000 computer jobs shall be debatable for the time specified in that allows for new jobs. since 2001. Pfizer and Levis now the report equally divided and controlled by This morning we received some more produce none of their products in this the proponent and an opponent, shall not be subject to amendment, and shall not be sub- good news that shows that the econ- country, even though this is where ject to the demand for division of the ques- omy is improving and that the Presi- they make most of their money. tion in the House or in the Committee of the dent’s economic growth package is Yesterday, The Washington Post car- Whole. All points of order against such working. The Labor Department re- ried a story about a chemical plant in amendments are waived. At the conclusion ported that initial claims for unem- West Virginia closing this month, just of consideration of the bill for amendment ployment benefits fell by 6,000 last after its 75th anniversary. The story the Committee shall rise and report the bill week. This is the lowest level in more said we have lost 100,000 chemical jobs to the House with such amendments as may than 3 years. in the last 5 years because of cheap for- have been adopted. Any Member may de- mand a separate vote in the House on any By cutting taxes for every American eign competition and soaring natural amendment adopted in the Committee of the taxpayer and job provider, we are mak- gas prices. Whole to the bill or to the committee ing it easier for employers to create The Clinton administration locked amendment in the nature of a substitute. new jobs and certainly to help our fam- up 213 trillion cubic feet of natural gas The previous question shall be considered as ilies meet their needs. We cannot turn due to pressure from environmental ex- ordered on the bill and amendments thereto back the momentum in the recovery as tremists. Conservative columnist Paul to final passage without intervening motion some on the other side have suggested. Craig Roberts, a Reagan Treasury De- except one motion to recommit with or with- No tax increase ever created a job. partment official, wrote recently, ‘‘The out instructions. The only way to continue to grow our combination of war, job and income The SPEAKER pro tempore (Mr. economy and to create new jobs is to loss, unprecedented trade deficits, and LAHOOD). The gentleman from Texas hold the line on taxes. the creation of Social Security entitle- (Mr. SESSIONS) is recognized for 1 hour. Today’s good news is welcome, and ments for foreign nationals will break Mr. SESSIONS. Mr. Speaker, for the we will continue the fight for lower the U.S. long before another generation purpose of debate only, I yield the cus- taxes and for more jobs. passes. tomary 30 minutes to the gentleman f ‘‘Before the U.S. can reconstruct the from Massachusetts (Mr. MCGOVERN), world,’’ he wrote, ‘‘it must cease my friend, pending which I yield myself PENSION FUNDING EQUITY ACT deconstructing itself.’’ such time as I may consume. During (Mr. FLAKE asked and was given f consideration of this resolution, all permission to address the House for 1 time is yielded for the purposes of de- minute and to revise and extend his re- PROVIDING FOR CONSIDERATION bate only. marks.) OF H.R. 1375, FINANCIAL SERV- The resolution before us is a struc- Mr. FLAKE. Mr. Speaker, when the ICES REGULATORY RELIEF ACT tured rule providing 1 hour of general savings and loan industry was in the OF 2003 debate equally divided and controlled depths of its problems in the 1980s, Mr. SESSIONS. Mr. Speaker, by di- by the chairman and ranking minority Congress created a statutory require- rection of the Committee on Rules, I member of the Committee on Financial ment for deficit reduction contribu- call up House Resolution 566 and ask Services. The rule waives all points of tions to be made where these pensions for its immediate consideration. order against consideration of the bill. were underfunded. This was renewed in The Clerk read the resolution, as fol- However, the only Budget Act waiver 1987 and actually made more stringent. lows: granted in this rule is for section 302(f). Recently, the House has considered H. RES. 566 It also provides that the substitute H.R. 3108. In fact, it is in conference Resolved, That at any time after the adop- amendment provided by the Committee with the Senate at this time; and there tion of this resolution the Speaker may, pur- on Financial Services and the Com- are rumors by the Senate to actually suant to clause 2(b) of rule XVIII, declare the mittee on the Judiciary is considered grant waivers for these employment House resolved into the Committee of the as read as an original bill for the pur- contributions to a couple of airlines Whole House on the state of the Union for pose of amendment. and a couple of steel companies. To me, consideration of the bill (H.R. 1375) to pro- vide regulatory relief and improve produc- b 1030 the only thing worse than a bailout of tivity for insured depository institutions, This rule also waives all points of an industry is a bailout of certain seg- and for other purposes. The first reading of ments or certain companies within an the bill shall be dispensed with. All points of order against consideration of the sub- industry, and that is exactly what the order against consideration of the bill (ex- stitute, however, the only Budget Act Senate version of the bill purports to cept those arising under provisions of the waiver granted in this rule is for sec- do. Congressional Budget Act of 1974 other than tion 302(f). It makes in order only those We should not be going this direc- section 302(f)) are waived. General debate amendments printed in the Committee tion. The taxpayers will be put at risk shall be confined to the bill and shall not ex- on Rules report accompanying the res- ceed one hour equally divided and controlled here just like they were with the sav- olution. These amendments shall be by the chairman and ranking minority mem- considered as read, and may only be ings and loan industry, and we should ber of the Committee on Financial Services. have no part of it; nor should we have After general debate the bill shall be consid- considered in the order printed in the any part of actually having govern- ered for amendment under the five-minute report, may only be offered by the ment pick winners and losers in the rule. It shall be in order to consider as an Member designated in the report, and economy, saying that you are favored original bill for the purpose of amendment shall be debatable for the time speci- but you are not. That is far worse than under the five-minute rule the amendment fied in the report equally divided and actually bailing out an entire industry. in the nature of a substitute recommended controlled by the proponent and an op- by the Committee on Financial Services and I urge the House conferees to reject ponent; not to be subject to amend- the Committee on the Judiciary now printed ment and not to be subject to a demand the Senate version and for all conferees in the bill. The committee amendment in the to accede to the House version of the nature of a substitute shall be considered as for a division of the question in the bill. read. All points of order against the com- whole House or in the Committee of f mittee amendment in the nature of a sub- the Whole. stitute (except those arising under provi- Finally, this rule waives all points of JOBS MOVING OVERSEAS sions of the Congressional Budget Act of 1974 order against the amendments printed (Mr. DUNCAN asked and was given other than section 302(f)) are waived. No in the report and provides one motion permission to address the House for 1 amendment to the committee amendment in to recommit with or without instruc- minute and to revise and extend his re- the nature of a substitute shall be in order tions. except those printed in the report of the marks.) Committee on Rules accompanying this res- Mr. Speaker, today, I rise to intro- Mr. DUNCAN. Mr. Speaker, last olution. Each such amendment may be of- duce the rule for H.R. 1375, the Finan- month Siemans announced that it was fered only in the order printed in the report, cial Services Regulatory Relief Act. moving most of its 15,000 software jobs may be offered only by a Member designated This bill is commonsense legislation

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00004 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.006 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1235 that will diminish or eliminate out- Finally, for the Federal financial reg- tleman from Ohio (Mr. GILLMOR) joined dated statutory banking provisions to ulatory agencies, the bill provides together to try to fix what is one of the reduce the regulatory compliance bur- agencies with the discretion to adjust more controversial elements of this den faced by our Nation’s financial in- the examination cycle for insured de- bill. And they deserve credit for trying stitutions to improve their produc- pository institutions to use agency re- to work in a bipartisan way and to tivity, as well as to make necessary sources in the most efficient manner. build consensus and to bring something technical correction to current stat- It modernizes agency recordkeeping re- to this floor that a majority of this utes. quirements to allow the use of opti- House will be able to support. America’s banking laws are full of cally-imaged or computer-scanned im- Unfortunately, last night, the Com- outdated and burdensome regulations, ages. It clarifies that agencies may sus- mittee on Rules failed to follow the some dating back to the Great Depres- pend or prohibit individuals charged lead set by our three distinguished col- sion, that have long outlived their use- with certain crimes from participation leagues. In what has become a very dis- fulness. To address the problem of out- in the affairs of any depository institu- turbing standard of operating proce- dated rules and the rapidly advancing tion and not only institutions for dure in the people’s House, the Com- and highly competitive financial serv- which that individual is associated. mittee on Rules once again issued a re- ices industry, in 2001, Committee on Fi- By fixing these and many other tech- strictive rule. Now, this is the 12th rule nancial Services chairman, the gen- nical and outdated problems, H.R. 1375 considered by this body this year so tleman from Ohio (Mr. OXLEY), asked will allow financial institutions to de- far, and only one of them has been the State and Federal regulators of our vote more resources to the business of open. Mr. Speaker, a restrictive rule on Nation’s financial institutions to pro- lending to consumers and less to the a noncontroversial bill, and I think it vide him with a list of regulations that compliance with outdated and is fair to say if the manager’s amend- they believed have outlived their use- unneeded regulations. Reducing these ment gets approved, this is a fairly fulness. regulatory burdens will lower the cost uncontroversial bill, is simply undemo- The regulators answered the chair- of credit for consumers and help our cratic. man’s call, along with the rest of the economy to grow and to provide more Every day, the people I talk to grow financial services community, pro- jobs even more quickly. more and more outraged with the way viding the chairman with a number of And while there are a number of this Republican leadership shuts down suggestions that, when enacted, will things that Congress still needs to ac- the democratic process in this House. benefit consumers and regulators alike complish, like creating a uniform and This restrictive rule I think is also an by lowering the cost of transacting fi- cutting-edge national privacy standard insult to the former chairman of the nancial services. for consumers, this legislation is a Committee on Financial Services, the This wide-ranging list of proposals great step in the right direction. It will gentleman from Iowa (Mr. LEACH), who affecting banks, savings associations, make all of our country’s financial in- I have great admiration for. The major and credit unions was first passed by stitutions more efficient, while bal- controversy with the underlying bill is the committee as H.R. 3951, but unfor- ancing the additional regulatory bur- the regulation of industrial loan com- tunately the 107th Congress expired be- den they face each day as a result of panies, or ILCs. The manager’s amend- fore it could be considered on the the USA PATRIOT Act, and it will help ment includes the compromise that I House floor. The bill that is being con- our banks, savings associations, and mentioned, worked out among the sidered on the floor today is a new and credit unions to focus their compliance chairman, the ranking member (Mr. updated version of that original legis- efforts on combating money laundering FRANK), and the gentleman from Ohio lation and remains true to the original and terrorist financing, not on wasteful (Mr. GILLMOR). vision of providing regulatory relief in and duplicative regulations. The gentleman from Iowa (Mr. financial services that the gentleman I strongly support this rule and the LEACH), as he testified last night in the from Ohio (Mr. OXLEY) and the bill’s underlying legislation, and I urge my Committee on Rules, was not satisfied chief sponsor, the gentlewoman from colleagues to do so. I would like to con- with the compromise language on ILCs. West Virginia (Mrs. CAPITO) had when gratulate the members of the Com- And as is his right, he came to the they began this process more than 3 mittee on Financial Services who have Committee on Rules last night to offer years ago. made great contributions to this bill, an amendment regulating these busi- This legislation accomplishes a num- including the chairman, the gentleman nesses. Now, during their testimony, I ber of important things, and in the in- from Ohio (Mr. OXLEY), the gentle- asked the chairman and I asked the terest of time I will only mention a woman from West Virginia (Mrs. ranking member if they supported the few. For instance, for banks, H.R. 1375 CAPITO), the ranking member, the gen- right of the gentleman from Iowa (Mr. removes the prohibition on national tleman from Massachusetts (Mr. LEACH) to offer his amendment on the and State banks from expanding across FRANK), the gentleman from Pennsyl- floor today. And while they said that State lines by opening branches. It vania (Mr. TOOMEY), and the gentleman they had some issues with the sub- eliminates unnecessary and costly re- from Alabama (Mr. BACHUS). These are stance of his amendment, and they porting requirements on banks regard- the people who have helped to bring would not be able to support it, they ing lending to bank officials; and it this bill to the floor today. I am proud both agreed that the former chairman streamlines bank merger application of what they have done. of the Committee on Financial Serv- regulatory requirements. Mr. Speaker, I reserve the balance of ices deserves the right to offer his For savings associations, the bill re- my time. amendment before the full House, an moves lending limits on small business Mr. MCGOVERN. Mr. Speaker, I amendment that deals with a very im- and auto loans, and increases the limit thank the gentleman from Texas (Mr. portant aspect of this bill. on their business loans. It gives these SESSIONS) for yielding me the cus- Now, if the chairman of the Com- institutions parity with banks with re- tomary 30 minutes, and I yield myself mittee on Financial Services and if the spect to broker-dealer and investment such time as I may consume. ranking Democrat on the Committee adviser SEC registration requirements; (Mr. MCGOVERN asked and was on Financial Services do not have a and it gives thrifts the same authority given permission to revise and extend problem with the offering of the gen- as national and State banks to make his remarks.) tleman’s amendment, why in the world investments primarily designated to Mr. MCGOVERN. Mr. Speaker, the does the Committee on Rules have a promote community development. Committee on Financial Services and problem with the gentleman from Iowa For credit unions, the bill expands the Committee on the Judiciary re- being able to offer his amendment? the investment authority of Federal ferred an imperfect bill to the full The amendment that was brought be- credit unions. It increases the general House. However, in a rare bipartisan fore the Committee on Rules was com- limit on the term of Federal credit move, the chairman, the gentleman pletely in accordance with the rules of union loans from 12 to 15 years, and it from Ohio (Mr. OXLEY), the ranking this House. There were no waivers that eases restrictions on voluntary merg- member, the gentleman from Massa- were required in order for it to be con- ers between healthy credit unions. chusetts (Mr. FRANK), and the gen- sidered on the floor today. In fact, if

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00005 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.009 H18PT1 H1236 CONGRESSIONAL RECORD — HOUSE March 18, 2004 this was an open rule, he would be able Speaker, but as I recall the testimony dated regulation. In America, we do to offer the amendment. There would last night in the Committee on Rules, this in the Federal banking statutes in be no problem. The gentleman from it was that the chairman of the Com- which the Federal Reserve Board is the Iowa (Mr. LEACH) is a distinguished mittee on Financial Services said that consolidated regulator of holding com- Member of this House who drafted this he had no problem making the amend- panies. amendment in a thoughtful way, and I ment of the gentleman from Iowa in What we have here is an exception to believe that the former chairman of order, but would defer to the Com- that rule. What it means, and I think the Committee on Financial Services mittee on Rules to make that decision. this Congress should understand this, deserves more than he is getting here And, in fact, we did. is that there are a number of problems today. Mr. MCGOVERN. Mr. Speaker, will that occur in banking now and again, There are other amendments that the gentleman yield? or financial services. One relates to in- were brought before the Committee on Mr. SESSIONS. I yield to the gen- competence, and so you have regu- Rules last night that were not made in tleman from Massachusetts. latory authority. In this case, the order. In addition, the Committee on Mr. MCGOVERN. Mr. Speaker, maybe FDIC will be a partial regulator of Rules set a deadline for submitting we need to go get the text of the hear- these institutions. Then you have a amendments to the committee of 10 ing last night. I asked specifically problem that relates to very sophisti- a.m. yesterday morning. By the time whether or not either the gentleman cated new instruments of finance, par- the Committee on Rules convened to from Massachusetts (Mr. FRANK) or the ticularly those described as derivatives report the rule last night, the Repub- gentleman from Ohio (Mr. OXLEY) had kinds of products. Historically these lican leadership knew full well that a problem with the gentleman from are the province of larger institutions. only 10 amendments would be offered Iowa (Mr. LEACH) offering his amend- Now they are increasingly used by today. Instead of granting an open rule ment, and the answer was no. There smaller institutions. Industrial loan so that all 10 amendments could be was no qualification. companies used to be very small, mom- considered under regular order, the So that is why I asked the question. and-pop in the financial services indus- Committee on Rules granted this rule And I repeated it several times during try kinds of institutions. None up to which provides for 1 hour of general de- the hearing to make the point that 1987 was as large as $400 million in as- bate and 70 minutes for consideration even though they had some problems sets. Most were under $50 million. Now of the amendments. with the substance of the gentleman’s we have one that is $60 billion and we With this restrictive rule, the Repub- amendment, they had no problem with have eight that are over $1 billion in lican leadership not only shuts out one him offering his amendment. size. It is becoming the obvious charter of their more distinguished Members Mr. SESSIONS. Reclaiming my time, of choice to a lot of companies. but other Members who would like to Mr. Speaker, I thank the gentleman for But then let me also mention that offer amendments to this bill. Again, his comments, and as part of that same you have a problem of criminality and during the hearing last night in the openness to the gentleman from Dav- criminalities of many kinds. It can be Committee on Rules, both the gen- enport, Iowa, I yield 8 minutes to the American-derived; it can be foreign-de- tleman from Massachusetts (Mr. gentleman from Iowa (Mr. LEACH), the rived. One of the roles of the Federal FRANK) and the gentleman from Ohio former chairman of the Committee on Reserve of the United States is the (Mr. OXLEY) made mention of the fact Financial Services, or perhaps it was gatekeeper to access to the American that all these amendments could be the Committee on Banking and Finan- financial system, which is the Federal dealt with in a relatively short period cial Services at that time. Reserve system, and what this statute of time; that there was no reason why Mr. LEACH. Mr. Speaker, I thank the will say is that the Federal Reserve some of these amendments needed to gentleman for yielding me this time, system can be tapped by institutions, be shut out of the process. and let me just say that it is with the foreign or domestic, which the Federal For the life of me, I cannot figure out greatest sadness and discomfort that I Reserve will not have the power to reg- why the Committee on Rules and the rise in opposition to the rule, and be- ulate. And so if you take a Latin Amer- Republican leadership continues to in- cause of the rule, I am also obligated to ican bank, a Russian bank, if they get sist on shutting down democracy in oppose, with every degree of intensity I chartered by one of the five States al- this House of Representatives. Some- can, the underlying bill. lowed to authorize industrial loan com- times, like today, it seems as though panies, they will be able to tap into the b 1045 they stifle debate just because they payment system and to Federal deposit can. It is like a bad habit they cannot Let me explain what is happening be- insurance and without Federal Reserve break. Mr. Speaker, the Republican fore this House. The underlying bill is oversight. leadership is addicted to their own a bill that is a deregulatory bill. It is I will tell you, this is a scandal. It is power, and I urge them to take the good in many ways for virtually every nothing less. It is an embarrassment to first step toward recovery by admitting sector of the financial community in the committee of jurisdiction; it is an that they have a problem, a big prob- parts. It is not necessarily good in all embarrassment to the Committee on lem. And it is not too late. Democrats parts for the public interest. Some of Rules. Because all I asked the Com- stand ready to help you, there are this bill I very much support. Other mittee on Rules to do was allow a sin- thoughtful Members on the Republican parts of it I very much object to. But gle, short amendment that simply said side who stand ready to help you. embedded in the bill is a new empower- if the new powers under this act come There is no reason why this bill needs ment, an empowerment that goes to a to be applied, an institution would to come to the floor today under this charter that virtually nobody in the have to come under the Federal bank- restrictive process. This should be an public has ever heard of called indus- ing statutes, meaning Federal Reserve open process. This should be a rel- trial loan companies. Industrial loan oversight of the holding company. But atively noncontroversial process, but companies will now be able to offer vir- the fix was in. The power groupings did you have made it more controversial tually every feature and service of a not want this to happen. I will say to than it needs to be. So I hope the Re- commercial bank, but they will be able you in my time in the United States publican leadership at some time to offer it without the protections to Congress, this is the greatest micro- comes to their senses and does the the public comparable to that author- cosm evidence of special interest rea- right thing, but I am not holding my ized for commercial banks. soning that does not even allow debate breath. But we are going to continue to What this implies is that we have a on this subject in an amendment on insist that this process be more open breach of what is called commerce and the House floor. and be more democratic. banking; that is, industrial loan com- I happen to be the senior member of Mr. Speaker, I reserve the balance of panies can be owned by commercial en- the committee of jurisdiction, a former my time. tities. We also have a breach of stand- chairman. I consider it not particularly Mr. SESSIONS. Mr. Speaker, I yield ards of regulation that have come to be uncivil to me that I am not allowed to myself such time as I may consume, commonplace in the United States and offer this amendment, but I consider it and I would stand to be corrected, Mr. now in Europe, what is called consoli- an embarrassment to the House that

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00006 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.010 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1237 this issue cannot be debated on the ment which was perfectly in order, re- for example, by the Federal Deposit In- most important banking bill that is quired no budgetary waivers, was not surance Corporation. It is not simply going to be before this Congress this allowed here, which I think is really in this area, but there have been other year. Just so that no one is under any unfortunate. We certainly have the areas where I think the notion of the disillusionment, I am not on a hare. time to be able to debate it and every Federal Reserve being the only regu- Chairman Greenspan and the Federal Member should have the right to vote lator is a problem. Reserve could not feel stronger about up or down on it. Mr. LEACH. Mr. Speaker, will the an amendment. Mr. Speaker, I yield 8 minutes to the gentleman yield? Mr. Speaker, we have seen in finance gentleman from Massachusetts (Mr. Mr. FRANK of Massachusetts. I yield over the last decade some difficulties FRANK), the ranking Democrat on the to the gentleman from Iowa. that have arisen. They have arisen be- Committee on Financial Services who Mr. LEACH. The gentleman is cor- cause we have empowered the big with- most recently David Broder in a Wash- rect. The FDIC will regulate the depos- out appropriate oversight. A legislative ington Post article referred to as one itory institution but it cannot regulate body really has a great deal of dif- bold thinker among Democrats, one of the holding company. And what the ficulty of understanding the subtleties the most effective Members of this Federal Reserve would do is regulate of modern day finance. That is why we House. the holding company and would leave establish institutions in America that Mr. FRANK of Massachusetts. Mr. the FDIC as the primary regulator of are designed to be the experts in this Speaker, I deeply appreciate my col- the institution as it would be under the area. Most particularly we look in fi- league and neighbor’s generous re- current law. Mr. FRANK of Massachusetts. I un- nance at very large levels, for example, marks and I am abashed that I bring derstand that. But I believe that in in derivatives products, in money laun- nothing bold to this debate. I apolo- this case, the entity that has a claim dering, to holding company oversight gize, but sometimes boldness is not ap- on the deposit insurance, that gets into to the Federal Reserve of the United propriate. I think this legislation is a the payment system, will be the entity States. very well balanced one and I will be, This Congress is saying that we do when we get into the substantive de- that is regulated by the FDIC. Let us be clear in this bill, we are not creating not want to see that oversight. This bate, arguing for it. There are a couple ILCs. ILCs have been in existence for a Congress is saying in this bill that we of amendments that will be offered. considerable period of time. They are want to loosen things up. Here let me The gentlewoman from California has a especially important in the States of go to the structure of the bill because good one that I believe will prove non- California and Utah. I believe we will we have an interesting grandfather controversial. The gentleman from hear from some of our colleagues from provision. We will say some will have New York has one that I think is a California and Utah who think we are these powers. Others after given dates good consumer protection amendment being unduly restrictive toward insti- of incorporation will not. Part of this that we will have some controversy tutions which they say, experience has is derived from a desire among some to about. shown, play a useful role and do not What this bill tries to do is to con- stem a particular institution to get interfere. certain powers. I am not against any tinue what I believe has been the pat- Mr. LEACH. If the gentleman will single institution. I am for everyone tern in the committee which we dealt yield on that point, I think the Con- coming under the same law of the with last year with regard to the ex- gress ought to be made aware that United States. This puts inequality tension of the rules governing credit. under law only five States can have under the law between financial insti- That is, recognize the importance of ILCs. One is Utah, one is California, tutions, ILC versus others, and then be- market forces while at the same time with Utah being the dominant one. But tween types of ILCs. It is really prepos- providing those consumer protections to vote for this approach means that terous. and those public interest protections people from 45 other States are going All I am suggesting to this body is that the market is not designed to do. to see their institutions disadvantaged let us have evenness of law, let us have That is, I think our posture ought to be and devalued based upon our empow- credible law to protect the public, and that the market works, the market is a ering institutions that can only oper- let us also recognize that when you great mechanism for creating wealth ate in five States. It is really a quirk in make it easier for people to tie into the and providing services and creating the law that ought to be thought payment system that are foreign, you goods but that you cannot leave it en- through. are inviting money laundering, among tirely alone, and our job is to try and Mr. FRANK of Massachusetts. Yes, I other things. You are inviting crimi- do such regulation as vindicates impor- understand that. But I would differ nality. You are making it easier for the tant public interests but not to the that they were disempowered. I must national security of the United States point where you might become a bur- tell the gentleman, here we may have to be jeopardized. It is in that context den on the market. This is a bill that some difference. I do not think our that I would say to the committee of tries to fine-tune that sum, that cuts function here ought to be to worry jurisdiction, I am deeply disappointed back in some areas in regulation in about institutions. Our job is to worry that this simple amendment could not ways that I do not think cause trouble. about the economic function that insti- be offered on this floor and, therefore, Let me just address the gentleman tutions perform and what they offer I must oppose this rule. I hesitate to from Iowa for whom everyone in this consumers. oppose rules of my political party, but House has a great deal of respect both I understand that institutions will I have no option except to do so. I have for his own commitment to the legisla- say this puts them at a disadvantage. I to oppose the underlying bill even tive process as a very serious effort and have been dealing with businesses in though there are a number of provi- from his own expertise on the com- America for my 24 years here, in the sions in it that I strongly support. But mittee. I differ with him substantively Committee on the Judiciary with one this jeopardizes the United States pub- on this and we will get into it more set of businesses, in the Committee on lic and the United States national se- when we get into the manager’s amend- Financial Services with another. curity and I am deeply appalled. ment. I did, as my friend from Massa- Economists have downward sloping Mr. MCGOVERN. Mr. Speaker, I yield chusetts said, agree that the amend- curves and upward sloping curves. We myself such time as I may consume. ment ought to be offered. I would have have a downward sloping metaphor. I I just want to commend the gen- voted against it. We debated it fully in am convinced from listening to testi- tleman from Iowa for his comments. the committee. mony all this time that every single Again, I wish that he had the oppor- I do want to just respond briefly. One business in America is at a competitive tunity to offer his amendment because of our differences, I think, between my- disadvantage versus every other busi- I think there were a lot of Members self and the gentleman from Iowa is ness. It is like in Lake Wobegon where who share his concerns. Maybe before that I think he equates not regulation everybody is above average. Here ev- this debate is over with, we can get an by the Federal Reserve to not regula- erybody is below in competitive advan- explanation from someone on the Com- tion by anybody else. There is, after tage. Everyone argues that they have mittee on Rules as to why his amend- all, under the existing law regulation, got a competitive disadvantage.

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00007 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.013 H18PT1 H1238 CONGRESSIONAL RECORD — HOUSE March 18, 2004 We are not here to protect institu- want to stress again the fact that there healthy credit unions, providing an ex- tions or to listen, I believe, to com- will be financial institutions that are emption to existing law to allow pri- plaints that, gee, this one is a little un- not regulated by the Federal Reserve, vate insured state-chartered credit fair compared to the other in the way which is nothing new; and leaving aside unions to join a Federal Home Loan it ought to function. We also should ILCs, there are other financial institu- Bank, and increasing the general limit note that in this bill which would allow tions not regulated by the Federal Re- on the term of Federal credit union them to extend to other States, there serve. I know we will debate this later loans from 12 to 15 years. is a new restriction and that is the one because my understanding is when we H.R. 1375 would also remove ineffec- that the gentleman referred to with get to the manager’s amendment, tive regulations governing banks and the grandfathering, the institutions, which is to restrict ILCs to vis-a-vis thrifts. Under the legislation, the pro- any new ones would have to meet a cer- the bill, we will have some opposition hibition on national and State banks tain test, others will have been in ex- from people who think we are being too expanding across State lines to open istence. restrictive. branches would be eliminated, bank The other thing I would mention, But I just wanted to get back to my merger application requirements would though, is this. To the extent that we central theme, and I just would add one be simplified, limits on thrifts for are talking about institutions that are other thing to my friend from Iowa. As small business and auto loans would be not regulated by the Federal Reserve my friend from Massachusetts said, removed, and thrifts would be given but have access to various advantages when I was asked, I said I thought his the same authority as national and that we give banks, there is nothing amendment ought to be in order, and State banks to make investments pri- unique about the ILCs in that regard. the gentleman from the Committee on marily designed to promote commu- There are other banks in this country Rules said that I defer to the Com- nity development. of various sorts that are regulated. As mittee on Rules. That is the wrong In conclusion, H.R. 1375, sponsored by the gentleman knows, we have the Of- verb. Being a man of some awareness of the gentlewoman from West Virginia fice of the Comptroller of the Cur- my surroundings, I often find that I (Mrs. CAPITO), streamlines some of the rency, we have the FDIC, we have the submit to the Committee on Rules. outdated and ineffective regulations Office of Thrift Supervision, we have There is not anything voluntary about that have been hindering the financial State bankers. There are other banks it. That is a fact of life. But I would and business activity of depository in- that do not have Federal Reserve su- say to my friend from Iowa I appre- stitutions. Removing these burdensome pervision. There is a difference between ciate the feeling he has now. I hope the regulations will not only encourage us. I understand there is a view, and next time a rule comes up in which sig- productivity but will also save deposi- the gentleman from his own long years nificant Democratic amendments are tory institutions valuable time and of study and I differ, for example, with restricted that his indignation might money. regard to the Basle Accords inter- carry over a little bit and that he will Mr. Speaker, I urge my colleagues to nationally. Many of us found an over- not necessarily vote for such rules. support the rule so that we may pro- reach by the Federal Reserve. There is What this bill does in summary is to ceed to debate the underlying legisla- a view that says the Federal Reserve is say that we understand the need both tion. the kind of lead regulator and the oth- to have regulation and to keep it up- Mr. MCGOVERN. Mr. Speaker, I yield ers are relegated. I disagree with that. dated so that it meets its public inter- 5 minutes to the distinguished gen- Mr. LEACH. If the gentleman will est requirements and does not become tleman from New York (Mr. WEINER), yield further, what is being established excessive. one of the more thoughtful Members of by this law is the notion that com- Mr. SESSIONS. Mr. Speaker, I yield this House and a member of the Com- parable institutions in 45 States will such time as he may consume to the mittee on the Judiciary. come under Federal law and in five gentleman from Duluth, Georgia (Mr. Mr. WEINER. Mr. Speaker, I want to States will not in a very significant LINDER), from the Committee on Rules. express my gratitude to the Committee area of Federal law and, that is, hold- Mr. LINDER. Mr. Speaker, I thank on Rules for making my amendment in ing company regulation. the gentleman from Texas (Mr. SES- order and to the sponsors of the Finan- SIONS), my friend and colleague, for cial Services Regulatory Relief Act, b 1100 yielding me this time. I rise in support which seems to be an excellent piece of That is really bizarre. We are saying of the rule and urge my colleagues to legislation, although somewhat com- five States will not operate under Fed- join me in approving it. plex for those of us who are not famil- eral law; 45 States will. H. Res. 566 is a structured rule that iar with banking law. Mr. FRANK of Massachusetts. Mr. makes in order a total of six amend- My amendment is both very simple, Speaker, reclaiming my time, I would ments. Of that total, three are spon- very easy for average consumers and differ with the gentleman. There is this sored by Democrats and three by Re- businesses to understand. In fact, I be- problem we have here, which is, cer- publicans. This is a fair and balanced lieve when many of my colleagues are tainly, the notion of grandfathering is rule that will allow the House to work confronted with my amendment, they not unique. If one is doing something its will on a number of different issues, are going to be shocked that what I that might pollute the air in Cali- and this rule should be overwhelmingly proposed to ban is even permitted in fornia, they are subject to different approved by the House. the first place. laws than if they are doing it in Iowa. With respect to the underlying legis- We all know that when someone We do not have this absolute uni- lation, H.R. 1375, it would streamline writes a check to someone, let us say formity. And part of the problem we the regulatory compliance process for they are buying an air conditioner at a have is this: when we decide to change banks, thrifts, and credit unions and local appliance store, they write a laws in any area, banking, pollution, would eliminate or alter outdated, in- check. If they do not have sufficient other cases, we sometimes find that effective, and duplicative regulations. funds to cover that, very often in addi- there are existing patterns in par- Removing existing burdens on deposi- tion to having to make up the funds for ticular States, and we have this di- tory institutions has become even the bounced check, they get a fee from lemma. We do not want to necessarily more necessary since the enactment of the bank. I think many of us can quib- nationalize them, but we do not want the 2001 USA PATRIOT Act which ble about whether that fee is too high to disrupt existing arrangements. So mandates that depository institutions, or not, whether it is fair. However, that the notion in this very diverse country in addition to other functions, focus is reasonable. They have violated the that we will sometimes have a lack of compliance efforts on combating essential rules of the transaction by uniformity is inevitable if we are going money-laundering and terrorist financ- not having enough money in the ac- to be able to legislate sensibly; other- ing. count. wise every time we try to do something Some highlights of H.R. 1375’s provi- What many Americans do not realize new, we will be faced with the notion sions relating to credit unions include is that small business who is selling that we have to uproot what exists. I streamlining procedural requirements them that air conditioner, also when do not think that is a problem, but I do and voluntary mergers between they have the check bounce, they are

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00008 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.015 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1239 out the money. They have lost their air sumer who is the victim of a bounced from Massachusetts (Mr. FRANK). This conditioner because they have already check should have to pay this fee. is obviously a very important issue. turned it over to the customer. But lit- I will be offering an amendment that, Members have strong feelings on both tle known to many Americans is they as I said, I am grateful to the Com- sides. This is the kind of amendment also pay a fee. Banks charge the victim mittee on Rules for making in order that we should have a debate on on the of a bounced check fees in the mag- which will say they simply cannot floor and Members of both sides should nitude of $10 to $25 and in some cases charge this fee. This is one that is not be able to vote up or down on. And it is $30. Seventy-five percent of all banks fair. I do not care if they disclose it in not like we do not have the time. Ac- in the country charge this fee to the bold print, it is simply not fair, and cording to the schedule that the major- victim. We may hear arguments that, anyone who believes it is have them ity put out today, we are going to be well, it costs us some money for the come to this floor and say during this out of here by three o’clock. I do not transaction. I do not dispute that. In debate that we believe it is fair. It has think this would take very much time. fact, the person who is bouncing the no more connection to the person who They do not want to deal with issues check is paying a fine. What is unique received that check than it is to some- of substance. We cannot deal with the about this practice that my amend- one walking by the bank that day, extension of unemployment benefits. ment seeks to ban is it takes a cus- charging them the fee. There is no con- We cannot deal with a trade bill to stop tomer who has done nothing wrong, nection with what they did either, sanctions against U.S. products. I do they have followed every single rule of other than being in the wrong place at not know where the transportation bill their bank, every single rule of trust, the wrong time. is or health care bills or anything else, every single rule of good faith, and If the banking community believes but we do have this bill on the floor. there is no way they can avoid this that they need additional money to We do have the time. And it just seems fine. And who is getting it? Average pay for these transactions, there are to me to be somewhat puzzling that consumers get it from time to time plenty of ways that they can deal with they could not find it within their wis- when someone purchases something this. They can charge more at the front dom last night as the majority to allow from someone and they accept a check, end. They can have interbank relation- this amendment to come to the floor but more often than not it is small ships that say, You have a customer and for Members to vote up or down on businesses who are victimized. That is that wrote a bad check and we want a it. Maybe it is just because they are in why so many small business groups are few dollars from you to help cover it, the habit of restricting things and clos- in favor of this amendment. The Con- or they can spread out the cost ing things down. sumer Federation of America rep- throughout if it is that substantial, But it just seems to me on a bill that resenting consumers is supportive of which I frankly do not believe it is. is relatively noncontroversial where this amendment. Some estimates say it is as low as 62 the chairman and the ranking member I, frankly, would defy anyone to tell cents, even when the banks themselves have no problem with the gentleman me why the person who received the say that they have a case where some- from Iowa (Mr. LEACH) offering his check should be penalized or sanc- one can test and I want a copy and I amendment, I do not understand why tioned. Do not argue to me that they want to debate it; even that only costs the Committee on Rules has such a big need to be disincentivized or discour- them $4 or $5 or $6. The simple fact is problem. And I think it is unfortunate, aged from accepting a check. Believe this is a way that victims are victim- and I think Democrats and Republicans me, no one intentionally takes a bad ized again, and I urge support of the need to continue to point out the un- check. They are already harmed in Weiner amendment. fairness of this process. We can do many ways. Do not tell me that there Mr. MCGOVERN. Mr. Speaker, I yield much better. And on bills like this, is money that it costs to process the myself such time as I may consume to there is absolutely no reason why this transaction. That could very well be close for our side. should not have been a wide-open rule. the case. The only point I am making Let me just again get back to the We could have handled this in a reason- is why should the person who has al- issue of the rule. I understand that able period of time, and we could have ready been harmed once be harmed there may be occasions for rules to respected all the Members of this again? come before the Members of this House House, both Republican and Democrat; And perhaps the worst possible rea- that are not completely open, and the and I just think it is unfortunate that son is the one that underlies all of the majority does after all have the respon- this is becoming a trend in the Com- opposition to this amendment to the sibility of making sure that this House mittee on Rules. extent that there is any. Banking insti- runs, that the legislative agenda moves We only had one open rule this year, tutions said, Hey, Congressman forward. And I would prefer that any notwithstanding all the great speeches WEINER, we make a lot of money on rules that come to the floor that have those guys give about how they are this. That is not a good enough reason. any kind of restrictions in them be committed to openness. This is not Frankly, the rules of the banking sys- done in consultation with the chair- how we should be doing this, and I tem, like any rule, like any law, should man and ranking members of the ap- apologize to the gentleman from Iowa provide people fundamental rules of propriate committees and subcommit- (Mr. LEACH) and others who did not the road, should provide disincentives tees. have their amendments made in order to do something bad, should punish But here we have a situation where last night, but I hope in the future that someone who does something bad; and the ranking member of the Committee we do better. at the end of day in the final analysis on Financial Services and the chair- Mr. Speaker, I yield back the balance if they are a good citizen, a good con- man of the Committee on Financial of my time. sumer, they should be able to avoid the Services said that they had no prob- Mr. SESSIONS. Mr. Speaker, I yield sanction. lems with the amendments that were myself such time as I may consume. In the case of this fee, there is no being offered last night; and specifi- Mr. Speaker, the gentleman from way that any of those four things cally in response to a question by me Massachusetts does raise many very apply. They cannot avoid the fee. They regarding the gentleman from Iowa’s important points including that the cannot do anything. They can ask, I (Mr. LEACH) amendment, they said distinguished chairman, former chair- want to see ID, I want to see their driv- they had absolutely no problem with man, of the banking committee did ap- er’s license. You cannot even call up his offering that amendment on the pear before the Committee on Rules the bank and say, hey, does Mr. Smith floor today. And I do not understand last night. The gentleman from Iowa have enough money in his account, be- why the majority of the Committee on (Mr. LEACH) is a very valuable and im- cause privacy laws now prohibit releas- Rules decided last night to cut the gen- portant and thoughtful member of our ing that type of information. Simply tleman from Iowa (Mr. LEACH) out of conference. The fact of the matter is put, there is no rational reason why the process. the Committee on Rules has, in our the victim, the small business that is There has been a very interesting own judgment, a lot of things which we the victim, should have to pay this fee, dialogue between the gentleman from consider on a regular basis, and some and there is no reason why the con- Iowa (Mr. LEACH) and the gentleman of those things do deal with whether a

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00009 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.018 H18PT1 H1240 CONGRESSIONAL RECORD — HOUSE March 18, 2004 person chose to have a vote in the com- other banks or bank holding companies. Al- under this legislation play a vital role in the mittee of jurisdiction or not. The fact though no amendment was offered at the lives of many individuals and corporations who of the matter is that the gentleman did Committee, we feel that this provision should receive their services. not request a vote in the committee of be struck from the bill. In the case of the recent JP Morgan and jurisdiction that he came from. Community organizations have raised con- Bank One merger, Bethel New Life, Inc. ex- cerns about this provision, which reduces to pressed on the Federal Reserve Board’s b 1115 five days the pre-merger, mandatory 15-day record the fact that this transaction had a tre- And we felt like that in the interests waiting period with the Attorney General’s ap- mendous impact on the Chicago area. It was of us moving things on the floor, that proval. During the course of a bank merger explained that the loss of a bank headquarters it would be best in this circumstance process, both the Federal financial supervisory would result in job loss, less civic interest and to let the committee of jurisdiction agency and the Department of justice review commitment, and less detailed knowledge of speak on that matter. They chose not the merger proposal for competitive concerns. the local community. Furthermore, there would to; the gentleman chose not to. We do After a Federal Banking agency approves a be less interaction between senior bank staff not always feel that bringing it to the merger, DOJ has 30 days to decide whether and the variety of people involved in commu- floor is the correct place. to challenge the merger approval on antitrust nity development in underserved communities. Mr. MCGOVERN. Mr. Speaker, will grounds. At a minimum, the merging banks A bank, merger if the bank is willing, may give the gentleman yield? must now wait 15 days before completing their community groups the opportunity to engage Mr. SESSIONS. I yield to the gen- merger. Currently, banking law allows third in discussion with the bank(s) about future tleman from Massachusetts. parties, other than Federal banking agencies community reinvestment goals. The Jackson- Mr. MCGOVERN. Mr. Speaker, I am or DOJ, to file suit during the post-approval Lee Amendment No. 9 seeks to ensure that just trying to figure all of this out be- waiting period. As proposed, section 609 this kind of respect for the underserved com- cause, in the past, the Committee on would reduce the minimum 15-day waiting pe- munities remains intact with sufficient Con- Rules has used the excuse that Mem- riod to 5 days when DOJ indicates it will not gressional oversight. bers have brought amendments up in file suit challenging the merger approval order. While this legislation purports to facilitate their relevant committees of jurisdic- This provision is anti-Community Reinvest- the work of lending institutions by allowing tion and they have not passed, so ment Act, CRA, and strips the organizations’ them and other depository banks to devote therefore we should make them in right to seek judicial review of Federal bank more of their resources to the business of order. Now you are saying that because merger approval orders. Without such review, lending, section 607 makes it possible for he did not, the gentleman from Iowa community organizations will be deprived of some transactions to escape very important did not bring his amendment up in his impartial means and mechanisms for ensuring scrutiny. committee of jurisdiction, that it that CRA performance obligations are taken As we see in the recent merger of J.P. Mor- should be made in order. So I do not into account when considering merger approv- gan Chase & Co., JPMCC, and Bank One understand. als. Community-based organizations use such Corporation, the capture of large portions of Mr. SESSIONS. Mr. Speaker, re- suits to obtain information about the merger consumer markets in quick and easy trans- claiming my time, as a matter of fact, and ensure that the merger will not result in actions allow many individual and corporate the gentleman is correct. But there are disproportionate branch closures in low-in- customers to experience a negative impact of circumstances many times related to come or minority communities. These organi- the transaction. The consolidation of the fi- how close a vote is, whether it is con- zations play an important role in the public in- nance industry so rapidly allows institutions to troversial; there are a number of things terest. The mandatory 15-day waiting period exclude large parts of their activities from re- which identify that as what we might should remain intact and section 609 should quirements set forth in the Community Rein- call or term a jump ball. It is impor- be removed from the bill, if passed today. vestment Act, CRA. CRA has been instru- tant at various times for the Com- My amendment, number 9, would amend mental in increasing affordable housing, and mittee on Rules to look at and to section 607 of H.R. 1375 as drafted. The spe- making sure that banks throughout this coun- weigh those things which we believe cific language of this amendment reads: try play a more responsible role in their com- are important to the efficiency of the SENSE OF CONGRESS.—It is the sense of munities. The CRA is working extremely well use of this time on the floor. Congress that, when a requesting agency re- and must not be weakened by provisions such In this case, we made a determina- quires expeditious action on an application as those found in section 607. Instead of di- for a merger transaction, consideration tion as to what we were going to do. minishing the CRA and other oversight tools should be made as to the impact the merger that are in place, we must strengthen them. If We have made 3 Democrat amendments transaction will have on corporate and indi- in order, we have made 2 Republican this legislation passes as drafted, potentially vidual customers in an effort to ensure that fewer people will realize the dream of home- amendments and a manager’s amend- no harmful effects will result from the merg- ownership, fewer small businesses will get off ment in order. I believe that the time er transaction. the ground, fewer jobs will be created, and which we took yesterday in the Com- This amendment, while very substantive, is fewer neighborhoods will be rebuilt. mittee on Rules was appropriately also a less intrusive attempt to ensure that the The CRA was enacted in 1977 to address done by the young chairman of the emergency expedited application process for these concerns by requiring banks to make Committee on Rules, the gentleman merger transactions called for in section 607 loans in neighborhoods where they collect de- from California (Mr. DREIER), and I am of this legislation will not allow applicants to posits. very proud of what we have done. harm customers and/or communities with the Section 607 as drafted could allow for the Mr. Speaker, I urge my colleagues to increased share of the respective market that virtual elimination of the oversight authority join me in supporting this rule and the will result from the transaction formed, as conferred through measures such as the Com- underlying legislation. compared to my other amendment, Jackson- munity Reinvestment Act relative to Houston Ms. JACKSON-LEE of Texas. Mr. Speaker, Lee No. 9. Under this ‘‘sense of Congress’’ businesses and individuals, as most of the au- I rise in support of the rule as reported out of provision, Congress will make clear its intent thority will be vested in New York and diverted the Committee for H.R. 1375. While portions to retain an important degree of oversight over from Houston. Significant Community Rein- of this bill that fall under the jurisdiction of the the expedited process provided for in section vestment dollars are necessary for home Judiciary Committee came for review and 607 as drafted. The import of this amendment loans for minorities, the development of afford- analysis, I generally supported the version of only spells out what should already be inher- able housing, small business loans for minori- H.R. 1375 as reported out of the Committee; ent in the operation of our Federal Reserve ties, procurement opportunities for minority however, I shared one reservation about a Board. It is clear, however, that such a provi- businesses, community lending for minorities, provision that was not addressed at the Com- sion is necessary because so many individ- and community investment for industrial, com- mittee markup. Section 609 of H.R. 1375 uals and communities are suffering from dis- mercial and social facilities in minority commu- amends section 11(b) of the Bank Holding parate treatment by lending institutions. nities. It is absolutely essential that you thor- Company Act of 1956, 12 U.S.C. 1849(b), and When we allow expedited review of a cor- oughly examine this merger in order to ensure section 18(c)(6) of the Federal Deposit Insur- porate act so substantial as a merger and of that proper conditions are made to mitigate ance Act, 12 U.S.C. 1828(c)(6), by reducing an act that will affect so many consumers, we the imminent adverse affects on Houston’s mi- the minimum waiting period from 15 calendar must be very careful in conferring latitude to nority community. days to 5 calendar days for banks and bank institutions or in curtailing our own oversight The CRA is only enforced in connection with holding companies to merge with or acquire authority. The banking institutions covered banks’ merger and expansion applications as

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00010 Fmt 4636 Sfmt 9920 E:\CR\FM\K18MR7.019 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1241 is the subject of section 607. The Federal Under the rule, the gentleman from their customers, the committee began bank regulatory agencies periodically evaluate Ohio (Mr. OXLEY) and the gentleman during the last Congress to try to iden- banks for their compliance with CRA and as- from Massachusetts (Mr. FRANK) each tify regulatory or statutory require- sign them one of four ratings: Outstanding, will control 30 minutes. ments that could have outlived their Satisfactory, Needs to Improve or Substantial The Chair recognizes the gentleman useful purpose and could be eliminated Non-Compliance. In 1998, the agencies rated from Ohio (Mr. OXLEY). without any adverse affects on the over 98 percent of banks as either Out- Mr. OXLEY. Mr. Chairman, I yield safety and soundness of the banking standing or Satisfactory, despite that fact that, myself 5 minutes. system or on basic consumer protec- for example, the banking industry has contin- Mr. Chairman, I am pleased to bring tions. H.R. 1375 is the end result of that ued to deny the mortgage loan applications of to the floor today H.R. 1375, bipartisan process. African Americans and Latinos twice as fre- legislation making a number of The legislation, which enjoyed bipar- quently as those of whites. Thanks to data- changes to Federal banking, thrift, and tisan support in the Committee on Fi- bases compiled under the Home Mortgage credit union laws that will enable these nancial Services, reflects significant Disclosure Act, HMDA, data are made avail- sectors of the financial services indus- contributions from several members of able to show stark statistics about loan ap- try to operate more productively and the committee. For example, the bill provals and loan denials that banks are re- provide a higher level of service to incorporates legislation authored by quired to make public each year. their customers. the gentleman from California (Mr. Mr. Chairman, I urge my colleagues to sup- I want to begin by recognizing the ef- OSE) which would permit credit unions port Jackson-Lee No. 9 and support the legis- forts of the principal sponsor of this to offer check-cashing and wire trans- lation with this amendment and that of Mr. legislation, a valued member of the fer services to individuals who are not OXLEY. Committee on Financial Services, the members of the credit union, but are Mr. SESSIONS. Mr. Speaker, I yield gentlewoman from West Virginia (Mrs. within its field of membership, thereby back the balance of my time, and I CAPITO), as well as her primary demo- promoting alternative sources of bank- move the previous question on the res- cratic cosponsor, the gentleman from ing services for many low- and mod- olution. Arkansas (Mr. ROSS). In putting to- erate-income Americans. An important The previous question was ordered. gether this legislation, the gentle- amendment offered in committee by The resolution was agreed to. woman from West Virginia (Mrs. the gentleman from Oklahoma (Mr. A motion to reconsider was laid on CAPITO) and the committee consulted LUCAS) would greatly improve coordi- the table. extensively with the Federal banking nation between home and host State f and credit union regulators, as well as supervisors of State-chartered banks affected private sector parties, to fash- that operate branches in multiple REMOVAL OF NAME OF MEMBER ion a package that, by removing AS COSPONSOR OF H.R. 3800 States. unneeded or outdated legal restric- I also want to commend the gen- Mr. LINDER. Mr. Speaker, I ask tions, helps to maintain the competi- tleman from Ohio (Mr. GILLMOR) and unanimous consent to have my name tive standing of the U.S. banking and the ranking member, the gentleman removed as a cosponsor of H.R. 3800. financial services system that has no from Massachusetts (Mr. FRANK) for The SPEAKER pro tempore (Mr. equal in the world. their hard work in crafting a com- LAHOOD). Is there objection to the re- In the aftermath of the September 11 promise on an issue that was the sub- quest of the gentleman from Georgia? terrorist attacks on America, Presi- ject of spirited debate in the com- There was no objection. dent Bush and this Congress have mittee: the extent to which certain f called upon the financial services in- commercially owned industrial loan GENERAL LEAVE dustry to play a major role in the ef- companies, which are insured deposi- fort to starve al Qaeda and like-minded tory institutions chartered in a hand- Mr. OXLEY. Mr. Speaker, I ask unan- organizations of the funds they need to ful of States, should be permitted to imous consent that all Members may inflict terror on the civilized world. exercise the new branching authority have 5 legislative days within which to Title III of the USA PATRIOT Act en- provided for in section 401 of the bill. I revise and extend their remarks on acted shortly after the September 11 will offer a manager’s amendment later H.R. 1375 and to insert extraneous ma- attacks imposes a host of new man- today that incorporates the good work terial thereon. dates and due diligence requirements The SPEAKER pro tempore. Is there of the gentleman from Ohio (Mr. on financial institutions designed to objection to the request of the gen- GILLMOR) and the ranking member on identify and block the movement of tleman from Ohio? this difficult issue. terrorist funds through the global fi- Finally, I want to thank the gen- There was no objection. nancial system. Committee on Finan- tleman from Alabama (Mr. BACHUS), f cial Services has conducted extensive the chairman of the Subcommittee on FINANCIAL SERVICES oversight on the implementation of Financial Institutions and Consumer REGULATORY RELIEF ACT OF 2003 title III, and I think I speak for many Credit, for quarterbacking this effort The SPEAKER pro tempore (Mr. members of the committee in applaud- in his subcommittee and helping to WALDEN of Oregon). Pursuant to House ing the seriousness and sense of com- shepherd it through the full com- Resolution 566 and rule XVIII, the mitment with which the financial serv- mittee. Chair declares the House in the Com- ices industry has gone about fulfilling Thanks to hard work of the gentle- mittee of the Whole House on the State the front-line responsibilities it has woman from West Virginia (Mrs. of the Union for the consideration of been asked to assume in the financial CAPITO) and the gentleman from Ari- the bill, H.R. 1375. war against terrorism. zona (Mr. ROSS) and many other mem- Shouldering these burdens is not bers of our committee, the House will b 1119 without significant costs, of course. have an opportunity to vote later IN THE COMMITTEE OF THE WHOLE The changes made by the PATRIOT today on legislation that improves the Accordingly, the House resolved Act require banks and other depository productivity and efficiency of our fi- itself into the Committee of the Whole institutions to devote significant com- nancial services industry. A vote for House on the State of the Union for the pliance resources to monitoring and ex- this bill is a vote to allow banks, consideration of the bill (H.R. 1375) to amining transactions, verifying the thrifts, and credit unions to channel provide regulatory relief and improve identities of new customers, and re- their resources away from complying productivity for insured depository in- sponding to inquiries by law enforce- with unneeded regulatory mandates stitutions, and for other purposes, with ment authorities seeking to track ter- and toward making loans and providing Mr. LAHOOD in the chair. rorist finances through the U.S. bank- other financial products and services to The Clerk read the title of the bill. ing system. Both as a way of offsetting consumers and to their small business The CHAIRMAN. Pursuant to the these new expenses and freeing institu- customers, which can only help fuel rule, the bill is considered as having tions to devote sufficient resources to economic growth in local communities been read the first time. PATRIOT Act compliance and serving across this country.

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00011 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.026 H18PT1 H1242 CONGRESSIONAL RECORD — HOUSE March 18, 2004 I strongly urge my colleagues to sup- have worked very closely with a num- Mr. BACHUS. Mr. Chairman, I thank port this bipartisan piece of legisla- ber of entities that are advocates for the chairman for yielding me this tion. low- and moderate-income people in time. Mr. Chairman, I reserve the balance the area of housing and in the area of Mr. Chairman, the financial services of my time. small business and community devel- industry spends a great deal of time Mr. FRANK of Massachusetts. Mr. opment, because I do not think the and a great deal of money every year Chairman, I yield myself such time as market itself will take care of those. In complying with outdated and ineffec- I may consume. other areas, in customer service, I tive regulations. That is money that Mr. Chairman, I want to express my think you can rely more on the mar- could be loaned to consumers and in- appreciation to the chairman of the ket. There are competing institutions dustries to buy new cars, new homes, committee and the chairman of the that will try to steal customers away. new factories, new businesses, and that subcommittee, because this is another That is a good thing because, in the is what this bill is all about. It is also, example of where we have been able to area of customer service, there will be as the chairman correctly said, deliv- work in a cooperative way. We do not competition. In areas where we are ering on a promise that this Congress agree on everything, but our method of talking about lower-income people, made these same institutions, when we operation allows us to refine our dis- competition does not do it, and we imposed title III of the PATRIOT Act, agreements and to present to the have to try to intervene. and also the Sarbanes-Oxley account- House some legitimate policy disagree- What we need to do is to recognize ability measures. We told them that we ments, but in a form and in a context the importance of regulation but, at would come and follow that with legis- that does not interfere with our ability the same time, make sure that we do lation to compensate them for that to go forward where there is consensus. not regulate unnecessarily, because cost. There will be two amendments that there are regulatory costs. I do not ob- b 1130 we will be debating. The gentleman ject to regulatory costs if they are es- And in that regard, as the chairman from Alabama will offer one, which I sential to achieving an important pub- so well put, I want to commend the fi- plan to oppose, that would reject a re- lic purpose. Where they can be shown nancial institutions in this country for quest from the FDIC to make it easier not to have that relationship, they helping starve al Qaeda and other ter- for them to proceed against people in ought to be removed. We ought to also rorist organizations. They have done the banking area that they think have try to pick among various regulatory an excellent job of cutting off the flow, been negligent. The gentleman from approaches until we get the one that not only to the terrorist organizations New York (Mr. WEINER) will be offering gives us the most benefit for the least but also to narcotics traffickers and an amendment that I think protects cost. This bill is, on the whole, an ef- other criminal organizations, which is consumers. I feel strongly in favor of fort to do that. that one. Other than that, I believe we another benefit of these new money The chairman mentioned that in the have agreement at the committee laundering legislations that this Con- controversial area of industrial loan level. I want to emphasize, and I must gress put on the financial institutions. corporations, we heard the forceful say I am very hopeful that the Weiner So it has had a very positive effect statements of the gentleman from Iowa amendment will be adopted, but we even on some areas that we might not who thinks that we should be more re- will have to see what happens. have anticipated. strictive. We have Members who rep- I just want to reiterate my view that Secondly, I would like to commend resent particularly States where the this reflects what I think ought to be the ranking member, the gentleman ILCs have played a major role, Cali- our approach; namely, we start with from Massachusetts (Mr. FRANK). I fornia and Utah in particular, who are respect for the market and an under- would like to commend him for work- represented in our committee, who standing that the free market is the ing closely on this legislation. We talk think we have been too restrictive. The best way to make our economy pros- about bipartisanship in this body. This gentleman from Iowa (Mr. GILLMOR) per. Particularly in the financial area committee, under the chairman, the took the lead, and I was glad to work that our committee has jurisdiction gentleman from Ohio (Mr. OXLEY) and with him, in using a formula we had over, the role of the institutions as the ranking member, the gentleman previously adopted in the Congress; intermediaries in garnering the finan- from Massachusetts (Mr. FRANK), has namely, that to be a financial institu- cial resources that are then made achieved on more than one occasion, on tion you should be 85 percent financial available to the people who do the pro- many occasions, a bipartisan spirit of in your revenues, and we have used duction of goods and services, that is cooperation which I think ought to be that as a screen for the additional enti- very important; and it is our obligation the model for other committees in the ties that might be entering the ILC to make sure that that can be done Congress as a whole. So I commend field. I think that is a reasonable com- with the maximum efficiency. both these gentlemen. At the same time we recognize, many promise. I think that will protect the I would like to commend the two of us, that the market is not perfect. It public interests, while continuing to sponsors of this bill, the gentlewoman allow consumer choice, and I congratu- does well what it is supposed to do, but from West Virginia (Mrs. CAPITO). She there are areas of importance in our late the chairman and others for cre- has done an excellent job. I would also life that the market does not deal with. ating the context in which we could like to commend the Democratic mem- There are also inevitable tendencies in work that out. ber of the committee who offered this any institution, government, the pri- I know we will be proceeding to de- legislation, and that is the gentleman vate sector, the nonprofit sector, to do bate on a couple of controversial issues from Arkansas (Mr. ROSS). things that if there were constraints, it and, as I said, I think this is a good Finally, I would like to call special should not do. That does not mean that overall bill, but Members may be wait- attention to the legislation of the gen- they are evil or that they are dysfunc- ing to see what happens on some of the tleman from Oklahoma (Mr. LUCAS), tional; it just means that human na- amendments to make their final judg- the provisions within this legislation ture being what it is, no entity ought ment. which will greatly improve the coordi- to be able to function without some re- Mr. Chairman, I reserve the balance nation between home and host State straints. of my time. supervisors of State-chartered banks. So our job is to provide for consumer Mr. OXLEY. Mr. Chairman, I am When State-chartered banks branch be- protection in particular, which the pleased to yield 5 minutes to the gen- yond State lines, there is a great need market itself would not automatically tleman from Alabama (Mr. BACHUS), for the bank supervisors to coordinate do. Let me check that. In some areas I the chairman of the Subcommittee on in the supervision. And I think this is think we can rely on the market in the Financial Institutions and Consumer a long overdue provision. consumer area. There is a major merg- Credit. I would also like to commend the er, or a major sale in New England (Mr. BACHUS asked and was given gentleman from Massachusetts (Mr. going on now where Fleet Boston is permission to revise and extend his re- FRANK) and the gentleman from Ohio being bought by Bank of America. I marks.) (Mr. GILLMOR) for working out, I think,

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00012 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.023 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1243 an excellent compromise on this ILC capitals across the country are created equal. their own account highly rated invest- provision, their compromise, the wide- Some are overly burdensome, unnecessarily ment securities. They will be able to spread almost unanimous support of costly, or largely duplicative of other legal re- provide check cashing and money the committee. There are Members quirements. Where examples of such regu- transfer services to nonmembers with- who this morning have protested it. latory overkill can be identified, Congress in their field of membership. The gentleman from Iowa (Mr. should act to eliminate them. These changes, along with others, LEACH) had offered on another bill the The bill that Congresswoman CAPITO and such as easing the process for vol- way he wanted to address this. The Congressman ROSS have introduced—and untary mergers, will help credit unions committee on the bank interest bill ac- that I am proud to cosponsor along with Chair- diversify their portfolios and provide tually rejected that idea, competing man OXLEY—contains a broad range of con- more services to individuals and the idea, by a vote of 50 to 8. So this has structive provisions that, taken as a whole, will communities that they serve. been an issue that has been debated on allow banks and other depository institutions The ever-changing dynamics of the prior occasions. to devote more resources to the business of financial service industry demands Finally, I would like to say that this lending to consumers and less to the bureau- that from time to time this committee is a regulatory relief bill, not a regu- cratic maze of compliance with outdated and review the existing laws and take ac- latory burden bill. For that reason, I unneeded regulations. Reducing the regulatory tion where required, not just to in- will be offering an amendment to take burden on financial institutions will also lower crease the laws as we often do, but to and strike section 614 which equates the cost of credit for consumers. adjust and even eliminate archaic laws independent contractors who do busi- In closing, let me once again commend Mrs. that may be hindering the success of ness with the bank, whether they be at- CAPITO and Mr. ROSS for this important legis- our financial industry. I believe that torneys, whether they be accountants, lative as well as the full committee chairman, this is just what we have done with whether they be appraisers, whether Mr. OXLEY. The chairman has demonstrated a this regulatory bill, a bill that has a they be real estate agents, all sorts of strong commitment to getting regulatory relief little bit of something for everyone. Mr. OXLEY. Mr. Chairman, I yield 4 independent contractors, which legislation enacted this year. I look forward to minutes to the gentlewoman from West equates them with having the same working with him to help accomplish that ob- Virginia (Mrs. CAPITO), the lead spon- knowledge of banking operation as in- jective. siders. That is simply not the case. Mr. FRANK of Massachusetts. Mr. sor of this important legislation. (Mrs. CAPITO asked and was given And, in fact, I believe strongly that in Chairman, I yield such time as he may permission to revise and extend her re- these cases they ought to have the consume to the gentleman from New marks.) right to a jury trial, to a full hearing. York (Mr. MEEKs), a very hard working Mrs. CAPITO. Mr. Chairman, I want But if we do not strike section 614, member of this committee. to thank my colleague, the gentleman any accountants, any attorney, any re- Mr. MEEKS of New York. Mr. Chair- from Arkansas (Mr. ROSS), for spon- altor, any appraiser who does business man, let me begin by congratulating soring the Regulatory Relief Act of with the bank, will be subjected to hav- the leadership, the gentleman from 2003 with me. He has been very instru- ing the same knowledge as an insider. Ohio (Mr. OXLEY) and the ranking mental in bringing this much-needed Simply not the case. I think we all member, the gentleman from Massa- legislation to the floor. I also want to agree they do not have that same chusetts (Mr. FRANK) on this great bill. thank the gentleman from Alabama It proves that when Democrats and knowledge. And I oppose the Weiner (Mr. BACHUS) and the ranking member, amendment which is a regulatory bur- Republicans sit down and talk and the gentleman from Massachusetts work together, we really can come to a den amendment. (Mr. FRANK), and especially the gen- consensus. And the leadership of this Mr. Chairman, I rise in strong support of tleman from Ohio (Mr. OXLEY) for shep- H.R. 522, the Financial Services Regulatory committee should be applauded in a herding this bill through the process, it Relief Act of 2003. way that this bill, this important bill has been a process, and their strong I want to begin by thanking Chairman OXLEY has gone through the committee. And I leadership on the committee. for the tremendous leadership he has shown thank both the ranking member and With the passage of the Gramm- in steering this complex bill through the legis- the chairman. Leach-Bliley Act, the U.S. PATRIOT lative process. I also want to thank the ranking My position has never been to favor Act, and the Sarbanes-Oxley Act, Con- member of the committee, Mr. FRANK, for his one depository institution charter over gress has imposed sweeping reforms support of this important piece of legislation. another but, instead, to support poli- and multiple new mandates on the fi- This bipartisan legislation, introduced by our cies that give each charter the best op- nancial services industry. While I firm- colleagues on the subcommittee, Mrs. CAPITO portunity to be competitive and im- ly believe that these new laws have and Mr. ROSS, reflects a commonsense ap- prove service delivery to their business strengthened this important sector of proach to easing regulatory burdens imposed and individual constituents. our economy, such sweeping reforms do on our nation’s depository institutions. H.R. It is my assertion that H.R. 1375, the not come without a cost, a cost that is 1375 is largely a product of recommendations regulatory relief bill, does just that for ultimately paid for by every American that the committee has received over the last national banks, savings institutions, who writes a check, saves for their re- several years from the Federal and State fi- and credit unions, all of whom are vital tirement, or simply purchases gro- nancial regulators. to the financial health of this Nation ceries with a credit card. The legislation has strong bipartisan support and the provision of financial services The gentleman from Arkansas (Mr. and was approved by the Financial Services to businesses and individuals nation- ROSS) and I introduced this bill to re- Committee by a unanimous voice vote. It is wide. store regulatory balance. While Fed- supported by a host of interested parties, in- For national banks, the bill eases eral regulations play an important role cluding the Financial Services Roundtable, certain restrictions related to direc- in protecting consumers, instilling con- America’s Community Bankers, the National tors, provides for flexibility in declar- fidence and ensuring a level playing Association of Federal Credit Unions, and the ing dividends, and makes it easier to field, overregulation can depress inno- Credit Union National Association. expand through intrastate branching vation, stifle competition, and actually The banking industry estimates that it or mergers with State banks. retard our economy’s ability to grow. spends somewhere in the neighborhood of For savings institutions, the bill pro- Periodically reviewing and ques- $25 billion annually to comply with regulatory vides more flexibility to provide auto- tioning the regulations put into place requirements imposed at the Federal and mobile loans and leases for personal over time will ensure that as industries State levels. A large portion of that regulatory use. It also eliminates the limitation and technologies change, so too will burden is justified by the need to ensure the on small businesses, lending based on the rules that govern them. safety and soundness of our banking institu- percentage of assets. These changes, This bipartisan legislation will roll tions; enforce compliance with various con- among others, will greatly allow sav- back several outdated and burdensome sumer protection statutes; and combat laun- ings institutions to increase the diver- mandates while also providing new dering and other financial crimes. sity of their lending portfolios. commonsense provisions that together However, not all regulatory mandates that Federally chartered credit unions will benefit the financial services in- emanate from Washington, DC, or other State will be able to purchase and hold for dustry and their consumers.

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00013 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.025 H18PT1 H1244 CONGRESSIONAL RECORD — HOUSE March 18, 2004 To promote efficiency our bill allows This language builds on the impor- ers; and then we are going to be put- the FDIC the flexibility to rely on new tant modernization of financial serv- ting in a very intriguing way inequity technology to store records electroni- ices that Congress has worked on in re- between the charters, that is, those cally, streamlines the merger applica- cent years. It lifts the prohibition on that have existed for a while will have tion process, and gives examining agen- the payment of interest on business more rights than those industrial loan cies the discretion to adjust the exam checking accounts after a 2-year phase- companies that will be empowered cycle so their resources can be used in. During the phase-in, banks may in- later. most efficiently, among very many crease sweeps to interest-paying ac- I would only like to stress to my col- other revisions in the regulatory proc- counts to 24 intervals per month. leagues, because there is some mis- ess. The prohibition on interest on both understanding here, that one of the We provided enhanced consumer pro- consumer and business accounts was theories of the grandfather is to block tection by prohibiting a person from enacted during the Great Depression. a particular institution from getting working at a bank who has been con- At the time it was enacted to limit an industrial loan company charter victed of a breach of trust and by al- competitive pressures to pay higher in- with full powers, which by the way in- lowing interagency data sharing to en- terests that were feared could lead to dicates that those full powers are very sure that a lack of information does bank failures. Today given the global significant. That particular company is not result in malfeasance. nature of financial services, interstate unpopular with some of its competitors H.R. 1375 strikes a balance that will banking and many advances in tech- in the financial services industry. It is help the financial services community nology, interest payment limits only unpopular with organized labor. So thrive, compete, and offer the best distort competition and force busi- there is a grandfather provision services to their customers. Again, I nesses to seek out alternative interest against that company; but the intrigu- want to thank the ranking member and bearing opportunities. ing aspect of it is, it is a very enfeebled our chairman and the gentleman from The prohibition on paying interest on grandfather provision. Alabama (Mr. BAUCUS) and the other consumer checking accounts was re- It is enfeebled because it gives the Members for the bipartisan nature of pealed by Congress more than 20 years States the power of interpretation. which this bill has been brought to the ago and has not increased any concern There is no tie-in to Federal statute; floor. about safety and soundness. Today the and so any new company can get a new I urge my colleagues’ support. ILC charter, can buy an existing ILC Mr. FRANK of Massachusetts. Mr. House, once again, takes an important charter. Then there are rules about Chairman, I yield 5 minutes to the gen- step forward in offering this same ben- changing control, but States have dif- tlewoman from New York (Mrs. efit to the business community. Importantly, this language will dis- ferent change-of-control statutes. MALONEY), a very able member of our Some change of control is 25 percent subcommittee, the ranking member of proportionately benefit small busi- ownership; some over 80 percent owner- the Subcommittee on International nesses. Small businesses must keep ship. So a company can buy an existing and Domestic Monetary Policy. money in checking accounts to meet Mrs. MALONEY. Mr. Chairman, I payrolls and pay expenses. They are charter and take on all the powers of thank the gentleman from Massachu- less likely to have complex financial an ILC under the pre-grandfather pro- visions, even though there appear to be setts (Mr. FRANK) for yielding and for arrangements that will allow them to his leadership. get around interest restrictions. in this statute certain restrictions, for I rise in support of the financial serv- The legislation also allows the Fed- example, that relate to a percentage ices regulatory relief legislation. This eral Reserve to pay interest on sterile that is financial in nature of their cur- bill is the subject of several years of accounts. These are reserves private rent operating business. All this is work and I thank the sponsors, the banks hold at the Federal Reserve being interpreted by State government gentlewoman from West Virginia (Mrs. which the Fed can manipulate as a tool which has a vested interest to give CAPITO) and the gentleman from Ar- of monetary policy. And this provision charters rather than to stop charters kansas (Mr. ROSS) for their hard work. is endorsed by Federal Reserve Chair- because it means more jobs for their I especially want to thank them for man Alan Greenspan. States. the inclusion of an amendment that I I support the legislation. I urge my The history of the ILC is that they offered in committee with my col- colleagues to support it. were small institutions until 1987 when league, the gentleman from Oklahoma Mr. OXLEY. Mr. Chairman, I yield 5 Congress, without much forethought, (Mr. LUCAS). This amendment prohibits minutes to the gentleman from Iowa exempted them from the Bank Holding nonchartering States from unilaterally (Mr. LEACH), the distinguished former Company Act; and so the largest ILC imposing a discriminatory fee against chairman of the committee. charter had been less than $400 million, State-chartered banks from other Mr. LEACH. Mr. Chairman, let me now the largest is $60 billion, and there States. It also strengthens cooperative just say this bill has a number of very are eight above a billion in size. If we agreements among the States for su- commonsense provisions, but in the give ILCs all the powers contemplated pervision of multistate institutions by name of a relatively large number of in this bill, there will be a pell mell giving Federal recognition to the coop- minor commonsense issues, there is run to the ILC charter. erative agreements and requiring char- more than a small measure of regu- This will sweep assets from 45 States tering States to follow them. This lan- latory mischief. to five States. It will breach commerce guage is very important for preserving This bill is about less regulation but and banking in ways that have never the vitality of our dual banking sys- it is also about more imbalance. been breached in modern day, and it tem. will create great pressure to move As for amendments that will be of- b 1145 grandfather dates and change existing fered today, I want to thank my col- It empowers a hitherto largely un- statute in other ways because of the league, the gentleman from New York known charter in America called In- obvious inequities that will almost im- (Mr. WEINER) for his checking amend- dustrial Loan Companies to have all mediately develop within the ILC char- ment. He is a great consumer advocate. the powers of commercial banks and, ter itself. I have some concerns about how the added with one of the amendments that So I would like to suggest to this amendment will work in practice, and I is likely to pass today, a power to not body that this was something that look forward to working with him on only branch in all 50 States, but to do could be handled very simply, credibly, this as the process goes forward. checking in a business kind of way, and that is simply to put ILCs like I also want to indicate my strong something ILCs were not hitherto em- most other financial institutions of support for the Kelly-Toomey amend- powered to do. any size under the Bank Holding Com- ment. This language tracks legislation We will be giving five States in pany Act; but because of insider power, that the gentlewoman from New York America the right to offer a charter that amendment was not even allowed (Mrs. KELLY) and I passed on the floor with less regulation than 45 States. We to be considered on this floor, and I of this Congress earlier this year in the will be putting an inequity in law that cannot tell my colleagues that it would Business Checking Freedom Act. relates to this charter versus all oth- have passed. I can tell my colleagues

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00014 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.026 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1245 that Chairman Greenspan thinks it consumers through outrageously high in this country, and I want to con- would be very important to the secu- interest rates of 25 to 30 percent. How gratulate the gentleman from Ohio rity of the United States and, in many come in the midst of giving the ability (Chairman OXLEY) and the gentleman different ways, not only due to the fact of large banks to become larger, we for- from Massachusetts (Ranking Member that American ILCs can operate with- got about demanding that interest FRANK) for including in this regulatory out oversight of the holding company rates go down so that people who al- relief bill provisions that benefit credit but foreign companies can have ILCs. ready are hurting are not forced to pay unions once again. So the FDIC, which is a very credible usurious interest rates. I guess we just Mr. Chairman, nearly 84 million regulator, can look at the bank; but let forgot about that. Americans enjoy low-cost financial us say a foreign company in Latin Mr. Chairman, at a time when banks services at their credit unions. It is im- America or in Russia gets Utah to give are making record-breaking $7.3 billion perative that we allow credit unions to them a charter. They create jobs in in late fees they collect from con- continue to change with the ever-ex- Utah. They could operate the bank sumers, another major rip-off, there is panding financial marketplace, just as credibly, but they could also be money nothing in this bill that would bring we do with the banking and the thrift laundering from their host company down these excessive fees. I guess we industry. abroad, and so this is an invitation as forgot about that issue as well. Credit unions do an excellent job of a charter to greater money laundering. Mr. Chairman, every Member of this serving their members, a tradition we I frankly urge my colleagues to think Congress understands that throughout need to help protect and preserve. twice; and, unfortunately, I am in a po- America we are hemorrhaging decent- Sometimes the members of credit sition of suggesting opposing the bill. paying jobs in manufacturing and in unions will be the men and women who Mr. FRANK of Massachusetts. Mr. information technology; and one of the are serving our country valiantly in Chairman, I yield 5 minutes to the gen- areas, one of the industries where we the Armed Forces. tleman from Vermont (Mr. SANDERS), a are hemorrhaging good-paying jobs is The bill being considered today member of the committee, who is the in the financial services industry. No would allow credit unions to build ranking member of the subcommittee mention, no mention in this bill of a their own buildings on DOD facilities which has jurisdiction over this bill. concern that with these mergers comes and to pay a nominal fee for rent, a Mr. SANDERS. Mr. Chairman, I the loss of decent-paying jobs. Maybe practice which had been in effect but thank the gentleman from Massachu- when we talk about financial services, has recently been changed. Credit setts for yielding me the time. we might want to talk about the ordi- unions at DOD facilities provide our Mr. Chairman, among other things, nary people who do business in banks troops with the tools for money man- agement so that while they are away the Financial Services Regulatory Re- rather than just the needs of the CEOs defending our great Nation, their per- lief Act would make it easier for some who make huge compensation packages sonal financial dealings back at home of the biggest banks and other finan- running these banks. cial institutions in this country to Mr. Chairman, while credit card are not ignored. This may not always merge. At a time in America where big issuers are ripping off middle class be profitable; but with credit unions, it is not a matter of profit. It is a matter institutions are becoming bigger and Americans by charging sky-high inter- of people. As member-owned not-for- small institutions are being driven out est rates and outrageous fees, credit profit entities, credit unions serve of business, I think we have to ask card CEOs are laughing all the way to whether this is a good idea. At a time their members to the fullest capacity. the bank; and mark my words, this will Another provision that I want to in America when the people at top are be an issue that the American people highlight would allow credit unions making out like bandits, the middle will demand this Congress to address. who convert to community charters to class is shrinking and poverty is in- We cannot ignore the fact that scam continue to serve their select employee creasing. I think we have to ask wheth- after scam is forcing hard-pressed groups who were added before their er it is proper for the United States American people to pay 20, 25 percent a conversion. As we are all aware, with Congress to give ‘‘regulatory relief’’ to year in interest rates on their credit today’s troubled economic times, there huge multibillion dollar institutions. I card. That issue will come before the are times when a credit union that has think not. United States Congress. been associated with a plant or an in- Specifically, this bill would reduce In the midst of all of these rip-offs, if dustry and it is closed down or the jobs the Federal review process for bank I may use that word, the compensation are lost, the credit union is lost as mergers from 30 days to a mere 5 days. packages of the CEOs are going sky well. The credit unions that serve the This bill would allow the Officer of high. Over the past 5 years, the CEO of people whose jobs are gone and whose Comptroller Currency to waive notice Citigroup made over $500 million in plants are closed, rather than also requirements for national bank merg- total compensation and the CEO of shutting down and leaving, are instead ers located within the same State. This Capital One made over $169 million in converting to community charters. bill would end the prohibition of out- total compensation. When we deregu- This accomplishes two things: One, it of-state banks merging with in-state late these industries, maybe we want would allow the institution to stay banks that have been in existence for to say a word on that issue as well. open and bring in new members from less than 5 years. This bill also gives Bottom line is that this legislation the community; and, two, it allows Federal thrifts the ability to merge works on behalf of the largest financial those workers to continue their impor- with one or more of their nonthrift af- institutions. It does not work on behalf tant relationship with their credit filiates; and, finally, this bill would of consumers, and I respectfully ask for union. eliminate certain reporting require- a ‘‘no’’ vote on it. Mr. Chairman, again I want to con- ments for banks’ CEOs in regard to in- Mr. OXLEY. Mr. Chairman, I am now gratulate the gentleman from Massa- side-lending activities. pleased to yield 3 minutes to the out- chusetts, ranking member FRANK, and Mr. Chairman, I have serious con- standing gentleman from Ohio (Mr. Chairman OXLEY for crafting this bill, cerns about the provisions in this bill; LATOURETTE), a valued member of the and I want to congratulate the trades but equally important, I have major committee. that represent the credit unions in this concerns about what this bill is not ad- (Mr. LATOURETTE asked and was town for making sure that H.R. 1375 dressing, what it is not addressing, and given permission to revise and extend has provisions with real teeth that ben- what the American people and con- his remarks.) efit the credit union industry. sumers all over this country are deeply Mr. LATOURETTE. Mr. Chairman, I Mr. FRANK of Massachusetts. Mr. concerned about. want to talk about some of the smaller Chairman, I yield myself such time as For example, while the prime rate is financial institutions in America. It I may consume. at a historic low of 4 percent and the has been about 6 years since the Con- Before yielding time to one of the co- Federal Reserve has lowered the Fed- gress passed the Credit Union Member- authors of the bill, the gentleman from eral funds rate 13 times to a mere 1 per- ship Access Act, a piece of legislation Arkansas, who has done a lot of work cent; credit card issuers are making that forever changed the nature and on this, I did want to respond to the record-breaking profits by ripping off the way the credit unions do business gentleman from Vermont.

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00015 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.029 H18PT1 H1246 CONGRESSIONAL RECORD — HOUSE March 18, 2004 Frankly, I was somewhat surprised Mr. Chairman, I live in a small rural overall it is the FDIC’s view that ILC to hear him raise some of those issues town, I am a small business owner, and charters pose no greater safety and because he is, as I noted, the ranking I recognize the limited resources that soundness risk than other charter member on the minority side of the exist for small businesses. H.R. 1375, types. As with any other insured insti- subcommittee of jurisdiction; and I the Financial Services Regulatory Re- tution, ILCs are subject to examina- must say that had he raised some of lief Act will assist financial institu- tions and other supervisory activities. them when we were considering this tions in my congressional district, and The FDIC’s authority to pursue formal bill, he might not now feel they were all across America for that matter, by or informal enforcement actions being ignored. easing some of the regulatory demands against an ILC is the same as the FDIC One of them, of course, is not ger- they have, which will allow them to authority with respect to any other mane to this bill, the credit card ques- focus more on service to their cus- State nonmember bank, with limited tion. That was debated and voted on in tomers. exceptions. In short, the FDIC does not the committee last year, but some of The Committee on Financial Serv- believe that there are any compelling the other issues he raised now, I just ices held a hearing on this bill with safety and soundness reasons to impose have to say that it is a little late to representatives of each of the regu- constraints on this charter type that come to the floor, when the bill is al- latory agencies responsible for over- are not imposed on other charter types. ready before us, and raise issues, par- sight of these institutions. Each pre- Chairman Powell of the FDIC goes on ticularly when you are the ranking sented their perspectives on the legis- to say that the FDIC and the State member of the subcommittee and you lation and the need for implementa- chartering authorities directly super- have hearings and you have markup in tion. I appreciate the efforts of my col- vise insured ILCs, which must comply subcommittee and you have markup in leagues and the committee staff who with the FDIC’s rules and regulations, full committee. have worked together since the full including those requirements for cap- In one case I would note he objected committee markup to make further ital standards, safe and sound oper- to the fact that this bill reduces the pe- improvements to ensure the final bill ations, and consumer compliance and riod during which the Federal Govern- reflects a true bipartisan product; and, community reinvestment. Further, as ment can wait and study a merger for indeed, it does. It is what I call a piece he says, the FDIC has the authority to antitrust. Yes, I agree that that is a of commonsense legislation. examine any affiliate of an ILC, includ- problem. We debated that one, in fact, This legislation is well balanced for ing its parent company, as may be nec- in committee. It was the gentlewoman all financial institutions, both large essary, to determine the relationship from California (Ms. WATERS) who and small; both rural and urban. I be- between the ILC and the affiliate, and raised that; and I appreciate the fact lieve it is imperative that Congress to determine the effect of such rela- that because she, having raised it, continues to work to help strengthen tionship on the ILC. stuck with it, she has worked with the our struggling economy by making I thought I would bring those facts to majority, and an amendment that will sure that our financial institutions light. I know that some competitors of put that back up to 15 days, instead of have the necessary tools they need to ILCs worry because they do not want 5, I believe, is going to be accepted. operate more effectively and more effi- more competition in the banking mar- So I would like to inform the gen- ciently. They are an integral part of ketplace, but we all know that com- tleman, he has left the floor, that there our community’s economic develop- petition is good for consumers, it is was, in fact, an agreement to address ment and need legislation like H.R. good for businesses, and it is good for one of those issues that he raised. 1375 to alleviate some of the burdens our economy as a whole. And since I He also raised the question of execu- that impede their services to the pub- have heard other companies make the tive compensation, and I have been lic. argument that ILCs are not safe and working with the very good staff that Again, I thank my colleagues, Chair- sound, I wanted to respond by saying we have on our side of the committee man OXLEY, Ranking Member FRANK, that ILCs are heavily regulated finan- to deal particularly with the aspect of and the gentlewoman from West Vir- cial institutions, ILCs are regulated by executive compensation, top-level ex- ginia (Mrs. CAPITO) for all of their hard the FDIC and by State banking regu- ecutive compensation, that is, the per- work on this, and I urge my colleagues lators in every State in which they op- verse incentive that stock options give to support this legislation, H.R. 1375. erate, and I think we should judge ILCs to the top people. Mr. OXLEY. Mr. Chairman, I yield on the facts. myself such time as I may consume to b 1200 To that end, Mr. Chairman, I submit also recognize the leadership of the the letter of Chairman Donald Powell So that one I assure him is going to gentleman from Arkansas for being the for the RECORD herewith: be dealt with. But I do not think it lead Democrat sponsor on this legisla- makes sense to deal with it only for fi- tion. We appreciate his hard work on FEDERAL DEPOSIT INSURANCE CORPORATION, nancial institutions. I think it should this endeavor. be dealt with across the board. Washington, DC, April 30, 2003. Mr. Chairman, I yield 3 minutes to Hon. EDWARD R. ROYCE, The committee is going to remain in the gentleman from California (Mr. House of Representatives, business, and I have to say to my now ROYCE), a valuable member of the com- Washington, DC. absent colleague from Vermont that, mittee. DEAR CONGRESSMAN ROYCE: Thank you for as ranking member, he is fully posi- Mr. ROYCE. Mr. Chairman, I thank your recent letter concerning industrial loan tioned to raise these, and many of the the gentleman for yielding me this companies. We are closely monitoring the re- other members would be glad to work time, and I rise today to bring some cent attention that industrial loan compa- with him, as we were able to work with more facts to the debate over indus- nies are receiving and appreciate your ques- the gentlewoman from California when trial loan companies. tions. she took a very serious look at this and ILCs are well regulated, both at the Industrial loan companies and industrial accomplished something. banks (collectively, ILCs) have existed since State and Federal levels. They have the early 1900s. States with existing insured Mr. Chairman, I yield such time as he played an important part in our coun- ILCs include California, Colorado, Indiana, may consume to the gentleman from try’s financial system for over 100 Minnesota, Nevada, and Utah. There are 51 Arkansas (Mr. ROSS), who is a cospon- years. I have a letter from the chair- insured ILCs, with the vast majority oper- sor of this bill. man, Donald Powell, of the Federal De- ated from Utah (24) and California (17). The Mr. ROSS. Mr. Chairman, I am posit Insurance Corporation, and I will charters are unique in that, as long as they pleased to join my colleagues, the gen- provide it for the RECORD, but I also meet certain criteria (typically, not accept- tleman from Ohio (Mr. OXLEY), the thought I would just read some of the ing demand deposits), they are not consid- chairman, and the ranking member, ered ‘‘banks’’ under the Bank Holding Com- observations that Chairman Powell pany Act. As a result, an ILC’s parent com- the gentleman from Massachusetts makes about ILCs. pany is not subject to supervision by the (Mr. FRANK), and the gentlewoman Chairman Powell says that industrial Federal Reserve. Just as is true of unitary from West Virginia (Mrs. CAPITO) as a loan companies and industrial banks thrift holding companies and parent compa- cosponsor of this legislation. have existed since the early 1900s, and nies of limited-purpose credit card banks,

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00016 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.031 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1247 the parent companies of ILCs include a di- and chartered as limited-purpose institu- protection regulations. Like all insured de- verse group of financial and commercial tions, which generally focus on credit card or pository institutions, ILCs receive regular firms. trust activities. examinations, during which compliance with Overall, it is the FDIC’s view that ILC Existing ILCs can generally be grouped ac- the regulations is reviewed and overall per- charters pose no greater safety and sound- cording to one of four broadly defined busi- formance and condition are analyzed. For ness risk than other charter types. As with ness models: FDIC-insured, state-chartered institutions any other insured institution, ILCs are sub- Institutions that are operated as commu- that are not members of the Federal Reserve ject to examinations and other supervisory nity-focused institutions, including stand- System, the FDIC and/or the state authority activities. The FDIC’s authority to pursue alone institutions and those serving a com- will conduct the examination. The FDIC has formal or informal enforcement actions munity niche within a larger organization. agreements with most states to conduct ex- against an ILC is the same as the FDIC’s au- These institutions often provide credit to aminations under alternating schedules, al- thority with respect to any other state non- consumers and small- to medium-sized busi- though in the case of a troubled institution, member bank, with limited exceptions. nesses. In addition to retail deposits (many the FDIC and the estate authority generally Those exceptions pertain to cross-guaranty ILCs offer NOW accounts), funding sources conduct joint or concurrent examinations. authority and golden parachute payments, may include commercial and wholesale de- Transactions with affiliates are reviewed and legislative changes to eliminate those posits, as well as borrowings. Institutions during each examination. An ILC’s trans- exceptions are being pursued in H.R. 1375, that operate within a larger corporate orga- actions with its affiliates are restricted by the proposed Financial Services Regulatory nization may also obtain funding through Sections 23A and 23B of the Federal Reserve Relief Act of 2003. In short, the FDIC does the parent organization. Act, which are made applicable to state non- not believe there are compelling safety and Independent institutions that focus on spe- member banks in general by section 18(j) of soundness reasons to impose constraints on cialty lending programs, including leasing, the FDI Act, 12 U.S.C. § 1828(j). Section 23A this charter type that are not imposed on factoring, and real estate activities. Funding essentially limits the total amount of loans other charter types. sources for this relatively small number of to affiliates and limits other transactions be- The risk posed by any insured depository institutions may include retail and commer- tween a bank and its affiliates. These re- institution depends on the appropriateness of cial deposits, wholesale deposits, and bor- strictions also apply to loans to third parties the business plan and model, management’s rowings. to pay debts to or purchase goods and serv- competency in administering the institu- Institutions that are embedded in organi- ices from an affiliate. Section 23B generally tion’s affairs, and the quality and implemen- zations whose activities are predominantly prohibits any transaction with an affiliate tation of risk management programs. Simi- financial in nature, or within the financial on terms or conditions less favorable to the lar to institutions with other charter types, services units of larger corporate organiza- bank than a transaction with an unrelated an ILC’s capital adequacy and overall safety tions. These institutions may serve a par- third party. and soundness is driven by the composition ticular lending, funding, or processing func- While the FDIC does not have statutory and stability of its lending, investing and tion within the organization. Lending strate- authority to supervise the parent companies funding activities and the competence of gies can carry greatly, but, within a specific of ILCs, the FDIC does have the authority, in management. institutions, are often focused on a limited examining any insured depository institu- The FDIC and the state chartering au- range of products, such as credit cards, real tion, to examine any affiliate of the institu- thorities directly supervise insured ILCs, estate mortgages, or commercial loans. Cor- tion (under 12 U.S.C. § 1820(b)(4)), including which must comply with the FDIC’s Rules porate strategies play a larger role in its parent company, as may be necessary to and Regulations, including, but not limited determing funding strategies in these cases, determine the relationship between the in- to, those requirements for capital standards, with some institutions periodically selling stitution and the affiliate and to determine safe and sound operations, and consumer some or all outstanding loans to the parent the effect of such relationship on the institu- compliance and community reinvestment. organization. Parent assessments of funding tion. In the case of a parent subject to the ILCs also are subject to Sections 23A and 23B options across all business units frequently reporting requirements of another regu- of the Federal Reserve Act, which restrict or determine the specific tactics at the ILC latory body covered under the Gramm- limit transactions with a bank’s affiliates level. A few institutions restrict themselves Leach-Bliley Act of 1999, such as the Securi- and the Federal Reserve Board’s Regulation to facilitating corporate access to the pay- ties and Exchange Commission or a state in- O, which governs credit to insiders and their ment system or supporting cash manage- surance commissioner, the FDIC has agree- related interests. Further, the FDIC has the ment functions, such as administering ments in place to share information with the authority to examine any affiliate of an ILC, escrowed funds. functional regulator. including its parent company, as may be nec- Institutions that directly support the par- In determining whether to grant deposit essary to determine the relationship between ent organizations’ distinctly commercial ac- insurance to an ILC, the FDIC must consider the ILC and the affiliate and to determine tivities. These institutions largely finance the same statutory factors of section 6 of the the effect of such relationship on the ILC. retail purchases of parent company products, FDI Act, 12 U.S.C. § 1816, that it considers for Answers to your specific questions are en- ranging from general merchandise to auto- all other applications for deposit insurance. closed. If you would like additional informa- mobiles, truck stop activities, fuel for rental These factors are: tion, please do not hesitate to contact me or car operations, and heating and air condi- The financial history and condition of the Alice Goodman, Director of our Office of tioning installations. Loan products might depository institution; Legislative Affairs, at (202) 898–8730. include credit cards, lines of credit, and term The adequacy of its capital structure; Sincerely, loans. Funding is generally limited to whole- Its future earnings prospects; DONALD E. POWELL, sale or money center operations, borrowings, The general character and fitness of its Chairman. or other options from within the parent or- management; Enclosure. ganization. The risk presented by such depository in- stitution to the deposit insurance fund; RESPONSE OF THE FEDERAL DEPOSIT INSUR- From a federal law perspective, one of the The convenience and needs of the commu- ANCE CORPORATION’S DIVISION OF SUPER- primary differences between an ILC charter nity to be served by the depository institu- VISION AND CONSUMER PROTECTION TO QUES- and other depository institution charters is tion; and TIONS CONCERNING INDUSTRIAL LOAN COMPA- that certain ILCs have a grandfathered ex- Whether its corporate powers are con- NIES emption from the requirements and restric- tions of the Bank Holding Company Act sistent with the purposes of the Act. In what banking activities are these institutions The FDIC has determined that there are (BHCA). Generally, an LIC can maintain its engaged? Do they have the authority to pro- two limitations in our authority regarding exemption so long as it meets at least one of vide services that may not be offered by full- ILCs as compared to other institutions. the following conditions: (1) the institution service commercial banks? These two limitations would be addressed by does not accept demand deposits, (2) the in- Generally, the authority of industrial loan remedies included in the Financial Services stitution’s total assets are less than companies and industrial banks (collec- Regulatory Relief Act of 2003, as proposed. $100,000,000, or (3) control of the institution tively, ILCs) to engage in activities is deter- These are: has not been acquired by any company after mined by the laws of the chartering state. Amendment to clarify the FDIC’s cross- August 10, 1987. The authority granted to an ILC may vary guarantee authority: As part of the Federal from one state to another and may be dif- How does the FDIC go about regulating ILCs? Financial Institutions Reform, Recovery, ferent from the authority granted to com- What authority does the FDIC have to ex- and Enforcement Act of 1989 (FIRREA), Con- mercial banks. Except for offering demand amine ILC parent companies? Does the gress established a system that generally deposits, an ILC generally may engage in all FDIC feel it has the tools necessary to ade- permits the FDIC to assess liability across types of consumer and commercial lending quately and comprehensively regulate ILCs commonly controlled institutions for FDIC activities and all other banking activities and their relationship to their owners? losses caused by the default of one of the in- permissible for banks in general. The FDIC regulates ILCs in the same man- stitutions. Currently, cross-guarantee liabil- Core ILC functions are traditional finan- ner as other state nonmember institutions. ity is limited to insured depository institu- cial activities that can generally be engaged ILCs are subject to the FDIC’s safety and tions that are commonly controlled as de- in by institutions of all charter types. The soundness regulations (with two exceptions fined in the statute. The definition of ‘‘com- exception would be institutions organized discussed below), as well as federal consumer monly controlled’’ limits liability to insured

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00017 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.010 H18PT1 H1248 CONGRESSIONAL RECORD — HOUSE March 18, 2004 depository institutions that are controlled higher-risk loan problems, economic sectors, The ILC Board of Directors consists of by the same depository institution holding or borrowers, have resulted in an excessive local representatives who are capable of pro- company, i.e., either a bank holding com- volume of poor quality credits. viding strong oversight over the operations pany or a savings and loan holding company. Less than satisfactory internal processes of the bank and establishing prudent policies Since the parent company of an ILC is nei- have hampered institutions’ ability to iden- and procedures; ther a bank holding company nor a savings tify and respond to changing circumstances, Lending files, credit documentation and and loan holding company, ILCs that are including deterioration in credit quality, ILC policies are maintained at the institu- owned by the same parent company would which have thwarted timely corrective ac- tion and not the parent; not be ‘‘commonly controlled.’’ As a result, tions or collection efforts. Lending policies and authorities are estab- cross-guarantee liability may not attach to Reliance on potentially volatile funds lished and enforced by the ILC; ILCs that are owned by the same parent management strategies, including wholesale The bank’s policies, processes and activi- company. The Financial Services regulatory deposit solicitations, borrowings, and large- ties are consistent with regulatory laws, reg- Relief Act of 2003 contains language that scale loan sales, have placed additional ulations, policy statements and other regu- would enhance the FDIC’s efforts to protect strain on the institutions’ earnings perform- latory guidance; the deposit insurance funds by establishing ance and liquidity posture. Definitive bank-level business plans are es- parity with other charter types. This discre- If any institution is identified as troubled, tablished and followed by the bank; tionary authority would extend only against the FDIC modifies its supervisory strategy. All transactions with the parent or affil- an insured depository institution under com- In addition, these institutions are generally iate pass the strictest arms-length scrutiny; subject to formal and informal enforcement mon control with the defaulting institution. and Amendment to clarify the FDIC’s Golden actions. As a rule, the FDIC’s supervisory Sufficient resources are available at the Parachute authority: As part of H.R. 1375, strategies and specific actions are coordi- ILC to carry out ILC activities. there also is an amendment to section 18(k) nated with those of the chartering state au- With the above-noted prudential factors in of the FDI Act, 12 U.S.C. § 1828(k), to clarify thority. Further, in those situations in place and experienced bankers at the helm of that the FDIC could prohibit or limit a which the parent organization controls mul- ILCs, we have not noted problems or issues nonbank holding company’s golden para- tiple insured institutions, the FDIC also co- unique to the ILC charter. chute payment or indemnification payment. ordinates with the other state authorities or Mr. ROSS. Mr. Chairman, I am In 1990 Congress authorized the FDIC to pro- primary federal regulators to ensure that a comprehensive strategy is implemented. pleased to yield such time as he may hibit or limit prepayment of salaries or any consume to the gentleman from Utah liabilities or legal expenses of an institution- Given the concerns some observers have affiliated party by an insured depository in- raised about the ILCs’ ability to affiliate (Mr. MATHESON), my colleague on the stitution or a depository institution holding with a commercial entity, it is important to Committee on Financial Services and company. Such payments are prohibited if note that the current group of troubled ILCs someone who has worked tirelessly on have problems that are not unique to the they are made in contemplation of the insol- this piece of bipartisan commonsense ILC charter, nor do the troubled ILCs have a vency of such institution or holding com- history of unusual influence from parent legislation. pany or if they prevent the proper applica- companies or affiliates. As described above, Mr. MATHESON. Mr. Chairman, I tion of assets to creditors or create a pref- the issues facing the troubled institutions have listened to the debate today and erence for creditors of the institution. Due are not dissimilar to those encountered there have been a couple of items that to the existing statutory definition of a de- under all charter types, including those in a I think deserve some comment. pository institution holding company, it is traditional bank holding company frame- We have heard a lot of misinforma- not clear that the FDIC is authorized to pro- work. hibit these types of payments made by tion, in my opinion, about industrial Can you describe the regulatory framework that nonbank holding companies (such as ILC loan companies. I think it is important addresses safety and soundness concerns, or parent companies). that this Congress needs to go through potential conflicts of interest, that may arise What differences, if any, exist between the man- from the relationship of ILCs to their parent an exercise in education about these ner in which the FDIC regulates industrial companies? institutions to learn about what they loan banks compared with commercial In general, the regulatory framework used are and what they are not, and I want banks? to address safety and soundness concerns and to address some of those things. As indicated above, the FDIC regulates potential conflicts of interest regarding an First of all, some people seem to ILCs in the same manner as all other state ILC and its parent is the same as that appli- think there is a lack of regulation; nonmember institutions. cable to any insured state bank. For exam- that ILCs are unregulated. That is not In your view, would ILCs pose a greater risk to ple, with regard to safety and soundness, sec- true. The FDIC regulates ILCs in the the safety and soundness of the banking tion 8 of the FDI Act, 12 U.S.C. § 1818, gen- same manner as other State non- system than traditional banks if both re- erally provides the FDIC with the authority ceived enhanced de novo interstate branch- to (i) terminate or suspend the insurance of member institutions. ILCs are subject ing authority? an ILC for unsafe or unsound practices or un- to the FDIC safety and soundness regu- We do not believe that ILCs would pose a safe or unsound condition, and (ii) order the lations, as well as Federal consumer greater risk to the safety and soundness of ILC to cease and desist from engaging in an protections. the banking system than traditional banks if unsafe or unsound practice, or from the vio- How about another thing that I often both received enhanced de novo interstate lation of any law, rule, regulation, written hear that I believe is a myth about this branching authority. As described above, in- condition imposed in connection with the subject; that ILCs pose a threat to the sured ILCs are subject to the same Federal granting of any application, or any written agreement with the FDIC. safety and soundness of the national supervisory regime that applies to other in- banking system. The fact is, overall, it sured institutions. ILC transactions with We do not believe that the potential for their parent companies are subject to the conflicts of interest is any greater for ILCs is the FDIC’s view that the ILC char- same restrictions that apply to transactions than for other FDIC-insured institutions op- ters pose no greater safety and sound- erating in a holding company structure. For between other insured institutions and their ness risk than other charter types. example, an ILC and its parent company are parent companies. Another misconception out there subject to the tying restrictions of section about ILCs. Some people seem to think Can you comment generally on the capital ade- 106 of the Bank Holding Company Act quacy and safety and soundness record of Amendments of 1970 to the same extent as if that ILCs may allow for inappropriate the ILCs and compare these to the perform- the ILC were a ‘‘bank’’ and the parent com- mixing of banking and commerce. The ance of commercial banks? pany were a ‘‘bank holding company.’’ Gen- fact is, as the FDIC has said, they do ILCs currently have an examination rating erally, the tying restrictions provide that a not believe that the potential for con- distribution that is similar to the insured bank may not extend credit, sell or lease flict is any greater for ILCs than for banking universe. Similar to institutions property, or furnish any service, or fix or other FDIC-insured institutions oper- with other charter types, an ILC’s capital vary the consideration for any of the fore- ating in a holding company structure. adequacy and overall safety and soundness is going based upon any of five specific condi- driven by the composition and stability of tions. Those conditions include, for example, My colleague, the gentleman from its lending, investing and funding activities that the customer obtain some additional California (Mr. ROYCE), is submitting a as well as competence of management. credit, property or service from the holding letter that was written by Chairman For troubled ILCs, several common issues company or an affiliate. Powell from the FDIC that will provide have generally been evident, each reflecting In order to ensure sufficient autonomy and greater expansion on those particular faulty strategic or tactical decisions rather insulation of the bank from the parent, the thoughts. than issues of permissible activities, com- state authority or the FDIC typically im- I voted for this bill when it came out mercial affiliations, or the regulatory re- poses some or all of the following controls: gime over the larger corporate organization: Executive ILC management is onsite at the of committee. I supported the regu- Poorly conceived lending strategies, char- ILC, as opposed to the sometimes distant lo- latory relief bill, and I still think many acterized by concentrations in relatively cation of the parent and affiliates; components of the underlying bill are

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00018 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.012 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1249 very good and positive. I am concerned tionships between industrial loan But I do appreciate his mentioning about the components of the manager’s banks and their parents ‘‘with little or some actions that are taking place amendment that tend to place restric- no risk to the deposit insurance funds, within the European Union. Financial tions on the branching capabilities of and no subsidy transferred to the owners of industrial loan banks may industrial loan companies. nonbank parent.’’ very well soon be subject to further Now, you will hear a lot of people, in I think that it is important to note regulation, and holding company su- the earlier debate on the rule and that what we are talking about here is pervision will be driven by the Euro- whatnot, saying these provisions do choices. We have heard about, oh, these pean Union mandate that institutions not go far enough; that we need greater are only chartered in 5 States and that doing business there be subject to con- restrictions. I want to point out there is to the detriment of 45 other States. solidated holding company supervision. is another point of view, which is that This is about American consumers It is my understanding the Securities I think these go too far. I do not think being given more choices; more choices and Exchange Commission has pro- it is helpful. I think it is important we and more efficiency in our economy. posed a consolidated supervisory re- should talk about just what ILCs mean We should not be afraid of competition. gime for holding companies predomi- to this country, just so people will There are various interest groups out nantly engaged in securities business. know. there that are going to oppose ILCs. b 1215 Industrial loan banks are FDIC-regu- And I think they oppose them because lated depository institutions. And, yes, I do acknowledge that there are some they are saying, oh, gee, we are dis- other actions taking place to address they are chartered in five different advantaged. I think they are trying to this holding company issue and I am States. There are more than 50 indus- protect an advantage. Competition is glad the gentleman raised that point. trial loan banks in operation. They good. Competition is a good thing in That being said, I guess I would just re- have been in operation for many years. our country and in our economy here. peat one more time that I do believe They are subject to the same banking It is something I would advocate for. that these are entities where, accord- laws and are regulated in the same And I think the people have been well ing to the Federal agency that regu- manner as other depository institu- served in the many years in which ILCs lates them now, the FDIC, they do not tions. They are supervised and exam- have been in existence, and I think see any relationship in terms of, sub- ined both by the States that charter that businesses and consumers will stantive, between the holding company them and by the FDIC. They are sub- continue to be served in all 50 States and the bank component of the busi- ject to the same general safety and by the benefits of the services that in- ness. soundness, consumer protection de- dustrial loan companies provide. Mr. LEACH. If the gentleman will posit insurance, Community Reinvest- So as I said at the outset, a lot of yield on that point, as the gentleman ment Act, and other requirements that things have been said. I think there is knows there is a profound difference apply to other FDIC-insured depository a lot of confusion about what ILCs are between the Federal Reserve and the institutions, and they have an exem- and are not. I have tried to walk FDIC on this point. The Federal Re- plary record in serving the commu- through some of the fundamental com- serve holds the exact opposite position. nities in which they operate. ments that have been made that raise The Federal Reserve is what is in Industrial loan banks have already concern for me, and I would also sug- charge of the payment system, and by been subject to the same rules regard- gest that this manager’s amendment, this bill we are allowing people access ing interstate branching as other which is a purported compromise, is to the payment system without thor- banks. And although they have rarely not necessarily something that I agree ough oversight of the parent company. used this authority, these banks have with. I think it goes too far in being re- All I am asking is that ILCs come been authorized to open branches by strictive, and I think that it gives me under the same national law as every- acquisition, where State laws allow. concerns for a bill that otherwise body else that operates as the equiva- Most owners of industrial loan banks passed through committee with very lent of a full service bank, nothing less, are exempted from the Bank Holding little controversy. nothing more. But it does have the ef- Company Act regulation through a spe- Mr. LEACH. Mr. Chairman, will the fect of devaluing all other financial in- cific provision added to the Bank Hold- gentleman yield? stitution charters. That is a concern, ing Company Act in 1987. This is nei- Mr. MATHESON. I yield to the gen- although the principal concern is pro- ther a loophole nor a particularly tleman from Iowa. tection of the public purse. In that re- unique provision. Similar Bank Hold- Mr. LEACH. Mr. Chairman, the gen- gard, I agree that the FDIC has a dif- ing Company Act exemptions apply to tleman is, of course, correct in part of ferent position. many institutions not owned by other what he says on regulation. But the But I only make one final point. companies, and to financial institu- reason that ILCs were exempted from Under the Gramm-Leach-Bliley Act, tions that do not offer a full range of the Bank Holding Company Act was the effort was to have coordination of banking services, such as credit card they did not have all the powers of a all the Federal banking regulators. banks, Edge Act banks, grandfathered bank. Now they are being given all the Here you have one banking regulator ‘‘nonbank banks,’’ grandfathered ‘‘uni- powers of a bank and also want to stay that wants to operate outside coordina- tary thrifts,’’ and trust banks. These exempt from the Bank Holding Com- tion of all the others. In that regard, I exemptions benefit bank customers. pany Act. have some concerns about FDIC judg- They introduce additional competition What the Bank Holding Company Act ment which I believe is driven by a de- into the marketplace without in- says is that the parent of an ILC will sire to regulate a greater body of insti- creased risk to the deposit insurance be examined in a consolidated way, the tutions. That is a personal view. Maybe system. way Europe is moving to, the same as they have other motives. I do not As I said earlier, some people will the United States has attempted to es- know. But I want Federal coordination. claim that these industrial loan banks tablish in principle. But with this bill I want public protection to the max- are unregulated. That is just not true. we make a breach in principle of pro- imum degree possible. They are subject to many of the same found dimensions. It is that examina- Mr. MATHESON. I appreciate those requirements as bank holding compa- tion of the bank holding company that comments. I would just say I under- nies, such as strict restrictions on is critical to an understanding of how stand there is a difference between the transactions with their bank affiliates. you protect the taxpayer and how you FDIC and the Federal Reserve and They are regulated under State law protect the financial system. That is there is a difference on this particular and are subject to examination by the what is so important in this debate. issue. I just want to point out that this FDIC and to prompt corrective action Mr. MATHESON. Reclaiming my is not just an ILC issue, though. There and capital guarantee requirements if time, Mr. Chairman, I appreciate the are other entities that are also not reg- the banks they control encounter fi- comments of the gentleman from Iowa. ulated by the Federal Reserve. nancial difficulties. These tools, in the We have had discussions about this in Mr. OXLEY. Mr. Chairman, I am words of FDIC Chairman Donald Pow- the past and we tend to take a little bit pleased to yield 2 minutes to the gen- ell, allow the FDIC to manage the rela- different point of view on this issue. tleman from Indiana (Mr. CHOCOLA).

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00019 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.034 H18PT1 H1250 CONGRESSIONAL RECORD — HOUSE March 18, 2004 (Mr. CHOCOLA asked and was given particularly on the ILC issue. But over- During my legislative career, I have fought permission to revise and extend his re- all this is an attempt to provide regu- to ease the regulatory burden on our Nation’s marks.) latory relief to institutions who have businesses, our Nation’s engines for growth. I Mr. CHOCOLA. I thank the gen- undertaken a tremendous burden, par- have fought against unwarranted government tleman for yielding me this time. ticularly under the PATRIOT Act intrusion. Mr. Chairman, the banking industry strictures. For that reason, this bill As much as I support the removal of unnec- estimates that it spends approximately needs to go forward. essary and onerous regulatory burdens on our $25 billion annually to comply with the Ms. LEE. Mr. Chairman, although I do have Nation’s businesses, I am also a strong sup- regulatory requirements imposed at some reservations about this bill, I rise in sup- porter of States rights. the Federal and State levels of govern- port of the vast majority of the underlying bill In America we do not take a one-size-fits-all ment. While some of these regulations and want to praise the excellent bipartisan approach to government. One reason why we help to ensure the reliability of our fi- leadership exercised in crafting it and moving enjoy the highest standard of living in the nancial services sector, many of the it to the floor today. It was a long time in the world is because we have a laboratory of our mandates that emerge from Wash- making and I congratulate my colleagues on States who are given the freedom to set their ington, D.C. are overly burdensome, their hard work. own paths. Similar to completion in the private unnecessarily costly, and oftentimes The bill provides much needed regulatory sector, we allow States to offer competing hinder profitability, innovation and relief to credit unions, national banks, and sav- plans to protect the safety and welfare of their competition. Whenever we can identify ings and loan institutions. We all know that citizens. examples of unnecessary regulatory ob- regulations can do great good, but they need H.R. 1375 has many admirable provisions to stacles, Congress should act to elimi- to be reexamined and refined from time to ease the regulatory environment on our Na- nate them. time, especially when new consumer protec- tion’s financial service industry; however, the H.R. 1375, the Financial Services Reg- tions are warranted and where they can pro- bill amends the interstate branching laws to ulatory Relief Act of 2004, is a well- vide needed flexibility to enhance efficiency. permit de novo interstate branching, thus crafted bill that does exactly that. It This bill does exactly that and I am pleased eliminating the State’s role in ‘‘entry-by-acqui- allows credit unions, savings associa- with many of its provisions, especially those sition’’ only rules that apply under Federal law tions, and national banks to devote that will help the credit unions compete, thrive today. This is an unjustified unsurpation of more of their resources to the business and improve their services to consumers. State regulatory authority. of lending to consumers and less to the Mr. Chairman, I hope that we will improve Currently, de novo interstate branching may bureaucratic maze of compliance with the bill before us today by adopting the Man- occur only if a State’s law expressly permits it. outdated and unnecessary regulations. ager’s amendment, and Waters amendment, Seventeen States have passed laws that per- It contains a broad range of provisions among others. mit de novo branching, while thirty-three Mr. CANTOR. Mr. Chairman, I rise today to that, taken as a whole, will help grant States, like Nebraska, do not. speak in favor of The Financial Services Reg- It is for this reason only I reluctantly cannot parity among financial institutions of ulatory Relief Act. This important legislation support H.R. 1375. all characters and sizes as well as the will help relieve several of the regulatory bur- Mr. CASTLE. Mr. Chairman, I rise today in agencies that regulate them and, most dens that hinder the business practices of fi- support of H.R. 1375, the ‘‘Financial Services importantly, the customers they serve. nancial institutions throughout our Nation. By Regulatory Relief Act.’’ I commend Chairman Of the many important provisions in lifting these regulations, banks, credit unions, OXLEY and Subcommittee Chairman BACHUS this bill, several are significant for In- and other institutions will be able to better for continuing the Financial Services Commit- diana’s credit unions. For example, ac- serve the average American. tee’s efforts to address regulatory relief for our cess to the Federal Home Loan Bank is Particularly, I would like to mention the im- financial institutions. available only for financial institu- portance of Section 208 of this legislation. This legislation will address regulatory relief tions that are federally insured. H.R. This provision would remove a limitation on for a number of financial institution systems; 1375 contains a provision that would savings associations that prevents them from banks, savings associations and credit unions. allow privately insured financial insti- offering a larger percentage of automobile It eases regulatory burden which in turn will tutions to join the Federal Home Loan loans to their customers. improve productivity, ultimately benefiting con- Bank. The Federal Home Loan Bank is Presently, automobile loans are included in sumers and small businesses. a significant low-cost source of funds the household or consumer loan restriction As Members of Congress it is important for that a credit union can use to expand limit of 35% of an institution’s assets. Many us not to forget our role in oversight of the loan products, especially mortgage savings associations will be forced to stop or laws and regulations that we create and ad- loans, to its members. Indiana has limit the number of automobile loan products dress the regulations as needed. We should more than 20 privately insured credit they offer because of this restriction. With less ensure that the laws and regulations we cre- unions, including Elkhart County competition in the marketplace, the American ate follow our original intent and are not overly Farm Bureau Credit Union, whose people will be left with fewer options to pur- burdensome. I commend our committee for re- members could benefit from access to chase automobiles. visiting the regulatory requirements. It is es- the Federal Home Loan Bank. The language currently in this legislation will sential we make sure we have streamlined Currently, credit unions may only remove automobile loans from household or them for efficiency and not made them overly offer check cashing and money transfer consumer loan restriction. This provision will onerous. services to members. H.R. 1375 contains help guard against predatory practices and Mr. Chairman, this legislation is a good bi- a provision that allows credit unions to add flexibility to the lending industry by cre- partisan bill that members of the Financial offer these services to anyone who is ating better marketplace options for the Amer- Services Committee held a number of hear- eligible for membership but has not yet ican consumer. ings on. I am pleased today that we have joined the credit union. This would For over 150 years, thrift banks have fo- brought this much needed bill to the floor. I allow credit unions to extend services cused on providing consumers with the nec- urge my colleagues on both sides of the aisle to underserved consumers at a lower essary means to obtain the American dream to join me in supporting this important and cost than check cashers and money of ownership. We should not limit Americans very necessary legislation. transfer providers, while introducing in that dream. Mr. BEREUTER. Mr. Chairman, this Mem- them to mainstream financial services. Mr. Chairman, I would like to thank the Fi- ber has been a strong supporter of regulatory By passing this legislation, Congress nancial Services Committee and Chairman burden relief for our financial institutions in the will demonstrate its commitment to OXLEY for including this important provision in past. However, this Member will oppose the reducing the regulatory burden. I urge H.R. 1375. I urge that we pass this legislation, Financial Services Regulatory Relief Act of all of my colleagues to support H.R. and I yield back the balance of my time. 2003 (H.R. 1375) because of the provisions 1375. Mr. TERRY. Mr. Chairman, I rise today in which preempt the laws of over 30 states on Mr. OXLEY. Mr. Chairman, I yield reluctant opposition to H.R. 1375. either interstate bank branching, the bank ac- myself the balance of my time. I would The United States is a government of lim- quisition ‘‘age’’ requirements or both. As a simply say this has been a very good ited powers and of Federalism. We defer to former State senator in the Nebraska Unicam- debate and, in fact, a great representa- the States to make their own determinations to eral legislature, this Member believes Con- tion of the legislative process at work. ensure the health, welfare, and consumer pro- gress should continue to defer to State legisla- We have had a lot of strong opinions, tection of their citizens. tures on these questions.

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00020 Fmt 4636 Sfmt 9920 E:\CR\FM\K18MR7.037 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1251 Under current Federal law, State and na- The text of the committee amend- Sec. 302. Leases of land on Federal facilities for tional chartered banks can branch de novo ment in the nature of a substitute is as credit unions. into a new State only if the State explicitly per- follows: Sec. 303. Investments in securities by Federal mits de novo interstate branching. This provi- H.R. 1375 credit unions. Sec. 304. Increase in general 12-year limitation sion of Federal law was enacted in the Riegle- Be it enacted by the Senate and House of Rep- of term of Federal credit union Neal Interstate Banking and Branching Effi- resentatives of the United States of America in loans to 15 years. ciency Act of 1994. Furthermore, under Rie- Congress assembled, Sec. 305. Increase in 1 percent investment limit gle-Neal, bank holding companies are per- SECTION 1. SHORT TITLE; TABLE OF CONTENTS. in credit union service organiza- (a) SHORT TITLE.—This Act may be cited as mitted to acquire an existing bank in any tions. the ‘‘Financial Services Regulatory Relief Act of State. However, under this law, a state can Sec. 306. Member business loan exclusion for adopt ‘‘age’’ laws which provide that a bank 2003’’. (b) TABLE OF CONTENTS.—The table of con- loans to nonprofit religious orga- holding company located out-of-State can only tents for this Act is as follows: nizations. acquire a bank in the State if the bank has Sec. 1. Short title; table of contents. Sec. 307. Check cashing and money transfer been in existence for a certain amount of time services offered within the field of TITLE I—NATIONAL BANK PROVISIONS (up to 5 years) as determined by the State. membership. Sec. 101. National bank directors. Section 401 of H.R. 1375 would preempt Sec. 308. Voluntary mergers involving multiple Sec. 102. Voting in shareholder elections. State laws as they relate to both interstate common-bond credit unions. Sec. 103. Simplifying dividend calculations for bank branching and the ‘‘age’’ requirement for national banks. Sec. 309. Conversions involving common-bond the acquisition of existing banks. In the 107th Sec. 104. Repeal of obsolete limitation on re- credit unions. Congress, this Member did offer an amend- moval authority of the Comp- Sec. 310. Credit union governance. ment on this subject during a Financial Serv- troller of the Currency. Sec. 311. Providing the National Credit Union ices Committee Markup of the Financial Serv- Sec. 105. Repeal of intrastate branch capital re- Administration with greater flexi- ices Regulatory Relief Act of 2002. This Mem- quirements. bility in responding to market ber’s amendment would have deleted the pro- Sec. 106. Clarification of waiver of publication conditions. requirements for bank merger no- Sec. 312. Exemption from pre-merger notifica- vision of this bill which preempted the laws of tices. States on bank branching and bank acquisi- tion requirement of the Clayton Sec. 107. Capital equivalency deposits for Fed- Act. tion. Unfortunately, the amendment was de- eral branches and agencies of for- Sec. 313. Treatment of credit unions as deposi- feated by a vote of 13 to 32. eign banks. In conclusion, this Member will oppose H.R. Sec. 108. Equal treatment for Federal agencies tory institutions under securities laws. 1375 because of the provisions in Section 401 of foreign banks. which preempted the laws of over 30 States. Sec. 109. Maintenance of a Federal branch and TITLE IV—DEPOSITORY INSTITUTION This Member strongly believes that these a Federal agency in the same PROVISIONS State. Sec. 401. Easing restrictions on interstate banking questions should be left to our State Sec. 110. Business organization flexibility for branching and mergers. legislatures. national banks. Mr. GUTIERREZ. Mr. Chairman, I had in- Sec. 111. Clarification of the main place of busi- Sec. 402. Statute of limitations for judicial re- tended to offer an amendment on this legisla- ness of a national bank. view of appointment of a receiver for depository institutions. tion regarding the OCC preemption rules, but TITLE II—SAVINGS ASSOCIATION withdrew it in anticipation of revisiting that im- PROVISIONS Sec. 403. Reporting requirements relating to in- sider lending. portant issue soon on other legislation. Sec. 201. Parity for savings associations under I do, however, want to state my strong sup- the Securities Exchange Act of Sec. 404. Amendment to provide an inflation port for a particular provision of H.R. 1375, the 1934 and the Investment Advisers adjustment for the small deposi- Act of 1940. tory institution exception under Financial Services Regulatory Relief Act of the Depository Institution Man- 2003. I am very pleased that credit unions will Sec. 202. Investments by Federal savings asso- ciations authorized to promote the agement Interlocks Act. be permitted to offer remittance products to Sec. 405. Enhancing the safety and soundness nonmembers under this legislation. I want to public welfare. Sec. 203. Mergers and consolidations of Federal of insured depository institutions. thank Chairman OXLEY, Ranking Member savings associations with non- Sec. 406. Investments by insured savings asso- FRANK, CHARLIE GONZALEZ and DOUG OSE for depository institution affiliates. ciations in bank service companies their work on this important provision. Credit Sec. 204. Repeal of statutory dividend notice re- authorized. unions offer the lowest cost remittance prod- quirement for savings association Sec. 407. Cross guarantee authority. ucts and the best exchange rates on the mar- subsidiaries of savings and loan Sec. 408. Golden parachute authority and ket. In addition, increased competition in this holding companies. nonbank holding companies. Sec. 205. Modernizing statutory authority for arena will provide more favorable options for Sec. 409. Amendments relating to change in trust ownership of savings asso- consumers. bank control. ciations. This is most important because many pur- Sec. 206. Repeal of overlapping rules governing TITLE V—DEPOSITORY INSTITUTION veyors of remittance products charge ex- purchased mortgage servicing AFFILIATES PROVISIONS tremely high fees and provide very unfavor- rights. Sec. 501. Clarification of cross marketing provi- Sec. 207. Restatement of authority for Federal able exchange rates to their consumers, and sion. they often fail to provide adequate disclosure. savings associations to invest in Sec. 502. Amendment to provide the Federal Re- I have legislation that addresses this issue, re- small business investment compa- nies. serve Board with discretion con- quiring meaningful disclosure of fees and cerning the imputation of control rates, in the language that is used to advertise Sec. 208. Removal of limitation on investments in auto loans. of shares of a company by trust- and/or transact business with consumers. I Sec. 209. Selling and offering of deposit prod- ees. hope this meaningful legislation will soon ad- ucts. Sec. 503. Eliminating geographic limits on thrift vance to floor consideration. Sec. 210. Funeral- and cemetery-related fidu- service companies. Again, thank you, Chairman OXLEY and ciary services. Sec. 504. Clarification of scope of applicable Ranking Member FRANK, for including this im- Sec. 211. Repeal of qualified thrift lender re- rate provision. quirement with respect to out-of- portant remittance provision in the legislation. TITLE VI—BANKING AGENCY PROVISIONS Mr. OXLEY. Mr. Chairman, I yield state branches. back the balance of my time. Sec. 212. Small business and other commercial Sec. 601. Waiver of examination schedule in order to allocate examiner re- The CHAIRMAN pro tempore (Mr. loans. Sec. 213. Clarifying citizenship of Federal sav- sources. SIMMONS). All time for general debate ings associations for Federal court Sec. 602. Interagency data sharing. has expired. jurisdiction. Sec. 603. Penalty for unauthorized participa- Pursuant to the rule, the committee Sec. 214. Clarification of applicability of certain tion by convicted individual. amendment in the nature of a sub- procedural doctrines. Sec. 604. Amendment permitting the destruction stitute printed in the bill shall be con- TITLE III—CREDIT UNION PROVISIONS of old records of a depository in- sidered as an original bill for the pur- Sec. 301. Privately insured credit unions au- stitution by the FDIC after the pose of amendment under the 5-minute thorized to become members of a appointment of the FDIC as re- rule and shall be considered read. Federal home loan bank. ceiver.

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00021 Fmt 4636 Sfmt 6343 E:\CR\FM\A18MR7.018 H18PT1 H1252 CONGRESSIONAL RECORD — HOUSE March 18, 2004 Sec. 605. Modernization of recordkeeping re- (1) by striking ‘‘or to cumulate’’ and inserting rities, or other assets in such amounts as the quirement. ‘‘or, if so provided by the articles of association Comptroller of the Currency determines to be Sec. 606. Clarification of extent of suspension, of the national bank, to cumulate’’; necessary for the protection of depositors and removal, and prohibition author- (2) by striking the comma after ‘‘his shares other investors and to be consistent with the ity of Federal banking agencies in shall equal’’; and principles of safety and soundness. cases of certain crimes by institu- (3) by adding at the end the following new ‘‘(2) LIMITATION.—Notwithstanding para- tion-affiliated parties. sentence: ‘‘The Comptroller of the Currency may graph (1), regulations prescribed under such Sec. 607. Streamlining depository institution prescribe such regulations to carry out the pur- paragraph shall not permit a foreign bank to merger application requirements. poses of this section as the Comptroller deter- keep assets on deposit in an amount that is less Sec. 608. Inclusion of Director of the Office of mines to be appropriate.’’. than the amount required for a State licensed Thrift Supervision in list of bank- SEC. 103. SIMPLIFYING DIVIDEND CALCULATIONS branch or agency of a foreign bank under the ing agencies regarding insurance FOR NATIONAL BANKS. laws and regulations of the State in which the customer protection regulations. (a) IN GENERAL.—Section 5199 of the Revised Federal agency or branch is located.’’. Sec. 609. Shortening of post-approval antitrust Statutes of the United States (12 U.S.C. 60) is SEC. 108. EQUAL TREATMENT FOR FEDERAL review period with the agreement amended to read as follows: AGENCIES OF FOREIGN BANKS. of the Attorney General. ‘‘SEC. 5199. NATIONAL BANK DIVIDENDS. The 1st sentence of section 4(d) of the Inter- Sec. 610. Protection of confidential information ‘‘(a) IN GENERAL.—Subject to subsection (b), national Banking Act of 1978 (12 U.S.C. 3102(d)) received by Federal banking regu- the directors of any national bank may declare is amended by inserting ‘‘from citizens or resi- lators from foreign banking super- a dividend of so much of the undivided profits dents of the United States’’ after ‘‘deposits’’. visors. of the bank as the directors judge to be expe- SEC. 109. MAINTENANCE OF A FEDERAL BRANCH Sec. 611. Prohibition on the participation in the dient. AND A FEDERAL AGENCY IN THE affairs of bank holding company SAME STATE. ‘‘(b) APPROVAL REQUIRED UNDER CERTAIN or Edge Act or agreement corpora- Section 4(e) of the International Banking Act CIRCUMSTANCES.—A national bank may not de- tions by convicted individual. of 1978 (12 U.S.C. 3102(e)) is amended by insert- clare and pay dividends in any year in excess of Sec. 612. Clarification that notice after separa- ing ‘‘if the maintenance of both an agency and an amount equal to the sum of the total of the tion from service may be made by a branch in the State is prohibited under the net income of the bank for that year and the re- an order. law of such State’’ before the period at the end. tained net income of the bank in the preceding Sec. 613. Examiners of financial institutions. two years, minus any transfers required by the SEC. 110. BUSINESS ORGANIZATION FLEXIBILITY Sec. 614. Parity in standards for institution-af- FOR NATIONAL BANKS. Comptroller of the Currency (including any filiated parties. (a) IN GENERAL.—Chapter one of title LXII of transfers required to be made to a fund for the Sec. 615. Enforcement against misrepresenta- the Revised Statutes of the United States (12 retirement of any preferred stock), unless the tions regarding FDIC deposit in- U.S.C. 21 et seq.) is amended by inserting after Comptroller of the Currency approves the dec- surance coverage. section 5136B the following new section: laration and payment of dividends in excess of Sec. 616. Compensation of Federal home loan ‘‘SEC. 5136C. ALTERNATIVE BUSINESS ORGANIZA- bank directors. such amount.’’. TION. (b) CLERICAL AMENDMENT.—The table of sec- Sec. 617. Extension of terms of Federal home ‘‘(a) IN GENERAL.—The Comptroller of the loan bank directors. tions for chapter three of title LXII of the Re- Currency may prescribe regulations— Sec. 618. Biennial reports on the status of agen- vised Statutes of the United States is amended ‘‘(1) to permit a national bank to be organized cy employment of minorities and by striking the item relating to section 5199 and other than as a body corporate; and women. inserting the following new item: ‘‘(2) to provide requirements for the organiza- Sec. 619. Coordination of State examination au- ‘‘5199. National bank dividends.’’. tional characteristics of a national bank orga- thority. SEC. 104. REPEAL OF OBSOLETE LIMITATION ON nized and operating other than as a body cor- TITLE VII—CLERICAL AND TECHNICAL REMOVAL AUTHORITY OF THE COMP- porate, consistent with the safety and sound- AMENDMENTS TROLLER OF THE CURRENCY. ness of the national bank. Section 8(e)(4) of the Federal Deposit Insur- ‘‘(b) EQUAL TREATMENT.—Except as provided Sec. 701. Clerical amendments to the Home ance Act (12 U.S.C. 1818(e)(4)) is amended by in regulations prescribed under subsection (a), a Owners’ Loan Act. striking the 5th sentence. national bank that is operating other than as a Sec. 702. Technical corrections to the Federal body corporate shall have the same rights and Credit Union Act. SEC. 105. REPEAL OF INTRASTATE BRANCH CAP- Sec. 703. Other technical corrections. ITAL REQUIREMENTS. privileges and shall be subject to the same du- Sec. 704. Repeal of obsolete provisions of the Section 5155(c) of the Revised Statutes of the ties, restrictions, penalties, liabilities, condi- Bank Holding Company Act of United States (12 U.S.C. 36(c)) is amended— tions, and limitations as a national bank that is 1956. (1) in the 2nd sentence, by striking ‘‘, without organized as a body corporate.’’. regard to the capital requirements of this sec- (b) TECHNICAL AND CONFORMING AMEND- TITLE I—NATIONAL BANK PROVISIONS tion,’’; and MENT.—Section 5136 of the Revised Statutes of SEC. 101. NATIONAL BANK DIRECTORS. (2) by striking the last sentence. the United States (12 U.S.C. 24) is amended, in Section 5146 of the Revised Statutes of the SEC. 106. CLARIFICATION OF WAIVER OF PUBLI- the matter preceding the paragraph designated United States (12 U.S.C. 72) is amended— CATION REQUIREMENTS FOR BANK as the ‘‘First’’, by inserting ‘‘or other form of (1) by striking ‘‘SEC. 5146. Every director must MERGER NOTICES. business organization provided under regula- during’’ and inserting the following: The last sentence of sections 2(a) and 3(a)(2) tions prescribed by the Comptroller of the Cur- ‘‘SEC. 5146. REQUIREMENTS FOR BANK DIREC- of the National Bank Consolidation and Merger rency under section 5136C’’ after ‘‘a body cor- TORS. Act (12 U.S.C. 215(a) and 215a(a)(2), respec- porate’’. ‘‘(a) RESIDENCY REQUIREMENTS.—Every direc- tively) are each amended by striking ‘‘Publica- (c) CLERICAL AMENDMENT.—The table of sec- tor of a national bank shall, during’’; tion of notice may be waived, in cases where the tions for chapter one of title LXII of the Revised (2) by striking ‘‘total number of directors. Comptroller determines that an emergency exists Statutes of the United States (12 U.S.C. 21 et Every director must own in his or her own justifying such waiver, by unanimous action of seq.) is amended by inserting after the item re- right’’ and inserting ‘‘total number of directors. the shareholders of the association or State lating to section 5136B the following new item: ‘‘(b) INVESTMENT REQUIREMENT.— bank’’ and inserting ‘‘Publication of notice may ‘‘5136C. Alternative business organization.’’. ‘‘(1) IN GENERAL.—Every director of a national be waived if the Comptroller determines that an SEC. 111. CLARIFICATION OF THE MAIN PLACE OF bank shall own, in his or her own right,’’; and emergency exists justifying such waiver or if the BUSINESS OF A NATIONAL BANK. (3) by adding at the end the following new shareholders of the association or State bank Title LXII of the Revised Statutes of the paragraph: agree by unanimous action to waive the publi- United States is amended— ‘‘(2) EXCEPTION FOR SUBORDINATED DEBT IN cation requirement for their respective institu- (1) in the paragraph designated the ‘‘Second’’ CERTAIN CASES.—In lieu of the requirements of tions’’. of section 5134 (12 U.S.C. 22), by striking ‘‘The paragraph (1) relating to the ownership of cap- SEC. 107. CAPITAL EQUIVALENCY DEPOSITS FOR place where its operations of discount and de- ital stock in the national bank, the Comptroller FEDERAL BRANCHES AND AGENCIES posit are to be carried on’’ and inserting ‘‘The of the Currency may, by regulation or order, OF FOREIGN BANKS. place where the main office of the national bank permit an individual to serve as a director of a Section 4(g) of the International Banking Act is, or is to be, located’’; and national bank that has elected, or notifies the of 1978 (12 U.S.C. 3102(g)) is amended to read as (2) in section 5190 (12 U.S.C. 81), by striking Comptroller of the bank’s intention to elect, to follows: ‘‘the place specified in its organization certifi- operate as a S corporation pursuant to section ‘‘(g) CAPITAL EQUIVALENCY DEPOSIT.— cate’’ and inserting ‘‘the main office of the na- 1362(a) of the Internal Revenue Code of 1986, if ‘‘(1) IN GENERAL.—Upon the opening of a Fed- tional bank’’. that individual holds debt of at least $1,000 eral branch or agency of a foreign bank in any TITLE II—SAVINGS ASSOCIATION issued by the national bank that is subordinated State and thereafter, the foreign bank, in addi- PROVISIONS to the interests of depositors and other general tion to any deposit requirements imposed under creditors of the national bank.’’. SEC. 201. PARITY FOR SAVINGS ASSOCIATIONS section 6, shall keep on deposit, in accordance UNDER THE SECURITIES EXCHANGE SEC. 102. VOTING IN SHAREHOLDER ELECTIONS. with such regulations as the Comptroller of the ACT OF 1934 AND THE INVESTMENT Section 5144 of the Revised Statutes of the Currency may prescribe in accordance with ADVISERS ACT OF 1940. United States (12 U.S.C. 61) is amended— paragraph (2), dollar deposits, investment secu- (a) SECURITIES EXCHANGE ACT OF 1934.—

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(1) DEFINITION OF BANK.—Section 3(a)(6) of ‘‘(ii) the Director of the Office of Thrift Super- ‘‘(II) the Director determines, by order, that the Securities Exchange Act of 1934 (15 U.S.C. vision, in the case of a savings association (as the aggregate amount of investments in a higher 78c(a)(6)) is amended— defined in section 3(b) of the Federal Deposit In- amount than the limit under this clause will (A) in subparagraph (A), by inserting ‘‘or a surance Act (12 U.S.C. 1813(b))) the deposits of pose no significant risk to the affected deposit Federal savings association, as defined in sec- which are insured by the Federal Deposit Insur- insurance fund. tion 2(5) of the Home Owners’ Loan Act’’ after ance Corporation; and’’; ‘‘(vi) MAXIMUM AGGREGATE INVESTMENT LIMI- ‘‘a banking institution organized under the laws (F) by moving subparagraph (H) and inserting TATION.—Notwithstanding clause (v), the aggre- of the United States’’; and such subparagraph after subparagraph (G); and gate amount of investments of any savings asso- (B) in subparagraph (C)— (G) by adding at the end the following new ciation under this subparagraph may not exceed (i) by inserting ‘‘or savings association as de- sentence: ‘‘As used in this paragraph, the term an amount equal to the sum of 10 percent of the fined in section 2(4) of the Home Owners’ Loan ‘savings and loan holding company’ has the savings association’s capital stock actually paid Act,’’ after ‘‘banking institution,’’; and meaning given it in section 10(a) of the Home in and unimpaired and 10 percent of the savings (ii) by inserting ‘‘or savings associations’’ Owners’ Loan Act (12 U.S.C. 1467a(a)).’’. association’s unimpaired surplus. after ‘‘having supervision over banks’’. (b) INVESTMENT ADVISERS ACT OF 1940.— ‘‘(vii) INVESTMENTS NOT SUBJECT TO OTHER (2) INCLUDE OTS UNDER THE DEFINITION OF AP- (1) DEFINITION OF BANK.—Section 202(a)(2) of LIMITATION ON QUALITY OF INVESTMENTS.—No PROPRIATE REGULATORY AGENCY FOR CERTAIN the Investment Advisers Act of 1940 (15 U.S.C. obligation a Federal savings association ac- PURPOSES.—Section 3(a)(34) of such Act (15 80b–2(a)(2)) is amended— quires or retains under this subparagraph shall U.S.C. 78c(a)(34)) is amended— (A) in subparagraph (A) by inserting ‘‘or a be taken into account for purposes of the limita- (A) in subparagraph (A)— Federal savings association, as defined in sec- tion contained in section 28(d) of the Federal (i) in clause (ii), by striking ‘‘(i) or (iii)’’ and tion 2(5) of the Home Owners’ Loan Act’’ after Deposit Insurance Act on the acquisition and inserting ‘‘(i), (iii), or (iv)’’; ‘‘a banking institution organized under the laws retention of any corporate debt security not of (ii) by striking ‘‘and’’ at the end of clause of the United States’’; and investment grade.’’. (iii); (B) in subparagraph (C)— (b) TECHNICAL AND CONFORMING AMEND- (iii) by redesignating clause (iv) as clause (v); (i) by inserting ‘‘, savings association as de- MENT.—Section 5(c)(3)(A) of the Home Owners’ and fined in section 2(4) of the Home Owners’ Loan Loan Act (12 U.S.C. 1464(c)(3)(A)) is amended to (iv) by inserting the following new clause Act,’’ after ‘‘banking institution’’; and read as follows: after clause (iii): (ii) by inserting ‘‘or savings associations’’ ‘‘(iv) the Director of the Office of Thrift Su- after ‘‘having supervision over banks’’. ‘‘(A) [Repealed.]’’. pervision, in the case of a savings association (2) CONFORMING AMENDMENTS.—Subsections SEC. 203. MERGERS AND CONSOLIDATIONS OF (as defined in section 3(b) of the Federal Deposit (a)(1)(A)(i), (a)(1)(B), (a)(2), and (b) of section FEDERAL SAVINGS ASSOCIATIONS 210A of such Act (15 U.S.C. 80b–10a), as added WITH NONDEPOSITORY INSTITU- Insurance Act (12 U.S.C. 1813(b))) the deposits TION AFFILIATES. by section 220 of the Gramm-Leach-Bliley Act, of which are insured by the Federal Deposit In- Section 5(d)(3) of the Home Owners’ Loan Act are each amended by striking ‘‘bank holding surance Corporation, a subsidiary or a depart- (12 U.S.C. 1464(d)(3)) is amended— company’’ each place it occurs and inserting ment or division of any such savings associa- (1) by redesignating subparagraph (B) as sub- ‘‘bank holding company or savings and loan tion, or a savings and loan holding company; paragraph (C); and holding company’’. and’’; (2) by inserting after subparagraph (A) the (B) in subparagraph (B)— (c) CONFORMING AMENDMENT TO THE INVEST- following new subparagraph: (i) in clause (ii), by striking ‘‘(i) or (iii)’’ and MENT COMPANY ACT OF 1940.—Section 10(c) of ‘‘(B) MERGERS AND CONSOLIDATIONS WITH inserting ‘‘(i), (iii), or (iv)’’; the Investment Company Act of 1940 (15 U.S.C. NONDEPOSITORY INSTITUTION AFFILIATES.— (ii) by striking ‘‘and’’ at the end of clause 80a–10(c)), as amended by section 213(c) of the ‘‘(i) IN GENERAL.—Upon the approval of the (iii); Gramm-Leach-Bliley Act, is amended by insert- Director, a Federal savings association may (iii) by redesignating clause (iv) as clause (v); ing after ‘‘1956)’’ the following: ‘‘or any one merge with any nondepository institution affil- and savings and loan holding company (together iate of the savings association. (iv) by inserting the following new clause with its affiliates and subsidiaries) (as such ‘‘(ii) RULE OF CONSTRUCTION.—No provision of after clause (iii): terms are defined in section 10 of the Home clause (i) shall be construed as— ‘‘(iv) the Director of the Office of Thrift Su- Owners’ Loan Act)’’. pervision, in the case of a savings association ‘‘(I) affecting the applicability of section 18(c) SEC. 202. INVESTMENTS BY FEDERAL SAVINGS of the Federal Deposit Insurance Act; or (as defined in section 3(b) of the Federal Deposit ASSOCIATIONS AUTHORIZED TO Insurance Act (12 U.S.C. 1813(b))) the deposits PROMOTE THE PUBLIC WELFARE. ‘‘(II) granting a Federal savings association of which are insured by the Federal Deposit In- (a) IN GENERAL.—Section 5(c)(3) of the Home any power or any authority to engage in any surance Corporation, or a subsidiary of any Owners’ Loan Act (12 U.S.C. 1464(c)) is amended activity that is not authorized for a Federal sav- such savings association, or a savings and loan by adding at the end the following new sub- ings association under any other provision of holding company; and’’; paragraph: this Act or any other provision of law.’’. (C) in subparagraph (C)— ‘‘(D) DIRECT INVESTMENTS TO PROMOTE THE SEC. 204. REPEAL OF STATUTORY DIVIDEND NO- (i) in clause (ii), by striking ‘‘(i) or (iii)’’ and PUBLIC WELFARE.— TICE REQUIREMENT FOR SAVINGS inserting ‘‘(i), (iii), or (iv)’’; ‘‘(i) IN GENERAL.—A Federal savings associa- ASSOCIATION SUBSIDIARIES OF SAV- (ii) by striking ‘‘and’’ at the end of clause tion may make investments designed primarily INGS AND LOAN HOLDING COMPA- NIES. (iii); to promote the public welfare, including the (iii) by redesignating clause (iv) as clause (v); welfare of low- and moderate-income commu- Section 10(f) of the Home Owners’ Loan Act and nities or families through the provision of hous- (12 U.S.C. 1467a(f)) is amended to read as fol- (iv) by inserting the following new clause ing, services, and jobs. lows: after clause (iii): ‘‘(ii) DIRECT INVESTMENTS OR ACQUISITION OF ‘‘(f) DECLARATION OF DIVIDEND.—The Direc- ‘‘(iv) the Director of the Office of Thrift Su- INTEREST IN OTHER COMPANIES.—Investments tor may— pervision, in the case of a savings association under clause (i) may be made directly or by pur- ‘‘(1) require a savings association that is a (as defined in section 3(b) of the Federal Deposit chasing interests in an entity primarily engaged subsidiary of a savings and loan holding com- Insurance Act (12 U.S.C. 1813(b))) the deposits in making such investments. pany to give prior notice to the Director of the of which are insured by the Federal Deposit In- ‘‘(iii) PROHIBITION ON UNLIMITED LIABILITY.— intent of the savings association to pay a divi- surance Corporation, a savings and loan hold- No investment may be made under this subpara- dend on its guaranty, permanent, or other ing company, or a subsidiary of a savings and graph which would subject a Federal savings nonwithdrawable stock; and loan holding company when the appropriate association to unlimited liability to any person. ‘‘(2) establish conditions on the payment of regulatory agency for such clearing agency is ‘‘(iv) SINGLE INVESTMENT LIMITATION TO BE dividends by such a savings association.’’. not the Commission; and’’; ESTABLISHED BY DIRECTOR.—Subject to clauses SEC. 205. MODERNIZING STATUTORY AUTHORITY (D) in subparagraph (D)— (v) and (vi), the Director shall establish, by FOR TRUST OWNERSHIP OF SAVINGS (i) by striking ‘‘and’’ at the end of clause (ii); order or regulation, limits on— ASSOCIATIONS. (ii) by redesignating clause (iii) as clause (iv); ‘‘(I) the amount any savings association may (a) IN GENERAL.—Section 10(a)(1)(C) of the and invest in any 1 project; and Home Owners’ Loan Act (12 U.S.C. (iii) by inserting the following new clause ‘‘(II) the aggregate amount of investment of 1467a(a)(1)(C)) is amended— after clause (ii): any savings association under this subpara- (1) by striking ‘‘trust,’’ and inserting ‘‘busi- ‘‘(iii) the Director of the Office of Thrift Su- graph. ness trust,’’; and pervision, in the case of a savings association ‘‘(v) FLEXIBLE AGGREGATE INVESTMENT LIMI- (2) by inserting ‘‘or any other trust unless by (as defined in section 3(b) of the Federal Deposit TATION.—The aggregate amount of investments its terms it must terminate within 25 years or not Insurance Act (12 U.S.C. 1813(b))) the deposits of any savings association under this subpara- later than 21 years and 10 months after the of which are insured by the Federal Deposit In- graph may not exceed an amount equal to the death of individuals living on the effective date surance Corporation; and’’; sum of 5 percent of the savings association’s of the trust,’’ after ‘‘or similar organization,’’. (E) in subparagraph (F)— capital stock actually paid in and unimpaired (b) TECHNICAL AND CONFORMING AMEND- (i) by redesignating clauses (ii), (iii), and (iv) and 5 percent of the savings association’s MENT.—Section 10(a)(3) of the Home Owners’ as clauses (iii), (iv), and (v), respectively; and unimpaired surplus, unless— Loan Act (12 U.S.C. 1467a(a)(3)) is amended— (ii) by inserting the following new clause after ‘‘(I) the Director determines that the savings (1) by striking ‘‘does not include—’’ and all clause (i): association is adequately capitalized; and that follows through ‘‘any company by virtue’’

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where such term appears in subparagraph (A) the Federal Deposit Insurance Act (12 U.S.C. (1) by striking ‘‘LEGAL PROCEEDINGS.—Any and inserting ‘‘does not include any company 1813(m))); judgment’’ and inserting ‘‘LEGAL PRO- by virtue’’; ‘‘(D) offer or sell a deposit product which con- CEEDINGS.— (2) by striking ‘‘; and’’ at the end of subpara- tains a feature that makes it callable at the op- ‘‘(1) IN GENERAL.—Any judgment’’; and graph (A) and inserting a period; and tion of such Federal savings association; or (2) by adding at the end the following new (3) by striking subparagraph (B). ‘‘(E) create a secondary market with respect paragraph: SEC. 206. REPEAL OF OVERLAPPING RULES GOV- to a deposit product or otherwise add enhance- ‘‘(2) CLARIFICATION OF APPLICABILITY OF CER- ERNING PURCHASED MORTGAGE ments or features to such product independent TAIN PROCEDURAL DOCTRINES.—In any pro- SERVICING RIGHTS. of those offered by the association.’’. ceeding seeking a monetary recovery against the Section 5(t) of the Home Owners’ Loan Act (12 SEC. 210. FUNERAL- AND CEMETERY-RELATED FI- United States, or an agency or official thereof, U.S.C. 1464(t)) is amended— DUCIARY SERVICES. based upon actions of the Federal Savings and (1) by striking paragraph (4) and inserting the Section 5(n) of the Home Owners’ Loan Act Loan Insurance Corporation prior to its dissolu- following new paragraph: (12 U.S.C. 1464(n)) is amended by adding at the tion, or the Federal Home Loan Bank Board ‘‘(4) [Repealed.]’’; and end the following new paragraph: prior to its dissolution, and arising from the Fi- ‘‘(11) FUNERAL- AND CEMETERY-RELATED FIDU- (2) in paragraph (9)(A), by striking ‘‘intan- nancial Institutions Reform, Recovery, and En- CIARY SERVICES.— gible assets, plus’’ and all that follows through forcement Act of 1989 or its implementation, and ‘‘(A) IN GENERAL.—A funeral director or ceme- the period at the end and inserting ‘‘intangible where any monetary recovery in such pro- assets.’’. tery operator, when acting in such capacity, (or any other person in connection with a contract ceeding would be paid from the FSLIC Resolu- SEC. 207. RESTATEMENT OF AUTHORITY FOR tion Fund or any supplements thereto, neither FEDERAL SAVINGS ASSOCIATIONS or other agreement with a funeral director or cemetery operator) may engage any Federal sav- the United States Court of Federal Claims, the TO INVEST IN SMALL BUSINESS IN- United States Court of Appeals for the Federal VESTMENT COMPANIES. ings association, regardless of where the asso- Circuit, nor any other court of competent juris- Subparagraph (D) of section 5(c)(4) of the ciation is located, to act in any fiduciary capac- diction shall dismiss, or affirm on appeal the Home Owners’ Loan Act (12 U.S.C. 1464(c)(4)) is ity in which the savings association has the dismissal of, the claims of any party seeking amended to read as follows: right to act in accordance with this section, in- such monetary recovery, on the basis of res judi- ‘‘(D) SMALL BUSINESS INVESTMENT COMPA- cluding holding funds deposited in trust or es- cata, collateral estoppel, or any similar doctrine, NIES.—Any Federal savings association may in- crow by the funeral director or cemetery oper- defense, or rule of law, based upon any deci- vest in 1 or more small business investment com- ator (or by such other party), and the savings sion, opinion, or order of judgment entered by panies, or in any entity established to invest association may act in such fiduciary capacity any court prior to July 1, 1996. Unless some solely in small business investment companies on behalf of the funeral director or cemetery op- other defense is applicable, in any such pro- formed under the Small Business Investment Act erator (or such other person). ceeding, the United States Court of Federal of 1958, except that the total amount of invest- ‘‘(B) DEFINITIONS.—For purposes of this para- Claims, the United States Court of Appeals for ments under this subparagraph may not at any graph, the following definitions shall apply: the Federal Circuit, and any other court of com- time exceed the amount equal to 5 percent of ‘‘(i) CEMETERY.—The term ‘cemetery’ means petent jurisdiction shall review the merits of the capital and surplus of the savings association.’’. any land or structure used, or intended to be used, for the interment of human remains in claims of the party seeking such monetary relief SEC. 208. REMOVAL OF LIMITATION ON INVEST- any form. and shall enter judgment accordingly.’’. MENTS IN AUTO LOANS. ‘‘(ii) CEMETERY OPERATOR.—The term ‘ceme- TITLE III—CREDIT UNION PROVISIONS (a) IN GENERAL.—Section 5(c)(1) of the Home tery operator’ means any person who contracts Owners’ Loan Act (12 U.S.C. 1464(c)(1)) is or accepts payment for merchandise, endow- SEC. 301. PRIVATELY INSURED CREDIT UNIONS amended by adding at the end the following AUTHORIZED TO BECOME MEMBERS ment, or perpetual care services in connection OF A FEDERAL HOME LOAN BANK. new subparagraph: with a cemetery. (a) IN GENERAL.—Section 4(a) of the Federal ‘‘(V) AUTO LOANS.—Loans and leases for ‘‘(iii) FUNERAL DIRECTOR.—The term ‘funeral motor vehicles acquired for personal, family, or director’ means any person who contracts or ac- Home Loan Bank Act (12 U.S.C. 1424(a)) is household purposes.’’. cepts payment to provide or arrange— amended by adding at the end the following (b) TECHNICAL AND CONFORMING AMENDMENT ‘‘(I) services for the final disposition of human new paragraph: RELATING TO QUALIFIED THRIFT INVESTMENTS.— remains; or ‘‘(5) CERTAIN PRIVATELY INSURED CREDIT Section 10(m)(4)(C)(ii) of the Home Owners’ ‘‘(II) funeral services, property, or merchan- UNIONS.— Loan Act (12 U.S.C. 1467a(m)(4)(C)(ii)) is dise (including cemetery services, property, or ‘‘(A) IN GENERAL.—A credit union which has amended by adding at the end the following merchandise).’’. been determined, in accordance with section new subclause: SEC. 211. REPEAL OF QUALIFIED THRIFT LENDER 43(e)(1) of the Federal Deposit Insurance Act ‘‘(VIII) Loans and leases for motor vehicles REQUIREMENT WITH RESPECT TO and subject to the requirements of subparagraph acquired for personal, family, or household pur- OUT-OF-STATE BRANCHES. (B), to meet all eligibility requirements for Fed- poses.’’. Section 5(r)(1) of the Home Owners’ Loan Act eral deposit insurance shall be treated as an in- SEC. 209. SELLING AND OFFERING OF DEPOSIT (12 U.S.C. 1464(r)(1)) is amended by striking the sured depository institution for purposes of de- PRODUCTS. last sentence. termining the eligibility of such credit union for Section 15(h) of the Securities Exchange Act SEC. 212. SMALL BUSINESS AND OTHER COMMER- membership in a Federal home loan bank under of 1934 (15 U.S.C. 78o(h)) is amended by adding CIAL LOANS. paragraphs (1), (2), and (3). at the end the following new paragraph: (a) ELIMINATION OF LENDING LIMIT ON SMALL ‘‘(B) CERTIFICATION BY APPROPRIATE SUPER- ‘‘(4) SELLING AND OFFERING OF DEPOSIT PROD- BUSINESS LOANS.—Section 5(c)(1) of the Home VISOR.— UCTS.—No law, rule, regulation, or order, or Owners’ Loan Act (12 U.S.C. 1464(c)(1)) is ‘‘(i) IN GENERAL.—For purposes of this para- other administrative action of any State or po- amended by inserting after subparagraph (V) graph and subject to clause (ii), a credit union litical subdivision thereof shall directly or indi- (as added by section 208 of this title) the fol- which lacks Federal deposit insurance and rectly require any individual who is an agent of lowing new subparagraph: which has applied for membership in a Federal 1 Federal savings association (as such term is ‘‘(W) SMALL BUSINESS LOANS.—Small business home loan bank may be treated as meeting all defined in section 2(5) of the Home Owners’ loans, as defined in regulations which the Di- the eligibility requirements for Federal deposit Loan Act (12 U.S.C. 1462(5)) in selling or offer- rector shall prescribe.’’. insurance only if the appropriate supervisor of (b) INCREASE IN LENDING LIMIT ON OTHER ing deposit (as such term is defined in section 3 the State in which the credit union is chartered BUSINESS LOANS.—Section 5(c)(2)(A) of the of the Federal Deposit Insurance Act (12 U.S.C. has determined that the credit union meets all Home Owners’ Loan Act (12 U.S.C. the eligibility requirements for Federal deposit 1813(l)) products issued by such association to 1464(c)(2)(A)) is amended by striking ‘‘, and insurance as of the date of the application for qualify or register as a broker, dealer, associated amounts in excess of 10 percent’’ and all that membership. person of a broker, or associated person of a follows through ‘‘by the Director’’. dealer, or to qualify or register in any other ‘‘(ii) CERTIFICATION DEEMED VALID.—If, in the SEC. 213. CLARIFYING CITIZENSHIP OF FEDERAL case of any credit union to which clause (i) ap- similar status or capacity, if the individual does SAVINGS ASSOCIATIONS FOR FED- not— ERAL COURT JURISDICTION. plies, the appropriate supervisor of the State in ‘‘(A) accept deposits or make withdrawals on Section 5 of the Home Owners’ Loan Act (12 which such credit union is chartered fails to behalf of any customer of the association; U.S.C. 1464) is amended by adding at the end make a determination pursuant to such clause ‘‘(B) offer or sell a deposit product as an the following new subsection: by the end of the 6-month period beginning on agent for another entity that is not subject to ‘‘(x) HOME STATE CITIZENSHIP.—In deter- the date of the application, the credit union supervision and examination by a Federal bank- mining whether a Federal court has diversity ju- shall be deemed to have met the requirements of ing agency (as defined in section 3(z) of the risdiction over a case in which a Federal savings clause (i). Federal Deposit Insurance Act (12 U.S.C. association is a party, the Federal savings asso- ‘‘(C) SECURITY INTERESTS OF FEDERAL HOME 1813(z)), the National Credit Union Administra- ciation shall be considered to be a citizen only LOAN BANK NOT AVOIDABLE.—Notwithstanding tion, or any officer, agency, or other entity of of the State in which such savings association any provision of State law authorizing a conser- any State which has primary regulatory author- has its main office.’’. vator or liquidating agent of a credit union to ity over State banks, State savings associations, SEC. 214. CLARIFICATION OF APPLICABILITY OF repudiate contracts, no such provision shall or State credit unions; CERTAIN PROCEDURAL DOCTRINES. apply with respect to— ‘‘(C) offer or sell a deposit product that is not Section 11A(d) of the Federal Deposit Insur- ‘‘(i) any extension of credit from any Federal an insured deposit (as defined in section 3(m) of ance Act (12 U.S.C. 1821a(d)) is amended— home loan bank to any credit union which is a

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00024 Fmt 4636 Sfmt 6333 E:\CR\FM\A18MR7.007 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1255 member of any such bank pursuant to this para- union for the credit union’s own account exceed SEC. 308. VOLUNTARY MERGERS INVOLVING MUL- graph; or at any time an amount equal to 10 percent of TIPLE COMMON-BOND CREDIT ‘‘(ii) any security interest in the assets of such the net worth of the credit union. UNIONS. credit union securing any such extension of ‘‘(B) AGGREGATE INVESTMENTS.—In no event Section 109(d)(2) of the Federal Credit Union credit.’’. may the aggregate amount of investment securi- Act (12 U.S.C. 1759(d)(2)) is amended— (b) COPIES OF AUDITS OF PRIVATE INSURERS ties held by a Federal credit union for the credit (1) by striking ‘‘or’’ at the end of clause (ii) of OF CERTAIN DEPOSITORY INSTITUTIONS RE- union’s own account exceed at any time an subparagraph (B); (2) by striking the period at the end of sub- QUIRED TO BE PROVIDED TO SUPERVISORY AGEN- amount equal to 10 percent of the assets of the paragraph (C) and inserting ‘‘; or’’; and CIES.—Section 43(a)(2) of the Federal Deposit credit union. (3) by adding at the end the following new Insurance Act (12 U.S.C. 1831t(a)(2)) is amend- ‘‘(3) INVESTMENT SECURITY DEFINED.— subparagraph: ed— ‘‘(A) IN GENERAL.—For purposes of this sub- ‘‘(D) a merger involving any such Federal (1) by striking ‘‘and’’ at the end of subpara- section, the term ‘investment security’ means credit union approved by the Board on or after graph (A)(i); marketable obligations evidencing the indebted- August 7, 1998.’’. (2) by striking the period at the end of clause ness of any person in the form of bonds, notes, (ii) of subparagraph (A) and inserting a semi- or debentures and other instruments commonly SEC. 309. CONVERSIONS INVOLVING COMMON- BOND CREDIT UNIONS. colon; referred to as investment securities. Section 109(g) of the Federal Credit Union Act (3) by inserting the following new clauses at ‘‘(B) FURTHER DEFINITION BY BOARD.—The (12 U.S.C. 1759(g)) is amended by inserting after the end of subparagraph (A): Board may further define the term ‘investment paragraph (2) the following new paragraph: ‘‘(iii) in the case of depository institutions de- security’. ‘‘(3) CRITERIA FOR CONTINUED MEMBERSHIP OF scribed in subsection (f)(2)(A) the deposits of ‘‘(4) INVESTMENT GRADE DEFINED.—The term CERTAIN MEMBER GROUPS IN COMMUNITY CHAR- which are insured by the private insurer, the ‘investment grade’ means with respect to an in- TER CONVERSIONS.—In the case of a voluntary National Credit Union Administration, not later vestment security purchased by a credit union conversion of a common-bond credit union de- than 7 days after that audit is completed; and for its own account, an investment security that scribed in paragraph (1) or (2) of subsection (b) ‘‘(iv) in the case of depository institutions de- at the time of such purchase is rated in one of into a community credit union described in sub- scribed in subsection (f)(2)(A) the deposits of the 4 highest rating categories by at least 1 na- section (b)(3), the Board shall prescribe, by reg- which are insured by the private insurer which tionally recognized statistical rating organiza- ulation, the criteria under which the Board may are members of a Federal home loan bank, the tion. determine that a member group or other portion Federal Housing Finance Board, not later than ‘‘(5) CLARIFICATION OF PROHIBITION ON STOCK of a credit union’s existing membership, that is 7 days after that audit is completed.’’; and OWNERSHIP.—No provision of this subsection located outside the well-defined local commu- (4) by adding at the end the following new shall be construed as authorizing a Federal nity, neighborhood, or rural district that shall subparagraph: credit union to purchase shares of stock of any constitute the community charter, can be satis- ‘‘(C) CONSULTATION.—The appropriate super- corporation for the credit union’s own account, factorily served by the credit union and remain visory agency of each State in which a private except as otherwise permitted by law.’’. deposit insurer insures deposits in an institution within the community credit union’s field of SEC. 304. INCREASE IN GENERAL 12-YEAR LIMITA- membership.’’. described in subsection (f)(2)(A) which— TION OF TERM OF FEDERAL CREDIT ‘‘(i) lacks Federal deposit insurance; and UNION LOANS TO 15 YEARS. SEC. 310. CREDIT UNION GOVERNANCE. ‘‘(ii) has become a member of a Federal home Section 107(a)(5) of the Federal Credit Union (a) EXPULSION OF MEMBERS FOR JUST loan bank, Act (12 U.S.C. 1757(5)) (as so designated by sec- CAUSE.—Subsection (b) of section 118 of the Fed- shall provide the National Credit Union Admin- tion 303 of this title) is amended— eral Credit Union Act (12 U.S.C. 1764(b)) is istration, upon request, with the results of any (1) in the matter preceding subparagraph (A), amended to read as follows: ‘‘(b) POLICY AND ACTIONS OF BOARDS OF DI- examination and reports related thereto con- by striking ‘‘to make loans, the maturities of RECTORS OF FEDERAL CREDIT UNIONS.— cerning the private deposit insurer to which which shall not exceed twelve years except as ‘‘(1) EXPULSION OF MEMBERS FOR NONPARTICI- such agency may have in its possession.’’. otherwise provided herein’’ and inserting ‘‘to PATION OR FOR JUST CAUSE.—The board of direc- make loans, the maturities of which shall not SEC. 302. LEASES OF LAND ON FEDERAL FACILI- tors of a Federal credit union may, by majority TIES FOR CREDIT UNIONS. exceed 15 years or any longer maturity as the vote of a quorum of directors, adopt and enforce (a) IN GENERAL.—Section 124 of the Federal Board may allow, in regulations, except as oth- a policy with respect to expulsion from member- Credit Union Act (12 U.S.C. 1770) is amended— erwise provided in this Act’’; ship, by a majority vote of such board of direc- (1) by striking ‘‘Upon application by any (2) in subparagraph (A)— tors, based on just cause, including disruption credit union’’ and inserting ‘‘Notwithstanding (A) by striking clause (ii); of credit union operations, or on nonparticipa- any other provision of law, upon application by (B) by redesignating clauses (iii) through (x) tion by a member in the affairs of the credit any credit union’’; as clauses (ii) through (ix), respectively; and union. (2) by inserting ‘‘on lands reserved for the use (C) by inserting ‘‘and’’ after the semicolon at ‘‘(2) WRITTEN NOTICE OF POLICY TO MEM- of, and under the exclusive or concurrent juris- the end of clause (viii) (as so redesignated). BERS.—If a policy described in paragraph (1) is diction of, the United States or’’ after ‘‘officer SEC. 305. INCREASE IN 1 PERCENT INVESTMENT adopted, written notice of the policy as adopted or agency of the United States charged with the LIMIT IN CREDIT UNION SERVICE and the effective date of such policy shall be ORGANIZATIONS. allotment of space’’; provided to— (3) by inserting ‘‘lease land or’’ after ‘‘such Section 107(a)(7)(I) of the Federal Credit ‘‘(A) each existing member of the credit union officer or agency may in his or its discretion’’; Union Act (12 U.S.C. 1757(7)(I)) (as so des- not less than 30 days prior to the effective date and ignated by section 303 of this title) is amended of such policy; and (4) by inserting ‘‘or the facility built on the by striking ‘‘up to 1 per centum of the total ‘‘(B) each new member prior to or upon apply- lease land’’ after ‘‘credit union to be served by paid’’ and inserting ‘‘up to 3 percent of the total ing for membership.’’. the allotment of space’’. paid’’. (b) TERM LIMITS AUTHORIZED FOR BOARD (b) CLERICAL AMENDMENT.—The heading for SEC. 306. MEMBER BUSINESS LOAN EXCLUSION MEMBERS OF FEDERAL CREDIT UNIONS.—Section section 124 is amended by inserting ‘‘OR FED- FOR LOANS TO NONPROFIT RELI- 111(a) of the Federal Credit Union Act (12 ERAL LAND’’ after ‘‘BUILDINGS’’. GIOUS ORGANIZATIONS. U.S.C. 1761(a)) is amended by adding at the end SEC. 303. INVESTMENTS IN SECURITIES BY FED- Section 107A(a) of the Federal Credit Union the following new sentence: ‘‘The bylaws of a ERAL CREDIT UNIONS. Act (12 U.S.C. 1757a(a)) is amended by inserting Federal credit union may limit the number of Section 107 of the Federal Credit Union Act ‘‘, excluding loans made to nonprofit religious consecutive terms any person may serve on the (12 U.S.C. 1757) is amended— organizations,’’ after ‘‘total amount of such board of directors of such credit union.’’. (1) in the matter preceding paragraph (1) by loans’’. (c) REIMBURSEMENT FOR LOST WAGES DUE TO striking ‘‘A Federal credit union’’ and inserting SEC. 307. CHECK CASHING AND MONEY TRANS- SERVICE ON CREDIT UNION BOARD NOT TREATED ‘‘(a) IN GENERAL.—Any Federal credit union’’; FER SERVICES OFFERED WITHIN AS COMPENSATION.—Section 111(c) of the Fed- and THE FIELD OF MEMBERSHIP. eral Credit Union Act (12 U.S.C. 1761(c)) is (2) by adding at the end the following new Paragraph (12) of section 107(a) of the Federal amended by inserting ‘‘, including lost wages,’’ subsection: Credit Union Act (12 U.S.C. 1757(12)) (as so des- after ‘‘the reimbursement of reasonable ex- ‘‘(b) INVESTMENT FOR THE CREDIT UNION’S ignated by section 303 of this title) is amended penses’’. OWN ACCOUNT.— to read as follows: SEC. 311. PROVIDING THE NATIONAL CREDIT ‘‘(1) IN GENERAL.—A Federal credit union may ‘‘(12) in accordance with regulations pre- UNION ADMINISTRATION WITH purchase and hold for its own account such in- scribed by the Board— GREATER FLEXIBILITY IN RESPOND- vestment securities of investment grade as the ‘‘(A) to sell, to persons in the field of member- ING TO MARKET CONDITIONS. Board may authorize by regulation, subject to ship, negotiable checks (including travelers Section 107(a)(5)(A)(vi)(I) of the Federal Cred- such limitations and restrictions as the Board checks), money orders, and other similar money it Union Act (12 U.S.C. 1757(5)(A)(vi)(I)) (as so may prescribe in the regulations. transfer instruments (including electronic fund designated by section 303 of this title) is amend- ‘‘(2) PERCENTAGE LIMITATIONS.— transfers); and ed by striking ‘‘six-month period and that pre- ‘‘(A) SINGLE OBLIGOR.—In no event may the ‘‘(B) to cash checks and money orders and re- vailing interest rate levels’’ and inserting ‘‘6- total amount of investment securities of any sin- ceive electronic fund transfers for persons in the month period or that prevailing interest rate lev- gle obligor or maker held by a Federal credit field of membership for a fee;’’. els’’.

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00025 Fmt 4636 Sfmt 6333 E:\CR\FM\A18MR7.007 H18PT1 H1256 CONGRESSIONAL RECORD — HOUSE March 18, 2004 SEC. 312. EXEMPTION FROM PRE-MERGER NOTIFI- tion 18(d) of the Federal Deposit Insurance Act) trust company the home State of which is the CATION REQUIREMENT OF THE on the same terms and conditions and subject to State in which the branch is located.’’; and CLAYTON ACT. the same limitations and restrictions as are ap- (ii) by striking paragraphs (5) and (6); Section 7A(c)(7) of the Clayton Act (15 U.S.C. plicable to the establishment of a de novo (B) in subsection (b)— 18a(c)(7)) is amended by inserting ‘‘section branch of a national bank in a host State under (i) by striking ‘‘bank’’ each place such term 205(b)(3) of the Federal Credit Union Act (12 section 5155(g) of the Revised Statutes of the appears in paragraph (2)(B)(i) and inserting U.S.C. 1785(b)(3)),’’ before ‘‘or section 3’’. United States. Such section 5155(g) shall be ap- ‘‘insured depository institution’’; SEC. 313. TREATMENT OF CREDIT UNIONS AS DE- plied for purposes of the preceding sentence by (ii) by striking ‘‘banks’’ where such term ap- POSITORY INSTITUTIONS UNDER SE- substituting ‘Board of Governors of the Federal pears in paragraph (2)(E) and inserting ‘‘in- CURITIES LAWS. Reserve System’ for ‘Comptroller of the Cur- sured depository institutions or trust compa- (a) DEFINITION OF BANK UNDER THE SECURI- rency’ and ‘State member bank’ for ‘national nies’’; TIES EXCHANGE ACT OF 1934.—Section 3(a)(6) of bank’.’’. (iii) by striking ‘‘bank affiliate’’ each place the Securities Exchange Act of 1934 (15 U.S.C. (d) INTERSTATE MERGER OF BANKS.— such term appears in that portion of paragraph 78c(a)(6)) (as amended by section 201(a)(1) of (1) MERGER OF INSURED BANK WITH ANOTHER (3) that precedes subparagraph (A) and insert- this Act) is amended— DEPOSITORY INSTITUTION OR TRUST COMPANY.— ing ‘‘insured depository institution affiliate’’; (1) by striking ‘‘this title, and (D) a receiver’’ Section 44(a)(1) of the Federal Deposit Insur- (iv) by striking ‘‘any bank’’ where such term and inserting ‘‘this title, (D) an insured credit ance Act (12 U.S.C. 1831u(a)(1)) is amended— appears in paragraph (3)(B) and inserting ‘‘any union (as defined in section 101(7) of the Fed- (A) by striking ‘‘Beginning on June 1, 1997, insured depository institution’’; eral Credit Union Act) but only for purposes of the’’ and inserting ‘‘The’’; and (v) by striking ‘‘bank’’ where such term ap- paragraphs (4) and (5) of this subsection and (B) by striking ‘‘insured banks with different pears in paragraph (4)(A) and inserting ‘‘in- only for activities otherwise authorized by ap- home States’’ and inserting ‘‘an insured bank sured depository institution and trust com- plicable laws to which such credit unions are and another insured depository institution or pany’’; and subject, and (E) a receiver’’; and trust company with a different home State than (vi) by striking ‘‘all banks’’ where such term (2) in subparagraph (E) (as so redesignated by the resulting insured bank’’. appears in paragraph (5) and inserting ‘‘all in- paragraph (1) of this subsection) by striking (2) NATIONAL BANK TRUST COMPANY MERGER sured depository institutions and trust compa- ‘‘(A), (B), or (C)’’ and inserting ‘‘(A), (B), (C), WITH OTHER TRUST COMPANY.—Subsection (b) of nies’’; or (D)’’. section 4 of the National Bank Consolidation (C) in subsection (d)(1), by striking ‘‘any (b) DEFINITION OF BANK UNDER THE INVEST- and Merger Act (12 U.S.C. 215a–1(b)) is amended bank’’ and inserting ‘‘any insured depository MENT ADVISERS ACT OF 1940.—Section 202(a)(2) to read as follows: institution or trust company’’; of the Investment Advisers Act of 1940 (15 U.S.C. ‘‘(b) MERGER OF NATIONAL BANK TRUST COM- (D) in subsection (e)— 80b–2(a)(2)) (as amended by section 201(b)(1) of PANY WITH ANOTHER TRUST COMPANY.—A na- (i) by striking ‘‘1 or more banks’’ and insert- this Act) is amended— tional bank that is a trust company may engage ing ‘‘1 or more insured depository institutions’’; (1) by striking ‘‘this title, and (D) a receiver’’ in a consolidation or merger under this Act with and and inserting ‘‘this title, (D) an insured credit any trust company with a different home State, (ii) by striking ‘‘paragraph (2), (4), or (5)’’ union (as defined in section 101(7) of the Fed- under the same terms and conditions that would and inserting ‘‘paragraph (2)’’; eral Credit Union Act) but only for activities apply if the trust companies were located within (E) by striking clauses (i) and (ii) of sub- otherwise authorized by applicable laws to the same State.’’. section (g)(4)(A) and inserting the following new which such credit unions are subject, and (E) a (e) INTERSTATE FIDUCIARY ACTIVITY.—Section clauses: receiver’’; and 18(d) of the Federal Deposit Insurance Act (12 ‘‘(i) with respect to a national bank or Fed- (2) in subparagraph (E) (as so redesignated by U.S.C. 1828(d)) is amended by adding at the end eral savings association, the State in which the paragraph (1) of this subsection) by striking the following new paragraph: main office of the bank or savings association is ‘‘(A), (B), or (C)’’ and inserting ‘‘(A), (B), (C), ‘‘(5) INTERSTATE FIDUCIARY ACTIVITY.— located; and or (D)’’. ‘‘(A) AUTHORITY OF STATE BANK SUPER- ‘‘(ii) with respect to a State bank, State sav- (c) DEFINITION OF APPROPRIATE FEDERAL VISOR.—The State bank supervisor of a State ings association, or State-chartered trust com- BANKING AGENCY.—Section 210A(c) of the In- bank may approve an application by the State pany, the State by which the bank, savings as- vestment Advisers Act of 1940 (15 U.S.C. 80b– bank, when not in contravention of home State sociation, or trust company is chartered; and’’; 10a(c)) is amended by inserting ‘‘and includes or host State law, to act as trustee, executor, ad- (F) by striking paragraph (5) of subsection (g) the National Credit Union Administration ministrator, registrar of stocks and bonds, and inserting the following new paragraph: Board, in the case of an insured credit union (as guardian of estates, assignee, receiver, com- ‘‘(5) HOST STATE.—The term ‘host State’ defined in section 101(7) of the Federal Credit mittee of estates of lunatics, or in any other fi- means— Union Act)’’ before the period at the end. duciary capacity in a host State in which State ‘‘(A) with respect to a bank, a State, other banks or other corporations which come into than the home State of the bank, in which the TITLE IV—DEPOSITORY INSTITUTION competition with national banks are permitted bank maintains, or seeks to establish and main- PROVISIONS to act under the laws of such host State. tain, a branch; and SEC. 401. EASING RESTRICTIONS ON INTERSTATE ‘‘(B) NONCONTRAVENTION OF HOST STATE ‘‘(B) with respect to a trust company and sole- BRANCHING AND MERGERS. LAW.—Whenever the laws of a host State au- ly for purposes of section 18(d)(5), a State, other (a) DE NOVO INTERSTATE BRANCHES OF NA- thorize or permit the exercise of any or all of the than the home State of the trust company, in TIONAL BANKS.— foregoing powers by State banks or other cor- which the trust company acts, or seeks to act, in (1) IN GENERAL.—Section 5155(g)(1) of the Re- porations which compete with national banks, 1 or more fiduciary capacities.’’; vised Statutes of the United States (12 U.S.C. the granting to and the exercise of such powers (G) in subsection (g)(10), by striking ‘‘section 36(g)(1)) is amended by striking ‘‘maintain a by a State bank as provided in this paragraph 18(c)(2)’’ and inserting ‘‘paragraph (1) or (2) of branch if—’’ and all that follows through the shall not be deemed to be in contravention of section 18(c), as appropriate,’’; and end of subparagraph (B) and inserting ‘‘main- host State law within the meaning of this para- (H) in subsection (g), by adding at the end the tain a branch.’’. graph. following new paragraph: (2) CLERICAL AMENDMENT.—The heading for ‘‘(C) STATE BANK INCLUDES TRUST COMPA- ‘‘(12) TRUST COMPANY.—The term ‘trust com- subsection (g) of section 5155 of the Revised NIES.—For purposes of this paragraph, the term pany’ means— Statutes of the United States is amended by ‘State bank’ includes any State-chartered trust ‘‘(A) any national bank; striking ‘‘STATE ‘OPT-IN’ ELECTION TO PERMIT’’. company (as defined in section 44(g)). ‘‘(B) any savings association; and (b) DE NOVO INTERSTATE BRANCHES OF STATE ‘‘(D) OTHER DEFINITIONS.—For purposes of ‘‘(C) any bank, banking association, trust NONMEMBER BANKS.— this paragraph, the term ‘home State’ and ‘host company, savings bank, or other banking insti- (1) IN GENERAL.—Section 18(d)(4)(A) of the State’ have the meanings given such terms in tution which is incorporated under the laws of Federal Deposit Insurance Act (12 U.S.C. section 44.’’. any State, 1828(d)(4)(A)) is amended by striking ‘‘maintain (f) TECHNICAL AND CONFORMING AMEND- that is authorized to act in 1 or more fiduciary a branch if—’’ and all that follows through the MENTS.— capacities but is not engaged in the business of end of clause (ii) and inserting ‘‘maintain a (1) Section 44 of the Federal Deposit Insur- receiving deposits other than trust funds (as de- branch.’’. ance Act (12 U.S.C. 1831u) is amended— fined in section 3(p)).’’. (2) CLERICAL AMENDMENT.—The heading for (A) in subsection (a)— (2) Section 3(d) of the Bank Holding Company paragraph (4) of section 18(d) of the Federal De- (i) by striking paragraph (4) and inserting the Act of 1956 (12 U.S.C. 1842(d)) is amended— posit Insurance Act is amended by striking following new paragraph: (A) in paragraph (1)— ‘‘STATE ‘OPT-IN’ ELECTION TO PERMIT INTER- ‘‘(4) TREATMENT OF BRANCHES IN CONNECTION (i) by striking subparagraphs (B) and (C); and STATE’’ and inserting ‘‘INTERSTATE’’. WITH CERTAIN INTERSTATE MERGER TRANS- (ii) by redesignating subparagraph (D) as sub- (c) DE NOVO INTERSTATE BRANCHES OF STATE ACTIONS.—In the case of an interstate merger paragraph (B); and MEMBER BANKS.—The 3rd undesignated para- transaction which involves the acquisition of a (B) in paragraph (5), by striking ‘‘subpara- graph of section 9 of the Federal Reserve Act (12 branch of an insured depository institution or graph (B) or (D)’’ and inserting ‘‘subparagraph U.S.C. 321) is amended by adding at the end the trust company without the acquisition of the in- (B)’’. following new sentences: ‘‘A State member bank sured depository institution or trust company, (3) Subsection (c) of section 4 of the National may establish and operate a de novo branch in the branch shall be treated, for purposes of this Bank Consolidation and Merger Act (12 U.S.C. a host State (as such terms are defined in sec- section, as an insured depository institution or 215a–1(c)) is amended to read as follows:

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‘‘(c) DEFINITIONS.—For purposes of this sec- (1) by striking subparagraph (G); and (3) The 1st sentence of section 5(c)(4)(B) of the tion, the terms ‘home State’, ‘out-of-State bank’, (2) by redesignating subparagraphs (H) and Home Owners’ Loan Act (12 U.S.C. and ‘trust company’ each have the same mean- (I) as subparagraphs (G) and (H), respectively. 1464(c)(4)(B)) is amended by striking ‘‘by sav- ing as in section 44(g) of the Federal Deposit In- SEC. 404. AMENDMENT TO PROVIDE AN INFLA- ings associations of such State and by Federal surance Act.’’. TION ADJUSTMENT FOR THE SMALL associations’’ and inserting ‘‘by State and Fed- (g) CLERICAL AMENDMENTS.— DEPOSITORY INSTITUTION EXCEP- eral depository institutions’’. (1) The heading for section 44(b)(2)(E) of the TION UNDER THE DEPOSITORY IN- (4) Subparagraph (A)(ii) and subparagraph Federal Deposit Insurance Act (12 U.S.C. STITUTION MANAGEMENT INTER- (B)(ii) of section 1(b)(2) of the Bank Service 1831u(b)(2)(E)) is amended by striking ‘‘BANKS’’ LOCKS ACT. Company Act (12 U.S.C. 1861(b)(2)) are each and inserting ‘‘INSURED DEPOSITORY INSTITU- Section 203(1) of the Depository Institution amended by striking ‘‘insured banks’’ and in- TIONS AND TRUST COMPANIES’’. Management Interlocks Act (12 U.S.C. 3202(1)) is serting ‘‘insured depository institutions’’. (2) The heading for section 44(e) of the Fed- amended by striking ‘‘$20,000,000’’ and inserting (5) Section 1(b)(8) of the Bank Service Com- eral Deposit Insurance Act (12 U.S.C. 1831u(e)) ‘‘$100,000,000’’. pany Act (12 U.S.C. 1861(b)(8)) is further is amended by striking ‘‘BANKS’’ and inserting SEC. 405. ENHANCING THE SAFETY AND SOUND- amended— ‘‘INSURED DEPOSITORY INSTITUTIONS’’. NESS OF INSURED DEPOSITORY IN- (A) by striking ‘‘insured bank’’ and inserting SEC. 402. STATUTE OF LIMITATIONS FOR JUDI- STITUTIONS. ‘‘insured depository institution’’ CIAL REVIEW OF APPOINTMENT OF A (a) CLARIFICATION RELATING TO THE ENFORCE- (B) by striking ‘‘insured banks’’ each place RECEIVER FOR DEPOSITORY INSTI- ABILITY OF AGREEMENTS AND CONDITIONS.—The such term appears and inserting ‘‘insured de- TUTIONS. Federal Deposit Insurance Act (12 U.S.C. 1811 et pository institutions’’; and (a) NATIONAL BANKS.—Section 2 of the Na- seq.) is amended by adding at the end the fol- (C) by striking ‘‘the bank’s’’ and inserting tional Bank Receivership Act (12 U.S.C. 191) is lowing new section: ‘‘the depository institution’s’’. amended— ‘‘SEC. 49. ENFORCEMENT OF AGREEMENTS. (6) Section 2 of the Bank Service Company Act (1) by striking ‘‘SECTION 2. The Comptroller of ‘‘(a) IN GENERAL.—Notwithstanding clause (i) (12 U.S.C. 1862) is amended by inserting ‘‘or sav- the Currency’’ and inserting the following: or (ii) of section 8(b)(6)(A) or section 38(e)(2)(E), ings associations, other than the limitation on ‘‘SEC. 2. APPOINTMENT OF RECEIVER FOR A NA- an appropriate Federal banking agency may en- the amount of investment by a Federal savings TIONAL BANK. force, under section 8, the terms of— association contained in section 5(c)(4)(B) of the ‘‘(a) IN GENERAL.—The Comptroller of the ‘‘(1) any condition imposed in writing by the Home Owners’ Loan Act’’ after ‘‘relating to Currency’’; and agency on a depository institution or an institu- banks’’. (2) by adding at the end the following new tion-affiliated party (including a bank holding (7) Section 4(c) of the Bank Service Company subsection: company) in connection with any action on any Act (12 U.S.C. 1864(c)) is amended by inserting ‘‘(b) JUDICIAL REVIEW.—If the Comptroller of ‘‘or State savings association’’ after ‘‘State the Currency appoints a receiver under sub- application, notice, or other request concerning a depository institution; or bank’’ each place such term appears. section (a), the national bank may, within 30 (8) Section 4(d) of the Bank Service Company ‘‘(2) any written agreement entered into be- days thereafter, bring an action in the United Act (12 U.S.C. 1864(d)) is amended by inserting tween the agency and an institution-affiliated States district court for the judicial district in ‘‘or Federal savings association’’ after ‘‘na- party (including a bank holding company). which the home office of such bank is located, tional bank’’ each place such term appears. ‘‘(b) RECEIVERSHIPS AND CONSERVATORSHIPS.— or in the United States District Court for the (9) Section 4(e) of the Bank Service Company After the appointment of the Corporation as the District of Columbia, for an order requiring the Act (12 U.S.C. 1864(e)) is amended to read as fol- receiver or conservator for any insured deposi- Comptroller of the Currency to remove the re- lows: ceiver, and the court shall, upon the merits, dis- tory institution, the Corporation may enforce ‘‘(e) A bank service company may perform— miss such action or direct the Comptroller of the any condition or agreement described in para- ‘‘(1) only those services that each depository Currency to remove the receiver.’’. graph (1) or (2) of subsection (a) involving such institution shareholder or member is otherwise (b) INSURED DEPOSITORY INSTITUTIONS.—Sec- institution or any institution-affiliated party authorized to perform under any applicable tion 11(c)(7) of the Federal Deposit Insurance (including a bank holding company), through Federal or State law; and Act (12 U.S.C. 1821(c)(7)) is amended to read as an action brought in an appropriate United ‘‘(2) such services only at locations in a State follows: States district court.’’. in which each such shareholder or member is ‘‘(7) JUDICIAL REVIEW.—If the Corporation is (b) PROTECTION OF CAPITAL OF INSURED DE- authorized to perform such services.’’. appointed (including the appointment of the POSITORY INSTITUTIONS.—Paragraph (1) of sec- (10) Section 4(f) of the Bank Service Company Corporation as receiver by the Board of Direc- tion 18(u) of the Federal Deposit Insurance Act Act (12 U.S.C. 1864(f)) is amended by inserting tors) as conservator or receiver of a depository (12 U.S.C. 1828(u)) is amended by striking sub- ‘‘or savings associations’’ after ‘‘location of institution under paragraph (4), (9), or (10), the paragraph (B) and by redesignating subpara- banks’’. depository institution may, within 30 days graph (C) as subparagraph (B). (11) Section 5 of the Bank Service Company thereafter, bring an action in the United States SEC. 406. INVESTMENTS BY INSURED SAVINGS AS- Act (12 U.S.C. 1865) is amended— district court for the judicial district in which SOCIATIONS IN BANK SERVICE COM- (A) in subsection (a)— the home office of such depository institution is PANIES AUTHORIZED. (i) by striking ‘‘insured bank’’ and inserting located, or in the United States District Court (a) IN GENERAL.—Sections 2 and 3 of the Bank ‘‘insured depository institution’’; and (ii) by striking ‘‘bank’s’’ and inserting ‘‘insti- for the District of Columbia, for an order requir- Service Company Act (12 U.S.C. 1862, 1863) are tution’s’’. ing the Corporation to be removed as the conser- each amended by striking ‘‘insured bank’’ each place such term appears and inserting ‘‘insured (B) in subsection (b), by striking ‘‘insured vator or receiver (regardless of how such ap- bank’’ and inserting ‘‘insured depository insti- pointment was made), and the court shall, upon depository institution’’. (b) TECHNICAL AND CONFORMING AMEND- tution’’; and the merits, dismiss such action or direct the Cor- (C) in subsection (c)— MENTS.— poration to be removed as the conservator or re- (i) by striking ‘‘the bank or banks’’ and in- (1) Section 1(b)(4) of the Bank Service Com- ceiver.’’. serting ‘‘any depository institution’’; and (c) EXPANSION OF PERIOD FOR CHALLENGING pany Act (12 U.S.C. 1861(b)(4)) is amended— (ii) by striking ‘‘capability of the bank’’ and THE APPOINTMENT OF A LIQUIDATING AGENT.— (A) by inserting ‘‘, except when such term ap- inserting ‘‘capability of the depository institu- Subparagraph (B) of section 207(a)(1) of the pears in connection with the term ‘insured de- tion’’. Federal Credit Union Act (12 U.S.C. 1787(a)(1)) pository institution’,’’ after ‘‘means’’; and (12) Section 7 of the Bank Service Company is amended by striking ‘‘10 days’’ and inserting (B) by striking ‘‘Federal Home Loan Bank Act (12 U.S.C. 1867) is amended— ‘‘30 days’’. Board’’ and inserting ‘‘Director of the Office of (A) in subsection (b), by striking ‘‘insured (d) EFFECTIVE DATE.—The amendments made Thrift Supervision’’. bank’’ and inserting ‘‘insured depository insti- by subsections (a), (b), and (c) shall apply with (2) Section 1(b) of the Bank Service Company tution’’; and respect to conservators, receivers, or liquidating Act (12 U.S.C. 1861(b)) is amended— (B) in subsection (c)— agents appointed on or after the date of the en- (A) by striking paragraph (5) and inserting (i) by striking ‘‘a bank’’ each place such term actment of this Act. the following new paragraph: appears and inserting ‘‘a depository institu- SEC. 403. REPORTING REQUIREMENTS RELATING ‘‘(5) INSURED DEPOSITORY INSTITUTION.—The tion’’; and TO INSIDER LENDING. term ‘insured depository institution’ has the (ii) by striking ‘‘the bank’’ each place such (a) REPORTING REQUIREMENTS REGARDING meaning given the term in section 3(c) of the term appears and inserting ‘‘the depository in- LOANS TO EXECUTIVE OFFICERS OF MEMBER Federal Deposit Insurance Act;’’; stitution’’. BANKS.—Section 22(g) of the Federal Reserve (B) by striking ‘‘and’’ at the end of paragraph SEC. 407. CROSS GUARANTEE AUTHORITY. Act (12 U.S.C. 375a) is amended— (7); Subparagraph (A) of section 5(e)(9) of the (1) by striking paragraphs (6) and (9); and (C) by striking the period at the end of para- Federal Deposit Insurance Act (12 U.S.C. (2) by redesignating paragraphs (7), (8), and graph (8) and inserting ‘‘; and’’; and 1815(e)(9)(A)) is amended to read as follows: (10) as paragraphs (6), (7), and (8), respectively. (D) by adding at the end the following new ‘‘(A) such institutions are controlled by the (b) REPORTING REQUIREMENTS REGARDING paragraph: same company; or’’. LOANS FROM CORRESPONDENT BANKS TO EXECU- ‘‘(9) the terms ‘State depository institution’, SEC. 408. GOLDEN PARACHUTE AUTHORITY AND TIVE OFFICERS AND SHAREHOLDERS OF INSURED ‘Federal depository institution’, ‘State savings NONBANK HOLDING COMPANIES. BANKS.—Section 106(b)(2) of the Bank Holding association’ and ‘Federal savings association’ Subsection (k) of section 18 of the Federal De- Company Act Amendments of 1970 (12 U.S.C. have the meanings given the terms in section 3 posit Insurance Act (12 U.S.C. 1828(k)) is 1972(2)) is amended— of the Federal Deposit Insurance Act.’’. amended—

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00027 Fmt 4636 Sfmt 6333 E:\CR\FM\A18MR7.007 H18PT1 H1258 CONGRESSIONAL RECORD — HOUSE March 18, 2004 (1) in paragraph (2)(A), by striking ‘‘or depos- pany does not own or control 25 percent or more TITLE VI—BANKING AGENCY PROVISIONS itory institution holding company’’ and insert- of the total equity or any class of voting securi- SEC. 601. WAIVER OF EXAMINATION SCHEDULE IN ing ‘‘or covered company’’; ties of such company.’’. ORDER TO ALLOCATE EXAMINER RE- (2) by striking subparagraph (B) of paragraph SEC. 502. AMENDMENT TO PROVIDE THE FED- SOURCES. (2) and inserting the following new subpara- ERAL RESERVE BOARD WITH DIS- Section 10(d) of the Federal Deposit Insurance graph: CRETION CONCERNING THE IMPUTA- Act (12 U.S.C. 1820(d)) is amended— ‘‘(B) Whether there is a reasonable basis to TION OF CONTROL OF SHARES OF A (1) by redesignating paragraphs (5), (6), (7), believe that the institution-affiliated party is COMPANY BY TRUSTEES. (8), (9), and (10) as paragraphs (6), (7), (8), (9), substantially responsible for— Section 2(g)(2) of the Bank Holding Company (10), and (11), respectively; ‘‘(i) the insolvency of the depository institu- Act of 1956 (12 U.S.C. 1841(g)(2)) is amended by (2) by inserting after paragraph (4), the fol- tion or covered company; inserting ‘‘, unless the Board determines that lowing new paragraph: ‘‘(ii) the appointment of a conservator or re- such treatment is not appropriate in light of the ‘‘(5) WAIVER OF SCHEDULE WHEN NECESSARY TO ceiver for the depository institution; or facts and circumstances of the case and the pur- ACHIEVE SAFE AND SOUND ALLOCATION OF EXAM- ‘‘(iii) the depository institution’s troubled con- poses of this Act’’ before the period at the end. INER RESOURCES.—Notwithstanding paragraphs dition (as defined in the regulations prescribed SEC. 503. ELIMINATING GEOGRAPHIC LIMITS ON (1), (2), (3), and (4), an appropriate Federal pursuant to section 32(f)).’’; THRIFT SERVICE COMPANIES. banking agency may make adjustments in the (3) in paragraph (2)(F), by striking ‘‘deposi- (a) IN GENERAL.—The 1st sentence of section examination cycle for an insured depository in- tory institution holding company’’ and inserting 5(c)(4)(B) of the Home Owners’ Loan Act (12 stitution if necessary to allocate available re- ‘‘covered company,’’; U.S.C. 1464(c)(4)(B)) (as amended by section sources of examiners in a manner that provides (4) in paragraph (3) in the matter preceding 406(b)(3) of this Act) is amended— for the safety and soundness of, and the effec- subparagraph (A), by striking ‘‘depository insti- (1) by striking ‘‘corporation organized’’ and tive examination and supervision of, insured de- tution holding company’’ and inserting ‘‘cov- all that follows through ‘‘is available for pur- pository institutions.’’; and ered company’’; chase’’ and inserting ‘‘company, if the entire (3) in paragraphs (8) and (9), as so redesig- (5) in paragraph (3)(A), by striking ‘‘holding capital of the company is available for pur- nated, by striking ‘‘paragraph (6)’’ and insert- company’’ and inserting ‘‘covered company’’; chase’’; and ing ‘‘paragraph (7)’’. (6) in paragraph (4)(A)— (2) by striking ‘‘having their home offices in SEC. 602. INTERAGENCY DATA SHARING. (A) by striking ‘‘depository institution holding such State’’. (a) FEDERAL BANKING AGENCIES.—Section company’’ each place such term appears and in- (b) TECHNICAL CORRECTIONS.— 7(a)(2) of the Federal Deposit Insurance Act (12 serting ‘‘covered company’’; and (1) The heading for subparagraph (B) of sec- U.S.C. 1817(a)(2)) is amended by adding at the (B) by striking ‘‘holding company’’ each place end the following new subparagraph: such term appears (other than in connection tion 5(c)(4) of the Home Owners’ Loan Act (12 ‘‘(C) DATA SHARING WITH OTHER AGENCIES AND with the term referred to in subparagraph (A)) U.S.C. 1464(c)(4)(B)) is amended by striking PERSONS.—In addition to reports of examina- and inserting ‘‘covered company’’; ‘‘CORPORATIONS’’ and inserting ‘‘COMPANIES’’. (2) The 2nd sentence of section 5(n)(1) of the tion, reports of condition, and other reports re- (7) in paragraph (5)(A), by striking ‘‘deposi- quired to be regularly provided to the Corpora- tory institution holding company’’ and inserting Home Owners’ Loan Act (12 U.S.C. 1464(n)(1)) is amended by striking ‘‘service corporations’’ and tion (with respect to all insured depository insti- ‘‘covered company’’; tutions, including a depository institution for (8) in paragraph (5), by adding at the end the inserting ‘‘service companies’’. (3) Section 5(q)(1) of the Home Owners’ Loan which the Corporation has been appointed con- following new subparagraph: servator or receiver) or an appropriate State OVERED COMPANY.—The term ‘covered Act (12 U.S.C. 1464(q)(1)) is amended by striking ‘‘(D) C bank supervisor (with respect to a State deposi- company’ means any depository institution ‘‘service corporation’’ each place such term ap- tory institution) under subparagraph (A) or (B), holding company (including any company re- pears in subparagraphs (A), (B), and (C) and a Federal banking agency may, in the agency’s quired to file a report under section 4(f)(6) of the inserting ‘‘service company’’. discretion, furnish any report of examination or Bank Holding Company Act of 1956), or any (4) Section 10(m)(4)(C)(iii)(II) of the Home other confidential supervisory information con- other company that controls an insured deposi- Owners’ Loan Act (12 U.S.C. cerning any depository institution or other enti- tory institution.’’; and 1467a(m)(4)(C)(iii)(II)) is amended by striking ty examined by such agency under authority of (9) in paragraph (6)— ‘‘service corporation’’ each place such term ap- any Federal law, to— (A) by striking ‘‘depository institution holding pears and inserting ‘‘service company’’. ‘‘(i) any other Federal or State agency or au- company’’ and inserting ‘‘covered company,’’; SEC. 504. CLARIFICATION OF SCOPE OF APPLICA- thority with supervisory or regulatory authority and BLE RATE PROVISION. over the depository institution or other entity; (B) by striking ‘‘or holding company’’ and in- Section 44(f) of the Federal Deposit Insurance ‘‘(ii) any officer, director, or receiver of such serting ‘‘or covered company’’. Act (12 U.S.C. 1831u(f)) is amended by adding at depository institution or entity; and SEC. 409. AMENDMENTS RELATING TO CHANGE IN the end the following new paragraphs: ‘‘(iii) any other person the Federal banking BANK CONTROL. ‘‘(3) OTHER LENDERS.—In the case of any agency determines to be appropriate.’’. Section 7(j) of the Federal Deposit Insurance other lender doing business in the State de- (b) NATIONAL CREDIT UNION ADMINISTRA- Act (12 U.S.C. 1817(j)) is amended— scribed in paragraph (1), the maximum interest TION.—Section 202(a) of the Federal Credit (1) in paragraph (1)(D)— rate or amount of interest, discount points, fi- Union Act (12 U.S.C. 1782(a)) is amended by (A) by striking ‘‘is needed to investigate’’ and nance charges, or other similar charges that adding at the end the following new paragraph: inserting ‘‘is needed— may be charged, taken, received, or reserved ‘‘(8) DATA SHARING WITH OTHER AGENCIES AND ‘‘(i) to investigate’’; from time to time in any loan, discount, or credit PERSONS.—In addition to reports of examina- (B) by striking ‘‘United States Code.’’ and in- sale made, or upon any note, bill of exchange, tion, reports of condition, and other reports re- serting ‘‘United States Code; or’’; and financing transaction, or other evidence of debt quired to be regularly provided to the Board (C) by adding at the end the following new issued to or acquired by any other lender shall (with respect to all insured credit unions, in- clause: be equal to not more than the greater of the cluding a credit union for which the Corpora- ‘‘(ii) to analyze the safety and soundness of rates described in subparagraph (A) or (B) of tion has been appointed conservator or liqui- any plans or proposals described in paragraph paragraph (1). dating agent) or an appropriate State commis- (6)(E) or the future prospects of the institu- ‘‘(4) OTHER LENDER DEFINED.—For purposes of sion, board, or authority having supervision of tion.’’; and paragraph (3), the term ‘other lender’ means a State-chartered credit union, the Board may, (2) in paragraph (7)(C), by striking ‘‘the fi- any person engaged in the business of selling or in the Board’s discretion, furnish any report of nancial condition of any acquiring person’’ and financing the sale of personal property (and examination or other confidential supervisory inserting ‘‘either the financial condition of any any services incidental to the sale of personal information concerning any credit union or acquiring person or the future prospects of the property) in such State, except that, with regard other entity examined by the Board under au- institution’’. to any person or entity described in such para- thority of any Federal law, to— TITLE V—DEPOSITORY INSTITUTION graph, such term does not include— ‘‘(A) any other Federal or State agency or au- AFFILIATES PROVISIONS ‘‘(A) an insured depository institution; or thority with supervisory or regulatory authority SEC. 501. CLARIFICATION OF CROSS MARKETING ‘‘(B) any person or entity engaged in the busi- over the credit union or other entity; PROVISION. ness of providing a short-term cash advance to ‘‘(B) any officer, director, or receiver of such Section 4(n)(5) of the Bank Holding Company any consumer in exchange for— credit union or entity; and Act of 1956 (12 U.S.C. 1843(n)(5)) is amended— ‘‘(i) a consumer’s personal check or share ‘‘(C) any other institution-affiliated party of (1) in subparagraph (B), by striking ‘‘sub- draft, in the amount of the advance plus a fee, such credit union or entity the Board deter- section (k)(4)(I)’’ and inserting ‘‘subparagraph where presentment or negotiation of such check mines to be appropriate.’’. (H) or (I) of subsection (k)(4)’’; and or share draft is deferred by agreement of the SEC. 603. PENALTY FOR UNAUTHORIZED PARTICI- (2) by adding at the end the following new parties until a designated future date; or PATION BY CONVICTED INDIVIDUAL. subparagraph: ‘‘(ii) a consumer authorization to debit the Section 19 of the Federal Deposit Insurance ‘‘(C) THRESHOLD OF CONTROL.—Subparagraph consumer’s transaction account, in the amount Act (12 U.S.C. 1829) is amended by adding at the (A) shall not apply with respect to a company of the advance plus a fee, where such account end the following new subsection: described or referred to in clause (i) or (ii) of will be debited on or after a designated future ‘‘(c) NONINSURED BANKS.—Subsections (a) and such subparagraph if the financial holding com- date.’’. (b) shall apply to a noninsured national bank

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and a noninsured State member bank, and any (1) IN GENERAL.—Section 8(g)(1) of the Federal ‘‘(4) REPORTS ON COMPETITIVE FACTORS.— agency or noninsured branch (as such terms are Deposit Insurance Act (12 U.S.C. 1818(g)(1)) is ‘‘(A) REQUEST FOR REPORT.—In the interests defined in section 1(b) of the International amended— of uniform standards, before acting on any ap- Banking Act of 1978) of a foreign bank as if (A) in subparagraph (A), by striking ‘‘the de- plication for approval of a merger transaction, such bank, branch, or agency were an insured pository’’ each place such term appears and in- the responsible agency, unless the agency finds depository institution, except such subsections serting ‘‘any depository’’; that it must act immediately in order to prevent shall be applied for purposes of this subsection (B) in subparagraph (B)(i), by inserting ‘‘of the probable failure of a depository institution by substituting the agency determined under the which the subject of the order is an institution- involved, shall— following paragraphs for ‘Corporation’ each affiliated party’’ before the period at the end; ‘‘(i) request a report on the competitive factors place such term appears in such subsections: (C) in subparagraph (C), by striking ‘‘the de- involved from the Attorney General; and ‘‘(1) The Comptroller of the Currency, in the pository’’ each place such term appears and in- ‘‘(ii) provide a copy of the request to the Cor- case of a noninsured national bank or any Fed- serting ‘‘any depository’’; poration (when the Corporation is not the re- (D) in subparagraph (D)(i), by inserting ‘‘of eral agency or noninsured Federal branch of a sponsible agency). which the subject of the order is an institution- foreign bank. ‘‘(B) FURNISHING OF REPORT.—The report re- ‘‘(2) The Board of Governors of the Federal affiliated party’’ after ‘‘upon the depository in- quested under subparagraph (A) shall be fur- Reserve System, in the case of a noninsured stitution’’; and nished by the Attorney General to the respon- (E) by adding at the end the following new State member bank or any State agency or non- sible agency— subparagraph: ‘‘(i) not more than 30 calendar days after the insured State branch of a foreign bank.’’. ONTINUATION OF AUTHORITY.—A Fed- ‘‘(E) C date on which the Attorney General received the SEC. 604. AMENDMENT PERMITTING THE DE- eral banking agency may issue an order under request; or STRUCTION OF OLD RECORDS OF A this paragraph with respect to an individual DEPOSITORY INSTITUTION BY THE ‘‘(ii) not more than 10 calendar days after who is an institution-affiliated party at a depos- FDIC AFTER THE APPOINTMENT OF such date, if the requesting agency advises the THE FDIC AS RECEIVER. itory institution at the time of an offense de- Attorney General that an emergency exists re- scribed in subparagraph (A) without regard to— Section 11(d)(15)(D) of the Federal Deposit In- quiring expeditious action.’’. ‘‘(i) whether such individual is an institution- surance Act (12 U.S.C. 1821(d)(15)(D)) is amend- (b) TECHNICAL AND CONFORMING AMEND- affiliated party at any depository institution at ed— MENT.—The penultimate sentence of section the time the order is considered or issued by the (1) by striking ‘‘RECORDKEEPING REQUIRE- 18(c)(6) of the Federal Deposit Insurance Act (12 agency; or MENT.—After the end of the 6-year period’’ and ‘‘(ii) whether the depository institution at U.S.C. 1828(c)(6)) is amended to read as follows: inserting ‘‘RECORDKEEPING REQUIREMENT.— which the individual was an institution-affili- ‘‘If the agency has advised the Attorney Gen- ‘‘(i) IN GENERAL.—Except as provided in ated party at the time of the offense remains in eral under paragraph (4)(B) of the existence of clause (ii), after the end of the 6-year period’’; existence at the time the order is considered or an emergency requiring expeditious action and and has requested a report on the competitive factors (2) by adding at the end the following new issued by the agency.’’. (2) CLERICAL AMENDMENT.—Section 8(g) of the within 10 days, the transaction may not be con- clause: Federal Deposit Insurance Act (12 U.S.C. summated before the fifth calendar day after the ‘‘(ii) OLD RECORDS.—In the case of records of 1818(g)) is amended by striking ‘‘(g)’’ and insert- date of approval by the agency.’’. an insured depository institution which are at ing the following new subsection heading: SEC. 608. INCLUSION OF DIRECTOR OF THE OF- least 10 years old as of the date the Corporation ‘‘(g) SUSPENSION, REMOVAL, AND PROHIBITION FICE OF THRIFT SUPERVISION IN is appointed as the receiver of such depository FROM PARTICIPATION ORDERS IN THE CASE OF LIST OF BANKING AGENCIES RE- institution, the Corporation may destroy such GARDING INSURANCE CUSTOMER CERTAIN CRIMINAL OFFENSES.—’’. PROTECTION REGULATIONS. records in accordance with clause (i) any time (b) INSURED CREDIT UNIONS.— after such appointment is final without regard (1) IN GENERAL.—Section 206(i)(1) of the Fed- Section 47(g)(2)(B)(i) of the Federal Deposit to the 6-year period of limitation contained in eral Credit Union Act (12 U.S.C. 1786(i)(1)) is Insurance Act (12 U.S.C. 1831x(g)(2)(B)(i)) is such clause.’’. amended— amended by inserting ‘‘the Director of the Office SEC. 605. MODERNIZATION OF RECORDKEEPING (A) in subparagraph (A), by striking ‘‘the of Thrift Supervision,’’ after ‘‘Comptroller of the REQUIREMENT. credit union’’ each place such term appears and Currency,’’. Subsection (f) of section 10 of the Federal De- inserting ‘‘any credit union’’; SEC. 609. SHORTENING OF POST-APPROVAL ANTI- posit Insurance Act (12 U.S.C. 1820(f)) is amend- (B) in subparagraph (B)(i), by inserting ‘‘of TRUST REVIEW PERIOD WITH THE ed to read as follows: which the subject of the order is, or most re- AGREEMENT OF THE ATTORNEY ‘‘(f) PRESERVATION OF AGENCY RECORDS.— cently was, an institution-affiliated party’’ be- GENERAL. ‘‘(1) IN GENERAL.—A Federal banking agency fore the period at the end; (a) ANTITRUST REVIEWS UNDER THE BANK may cause any and all records, papers, or docu- (C) in subparagraph (C), by striking ‘‘the HOLDING COMPANY ACT OF 1956.—The 4th sen- ments kept by the agency or in the possession or credit union’’ each place such term appears and tence of section 11(b) of the Bank Holding Com- custody of the agency to be— inserting ‘‘any credit union’’; pany Act of 1956 (12 U.S.C. 1849(b) is amended ‘‘(A) photographed or microphotographed or (D) in subparagraph (D)(i), by striking ‘‘upon by striking ‘‘15 calendar days’’ and inserting ‘‘5 otherwise reproduced upon film; or such credit union’’ and inserting ‘‘upon the calendar days’’. ‘‘(B) preserved in any electronic medium or credit union of which the subject of the order is, (b) ANTITRUST REVIEWS UNDER THE FEDERAL format which is capable of— or most recently was, an institution-affiliated DEPOSIT INSURANCE ACT.—The last sentence of ‘‘(i) being read or scanned by computer; and party’’; and section 18(c)(6) of the Federal Deposit Insurance ‘‘(ii) being reproduced from such electronic (E) by adding at the end the following new Act (12 U.S.C. 1828(c)(6)) is amended by striking medium or format by printing or any other form subparagraph: ‘‘15 calendar days’’ and inserting ‘‘5 calendar of reproduction of electronically stored data. ‘‘(E) CONTINUATION OF AUTHORITY.—The days’’. ‘‘(2) TREATMENT AS ORIGINAL RECORDS.—Any Board may issue an order under this paragraph SEC. 610. PROTECTION OF CONFIDENTIAL INFOR- photographs, microphotographs, or photo- with respect to an individual who is an institu- MATION RECEIVED BY FEDERAL graphic film or copies thereof described in para- tion-affiliated party at a credit union at the BANKING REGULATORS FROM FOR- graph (1)(A) or reproduction of electronically time of an offense described in subparagraph EIGN BANKING SUPERVISORS. stored data described in paragraph (1)(B) shall (A) without regard to— Section 15 of the International Banking Act of be deemed to be an original record for all pur- ‘‘(i) whether such individual is an institution- 1978 (12 U.S.C. 3109) is amended by adding at poses, including introduction in evidence in all affiliated party at any credit union at the time the end the following new subsection: State and Federal courts or administrative agen- the order is considered or issued by the Board; ‘‘(c) CONFIDENTIAL INFORMATION RECEIVED cies and shall be admissible to prove any act, or FROM FOREIGN SUPERVISORS.— transaction, occurrence, or event therein re- ‘‘(ii) whether the credit union at which the in- ‘‘(1) IN GENERAL.—Except as provided in corded. dividual was an institution-affiliated party at paragraph (3), a Federal banking agency may ‘‘(3) AUTHORITY OF THE FEDERAL BANKING the time of the offense remains in existence at not be compelled to disclose information received AGENCIES.—Any photographs, microphoto- the time the order is considered or issued by the from a foreign regulatory or supervisory author- graphs, or photographic film or copies thereof Board.’’. ity if— described in paragraph (1)(A) or reproduction of (2) CLERICAL AMENDMENT.—Section 206(i) of ‘‘(A) the foreign regulatory or supervisory au- electronically stored data described in para- the Federal Credit Union Act (12 U.S.C. 1786(i)) thority has, in good faith, determined and rep- graph (1)(B) shall be preserved in such manner is amended by striking ‘‘(i)’’ at the beginning resented to such Federal banking agency that as the Federal banking agency shall prescribe and inserting the following new subsection public disclosure of the information would vio- and the original records, papers, or documents heading: late the laws applicable to that foreign regu- may be destroyed or otherwise disposed of as the ‘‘(i) SUSPENSION, REMOVAL, AND PROHIBITION latory or supervisory authority; and Federal banking agency may direct.’’. FROM PARTICIPATION ORDERS IN THE CASE OF ‘‘(B) the relevant Federal banking agency ob- CERTAIN CRIMINAL OFFENSES.—’’. tained such information pursuant to— SEC. 606. CLARIFICATION OF EXTENT OF SUSPEN- ‘‘(i) such procedures as the Federal banking SION, REMOVAL, AND PROHIBITION SEC. 607. STREAMLINING DEPOSITORY INSTITU- AUTHORITY OF FEDERAL BANKING TION MERGER APPLICATION RE- agency may establish for use in connection with AGENCIES IN CASES OF CERTAIN QUIREMENTS. the administration and enforcement of Federal CRIMES BY INSTITUTION-AFFILI- (a) IN GENERAL.—Paragraph (4) of section banking laws; or ATED PARTIES. 18(c) of the Federal Deposit Insurance Act (12 ‘‘(ii) a memorandum of understanding or (a) INSURED DEPOSITORY INSTITUTION.— U.S.C. 1828(c)) is amended to read as follows: other similar arrangement between the Federal

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00029 Fmt 4636 Sfmt 6333 E:\CR\FM\A18MR7.008 H18PT1 H1260 CONGRESSIONAL RECORD — HOUSE March 18, 2004 banking agency and the foreign regulatory or ‘‘(2) The term ‘examiner’ means any person— ‘‘(d) Notwithstanding subsection (a) or section supervisory authority. ‘‘(A) appointed by a Federal financial institu- 212, an examiner employed by a Federal finan- ‘‘(2) TREATMENT UNDER TITLE 5, UNITED tion regulatory agency or pursuant to the laws cial institution regulatory agency may apply for STATES CODE.—For purposes of section 552 of of any State to examine a financial institution; and receive a credit card, or otherwise be ap- title 5, United States Code, this subsection shall or proved as a cardholder, under any credit card be treated as a statute described in subsection ‘‘(B) elected under the law of any State to account under an open end consumer credit (b)(3)(B) of such section. conduct examinations of any financial institu- plan, to the extent the terms and conditions ap- ‘‘(3) SAVINGS PROVISION.—No provision of this tion. plicable with respect to such account, and any section shall be construed as— ‘‘(3) The term ‘Federal financial institution credit extended under such account, are no more ‘‘(A) authorizing any Federal banking agency regulatory agency’ means— favorable generally to the examiner than the to withhold any information from any duly au- ‘‘(A) the Comptroller of the Currency; terms and conditions that are generally applica- thorized committee of the House of Representa- ‘‘(B) the Board of Governors of the Federal ble to credit card accounts offered by the same tives or the Senate; or Reserve System; financial institution to other cardholders under ‘‘(B) preventing any Federal banking agency ‘‘(C) the Director of the Office of Thrift Su- open end consumer credit plans. from complying with an order of a court of the pervision; ‘‘(e) For purposes of this section, the following United States in an action commenced by the ‘‘(D) the Federal Deposit Insurance Corpora- definitions shall apply: United States or such agency. tion; ‘‘(1) The terms ‘examiner’, ‘Federal financial ‘‘(E) the Federal Housing Finance Board; ‘‘(4) FEDERAL BANKING AGENCY DEFINED.—For institution regulatory agency’, and ‘financial purposes of this subsection, the term ‘Federal ‘‘(F) the Farm Credit Administration; ‘‘(G) the Farm Credit System Insurance Cor- institution’ have the same meaning as in section banking agency’ means the Board, the Comp- poration; and 212. troller, the Federal Deposit Insurance Corpora- ‘‘(H) the Small Business Administration.’’. ‘‘(2) The term ‘credit’ means the right granted tion, and the Director of the Office of Thrift Su- (b) ACCEPTANCE OF CREDIT BY A BANK EXAM- by a creditor to a debtor to defer payment of pervision.’’. INER.—Section 213 of title 18, United States debt or to incur debt and defer its payment. SEC. 611. PROHIBITION ON PARTICIPATION BY Code, is amended to read as follows: ‘‘(3) The term ‘creditor’ refers only to a person CONVICTED INDIVIDUAL. who both (A) regularly extends, whether in con- ‘‘§ 213. Acceptance of credit by bank examiner Section 19 of the Federal Deposit Insurance nection with loans, sales of property or services, Act (12 U.S.C. 1829) is amended by inserting ‘‘(a) Whoever, being an examiner, accepts an or otherwise, consumer credit which is payable after subsection (c) (as added by section 603 of extension of credit from any financial institu- by agreement in more than four installments or this title) the following new subsections: tion that the examiner examines or has author- for which the payment of a finance charge is or ‘‘(d) BANK HOLDING COMPANIES.—Subsections ity to examine, or from any person connected may be required, and (B) is the person to whom (a) and (b) shall apply to any bank holding with any such financial institution, shall be the debt arising from the consumer credit trans- company, any subsidiary (other than a bank) of fined under this title or imprisoned not more action is initially payable on the face of the evi- a bank holding company, and any organization than one year, or both; and may be fined a fur- dence of indebtedness or, if there is no such evi- organized and operated under section 25A of the ther sum equal to the amount of the credit ex- dence of indebtedness, by agreement. Notwith- Federal Reserve Act or operating under section tended, and shall be disqualified from holding standing the preceding sentence, in the case of 25 of the Federal Reserve Act as if such bank office as such examiner. an open-end credit plan involving a credit card, holding company, subsidiary, or organization ‘‘(b) Notwithstanding subsection (a) or section the card issuer and any person who honors the were an insured depository institution, except 212, a Federal financial institution regulatory credit card and offers a discount which is a fi- such subsections shall be applied for purposes of agency may, by regulation or by order on a nance charge are creditors. this subsection by substituting ‘Board of Gov- case-by-case basis, permit a financial institution ‘‘(4) The term ‘consumer’, when used with ref- ernors of the Federal Reserve System’ for ‘Cor- to extend credit to an examiner, and permit an erence to an open end credit plan, means a cred- poration’ each place such term appears in such examiner to accept an extension of credit from a it plan under which the party to whom credit is subsections. financial institution, if the agency determines offered or extended is a natural person, and the ‘‘(e) SAVINGS AND LOAN HOLDING COMPA- that the extension of credit would not likely af- money, property, or services which are the sub- NIES.—Subsections (a) and (b) shall apply to fect the integrity of any examination of a finan- ject of any transaction under the plan are pri- any savings and loan holding company and any cial institution. Before prescribing regulations marily for personal, family, or household pur- subsidiary (other than a savings association) of or issuing any order under this subsection, a poses. a savings and loan holding company as if such Federal financial institution regulatory agency ‘‘(5) The term ‘open end credit plan’ means a savings and loan holding company or subsidiary shall consult with each other Federal financial plan under which the creditor reasonably con- were an insured depository institution, except institution regulatory agency with regard to templates repeated transactions, which pre- such subsections shall be applied for purposes of any such regulation or order. Any regulation scribes the terms of such transactions, and this subsection by substituting ‘Director of the prescribed by a Federal financial institution which provides for a finance charge which may Office of Thrift Supervision’ for ‘Corporation’ regulatory agency under this subsection, may be computed from time to time on the out- each place such term appears in such sub- exempt certain classes or categories of credit standing unpaid balance. A credit plan which is sections.’’. from the scope of this section or section 212, and an open end credit plan within the meaning of shall provide procedures for examiners and fi- SEC. 612. CLARIFICATION THAT NOTICE AFTER the preceding sentence is an open end credit SEPARATION FROM SERVICE MAY BE nancial institutions to request case-by-case ex- plan even if credit information is verified from MADE BY AN ORDER. emption orders under this subsection, subject to time to time. (a) IN GENERAL.—Section 8(i)(3) of the Federal subsection (c). ‘‘(6) The term ‘credit card’ means any card, Deposit Insurance Act (12 U.S.C. 1818(i)(3)) is ‘‘(c) In considering any request by a financial plate, coupon book or other credit device exist- amended by inserting ‘‘or order’’ after ‘‘notice’’ institution or examiner for a case-by-case ex- ing for the purpose of obtaining money, prop- each place such term appears. emption order under subsection (b), a Federal fi- erty, labor, or services on credit. (b) TECHNICAL AND CONFORMING AMEND- nancial institution regulatory agency shall con- ‘‘(7) The term ‘cardholder’ means any person MENT.—The heading for section 8(i)(3) of the sider such factors as the agency determines to be to whom a credit card is issued or any person Federal Deposit Insurance Act (12 U.S.C. appropriate, including— who has agreed with the card issuer to pay obli- ‘‘(1) whether the terms and conditions of the 1818(i)(3)) is amended by inserting ‘‘OR ORDER’’ gations arising from the issuance of a credit credit being offered the examiner are generally after ‘‘NOTICE’’. card to another person. comparable to those offered by the financial in- SEC. 613. EXAMINERS OF FINANCIAL INSTITU- ‘‘(8) The term ‘card issuer’ means any person stitution in connection with similar types of TIONS. who issues a credit card, or the agent of such credit extended to other customers in similar cir- (a) OFFER OF CREDIT TO BANK EXAMINER.— person with respect to such card.’’. cumstances; Section 212 of title 18, United States Code, is (c) CLERICAL AMENDMENTS.—The table of sec- ‘‘(2) the nature and extent of any other rela- amended to read as follows: tions for chapter 11 of title 18, United States tionship the examiner has with the financial in- Code, is amended by striking the items relating ‘‘§ 212. Offer of credit to bank examiner stitution or any officer, director, or employee of to sections 212 and 213 and inserting the fol- ‘‘(a) Subject to section 213(b), whoever being the financial institution; lowing new items: an officer, director or employee of a financial ‘‘(3) the proximity in time between any exam- institution extends credit to any examiner which ination of the financial institution in which the ‘‘212. Offer of credit to bank examiner. the examiner is prohibited from accepting under examiner participated, or is scheduled to partici- ‘‘213. Acceptance of credit by bank examiner.’’. section 213 shall be fined under this title or im- pate, and the extension, or the offer of an exten- SEC. 614. PARITY IN STANDARDS FOR INSTITU- prisoned not more than one year, or both; and sion, of credit; TION-AFFILIATED PARTIES. may be fined a further sum equal to the amount ‘‘(4) whether there are any other cir- Section 3(u)(4) of the Federal Deposit Insur- of the credit extended. cumstances involving the transaction, or the ance Act (12 U.S.C. 1813(u)(4)) is amended by ‘‘(b) For purposes of this section, the fol- proposed transaction, that may be perceived as striking ‘‘knowingly or recklessly’’. lowing definitions shall apply: providing the examiner with preferential treat- SEC. 615. ENFORCEMENT AGAINST MISREPRESEN- ‘‘(1) The term ‘financial institution’ does not ment; and TATIONS REGARDING FDIC DEPOSIT include a credit union, a Federal reserve bank, ‘‘(5) any other fact or circumstance the agen- INSURANCE COVERAGE. a Federal home loan bank, or a depository insti- cy may consider to be appropriate under the cir- (a) IN GENERAL.—Section 18(a) of the Federal tution holding company. cumstances. Deposit Insurance Act (12 U.S.C. 1828(a)) is

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00030 Fmt 4636 Sfmt 6333 E:\CR\FM\A18MR7.008 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1261 amended by adding at the end the following ‘‘(ii) if a cease-and-desist order is issued (4) Such other information, findings, and con- new paragraph: against such person, until the effective date of clusions, and recommendations for legislative or ‘‘(4) FALSE ADVERTISING, MISUSE OF FDIC such order. agency action, as the agency may determine to NAMES, AND MISREPRESENTATION TO INDICATE IN- ‘‘(C) CIVIL MONEY PENALTIES.—Violations of be appropriate to include in the report. SURED STATUS.— section 18(a)(4) shall be subject to civil money (c) DEFINITIONS.—For purposes of this section, ‘‘(A) PROHIBITION ON FALSE ADVERTISING AND penalties as set forth in subsection (i) in an the following definitions shall apply: MISUSE OF FDIC NAMES.—No person may— amount not to exceed $1,000,000 for each day (1) FEDERAL BANKING AGENCY.—The term ‘‘(i) use the terms ‘Federal Deposit’, ‘Federal during which the violation occurs or con- ‘‘Federal banking agency’’— Deposit Insurance’, ‘Federal Deposit Insurance tinues.’’. (A) has the same meaning as in section 3(z) of Corporation’, any combination of such terms, or (c) TECHNICAL AND CONFORMING AMEND- the Federal Deposit Insurance Act; and the abbreviation ‘FDIC’ as part of the business MENTS.— (B) includes the National Credit Union Ad- name or firm name of any person, including any (1) Section 18(a)(3) of the Federal Deposit In- ministration. corporation, partnership, business trust, asso- surance Act (12 U.S.C. 1828(a)) is amended— (2) MINORITY.—The term ‘‘minority’’ has the ciation, or other business entity; or (A) in the 1st sentence by striking ‘‘of this same meaning as in section 1204(c)(3) of the Fi- ‘‘(ii) use such terms or any other sign or sym- subsection’’ and inserting ‘‘of paragraphs (1) nancial Institutions Reform, Recovery, and En- bol as part of an advertisement, solicitation, or and (2)’’; forcement Act of 1989. other document, (B) by striking the 2nd sentence; and SEC. 619. COORDINATION OF STATE EXAMINA- (C) in the 3rd sentence, by striking ‘‘of this TION AUTHORITY. to represent, suggest or imply that any deposit subsection’’ and inserting ‘‘of paragraphs (1) Section 10(h) of the Federal Deposit Insurance liability, obligation, certificate or share is in- and (2)’’. Act (12 U.S.C. 1820(h)) is amended to read as sured or guaranteed by the Federal Deposit In- (2) The heading for subsection (a) of section follows: surance Corporation, if such deposit liability, 18 of the Federal Deposit Insurance Act (12 ‘‘(h) COORDINATION OF EXAMINATION AUTHOR- obligation, certificate, or share is not insured or U.S.C. 1828(a)) is amended by striking ‘‘INSUR- ITY.— guaranteed by the Corporation. ANCE LOGO.—’’ and inserting ‘‘REPRESENTATIONS ‘‘(1) IN GENERAL.—The appropriate State bank ‘‘(B) PROHIBITION ON MISREPRESENTATIONS OF OF DEPOSIT INSURANCE.—’’. supervisor of the home State of an insured State INSURED STATUS.—No person may knowingly bank has authority to examine and supervise misrepresent— SEC. 616. COMPENSATION OF FEDERAL HOME LOAN BANK DIRECTORS. the bank. The State bank supervisor of the home ‘‘(i) that any deposit liability, obligation, cer- Section 7(i) of the Federal Home Loan Bank State of an insured State bank shall exercise its tificate, or share is federally insured, if such de- Act (12 U.S.C. 1427(i)) is amended to read as fol- authority to supervise and examine the posit liability, obligation, certificate, or share is lows: branches of the bank in a host State in accord- not insured by the Corporation; or ‘‘(i) DIRECTORS’ COMPENSATION.— ance with the terms of any applicable coopera- ‘‘(ii) the extent to which or the manner in ‘‘(1) IN GENERAL.—Each Federal home loan tive agreement between the home State bank su- which any deposit liability, obligation, certifi- bank may pay the directors on the board of di- pervisor and the State bank supervisor of the cate, or share is insured by the Federal Deposit rectors of the bank reasonable compensation for relevant host State. Except as expressly pro- Insurance Corporation, if such deposit liability, the time required of such directors, and reason- vided in a cooperative agreement between the obligation, certificate, or share is not insured by able expenses incurred by the directors, in con- State bank supervisors of the home State and the Corporation to the extent or in the manner nection with service on the board of directors, in host State(s) of an insured State bank, only the represented. accordance with resolutions adopted by the State bank supervisor of the home State of an ‘‘(C) AUTHORITY OF FDIC.—The Corporation board of directors and subject to the approval of insured State bank may levy or charge State su- shall have— the board. pervisory fees on the bank. ‘‘(i) jurisdiction over any person that violates ‘‘(2) ANNUAL REPORT BY THE BOARD.—Infor- ‘‘(2) HOST STATE EXAMINATION.—With respect this paragraph, or aids or abets the violation of mation regarding compensation and expenses to a branch operated in a host State by an out- this paragraph; and paid by the Federal home loan banks to the di- of-State insured State bank that resulted from ‘‘(ii) for purposes of enforcing the require- rectors on the boards of directors of the banks an interstate merger transaction approved under ments of this paragraph with regard to any per- shall be included in the annual report submitted section 44 or that was established in such State son— to the Congress by the Board pursuant to sec- pursuant to section 5155(g) of the Revised Stat- ‘‘(I) the authority of the Corporation under tion 2B(d).’’. utes, the third undesignated paragraph of sec- section 10(c) to conduct investigations; and tion 9 of the Federal Reserve Act or section ‘‘(II) the enforcement authority of the Cor- SEC. 617. EXTENSION OF TERMS OF FEDERAL HOME LOAN BANK DIRECTORS. 18(d)(4) of this Act, the appropriate State bank poration under subsections (b), (c), (d) and (i) of supervisor of such host State may— section 8, (a) IN GENERAL.—Section 7(d) of the Federal Home Loan Bank Act (12 U.S.C. 1427(d)) is ‘‘(A) with written notice to the State bank su- as if such person were a state nonmember in- amended— pervisor of the bank’s home State and subject to sured bank. (1) in the first sentence, by striking ‘‘3 years’’ the terms of any applicable cooperative agree- ‘‘(D) OTHER ACTIONS PRESERVED.—No provi- and inserting ‘‘4 years’’; and ment with the State bank supervisor of such sion of this paragraph shall be construed as bar- (2) in the 2nd sentence— home State, examine such branch for the pur- ring any action otherwise available, under the (A) by striking ‘‘Federal Home Loan Bank pose of determining compliance with host State laws of the United States or any State, to any System Modernization Act of 1999’’ and insert- laws that are applicable pursuant to section Federal or State law enforcement agency or in- ing ‘‘Financial Services Regulatory Relief Act of 24(j) of this Act, including those that govern dividual.’’. 2003’’; and community reinvestment, fair lending, and con- (b) ENFORCEMENT ORDERS.—Section 8(c) of (B) by striking ‘‘1/3’’ and inserting ‘‘1/4’’. sumer protection; and the Federal Deposit Insurance Act (12 U.S.C. (b) PROSPECTIVE APPLICATION.—The amend- ‘‘(B) if expressly permitted under and subject 1818(c)) is amended by adding at the end the fol- ment made by subsection (a) shall not apply to to the terms of a cooperative agreement with the lowing new paragraph: the term of office in which any director of a State bank supervisor of the bank’s home State ‘‘(4) FALSE ADVERTISING OR MISUSE OF NAMES Federal home loan bank is serving as of the date or if such out-of-State insured State bank has TO INDICATE INSURED STATUS.— of the enactment of this Act, including any di- been determined to be in a troubled condition by ‘‘(A) TEMPORARY ORDER.— rector elected or appointed to fill a vacancy in either the State bank supervisor of the bank’s ‘‘(i) IN GENERAL.—If a notice of charges served any such term of office. home State or the bank’s appropriate Federal under subsection (b)(1) of this section specifies SEC. 618. BIENNIAL REPORTS ON THE STATUS OF banking agency, participate in the examination on the basis of particular facts that any person AGENCY EMPLOYMENT OF MINORI- of the bank by the State bank supervisor of the is engaged in conduct described in section TIES AND WOMEN. bank’s home State to ascertain that the activi- 18(a)(4), the Corporation may issue a temporary (a) IN GENERAL.—Before December 31, 2003, ties of the branch in such host State are not order requiring— and the end of each 2-year period beginning conducted in an unsafe or unsound manner. ‘‘(I) the immediate cessation of any activity or after such date, each Federal banking agency The State bank supervisor of the home State of practice described, which gave rise to the notice shall submit a report to the Congress on the sta- an insured State bank shall notify the State of charges; and tus of the employment by the agency of minority bank supervisor of each host State of the bank ‘‘(II) affirmative action to prevent any fur- individuals and women. if there has been a final determination that the ther, or to remedy any existing, violation. (b) FACTORS TO BE INCLUDED.—The report bank is in a troubled condition. The State bank ‘‘(ii) EFFECT OF ORDER.—Any temporary order shall include a detailed assessment of each of supervisor of the bank’s home State shall pro- issued under this subparagraph shall take effect the following: vide such notice as soon as reasonably possible upon service. (1) The extent of hiring of minority individ- but in all cases within 15 business days after the ‘‘(B) EFFECTIVE PERIOD OF TEMPORARY uals and women by the agency as of the time State bank supervisor has made such final de- ORDER.—A temporary order issued under sub- the report is prepared. termination or has received written notification paragraph (A) shall remain effective and en- (2) The successes achieved and challenges of such final determination. forceable, pending the completion of an admin- faced by the agency in operating minority and ‘‘(3) HOST STATE ENFORCEMENT.—If the State istrative proceeding pursuant to subsection women outreach programs. bank supervisor of a host State determines that (b)(1) in connection with the notice of charges— (3) Challenges the agency may face in finding a branch of an out-of-State State insured State ‘‘(i) until such time as the Corporation shall qualified minority individual and women appli- bank is violating any law of the host State that dismiss the charges specified in such notice; or cants. is applicable to such branch pursuant to section

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00031 Fmt 4636 Sfmt 6333 E:\CR\FM\A18MR7.008 H18PT1 H1262 CONGRESSIONAL RECORD — HOUSE March 18, 2004 24(j) of this Act, including a law that governs TITLE VII—CLERICAL AND TECHNICAL (27) In section 304(b)(3), strike ‘‘the affairs or community reinvestment, fair lending, or con- AMENDMENTS such credit union’’ and insert ‘‘the affairs of sumer protection, the State bank supervisor of SEC. 701. CLERICAL AMENDMENTS TO THE HOME such credit union’’. the host State or, to the extent authorized by OWNERS’ LOAN ACT. (28) In section 310, strike ‘‘section 102(e)’’ and the law of the host State, a host State law en- (a) AMENDMENT TO TABLE OF CONTENTS.—The insert ‘‘section 102(d)’’. forcement officer may, with written notice to the table of contents in section 1 of the Home Own- SEC. 703. OTHER TECHNICAL CORRECTIONS. State bank supervisor of the bank’s home State ers’ Loan Act (12 U.S.C. 1461) is amended by (a) Section 1306 of title 18, United States Code, and subject to the terms of any applicable coop- striking the items relating to sections 5 and 6 is amended by striking ‘‘5136A’’ and inserting erative agreement with the State bank super- and inserting the following new items: ‘‘5136B’’. (b) Section 5239 of the Revised Statutes of the visor of the bank’s home State, undertake such ‘‘Sec. 5. Savings associations. enforcement actions and proceedings as would ‘‘Sec. 6. [Repealed.]’’. United States (12 U.S.C. 93) is amended by re- be permitted under the law of the host State as designating the second of the 2 subsections des- (b) CLERICAL AMENDMENTS TO HEADINGS.— if the branch were a bank chartered by that ignated as subsection (d) (as added by section (1) The heading for section 4(a) of the Home host State. 331(b)(3) of the Riegle Community Development Owners’ Loan Act (12 U.S.C. 1463(a)) is amend- and Regulatory Improvement Act of 1994) as ‘‘(4) COOPERATIVE AGREEMENT.—The State ed by striking ‘‘(a) FEDERAL SAVINGS ASSOCIA- subsection (e). bank supervisors from 2 or more States may TIONS.—’’ and inserting ‘‘(a) GENERAL RESPON- SEC. 704. REPEAL OF OBSOLETE PROVISIONS OF enter into cooperative agreements to facilitate SIBILITIES OF THE DIRECTOR.—’’. State regulatory supervision of State banks, in- THE BANK HOLDING COMPANY ACT (2) The section heading for section 5 of the OF 1956. cluding cooperative agreements relating to the Home Owners’ Loan Act (12 U.S.C. 1464) is coordination of examinations and joint partici- (a) IN GENERAL.—Section 2 of the Bank Hold- amended to read as follows: ing Company Act of 1956 (12 U.S.C. 1841) is pation in examinations. For purposes of this ‘‘SEC. 5. SAVINGS ASSOCIATIONS.’’. subsection (h), the term ‘‘cooperative agree- amended— SEC. 702. TECHNICAL CORRECTIONS TO THE FED- (1) in subsection (c)(2), by striking subpara- ment’’ means a written agreement that is signed ERAL CREDIT UNION ACT. graphs (I) and (J); and by the home State bank supervisor and host The Federal Credit Union Act (12 U.S.C. 1751 (2) by striking subsection (m) and inserting State bank supervisor to facilitate State regu- et seq.) is amended as follows: the following new subsection: latory supervision of State banks and includes (1) In section 101(3), strike ‘‘and’’ after the ‘‘(m) [Repealed]’’. nationwide or multi-state cooperative agree- semicolon. (b) TECHNICAL AND CONFORMING AMEND- ments and cooperative agreements solely be- (2) In section 101(5), strike the terms ‘‘account MENTS.—Paragraphs (1) and (2) of section 4(h) tween the home State and host State. Except for account’’ and ‘‘account accounts’’ each place of the Bank Holding Company Act of 1956 (12 State bank supervisors, no provision of this sub- any such term appears and insert ‘‘account’’. U.S.C. 1843(h)) are each amended by striking section (h) relating to such cooperative agree- (3) In section 107(a)(5)(E) (as so designated by ‘‘(G), (H), (I), or (J) of section 2(c)(2)’’ and in- ments shall be construed as limiting in any way section 303 of this Act), strike the period at the serting ‘‘(G), or (H) of section 2(c)(2)’’. the authority of home and host State law en- end and insert a semicolon. The CHAIRMAN pro tempore. No forcement officers, regulatory supervisors, or (4) In paragraphs (6) and (7) of section 107(a) other officials that have not signed such cooper- (as so designated by section 303 of this Act), amendment to the committee amend- ative agreements to enforce host State laws that strike the period at the end and insert a semi- ment is in order except those printed in are applicable to a branch of an out-of-State in- colon. House Report 108–439. Each amendment sured State bank located in the host State pur- (5) In section 107(a)(7)(D) (as so designated by may be offered only in the order print- suant to section 24(j) of this Act. section 303 of this Act), strike ‘‘the Federal Sav- ed in the report, by a Member des- ‘‘(5) FEDERAL REGULATORY AUTHORITY.—No ings and Loan Insurance Corporation or’’. ignated in the report, shall be consid- provision of this subsection shall be construed (6) In section 107(a)(7)(E) (as so designated by ered read, shall be debatable for the as limiting in any way the authority of any section 303 of this Act), strike ‘‘the Federal time specified in the report, equally di- Federal banking agency. Home Loan Bank Board,’’ and insert ‘‘the Fed- vided and controlled by the proponent ‘‘(6) STATE TAXATION AUTHORITY NOT AF- eral Housing Finance Board,’’. FECTED.—No provision of this subsection (h) (7) In section 107(a)(9) (as so designated by and an opponent, shall not be subject shall be construed as affecting the authority of section 303 of this Act), strike ‘‘subchapter III’’ to amendment, and shall not be subject any State or political subdivision of any State to and insert ‘‘title III’’. to a demand for division of the ques- adopt, apply, or administer any tax or method (8) In section 107(a)(13) (as so designated by tion. of taxation to any bank, bank holding company, section 303 of this Act), strike the ‘‘and’’ after It is now in order to consider amend- or foreign bank, or any affiliate of any bank, the semicolon at the end. ment No. 1 printed in House Report (9) In section 109(c)(2)(A)(i), strike ‘‘(12 U.S.C. bank holding company, or foreign bank, to the 108–439. extent such tax or tax method is otherwise per- 4703(16))’’. AMENDMENT NO. 1 OFFERED BY MR. OXLEY missible by or under the Constitution of the (10) In section 120(h), strike ‘‘under the Act United States or other Federal law. approved July 30, 1947 (6 U.S.C., secs. 6–13),’’ Mr. OXLEY. Mr. Chairman, I offer an and insert ‘‘chapter 93 of title 31, United States ‘‘(7) DEFINITIONS.—For purpose of this sec- amendment made in order under the Code,’’. tion, the following definition shall apply: rule. (11) In section 201(b)(5), strike ‘‘section 116 ‘‘(A) The terms ‘host State’, ‘home State’, and The CHAIRMAN pro tempore. The of’’. Clerk will designate the amendment. ‘out-of-State bank’ have the same meanings as (12) In section 202(h)(3), strike ‘‘section in section 44(g). 207(c)(1)’’ and insert ‘‘section 207(k)(1)’’. The text of the amendment is as fol- ‘‘(B) The term ‘State supervisory fees’ means (13) In section 204(b), strike ‘‘such others pow- lows: assessments, examination fees, branch fees, li- ers’’ and insert ‘‘such other powers’’. Amendment No. 1 offered by Mr. OXLEY: cense fees, and all other fees that are levied or (14) In section 206(e)(3)(D), strike ‘‘and’’ after Page 9, strike line 3 and all that follows charged by a State bank supervisor directly the semicolon at the end. through page 10, line 2 (and redesignate sub- upon an insured State bank or upon branches of (15) In section 206(f)(1), strike ‘‘subsection sequent sections and any cross reference to an insured State bank. (e)(3)(B)’’ and insert ‘‘subsection (e)(3)’’. any such section and conform the table of ‘‘(C) Solely for purposes of subparagraph (16) In section 206(g)(7)(D), strike ‘‘and sub- contents accordingly). (2)(B) of this subsection (h), an insured State section (1)’’. Page 31, line 2, strike ‘‘main’’ and insert bank has been determined to be in ‘troubled (17) In section 206(t)(2)(B), insert ‘‘regula- ‘‘home’’. condition’ if the bank— tions’’ after ‘‘as defined in’’. Page 31, strike line 3 and all that follows ‘‘(i) has a composite rating, as determined in (18) In section 206(t)(2)(C), strike ‘‘material af- through page 32, line 13 (and conform the its most recent report of examination, of 4 or 5 fect’’ and insert ‘‘material effect’’. table of contents accordingly). Page 37, strike lines 16 and 17 and insert under the Uniform Financial Institutions Rat- (19) In section 206(t)(4)(A)(ii)(II), strike ‘‘or’’ the following new heading: ings System (UFIRS); or after the semicolon at the end. (20) In section 206A(a)(2)(A), strike ‘‘regulator ‘‘(b) ADDITIONAL INVESTMENT AUTHORITY.— ‘‘(ii) is subject to a proceeding initiated by the agency’’ and insert ‘‘regulatory agency’’. Page 37, line 18, strike ‘‘A Federal’’ and in- Corporation for termination or suspension of de- (21) In section 207(c)(5)(B)(i)(I), insert ‘‘and’’ sert ‘‘In addition to any investments other- posit insurance; or after the semicolon at the end. wise authorized, a Federal’’. ‘‘(iii) is subject to a proceeding initiated by (22) In section 207(c)(8)(D)(ii)(I), insert a clos- Page 47, after line 5, insert the following the State bank supervisor of the bank’s home ing parenthesis after ‘‘Act of 1934’’. new paragraphs (and redesignate the subse- State to vacate, revoke, or terminate the charter (23) In the heading for subparagraph (A) of quent paragraph accordingly): of the bank, or to liquidate the bank, or to ap- section 207(d)(3), strike ‘‘TO’’ and insert ‘‘WITH’’. (2) INTERSTATE BRANCHING BY SUBSIDIARIES point a receiver for the bank. (24) In section 207(f)(3)(A), strike ‘‘category or OF COMMERCIAL FIRMS PROHIBITED.—Section ‘‘(D) For the purposes of paragraph (2)(B), claimants’’ and insert ‘‘category of claimants’’. 18(d)(3)) of the Federal Deposit Insurance Act the term ‘final determination’ means the trans- (25) In section 209(a)(8), strike the period at (12 U.S.C. 1828(d)(3)) is amended by adding at mittal of a Report of Examination to the bank or the end and insert a semicolon. the end the following new subparagraph: transmittal of official notice of proceedings to (26) In section 216(n), insert ‘‘any action’’ be- ‘‘(C) INTERSTATE BRANCHING BY SUBSIDI- the bank.’’. fore ‘‘that is required’’. ARIES OF COMMERCIAL FIRMS PROHIBITED.—

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00032 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.008 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1263 ‘‘(i) IN GENERAL.—If the appropriate State institution, that is not allowed under section to other depository institutions and bank supervisor of the home State of any in- 18(d)(3).’’. those on the other hand who feel equal- dustrial loan company, industrial bank, or Page 58, line 19, insert ‘‘(i)’’ after ‘‘section ly strongly that the ILC charter has 38(e)(2)(E)’’. other institution described in section been expanded beyond its original pur- 2(c)(2)(H) of the Bank Holding Company Act Page 88, strike line 1 and all that follows of 1956, or the appropriate State bank super- through the 2 items following line 15 on page pose and should be scaled back. Indeed, visor of any host State with respect to such 94 (and redesignate subsequent sections and we have heard strong debate on that company, bank, or institution, determines any cross reference to any such section and during general debate. On the whole, I that such company, bank, or institution is conform the table of contents accordingly). believe that the Gillmor-Frank lan- controlled, directly or indirectly, by a com- The CHAIRMAN pro tempore. Pursu- guage strikes a reasonable compromise mercial firm, such company, bank, or insti- ant to House Resolution 566, the gen- on a very difficult issue, and I am tution may not acquire, establish, or operate tleman from Ohio (Mr. OXLEY) and a pleased to include it in this manager’s a branch in such host State. Member opposed each will control 10 amendment. ‘‘(ii) COMMERCIAL FIRM DEFINED.—For pur- Mr. Chairman, I urge all Members to poses of this subsection, the term ‘commer- minutes. The Chair recognizes the gentleman support the manager’s amendment. cial firm’ means any entity at least 15 per- Mr. Chairman, I reserve the balance cent of the annual gross revenues of which from Ohio (Mr. OXLEY). on a consolidated basis, including all affili- PARLIAMENTARY INQUIRY of my time. ates of the entity, were derived from engag- Mr. FRANK of Massachusetts. Mr. The CHAIRMAN pro tempore. Does any Member claim time in opposition ing, on an on-going basis, in activities that Chairman, I have a parliamentary in- to the amendment? are not financial in nature or incidental to a quiry. Mr. FRANK of Massachusetts. Mr. financial activity during at least 3 of the The CHAIRMAN pro tempore. The prior 4 calendar quarters. Chairman, if it is appropriate, I will, gentleman will state it. ‘‘(iii) GRANDFATHERED INSTITUTIONS.— Mr. FRANK of Massachusetts. I do although I am not in opposition. Clause (i) shall not apply with respect to any The CHAIRMAN pro tempore. If not, not see anyone on the floor who is op- industrial loan company, industrial bank, or without objection, the gentleman from posed to this amendment. Is it then other institution described in section Massachusetts may claim the time oth- 2(c)(2)(H) of the Bank Holding Company Act permissible under the rules for me to erwise reserved for opposition to the of 1956— request the rest of the time? ‘‘(I) which became an insured depository amendment. The CHAIRMAN pro tempore. The There was no objection. institution before October 1, 2003 or pursuant gentleman may request unanimous to an application for deposit insurance which Mr. FRANK of Massachusetts. Mr. consent. Chairman, I yield myself such time as was approved by the Corporation before such Mr. OXLEY. Mr. Chairman, I yield date; and I may consume. ‘‘(II) with respect to which there is no myself 3 minutes. I just want to address one important change in control, directly or indirectly, of Mr. Chairman, my amendment makes issue on this question of the industrial the company, bank, or institution after Sep- certain technical and conforming loan companies that the gentleman tember 30, 2003, that requires an application changes to the bill requested by the from Iowa had raised previously. It is under subsection (c), section 7(j), section 3 of Federal financial regulators, deletes clear, as we all agree, that the ILCs are the Bank Holding Company Act of 1956, or sections from the bill reported by the in fact regulated. They are regulated section 10 of the Home Owners’ Loan Act. Committee on Financial Services that by a Federal bank regulator, the FDIC. ‘‘(iv) TRANSITION PROVISION.—Any divesti- have been superseded by other legisla- The element of unregulation goes with ture required under this subparagraph of a tive or judicial developments, and, branch in a host State shall be completed as holding companies. Bank holding com- quickly as is reasonably possible. most importantly, incorporates com- panies are regulated by the Federal Re- ‘‘(v) CORPORATE REORGANIZATIONS PER- promise language developed by two serve. Heretofore, these holding compa- MITTED.—The acquisition of direct or indi- highly respected members of our com- nies have not had, in my experience, rect control of the company, bank, or insti- mittee, the gentleman from Ohio (Mr. much independent existence and so the tution referred to in clause (iii)(II) shall not GILLMOR) and the gentleman from Mas- regulation by the FDIC has done it. be treated as a ‘change in control’ for pur- sachusetts (Mr. FRANK), limiting the I will say to the gentleman from poses of such clause if the company acquir- scope of the de novo branching author- Iowa, while he is not here right now, he ing control is itself directly or indirectly ity provided for in section 401 of the controlled by a company that was an affil- has been very conscientious on this bill iate of such company, bank, or institution bill. and is probably following this, that I on the date referred to in clause (iii)(II), and As reported by the Committee on Fi- would be prepared to work with him on remained an affiliate at all times after such nancial Services, section 401 eliminates the question of whether or not an ap- date.’’. current statutory restrictions on propriate form of regulation for the (3) TECHNICAL AND CONFORMING AMEND- banks’ ability to branch across State holding companies ought to exist. Per- MENTS.—Section 18(d)(4) of the Federal De- lines. When the committee marked up haps the FDIC or some other entity posit Insurance Act (12 U.S.C. 1828(d)(4)) is H.R. 1375, the gentleman from Ohio should have it. I do not think we have amended— (Mr. GILLMOR) and other Members ex- (A) in subparagraph (A) by striking ‘‘Sub- a regulatory hole. We have not had one ject to subparagraph (B)’’ and inserting pressed concerns about extending this historically. I do not think we are cre- ‘‘Subject to subparagraph (B) and paragraph de novo branching authority to indus- ating one. But I would note the only (3)(C)’’; and trial loan companies, or ILCs, that are potential argument is there would not (B) in subparagraphs (D) and (E), by strik- owned by commercial companies, such be a regulation of the holding com- ing ‘‘The term’’ and inserting ‘‘For purposes as retailers and auto manufacturers. pany. All of the bank activities of the of this subsection, the term’’. Since the markup, the gentleman from ILCs would be regulated by the FDIC. Page 47, line 21, insert ‘‘or are applicable to Ohio (Mr. GILLMOR) and the gentleman Having said that, I just would repeat an insured State nonmember bank under sec- from Massachusetts (Mr. FRANK) have what the gentleman from Ohio essen- tion 18(d)(3) of the Federal Deposit Insurance worked together to develop language tially said. This is, I think, an effort to Act’’ after ‘‘Revised Statutes of the United States’’. that would permit ILCs owned by fi- fine-tune regulation. I do not believe in Page 51, line 4, insert before the semicolon nancial firms to avail themselves of any regard it cuts back excessively. I at the end ‘‘and inserting the following new the new de novo branching authority did disagree with the proposal to cut paragraph’’. while prohibiting branching by ILCs the review time for antitrust to 5 days. Page 51, after line 4, insert the following owned by nonfinancial or commercial We have an amendment that will be new paragraph: firms that did not become insured de- coming soon from the gentlewoman ‘‘(5) APPLICABILITY TO INDUSTRIAL LOAN positories until after a grandfather from California that will push it back COMPANIES.—No provision of this section date specified in the amendment. up to 15, not exactly where I would like shall be construed as authorizing the ap- Like any good compromise, the it. We then will have a couple of other proval of any transaction involving a indus- Gillmor-Frank amendment does not trial loan company, industrial bank, or other amendments to deal with. But I would institution described in section 2(c)(2)(H) of embody total consensus. There are note that we are going to correct what the Bank Holding Company Act of 1956, or those in this body who believe we I think is one of the flaws in this bill. the acquisition, establishment, or operation should place no restrictions on the ac- Mr. Chairman, I reserve the balance of a branch by any such company, bank, or tivities of ILCs that do not also apply of my time.

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00033 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.009 H18PT1 H1264 CONGRESSIONAL RECORD — HOUSE March 18, 2004 Mr. OXLEY. Mr. Chairman, I am I urge support of the manager’s ing period in which members of the pleased to yield 3 minutes to the dis- amendment. public may challenge a bank merger tinguished gentleman from Ohio (Mr. Mr. FRANK of Massachusetts. Mr. after the Department of Justice has ap- GILLMOR). Chairman, I yield back the balance of proved a merger between banks or be- (Mr. GILLMOR asked and was given my time. tween bank-holding companies. This permission to revise and extend his re- Mr. OXLEY. Mr. Chairman, I yield mandatory waiting period protects the marks.) back the balance of my time. rights of the public to raise concerns Mr. GILLMOR. Mr. Chairman, I rise The CHAIRMAN pro tempore. The with respect to the propriety of bank in strong support of the manager’s question is on the amendment offered mergers once the Department of Jus- amendment to this bill. I want to by the gentleman from Ohio (Mr. tice decides whether to challenge a thank the gentleman from Ohio (Mr. OXLEY). merger on antitrust grounds. Cur- OXLEY) both for his outstanding work The amendment was agreed to. rently, banking law allows third par- on this bill and also for allowing an es- The CHAIRMAN pro tempore. It is ties, other than Federal banking agen- sential provision authored by myself now in order to consider amendment cies or DOJ, to file suit during the and the gentleman from Massachusetts No. 2 printed in House report 108–439. post-approval waiting period. Such pri- (Mr. FRANK) in the manager’s amend- vate enforcement is critical to ensur- b 1230 ment. I want to thank the gentleman ing that important policy concerns in- from Massachusetts for the very effec- AMENDMENT NO. 2 OFFERED BY MS. WATERS cluding the adequacy of the banks’ tive and the bipartisan way that he has Ms. WATERS. Mr. Chairman, I offer Community Reinvestment Act per- worked to make this amendment hap- an amendment. formance, are taken into account when pen. Our compromise language closes a The Chairman pro tempore (Mr. SIM- Federal courts evaluate whether an dangerous loophole that would allow MONS). The Clerk will designate the agency’s approval of a proposed bank large commercial entities to obtain amendment. merger should be upheld. Such private bank charters and to be unregulated at The text of the amendment is as fol- suits are the vehicle through which the holding company level in providing lows: community organizations may gain in- banking products and services in all 50 formation about a proposed bank merg- States. Amendment No. 2 offered by Ms. WATERS: Section 401 expands the authority of Page 84, strike line 1 and all that follows er to ensure that the merger will not through line 13 (and redesignate subsequent banks and industrial loan companies, result in disproportionate branch clo- sections and any cross reference to any such sures in low-income or minority com- or ILCs, to branch across State lines on section and conform the table of contents ac- a de novo basis rather than acquiring munities. cordingly). The existing law strikes the proper an existing bank. That means if a large The CHAIRMAN pro tempore. Pursu- balance between the right of third par- retailer were to acquire an ILC, they ant to House Resolution 566, the gen- ties to seek judicial review of bank could not only enter the banking in- tlewoman from California (Ms. WA- merger approval orders and the rights dustry without being subject to the TERS) and a Member opposed each will Bank Holding Company Act but branch of parties to the merger to finalize control 5 minutes. freely across the country. This would their transaction. Section 609 of the The Chair recognizes the gentle- clearly be in defiance of our long- bill as reported would seriously impair woman from California (Ms. WATERS). standing tradition of separating bank- the right of community organizations Ms. WATERS. Mr. Chairman, I yield ing and commerce, most recently af- to seek this judicial review of Federal myself such time as I may consume. firmed by Congress in the Gramm- bank merger approval orders. The cur- I would first like to thank the gen- Leach-Bliley Act of 1999. Large retail- rent 15-day waiting period should be tleman from Ohio (Mr. OXLEY) and the ers have attempted to acquire, and in preserved. gentleman from Massachusetts (Mr. some cases have acquired, ILCs in sev- So my amendment has been made in FRANK) for the leadership that they eral States and continue to express order under the proposed rule, and I publicly their desire to offer financial have provided in this committee not would ask support for the amendment. Mr. Chairman, I yield back the bal- services to their customers. While this only on this issue but on all of the issues that we work with on the Com- ance of my time. amendment grandfathers some ILCs The CHAIRMAN pro tempore (Mr. which were owned by commercial firms mittee on Financial Services. I think SWEENEY). Does the gentleman from before, it provides that any ILC ac- someone said it earlier, and I agree, I Ohio (Mr. OXLEY) rise in opposition to quired in the future must play by the believe it was the gentleman from Ala- bama (Mr. BACHUS) who said it, we do the amendment? same rules in interstate branching as Mr. OXLEY. Mr. Chairman, I am not other financial institutions. There are have a way of working together, and we do have a way of respecting the opposed. some commercial or industrial compa- The CHAIRMAN pro tempore. With- nies who oppose the manager’s amend- work that is done on both sides of the aisle; and I am appreciative for the out objection, the gentleman is recog- ment. Some companies want to pro- nized for 5 minutes. spectively create a giant loophole for comradery that has developed out of that committee. So with that, I would There was no objection. themselves that would enable them to Mr. OXLEY. Mr. Chairman, I yield like to thank also the chairman and branch interstate in a way that no one myself such time as I may consume. else can. They include companies such the members of the Committee on We are prepared to accept the amend- as Wal-Mart, John Deere, Target, Rules for making my rule in order. ment, and I say to the gentlewoman among others. The manager’s amend- During the course of a bank merger from California, good work on this ment closes the loophole and simply re- process, both the Federal financial su- issue. quires they be treated the same as any- pervisory agency and the Department Mr. OXLEY. Mr. Chairman, I have no body else. of Justice review the merger proposal further requests for time, and I yield The existing business relationships of for competitive concerns. After a Fed- back the balance of my time. longstanding ILCs supported by FDIC eral banking agency approves a merg- The CHAIRMAN pro tempore. The insurance are protected by our lan- er, DOJ has 30 days to decide whether question is on the amendment offered guage in the form of a grandfather to challenge the merger approval on by the gentlewoman from California clause. However, the risks associated antitrust grounds. At a minimum, the (Ms. WATERS). with the mixing of banking and com- merging banks must now wait 15 days The amendment was agreed to. merce are real and the compromise before completing their merger. As The CHAIRMAN pro tempore. It is provisions contained in this language proposed, section 609 would reduce the now in order to consider amendment such as that allowing corporate reorga- minimum 15-day waiting period to 5 No. 3 printed in House Report 108–439. nizations are not in any way meant to days when the Department of Justice AMENDMENT NO. 3 OFFERED BY MR. BACHUS allow circumvention of our overall goal indicates it will not file suit chal- Mr. BACHUS. Mr. Chairman, I offer of preventing the acquisition of a lenging the merger approval order. an amendment. grandfathered ILC by a commercial This amendment is designed to pre- The Chairman pro tempore. The parent. serve the existing 15-calendar-day wait- Clerk will designate the amendment.

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00034 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.043 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1265 The text of the amendment is as fol- Mr. Chairman, I reserve the balance they are dealing with the banks them- lows: of my time. selves, and they want to be able to Amendment No. 3 offered by Mr. BACHUS: Mr. FRANK of Massachusetts. Mr. apply it to the independent contrac- Page 94, strike line 16 and all that follows Chairman, I rise in opposition. Mr. tors. I think it would be a mistake to through line 20 (and redesignate subsequent Chairman, I yield myself 3 minutes. give the FDIC significantly less power sections and any cross reference to any such This is one of the two disagreements to act in enforcement proceedings section and conform the table of contents ac- here. I should note that the section cordingly). against lawyers and other professionals that is in the bill that the gentleman than they now have. The CHAIRMAN pro tempore. Pursu- from Alabama seeks to strike was re- Mr. Chairman, I reserve the balance ant to House Resolution 566, the gen- quested by the Federal Deposit Insur- of my time. tleman from Alabama (Mr. BACHUS) ance Corporation. What they said was PARLIAMENTARY INQUIRY and a Member opposed each will con- they want to be able to issue their or- Mr. FRANK of Massachusetts. Mr. trol 5 minutes. ders. They do not have criminal proce- The Chair recognizes the gentleman Chairman, I have a parliamentary in- dures here. This does not take away from Alabama (Mr. BACHUS). quiry. Mr. BACHUS. Mr. Chairman, I yield one’s right to a jury trial for any The CHAIRMAN pro tempore. The myself 3 minutes. criminal trial. The FDIC has adminis- gentleman will state the inquiry. Mr. Chairman, my amendment sim- trative powers. They can order one to Mr. FRANK of Massachusetts. Mr. ply strikes section 614, and what 614 cease and desist from a certain prac- Chairman, do I have the right to close does is, in a read relief bill, it actually tice; they can debar one from working. on this amendment? shifts a burden to any independent con- What they are saying is they do not The CHAIRMAN pro tempore. Yes, tractor that deals with the banks, and want to be unable to bar people or to the gentleman will. The manager in op- it creates a presumption or a burden of order a stop to people who are being position has the right to close. Mr. BACHUS. Mr. Chairman, I yield proof on any independent contractor grossly negligent. The language that dealing with a bank in an enforcement will be governing the FDIC’s regulating back the balance of my time. Mr. FRANK of Massachusetts. Mr. provision by one of the regulatory authority with regard to lawyers and Chairman, I yield back the balance of agents. It puts a burden of proof on others who work on banking matters, these are people that are hired by my time. them in an administrative court hear- The CHAIRMAN pro tempore. The ing to basically prove their innocence. banks as professionals; and let me say there was some argument before that, question is on the amendment offered And they have no right to a trial by by the gentleman from Alabama (Mr. jury. They have no right to an appeal well, these people should not be held to BACHUS). and trial de novo. Their assets can be knowing banking law. We are not talk- ing about the guys who install the The amendment was agreed to. frozen while these hearings are going The CHAIRMAN pro tempore. It is drywall. We are not talking about the on. And I think that that is a tremen- now in order to consider amendment people who do the valet parking at the dous hammer to give to the regulatory No. 4 printed in House Report 108–439. big soirees. We are talking about law- bodies, one that we certainly do not AMENDMENT NO. 4 OFFERED BY MR. WEINER yers and other professionals. And, yes, need to do in this bill. Mr. WEINER. Mr. Chairman, I offer What section 614 would do, and I will I do believe it is reasonable to hold an amendment. be brief in this, is it simply equates lawyers to a standard of knowing bank The Chairman pro tempore. The and says that an independent con- law when they do lawyering for banks. Clerk will designate the amendment. tractor dealing with a bank will be And what the FDIC said is we do not The text of the amendment is as fol- treated as having the same knowledge want to have to prove that they were lows: or an equivalent knowledge as a bank reckless or deliberate. If they are Amendment No. 4 offered by Mr. WEINER: insider, a director or a board member grossly negligent, we want to be able Page 67, after line 13, insert the following of that bank. So if they are an attor- to step in. new section (and conform the table of con- ney, if they are an accountant, if they It is not a criminal proceeding. It is tents accordingly): are an appraiser, if they are a Realtor, the FDIC. The FDIC wants to be able SEC. 410. CERTAIN CHECK DISHONORMENT FEES or if they are any of these affiliated to hold professionals who are offering PROHIBITED. parties, they are treated as if they their professional services voluntarily (a) IN GENERAL.—Section 607 of the Expe- dited Funds Availability Act (12 U.S.C. 4006) have the inside knowledge of a bank in- to banks and working on bank matters (relating to miscellaneous provisions) is sider; and that is simply not the case. to a knowledge of banking law to the amended by adding at the end the following Not only are they equated with that extent if they are negligent, or even new subsection: knowledge, but when these charges are grossly negligent, if this amendment ‘‘(f) FEES ON DISHONORED CHECKS.— brought against them, as I said a said the standard was gross negligence, ‘‘(1) RECEIVING DEPOSITORY INSTITUTION.—In minute ago, they have no right to a it would be less of a problem for me, the case of a check drawn on an account at jury trial, and the administrative judge but this says for the FDIC to be able to an originating institution which is dishon- that makes a determination on wheth- discipline an attorney or any other ored by the originating institution due to er they are guilty or innocent is ap- the lack of sufficient funds in such account professional servicing a bank, it must to pay the check, a receiving depository in- pointed by the regulatory agent. And be a standard of either knowledge or stitution may not impose any fee on the de- right now the burden of proof is on the recklessness of the conduct, and I positor, in connection with such check, due regulatory agent to prove that the in- think that is a mistake. to such dishonorment. sider knew, had knowledge, or was We know that there is not always a ‘‘(2) RULE OF CONSTRUCTION.—No provision reckless. And I think that standard great difference between the people of this section shall be construed as affecting proved to be the right standard during who work full-time for the bank and any intervening depository institution or the the savings and loan crisis during the the people who are working as profes- costs of the services provided by such deposi- mid-1980s. There has been no shortage tory institution.’’. sionals for the bank. There are people (b) EFFECTIVE DATE.—The amendment of enforcement action by the regu- who specialize, lawyers who specialize, made by this section shall apply after the lators. So I simply say, let us strike in serving banks, other professionals end of the 180-day period beginning on the section 614. The gentlewoman from Or- who would specialize in serving banks. date of the enactment of this Act. egon (Ms. HOOLEY), the gentleman from It seems to me entirely reasonable for The CHAIRMAN pro tempore. Pursu- Alabama (Mr. DAVIS), and the gen- them to be held to that standard. ant to House Resolution 566, the gen- tleman from Virginia (Mr. CANTOR) are So I do agree that we want to be de- tleman from New York (Mr. WEINER) supporting me in this amendment, as regulatory here, and a few minutes ago and a Member opposed each will con- are the American Bar Association, the some of us were saying it was a good trol 5 minutes. appraisers, the accounting organiza- thing we have the FDIC. They are the The Chair recognizes the gentleman tions, all of which simply are aghast regulators of the ILCs. They are an im- from New York (Mr. WEINER). that we would put some provision like portant regulator. This is a case where Mr. WEINER. Mr. Chairman, I yield 1 this in a bill which would give the reg- the regulators have asked us to keep a minute to the gentleman from Massa- ulators such ominous authority. standard for them which they use when chusetts (Mr. FRANK).

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00035 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.047 H18PT1 H1266 CONGRESSIONAL RECORD — HOUSE March 18, 2004 Mr. FRANK of Massachusetts. Mr. cepts a bad check from a third party under this provision, for them to Chairman, this is a very proconsumer and deposits that check into his ac- charge the person who wrote the bad effort. I do think people ought to be pe- count and the bank takes a hit, and it check. nalized when they can control it. But does take a hit anywhere from, accord- Right now, I think it works very as the gentleman from New York as ing to the Massachusetts Division of well. A landlord gets a bad check from pointed out, bank practices today Banks, which is one of the more liberal a renter, the landlord takes that check blame the victim. If one is a recipient supervisors, it says that cost can be as down and deposits it to the bank, the of a bad check and they in good faith much as $15, $14.46. It can be as little as bank gets stiffed with a bad check, it deposit it in their bank, they are penal- $1 or $2. But this is not a pro-consumer passes it back to the landlord, the ized. Indeed, I would contrast this with bill; this is, in my mind, a pro-either landlord turns around and charges it to the previous amendment. If one is an customer who accepts a bad check, or a the renter. That is the way it ought to attorney now under this bill and they pro-person who issues worthless be. The bank, and all of the customers behave with gross negligence, the FDIC checks. I mean, the only person that is of the bank, should not have to pay for cannot do anything about it; but if rewarded by this provision is someone a renter who writes a worthless check they are the consumer who gets a bad who issues a bad check. to the landlord. That ought to be check, they get whacked. I do not As drafted, it is not even clear charged to the landlord, and then they think it is anticapitalist to say that whether the fee prohibition will apply can pass that back to the renter. people who are the victims of bad only to the customer who accepts a bad Let me simply close by saying this is checks once should not be victimized check but, apparently, the prohibition a regulatory relief bill that we prom- by bad checks twice. People have said, will also pass through to the person ised to the financial institutions be- well, we should give them an incentive. who wrote the bad check. cause of all of the costs they were in- As the gentleman from New York had So we have the perverse situation curring as a result of the PATRIOT said, I do not know many people who here where banks cannot charge for Act. It is not a regulatory burden bill. say I do not mind getting a bad check worthless checks. This provision is ac- We do not reward someone with more as long as my bank does not hurt me. tually going to discourage responsi- punishment. We have imposed all of I think there is already every incentive bility by customers. It is going to pro- these money-laundering requirements they have got to say no to it. We are hibit the bank from passing that on them, and we told them we would not talking about someone who takes charge on to the customer who writes come back in this legislation and help eight bad checks from the same person. the check. In fact, what it could do is, them recover some of the costs, and The first time someone victimizes if this thing passes, a fraudulent at- thrifts are going to be stuck with this, someone with a check that has insuffi- tempt could simply be to write a bunch credit unions cannot charge. It is going cient funds, they are victimized. of bad checks, deposit them in my ac- to really hurt a lot of institutions and This amendment is a good amend- count or deposit them in a friend’s ac- a lot of customers. ment. count, and we could swap and we could Mr. WEINER. Mr. Chairman, I yield Mr. WEINER. Mr. Chairman, I yield start inundating the bank with worth- myself such time as I may consume. myself such time as I may consume. less checks. I do not know where to start. First, Mr. Chairman, this is a very easy-to- Who would be saddled with that? let us start about the mistake that the understand issue, but a very difficult- Well, according to the gentleman from gentleman made about the bill, line 13, to-understand fee. When someone New York (Mr. WEINER), the bank, be- page 1: may not impose a fee on the de- writes someone a check and they do cause the bank cannot pass it on to the positor. Nothing in this bill stops the not have the funds in that account, customer, so what would the bank do? bank from charging a fee to the person they pay a penalty. They pay a fine. It would raise its fees to everyone. The who bounced the check. Let me say it They violated the rules of the trans- end result would be that those cus- again. Nothing in this bill stops the action. When they receive the check, tomers, those of us who are diligent in person who bounced the check from what have they done wrong? What rule determining who we are dealing with getting a fee. You can charge them have they violated? What sanctions and accepting checks from other par- $10,000. I think it is too high, but should be against someone for receiv- ties, would end up with the burden. $10,000. ing the bad check? And the gentleman This really creates an unfair situa- Here is the scenario I would like to from Massachusetts was absolutely tion where customers who do not de- explain to the gentleman. The gen- correct. This is a proconsumer meas- posit bad checks or high-risk checks tleman from Alabama (Mr. BACHUS) ure. But let us remember who the re- subsidize those who do on the cost of knows me. The gentleman and I serve cipients of most bounced checks are. handling those items. In my mind, it is on a committee together. I give the They are small businesses, they are su- just the American system; banks are gentleman a check. I have violated the permarkets, they are liquor stores, no different from you and I. When they rules. I give the gentleman a check they are appliance stores that are not incur costs, they ought to be able to that does not have enough money to only out the money, they are out the charge the party responsible for caus- back it. Can the gentleman check goods. It simply makes no sense. ing that cost. Depository institutions whether I have enough money in the I have seen some of the arguments should be allowed to charge those cus- account? Under the rules of privacy we against this. They say, well, it is going tomers who cause the institution to passed here, he can. He does everything to increase the cost of banking for con- incur the cost. It is just simply the exactly according to Hoyle. sumers. If there is a cost to this trans- way we have done business in this The gentleman is now the victim of a action, I ask only one question: Why country since the start. We are simply bad check. The gentleman is the victim does the victim pay it? All my amend- absolving people of responsibility who of a bad check, I say to the gentleman. ment does is it says they cannot charge are the people in the position to take I leave town. I do not get reelected. I the victim of a bad check for that ac- responsibility. A customer who depos- get elected mayor. Stranger things tion. its a bad check has the opportunity, he have happened. And the gentleman often has the opportunity to pass any from Alabama is now out the money b 1245 fees that are assessed back to the per- for the check, and his bank is charging Why should the victim pay? Why son who wrote the check. him a fee. should the victim pay? So even if this is drafted, and I be- I want to make sure the gentleman Mr. Chairman, I reserve the balance lieve it is drafted where it is just a pro- understands this, because he misstated of my time. hibition, it does not say that they can it consistently over 5 minutes. There is Mr. BACHUS. Mr. Chairman, I rise in put it on anybody. They cannot put it nothing stopping the bank from penal- opposition to the Weiner amendment, on their customer. They certainly do izing the person who bounces the and I yield myself such time as I may not have any connection or relation- check. This is about the person receiv- consume. ship with the third party who wrote ing the bad check. And this notion Mr. Chairman, what this amendment the bad check, so it is going to be al- about the landlord and the oppression does is it says, when a customer ac- most very impractical, if not illegal that we are putting on people, do my

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00036 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.051 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1267 colleagues know who benefits from this The text of the amendment is as fol- Mr. Chairman, this is again a simple bill the most? Those that are rep- lows: amendment that I would ask my col- resented by the food marketing insti- Amendment No. 5 offered by Ms. JACKSON- leagues to support enthusiastically, to tute, local supermarkets, local liquor LEE of Texas: not abdicate our responsibilities of stores, local bodegas, people who re- Page 83, line 4, strike the closing quotation oversight when a merger comes about ceive checks in large numbers, who do marks and the 2nd period. in terms of its impact on our commu- everything according to the rules the Page 83, after line 4, insert the following nities. new subparagraph: gentleman from Alabama just de- Mr. Chairman, I reserve the balance ‘‘(C) SENSE OF THE CONGRESS.—It is the scribed; and they are facing a sanction of my time. sense of the Congress that, when a request- Mr. BACHUS. Mr. Chairman, I rise in for the benefit of having a bounced ing agency requires expeditious action on an check. The gentleman says, well, we application for a merger transaction, consid- opposition to the amendment, and are sticking this to the banks. No. eration should be made as to the impact the claim that time, and I yield myself There is no reason that we should stick merger transaction will have on corporate such time as I may consume. Mr. Chairman, I believe that the gen- this to anyone, but especially not the and individual customers in an effort to en- tlewoman’s concerns are already fully victim. sure that no harmful effects will result from addressed in this legislation. I believe To oppose this amendment is to say, the merger transaction.’’. that because the current law requires I believe the person who had the check The CHAIRMAN pro tempore. Pursu- Federal financial regulators to closely bounced against them should pay this ant to House Resolution 566, the gen- tlewoman from Texas (Ms. JACKSON- examine the impact of any mergers, fee. I would say, Mr. Chairman, there not only on the financial system, but are a lot of reasons why I can see the LEE) and a Member opposed each will control 5 minutes. also on the communities involved. If banks are so jealously guarding this. my colleagues will look at 12 USC 1842, They all have dollar signs after them. The Chair recognizes the gentle- woman from Texas (Ms. JACKSON-LEE). it says: ‘‘A Federal financial regulator They make a lot of money from this may not approve any merger where the practice. But, frankly, it is patently Ms. JACKSON-LEE of Texas. Mr. Chairman, I yield myself such time as proposed acquisition merger or consoli- unfair, unfair to individual consumers, dation may substantially lessen com- unfair to that landlord. In the gentle- I may consume. Let me, first of all, add my apprecia- petition, tend to create a monopoly, or man’s description, the landlord is out restrain trade, unless it finds that the the rent, and he is out the fee. What tion to the chairman of the full com- mittee and the ranking member of the anti-competitive effects of the pro- did that guy do wrong? What is the posed transaction are clearly out- full committee and of course the sub- purpose of a penalty if it is not penal- weighed in the public interest by the committee Chair and ranking member, izing anything that he can avoid? He probable effect of the transaction in because I believe that they understand followed every single rule. meeting the convenience and needs of that everyone in every community has And I would ask the gentleman the communities to be served.’’ again, you are running a supermarket, experienced the impact which my This section of the U.S. Code goes on you get a check. You say, I want to see amendment is attempting to address. to state that in every acquisition, your ID; I want to see your driver’s li- We understand that this is a Nation merger, or consolidation the regulator cense. I want a photograph. I want to now of mergers and acquisitions, but shall take into consideration the finan- know where you live. I want to know the real question on bank mergers is cial and managerial resources and fu- the names of your sisters and brothers. what happens to the friendly bank offi- ture prospects of the company or com- And they take the check, following cer that most of us are familiar with? panies and bank concerns and the con- every rule the bank set up, and it What happens to the civic spirit? What venience and needs of the community. bounces. What have you done wrong? happens to the decision-making, and Let me stress that: and the conven- How do you avoid that sanction? What what happens to the jobs? ience and needs of the communities. kind of a law do we ever pass here My amendment is simple. It says All mergers, acquisitions, and con- where we tell how you avoid the pen- that when there is an expedited process solidations are subject to antitrust re- alty? It is patently unfair. in a merger transaction, consideration view by the Department of Justice to I want to reiterate this. This is a should be made as to the impact the ensure that there is not a negative im- consumer issue, because consumers get transaction will have on corporate and pact on the financial system or on the bad checks. Ninety-nine percent of individual customers in an effort to en- communities that the financial institu- these checks are to businesses, small sure that no harmful effects will result tions serve. businesses who use this check as an ar- from the merger transaction. So we have all of these tests, all of ticle of faith, and we should not penal- What does that mean? It means that these hurdles that must be gone ize them for doing that. we know when there are large conglom- through. Finally, not only that, but notice The CHAIRMAN pro tempore (Mr. erates coming together, whether you must be given that a merger is being SWEENEY). The gentleman’s time has are in an urban area or whether you considered, and under the Community expired. All time has expired. are in a rural area, there is going to be Reinvestment Act, members of the af- The question is on the amendment some loss. What is that loss? First of fected communities have the ability to offered by the gentleman from New all, we may lose something that this comment on the impact of the merger EINER). body has been discussing over a num- York (Mr. W to the banking agency. So we have all The question was taken; and the ber of months because of the large per- of this. Nothing in this regulation re- Chairman pro tempore announced that centage of unemployment in our Na- tion. We will lose jobs in a certain lief bill changes that. the noes appeared to have it. These same protections and consider- area. But then we will lose something Mr. WEINER. Mr. Chairman, I de- ations apply when a financial institu- that is very important that many of us mand a recorded vote. tion is participating in an expedited do not focus on: the decision-making The CHAIRMAN pro tempore. Pursu- merger process. ant to clause 6 of rule XVIII, further capacity to lend monies to the commu- proceedings on the amendment offered nity, home loans, bank loans dealing b 1300 by the gentleman from New York (Mr. with businesses, maybe even car loans. Accordingly, this amendment simply WEINER) will be postponed. I have in my possession information is not necessary. It will add additional It is now in order to consider amend- that shows that in rural Texas, 42 per- cost. And I must urge its defeat on the ment No. 5 printed in House report 108– cent of those who apply for loans are grounds I have just stated and on the 439. able to get it; but then the other re- further grounds, as I have said in op- AMENDMENT NO. 5 OFFERED BY MS. JACKSON- maining body does not. So there is a posing the last amendment, that we LEE of texas problem. When a conglomerate will promised the financial institutions, the Ms. JACKSON-LEE of Texas. Mr. merge with smaller banks in rural credit unions, the thrifts, and the Chairman, I offer an amendment. areas, it takes away that ability to small banks, those that have the great- The Chairman pro tempore. The gain the right to a decision to secure est regulatory burden, the greatest per- Clerk will designate the amendment. monies. centage of cost in complying with

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00037 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.053 H18PT1 H1268 CONGRESSIONAL RECORD — HOUSE March 18, 2004 these new money laundering provi- this is not isolated to one area versus the Federal Reserve System may determine sions, that we would take the burdens another. All of us face mergers in our by rule or order), for any purpose, to another off of them, not put more burdens on community. This is the next step of account of the owner in the same institu- them. banks. We know that. For some reason tion. An account offered pursuant to this So I would urge the defeat of this they find it to be more accommodating subsection shall be considered a transaction amendment. to have these large institutions. This account for purposes of section 19 of the Fed- eral Reserve Act unless the Board of Gov- Mr. Chairman, I reserve the balance does not in any way undermine having of my time. ernors of the Federal Reserve System deter- a large institution. What it says is just mines otherwise.’’. Ms. JACKSON-LEE of Texas. Mr. be diligent to ensure that with respect Chairman, I yield myself such time as to the sense of Congress that we ensure (b) Effective at the end of the 2-year period I may consume. that these issues are covered. beginning on the date of the enactment of this Act, section 2 of Public Law 93–100 (12 Mr. Chairman, I am disappointed in I would ask my colleagues to support the gentleman’s opposition, but I press U.S.C. 1832) is amended— this amendment on behalf of rural (1) in subsection (a)(1), by striking ‘‘but on in any event, because I press on on America, urban America, suburban behalf of the consumers. subject to paragraph (2)’’; America, and on behalf of preserving I would, with all due respect, refer to (2) by striking paragraph (2) of subsection the civic mindedness or at least paying (a) and inserting the following new para- the gentleman from Ohio (Mr. OXLEY), graph: who is on the floor, to look at this attention to the civic mindedness that our banks provide. ‘‘(2) No provision of this section may be amendment. It is simply a sense of construed as conferring the authority to Congress that we not abdicate our Mr. BACHUS. Mr. Chairman, I yield myself such time as I may consume. offer demand deposit accounts to any insti- oversight. tution that is prohibited by law from offer- I have heard the gentleman from Ala- Mr. Chairman, we are concerned ing demand deposit accounts.’’; and bama (Mr. BACHUS) on the fact that we about many of the same things the (3) in subsection (b) (as added by sub- have all of the oversight. But clearly I gentlewoman from Texas (Ms. JACK- section (a) of this section) by striking ‘‘and think in the expedited process, the in- SON-LEE) is concerned about. We sim- is not a deposit or account described in sub- dication or instruction, if you will, to ply think that existing law addresses section (a)(2)’’. the appropriate regulators that we these concerns. And I have reiterated SEC. 703. INTEREST-BEARING TRANSACTION AC- should look keenly at whether or not those. COUNTS AUTHORIZED. Mr. Chairman, I yield back the bal- these mergers impact negatively on (a) REPEAL OF PROHIBITION ON PAYMENT OF corporate and individual consumers in ance of my time. INTEREST ON DEMAND DEPOSITS.— the elements that I have listed, the The CHAIRMAN pro tempore (Mr. (1) FEDERAL RESERVE ACT.—Section 19(i) of loss of jobs, the element of decision- SWEENEY). The question is on the the Federal Reserve Act (12 U.S.C. 371a) is making, the question of civic minded- amendment offered by the gentle- amended to read as follows: ness, if you will, and clearly to note in woman from Texas (Ms. JACKSON-LEE). ‘‘(i) [Repealed]’’. our communities when headquarters The question was taken; and the (2) HOME OWNERS’ LOAN ACT.—The first sen- lift up and move from cities that have Chairman pro tempore announced that tence of section 5(b)(1)(B) of the Home Own- hosted these banks for years and years the noes appeared to have it. ers’ Loan Act (12 U.S.C. 1464(b)(1)(B)) is and years. Ms. JACKSON-LEE of Texas. Mr. amended by striking ‘‘savings association This is not an excessive burden, Mr. Chairman, I demand a recorded vote. may not—’’ and all that follows through ‘‘(ii) permit any’’ and inserting ‘‘savings associa- Chairman. It is simply the responsi- The CHAIRMAN pro tempore. Pursu- ant to clause 6 of rule XVIII, further tion may not permit any’’. bility of Congress to ensure that not (3) FEDERAL DEPOSIT INSURANCE ACT.—Sec- only are we, if you will, the protectors proceedings on the amendment offered tion 18(g) of the Federal Deposit Insurance of the corporate elite and large bank- by the gentlewoman from Texas (Ms. Act (12 U.S.C. 1828(g)) is amended to read as ing institutions, but we also respect JACKSON-LEE) will be postponed. follows: the responsibilities that we have to the It is now in order to consider Amend- ‘‘(g) [Repealed]’’. average Joe Consumer, whether that ment No. 6 printed in House Report 108–439. (b) EFFECTIVE DATE.—The amendments happens to be the small business con- made by subsection (a) shall take effect at sumer, the individual family who is AMENDMENT NO. 6 OFFERED BY MRS. KELLY the end of the 2-year period beginning on the seeking a home loan, or in individual Mrs. KELLY. Mr. Chairman, I offer date of the enactment of this Act. accounts. an amendment. We know that the new kid on the The CHAIRMAN pro tempore. The SEC. 704. PAYMENT OF INTEREST ON RESERVES AT FEDERAL RESERVE BANKS. block in our banking success stories is Clerk will designate the amendment. consumer banking. We know for a fact The text of the amendment is as fol- (a) IN GENERAL.—Section 19(b) of the Fed- that we have had the opportunity to lows: eral Reserve Act (12 U.S.C. 461(b)) is amended by adding at the end the following new para- see our banks grow and thrive because Amendment No. 6 offered by Mrs. KELLY: graph: of the fact that they have been basing Page 108, after line 14, insert the following ‘‘(12) EARNINGS ON RESERVES.— their bottom line, their bottom black new title (and redesignate the subsequent ‘‘(A) IN GENERAL.—Balances maintained at title and sections and conform the table of line, if you will, their success and prof- a Federal reserve bank by or on behalf of a contents accordingly): its on consumer banking. Why would depository institution may receive earnings we suggest that this is a burden to our TITLE VII—BUSINESS CHECKING to be paid by the Federal reserve bank at credit unions or our banking institu- FREEDOM least once each calendar quarter at a rate or tions to be keenly sensitive to mergers SEC. 701. SHORT TITLE. rates not to exceed the general level of and to make sure, in fact, that we have This title may be cited as the ‘‘Business short-term interest rates. the opportunity to review this matter Checking Freedom Act of 2004’’. ‘‘(B) REGULATIONS RELATING TO PAYMENTS in a way that is appropriate for this SEC. 702. INTEREST-BEARING TRANSACTION AC- AND DISTRIBUTION.—The Board may prescribe COUNTS AUTHORIZED FOR ALL regulations concerning— body? BUSINESSES. ‘‘(i) the payment of earnings in accordance Again, it is a sense of Congress. That (a) Section 2 of Public Law 93–100 (12 U.S.C. with this paragraph; is all it is, gentlemen. Why in the 1832) is amended— ‘‘(ii) the distribution of such earnings to world would we have a difficulty in a (1) by redesignating subsections (b) and (c) the depository institutions which maintain sense of Congress that does not in any as subsections (c) and (d), respectively; and balances at such banks or on whose behalf way attempt to jeopardize the working (2) by inserting after subsection (a) the fol- such balances are maintained; and relationship? It is not regulatory; it is lowing: ‘‘(iii) the responsibilities of depository in- a sense of Congress. Can we not have a ‘‘(b) Notwithstanding any other provision stitutions, Federal home loan banks, and the commonality of viewpoints and re- of law, any depository institution may per- National Credit Union Administration Cen- mit the owner of any deposit or account tral Liquidity Facility with respect to the sponse? I do not see why we cannot which is a deposit or account on which inter- crediting and distribution of earnings attrib- have an agreement on this. Again, it is est or dividends are paid and is not a deposit utable to balances maintained, in accordance a sense of Congress. or account described in subsection (a)(2) to with subsection (c)(1)(A), in a Federal re- I want to just make this point, Mr. make up to 24 transfers per month (or such serve bank by any such entity on behalf of Chairman, if I can. The idea is that greater number as the Board of Governors of depository institutions.

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00038 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.056 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1269

‘‘(C) DEPOSITORY INSTITUTIONS DEFINED.— ‘‘(C) Fees charged to customers for with- ‘‘(ii) Annual percentage rates for cash ad- For purposes of this paragraph, the term ‘de- drawals, deposits, and balance inquiries vances and balance transfers. pository institution’, in addition to the in- through institution-owned machines. ‘‘(iii) Maximum annual percentage rate stitutions described in paragraph (1)(A), in- ‘‘(D) Fees charged to customers for with- that may be charged when an account is in cludes any trust company, corporation orga- drawals, deposits, and balance inquiries default. nized under section 25A or having an agree- through machines owned by others. ‘‘(iv) Fees for the use of convenience ment with the Board under section 25, or any ‘‘(E) Fees charged to noncustomers for checks. branch or agency of a foreign bank (as de- withdrawals, deposits, and balance inquiries ‘‘(v) Fees for balance transfers. fined in section 1(b) of the International through institution-owned machines. ‘‘(vi) Fees for foreign currency conver- Banking Act of 1978).’’. ‘‘(F) Point-of-sale transaction fees. sions.’’. (b) AUTHORIZATION FOR PASS THROUGH RE- ‘‘(4) OTHER ELECTRONIC TRANSACTIONS.— (B) EFFECTIVE DATE.—The amendment SERVES FOR MEMBER BANKS.—Section Data on other electronic transactions shall made by subparagraph (A) shall take effect 19(c)(1)(B) of the Federal Reserve Act (12 include, at a minimum, the following: on January 1, 2004. U.S.C. 461(c)(1)(B)) is amended by striking ‘‘(A) Wire transfer fees. (3) REPEAL OF OTHER REPORT PROVISIONS.— ‘‘which is not a member bank’’. ‘‘(B) Fees related to payments made over Section 1002 of Financial Institutions Re- (c) CONSUMER BANKING COSTS ASSESS- the Internet or through other electronic form, Recovery, and Enforcement Act of 1989 MENT.— means. and section 108 of the Riegle-Neal Interstate (1) IN GENERAL.—The Federal Reserve Act ‘‘(5) OTHER FEES AND CHARGES.—Data on Banking and Branching Efficiency Act of (12 U.S.C. 221 et seq.) is amended— any other fees and charges that the Board of 1994 are hereby repealed. (A) by redesignating sections 30 and 31 as Governors of the Federal Reserve System de- (d) TECHNICAL AND CONFORMING AMEND- sections 31 and 32, respectively; and termines to be appropriate to meet the pur- MENTS.—Section 19 of the Federal Reserve (B) by inserting after section 29 the fol- poses of this section. Act (12 U.S.C. 461) is amended— lowing new section: ‘‘(6) FEDERAL RESERVE BOARD AUTHORITY.— (1) in subsection (b)(4) (12 U.S.C. 461(b)(4)), The Board of Governors of the Federal Re- ‘‘SEC. 30. SURVEY OF BANK FEES AND SERVICES. by striking subparagraph (C) and redesig- serve System may cease the collection of in- ‘‘(a) ANNUAL SURVEY REQUIRED.—The nating subparagraphs (D) and (E) as subpara- formation with regard to any particular fee Board of Governors of the Federal Reserve graphs (C) and (D), respectively; and or charge specified in this subsection if the (2) in subsection (c)(1)(A) (12 U.S.C. System shall obtain annually a sample, Board makes a determination that, on the which is representative by type and size of 461(c)(1)(A)), by striking ‘‘subsection basis of changing practices in the financial (b)(4)(C)’’ and inserting ‘‘subsection (b)’’. the institution (including small institutions) services industry, the collection of such in- and geographic location, of the following re- formation is no longer necessary to accom- SEC. 705. INCREASED FEDERAL RESERVE BOARD tail banking services and products provided FLEXIBILITY IN SETTING RESERVE plish the purposes of this section. REQUIREMENTS. by insured depository institutions and in- ‘‘(c) ANNUAL REPORT TO CONGRESS RE- Section 19(b)(2)(A) of the Federal Reserve sured credit unions (along with related fees QUIRED.— Act (12 U.S.C. 461(b)(2)(A)) is amended— and minimum balances): ‘‘(1) PREPARATION.—The Board of Gov- ‘‘(1) Checking and other transaction ac- ernors of the Federal Reserve System shall (1) in clause (i), by striking ‘‘the ratio of 3 counts. prepare a report of the results of each survey per centum’’ and inserting ‘‘a ratio not ‘‘(2) Negotiable order of withdrawal and conducted pursuant to subsections (a) and (b) greater than 3 percent (and which may be savings accounts. of this section and section 136(b)(1) of the zero)’’; and ‘‘(3) Automated teller machine trans- Consumer Credit Protection Act. (2) in clause (ii), by striking ‘‘and not less than 8 per centum,’’ and inserting ‘‘(and actions. ‘‘(2) CONTENTS OF THE REPORT.—In addition ‘‘(4) Other electronic transactions. to the data required to be collected pursuant which may be zero),’’. ‘‘(b) MINIMUM SURVEY REQUIREMENT.—The to subsections (a) and (b), each report pre- SEC. 706. TRANSFER OF FEDERAL RESERVE SUR- annual survey described in subsection (a) pared pursuant to paragraph (1) shall include PLUSES. shall meet the following minimum require- a description of any discernible trend, in the (a) IN GENERAL.—Section 7(b) of the Fed- ments: Nation as a whole, in a representative sam- eral Reserve Act (12 U.S.C. 289(b)) is amended ‘‘(1) CHECKING AND OTHER TRANSACTION AC- ple of the 50 States (selected with due regard by adding at the end the following new para- COUNTS.—Data on checking and transaction for regional differences), and in each consoli- graph: accounts shall include, at a minimum, the dated metropolitan statistical area (as de- ‘‘(4) ADDITIONAL TRANSFERS TO COVER IN- following: fined by the Director of the Office of Man- TEREST PAYMENTS FOR FISCAL YEARS 2003 ‘‘(A) Monthly and annual fees and min- agement and Budget), in the cost and avail- THROUGH 2007.— imum balances to avoid such fees. ability of the retail banking services, includ- ‘‘(A) IN GENERAL.—In addition to the ‘‘(B) Minimum opening balances. ing those described in subsections (a) and (b) amounts required to be transferred from the ‘‘(C) Check processing fees. (including related fees and minimum bal- surplus funds of the Federal reserve banks ‘‘(D) Check printing fees. ances), that delineates differences between pursuant to subsection (a)(3), the Federal re- ‘‘(E) Balance inquiry fees. institutions on the basis of the type of insti- serve banks shall transfer from such surplus ‘‘(F) Fees imposed for using a teller or tution and the size of the institution, be- funds to the Board of Governors of the Fed- other institution employee. tween large and small institutions of the eral Reserve System for transfer to the Sec- ‘‘(G) Stop payment order fees. same type, and any engagement of the insti- retary of the Treasury for deposit in the gen- ‘‘(H) Nonsufficient fund fees. tution in multistate activity. eral fund of the Treasury, such sums as are ‘‘(I) Overdraft fees. ‘‘(3) SUBMISSION TO CONGRESS.—The Board necessary to equal the net cost of section ‘‘(J) Deposit items returned fees. of Governors of the Federal Reserve System 19(b)(12) in each of the fiscal years 2003 ‘‘(K) Availability of no-cost or low-cost ac- shall submit an annual report to the Con- through 2007. counts for consumers who maintain low bal- gress not later than June 1, 2005, and not ‘‘(B) ALLOCATION BY FEDERAL RESERVE ances. later than June 1 of each subsequent year. BOARD.—Of the total amount required to be ‘‘(2) NEGOTIABLE ORDER OF WITHDRAWAL AC- ‘‘(d) DEFINITIONS.—For purposes of this sec- paid by the Federal reserve banks under sub- COUNTS AND SAVINGS ACCOUNTS.—Data on ne- tion, the term ‘insured depository institu- paragraph (A) for fiscal years 2003 through gotiable order of withdrawal accounts and tion’ has the meaning given such term in 2007, the Board of Governors of the Federal savings accounts shall include, at a min- section 3 of the Federal Deposit Insurance Reserve System shall determine the amount imum, the following: Act, and the term ‘insured credit union’ has each such bank shall pay in such fiscal year. ‘‘(A) Monthly and annual fees and min- the meaning given such term in section 101 ‘‘(C) REPLENISHMENT OF SURPLUS FUND PRO- imum balances to avoid such fees. of the Federal Credit Union Act.’’. HIBITED.—During fiscal years 2003 through ‘‘(B) Minimum opening balances. (2) CONFORMING AMENDMENT.— 2007, no Federal reserve bank may replenish ‘‘(C) Rate at which interest is paid to con- (A) IN GENERAL.—Paragraph (1) of section such bank’s surplus fund by the amount of sumers. 136(b) of the Truth in Lending Act (15 U.S.C. any transfer by such bank under subpara- ‘‘(D) Check processing fees for negotiable 1646(b)(1)) is amended to read as follows: graph (A).’’. order of withdrawal accounts. ‘‘(1) COLLECTION REQUIRED.—The Board (b) TECHNICAL AND CONFORMING AMEND- ‘‘(E) Fees imposed for using a teller or shall collect, on a semiannual basis, from a MENT.—Section 7(a) of the Federal Reserve other institution employee. broad sample of financial institutions which Act (12 U.S.C. 289(a)) is amended by adding at ‘‘(F) Availability of no-cost or low-cost ac- offer credit card services, credit card price the end the following new paragraph: counts for consumers who maintain low bal- and availability information including— ‘‘(3) PAYMENT TO TREASURY.—During fiscal ances. ‘‘(A) the information required to be dis- years 2003 through 2007, any amount in the ‘‘(3) AUTOMATED TELLER TRANSACTIONS.— closed under section 127(c) of this chapter; surplus fund of any Federal reserve bank in Data on automated teller machine trans- ‘‘(B) the average total amount of finance excess of the amount equal to 3 percent of actions shall include, at a minimum, the fol- charges paid by consumers; and the paid-in capital and surplus of the mem- lowing: ‘‘(C) the following credit card rates and ber banks of such bank shall be transferred ‘‘(A) Monthly and annual fees. fees: to the Secretary of the Treasury for deposit ‘‘(B) Card fees. ‘‘(i) Application fees. in the general fund of the Treasury.’’.

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00039 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.021 H18PT1 H1270 CONGRESSIONAL RECORD — HOUSE March 18, 2004 SEC. 707. RULE OF CONSTRUCTION. terest on business checking accounts Mr. FRANK of Massachusetts. Mr. In the case of an escrow account main- after a transition period. And while I Chairman, in the apparent absence of tained at a depository institution in connec- believe it should be repealed entirely, a anyone in opposition, I would ask for tion with a real estate transaction— (1) the absorption, by the depository insti- bipartisan group of Members have the time. tution, of expenses incidental to providing a agreed that a proper transition period The CHAIRMAN pro tempore. With- normal banking service with respect to such is necessary. out objection, the gentleman is recog- escrow account; We are also aware of the potential nized for 5 minutes. (2) the forbearance, by the depository insti- impact of an outright repeal of the law. There was no objection. tution, from charging a fee for providing any That is why a transition period is cru- Mr. FRANK of Massachusetts. Mr. such banking function; and cial. And we will continue to work to Chairman, I yield myself such time as (3) any benefit which may accrue to the ensure that the needs of our smaller I may consume. holder or the beneficiary of such escrow ac- banks are being addressed. As a result, Mr. Chairman, this is, as I think has count as a result of an action of the deposi- the legislation includes a 2-year transi- been made clear, a bill that has already tory institution described in subparagraph passed the House. Clearly the former (1) or (2) or similar in nature to such action, tion period contained in the bill. shall not be treated as the payment or re- I would also like to say that I share reasons for the prohibition on interest ceipt of interest for purposes of this Act and and recognize the concerns of some on business checking accounts no any provision of Public Law 93–100, the Fed- Members with regard to the ILCs and longer make sense in light of the cur- eral Reserve Act, the Home Owners’ Loan will work with my colleagues, includ- rent economy. Act, or the Federal Deposit Insurance Act re- ing the gentleman from Ohio (Mr. I appreciate the gentlewoman from lating to the payment of interest on ac- New York (Mrs. KELLY) alluding to the GILLMOR) and the gentleman from Mas- counts or deposits at depository institutions, issue of the ILCs. When we had origi- provided, however, that nothing herein shall sachusetts (Mr. FRANK) to achieve a remedy to the concerns that have been nally dealt with this, it had been my be construed so as to require a depository in- hope as this bill went forward in the stitution that maintains an escrow account raised about the ILCs. in connection with a real estate transaction The legislation is important. It al- other body, the compromise we had to pay interest on such escrow account or to lows banks to increase money market adopted could be considered there. For prohibit such institution from paying inter- deposits and savings account sweeps a variety of reasons this did not go for- est on such escrow account. Nor shall any- from the current 6 to 24 times a month. ward in the other body. And the rules thing herein be construed to preempt the This gives banks an increase in their prohibit me from commenting on provisions of law of any State dealing with whether or not anyone ought to be sur- the payment of interest on escrow accounts sweep activities, increasing the inter- est which businesses can make on their prised by the absence of that progress, maintained in connection with real estate so I shall not. transactions. accounts. The final provision gives the Federal But this, once again, we hope will go The CHAIRMAN pro tempore. Pursu- forward; because it is, I think, an im- ant to House Resolution 566, the gen- Reserve the opportunity to pay inter- est on the reserves that the banks need portant thing especially, as has been tlewoman from New York (Mrs. KELLY) clear, for the small businesses. Interest and a Member opposed each will con- to keep within the Federal Reserve sys- tem. And Chairman Greenspan has re- on their checking accounts, if you are trol 5 minutes. a smaller business and you have to The Chair recognizes the gentle- peatedly testified that he is in favor of this provision. maintain a large percentage of your woman from New York (Mrs. KELLY). funds in checking accounts for a vari- Mrs. KELLY. Mr. Chairman, I yield It also gives the Fed the flexibility to ety of reasons, then the lack of interest myself such time as I may consume. lower reserve requirements, which en- Mr. Chairman, I also want to thank ables the Fed to have greater control could become a significant factor. So I hope that this will ultimately the gentleman from Pennsylvania (Mr. to maintain reserves at specific and pass, but I do hope that the ILC issue TOOMEY) for his collaboration on this consistent levels. This language will help foster healthy receiver balances will get some further attention. proposal and Members of the Com- Mr. Chairman, I yield back the bal- and reduce the potential for volatility mittee on Rules for allowing this ance of my time. amendment to be considered today. within the bank Federal funds rate pro- Mrs. KELLY. Mr. Chairman, I yield Most Americans with checking ac- tecting the Federal Reserve’s ability to my remaining minute to the gentleman counts would be shocked to learn that conduct monetary policy. from Pennsylvania (Mr. TOOMEY.) if they started their own business, any Quite simply, this legislation is Mr. FRANK of Massachusetts. Mr. checking account they establish for about creating a new and broader mar- Chairman, I ask unanimous consent to that business would be prohibited from ket option and supporting our small reclaim my time, and I also yield 1 earning any interest. Yet that is the businesses at the same time. The minute to the gentleman from Penn- case today. Checking accounts held by amendment allows banks to pay inter- sylvania (Mr. TOOMEY). small businesses are banned by Federal est on business checking accounts and The CHAIRMAN pro tempore. With- law from collecting the interest that increase sweeps activities. The amend- out objection, the gentleman from money would earn if it were held by an ment also allows the Fed to pay inter- Massachusetts may reclaim his time. individual. est on the sterile reserves that banks There was no objection. The amendment I am offering ad- are required to keep with them and The CHAIRMAN pro tempore. The dresses this matter and it has been lower reserve requirements. gentleman from Pennsylvania (Mr. pending before Congress for some time The amendment does not require or TOOMEY) is recognized for 2 minutes. now. This body has actually passed this mandate anything. It allows the mar- Mr. TOOMEY. Mr. Chairman, I would measure by voice vote not once, not ket to create change and not the gov- like to thank my colleague, the gentle- twice, but actually three times; twice ernment. woman from New York (Mrs. KELLY), in the last Congress, and once earlier I want to thank the gentleman from as well as my colleague, the gentleman in the earlier year in this Congress. Pennsylvania (Mr. TOOMEY) once again from Massachusetts (Mr. FRANK) for Unfortunately, the job is not yet for working so closely with me on this kindly yielding time. done. So I am coming again in the hope proposal. I thank Members for consid- Certainly I rise in strong support of that we will finally be able to send this ering, once again, this important legis- this amendment. I want to congratu- language to the President’s desk. lation. I have been working on it for late the gentlewoman from New York The provisions in this amendment many years. I really am pleased to be (Mrs. KELLY) for her leadership on this will go a long way in helping our main able to bring it to the floor. issue for a number of years. street banks and small businesses I ask my colleagues on both sides of This amendment simply is going to which are essential to growth and com- the aisle to join me in strong support help small businesses. It is going to munities and our overall economy. The for this commonsense amendment that help small banks. It is going to help Business Checking Freedom Act con- will help banks and small businesses promote a rational allocation of re- tains a number of important provi- fuel the economy. sources and a free economy. It makes a sions. First, it repeals the 70-year-old Mr. Chairman, I reserve the balance lot of sense. In fact, it is hard to be- law prohibiting banks from paying in- of my time. lieve we ever passed a law that said it

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00040 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.021 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1271 ought to be illegal to pay interest on The Chair will reduce to 5 minutes Boucher Hayes Pence deposits, any kind of deposits. But that the time for any electronic vote after Bradley (NH) Hayworth Peterson (MN) Brady (TX) Hefley Petri is the fact. It is on the books. And I am the first vote in this series. Brown (SC) Hensarling Pickering hoping that today we take a big step in AMENDMENT NO. 4 OFFERED BY MR. WEINER Brown-Waite, Herger Pitts Ginny Hobson the direction of repealing this ban. The CHAIRMAN pro tempore. The Pombo This amendment itself really reflects Burgess Hoekstra Pomeroy pending business is the demand for a Burns Hooley (OR) Porter the confluence of two separate bills, recorded vote on the amendment of- Burr Hostettler Portman one that I had introduced, one that the fered by the gentleman from New York Burton (IN) Houghton Pryce (OH) gentlewoman from New York (Mrs. Buyer Hulshof Putnam (Mr. WEINER) on which further pro- Calvert Hunter KELLY) had introduced. And together Quinn ceedings were postponed and on which Camp Hyde Radanovich they really simply amount to a com- the noes prevailed by voice vote. Cannon Inslee Rahall monsense reduction of long-outdated, Cantor Isakson Ramstad The Clerk will redesignate the Capito Issa Regula unnecessary regulations. Carter Istook amendment. Rehberg Again, the people that are most Case Jenkins The Clerk redesignated the amend- Renzi Castle Johnson (CT) harmed by the current regulation are Reynolds ment. Chabot Johnson (IL) the people operating small businesses, Rogers (AL) RECORDED VOTE Chocola Johnson, E. B. the people who have modest accounts, Coble Johnson, Sam Rogers (KY) the people who have not got sophisti- The CHAIRMAN pro tempore. A re- Cole Jones (NC) Rogers (MI) cated Treasury operations to cir- corded vote has been demanded. Collins Jones (OH) Rohrabacher A recorded vote was ordered. Cooper Kanjorski Ros-Lehtinen cumvent the regulations, and the peo- Cox Keller Ross ple who therefore really need this help. The vote was taken by electronic de- Cramer Kelly Royce It will help small businesses do a vice, and there were—ayes 167, noes 255, Crane Kennedy (MN) Ruppersberger host of things that they could do with not voting 11, as follows: Crenshaw Kind Ryan (WI) Cubin King (IA) Ryun (KS) a little more resources, whether it is [Roll No. 66] Culberson King (NY) Sandlin hiring another employee, whether it is AYES—167 Cunningham Kingston Saxton Davis (FL) Kirk Schrock buying some more equipment, defray- Abercrombie Greenwood Oberstar Davis (TN) Kline Scott (GA) ing other costs, it just makes a lot of Ackerman Grijalva Obey Davis, Tom Knollenberg Sensenbrenner Andrews Gutierrez sense. Olver Deal (GA) Kolbe Sessions Baca Hastings (FL) I should observe that the Federal Re- Ortiz DeLay LaHood Shadegg Baird Hill Otter DeMint Larsen (WA) Shaw serve and the Treasury Department Baldwin Hinchey Owens Diaz-Balart, L. Latham Shays both fully support this legislation for a Ballance Hinojosa Pallone Diaz-Balart, M. LaTourette Sherman Barton (TX) Hoeffel variety of reasons, not the least of Pascrell Dooley (CA) Leach Becerra Holden Sherwood Pastor Doolittle Lewis (CA) which it will make banking services Bell Holt Shuster Payne Dreier Lewis (KY) less expensive, more directly respon- Berkley Honda Simmons Pelosi Duncan Linder Berman Hoyer Skelton sive to customers’ needs, and basically Peterson (PA) Dunn LoBiondo Bishop (NY) Israel Smith (MI) every industry group that has looked Platts Edwards Lucas (KY) Blumenauer Jackson (IL) Smith (TX) Price (NC) Ehlers Lucas (OK) at this legislation supports it as well, Boyd Jackson-Lee Snyder Rangel Emerson Manzullo Brady (PA) (TX) Souder from the U.S. Chamber of Commerce, Reyes English Marshall Brown (OH) Jefferson Stearns the NFIB, America’s Community Bank- Rodriguez Everett McCarthy (MO) Brown, Corrine Kaptur Stenholm Rothman Feeney McCotter ers, to the Association for Financial Capps Kennedy (RI) Sullivan Roybal-Allard Ferguson McCrery Professionals. Pretty much there is a Capuano Kildee Sweeney Rush Flake McHugh Cardin Kilpatrick Tancredo broad consensus that this is just a Ryan (OH) Foley McInnis Cardoza Kleczka Tanner commonsense thing to do. Sabo Forbes McKeon Carson (IN) Lampson Taylor (MS) Sa´ nchez, Linda Fossella Mica So I, again, would like to thank the Carson (OK) Langevin Taylor (NC) T. Franks (AZ) Michaud gentleman from Massachusetts (Mr. Chandler Lantos Terry Sanchez, Loretta Frelinghuysen Miller (FL) Clay Larson (CT) FRANK) for his cooperation, the gentle- Gallegly Miller (MI) Thomas Clyburn Lee Sanders woman from New York (Mrs. KELLY) Garrett (NJ) Miller (NC) Thompson (CA) Conyers Levin Schakowsky Gerlach Miller, Gary Thornberry for her years of service on this issue. I Costello Lewis (GA) Schiff Gibbons Moore Tiahrt Crowley Lipinski Scott (VA) urge my colleagues to adopt this Gilchrest Moran (KS) Toomey Cummings Lofgren Serrano amendment. Gillmor Murphy Turner (OH) Davis (AL) Lowey Simpson Gingrey Musgrave Upton The CHAIRMAN pro tempore. The Davis (CA) Lynch Slaughter Gonzalez Myrick Visclosky question is on the amendment offered Davis (IL) Majette Smith (NJ) Goode Nethercutt Vitter Davis, Jo Ann Maloney Solis by the gentlewoman from New York Goodlatte Neugebauer Walden (OR) DeFazio Markey Spratt (Mrs. KELLY). Gordon Ney Walsh DeGette Matheson Stark Goss Northup Wamp The question was taken; and the Delahunt Matsui Strickland Granger Norwood Weldon (FL) Chairman pro tempore announced that DeLauro McCarthy (NY) Stupak Graves Nunes Weller Deutsch McCollum Tauscher the ayes appeared to have it. Green (WI) Nussle Wicker Dicks McDermott Thompson (MS) Mrs. KELLY. Mr. Chairman, I de- Gutknecht Osborne Wilson (NM) Dingell McGovern Tierney Hall Ose Wilson (SC) mand a recorded vote. Doggett McIntyre Towns Harris Oxley Wolf Doyle McNulty Turner (TX) The CHAIRMAN pro tempore. Pursu- Hart Paul Young (AK) ant to clause 6 of rule XVIII, further Emanuel Meehan Udall (CO) Udall (NM) Hastings (WA) Pearce Young (FL) proceedings on the amendment offered Engel Meek (FL) Eshoo Meeks (NY) Van Hollen NOT VOTING—11 by the gentlewoman from New York Etheridge Menendez Vela´ zquez Blackburn Kucinich Tiberi (Mrs. KELLY) will be postponed. Evans Millender- Waters Farr McDonald Watson Boehner Shimkus Weldon (PA) SEQUENTIAL VOTES POSTPONED IN COMMITTEE Fattah Miller, George Watt Harman Smith (WA) Whitfield OF THE WHOLE Filner Mollohan Waxman John Tauzin The CHAIRMAN pro tempore. Pursu- Ford Moran (VA) Weiner ANNOUNCEMENT BY THE CHAIRMAN PRO Frank (MA) Murtha Wexler ant to clause 6 of rule XVIII, pro- TEMPORE Frost Nadler Woolsey ceedings will now resume on those Gephardt Napolitano Wu The CHAIRMAN pro tempore (Mr. amendments on which further pro- Green (TX) Neal (MA) Wynn SIMMONS) (during the vote). Members ceedings were postponed in the fol- NOES—255 are notified there are 2 minutes re- lowing order: amendment number 4 of- maining in this vote. fered by the gentleman from New York Aderholt Bartlett (MD) Bishop (UT) Akin Bass Blunt b 1340 (Mr. WEINER); amendment number 5 of- Alexander Beauprez Boehlert fered by the gentlewoman from Texas Allen Bereuter Bonilla Ms. EDDIE BERNICE JOHNSON of (Ms. JACKSON-LEE); and amendment Bachus Berry Bonner Texas and Messrs. VITTER, BERRY, Baker Biggert Bono number 6 offered by the gentlewoman Ballenger Bilirakis Boozman CANNON, PETRI, POMEROY and ISSA from New York (Mrs. KELLY). Barrett (SC) Bishop (GA) Boswell changed their vote from ‘‘aye’’ to ‘‘no.’’

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00041 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.059 H18PT1 H1272 CONGRESSIONAL RECORD — HOUSE March 18, 2004 Mr. OWENS and Mr. PALLONE Schakowsky Strickland Vela´ zquez ANNOUNCEMENT BY THE CHAIRMAN PRO changed their vote from ‘‘no’’ to ‘‘aye.’’ Schiff Stupak Visclosky TEMPORE Scott (GA) Tauscher Wamp So the amendment was rejected. Scott (VA) Taylor (MS) Waters The CHAIRMAN pro tempore (Mr. The result of the vote was announced Serrano Thompson (CA) Watson SWEENEY) (during the vote). Members as above recorded. Shays Thompson (MS) Watt are advised 2 minutes remain in this Sherman Tierney Waxman ANNOUNCEMENT BY THE CHAIRMAN PRO vote. Skelton Towns Weiner TEMPORE Slaughter Turner (TX) Wexler b 1348 The CHAIRMAN pro tempore. Pursu- Snyder Udall (CO) Woolsey ant to clause 6 of rule XV, the remain- Solis Udall (NM) Wu Mr. WAMP and Mr. DUNCAN Spratt Upton Wynn changed their vote from ‘‘no’’ to ‘‘aye.’’ der of votes in this series will be con- Stark Van Hollen ducted as 5-minute votes. So the amendment was rejected. NOES—225 The result of the vote was announced AMENDMENT NO. 4 OFFERED BY MS. JACKSON- as above recorded. LEE OF TEXAS Akin Gibbons Norwood The CHAIRMAN pro tempore. The Bachus Gilchrest Nunes AMENDMENT NO. 6 OFFERED BY MRS. KELLY Baker Gillmor pending business is the demand for a Nussle The CHAIRMAN pro tempore. The Ballenger Gingrey Osborne pending business is the demand for a recorded vote on amendment No. 4 of- Barrett (SC) Goode Ose fered by the gentlewoman from Texas Bartlett (MD) Goodlatte Otter recorded vote on the amendment of- Barton (TX) Gordon ACKSON EE Oxley fered by the gentlewoman from New (Ms. J -L ) on which further Bass Goss proceedings were postponed and on Paul York (Mrs. KELLY) on which further Beauprez Granger Pearce proceedings were postponed and on which the noes prevailed by voice vote. Biggert Graves Peterson (MN) The Clerk will redesignate the Bilirakis Green (WI) Peterson (PA) which the ayes prevailed by voice vote. Bishop (UT) Greenwood amendment. Petri The Clerk will redesignate the Blumenauer Gutknecht Pickering amendment. The Clerk redesignated the amend- Blunt Hall Pitts The Clerk redesignated the amend- ment. Boehlert Harris Platts Bonilla Hart Pombo ment. RECORDED VOTE Bonner Hastings (WA) Portman RECORDED VOTE Bono Hayes The CHAIRMAN pro tempore. A re- Pryce (OH) Boozman Hayworth The CHAIRMAN pro tempore. A re- corded vote has been demanded. Putnam Boucher Hefley corded vote has been demanded. A recorded vote was ordered. Quinn Boyd Hensarling A recorded vote was ordered. The CHAIRMAN pro tempore. This Bradley (NH) Herger Radanovich Ramstad The CHAIRMAN pro tempore. This will be a 5-minute vote. Brady (TX) Hobson Brown (SC) Hostettler Regula will be a 5-minute vote. The vote was taken by electronic de- Rehberg Brown-Waite, Houghton The vote was taken by electronic de- vice, and there were—ayes 194, noes 225, Ginny Hulshof Renzi vice, and there were—ayes 418, noes 0, not voting 14, as follows: Burgess Hyde Reynolds Burns Isakson Rogers (AL) not voting 15, as follows: [Roll No. 67] Rogers (KY) Burr Issa [Roll No. 68] AYES—194 Burton (IN) Istook Rogers (MI) Buyer Jenkins Rohrabacher AYES—418 Abercrombie Engel Majette Calvert Johnson (CT) Ros-Lehtinen Abercrombie Buyer Doggett Ackerman Eshoo Matheson Cannon Johnson (IL) Royce Ackerman Calvert Dooley (CA) Aderholt Etheridge Matsui Cantor Johnson, Sam Ruppersberger Aderholt Camp Doolittle Alexander Evans McCarthy (MO) Capito Keller Ryan (WI) Akin Cannon Doyle Allen Farr McCarthy (NY) Carter Kelly Ryun (KS) Alexander Cantor Dreier Andrews Fattah McCollum Castle Kennedy (MN) Sandlin Allen Capito Duncan Baca Filner McDermott Chabot King (IA) Saxton Andrews Capps Dunn Baird Ford McGovern Chocola King (NY) Schrock Baca Capuano Edwards Baldwin Frank (MA) McIntyre Coble Kingston Sensenbrenner Bachus Cardin Ehlers Ballance Frost McNulty Cole Kirk Sessions Baird Cardoza Emanuel Becerra Gephardt Meehan Collins Kleczka Shadegg Baker Carson (IN) Emerson Bell Gonzalez Meek (FL) Cooper Kline Shaw Baldwin Carson (OK) Engel Bereuter Green (TX) Meeks (NY) Cox Knollenberg Sherwood Ballance Case English Berkley Grijalva Menendez Cramer Kolbe Ballenger Castle Eshoo Berman Gutierrez Millender- Shuster Crane LaHood Barrett (SC) Chabot Etheridge Berry Hastings (FL) McDonald Simmons Crenshaw Latham Bartlett (MD) Chandler Evans Bishop (GA) Hill Miller (NC) Simpson Cubin LaTourette Barton (TX) Chocola Everett Bishop (NY) Hinchey Miller, George Smith (MI) Culberson Lewis (KY) Bass Clay Farr Boswell Hinojosa Mollohan Smith (NJ) Cunningham Linder Beauprez Clyburn Fattah Brady (PA) Hoeffel Moore Smith (TX) Davis (TN) Lipinski Becerra Coble Feeney Brown (OH) Hoekstra Moran (VA) Souder Davis, Jo Ann LoBiondo Bell Cole Ferguson Brown, Corrine Holden Murtha Stearns Davis, Tom Lucas (KY) Bereuter Collins Filner Camp Holt Nadler Stenholm Deal (GA) Lucas (OK) Berkley Cooper Flake Capps Honda Napolitano Sullivan DeLay Maloney Berman Costello Foley Capuano Hooley (OR) Neal (MA) Sweeney DeMint Manzullo Berry Cox Forbes Cardin Hoyer Oberstar Tancredo Diaz-Balart, L. Markey Biggert Cramer Ford Cardoza Inslee Obey Tanner Diaz-Balart, M. Marshall Bilirakis Crane Fossella Carson (IN) Israel Olver Taylor (NC) Dooley (CA) McCotter Bishop (GA) Crenshaw Frank (MA) Carson (OK) Jackson (IL) Ortiz Terry Doolittle McCrery Bishop (NY) Crowley Franks (AZ) Case Jackson-Lee Owens Thomas Dreier McHugh Bishop (UT) Cubin Frelinghuysen Chandler (TX) Pallone Thornberry Dunn McInnis Blumenauer Culberson Frost Clay Jefferson Pascrell Tiahrt Emerson McKeon Blunt Cummings Gallegly Clyburn Johnson, E. B. Pastor Toomey English Mica Boehlert Cunningham Garrett (NJ) Costello Jones (NC) Payne Turner (OH) Everett Michaud Bonilla Davis (AL) Gephardt Crowley Jones (OH) Pelosi Feeney Miller (FL) Vitter Bonner Davis (CA) Gerlach Cummings Kanjorski Pence Ferguson Miller (MI) Walden (OR) Bono Davis (FL) Gibbons Davis (AL) Kaptur Pomeroy Flake Miller, Gary Walsh Boozman Davis (IL) Gilchrest Davis (CA) Kennedy (RI) Porter Foley Moran (KS) Weldon (FL) Boswell Davis (TN) Gillmor Davis (FL) Kildee Price (NC) Forbes Murphy Weller Boucher Davis, Jo Ann Gingrey Davis (IL) Kilpatrick Rahall Fossella Musgrave Wicker Boyd Davis, Tom Gonzalez DeFazio Kind Rangel Franks (AZ) Myrick Wilson (NM) Bradley (NH) Deal (GA) Goode DeGette Lampson Reyes Frelinghuysen Nethercutt Wilson (SC) Brady (PA) DeFazio Goodlatte Delahunt Langevin Rodriguez Gallegly Neugebauer Wolf Brady (TX) DeGette Gordon DeLauro Lantos Ross Garrett (NJ) Ney Young (AK) Brown (OH) Delahunt Granger Deutsch Larsen (WA) Rothman Gerlach Northup Young (FL) Brown (SC) DeLauro Graves Dicks Larson (CT) Roybal-Allard Brown, Corrine DeLay Green (TX) Dingell Leach Rush NOT VOTING—14 Brown-Waite, DeMint Green (WI) Doggett Lee Ryan (OH) Ginny Deutsch Greenwood Doyle Levin Sabo Blackburn John Tauzin Burgess Diaz-Balart, L. Grijalva Duncan Lewis (GA) Sa´ nchez, Linda Boehner Kucinich Tiberi Burns Diaz-Balart, M. Gutierrez Edwards Lofgren T. Conyers Lewis (CA) Weldon (PA) Burr Dicks Gutknecht Ehlers Lowey Sanchez, Loretta Harman Shimkus Whitfield Burton (IN) Dingell Hall Emanuel Lynch Sanders Hunter Smith (WA)

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00042 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.061 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1273

Harris McCollum Roybal-Allard ANNOUNCEMENT BY THE CHAIRMAN PRO Bonner Gibbons McCotter Hart McCotter Royce TEMPORE Bono Gillmor McCrery Hastings (FL) McCrery Ruppersberger Boozman Gingrey McGovern Hastings (WA) McDermott Rush The CHAIRMAN pro tempore (during Boucher Gonzalez McHugh Hayes McGovern Ryan (OH) the vote). Members are advised 2 min- Boyd Goode McInnis Hayworth McHugh Ryan (WI) utes remain in this vote. Bradley (NH) Goodlatte McIntyre Hefley McInnis Ryun (KS) Brady (PA) Gordon McKeon Hensarling McIntyre Sabo Brady (TX) Goss McNulty b 1356 Brown (OH) Granger Meehan Herger McKeon Sa´ nchez, Linda Brown (SC) Graves Meek (FL) Hill McNulty T. So the amendment was agreed to. Brown, Corrine Green (TX) Meeks (NY) Hinchey Meehan Sanchez, Loretta The result of the vote was announced Brown-Waite, Green (WI) Menendez Hinojosa Meek (FL) Sanders Ginny Greenwood Mica Hobson Meeks (NY) as above recorded. Sandlin Burgess Grijalva Michaud Hoeffel Menendez The CHAIRMAN pro tempore. The Saxton Burns Gutierrez Millender- Hoekstra Mica Schakowsky question is on the committee amend- Burr Gutknecht McDonald Holden Michaud Schiff ment in the nature of a substitute, as Burton (IN) Hall Miller (FL) Holt Millender- Schrock amended. Buyer Harris Miller (MI) Honda McDonald Scott (GA) Calvert Hart Miller (NC) Hooley (OR) Miller (FL) Scott (VA) The committee amendment in the Camp Hastings (FL) Miller, Gary Hostettler Miller (MI) Sensenbrenner nature of a substitute, as amended, was Cannon Hastings (WA) Miller, George Houghton Miller (NC) Serrano agreed to. Cantor Hayes Mollohan Hoyer Miller, Gary Sessions The CHAIRMAN pro tempore. Under Capito Hayworth Moore Hulshof Miller, George Capps Hefley Moran (KS) Shadegg the rule, the Committee rises. Hunter Mollohan Shaw Capuano Hensarling Moran (VA) Hyde Moore Shays Accordingly, the Committee rose; Cardin Herger Murphy Inslee Moran (KS) Sherman and the Speaker pro tempore (Mr. Cardoza Hill Murtha Carson (IN) Isakson Moran (VA) Sherwood Hinojosa Myrick SIMPSON) having assumed the chair, Carson (OK) Hobson Nadler Israel Murphy Shuster Mr. SWEENEY, Chairman pro tempore of Carter Hoeffel Napolitano Issa Murtha Simmons Case Hoekstra Neal (MA) Istook Musgrave Simpson the Committee of the Whole House on Jackson (IL) Myrick the State of the Union, reported that Castle Holden Nethercutt Skelton Chabot Holt Neugebauer Jackson-Lee Nadler Slaughter that Committee, having had under con- (TX) Napolitano Chandler Honda Ney Smith (MI) sideration the bill (H.R. 1375) to pro- Chocola Hooley (OR) Northup Jefferson Neal (MA) Smith (TX) Jenkins Nethercutt vide regulatory relief and improve pro- Clay Hostettler Norwood Snyder Clyburn Houghton Nunes Johnson (CT) Neugebauer Solis ductivity for insured depository insti- Coble Hoyer Oberstar Johnson (IL) Ney Souder tutions, and for other purposes, pursu- Cole Hulshof Obey Johnson, E. B. Northup Spratt Collins Hunter Olver Johnson, Sam Norwood ant to House Resolution 566, he re- Stark ported the bill back to the House with Costello Hyde Ortiz Jones (NC) Nunes Stearns Cox Inslee Ose Jones (OH) Nussle Stenholm an amendment adopted by the Com- Cramer Isakson Otter Kanjorski Oberstar Strickland mittee of the Whole. Crane Israel Owens Kaptur Obey Stupak The SPEAKER pro tempore. Under Crenshaw Issa Oxley Keller Olver Sullivan the rule, the previous question is or- Cubin Istook Pallone Kelly Ortiz Sweeney Culberson Jackson (IL) Pascrell Kennedy (MN) Osborne Tancredo dered. Cummings Jackson-Lee Pastor Kennedy (RI) Ose Tanner Is a separate vote demanded on any Cunningham (TX) Paul Kildee Otter Tauscher amendment to the committee amend- Davis (AL) Jefferson Payne Kilpatrick Owens Taylor (MS) Davis (CA) Jenkins Pearce Kind Oxley ment in the nature of a substitute Davis (FL) Taylor (NC) Johnson (CT) Pelosi King (IA) Pallone adopted by the Committee of the Davis (IL) Johnson (IL) Pence Terry King (NY) Pascrell Davis (TN) Johnson, E. B. Peterson (MN) Thomas Whole? If not, the question is on the Kingston Pastor Davis, Jo Ann Johnson, Sam Peterson (PA) Thompson (CA) amendment. Kirk Paul Davis, Tom Jones (NC) Petri Thompson (MS) Kleczka Payne The amendment was agreed to. Deal (GA) Jones (OH) Pickering Thornberry Kline Pearce The SPEAKER pro tempore. The DeGette Kaptur Pitts Tiahrt Knollenberg Pelosi question is on the engrossment and DeLauro Keller Platts Tierney DeLay Kelly Pombo Kolbe Pence third reading of the bill. LaHood Peterson (MN) Toomey DeMint Kennedy (MN) Pomeroy Lampson Peterson (PA) Towns The bill was ordered to be engrossed Deutsch Kennedy (RI) Porter Langevin Petri Turner (OH) and read a third time, and was read the Diaz-Balart, L. Kildee Portman Lantos Pickering Turner (TX) Diaz-Balart, M. Kilpatrick Price (NC) Udall (CO) third time. Dicks Kind Pryce (OH) Larsen (WA) Pitts The SPEAKER pro tempore. The Larson (CT) Platts Udall (NM) Dingell King (NY) Putnam Latham Pombo Upton question is on the passage of the bill. Doggett Kingston Quinn LaTourette Pomeroy Van Hollen The question was taken; and the Dooley (CA) Kirk Radanovich Leach Porter Vela´ zquez Doolittle Kleczka Rahall Speaker pro tempore announced that Doyle Kline Ramstad Lee Portman Visclosky the ayes appeared to have it. Dreier Knollenberg Rangel Levin Price (NC) Vitter Duncan Kolbe Regula Lewis (CA) Pryce (OH) Walden (OR) Mr. BACHUS. Mr. Speaker, on that I Edwards LaHood Rehberg Lewis (GA) Putnam Walsh demand the yeas and nays. Ehlers Lampson Renzi Lewis (KY) Quinn Wamp The yeas and nays were ordered. Emanuel Langevin Reyes Linder Radanovich Waters Watson The SPEAKER pro tempore. Pursu- Emerson Lantos Reynolds Lipinski Rahall Engel Larsen (WA) Rodriguez Watt ant to clause 8 of rule XX, this 15- LoBiondo Ramstad English Larson (CT) Rogers (AL) Waxman Lofgren Rangel minute vote on final passage will be Eshoo LaTourette Rogers (KY) Weiner Lowey Regula followed by two 5-minute votes on the Etheridge Lee Rogers (MI) Weldon (FL) Lucas (KY) Rehberg motions to suspend the rules that were Everett Levin Rohrabacher Lucas (OK) Renzi Weller Farr Lewis (CA) Ros-Lehtinen Lynch Reyes Wexler debated yesterday. Fattah Lewis (KY) Ross Majette Reynolds Wicker The vote was taken by electronic de- Feeney Linder Rothman Maloney Rodriguez Wilson (NM) vice, and there were—yeas 392, nays 25, Ferguson Lipinski Roybal-Allard Manzullo Rogers (AL) Wilson (SC) not voting 16, as follows: Filner LoBiondo Ruppersberger Markey Rogers (KY) Wolf Flake Lofgren Rush Marshall Rogers (MI) Woolsey [Roll No. 69] Foley Lowey Ryan (OH) Matheson Rohrabacher Wu YEAS—392 Forbes Lucas (KY) Ryan (WI) Matsui Ros-Lehtinen Wynn Ford Lucas (OK) Ryun (KS) McCarthy (MO) Ross Young (AK) Ackerman Ballance Berman Fossella Lynch Sabo McCarthy (NY) Rothman Young (FL) Akin Ballenger Berry Frank (MA) Majette Sa´ nchez, Linda Alexander Barrett (SC) Biggert Franks (AZ) Maloney T. NOT VOTING—15 Allen Bartlett (MD) Bilirakis Frelinghuysen Manzullo Sanchez, Loretta Andrews Barton (TX) Bishop (GA) Frost Marshall Sandlin Blackburn Harman Smith (WA) Baca Bass Bishop (NY) Gallegly Matsui Saxton Boehner John Tauzin Bachus Beauprez Blumenauer Garrett (NJ) McCarthy (MO) Schakowsky Carter Kucinich Tiberi Baird Becerra Blunt Gephardt McCarthy (NY) Schiff Conyers Shimkus Weldon (PA) Baker Bell Boehlert Gerlach McCollum Schrock Goss Smith (NJ) Whitfield Baldwin Berkley Bonilla

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00043 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.022 H18PT1 H1274 CONGRESSIONAL RECORD — HOUSE March 18, 2004 Scott (GA) Stenholm Vela´ zquez COUNTER-TERRORIST AND NARCO- Lantos Obey Shadegg Scott (VA) Strickland Visclosky TERRORIST REWARDS PROGRAM Larsen (WA) Olver Shaw Sensenbrenner Stupak Vitter Larson (CT) Ortiz Shays Serrano Sullivan Walden (OR) ACT Latham Osborne Sherman Sessions Sweeney Walsh The SPEAKER pro tempore. The un- LaTourette Ose Sherwood Shadegg Tancredo Wamp Leach Otter Shuster Shaw Tanner Waters finished business is the question of sus- Lee Owens Simmons Shays Tauscher Watson pending the rules and passing the bill, Levin Oxley Simpson Sherman Taylor (NC) Watt H.R. 3782, as amended. Lewis (CA) Pallone Skelton Sherwood Thomas Waxman Lewis (GA) Pascrell The Clerk read the title of the bill. Slaughter Shuster Thompson (CA) Weiner Lewis (KY) Pastor Smith (MI) Simmons Thompson (MS) Weldon (FL) Linder Paul The SPEAKER pro tempore. The Smith (NJ) Simpson Thornberry Weller Lipinski Payne Smith (TX) Skelton Tiahrt Wexler question is on the motion offered by LoBiondo Pearce Snyder Smith (MI) Tierney Wicker the gentlewoman from Florida (Ms. Lofgren Pelosi Solis Smith (NJ) Toomey Wilson (NM) Lowey Pence HARRIS) that the House suspend the Souder Smith (TX) Towns Wilson (SC) rules and pass the bill, H.R. 3782, as Lucas (KY) Peterson (MN) Snyder Turner (OH) Wolf Lucas (OK) Peterson (PA) Spratt Solis Turner (TX) Woolsey amended, on which the yeas and nays Lynch Petri Stark Souder Udall (CO) Wu are ordered. Majette Pickering Stearns Stenholm Spratt Udall (NM) Wynn This will be a 5-minute vote. Maloney Pitts Stark Upton Young (AK) Manzullo Platts Strickland Stearns Van Hollen Young (FL) The vote was taken by electronic de- Marshall Pombo Stupak vice, and there were—yeas 414, nays 0, Matheson Pomeroy Sullivan NAYS—25 not voting 19, as follows: Matsui Porter Sweeney Bereuter Kanjorski Nussle McCarthy (MO) Portman Tancredo Bishop (UT) King (IA) Osborne [Roll No. 70] McCarthy (NY) Price (NC) Tanner Boswell Latham Royce YEAS—414 McCollum Pryce (OH) Tauscher Cooper Leach McCotter Putnam Taylor (MS) Sanders Abercrombie DeFazio Lewis (GA) Coble Goodlatte McCrery Quinn Taylor (NC) Slaughter Ackerman Delahunt Markey Cole Gordon McDermott Radanovich Thomas Taylor (MS) Aderholt Evans Matheson Collins Goss McGovern Rahall Thompson (CA) Terry Akin Gilchrest McDermott Cooper Granger McHugh Ramstad Thompson (MS) Alexander Hinchey Musgrave Costello Graves McInnis Rangel Thornberry Allen Cramer Green (TX) McIntyre Regula Tiahrt NOT VOTING—16 Andrews Crane Green (WI) McKeon Rehberg Tierney Baca Crenshaw Greenwood Abercrombie Dunn Tauzin McNulty Renzi Toomey Bachus Crowley Grijalva Aderholt Harman Meehan Reyes Towns Tiberi Baird Cubin Gutierrez Blackburn John Meek (FL) Reynolds Turner (OH) Weldon (PA) Baker Culberson Gutknecht Boehner Kucinich Meeks (NY) Rodriguez Turner (TX) Whitfield Baldwin Cummings Hall Conyers Shimkus Menendez Rogers (AL) Udall (CO) Ballance Cunningham Harris Crowley Smith (WA) Mica Rogers (KY) Udall (NM) Ballenger Davis (AL) Hart Michaud Rogers (MI) Upton ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE Barrett (SC) Davis (CA) Hastings (FL) Millender- Rohrabacher Bartlett (MD) Davis (FL) Hastings (WA) Van Hollen The SPEAKER pro tempore (Mr. McDonald Ros-Lehtinen Vela´ zquez Barton (TX) Davis (IL) Hayes Miller (FL) Ross SIMPSON) (during the vote). Members Bass Davis (TN) Hayworth Visclosky Miller (MI) Rothman Vitter Beauprez Davis, Jo Ann Hefley Miller (NC) Roybal-Allard are advised that 2 minutes remain in Walden (OR) Becerra Davis, Tom Hensarling Miller, Gary Royce this vote. Walsh Bell DeFazio Herger Miller, George Ruppersberger Wamp Bereuter DeGette Hill Mollohan Rush Waters b 1414 Berkley Delahunt Hinojosa Moore Ryan (OH) Watson Berman DeLauro Hobson Moran (KS) Ryan (WI) Mr. EVANS changed his vote from Berry DeLay Hoeffel Moran (VA) Ryun (KS) Watt ‘‘yea’’ to ‘‘nay.’’ Biggert DeMint Hoekstra Murphy Sabo Waxman Weiner So the bill was passed. Bilirakis Deutsch Holden Murtha Sa´ nchez, Linda Bishop (GA) Diaz-Balart, L. Holt Musgrave T. Weldon (FL) The result of the vote was announced Bishop (NY) Diaz-Balart, M. Honda Myrick Sanchez, Loretta Weldon (PA) as above recorded. Bishop (UT) Dicks Hooley (OR) Nadler Sanders Weller A motion to reconsider was laid on Blumenauer Dingell Houghton Napolitano Sandlin Wexler Blunt Doggett Hoyer Wicker the table. Neal (MA) Saxton Boehlert Dooley (CA) Hulshof Nethercutt Schakowsky Wilson (NM) Bonilla Doolittle Hunter Neugebauer Schiff Wilson (SC) f Bonner Doyle Hyde Ney Schrock Wolf Bono Dreier Inslee Northup Scott (GA) Woolsey Boozman Duncan Isakson Norwood Scott (VA) Wu AUTHORIZING THE CLERK TO Boswell Dunn Israel Nunes Sensenbrenner Wynn MAKE CORRECTIONS IN EN- Boucher Edwards Issa Nussle Serrano Young (AK) GROSSMENT OF H.R. 1375, FINAN- Boyd Ehlers Istook Oberstar Sessions Young (FL) Bradley (NH) Emanuel Jackson (IL) CIAL SERVICES REGULATORY Brady (PA) Emerson Jackson-Lee NOT VOTING—19 RELIEF ACT OF 2003 Brady (TX) Engel (TX) Brown (OH) English Jefferson Blackburn Harman Smith (WA) Mr. OXLEY. Mr. Speaker, I ask unan- Brown (SC) Eshoo Jenkins Boehner Hinchey Tauzin imous consent that in the engrossment Brown, Corrine Etheridge Johnson (CT) Carson (OK) Hostettler Terry of H.R. 1375, the Clerk be authorized to Brown-Waite, Evans Johnson (IL) Conyers John Tiberi Ginny Everett Johnson, E. B. Cox Kucinich Whitfield correct section numbers, punctuation, Burgess Farr Johnson, Sam Deal (GA) Markey and cross-references and to make such Burns Fattah Jones (NC) Fossella Shimkus other technical and conforming Burr Feeney Jones (OH) ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE changes as may be necessary to accu- Burton (IN) Ferguson Kanjorski Buyer Filner Kaptur rately reflect the actions of the House. Calvert Flake Keller The SPEAKER pro tempore (Mr. The SPEAKER pro tempore. Is there Camp Foley Kelly SIMPSON) (during the vote). Members objection to the request of the gen- Cannon Forbes Kennedy (MN) are advised that 2 minutes remain in Cantor Ford Kennedy (RI) tleman from Ohio? Capito Frank (MA) Kildee this vote. There was no objection. Capps Franks (AZ) Kilpatrick Capuano Frelinghuysen Kind b 1422 f Cardin Frost King (IA) Cardoza Gallegly King (NY) Carson (IN) Garrett (NJ) Kingston So (two thirds having voted in favor ANNOUNCEMENT BY THE SPEAKER Carter Gephardt Kirk thereof) the rules were suspended and PRO TEMPORE Case Gerlach Kleczka the bill, as amended, was passed. Castle Gibbons Kline The SPEAKER pro tempore. Without Chabot Gilchrest Knollenberg The result of the vote was announced objection, the next votes will be 5- Chandler Gillmor Kolbe as above recorded. Chocola Gingrey LaHood minute votes. Clay Gonzalez Lampson A motion to reconsider was laid on There was no objection. Clyburn Goode Langevin the table.

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00044 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.027 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1275 RECOGNIZING MORE THAN 5 DEC- King (NY) Neal (MA) Schrock LEGISLATIVE PROGRAM Kingston Nethercutt Scott (GA) ADES OF STRATEGIC PARTNER- Kirk Neugebauer Scott (VA) (Mr. HOYER asked and was given SHIP BETWEEN THE UNITED Kleczka Ney Sensenbrenner permission to address the House for 1 STATES AND THE MARSHALL IS- Kline Northup Serrano minute.) LANDS Knollenberg Norwood Sessions Kolbe Nunes Shadegg Mr. HOYER. Mr. Speaker, I yield to The SPEAKER pro tempore. The un- LaHood Nussle Shaw the gentleman from Texas (Mr. finished business is the question of sus- Lampson Oberstar Shays DELAY), the distinguished majority Langevin Obey Sherman leader, for the purpose of inquiring of pending the rules and agreeing to the Lantos Olver Sherwood concurrent resolution, H. Con. Res. 364. Larsen (WA) Ortiz Shuster the majority leader the schedule for The Clerk read the title of the con- Larson (CT) Osborne Simmons the coming week. Latham Ose Simpson Mr. DELAY. Mr. Speaker, I thank the current resolution. LaTourette Otter Skelton gentleman from Maryland, the distin- The SPEAKER pro tempore. The Leach Owens Slaughter guished whip, for yielding to me, and I question is on the motion offered by Lee Oxley Smith (MI) Levin Pallone Smith (NJ) will try to be brief as I am sure my the gentlewoman from Florida (Ms. Lewis (CA) Pascrell Smith (TX) friend is anxious to get back to watch HARRIS) that the House suspend the Lewis (GA) Pastor Snyder the end of the Terps game. rules and agree to the concurrent reso- Lewis (KY) Paul Solis Linder Payne Souder Mr. HOYER. He is right. lution, H. Con. Res. 364, on which the Lipinski Pearce Spratt Mr. DELAY. Mr. Speaker, the House yeas and nays are ordered. LoBiondo Pelosi Stearns will convene on Tuesday at 12:30 p.m. This will be a 5-minute vote. Lofgren Pence Stenholm for morning hour and 2 p.m. for legisla- Lowey Peterson (MN) Strickland The vote was taken by electronic de- Lucas (KY) Peterson (PA) Stupak tive business. We will consider several vice, and there were—yeas 408, nays 0, Lucas (OK) Petri Sullivan measures under suspension of the rules. not voting 25, as follows: Lynch Pickering Sweeney A final list of those bills will be sent to Majette Pitts Tancredo Members’ offices by the end of this [Roll No. 71] Maloney Platts Tanner week. Any votes called on these meas- YEAS—408 Manzullo Pombo Tauscher Markey Pomeroy Taylor (MS) ures will be rolled until 6:30 p.m. on Abercrombie Chabot Gephardt Marshall Porter Taylor (NC) Ackerman Chandler Gerlach Tuesday. Matheson Portman Thomas On Wednesday and Thursday, the Aderholt Chocola Gibbons Matsui Price (NC) Thompson (CA) Akin Clay Gilchrest McCarthy (MO) Pryce (OH) Thompson (MS) House will convene at 10 a.m. We plan Alexander Clyburn Gillmor McCarthy (NY) Putnam Thornberry to consider the budget resolution for Allen Coble Gingrey McCollum Quinn Tiahrt fiscal year 2005. We would hope to com- Andrews Cole Gonzalez McCotter Rahall Tierney Baca Collins Goode McCrery Ramstad Towns plete several hours of general debate on Bachus Cooper Goodlatte McDermott Rangel Turner (OH) Wednesday before moving into the Baird Costello Gordon McGovern Regula Turner (TX) amendment process on Thursday. Baker Cox Goss McHugh Rehberg Udall (CO) And, finally, I would like to note for Baldwin Cramer Granger McInnis Renzi Udall (NM) Ballance Crane Graves McIntyre Reyes Upton all the Members, and they should take Ballenger Crenshaw Green (TX) McKeon Reynolds Van Hollen note, that we are making a change to Barrett (SC) Crowley Green (WI) McNulty Rodriguez Visclosky the schedule that was sent to offices at Bartlett (MD) Cubin Greenwood Meehan Rogers (AL) Vitter the beginning of the year. We do not Barton (TX) Cummings Grijalva Meek (FL) Rogers (KY) Walden (OR) Bass Cunningham Gutierrez Meeks (NY) Rohrabacher Walsh plan to have votes next Friday, March Beauprez Davis (CA) Gutknecht Menendez Ros-Lehtinen Wamp 26. Becerra Davis (IL) Hall Mica Ross Waters I thank the gentleman for yielding Bell Davis (TN) Harris Michaud Rothman Watson and would be happy to answer any Bereuter Davis, Jo Ann Hart Millender- Roybal-Allard Watt Berkley Davis, Tom Hastings (FL) McDonald Royce Waxman questions. Berman DeFazio Hastings (WA) Miller (FL) Ruppersberger Weiner Mr. HOYER. Mr. Speaker, I thank Berry DeGette Hayes Miller (MI) Rush Weldon (FL) the gentleman for the information. Biggert Delahunt Hayworth Miller (NC) Ryan (OH) Weldon (PA) There are, of course, so many things Bilirakis DeLauro Hefley Miller, Gary Ryan (WI) Weller Bishop (GA) DeLay Hensarling Mollohan Ryun (KS) Wexler which disappoint us when the majority Bishop (NY) DeMint Herger Moore Sabo Wicker leader announces them; but that is not Bishop (UT) Deutsch Hill Moran (KS) Sa´ nchez, Linda Wilson (NM) one of them, I assure him. Blumenauer Diaz-Balart, L. Hinojosa Moran (VA) T. Wilson (SC) Blunt Diaz-Balart, M. Hobson Murphy Sanchez, Loretta Wolf I appreciate the majority leader’s ad- Boehlert Dicks Hoeffel Murtha Sanders Woolsey vice that Wednesday and Thursday we Bonilla Dingell Hoekstra Musgrave Sandlin Wu will be considering the budget, obvi- Bonner Doggett Holden Myrick Saxton Wynn ously one of the most important policy Bono Dooley (CA) Holt Nadler Schakowsky Young (AK) Boozman Doolittle Honda Napolitano Schiff Young (FL) documents that we consider. And it ap- Boswell Doyle Hooley (OR) pears from his announcement that Boucher Dreier Houghton NOT VOTING—25 there will be substantial time on Boyd Duncan Hoyer Blackburn Hostettler Smith (WA) Bradley (NH) Dunn Hulshof Wednesday and substantial time on Boehner Jackson-Lee Stark Brady (PA) Edwards Hunter Conyers (TX) Tauzin Thursday, I presume, for a full and fair Brady (TX) Ehlers Hyde Culberson John Terry debate on the underlying proposal that Brown (OH) Emanuel Inslee Davis (AL) Kucinich Brown (SC) Emerson Isakson Tiberi will be reported out of the committee, Davis (FL) Miller, George Toomey Brown, Corrine Engel Israel Deal (GA) Radanovich as well as such substitutes as may be Brown-Waite, English Issa Vela´ zquez made in order. Is that correct? Harman Rogers (MI) Whitfield Ginny Eshoo Istook Hinchey Shimkus Mr. DELAY. Mr. Speaker, will the Burgess Etheridge Jackson (IL) Burns Evans Jefferson ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE gentleman yield? Mr. HOYER. I yield to the gentleman Burr Everett Jenkins The SPEAKER pro tempore (during Burton (IN) Farr Johnson (CT) from Texas. the vote). Members are advised that 2 Buyer Fattah Johnson (IL) Mr. DELAY. Mr. Speaker, I really an- Calvert Feeney Johnson, E. B. minutes remain in this vote. Camp Ferguson Johnson, Sam ticipate next week’s process to resem- Cannon Filner Jones (NC) b 1428 ble years past. I do not want to pre- Cantor Flake Jones (OH) suppose what the Committee on Rules Capito Foley Kanjorski So (two thirds having voted in favor would do, but I would think that we Capps Forbes Kaptur thereof) the rules were suspended and would likely have an extended general Capuano Ford Keller the concurrent resolution was agreed Cardin Fossella Kelly debate in the neighborhood of 4 or 5 Cardoza Frank (MA) Kennedy (MN) to. hours. Carson (IN) Franks (AZ) Kennedy (RI) The result of the vote was announced Carson (OK) Frelinghuysen Kildee as above recorded. b 1430 Carter Frost Kilpatrick Case Gallegly Kind A motion to reconsider was laid on In addition, the Committee on Rules Castle Garrett (NJ) King (IA) the table. could and will likely make in order

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00045 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.071 H18PT1 H1276 CONGRESSIONAL RECORD — HOUSE March 18, 2004 multiple substitutes, and assuming we are doing. We can say we are doing sure that their substitute amendments that they are legitimate budget resolu- something, but without enforcement are properly drafted and scored, and tions, and we will have a very vigorous mechanisms to make sure that, in fact, should check with the Office of the debate. we are controlling spending, control- Parliamentarian to be certain that Mr. HOYER. Mr. Speaker, I thank ling revenues, controlling entitle- their amendments comply with the the gentleman. I think that is very im- ments, we do not have really a budget Rules of the House. portant for the House and for the that is meaningful and enforceable. So American people, and we look forward we are hopeful that that will come rel- f to that discussion and the substitutes. atively soon. As the gentleman knows, we will have We would like to do it contempora- ADJOURNMENT TO MONDAY, the gentleman from South Carolina neously, but I understand what the MARCH 22, 2004 (Mr. SPRATT), our ranking member, gentleman is saying; the Committee on Mr. DELAY. Mr. Speaker, I ask unan- who will have a substitute. I expect the Rules wants to consider that. The Sen- imous consent that when the House ad- Black Caucus to have a substitute, and ate I think considered that contem- journs today, it adjourns to meet at perhaps there will be some other sub- poraneously and, of course, there are noon on Monday, March 22, 2004. stitutes as well. Certainly the Blue some in this country who have made it The SPEAKER pro tempore (Mr. Dogs will have a substitute, all of very clear that an enforcement mecha- SIMPSON). Is there objection to the re- which I think, in the gentleman’s un- nism that impacts on both spending quest of the gentleman from Texas? derstanding of it, would be very sub- and on revenues was the only kind of There was no objection. stantive budget resolution proposals, enforcement that would really be and we anticipate them being made in meaningful. I know there is a dif- f order so we can debate each of those as ference of opinion among people on well. that issue, but we think that needs to HOUR OF MEETING ON TUESDAY, Mr. Speaker, one of the other as- be debated fairly soon and fairly proxi- MARCH 23, 2004 pects, as the majority leader knows, mate to close the consideration of the Mr. DELAY. Mr. Speaker, I ask unan- there has been a lot of discussion about budget. imous consent that when the House ad- enforcement mechanisms. We believe Mr. Leader, my last question would journs on Monday, March 22, 2004, it ad- on this side of the aisle that enforce- be, if the gentleman knows, and I no- journ to meet at 12:30 p.m. on Tuesday, ment mechanisms are critically impor- tice we have a member of the Com- March 23, for morning hour debate. tant if we are going to get to balance mittee on Rules on the floor, when will The SPEAKER pro tempore. Is there at some time in the future, which is substitutes need to be filed, if the gen- objection to the request of the gen- our objective and I think the gentle- tleman knows; or can the gentleman tleman from Texas? man’s objective as well. inform us when substitutes will need to There was no objection. Can the gentleman tell me when and be filed? in what form enforcement mechanisms Mr. DELAY. As soon as we can get f will be brought to the floor? I yield to back to the Terps game, I think the the gentleman from Texas. gentleman from Washington (Mr. DISPENSING WITH CALENDAR Mr. DELAY. Mr. Speaker, I thank the HASTINGS) is going to stand up and an- WEDNESDAY BUSINESS ON gentleman for yielding. Obviously, the nounce when they should be filed. WEDNESDAY NEXT Committee on the Budget passed out a Mr. HOYER. Mr. Speaker, in a world Mr. DELAY. Mr. Speaker, I ask unan- budget mechanism that will be consid- of priorities, the gentleman just got imous consent that the business in ered by the Committee on Rules. I have mine. order under the Calendar Wednesday no idea at this point in time when we f rule be dispensed with on Wednesday could schedule such a thing. There are next. ANNOUNCEMENT OF AMENDMENT a lot of Members on our side and the The SPEAKER pro tempore. Is there PROCESS FOR CONCURRENT RES- gentleman’s side that want to partici- objection to the request of the gen- OLUTION ON THE BUDGET, FIS- pate in this process that have a lot of tleman from Texas? CAL YEAR 2005 good ideas. I think this issue needs to There was no objection. ripen a bit. The Committee on Rules (Mr. HASTINGS of Washington asked claims some jurisdiction in this regard and was given permission to address f and they want to look at and mark up the House for 1 minute and to revise their own bill. and extend his remarks.) SPECIAL ORDERS This is a process that actually just Mr. HASTINGS of Washington. Mr. The SPEAKER pro tempore (Mr. got started yesterday by the Com- Speaker, the Committee on Rules may SIMPSON). Under the Speaker’s an- mittee on the Budget marking up a bill meet the week of March 22 to grant a nounced policy of January 7, 2003, and and moving it out of their committee, rule which would limit the amendment under a previous order of the House, so I really cannot say. I do not know process for the concurrent resolution the following Members will be recog- when is the earliest. We have a pretty on the budget for fiscal year 2005. nized for 5 minutes each. full schedule next week and the fol- Any Member who wishes to offer an lowing week and then, as the gen- amendment should submit 55 copies of f tleman knows, we break for the spring the amendment and one copy of a brief The SPEAKER pro tempore. Under a district work period. But it is vitally explanation of the amendment to the previous order of the House, the gen- important, everybody wants to bring Committee on Rules in Room H–312 of tleman from Oregon (Mr. DEFAZIO) is fiscal discipline to the budget process the Capitol, no later than 5 p.m. on recognized for 5 minutes. and show that this House can have fis- Tuesday, March 23. As in past years, (Mr. DEFAZIO addressed the House. cal responsibility, and we think that is the Committee on Rules intends to His remarks will appear hereafter in an important bill and we will bring it give priority to amendments offered as the Extensions of Remarks.) to the floor as soon as it is ready. complete substitutes. Mr. HOYER. Mr. Speaker, reclaiming Members are advised that the text of f my time, I thank the gentleman for his the concurrent resolution, as ordered, response. I would observe that, clearly, reported by the Committee on the ORDER OF BUSINESS enforcement mechanisms we believe Budget, should be available on the Web Mr. LANGEVIN. Mr. Speaker, I ask are critically important as we consider sites of both the Committee on the unanimous consent to take my Special the budget in the mid-2005 budget, but Budget and the Committee on Rules on Order at this time. also the outyears as well, whether we Friday, March 19. The SPEAKER pro tempore. Is there use a 5-year or 10-year budget analysis. Mr. Speaker, Members should use the objection to the request of the gen- Without enforcement mechanisms, Office of Legislative Council and the tleman from Rhode Island? obviously, we really do not know what Congressional Budget Office to make There was no objection.

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00046 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.074 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1277 THE ROLE OF HOUSING-RELATED is essential that we ensure that GSEs nication from the Honorable NANCY GOVERNMENT-SPONSORED ENTI- better manage risks without ham- PELOSI, Democratic Leader: TIES IN THE U.S. ECONOMY pering their mission, which is to ex- U.S. HOUSE OF REPRESENTATIVES, The SPEAKER pro tempore. Under a pand opportunities for home ownership OFFICE OF THE DEMOCRATIC LEADER, previous order of the House, the gen- and affordable rental housing. Among Washington, DC, March 18, 2004. tleman from Rhode Island (Mr. the options being discussed, we should Hon. J. DENNIS HASTERT, be aware that if Fannie Mae and Speaker, U.S. House of Representatives, LANGEVIN) is recognized for 5 minutes. Washington, DC. Mr. LANGEVIN. Mr. Speaker, today I Freddie Mac are privatized or if debt DEAR MR. SPEAKER: Pursuant to clause rise in response to Federal Reserve caps limit the amount of mortgages 5(a)(4)(A) of rule X of the Rules of the House Chairman Alan Greenspan’s recent re- that can be acquired, affordable hous- of Representatives I designate the following marks about the role of housing-re- ing is likely to be hurt the most be- Members to be available for service on an in- lated government-sponsored entities, cause it is the least profitable part of vestigative subcommittee of the Committee the GSE business. Now, in addition, on Standards of Official Conduct: otherwise known as GSEs, and our Mr. Becerra of California; Mr. Cooper of economy. limited mortgage financing for home Tennessee; Mr. Delahunt of Massachusetts; A day before Chairman Greenspan’s buyers could negatively affect the Mrs. McCarthy of New York; Mr. McIntyre of controversial testimony regarding So- housing market by stunning growth. North Carolina; Mr. McNulty of New York; cial Security, his comments on a dif- In light of past financial problems Mr. Schiff of California; Mr. Scott of Vir- ferent issue caught my attention. and Greenspan’s comments, I believe ginia; Mr. Stupak of Michigan; and Mrs. While testifying before the Senate Congress should begin by considering Tauscher of California. Banking Committee on February 24, he oversight from an independent regu- Sincerely, mentioned that the two largest hous- lator with housing expertise. A strong NANCY PELOSI, Democratic Leader. ing GSEs, Fannie Mae and Freddie regulator with a background in hous- Mac, have grown so large that they ing will ensure that home ownership f could threaten the foundation of the opportunities continue to grow, while The SPEAKER pro tempore. Under a entire United States economy if risks guarding against the potential of an previous order of the House, the gen- are not properly managed. I know that Enron-like collapse that could dev- tleman from Indiana (Mr. BURTON) is Chairman Greenspan is normally re- astate the United States’ economy. recognized for 5 minutes. (Mr. BURTON of Indiana addressed served in discussing financial markets Mr. Speaker, I urge my colleagues in the House. His remarks will appear because he understands the power that Congress to give this issue their imme- hereafter in the Extensions of Re- his words hold with investors. There- diate attention. We must act prudently marks.) fore, his assessment of the GSE situa- and look at a range of options to en- tion alarmed me. sure the solvency of Fannie Mae and f Greenspan’s comments brought back Freddie Mac. We need to guarantee the ORDER OF BUSINESS painful memories of the 1990 Rhode Is- mission of the GSEs is not com- Mr. WILSON of South Carolina. Mr. land banking crisis when fraud at the promised but, at the same time, ensure Speaker, I ask unanimous consent to private deposit insurer resulted in the proper oversight and ethical behavior. take my Special Order at this time. temporary closing of 45 financial insti- Fannie Mae and Freddie Mac must con- The SPEAKER pro tempore (Mr. tutions and the freezing of $1.7 billion tinue to bring the American dream to BRADLEY of New Hampshire). Is there in customer deposits. Due to neg- as many people as possible while we objection to the request of the gen- ligence and mismanagement, Rhode Is- strive to reduce the risk of fraud of a tleman from South Carolina? landers could not touch their assets for GSE derailing the United States econ- There was no objection. up to 36 days before the banks re- omy. f opened, making it impossible for many Mr. Speaker, I look forward to work- families to pay their mortgages or ing with my colleagues to address this b 1445 rent, or to even buy food. The thought important issue before it is too late. DEMOCRATIC LEADER SHOULD that more than a decade later, a simi- f APOLOGIZE FOR INSULTING NA- lar crisis on a much broader scale could ANNOUNCEMENT OF MEMBERS TIONAL GUARD SERVICE occur is cause for great concern. The SPEAKER pro tempore (Mr. Greenspan fears that many investors AVAILABLE TO SERVE ON IN- BRADLEY of New Hampshire). Under a are under the false impression that VESTIGATIVE SUBCOMMITTEES OF THE COMMITTEE ON STAND- previous order of the House, the gen- GSEs are backed up by the full faith tleman from South Carolina (Mr. WIL- and credit of the United States. Well, ARDS OF OFFICIAL CONDUCT FOR THE 108TH CONGRESS SON) is recognized for 5 minutes. because of this incorrect assumption, Mr. WILSON of South Carolina. Mr. investors believe they can accept high- The SPEAKER pro tempore. Pursu- Speaker, I am profoundly disappointed er risks because the government will ant to clause 5(a)(4)(A) of rule X, and in some of the rhetoric from Democrats bail out GSEs if they are insolvent or the order of the House of December 8, in this election year debate. As we default, as occurred in the 1980s. As 2003, the Chair announces that the have all heard a few weeks ago, Terry Greenspan noted, GSEs now stand be- Speaker named the following Members McAullife, the chairman of the Demo- hind more than $4 trillion of mort- of the House to be available to serve on cratic National Committee, said that gages, and the government can ill af- investigative subcommittees of the President Bush had served in the Na- ford such a bailout in the wake of a Committee on Standards of Official tional Guard but, quote, ‘‘never served housing crisis or corporate mismanage- Conduct for the 108th Congress: in our military and our country,’’ end ment. Mr. DOOLITTLE, California; of quote. It appears as though the increased Mr. SAM JOHNSON, Texas; This is a double slander of the Presi- Mr. LINCOLN DIAZ-BALART, Florida; risks the GSEs have been taking on is dent and the National Guard. To imply Mr. ENGLISH, Pennsylvania; not related to their primary operation that the National Guard is not a mili- Mr. SHADEGG, Arizona; of purchasing affordable housing loans Mr. BRADY, Texas; tary service, Chairman McAullife dis- in the secondary market. Rather, much Mr. SIMPSON, Idaho; misses the sacrifices of tens of thou- of their risk comes from derivative in- Mr. TERRY, Nebraska; sands of National Guardsmen and vestments in an effort to maximize Mr. KIRK, Illinois; women presently serving, and is a slap profits for shareholders. Now, as we Mr. REHBERG, Montana. to the face of their service and their learned from Enron, complex deriva- f families. tive schemes may boost profits in the As a retired National Guard member short term, but the long-run risks can COMMUNICATION FROM THE HON. myself with 31 years service, with two be too difficult to manage. NANCY PELOSI, DEMOCRATIC sons in the Guard, one of whom was de- Congress needs to approach this issue LEADER ployed to Iraq this week, America de- very seriously and take appropriate The SPEAKER pro tempore laid be- serves an apology and the Democrats corrective steps before it is too late. It fore the House the following commu- should find better leadership.

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00047 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.077 H18PT1 H1278 CONGRESSIONAL RECORD — HOUSE March 18, 2004 Terry McAullife’s comments were It is a sad day for the Democratic former President Clinton and former wrong and they were offensive to me, Party whose leader publicly denounces, Israel President Barak to reach peace. my family, to the thousands of South degrades, and dishonors a fighting It was a terrible, terrible moment in Carolina National Guard members force that at that moment is fighting Israel’s history when Yitzhak Rabin, a fighting in the war on terrorism today. for freedom and democracy and have great fighter for peace in the most lit- Apparently Chairman McAullife is un- devoted their lives to fighting terror- eral sense of the word, was murdered, aware of the distinguished history of ists around the world. in this case by right-wing terrorists the National Guard, which is America’s It is a time for truth. It is a time to within Israel. oldest military service. raise the level of public debate in this And I continue to believe that Israel The South Carolina National Guard country. It is a time for account- should be seeking peace based on the dates back over 300 years to 1670 when ability. It is a time for honesty. It is two-state solution because, among colonists united to defend their home- past time for an apology, and it is time other reasons, it is very much in land against Spanish invasion. In fact, for the Democratic Party to find new Israel’s interest. But those of us who the valor of those early guardsmen has leadership. hold that position must acknowledge been enshrined in the South Carolina Mr. Speaker, as I conclude, I would that the continued pattern of ter- State flag when they defended the like to offer, again, God bless our rorism, which the Palestinian authori- Carolina coast with a fort built of pal- troops. We will never forget September ties do little or nothing to oppose, metto trees during the Revolutionary 11. makes the accomplishment of that War. f goal extremely difficult. Perhaps Mr. McAullife is simply un- I have been critical of some aspects The SPEAKER pro tempore. Under a aware that guardsmen fought on the of what the Israeli Government does. previous order of the House, the gen- front lines of World War I, World War People say you cannot criticize an- tleman from New Jersey (Mr. PALLONE) II, the Cold War, the war in Vietnam, other government. That, of course, is is recognized for 5 minutes. the Korean War, the Gulf War, and now not true. People in this body spend (Mr. PALLONE addressed the House. the war on terrorism. And on the morn- most of our time criticizing other gov- His remarks will appear hereafter in ing of September 11, when we were not ernments. It is perfectly legitimate to the Extensions of Remarks.) sure how many planes had been hi- express points of view. Indeed, the jacked or how many sites had been tar- f more closely one feels allied to a na- geted, the President ordered the Air ORDER OF BUSINESS tion, it seems to me the more your ob- National Guard to fly combat patrols ligation is to speak out, if there are over Washington, D.C. and New York. Mr. FRANK of Massachusetts. Mr. some differences, in a constructive and Thank you to the Guard’s 119th Speaker, I ask unanimous consent to helpful way. Fighter Wing whose F–16s defended the take my Special Order out of order. But those who are urging Israel to do skies over Washington that morning The SPEAKER pro tempore. Is there more have to take due account of the and to the Air National Guard 102nd objection to the request of the gen- steady, relentless pattern of terrorism Fighter Wing whose F–15s rose to the tleman from Massachusetts? of which it is the victim. Look what defense of New York City. At a time of There was no objection. happened in Spain. Two hundred people great peril and uncertainty they were f were brutally murdered and a govern- America’s first line of defense and we THE RAVAGES OF TERRORISM ment fell, because they think it was an will never forget it. inappropriate reaction in terms of try- Right now there are more than The SPEAKER pro tempore. Under a ing to blame people. But would anyone 193,000 National Guard members and re- previous order of the House, the gen- now be pressing the Spanish Govern- servists currently serving our country tleman from Massachusetts (Mr. ment to enter into negotiations with al in the war on terror. They are steadfast FRANK) is recognized for 5 minutes. Qaeda which appears to be the author servants to our country, who have Mr. FRANK of Massachusetts. Mr. of this? given up their own civilian occupations Speaker, it is once again the sad duty When the U.S. was the victim of and left their homes and families to en- of a Member of the House, myself in thousands of murders and, given the sure liberty for others. Some of these this case, to talk about the ravages of population, Israel has seen a com- men and women are on the front lines terrorism and the damage it does. I was parable number, if not more, murdered who serve as the wedge between ter- struck last week, as we all were, by the by terrorists, none of us here felt that rorism and freedom. They are serving terrible depth of the tragedy in Spain the answer was to go further with ne- our country. when hundreds were killed by brutal gotiations. I find Chairman McAuliffe’s charac- thugs. But I must say I was also struck I am not opposed to peace negotia- terization insulting and demeaning. at the relative lack of attention to the tions. I think it is very much in Terry McAuliffe disgraces himself and deaths of 10 people in Israel who were Israel’s interest. I think the ability to insults the National Guard by saying it also killed by terrorists. get out of the settlements so that is not military service. His baseless in- Taking into account the very small Israel can be a Jewish democratic sinuation diminishes the National size of Israel’s population, the loss of 10 state, setting an example for the world Guard as an institution, and he owes an in that country is equivalent to hun- of how to achieve democratic values in apology to the guardsmen and -women dreds in many other places, thousands the Middle East, that is very impor- in uniform serving our country and in some others. The sad fact is that tant. So I don’t think the peace process protecting their fellow Americans. Israel has so frequently been the vic- ought to be abandoned. But I do believe Chairman McAuliffe has a right to tim of brutal murderist terrorism, it is important to take due note of speak freely. But it is shameful that in aimed wholly at people who are by no what we are asking a democratic Na- one statement he dishonors some of stretch of the imagination combatants, tion to do: negotiate peace under dif- America’s bravest service members. that the world has become a little ficult circumstances with an entity Chairman McAullife’s comments rep- numb to it. And that is a very sad fact. from which murderist terrorists come, resent the worst of election year poli- Obviously victims of terrorism are, and an entity which does too little to tics. President Bush has been talking in the first instance, those who are deal with it. about the issues that matter to Ameri- killed, those who are maimed, those There have been some in the Pales- cans: strong national defense, tax relief who love and care for them. And that is tinian Authority who want to show to promote job creation, and quality where our focus should be. But there is that they will make peace. But the role education for our children. Yet the a second victim of terrorism and it of Yassar Arafat has been so negative, Democratic leader has chosen to en- makes this a self-perpetuating prob- so absent when it comes to any serious gage in personal partisan attacks and lem, and that is any serious effort to effort to preventing the terrorism, that reckless comments that insult our men negotiate peace. it poisons the atmosphere. and women in uniform and the families I have been one of those in this House So, Mr. Speaker, as we mourn the supporting them. who strongly supported the efforts of victims of terrorism in Spain, we

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00048 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.081 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1279 mourn the victims of terrorism every- Mr. Speaker, our longstanding posi- We should not be trying to isolate where. We should note that the victims tion as the leading global innovator ourselves from the worldwide market of terrorism in the Middle East are not continues to be very strong. For exam- which would actually stifle our innova- simply those who were murdered, as ple, the United States is by far the tive environment and cede our position terrible as that is, but it is an effort to world’s leader in producing new pat- as the global leader. Instead, we should achieve peace. ents. In recent years, an average of continue to allow our spirit of innova- I continue to believe that Israel 185,000 new patents have been granted tion and entrepreneurship to empower should make every reasonable effort to here in the United States compared to Americans as we lead the world and achieve peace. I don’t think we can 120,000 in Japan and only 45,000 in the create better and better jobs right here fairly say to the Israeli Government entire European Union of all those in the United States. peace must be achieved, because that is countries combined. f not entirely in their control. I remain, Mr. Speaker, we also lead the world The SPEAKER pro tempore (Mr. unfortunately, skeptical that they in research and development by a huge BRADLEY of New Hampshire). Under a have a true partner for peace on the margin. The U.S. spends over a quarter previous order of the House, the gen- Palestinian side, although I think they of a trillion dollars on research and de- tleman from Ohio (Mr. BROWN) is rec- should continue to see if they do. velopment every single year, while But no one who understands democ- ognized for 5 minutes. Britain spends about a tenth of that (Mr. BROWN of Ohio addressed the racy, no one who has seen the way we amount, Germany spends less than a House. His remarks will appear here- have reacted, the way Spain has re- fifth of the U.S. total, and France after in the Extensions of Remarks.) acted, the way other democracies have spent about an eighth. f reacted, should feel that you can put Our growing investments in research pressure on Israel without taking into and development have led to steady ORDER OF BUSINESS account the context of repeated murder growth in the number of intervention Mr. MCGOVERN. Mr. Speaker, I ask in which they are asked to operate. disclosures and patent applications by that I may use my 5-minute time at f academic and nonprofit research orga- this point. OFFSHORING AND ITS IMPACT ON nizations as well. In 2002 these grew by The SPEAKER pro tempore. Is there U.S. JOBS 15 percent and they continue to in- objection to the request of the gen- The SPEAKER pro tempore. Under a crease. tleman from Massachusetts? These same institutions also are in- previous order of the House, the gen- There was no objection. creasingly licensing their work in tleman from California (Mr. DREIER) is f partnering with U.S. companies, pri- recognized for 5 minutes. HUNGER AND POVERTY IN THE marily small- and medium-sized busi- Mr. DREIER. Mr. Speaker, I want to UNITED STATES take just a few minutes to talk about nesses, to apply their discoveries and The SPEAKER pro tempore. Under a the issue of offshoring, which is hotly innovations to our marketplace and to previous order of the House, the gen- debated and oft discussed as we focus the global marketplace. This increased tleman from Massachusetts (Mr. on the question of jobs. It really comes research and licensing lead has led to MCGOVERN) is recognized for 5 minutes. down to two choices that we have here major breakthroughs in fields such as Mr. MCGOVERN. Mr. Speaker, over in the United States: We can try to iso- health care, including issues that are the past few months I have spoken on late ourselves from the rest of the near and dear to virtually everyone this floor on a weekly basis about the world or we can continue, as has been here, cancer and Alzheimer’s treat- scourge of hunger around the world, es- the case throughout recent history, to ment, along with electronics with ap- innovate and create better and better plications like improved cellular voice pecially among children. I have talked jobs for Americans right here in the quality and computer monitors that about the importance of adequately United States. create less stress on users’ eyes, and funding the McGovern-Dole Food For After decades of American global even a new type of electric generator Education and Child Nutrition Pro- economic leadership successfully com- that can produce electricity with envi- gram, which would provide children peting in the worldwide marketplace ronmental-friendly hydrogen fuel at a around the world with a nutritious and producing cutting-edge tech- fraction of the cost of current power school meal. nologies and business practices, the plants. If we are going to make this world a economic isolationism option is clearly Mr. Speaker, venture capital, by pro- safer and better place, I strongly be- no option at all because of the success viding the resources necessary to turn lieve that we must eradicate hunger. that we have enjoyed. ideas into new goods and services, is This is something we can do. There are That leaves us with only one choice, also a key component of our ability to some problems that we cannot solve, Mr. Speaker, and that is to allow innovate. Once again, the U.S. is the but hunger is not one of them. Americans to continue to innovate, global leader. Business and individual It is important, however, in any dis- grow, and create better jobs right here. investors provided over $21 billion in cussion about hunger that we not ig- In fact, innovation has always been the venture capital in 2002 compared to nore the problem of hunger that per- key to our global economic leadership. just $8 billion in European Union. That sists right here at home. In the face of Our culture of creativity, independence constitutes a 600 percent increase in world starvation, Americans tend to and free thinking has created what the U.S. venture capital over the past dec- forget that millions of people in this CEO of an Indian high-tech company ade. This environment, Mr. Speaker, is country continue to go without food recently called a, quote, ‘‘unique cru- the cornerstone of American pros- every day. Thankfully, we do not have cible for innovation.’’ perity. the rampant starvation that affects He shared this anecdote in the New places like the Horn of Africa, but that York Times recently talking about the b 1500 does not mean people are not going very powerful force of innovation here It gives individuals the freedom to without food every day right here in in the United States. He said, ‘‘I was in develop new ideas and concepts and en- the United States. Europe the other day and they were courages creativity and risk-taking. It When we talk about hunger in Amer- commiserating about the 400,000 Euro- has unparalleled financial markets and ica, we are really talking about food pean knowledge workers who have gone a venture capital system that are con- insecurity. According to the Food Re- to live in the United States because of stantly helping Americans turn their search and Action Center, food insecu- the innovative environment there. The dreams into reality. It has given Amer- rity refers to the lack of access to whole process where people get an idea ican companies and individuals the enough food to fully meet basic needs and put together a team, raise the cap- power to invest, grow and create new at all times due to lack of financial re- ital, create a product and mainstream jobs in cutting-edge fields, and it is our sources. it, that can only be done in the United best answer to those who see offshoring According to the United States De- States of America,’’ this Indian high- as a reason to retreat behind the walls partment of Agriculture, about 35 mil- tech executive said. of economic isolationism. lion people experienced food insecurity

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00049 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.083 H18PT1 H1280 CONGRESSIONAL RECORD — HOUSE March 18, 2004 in 2002. This is an increase of 3.9 mil- considering the circumstances under This January, I conducted a mission lion people in just 3 years. Of the 12.1 which it was drafted, and I am looking to this region to review the operations million households that were food inse- forward to its consideration in the near of the State Department’s terrorist re- cure in 2002, 3.8 million suffered from future. wards program. This program was such severe food insecurity that they Mr. Speaker, while these programs highly successful in helping the arrest are classified as hungry. are important and need to be reauthor- of key international criminals impor- The root cause of most food insecu- ized and expanded, issues I will talk tant to the United States. The program rity and hunger in America is poverty. about at a later date, we cannot con- led to the arrest, capture, or death of It is unconscionable that in 2004 there tinue to ignore the fact that poverty is two-thirds of U.N. war criminals in are people in this country who do not the root cause of food insecurity and Bosnia. It led to the arrest, prosecu- have enough money to buy food. Ap- hunger here in the United States. tion, and execution of Mir Aimal Kasi proximately 35 million Americans live We have a moral responsibility to who killed many Americans outside in poverty, about the same number of end food insecurity and hunger. We the CIA gate in Virginia. By the way, people who were food insecure and hun- have a moral responsibility to end and Mr. Kasi was arrested in the very re- gry. The correlation is obvious. The combat poverty. We can achieve these gion of Pakistan receiving so much at- poorest people in this country are goals if we have the moral and political tention today. The program also led to going hungry. The sad reality is that courage to do so. the arrest and death of Uday and Qusay every day there are parents who sac- The President recently challenged us Hussein, the two Hussein brothers, sons rifice their own food so that their kids to do what is necessary to put a man of Saddam Hussein. can eat. on Mars. That is a fine goal; but I As a congressional staffer, I drafted I recently read a speech by my friend, would submit that a better, more ur- the bill that lifted the rewards program the late Senator Paul Wellstone, deliv- gent goal is combating hunger and end- from 5 to $25 million and allowed its ered at Iowa State University in 1998. ing poverty. We should begin a new war use against U.N. war criminals. Based In that speech, Senator Wellstone re- on poverty. on my January mission to Afghanistan called how he traveled to the Mis- Let us utilize all that the govern- and Pakistan, we found the need for sissippi Delta after reading the book ment and the private sector can do to more reforms. We asked to raise the ‘‘Let Them Eat Promises’’ by Nick undertake this challenge. Only then award for Osama bin Laden’s arrest to Kotz, following in the footsteps of Rob- will we end the scourge of food insecu- $50 million and to make the payment of ert Kennedy. Senator Wellstone was so rity and hunger. cash rewards more flexible so that in moved by the story about how Robert rural communities we could provide f Kennedy, when touring the country to trucks or farm implements that could The SPEAKER pro tempore. Under a see firsthand the poverty and hunger be a much more motivating factor with previous order of the House, the gen- that ravaged parts of this Nation, tried rural families. tleman from New Hampshire (Mr. to connect with a young boy in the In the frontier autonomous tribal re- BRADLEY) is recognized for 5 minutes. Mississippi Delta. When the boy would gion that we are focusing so heavily on (Mr. BRADLEY of New Hampshire not even respond because of his severe today, we face a population largely il- addressed the House. His remarks will malnourishment, Bobby Kennedy just literate, very poor and speaking the appear hereafter in the Extensions of broke down and cried. Wasari tribal language. In making Unfortunately, Mr. Speaker, I am Remarks.) these reforms, we need the State De- afraid that if we left this Capitol build- f partment to do media surveys and use ing right now and traveled to another EXCHANGE OF SPECIAL ORDER more radio and TV, which is much part of Washington or another city and TIME more appropriate to communicating town in America, we would find a simi- with large, illiterate communities. lar situation. On that July day at Iowa Mr. KIRK. Mr. Speaker, I ask unani- These ideas would all combine with State University, Senator Wellstone mous consent to take the gentleman one other idea: Osama bin Laden has asked his audience, ‘‘Can’t we do bet- from New Hampshire’s (Mr. BRADLEY) slowly been changing his source of fi- ter?’’ Well, Mr. Speaker, the answer is, place at this time. nancing. He used to depend on Wahabi yes, we can. The SPEAKER pro tempore. Is there donations, his personal fortune and do- During the last several decades, Con- objection to the request of the gen- nations from Europe, but those sources gress has passed landmark legislation tleman from Illinois? of funding have largely dried up under providing nutritious meals for low-in- There was no objection. a series of United Nations legal orders. come children and families. While the f Today, Osama bin Laden stands as programs created over the last century one of the world’s number one sellers of AUTHORITIES ARE CLOSE TO do not adequately address the problem heroin. Haji Bashir Noorzai of Canada CAPTURING OSAMA BIN LADEN of poverty in America, they help in provides him with 2,000 kilograms of part to alleviate the food insecurity The SPEAKER pro tempore. Under a heroin every 8 weeks, giving bin Laden caused by poverty. These programs are previous order of the House, the gen- from that source alone $28 million a vitally important and have improved tleman from Illinois (Mr. KIRK) is rec- year. In mid-December, the United the quality of millions of lives since ognized for 5 minutes. States Navy arrested three dhows in their adoption. Mr. KIRK. Mr. Speaker, today we the Arabian Gulf that contained meth- The school lunch program, the school have received tantalizing reports that amphetamine, hashish, and heroin breakfast program, WIC and food Pakistani authorities may be close to worth $10 million, an attempt by bin stamps are just a few of the landmark arresting Osama bin Laden’s deputy, Laden to move from the Pakistani programs that make up the core of our Ayman al Zawahiri. market where he gets $2,000 per kilo- antihunger safety net here in the We do not know if this is true, but we gram of heroin to the United Arab United States. Many of these programs do know that hundreds of American Emirates where he would get $10,000 are up for reauthorization this year, men and women in uniform are cur- per kilogram. and our colleagues on the Committee rently risking their lives as part of Op- Osama bin Laden has more money ac- on Education and the Workforce, led by eration Mountain Storm to arrest cess to his fortune than ever before, the gentleman from Ohio (Chairman high-level terrorists in the critical bor- and these ideas need to be incorporated BOEHNER) and the gentleman from Cali- der region of Afghanistan and Paki- into our new bill, H.R. 3782, the fornia (Ranking Member GEORGE MIL- stan. Counter-Terrorist and Narco-Terrorist LER), have produced a bipartisan bill This border region was the safe haven Rewards Program Act. That act just that reauthorizes and expands many of for the world’s most wanted man. passed the House of Representatives an these programs. Osama bin Laden lived there for many hour ago by a vote of 414 to 0, a monu- While I am disappointed that this years since his first visit to the region ment to bipartisan cooperation on a bill, as currently drafted, does not go during the Soviet occupation of Af- critical national security issue of the farther than it does, it is a good bill ghanistan. United States. The passage of this bill

VerDate jul 14 2003 01:10 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00050 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.087 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1281 was needed, and it is needed more than mismos valores y por una herencia comu´ n. port meant more than we could possibly ex- ever because of the news coming from Compartimos libertad, compasio´ n, tolerancia press at the time. Operation Mountain Storm. y democracia. Tambie´n es voluntad comu´ n Now, it is we and the rest of the world who We need to thank the uniformed men mantenernos juntos y firmes contra aquellos reach out our hands to Spain and to all of que amenazan esos valores y matan the people of Spain. Let us embrace you now and women of Combined Task Force 180 inocentes en nombre del fanatismo polı´tico y as you embraced us. Let us comfort you now and the men and women of U.S. embas- religioso. as you comforted us. Let us grieve with you sies in Islamabad and Kabul and other Cuando nuestro paı´s sufrio´ los atentados for your losses. And let us also pledge our government agencies that are today del once de septiembre, el pueblo espan˜ ol y el loyalty to you and our commitment to bring risking their lives this very hour for resto del mundo ofrecio´ a esta nacio´ n y a su those responsible for this atrocity to justice. the arrest of some of the world’s most gente, apoyo, comprensio´ n y solidaridad. Ese In the end, the terrorist will never win be- dangerous terrorists. ofrecimiento sin condiciones supuso ma´ s de cause their methods of brutality and their I also want to recognize our allies in lo que nunca podremos agradecer. goals are contrary to civilization, contrary Ahora, somos nosotros y el resto del to decency, and contrary to the highest aspi- this battle, the governments of Paki- mundo los que debemos alargar nuestras rations and realizations of human beings. stan and Afghanistan. President manos hacia Espan˜ a y su gente. Permı´dnos They will never win, but until they are de- Musharraf of Pakistan is riding a tiger que os abracemos como vosotros lo hicı´steis. feated once and for all, they will exact a tonight, but he has made the bold step Permitidnos guardar el luto de vuestras heavy, heavy toll. Now, tragically, as so to move against al Qaeda, regardless of vı´ctimas. Queremos agradeceros vuestra often before, they have taken that toll from the political risk. He and his Special lealtad y mantener el compromiso de llevar innocents on their way to work and school. Forces team are key, key parts of this a la justicia a los responsables de esta There could be no greater evidence of the fal- atrocidad. allied victory against terrorism. lacy of their aims and beliefs than this hei- Los terroristas nunca vencera´ n. Su nous act of cruelty. That is why we stand Mr. Speaker, we may or may not brutalidad y sus objetivos son contrarios a la united against them, united with our friends have good news tonight, but we can al- civilizacio´ n, a la decencia y a las an allies, united with the people of Spain. ready thank the hundreds of Americans aspiraciones de los seres humanos. When I lived in Spain and was taught this in uniform and out of uniform who are Nunca vencera´ n, pero hasta que podamos beautiful language by my dear friends, I was so far from home today, but are doing con ellos de una vez por todas, tendra´ n que struck by the fact that the translation of the our government’s most dangerous and pagar un precio muy alto. No hay mayor English phrase ‘‘I am sorry’’ is lo siento, lit- important work. evidencia de sus errores que este acto atroz erally, I feel it. Lo siento, I feel it. Let me de crueldad contra gente inocente que iba a say to my friends in Spain that we feel your f su trabajo o a su centro de estudios. Por ello, losses. We know something of the feeling, we The SPEAKER pro tempore. Under a debemos mantenernos unidos frente al ter- know the pain, we know the sadness, we previous order of the House, the gen- ror, unidos con nuestros amigos y aliados, know the rage at such pointless, unjust unidos con Espan˜ a. tleman from California (Mr. FILNER) is slaughter. We have felt these things our- Cuando vivı´ allı´ y aprendı´ su bonita lengua recognized for 5 minutes. selves and now we feel it once again with you con mis grandes amigos, me impresiono´ el and for you. (Mr. FILNER addressed the House. hecho de que la frase ‘‘I’m sorry’’ signifique No words can take that pain away, but His remarks will appear hereafter in realmente ‘‘lo siento’’. Permı´tanme decir a please know in this dark time that you are the Extensions of Remarks.) mis amigos espan˜ oles que ‘‘sentimos’’ su not alone. Together, we will prevail. We will pe´rdida. Sabemos lo que es ese dolor, esa f bring those responsible to justice and, more tristeza y la indignacio´ n e impotencia por importantly still, we will show through the EXCHANGE OF SPECIAL ORDER unas muertes tan injustas. Hemos sentido en examples of our two great lands and peoples TIME carne propia el drama del terror y lo that there is a better path, a better way. Let volvemos a sentir con vosotros. us never lose sight of that higher vision and Mr. BAIRD. Mr. Speaker, I ask unan- No hay palabras que puedan consolar tanto let the ways we respond to these tragedies imous consent to accept the gentleman dolor, pero debeis saber que en este momento show our true strength and or love for free- from California’s (Mr. FILNER) time. no esta´ is solos. Juntos, triunfaremos. dom and for one another. The SPEAKER pro tempore. Is there Llevaremos a los responsables ante la Courage my friends. Courage, strength, and objection to the request of the gen- justicia y ma´ s importante: les ensen˜ aremos compassion. We are with you and always will tleman from Washington? con el ejemplo de nuestros dos grandes be. paı´ses, que existe un camino mejor. Un ca- f There was no objection. mino que demuestre nuestra fuerza comu´ n y The SPEAKER pro tempore. Under a f nuestro amor por la libertad. Fuerza, amigos espan˜ oles . . . fuerza, previous order of the House, the gentle- EXPRESSING CONDOLENCES TO coraje, y a´ nimo. Estamos con vosotros, hoy y woman from the District of Columbia SPAIN siempre. (Ms. NORTON) is recognized for 5 min- The SPEAKER pro tempore. Under a (English translation of the above utes. previous order of the House, the gen- statement is as follows:) (Ms. NORTON addressed the House. tleman from Washington (Mr. BAIRD) is As an American citizen and member of the Her remarks will appear hereafter in recognized for 5 minutes. Congress of the United States of America, I the Extensions of Remarks.) want to express my profound condolences to f Mr. BAIRD. Mr. Speaker, a week ago all of the people of Spain for the tragic loss we all mourned the loss, along with our of so many innocents at the hands of terror- ETHNIC CLASHES IN KOSOVO brothers and sisters and friends in ists. Having lived in Spain for 2 years, part Spain, of so many innocent civilians. of my heart and soul will always remain in The SPEAKER pro tempore. Under a Having had the opportunity to live in Spain and part of Spain will always be with- previous order of the House, the gen- Spain for 2 years, I would like to take in me. Today, my heart and soul are sad- tleman from New York (Mr. ENGEL) is a few moments, if I may, to express my dened by the losses and outraged by the in- recognized for 5 minutes. personal condolences in the hopes that humanity of the attackers. Today, we are all Mr. ENGEL. Mr. Speaker, I must say Spanish and we have all lost good people and our Congress, in its entirety, will do so a couple of things before I begin. I want friends. to commend my colleague, the gen- before long. Our nations have long been allies and tleman from Washington (Mr. BAIRD) Como estadounidense y miembro del friends, united by shared values and a com- Congreso de los Estados Unidos de Ame´rica, mon heritage. Liberty, compassion, toler- for his meticulous Spanish, and I want quiero expresar mis ma´ s profundas ance, and democratic institutions are dear to to also take note of the fact that the condolencias al pueblo de Espan˜ a por la all of us. So too is our willingness to stand Manhattan College Jaspars, in my dis- tra´ gica pe´rdida de tantos inocentes en manos together against those who would threaten trict, just won the opening round of the del terrorismo. Personalmente, tuve la those values and who kill innocents in the basketball NCAA against Florida. They oportunidad de vivir en Espan˜ a durante dos name of political and religious zealotry. Be- were the underdogs. So I am very proud an˜ os, y desde entonces llevo una parte de ese cause of our shared values, we are now also of them and the 17th District of New ´ ´ paıs y de su gente en mi corazon. Hoy mi united in suffering and loss. York. Go Jaspars. alma llora las muertes provocadas por la When our Nation suffered on September crueldad del terror. Hoy, todos somos 11th, the people of Spain and the rest of the I want to address a very serious sub- espan˜ oles. world reached out to offer our own Nation ject, though, Mr. Speaker, and that is Nuestras naciones han sido a lo largo de la and our people comfort, support and soli- the violence which took place yester- historia, aliados y amigos, unidos por los darity. That outpouring of kindness and sup- day; ethnic clashes in Kosovo in the

VerDate jul 14 2003 02:28 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00051 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.089 H18PT1 H1282 CONGRESSIONAL RECORD — HOUSE March 18, 2004 Balkans between ethnic Albanians and And let me tell my colleagues why Raised on a farm during the Great De- ethnic Serbs. I chair the Albanian self-determination and, ultimately, pression, he joined the Marines at 16 Issues Caucus in the Congress and have independence is the only solution. and served with the Pacific Fleet as an done extensive work in the Balkans There are only two other solutions, anti-aircraft gunner from 1946 to 1948. and extensive work in Kosovo. I believe which do not work. One is to have After ending his active duty in 1948, that ultimately the situation in Kosovo go back under Serb control. Mike served in the Marine Corps Re- Kosovo can only be resolved through That will never happen after the ethnic serve until 1950. And then he joined the self-determination. The people of cleansing of 1999. The overwhelming Air Force as an intelligence operator Kosovo have to have a future and have Albanian population will never, right- and was assigned to the Aleutian Is- to understand that they have the right fully so, accept it. Secondly, the only lands. In 1952, he joined the Army in- to determine their own future. other alternative would be for Kosovo fantry so that he could serve his Na- The ethnic violence which happened to continue to be an international pro- tion in Korea. It was during this con- yesterday is a tragic undertaking, a tectorate, which is what it is now, with flict he earned a Silver Star, a Purple tragic tragedy, and I must call on both troops of many countries there, United Heart, and a Bronze Star with a V for sides to stop the violence. Violence is Nations troops and NATO troops. That valor. never a solution to anybody’s perceived cannot happen indefinitely. So the only According to an official Army ac- problems or indignities. It must be solution is independence, and the only count from February 1953, and I quote, solved peacefully. solution is to give the people of Kosovo ‘‘While his company was being sub- However, having said that, I think some hope. jected to a barrage of heavy artillery that the violence that erupted yester- So I would hope that the administra- from Chinese Communist forces during day was inevitable, and it was inevi- tion would move to resolve this prob- a night attack, Sergeant O’Callaghan table because in 1999, when the United lem now, to give the people of Kosovo was informed that men on an outguard Nations came in, including our troops, hope for the future. The status quo post had been cut off by this enemy ac- tion. Immediately, he voluntarily ex- and prevented genocide, prevented only aids and abets violence. And while posed himself to enemy fire, located Slobodon Milosovic from his ethnic we are at it, we have to resolve the the men, and brought them, together cleansing, from cleansing Kosovo of its whole situation with privatization. The with a wounded member, safely back to Albanian population, we stepped in and people there have to know if they in- prevented that from happening. And the trenches.’’ vest in property for the future, to help After taking a direct hit in the leg by that was a wonderful thing that we did. the people there, they must know that However, since that time, very little a mortar round, Mike made a tour- it will be secure. niquet out of telephone wire and con- has been done to move to a resolution So, again, I want to condemn the vio- tinued to direct the firefight for the of the final status of Kosovo. lence, I want to show my sympathy for When there is no resolution of the next 3 hours. As a result of these the victims of the violence, but I want wounds, his left leg was amputated final status, the people in a country be- to again tell the administration that come restless because they see no fu- below the knee. we need to ratchet it up and come to a After military service, Mike attended ture. They see no end point. They only resolution of final status for the people the University of Idaho, and in 1956 he see the status quo. And we have be- of Kosovo. graduated among its top 10 graduates. come the status quo in that country. He then moved to a small community UNMIK, the United Nations, and NATO f The SPEAKER pro tempore. Under a in Nevada by the name of Henderson have to be seen as people who are re- where he taught high school economics solving this issue, who are moving it to previous order of the House, the gen- tleman from Michigan (Mr. CONYERS) is and history and coached boxing. It was final status to give the people of as a teacher and a coach that Mike Kosovo hope. Right now there is ramp- recognized for 5 minutes. (Mr. CONYERS addressed the House. came to know a young man named ant unemployment. Right now there is Harry Reid, who now serves as a distin- very little hope for a future. That has His remarks will appear hereafter in the Extensions of Remarks.) guished senior Senator from the State to end. of Nevada and that body’s assistant mi- Self-determination and, ultimately, f nority leader. independence for the people of Kosovo IN MEMORY OF THE LATE Mike also served as Las Vegas’ chief is the only solution. When people do GOVERNOR MIKE O’CALLAGHAN probation officer and as director of Ne- not see a chance for self-determina- vada’s Health and Welfare Department. The SPEAKER pro tempore. Under a tion, tensions fester beneath the sur- Later that year, he moved to Wash- face when you do not move to resolu- previous order of the House, the gentle- ington, D.C. to serve as Job Corps Con- tion. woman from Nevada (Ms. BERKLEY) is servation Centers program manage- What we have seen with the United recognized for 5 minutes. ment director, a position he held until Nations, with UNMIK and NATO, is Ms. BERKLEY. Mr. Speaker, last 1966. this ridiculous plan called standards week, with the passing of Governor Despite being labeled the underdog, before status. To me, it only means Mike O’Callaghan at the age of 74, Ne- Mike ran for Governor of Nevada in status quo. We put forward bench- vada lost a giant who helped shape our 1970. His hard work and record of serv- marks and we tell the people of Kosovo State’s history, Las Vegas lost one of ice ultimately propelled him to an un- they have to achieve these benchmarks its most compassionate and articulate expected victory. Four years later, he before we can even look at a resolution voices, and I lost a friend and someone earned the respect and admiration of and at self-determination. And some- who was like a second father to me. even those who did not give him a how or other, something always inter- When I first met Mike, I was a 19- chance the first time and he rode a venes, the benchmarks are never there, year-old college student in Las Vegas. wave of popularity to the polls and was so the status is never achieved and we At that time, I was student body presi- reelected to a second term. He remains delay, and we delay and we delay, and dent of UNLV, and for whatever reason, to this day the choice of many Nevad- we push it to the back burner. Mike O’Callaghan saw something in me ans who, when asked, will say he was I very much regret that our adminis- that I did not even see in myself. He our Nation’s and our State’s greatest tration has pushed the whole issue of became my mentor and a trusted Governor. Kosovo to the back burner. It needs to friend. Of all the giants in the State of Throughout his 8 years in office, he be on the front burner. We need to re- Nevada, he was head and shoulders was a hands-on leader and a relentless solve this problem. We need to give the above them all, and I have never champion for those he served. He was people of Kosovo hope. We need to have known a finer man in my life. known to make surprise visits to pris- a resolution. Self-determination is Born Donal O’Callaghan on Sep- ons, mental hospitals, and other State- what is needed, and we need to push tember 10, 1929 in La Crosse, Wisconsin, run institutions, and could often be that; not be pushing off the day of Governor Mike, as he was affection- seen eating in the cafeteria so he would reckoning again and again and again ately known by all that knew him, was know firsthand what life was like for and again. a member of the greatest generation. those in those facilities.

VerDate jul 14 2003 01:37 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00052 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.094 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1283 As Governor, he fought for fair hous- honestly say that Mike O’Callaghan is the only We know not what went on in the ing, civil rights, disadvantaged chil- true hero I’ve ever met, and I count myself for- minds of the voters in Spain that dren, prison reform, and to protect the tunate for the honor.’’ would bring them to the conclusion unique beauty of Lake Tahoe and aid I also count myself among those lucky that going down the path of appease- for workers injured on the job. enough to have known and loved this great ment was preferable to going down the After his career in public service, he man and to have had the honor to call him my path of fighting terror wherever we went on to become executive editor of friend. Mike, you will be missed, but you will find it. But that decision was made by the Las Vegas Sun, where he used his never be forgotten. the Spanish people, and we respect column to draw attention to a wide f their decision. However, the challenge array of causes and concerns that he to our President that has been issued b 1530 continued to care about long after by Prime Minister-elect Zapatero that leaving office. The SPEAKER pro tempore (Mr. they would withdraw their troops from Mike was a deeply, deeply religious BRADLEY of New Hampshire). Under a Spain and realign themselves, and pre- man, who attended church on a daily previous order of the House, the gen- sumably realign themselves with some basis. He was known as much for his tleman from New Jersey (Mr. GARRETT) of the nations in Europe that have op- works of charity as he was for his po- is recognized for 5 minutes. posed our policy in Iraq is a regretful litical victories. If you were a million- (Mr. GARRETT of New Jersey ad- situation. aire or if you were homeless, Mike dressed the House. His remarks will ap- And we have not seen a leader of a treated you with the same dignity and pear hereafter in the Extensions of Re- foreign country challenge a seated respect. He was legendary for his ef- marks.) President in the time of an election as forts on behalf of those who were down f we do on this particular circumstance. on their luck. In fact, the question I think has been EXCHANGE OF SPECIAL ORDER He also shared a deep interest in answered, the question of the apparent TIME international affairs. He made count- Democrat nominee for President in less trips to Israel to support the Mr. KING of Iowa. Mr. Speaker, I ask this Nation has stated that he has the Israeli defense force. He was called unanimous consent to claim the time support of foreign leaders. He will not upon to visit Central America to pro- of the gentleman from New Jersey (Mr. name those foreign leaders, but I be- mote democracy and worked for fair GARRETT). lieve one of them has come out and elections in the nation of Nicaragua. The SPEAKER pro tempore. Is there made the endorsement to support the He repeated his role in northern Iraq in objection to the request of the gen- Democrat candidate for President of 1992, helping observe free elections for tleman from Iowa? the United States, thus injecting him- the Kurds in that divided nation. There was no objection. While he will be remembered for his self into our domestic politics, thus lasting contributions as Governor and f identifying an individual that might coach and newspaper executive, his TERRORISTS INFLUENCE SPANISH have been referenced by our candidate; greatest legacy was his family: his wife ELECTION thus taking them both down the path of nearly 50 years, Carolyn; his five to appeasement. The SPEAKER pro tempore. Under a This is a regrettable circumstance. children, Michael, Mary, Teresa, Brian, previous order of the House, the gen- The headline I am looking at is from and Timothy; and his 15 grandchildren. tleman from Iowa (Mr. KING) is recog- the Salt Lake Tribune and it says, There are literally thousands of Ne- nized for 5 minutes. vadans and people around the world ‘‘Spanish socialist supports Demo- Mr. KING of Iowa. Mr. Speaker, I rise cratic-apparent nominee.’’ Spanish so- whose lives have been touched by this today to address a subject matter, and extraordinary man. He was one of my cialist, that should tell us something. that subject matter has to do with Spanish socialist appeaser. The legacy best friends, one of my closest friends. Spain. I will miss him as if he were my father, of Neville Chamberlain hangs in the at- First, I would like to thank the mosphere across all of Europe today, and I share the loss with his family. Spanish people and the Spanish leader- While Mike will long be remembered for his and the message sent to the terrorists ship that they have had over the past lasting contributions as a Governor, teacher, is, you have won. several years for their allegiance to the coach and newspaper executive, perhaps his Al Qaeda understands they have won principles that built this great Nation greatest legacy is the O’Callaghan family, the election in Spain by blowing up in- that we have the privilege to live in, which includes Mike’s wife of nearly 50 years nocent civilians and moving the elec- their commitment to free enterprise Carolyn, his five children Michael, Mary, Te- torate in Spain toward the socialist and their commitment to the allies resa, Brian and Timothy and his grand- candidate, the appeasement candidate. that we have pulled together in Iraq. children. I do not know what goes on in the There are literally the thousands of people I have watched their economy grow minds of voters in a time of grief, but in Nevada and around the world whose lives in Spain as free markets took hold, and I have to believe and I have to pray were touched in different ways by the efforts I have seen that Spain has become a that American voters, if confronted of Mike O’Callaghan. competitor with us and made us both with the same thing, will react in an As communities across southern Nevada be stronger economically. They stood entirely differently fashion. For the mourned the loss of this great figure last with us in times of toil, and they stood last 3 weeks, I have been warning the week, endless personal stories about Mike with us in times of terror. They have people in my district and across the and his many deeds filled memorial services, stood with us in Iraq, and the warm country that I fear a terrorist attack the airwaves and the pages of the newspaper. feeling we got when President Aznar in this Nation prior to our Presidential So many stories and so many lives, all was here to speak before this Chamber election and an effort to change the touched by this humble, hard working, hard- was a heartfelt appreciation for a na- election results in this country and nosed man with a heart of gold. tion that shares with us many of the elect the candidate who has been en- The State of Nevada is a far better place same ideals and principles. dorsed by the socialist from Spain. because of Mike O’Callaghan and he will for- However, there has been a situation Well, I believe the character of the ever be remembered as a man whose life was which has changed things dramatically American people is different than the defined by his service to our Nation, his devo- in Spain. We also stand together with response that we have seen by the tion to his family and friends, his rock solid re- the Spanish people in their grief for Spaniards; and I believe that we will ligious beliefs, his steady leadership as Gov- having lost 201 of their citizens and stand up, if that tragic time comes to ernor and his love of the underdog. hundreds of them wounded in the cow- pass, and now they have certainly been As one newspaper columnist put it, ‘‘Mike ardly bombing attack on the trains in encouraged to attack us in this coun- O’Callaghan believed heart and soul in the Madrid just 2 days before the election. try because of their success in Spain. I family of man. He has gone away, but we’ll There are not many people on this believe we will stand up, and I believe hear his voice for a long time to come.’’ planet that do not believe that the we will stand with George W. Bush, our While another wrote: ‘‘Although the word elections were profoundly changed be- President, the man who understands ‘hero’ is tossed about lightly these days, I can cause of those terrorist attacks. terror, defines terror, and knows we

VerDate jul 14 2003 01:37 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00053 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.096 H18PT1 H1284 CONGRESSIONAL RECORD — HOUSE March 18, 2004 have to fight the terrorists wherever how the Clean Air Act requires that fresh water fish in so many instances they are, the one who said if you are mercury be regulated as a hazardous cannot be eaten without risk of mer- not with us, you are against us; you are pollutant, but this administration has cury contamination, and that is why either a terrorist, and if you are a ter- chosen not to do that. In fact, this ad- our States have so many warnings rorist, we are opposed to you. If you ministration has submitted a proposed about the risks of mercury. harbor terrorists, if you support terror- mercury rule which in major respects In Maine, my home State, we have ists, if you fund terrorists, you are a was written by the industries it is sup- about 26,000 people employed in the terrorist. Now there is some habitat in posed to regulate. This story is an indi- fishing industry, and we have thou- Spain that might cause terrorists to cation of what needs to be done to sands and thousands of recreational settle in there, and that might poten- change the direction of the environ- fishermen. Nationwide, recreational tially be a risk for more terror to come mental policy of this administration. fishing generated more than $35.6 bil- out of there. Maybe they will leave the Let me begin by talking about the lion in expenditures in the year 2001 Spanish people alone, but that does not Clean Water Act and the threat that and $116 billion of total economic out- mean the rest of the people are safe. mercury emissions pose to people in put. It supported more than 1 million So we are confronted with appease- this country. jobs. ment over there. We need to stand to- Three decades ago, the Clean Water Now, in December the Bush adminis- gether here. We need to stand together Act promised that America would have tration was faced with a court require- with our allies who have come together water bodies that were fishable, that ment that it submit a proposed rule to behind the United States. No other na- were swimmable and drinkable. Clean regulate mercury emissions from power tion out there seems to be willing to water, that was the goal. plants. Unfortunately, the rule that But today, all across this country crack and go off in that direction. they proposed reinterprets the Clean there are warnings that particularly We have a large job ahead of us, to Air Act, I believe, illegally in order to women and children should not eat the stand with our military, those who help polluters. It dramatically delays fish from our lakes and streams and have given their lives and limbs, those by how soon and by how much plants rivers because those fish are contami- who have given years out of their lives will have to clean up their act. Under nated with mercury. Mercury pollution the Clinton administration, EPA con- to protect us and protect our freedom. has contaminated 12 million acres of I will continue to defend our Presi- cluded that mercury is a hazardous air lakes, estuaries, wetlands, 30 percent of pollutant that had to be regulated dent in this country, and let us be the national total. Nearly every State ready for any attacks. If we have to do under the strict section 112 entitled has issued warnings about eating mer- ‘‘Hazardous air pollutants.’’ it, let us go to the polls and defend our cury-contaminated fish. Seventeen war on terror. Section 112 requires that EPA issue a States have mercury warnings for maximum achievable control standard f every single inland body of water, and which would require every plant, here The SPEAKER pro tempore. Under a 11 States have issued warnings for mer- is one of the key differences, it would previous order of the House, the gen- cury in their coastal areas. require every plant to reduce mercury This is an extremely serious health tleman from Illinois (Mr. EMANUEL) is emissions by 2007 to the maximum issue for people in this country. In Feb- recognized for 5 minutes. achievable level. Instead, the Bush ad- ruary 2004, a new EPA analysis found (Mr. EMANUEL addressed the House. ministration proposes to regulate mer- that about 630,000 children are born in His remarks will appear hereafter in cury, a hazardous air pollutant under the Extensions of Remarks.) the United States each year with blood mercury levels higher than 5.8 parts section 111, ‘‘Standards of performance f per billion, the level at which the risk for new stationery permits,’’ in order The SPEAKER pro tempore. Under a of poor brain development is doubled. to allow the use of tradeable permits. Senator George Mitchell of Maine previous order of the House, the gen- The study found one in every six and the gentleman from California (Mr. tleman from Texas (Mr. LAMPSON) is women of child-bearing age has enough WAXMAN), and all of the Members of recognized for 5 minutes. mercury in her bloodstream to threat- this body who worked together in 1990 (Mr. LAMPSON addressed the House. en the health of her child. His remarks will appear hereafter in Where does this mercury come from? to write the Clean Air Act amend- the Extensions of Remarks.) Well, it comes mostly from the burning ments, I know intended for EPA to reg- ulate hazardous air pollutants under f of coal in electric generating plants; and the mercury goes up into the air, it the section of the law entitled ‘‘Haz- The SPEAKER pro tempore. Under a ardous air pollutants.’’ It is exactly previous order of the House, the gentle- travels great distances through the air, and then comes down and it gets into that simple. But the Bush administra- woman from Florida (Ms. CORRINE tion proposal delays reductions. EPA BROWN) is recognized for 5 minutes. the food chain in our bodies of water. According to the National Research agreed in court to regulate mercury (Ms. CORRINE BROWN of Florida ad- emissions by December 15, 2007. This dressed the House. Her remarks will Council, effects from prenatal exposure include mental retardation, cerebral proposal delays any regulation until appear hereafter in the Extensions of 2010 and full implementation to 2030. Remarks.) palsy, deafness, and blindness. Adult exposure can produce sensory and The cap-and-trade system they propose f motor impairments such as slurred requires only a 29 percent reduction in speech, blurred vision, tremors, and 2010 and a 69 percent reduction by 2018. THREAT FROM MERCURY So what we have is a weakening of EMISSIONS memory loss. Members may remember the expres- the Clean Air Act in a way that I be- The SPEAKER pro tempore. Under sion ‘‘mad as a hatter.’’ Well, that ex- lieve is absolutely illegal. But the EPA the Speaker’s announced policy of Jan- pression grew out of 19th century Eng- has not come to this with clean hands. uary 7, 2003, the gentleman from Maine land because hatters then were lit- Their own modeling shows that the 69 (Mr. ALLEN) is recognized for 60 min- erally driven mad because there was a percent cut will not be achieved until utes as the designee of the minority compound containing mercury that 2030 because the trading system en- leader. they used in processing the felt that courages many power plant owners to Mr. ALLEN. Mr. Speaker, I am here went into their hats. Mercury can be delay making improvements. today with the gentlewoman from extraordinarily dangerous in those Here is a quote from Jeffrey Texas (Ms. EDDIE BERNICE JOHNSON) kinds of concentrated forms. Mercury Holmstead, the assistance environ- and later others of my colleagues to also threatens our loons, our ducks, mental protection administrator in tell a story. It is not the most pleasant our mammals. Recent evidence shows charge of air. This is what he says story, but it is an important story. It is that exposure threatens reproductive today: ‘‘What our models now show is a story of the threat from mercury success, liver damage, kidney damage, we won’t get there as soon as we ex- emissions from coal-fired power plants and neuro-behavioral effects. pected we would.’’ That is what he told around the country to the health of the Like 41 million Americans, I love to the New York Times on Sunday, but American people, and it is a story of go fishing, but it has changed because the truth is the EPA knew very well

VerDate jul 14 2003 02:25 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00054 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.098 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1285 that their mercury proposal would sumption advisory. Our major fishing Mr. ALLEN. I thank my friend from take well beyond 2025. lakes are subject to such advisories. Texas and I appreciate her willingness The proposal is designed to mirror Mr. Speaker, the citizens of Texas to engage in this issue and take a lead- the President’s Clear Skies initiative. are urging us to take prompt and effec- ership role in trying to protect our Clear Skies is a classic case of tive action to clean up mercury pollu- citizens from the effects of mercury chutzpah, a triumph of marketing over tion from power plants. The Environ- pollution. substance, if I have ever heard one. mental Protection Agency’s current I want to go back to the issue that proposals on mercury fall far short of we always hear about whenever we b 1545 what the law requires. The agency’s wind up talking about new kinds of en- In July 2003, the gentleman from proposals fail to protect the health of vironmental controls on a toxic pollut- Massachusetts (Mr. MARKEY), the gen- our children and our environment. This ant. Industry always says, ‘‘It’s too ex- tleman from New Jersey (Mr. is especially true for Texas, where mer- pensive, we can’t do it’’ every single PALLONE), the gentlewoman from Cali- cury emissions would increase, not de- time. But the reduction levels that are fornia (Mrs. CAPPS) and I wrote to crease, under the proposed plan. We proposed by the EPA are really embar- President Bush asking him to correct ask the EPA to carry out the require- rassing for our country. In February, the claim made in the State of the ments of the Clean Air Act to protect the Southern Company, one of the larg- Union address that his plan would our Nation from toxic mercury con- est mercury emitters in the world, an- mandate a 70 percent cut in air pollu- tamination. We urge the agency to im- nounced that recently installed mer- tion from power plants by 2018. It was pose a 90 percent reduction in the mer- cury control technologies at the Ernest not true. In fact, the underlying EPA cury leaching from coal-burning power Gaston coal plant in Alabama are re- modeling made it clear that the reduc- plants. moving about 80 percent of the mer- tions that the President proposed Last year, EPA proposed two alter- cury right now. Right now. They are would not be achieved until years after native rules to address mercury emis- very, very close to that 90 percent 2018. We simply asked the President to sions. Unfortunately, both of these pro- standard that would be the goal. The get back to us and study by what date posals failed to meet clean air direc- company’s experts noted that this tives under section 112(d) for cleaning his proposal would actually reach that would barely comply with some draft up mercury. EPA’s proposals permit 69 or 70 percent reduction. Jeffrey versions of a MACT standard, a max- far more mercury pollution, and for Holmstead responded to our letter for imum achievable control technology years longer, than the Clean Air Act the EPA and he wrote, ‘‘The presence standard, but they are complying. allows. This is playing games with the of banking will likely result in some They are there. Furthermore, EPA’s health of our Nation. Time and again undercontrol for a short period of time own data shows that most modern scientists around the world have prov- after the decline.’’ If he knew that the coal-fired power plants can and do en the toxicity of mercury. The agen- goal was not going to be achieved, that achieve greater than 90 percent control cy’s own scientists just released a the proposal would result in undercon- of mercury and other toxic chemicals. study finding that approximately trol, how could he be surprised today According to both industry and De- 630,000 infants, as my colleague said by the agency’s predictions that 70 per- partment of Energy pilot tests and tes- earlier, that were born in the United cent reductions would not come true timony in front of the Committee on States in the dawn of this millennium when they said they would? Energy and Commerce, 90 percent re- had blood mercury levels higher than These reductions are really embar- ductions in mercury emissions are fea- what is considered safe. This is a dou- rassing. I am going to go on shortly to sible and economical today. We are not talk about some of the evidence out bling of previous estimates. Mercury emissions have also con- suggesting they should be imposed there that is absolutely compelling taminated 10 million acres of lakes and today. There needs to be some time. that, in fact, we can clean up, in most 400,000 miles of streams. Soaring mer- But this could all be done between now cases, 90 percent of the pollution from cury levels have triggered advisories and 2007 or 2008 and be completely fea- utilities burning coal with existing warning America’s 41 million rec- sible. technology. We can get very, very close reational fishermen that the fish they The data from EPA’s interim report to that standard in a relatively short catch may not be safe to eat. Further- on the control of mercury from coal- period of time. more, evidence continues to mount fired boilers demonstrates that power What I would like to do is to stop my that mercury causes reproductive prob- plants with fabric filters and wet remarks for the moment, to which I lems in wildfowl populations such as scrubbers are capturing over 90 percent will come back, and thank the gentle- loon and mallard ducks. Other fish-eat- of their mercury when bituminous coal woman from Texas (Ms. EDDIE BERNICE ing wildlife populations are at risk as is burned. There are a number of tech- JOHNSON) for being with me here today well. nical ways in which you can actually to discuss the Bush administration’s Mr. Speaker, we can address this pub- collect mercury. Carbon injection and failure to come up with a reasonable lic health and environmental problem a compact hybrid particulate collector proposal to regulate mercury emissions if we just would do it. According to baghouse, so-called, is one way of from power plants. many States, industry experts and past achieving the goal. Other industries I yield to the gentlewoman. EPA analyses, the technology to dra- like hospitals and city waste inciner- Ms. EDDIE BERNICE JOHNSON of matically clean up these plants is ators have been required to meet that Texas. Mr. Speaker, I appreciate the available and affordable. I am con- 90 percent standard for over a decade. opportunity to be here this afternoon cerned that EPA does not fully analyze In February of this year, the gen- and I thank my colleague from Maine the range of controls recommended by tleman from Maine (Mr. MICHAUD) and for being willing to come to the floor State utility and environmental and I both wrote to the Bush administra- and talk about a very serious issue. public health members of EPA’s advi- tion asking that Maine people be given I also applaud my colleagues for their sory group on this rule. I do not know the opportunity to comment on EPA’s hard work in bringing us together this what is holding EPA hostage, but once proposed mercury emissions rules. afternoon, I think there will be others, again they are failing to fulfill its rea- There is a reason why those of us in to talk about a serious public health sonability to adopt standards that pro- Maine are particularly concerned crisis that our country faces. That cri- tect the public health and environ- about it. There is four times as much sis is caused by mercury pollution. It is ment. mercury in the feathers of loons in not only a national problem, it is also I look forward to working with my Maine as there is in the feathers of a very local one as well. The State of colleagues to call on EPA to develop loons in Oregon. The wind blows west Texas leads the Nation in mercury pol- appropriate mercury standards that re- to east. It always has and it always lution. Mercury emission from power duce mercury emissions in the shortest will. Coming particularly out of those plants is the major culprit. These time possible to protect public health coal-fired power plants in the Midwest, plants dumped 8,968 pounds in 2001 and the environment. I thank my col- mercury emissions are traveling east alone. As a result, the whole gulf coast league for this opportunity to make a and northeast and contaminating region has been placed under a con- statement on this issue. many of our most scenic areas in the

VerDate jul 14 2003 01:37 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00055 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.102 H18PT1 H1286 CONGRESSIONAL RECORD — HOUSE March 18, 2004 country. We do not have a single coal- osition in Maine, and we desperately need at the State level, loons in Maine are threat- fired power plant in the State of Maine, strong federal regulation to address this ened with the highest measured mercury lev- but our mercury is coming from other problem. Despite the need for strict federal els found anywhere in the United States, due in large part to our unenviable position at parts of the country. We need help. mercury emission standards, and the fact that such standards are legally required by the tail end of the Nation’s prevailing winds, The gentleman from Maine (Mr. the Clean Air Act, EPA fails to deliver in which sweep mercury and other airborne pol- MICHAUD) and I, as I said, wrote to the this proposal. lutants from States to the west and south of Bush administration in February ask- As a matter of policy, this proposed rule is us. A quarter of Maine’s loon population is ing simply that we have the right to a flawed for two basic reasons. First, the levels considered to be at ‘‘high risk’’ from the ef- hearing, that EPA come to Maine and of reduction in mercury emissions are far too fects of mercury, and studies show that mer- hold a hearing. They refused. The clos- low. The proposed reductions not only are in- cury pollution is the decisive factor in the sufficient to protect public health and the negative loon population growth rate in est they got to us was Philadelphia. If Maine. the EPA would not come to Maine, I environment, but they are considerably less than what can be achieved through available Mercury deposition has contaminated our decided, well, we would have a hearing control technology. Second, the proposed lakes and rivers, to the extent that Maine’s there, anyway; I would call the mock ‘‘cap and trade’’ program is inappropriate for Bureau of Health has issued strict fish con- hearing, I would invite interested regulation of a toxic substance like mercury. sumption advisories for all of Maine’s lakes, members of the public. And they came, This approach allows some sources to accu- rivers and streams, as well as for coastal they came in force and their testimony mulate large quantities of ‘‘pollution cred- bluefish and striped bass. It is a sad fact, at odds with our pristine image as ‘‘vacation- its’’, which in turn allows them to continue was compelling, both as to the health land’’ and ‘‘Maine, the way life should be.’’ to pollute at high levels. The result is risks of mercury and the inadequacy of Surveys done both in Maine and nation- the Bush administration proposal. ‘‘hotspots’’ of deposition in areas downwind. ally, indicate that 10 to 20% of women of While a cap and trade program may make Mr. Speaker, I would like to submit childbearing age have blood levels of mer- good sense for regulating a non-toxic pollut- cury considered too high for the safety of a the testimony given at that hearing in ant like carbon dioxide, it is unacceptable Maine as a part of the record of this developing fetus. The Center for Disease Con- for a hazardous pollutant like mercury. trol and Prevention has found that some four proceeding here. As a matter of law, EPA’s proposal is de- million American women of child-bearing TESTIMONY OF MAINE ATTORNEY GENERAL fective in several ways. Three years ago EPA age have blood mercury levels that exceed STEVEN ROWE ON STANDARDS PROPOSED BY formally concluded that mercury is a haz- E.P.A.’s 5.8 parts per billion standard. Expo- THE ENVIRONMENTAL PROTECTION AGENCY ardous air pollutant, and therefore it is ‘‘ap- sure to mercury puts the babies born to FOR MERCURY EMISSIONS FROM POWER propriate and necessary’’ to regulate its these women at risk of brain damage, learn- PLANTS emissions from power plants under Section ing disabilities and motor skills deficits. Good afternoon. Thank you, Congressman 112 of the Act. However, EPA has now tried It is time for the Federal Government to Allen, for the opportunity to present these to reverse course, and has announced that step up to its responsibilities in this area. comments on a matter of great importance mercury may not be a hazardous air pollut- That means at a minimum enforcing the for the State of Maine and its citizens: the ant after all. Instead, the agency suggests Clean Air Act to require antiquated coal need for strict federal mercury emission that it may be able to regulate mercury burning plants to upgrade to modern pollu- standards for power plants. My office for- under Section 111 of the Act, governing New tion control technology, and to continue to mally requested that EPA hold a public Source Performance Standards. This idea require state of the art controls on new fa- hearing on this proposal in New England, but flies in the face of the plain language of the cilities. It does NOT mean weakening the al- that request was denied. With that in mind, statute, which requires that EPA conduct a ready weak law we have to be even more in- I especially appreciate your being here today formal ‘‘delisting process’’ before it can de- effective, as EPA proposes. to draw attention to this matter. cline to regulate a substance under Section Section 112(d) of the Act sets forth a ‘‘max- Regrettably, EPA’s recent regulatory pro- 112 that it has concluded is a hazardous air imum achievable control technologies’’ posals under the Clean Air Act tend to fall pollutant. EPA’s proposal to summarily re- standard to control emissions from haz- into two categories: (1) those that would de- scind its prior finding that regulation of ardous air pollution sources equivalent to grade air quality, and (2) those that would mercury is ‘‘appropriate and necessary’’ what is achieved by the best-controlled simi- prevent air quality from improving. The under Section 112 has no support in the law. lar source in the industry. When Congress agency’s New Source Review regulations are There are numerous other legal defects amended the Clean Air Act in 1990, it specifi- a notorious example of the first category. As with this proposal, and we are describing cally called for ‘‘maximum achievable’’ Attorney General, I have vigorously opposed them in detail in written comments to be clean-up of major sources of toxic air pollu- tion, including mercury. It is beyond dispute EPA’s efforts to gut New Source Review, a submitted to EPA. For our purposes today, it that EPA has the authority under the Act to part of the Act that requires the nation’s is enough to observe that the Environmental adopt a standard requiring a minimum of 90 worst polluters to install modern control Protection Agency is once again failing to percent mercury emissions reductions at all technology when modifying their plants. fulfill its responsibility to adopt standards of the Nation’s power plants. Instead, EPA These rules would cause Maine’s already se- that protect the public health and environ- had proposed two alternatives each of which rious ozone pollution problem to worsen sig- ment. Instead, the agency seems committed fail to protect the public health and carry nificantly. We sued the agency in federal to re-interpreting the laws it administers in out the requirements of the Clean Air Act— court to prevent these reforms from going an attempt to avoid that responsibility. If (1) that the Agency has discretion, but is not into effect, and won a major victory on this proposal is finalized in its current form, required, to apply a weak emission standard Christmas Eve when the court issued a stay we will likely be forced to file another law- suit in federal court to force EPA to do its to existing sources, or alternatively (2) cre- until the case is decided on the grounds that ating a novel ‘‘pooled performance standard’’ the rules appear to violate the Clean Air Act. job. I sincerely hope that will not be nec- essary. Thank you. that is apparently designed to escape the re- EPA’s proposed mercury rule falls into the strictions of the law entirely. Both alter- second category: a new program that will natives fall far short of the clean air stand- prevent us from realizing the reductions in TESTIMONY OF SENATE MAJORITY LEADER SHARON TREAT, HEARING ON FEDERAL MER- ards required and should be rejected. mercury emissions that the law promises. I think it is important for EPA to recog- CURY EMISSIONS PROPOSALS This is not a bold new environmental initia- nize the longstanding efforts of this State to tive, but a giveaway to the owners of coal- Congressman Allen, I am Sharon Treat, make sure that we have done everything we burning power plants. Majority Leader of the Maine Senate. I am a can to reduce and even eliminate sources of Atmospheric mercury deposition is a seri- member and former chair of the Mercury mercury pollution here in Maine. We have ous public health and environmental prob- Products Advisory Council and an environ- done so even though our actions have placed lem. Mercury is a powerful neurotoxin that mental lawyer. I am here today to testify in practical and cost burdens on our citizens, accumulates in the body. EPA’s own studies opposition to proposals by the federal Envi- business and government, because we recog- show that over 600,000 babies born in this ronmental Protection Agency (EPA) which nize we must take responsibility for that country each year may be exposed to levels will significantly undermine the effective- part of the problem we have ourselves cre- of mercury in the womb so high that it can ness of the Clean Air Act with respect to ated. affect their brain development. Maine and 44 control and reduction of mercury emissions, One of my very first bills in 1990, as a other states have issued fish consumption leading to even dirtier air in Maine and sig- freshman State representative, was legisla- advisories because of mercury levels found in nificant, harmful, health and environmental tion to ban mercury-containing batteries our freshwater fish. Mercury is also poi- impacts. from garbage incinerators. I subsequently soning the wildlife that feed on those fish. Maine has gone to extraordinary lengths to passed a resolve that required the State to Loons in northern New England, the classic control mercury emissions from sources identify all sources of mercury within and symbol of our wilderness lakes, have the within our State, and for good reason. It is outside of the State and to develop a strat- highest levels of mercury in the country. hard to think of a symbol of the purity and egy to control and reduce that mercury. Mercury emissions from power plants to wildness of Maine’s north woods more ubiq- From that legislation, a comprehensive re- our south and west are a major source of dep- uitous than the loon. Yet despite our efforts port was developed which provided scientific

VerDate jul 14 2003 01:37 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00056 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.104 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1287 data that established the extent to which prohibits the sale of most mercury thermo- Standards for Reduction of Mercury Emis- mercury deposition comes from sources out- stats used in non-manufacturer applications sions From Coal and Oil-Fired Electric Util- side the State, as well as in-state sources (effective January 1, 2006), and requests DEP ity Power Plants and Maximum Achievable such as garbage incinerators. That report to submit a comprehensive strategy to fur- Control Technology (MACT), Published in has led to a series of laws taking stringent ther reduce the mercury content of products the Federal Register on January 30, 2004 (69 measures to control in-state sources. by January 2003. FR 4692), EPA Docket ID Nos. OAR–2002–0056 In the spring of 2000, the 119th Legislature An Act to Change the Reporting Require- and A–92–55.) passed An Act to Reduce the Release of Mer- ments for the Mercury Switch Removal Pro- Presented at Hearing in Augusta, ME cury into the Environment from Consumer gram [P.L. 2003,c. 6] requires the DEP to file March 1, 2004 Products, (Public Law 1999, c.779). The law its initial status report on this program by My name is Brownie Carson. I testify here defines mercury-added products to include January 1. 2004. The program provides for the today on behalf of the Natural Resources thermostats, thermometers, electrical removal of mercury switches from motor ve- Council of Maine, a citizen supported envi- switches, relays or other electrical devices, hicles before they are crushed and shredded ronmental advocacy organization with 8000 scientific and medical devices, and lamps if for the scrap metals market. members and supporters. Thank you to Con- mercury is added during manufacture of the An Act to Reduce Mercury Use in Meas- gressman Tom Allen for giving us all the op- product. The law established a Mercury uring Devices and Switches [P.L. 2003, c. 221], portunity to express our views on the crit- Products Advisory Committee (Committee) bans the sale of most mercury switches, re- ical environmental issue of proposed na- to advise the Department of Environmental lays and measuring devices beginning July 1, tional standards for mercury emissions from Protection (DEP), the State Planning Office 2006. Measuring devices include barometers, electric utility power plants. We would like (SPO) and the Legislature on actions needed gastrointestinal tubes, flow meters, hydrom- to thank you and the entire Maine Congres- to prevent and reduce the environmental re- eters, hygrometers, manometers, pyro- sional delegation for your efforts on this and leases of mercury from consumer products. meters, sphygmomanometers and thermom- related clean air and environmental matters. The law contains several key provisions in- eters. The effective date of the ban coincides We commend, for example, Senator Collins tended to increase the amount of mercury- with the effective date of a similar law in strong leadership in introducing legislation added products collected for recycling. These Connecticut, and gives manufacturers time that would eliminate and retire mercury. provisions include: to phase in non-mercury alternatives or seek On the issue at hand, we conclude that As of July 15th, 2002, businesses and public an exemption. The law allows the DEP com- both the two alternative proposals put for- entities may not knowingly place a mercury- missioner to grant an exemption from the ward by the U.S. Environmental Protection added product in the solid waste stream sent ban if the manufacturer of the mercury prod- Agency (‘‘EPA’’ or ‘‘Agency’’) for mercury for disposal. emissions standards are environmentally un- As of January 1, 2005 this disposal ban is uct demonstrates that functional non-mer- sound and legally deficient. These proposals extended to all Maine residents. cury alternatives are not available. The development and implementation of An Act to Require the Installation of Den- go in the wrong direction. These things we know: an aggressive education and outreach cam- tal Amalgam Separator Systems in Dental (1) Power plants that burn coal and oil re- paign by DEP to inform Maine citizens and Offices [P.L. 2003, c. 301], requires the instal- lease mercury and are the largest source of businesses about the disposal bans and prop- lation of amalgam separator systems in den- mercury released to the environment in the er waste management techniques. tal offices by December 31, 2004. The separa- State assistance to municipalities and re- tors trap amalgam particles to prevent the United States; gional associations to develop collection pro- discharge of mercury in dental office waste- (2) The mercury emitted from these plants grams. water. If installed prior to March 20, 2003, the is transported downwind where Maine and A commitment by the State, within avail- separators must achieve a minimum of a other Northeast states receive a dispropor- able resources, to develop and implement a 95%, while separators installed on or after tionate share; capital investment grant program for public that date must have a minimum of a 98% re- (3) In the environment, mercury from infrastructure development and improve- moval efficiency as determined through test- power plant emissions is converted into ments to enable municipalities to collect ing under ISO 11143. methylmercury, the dangerous organic form and recycle mercury-added products and uni- Maine has also put state dollars into these of the element; versal wastes. programs. In addition to paying for DEP (4) Methylmercury builds up and is mag- Since the passage of P.L. 1999, c. 779, the staff to administer these programs and fund- nified in the food chain making it a major Legislature has passed additional mercury ing our defense of the auto switch provisions environmental and public health hazard; legislation, including the following: in court, we have also put funding into mu- methylmercury concentrations in fish are An Act to Further Reduce Mercury Emis- nicipal mercury collection programs. In 2000, the worst pathway for human exposure; sions from Consumer Products, P.L. 2001, c. the Legislature allocated $438,000 from the (5) Exposure to methylmercury, a potent 373. This bans the sale of mercury fever ther- Solid Waste Management Fund to jump start neurotoxin, puts small children, infants and mometers and dairy manometers; requires the activities mandated by the legislation. fetuses at risk of brain damage, learning dis- manufacturers to provide written notice to In November 2002, Maine voters approved an abilities and motor skills deficits; (6) An unacceptably high proportion of the Department before offering a mercury- environmental bond request, of which women in Maine and nationally have blood added product for sale in Maine; prohibits $900,000 was slated to fund completion of the levels of mercury considered too high for the the purchase of mercury or mercury com- shed deployment statewide and the infra- safety of a developing fetus; and pounds for use in schools; and requires man- structure/collection needs. We are still strug- (7) Mercury also has insidious effects wild- ufacturers who sell products to hospitals to gling with identifying funding sources to as- life: Maine’s loon population is at ‘‘high provide a certificate of mercury content sist communities with the ongoing costs as- risk’’ with a negative growth rate attributed upon hospital request. sociated with these collection and recycling An Act To Address The Health Effects of to mercury exposure. Maine bald eagles have efforts. In the private sector, many Maine Mercury Fillings was enacted as P.L. 2001, c. high mercury body burdens and the lowest businesses have also incurred costs installing 385. It requires the state Department of reproductive rate of any major bald eagle pollution control equipment to meet tough Human Services, Bureau of Health to prepare population in the country; in-state mercury emission standards and a brochure and a poster on alternative dental These facts are undisputed. EPA’s own complying with various mercury product restorative materials and procedures and February 1998 report to Congress summa- separation and collection mandates. their health and environmental impacts, and rized how mercury emissions from power Needless to say, Maine has done its part, for dentists who use mercury to display the plants caused toxic exposures and grave having enacted the most sweeping mercury poster and provide patients with the bro- threats to public health. control laws in the country. While we are chure. There is a ready solution both technically An Act to Prevent Mercury Emissions more than willing to do whatever we can, and legally. The technical solution is simply when Recycling and Disposing of Motor Ve- our pollution from mercury is in large part a to retrofit each of the 1,100 coal fired power hicle was enacted as P.L. 2001, c. 656. It pro- federal responsibility: it comes from outside plants with modern emission control equip- hibits the sale of mercury switches in auto- the state, and there is already a requirement ment. mobiles as of January 1, 2003 and establishes under the Clean Air Act for the federal gov- Commercially available technologies and a statewide system to collect, consolidate ernment to address it. It is time for the EPA techniques in use today achieve up to 91 per- and recycle the switches. A bounty of $1 is to comply with the law, not undermine it. It cent emissions reductions over uncontrolled provided to people who remove switches and is time for the EPA to provide assistance to levels—and do so at a cost of approximately return them for recycling, with the money to states dealing with this toxic metal which 1/50th of a penny per KWh. Up to 98 percent be provided by the auto manufacturers. Al- threatens our children and our wildlife, not reductions have been observed in tests of the though challenged in court by the auto man- make our efforts more difficult. Thank you. most modern mercury controls. ufacturers (who argued in part that such pro- These conclusions are supported by EPA’s grams are a federal, not state, responsi- STATEMENT OF EVERETT ‘‘BROWNIE’’ CARSON, own analysis in 2001 which found that the use bility), this law was recently upheld by the EXECUTIVE DIRECTOR OF THE NATURAL RE- of currently available pollution controls at Federal District Court. SOURCES COUNCIL OF MAINE each power plant could reduce total emis- An Act to Phase Out the Availability of (On the U.S. Environmental Protection sions by 90% by 2008. The Northeast States Mercury-added Products [P.L. 2001, c. 6201. It Agency’s Proposed Rulemaking on National for Coordinated Air Use Management in 2003

VerDate jul 14 2003 02:36 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00057 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.050 H18PT1 H1288 CONGRESSIONAL RECORD — HOUSE March 18, 2004 reviewed the pollution control technologies court challenge must not deter EPA from counted for by looking for natural sources of and affirmed 90% reductions can be achieved doing what is necessary to protect public mercury or local pollution. The facts led to with existing technologies. health and the environment. a number of conclusions and actions that Moreover, there are no legal obstacles to We urge EPA to abandon its weak pro- were among the most discouraging of my achieving these reductions. Section 112 of posals and instead follow the Clean Air Act tenure as Chief Health Officer in Maine. the Clean Air Act, that regulates hazardous as written. Genuine maximum achievable In collaboration with four Departments of air pollutants, sets forth the ‘‘maximum control standards are technologically fea- State Government (Agriculture, Environ- achievable control technologies’’ standard. sible, legally sound and eminently defen- mental Protection, Human Services, and In- The Act contemplates control of emissions sible. We urge EPA to recognize the health, land Fish and Wildlife), we were forced to from hazardous air pollution sources equiva- environmental and economic importance of issue a statewide warning recommending a lent to what is achieved by the best-con- this outcome to Maine and the nation. strict limit on the consumption of fish trolled similar source in the industry. When Thank you again for the opportunity to caught in Maine lakes by women of child- Congress amended the Clean Air Act in 1990, present our views on this important issue. bearing age and children under 8. To my it specifically called for ‘‘maximum achiev- knowledge ours was the first such warning in able’’ clean-up of major sources of toxic air STATEMENT OF LANI GRAHAM, MD, MPH, this country, but, sadly Maine is now one of pollution, including mercury. It is beyond FAMILY PRACTICE PHYSICIAN AND FORMER 28 states that have issued statewide dispute that EPA has the authority under CHIEF HEALTH OFFICER OF THE STATE OF advisories, including three new states in the Act to adopt a standard requiring a min- MAINE 2002, Florida, Illinois and Rhode Island. I imum of 90% mercury emissions reductions (On the U.S. Environmental Protection also am aware that New Brunswick, Canada at all of the nation’s power plants. Agency’s Proposed Rulemaking on Stand- has had to follow suit, making this an inter- In Maine, a remarkable consensus on mer- ards for Reduction of Mercury Emissions national problem. Air pollution does not re- cury pollution has led to positive action. From Coal and Oil-fired Electric Utility spect state or international boundaries. In 1997, the Maine Legislature called for a Power Plants and the Use of Maximum It is very sad that in these times when report and plan of action to control mercury Achievable Control Technology (MACT), childhood obesity is such a problem and good pollution. The State’s goal, set back then, published in the Federal Register on Janu- nutrition is the hope of the future, that any was ‘‘to ensure that, over time, Maine people ary 30, 2004 (69 FR 4692), EPA Docket ID Health Official must issue warnings on the and wildlife are able to enjoy the full use of Nos., OAR–2002–0056 and A–92–55.) consumption of fish, widely respected as healthy food, because it has become con- the state’s waters and fisheries’’ and to Good afternoon. I come here today to tes- ‘‘make Maine’s fish safe to eat and to protect taminated through our carelessness. But tify on behalf of the people of Maine, and worse, from a public health point of view the our wildlife and other resources.’’ particularly the children of Maine, who can- Over ensuing years Maine took a series of warning approach to the protection of not speak for themselves. I am a Family human health is highly undesirable. It is not actions on mercury, including the following: Practice physician, but my real love effective. No matter how many lakes are Before 2000, we achieved mercury emission throughout my professional life has been posted or warnings issued, large portions of reductions of more than 90% at four munic- public health. Two alternative proposals the population are likely to be adversely im- ipal waste combustors achieving substantial have been offered by the U.S. Environmental pacted despite your best efforts. What about reductions, meeting or exceeding federal lim- Protection Agency (EPA) to reduce mercury the immigrant populations for whom fish is its, or where inapplicable applying equally emissions from electric utility plants. Nei- a basic part of the diet and who may not stringent state limits; ther is acceptable and both will condemn the speak English? What about the Native Amer- In 2000, we closed the Holtra-chem, the next generation of Maine people to adverse icans who similarly depend on locally caught heavily polluting chlor-alkli plant. In 2002, health impacts from toxic levels of mercury fish? What about people with limited edu- we made arrangements for safe removal and in our environment, to say nothing of the cation who may not understand the storage of 185,000 pounds of surplus mercury terrible impacts on our wildlife and the nat- advisories or those who just don’t believe from the site; ural resources. there? There is some parallel to the warnings In 2003, we enacted a law that bans the sale Rather than repeat a lot of the very good on cigarette packages. Lead paint is another of most mercury-added switches, relays, and scientific information that you have already example. Parents are warned of the hazard, measuring devices; and heard and will continue to hear, regarding but children get poisoned by the thousands In 2002, we enacted a landmark law to re- why these proposals must be scrapped, I anyway. History has taught us that com- quire automobile manufacturers to recover want to provide a little history lesson. It is plicated medical advisories are insufficient mercury-containing switches from vehicles said that those who do not learn the lessons to be protective of the public’s health. De- before they are scrapped. of history will be condemned to repeat them. spite the warnings people, particularly chil- When Maine’s mercury auto switch law This appears to be the reckless course that dren, get sick, become damaged for life, or was challenged in Court, the State mounted will be embarked on if these proposals are die. Yet these proposed rules indicate clearly a legal defense. On February 17, federal Dis- not substantially altered. that another generation is being asked to re- trict Judge John Woodcock turned back the More than a decade ago, when I was the peat this history lesson. Unless our federal carmaker’s challenge and upheld the auto Chief Health Officer for this state, I received government takes a different course of ac- switch law in its entirety. a letter from a Park Official at Acadia Na- tion, one designed to move us more rapidly The decision rejected all of the carmakers’ tional Park. The letter revealed that a fish toward reducing air pollution, the advisories claims, saying that burdens were reasonably had been caught in one of the park’s lakes are likely to remain and the children of ‘‘imposed on manufacturers in recognition of and tested for mercury. I could see imme- Maine will continue to pay the price of this the fact that the need for a mercury switch diately that the provided results indicated history lesson not learned. recovery program existed solely by virtue of that the fish contained mercury at a level Another awful lesson that the fish from the manufacturers’ incorporation of these many times what would be considered safe Acadia National Park taught us is that mercury-laden components in their auto- for a child to consume on a frequent basis. Maine was not going to be able to solve this mobiles for roughly ten years after the in- The letter queried whether I was going to problem on its own. The extent and distribu- dustry’s cognizance of the mercury disposal consider ‘‘posting’’ the lake, on the assump- tion of the mercury contamination indicated problem.’’ tion that this particular lake was uniquely to us that local factors could not account for This is important, because it points the contaminated. Needless to say, I was both it. The mercury had to be coming from some- way to what the federal government should shocked and frightened. Who in Maine, or where else. We now know that out beautiful be doing with mercury pollution from power even from out of state, might have already state is the recipient of tons of airborne mer- plants. Utilities should simply be made to been affected by eating fish caught in this cury coming from other states. Nevertheless clean up. That would be 90 percent reduc- lake? It was bad enough that any lake in on the theory that it is best to ‘‘keep your tions at all existing coal-fired power plants Maine might be significantly contaminated own house clean’’ first, Maine people have by 2008, that would bring total mercury by a known neurotoxin, but that the par- worked hard over the last decade to reduce emissions down from the current 48 tons to ticular lake would be in the heart of our all local sources of mercury contamination. five tons annually. ‘‘EPA’s proposal would widely admired national park was a par- But it will never be enough. Without support still allow be allowing the release of 15 tons ticular blow. Tragically, that blow was just from outside this state, the advisories are of mercury from the power plants in 2018.’’ the beginning of a lengthy investigation that likely to remain in place. More than a dec- Operators of power plants have been dodg- revealed that the lake was not uniquely con- ade has gone by since that Acadia National ing pollution controls for decades. On the taminated, and that it would not be suffi- Park fish brought its warning. I urge you not verge of achieving what the Clean Air Act ciently protective of public health to post to condemn us and other sites around this was passed for, legal counsel for the Bush that particular lake or even a dozen such country to another twenty years of contami- Administration and EPA say that they fear lakes. Based on a study of fish caught from nation when real progress can be made now. that if they require maximum achievable lakes all across Maine, it was clear that a I urge you to abandon these proposals and re- controls, as specified by the law, the utilities great many lakes were contaminated, and turn to the Clean Air Act as written. will challenge the rules in court. Threat of a that the contamination could not be ac- Thank you for your attention.

VerDate jul 14 2003 02:29 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00058 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.052 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1289

MAINE AUDUBON, mercury exposure on the young, has lead for toxic pollutants, instead of issuing ‘‘New Falmouth, ME, March 1, 2004. both the federal and state governments to Source Performance Standards’’ for mer- Re EPA’s proposed National Emission Stand- post advisories against consuming certain cury, which are far less stringent. The EPA’s ards for Hazardous Pollutants; and, in fish. The state of Maine along with a major- own scientists two years ago concluded that the Alternative, Proposed Standards of ity of other states, advises women who 90 percent reductions are possible using ex- Performance for New and Existing Sta- might get pregnant not to eat most types of isting technologies. tionary Sources: Electric Utility Steam freshwater fish including rainbow trout and The EPA must abandon the current pro- Generating Units; Docket ID No. OAR– bass. posal allowing the trading of mercury pollu- 2002–0056, 69 Fed. Reg. 4652 (January 30, Mercury contamination is also a threat to tion, which lets polluters continue to poison 2004). recreational fishing—a vital piece of our our air and waters. Trading mercury emis- state economy. Recreational fishing is a Good afternoon, Representative Allen, sions is unacceptable from a public health multi-billion dollar industry in Maine; an- members of the Legislature, fellow and public policy perspective, because it cre- glers in Maine spent more than $250 million Mainers . . ., my name is Susan Gallo: I rep- ates new local ‘‘hot spots’’ of even mercury in 2001 alone. Studies indicate that mercury resent Maine Audubon and our 11,000 mem- contamination—leaving some communities contamination has a direct impact on where bers and supporters. at risk more than others. people choose to fish, how often they go, and Representative Allen, we greatly appre- The EPA should not accept guidance from for how long they choose to fish. the Bush Administration which would set ciate your continued leadership and good Wildlife that have no choice but to eat fish work on behalf of Mainers with regard to the rules for power plants that give big energy high in mercury are at risk from the accu- special treatment—allowing them to put 6 to control of mercury pollution. The EPA has mulation of mercury in their systems as put forward several proposals, none of which 7 times more mercury into the air than the well. Maine’s loons have the dubious distinc- law allows, and giving them an extra decade provides the degree of public health protec- tion of having higher levels of mercury in tions mandated by the Clean Air Act. We are to clean up. The EPA should hold industry to their blood than loons in any other state. the highest standard, and uphold—not weak- here today to share with you our deep con- Nearly 30% of Maine’s common loon popu- cern that the EPA’s proposals are not only en—the provisions of the Clean Air Act. lation is at ‘‘high-risk’’ for mercury con- We respectfully ask that you convey to many times weaker than what is actually re- tamination and is less likely to reproduce as quired by Clean Air Act, but if accepted will EPA Administrator Leavitt our testimony, a result. Loons accumulate high levels of’ urging the EPA to improve protections of cause irreparable harm to the health of mercury in their blood because their diet Maine’s waters, wildlife and people, particu- human health and wildlife by strengthening, consists primarily of freshwater fish, which not weakening rules regulating mercury larly women and children, and fall far short often harbors high levels of mercury. Some of what is urgently needed. emissions to the level that we know is tech- loons exposed to high levels of mercury in nologically feasible and morally imperative. Power plants are ‘‘major emitters’’ of haz- Maine’s environment do not nest success- ardous air pollution, which means that each fully because they do not spend enough time SIERRA CLUB, MAINE CHAPTER, plant emits more than 10 tons per year of incubating their eggs. Others fail to feed one kind of hazardous air pollutant or 25 Portland, ME, March 1, 2004. their young once they hatch, leaving chicks Re Environmental Protection Agency Dock- tons per year of all the 188 hazardous air pol- to die from starvation. Loons in Maine expe- lutants listed in the Clean Air Act. Coal- et Center, Attention Docket I.D. Number rience higher levels of mercury in their OAR–2002–0056. fired plants are the nation’s largest source of blood, feathers and eggs than in any other Why is the Bush Administration rewarding cor- mercury air emissions, emitting approxi- state. Also, because loons are able to elimi- porate polluters at the expense of our chil- mately 48 tons of mercury each year. One- nate mercury from their system when they dren’s health and safety? third of a gram of mercury per year is lay eggs, loon eggs from Maine also have enough to contaminate all the fish in a 25- higher levels of mercury than those from any Thank you Congressman Allen, for holding acre lake. other state. Other fish-eaters like osprey and a hearing on this issue in Maine. My name is Maine, along with the other New England kingfisher are subject to similarly high lev- Maureen Drouin, I live in Hallowell, Maine, states, bears the brunt of the nation’s air- els of mercury from eating fish from Maine’s and I am here representing the 5,000 Maine borne mercury pollution. Maine has more waters. It is imperative that we do what we members of the Sierra Club. than 30,000 miles of rivers, and almost a mil- can now to reduce the impact of mercury on The Maine Chapter of the Sierra Club calls lion acres of lakes—but these waters harbor Maine’s loon population and on other fish- on Administrator Leavitt to throw out dangerously high levels of mercury—so dan- eating wildlife. If we wait until wildlife pop- EPA’s proposal to regulate mercury emis- gerous, that in 2002, Maine posted health ulations have significantly declined, it will sions and instead craft a serious plan that warnings for all of our lakes and rivers state- be too late. adequately protects American children from wide. The EPA and 43 states, including Maine Audubon has been a leader in work- harmful mercury. Specifically, we call on Maine, have posted warnings urging people ing to reduce mercury pollution and protect the EPA to require 90% reductions in mer- to avoid or limit consumption of fish. Con- the health of Maine’s people as well as wild- cury emissions from ALL coal-fired power suming mercury-laden fish can damage the life. Indeed Maine has made substantial plants by 2008. developing brain and nervous system and can progress in developing legislation to curb the Coal-fired power plants constitute the larg- lead to birth defects; such as cerebral palsy, use of mercury-added products as well as the est source of industrial mercury emissions in delayed onset of walking and talking, and collection of household hazardous waste, for the United States. This mercury falls to learning disabilities. Relying on fish con- example. But these efforts, while valiant and earth through rain and snow and enters sumption advisories will not solve the prob- very much needed, do not address the largest lakes, rivers, and estuaries. Once there, it lem. We must reduce the contamination at source of mercury pollution—emissions from changes into its most toxic form, its source. power plants beyond Maine’s borders. The methylmercury, and accumulates in fish tis- Because Maine is subject to the highest current EPA and Bush Administration pro- sue. Americans are exposed to mercury pri- mercury contamination in the U.S., and posal falls far short of what is needed. marily by eating contaminated fish. given the impact already felt by both people The Clean Air Act requires that power Mercury poses a serious threat to Maine’s and wildlife, it is imperative Maine’s con- plant mercury emissions be cut by 90 percent families: cerns be heard. by 2008 and ensures that these reductions As with many toxic pollutants, children The accumulation of mercury in Maine’s occur at each and every one of the nation’s are the most susceptible to harm from mer- environment has reached epic proportions, oil- and coal-fired power plants, the coun- cury. with mercury levels in rainfall in parts of try’s largest industrial source of mercury air New estimates by the EPA indicate that Maine up to 23 times higher than the EPA emissions. In 2000, the EPA listed power one in six U.S. women of child-bearing age standard for human health. Mercury is also plants as a category for which MACT stand- have mercury levels in their blood high accumulating in Maine lakes at an alarming ards must be developed. But one of the new enough to put their babies at risk. rate, creating deadly habitat for fish-eating proposals would ‘‘de-list’’ power plants, with- During December 10–11, 2003, the FDA and birds and mammals. Moreover, people are at out any of the public health and environ- the EPA issued a draft joint warning to preg- risk when they eat fish containing high lev- mental justifications mandated by the Clean nant women, women who may become preg- els of mercury. As you know, it is no longer Air Act. Such de-listing is illegal. nant, and nursing mothers against eating safe for pregnant women, nursing mothers, The EPA should uphold the law. Instead of certain types of mercury-laden fish. and young children to eat certain fish from setting a far weaker standard—in effect In 2001, the EPA estimated that if current our waters. We must act to reduce children’s treating power plants’ mercury emissions as clean air laws were enforced in conjunction exposure to mercury as we have done to re- non-hazardous air pollution—the EPA must with the use of current technology, mercury duce children’s exposure to lead in the envi- abide by its prior decision that power plants pollution would decrease by 90% by 2008. ronment. must be regulated according to Maximum Why is the Bush Administration rewarding A recent report from the Centers for Dis- Achievable Control Technology (MACT) lev- corporate polluters at the expense of our ease Control and Prevention found that one els. children’s health and safety? in twelve women of childbearing age already The EPA should continue to regulate mer- Congressman, you and Representative has mercury levels above EPA’s safe health cury emissions from power plants under the Waxman recently sent a letter to EPA Ad- threshold. Adverse neurological effects of MACT approach required by Clean Air Act ministrator Leavitt requesting information

VerDate jul 14 2003 02:36 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00059 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.055 H18PT1 H1290 CONGRESSIONAL RECORD — HOUSE March 18, 2004 regarding a report in The Washington Post proach mandated by the Clean Air Act. Mar- toxics that ‘‘may result in cancer in hu- that portions of EPA’s latest mercury air tha Keating, the CATF representative to the mans,’’ as is the case with nickel from oil- pollution control proposal may have been Working Group, is presenting today in North fired units as recognized by the Agency in ‘‘copied word-for-word from industry lob- Carolina oral testimony on the MACT alter- 1998 and 2000, the Administrator must deter- bying materials.’’ native proposed by the Agency in this rule- mine that ‘‘no source in the category . . . You pointed out that ‘‘Specifically, it ap- making package. I will therefore limit my emits such hazardous air pollutants in quan- pears that EPA has proposed a regulatory remarks to the inadequacies, both legal and tities which may cause a lifetime risk of approach to mercury air pollution that in from a public policy perspective, of the alter- cancer greater than one in one million to the part is copied word-for-word from memos native New Source Performance Standards individual in the population who is most ex- prepared by the law firm Latham & Watkins, and cap and trade approach contained in the posed to emissions of such pollutants from which represents some of the largest pol- proposal. the source.’’ For air toxics like mercury, the luters in the country.’’ EPA first listed mercury as an air toxic in Administrator must determine ‘‘that emis- Both Jeffrey Holmstead, EPA’s Assistant 1971. The public health effects of this toxic sions from no source in the category or sub- Administrator for Air and Radiation, and are not just coming to light, we have known category concerned . . . exceed a level which William Wehrum, Mr. Holmstead’s chief for over a century about neurological dis- is adequate to protect public health with an counsel, worked for Latham & Watkins prior orders stemming from exposure to high lev- ample margin of safety and no adverse envi- to assuming their positions at EPA where els of mercury in the environment. Each ronmental effect will result from emissions they have played key roles in the mercury year, the science improves, and we learn from any source.’’ Neither of these deter- pollution rule-making process. more, for example, about how eating mer- minations is supportable on the record be- According to the Center for Responsive cury contaminated fish leads to children’s fore the Agency, as we will point out in our Politics, the Energy Industry, which would delayed language development, impaired detailed comments. memory and vision, problems processing in- be affected by these rules, gave nearly $50 Finally the proposed cap and trade ap- formation and impaired fine motor coordina- million in campaign contributions to the Re- proach is not supported by the Act and rep- tion. publican Party during the 2000 election resents very bad public policy. The tonnage cycle. Of that amount, $2.9 million went di- The Center for Disease Control and Preven- tion has recently noted that 1 in 12 women of caps are transparently based on the legisla- rectly to the Bush-Cheney campaign. tive targets in the Administrations Clear Perhaps this is why the Bush Administra- childbearing years in the United States have unsafe levels of mercury in their blood. Skies approach to utility regulation, and do tion is rewarding corporate polluters at the not go near far enough or fast enough—ei- expense of our children’s health and safety. EPA’s own Federal Advisory Committee on Children’s Health Protection has noted its ther to adequately protect public health, or Last spring, I went fly-fishing with a few to satisfy the requirements set out by Con- friends at Little Lyford Pond Camps in T7 concern that this proposed rule package does not go as far as possible towards reducing gress to govern the regulation of hazardous R10. In the heart of the 100-mile wilderness air pollutants. of Maine, the ponds there are remote and emissions of mercury from the electric util- pristine and constitute the headwaters of the ity industry. The Agency asserts broad authority under West Branch of the Pleasant River. The Existing coal-fired power plants are the section 111 to establish a cap and trade pro- brook trout fisheries there date back 10,000 largest uncontrolled industrial source of gram for listed hazardous air pollutants, al- years to the retreat of the last glacier. I mercury in the United States today. Con- though no such authority is articulated in thought about how rewarding it would be to gress recognized this when it drafted the the statute. Resorting to the tired and long catch one of these primeval fish and cook it Clean Air Act Amendments of 1990, when it discredited argument that since it is not ex- for dinner. But even far away in T7 R10, the listed mercury under section 112, and de- pressly prohibited, an action must be allow- fish are contaminated by upwind pollution, manded to be kept in the loop as your Agen- able, the Agency severely overreaches in this and Mainers, especially women and children, cy made its determination whether to regu- proposal. are advised to limit their fish consumption. late hazardous air pollutant emissions from Furthermore, while the Agency asserts Maine is one of 19 states that have issued the electric generating industry. that a 34 ton 2010 target is based on what can statewide fish advisories for all of their in- EPA now seeks to administratively rewrite and must be achieved to control other con- land freshwater lakes and rivers. section 112 of the Act in an effort to try to ventional pollutants for the IAQR, the Act We have the solutions to reduce mercury find a way to treat mercury differently from requires far more than this level of effort for pollution now and we should implement the other 187 air toxics listed in the Act. the control of a hazardous air pollutant. them immediately to protect our commu- Rather than regulating the power industry Even if EPA attempted to justify this cap nities. under the ‘‘Maximum Achievable Control based on the results of its MACT approach, Thank you again for holding this hearing Technology’’ approach required by the Act, the MACT floor emissions levels EPA has and for the work you are doing to protect EPA instead proposes to finalize New Source conjured up in this proposal to support a 34 Maine’s children by decreasing mercury pol- Performance Standards under section 111, for ton emissions level are themselves fun- lution. mercury emitted by new coal-fired power damentally flawed, legally and technically, plants, and a cap and trade system including as Ms. Keating is testifying in North Caro- caps of 34 tons of mercury by 2010 and 15 tons TESTIMONY OF ANN BREWSTER WEEKS (DELIV- lina today. in 2018. ERED BY JONATHAN LEWIS), CLEAN AIR TASK This aspect of your proposal is completely Finally, even if it were authorized by the FORCE, BOSTON, MA without merit. Act, the Administration’s approach in the (Before the U.S. Environmental Protection First, an NSPS approach to regulating haz- proposed cap and trade program is just abys- Agency Regarding Proposed National Emis- ardous air pollutants emitted by the utility mal public policy. Despite the fact that 60% sion Standards for Hazardous Air Pollutants; industry is simply not authorized by the of the mercury emitted by U.S. power plants and in the alternative, Proposed Standards Clean Air Act. Congress revised section 112 is deposited locally or regionally, the pro- of Performance for New and Existing in 1990 in an effort to promote faster regula- posal would do absolutely nothing to avoid Sources: Electric Utility Steam Generating tion of hazardous air toxics, through the the creation of toxic hot spots—geographic Units, 69 Fed. Reg. 4652 (January 30, 2004), identification and the MACT regulation of areas that will experience even more mer- Docket No. OAR–2003–0056.) the industrial categories of most concern. cury contamination than at present, because Good afternoon. For the record, my name EPA listed coal- and oil-fired power plants local sources are permitted to trade away is Jonathan F. Lewis, and I am an attorney under section 112(c) in 2000, which triggered the requirement to reduce their emissions with the Clean Air Task Force. I am appear- the requirement to issue MACT standards for levels. The caps are set at ‘‘no action’’ levels, ing today to provide the testimony of Ann all hazardous air pollutants emitted by the furthermore: on the final pages of the pro- Weeks, CATF’s Litigation Director. Ms. industry. Congress did not direct the use of posal, the Agency admits that meeting the Weeks was an alternate member of EPA’s section 111 for utility industry HAP air emis- mercury caps will require very little (if any) Electric Steam Generating Units MACT sions, as it did for solid waste combustors in effort beyond controlling for conventional Rulemaking Working Group of stakeholders Clean Air Act section 129. If Congress had pollutants. ‘‘Look,’’ the Administration from industry, environmental organizations, meant to grant such authority to the Agen- seems to be saying to the industry—‘‘just and state governments, which offered the cy, it clearly knew how. It chose not to do control your conventional pollutants a little Agency a range of recommendations for the so. further, and we will give you a hall pass on development of a MACT standard for EGUs, Second, your attempt to ‘‘de-list’’ the util- mercury.’’ This approach is taken despite in the Fall of 2003. ity industry in order to advance your section ample evidence, well-known to the Agency, Now the Agency proposes both a weak 111 proposal does not meet the express terms that much deeper cuts in mercury and other MACT standard and a radically different al- of the Clean Air Act, and in any event is hazardous air pollutants are achievable cost- ternative approach to the regulation of unsupportable on the merits. Section effectively from the industry in the short power plant hazardous air pollutants. EPA’s 112(c)(9) of the Act requires that a listed in- term. It is taken despite the clear require- alternative approach not only is radically dustrial category can be deleted from the ments of the Clean Air Act that a listed in- different than the approach considered by 112(c) list only if certain specific statutory dustry must be required to make the max- EPA and the stakeholders in the Working criteria are met. Your Agency has not even imum reductions achievable, and to do so Group, it is radically different than the ap- attempted to satisfy these criteria. For within 3, or at most 4 years of a final rule.

VerDate jul 14 2003 02:25 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00060 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.057 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1291 EPA’s NSPS cap and trade approach to keep up in school and who require remedial mirrors’’ to satisfy the court that they’ve EGU toxics is simply unacceptable. It is un- classes or special education. And those of proposed something on time. acceptable legally, and unacceptable from a you who have had even passing involvement This cynical ploy should come as no sur- public health perspective. with our public schools know that the cost of prise when you realize that my organization these types of programs present a major fis- broke a story in the Washington Post re- TESTIMONY OF CONRAD SCHNEIDER, ADVOCACY cal challenge. Adults, too, are at risk. Ele- cently that the language of the Bush pro- DIRECTOR, CLEAN AIR TASK FORCE, HEARING vated mercury levels are linked to fertility posal includes over a dozen examples where ON EPA’S PROPOSED MERCURY RULE issues, high blood pressure, and heart prob- whole paragraphs from industry memos were Good afternoon. My name is Conrad lems. lifted verbatim and inserted in the rule. Ei- Schneider of Brunswick, Maine. I am the Ad- As a result, children and women of child- ther that, or industry lawyers themselves vocacy Director of the Clean Air Task Force. bearing age not just in Maine and Florida were actually writing the rules for EPA. CATF is a Boston-based, national environ- are being advised to restrict their intake of Back in the Year 2001, in the first year of mental advocacy organization dedicated to certain fish. Fourty-four states have issued the Bush Administration, EPA signaled that restoring clean air and healthy environ- advisories limiting consumption of fish from it would issue a rule resulting in a 90 percent ments through scientific research, public certain water bodies—17 states for every in- reduction in mercury emissions—from 48 education, and legal advocacy. Our primary land water body. Maine, for example, has an tons a year down to 5 tons—per year by 2008. mission involves cleaning up the nation’s advisory covering every freshwater lake, That is what the Clean Air Act Amendments grandfathered power plants. stream, pond, and river. Species with specific require. EPA now proposes a rule, which if You know, school vacation week in Maine consumption advice include our famous implemented, would still allow 34 tons of was two weeks ago and our family went to brook trout and landlocked salmon. For our mercury emissions per year in 2008 and 15 Sanibel Island, Florida—our first ‘‘sun and coastal waters, Maine warns about consump- tons in 2018—giving us a decade more of fun’’ vacation ever. While down there, I went tion of blue fish and striped bass. Ten states delay while leaving three times as much saltwater fly-fishing for the first time. This have issued advisories on canned tuna. The mercury in the environment as what is June I am going with some buddies to fish FDA has told pregnant women not to eat achievable with today’s control technology. Grand Lake stream here in Maine. Although swordfish, another staple of the North Atlan- We call on U.S. EPA to return to its origi- Sanibel was saltwater and Grand Lake tic fishery. Later this week, FDA is expected nal compass bearing, set the hook, and reel stream will be fresh, there is a common de- to revise its consumption warning for the in the ‘‘Big One’’ by dropping power plant nominator here. Both Florida and Maine first time to include tuna. It is ironic that at mercury by 90 percent within this decade. warn us to limit our consumption of the fish the very time concerns over the health ef- That isn’t likely to happen. So, ultimately, I catch. While I was trying to catch a trophy fects of mercury are growing, EPA is pro- Rep. Allen, it may be left to you to finish the sport fish in Florida, I managed to catch posing to weaken the requirements for mer- job Senator Mitchell thought he had done in only a flounder. However, I tossed it back be- cury reduction from power plants. Clean Air Act Amendments of 1990 (which There are many sources of mercury in the cause my wife’s sister, who is four months was signed by the first President Bush)—re- environment but most of it comes from pregnant, and her husband were with us and quiring the U.S. power sector to do its full human activity such as burning mercury- pregnant women are warned to eat no fish share to solve the problem of mercury con- containing coal for electricity, mining, and because the mercury contamination threat- tamination. improper disposal of mercury-containing ens their fetuses. In fact, while it was bad products. Through these releases, we’ve con- enough that she couldn’t drink a pina colada TESTIMONY OF DEBRA DAVIDSON, MAINE CHAP- taminated a large part of our region’s and in Florida, she couldn’t eat any fish either! TER—IZAAK WALTON LEAGUE OF AMERICA, nation’s food supply. This is simply unac- That’ll be true when she visits us in Maine LIVERMORE FALLS, ME ceptable. this summer too. Maybe you think this is a So what’s to be done? The answers are not (Proposed National Emission Standards for small matter. But consider that in Maine, simple or quick, but we’ve already made a Hazardous Pollutants; and, in the Alter- recreational fishing contributes $250 million start. About 70% of the world’s new annual native, Proposed Standards of Performance to the economy here each year. mercury releases are from coal combustion for New and Existing Stationary Sources: I would like to thank Rep. Tom Allen for and waste incineration. Electric Utility Steam Generating Units; his leadership in holding this hearing; the Fortunately, we have the technology to re- Docket ID No. OAR–2002–0056, 69 Fed. Reg. first of what may be many more such hear- duce coal plant mercury emissions nation- 4652 (January 30, 2004).) ings around the country by concerned mem- ally by 90% within the next decade. The I would like to thank Tom Allen for giving bers of Congress to hear from citizens about State of Connecticut has adopted this target Maine the opportunity to voice our concerns the deficiencies of the Bush Administration’s for its plants. Massachusetts, New Jersey, about hazardous air pollutant emissions power plant mercury proposal. We share Rep. Wisconsin, and New Hampshire are consid- from power plants, in particular mercury Allen’s view that it is outrageous that on an ering similar targets. emissions. issue of such critical importance to our peo- But air pollution travels, so the states My name is Debi Davidson and I am here ple, U.S. EPA chose not to schedule one can’t act alone. We need the federal govern- today as a representative of the Maine Chap- hearing on this rule in New England. ment to act. We’re aggressively controlling ter of the Izaak Walton League of America. The people of our region have always waste incineration in the U.S. by requiring We are a national organization of 50,000 an- looked to the sea and our inland water bod- incinerators to reduce their mercury emis- glers, hunters and conservationists com- ies—for commerce, for knowledge, for recre- sions by 90%. But the biggest fish to catch— mitted to responsible environmental stew- ation and, perhaps most importantly, for coal-fired power plants—has yet to be ardship. food. Ocean and freshwater fish have been a caught. Coal plants account for fully one I have attached a letter to my testimony, staple of the New England diet since the first third of U.S. mercury emissions and, amaz- signed by the directors of midwest sports- human settlements here. ingly, are completely unregulated. men’s organizations including the Izaak Wal- But we’re here today because that food In its proposed rule, U.S. EPA again pro- ton League of America, and representing source is under threat—from mercury pollu- poses to let power plants off the hook. The over 400,000 people in Minnesota, Wisconsin, tion. Due to eating mercury in contaminated proposed emissions standards are trans- Michigan, Iowa, Illinois, Indiana, and Ohio ocean fish and fresh water fish, one in six parently based on the legislative targets in asking the environmental Protection Agency women of childbearing age in the United the Administration’s so-called ‘‘Clear Skies’’ to strengthen their proposed rule. States have mercury levels above what EPA proposal, which is a broad attempt to roll- Mercury contamination threatens Maine’s considers safe. That’s nearly five million back the requirements and deadlines of the fishing heritage. Residents in Maine share a women nationally with elevated mercury Clean Air Act—in large part the work of long tradition of outdoor recreation cen- levels in their blood. Because mercury trav- Maine Senators Muskie and Mitchell. The tering on our lakes, ponds and rivers. We are els through the placenta and breast milk Bush Administration proposal does not go a region of camp owners, fishermen, hunters, that also means more than 600,000 children far enough or fast enough—either to ade- and outdoor enthusiasts whose lakes and born each year are at risk for mercury’s quately protect public health or satisfy the woods represent a large part of who we are. toxic effects. requirements set out by Congress. Unless we eliminate mercury pollution from And those effects are serious. They include Frankly, I should not even dignify what our lakes, ponds, streams and rivers, we can- poor attention span and language develop- EPA has issued as a proposed rule. It is so not safely eat our fish if we choose to. Even ment, impaired memory and vision, prob- blatantly illegal, in the laxity of the emis- if catch and release is one way to enjoy fish- lems processing information, and impaired sions standards and deadlines and in the lack ing, we should not have to limit ourselves to visual and fine motor coordination. Deborah of legal authority for its misguided emis- this method. The effects of mercury pollu- Rice, formerly with EPA, is a renowned ex- sions trading scheme that the Bush Adminis- tion on an ecosystem very much affects the pert on the effects of toxic metals on brain tration knows full well that legal challenges quality of a total fishing experience. Warn- development that Maine DEP was fortunate by the coal industry will be successful and ings about eating fish due to mercury con- to hire. Dr. Rice last year warned at a U.S. leave us with no rule at all. Which is just tamination very much detracts from this ex- Senate hearing that the threat posed by mer- what they want. The environmental commu- perience. cury is comparable to that of lead. We have nity had to sue EPA just to issue a rule. Mercury contamination threatens Maine’s too many children today who struggle to What they’ve proposed is just ‘‘smoke and economy. While fishing in Maine is clearly a

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long-standing tradition, it is also big busi- to eat, it is critical that we significantly re- FISHING IS IMPORTANT TO OUR ECONOMY ness. Figures show that recreational anglers duce emissions from coal plants in these Fishing in our states is big business. With who fish in our state spend more than $250 states. the Great Lakes, cold-water streams, and million dollars annually. This includes ev- Mercury contamination of fish in our lakes tens of thousands of lakes, it is no wonder erything from fishing lures to special cloth- and rivers is a serious concern for our mem- fishing is so popular. Sportfish like ing to food, lodging and transportation for bers and their families, but the current pro- largemouth bass, smallmouth bass, yellow the trips we take. Economically, Maine can- posal falls far short of what is needed to ad- perch, walleye, northern pike and muskie are not afford a contaminated fishery. dress this threat. We know that existing just a few of many sought-after species. Ac- We can do better. Mercury contamination plants using the best modern technology can cording to the U.S. Fish and Wildlife Service, of fish in our lakes and rivers is a serious achieve mercury reductions of up to 90 per- more than 7.87 million anglers fish in our concern for our members and their families. cent. The technology to achieve these reduc- states and spend more than $5 billion annu- The current EPA proposal falls far short of tions is being developed and installed in ally. This includes everything from fishing what is needed to address this threat. EPA’s plants right here in the Midwest. We urge lures to special clothing to food, lodging and mercury MACT proposal fails to accomplish the EPA to adequately address our mercury transportation for the trips we take. Our re- what is mandated by the Clean Air Act for problem by greatly strengthening the pro- gion simply cannot afford a contaminated mercury reduction. And the alternative New posed mercury rule under section 112 of the fishery. Source Performance Standard proposal is a Clean Air Act for plants burning all types of But the value of fishing cannot just be poor substitute to an adequate mercury coal. We further urge the agency to reject al- measured in dollars. Although less tangible MACT standard. ternative New Source Performance Rule in and difficult to quantify, the effects of mer- We believe that the proposed mercury place of a MACT standard. cury pollution on an ecosystem can affect MACT rule should require emissions reduc- MERCURY AND FISH CONSUMPTION ADVISORIES the quality of the fishing experience. A sur- tions from all coal-fired power plants by 2008 The entire Midwest is affected by mercury vey of anglers underscores the importance of equivalent to the level that can be achieved contamination to such a large extent that the social aspects of fishing. Some of the by the most up-to date pollution controls state health departments have issued fish main reasons that people fish are to relax, to and resulting in at least a 90 percent reduc- consumption advisories specifically for mer- spend time with family and friends, and to be tion in power plant mercury emissions na- cury. Indiana, Illinois, Minnesota, Michigan, close to nature. Warnings about eating fish tionwide. The technology to achieve these Ohio and Wisconsin all have blanket state- due to mercury contamination detract from reductions is being developed and installed wide fish consumption advisories for mer- this experience. Reducing environmental in Midwest plants right now. cury. In addition, Lake Superior and Lake contaminants like mercury must be a goal so The EPA should revise the mercury MALT Michigan have fish consumption advisories we can continue to conserve and protect this proposal to meet the Clean Air Act’s obliga- because of mercury contamination. resource. tion to require the most up-to-date pollution Relying on fish consumption advisories, WHY IS MERCURY FROM POWER PLANTS A controls on all power plants. The EPA should however, will not solve the problem. We PROBLEM? also reject the alternative New Source Per- must reduce the contamination at its source. Goal-fired electric power plants remain the formance Standard proposal and all mercury Surveys of anglers in the Northeast, South- largest uncontrolled source of mercury in trading proposals. east and Great Lakes have revealed that the U.S. Each year, uncontrolled coal-fired The Maine Chapter of the Izaak Walton many anglers may have heard about the power plants in the U.S. emit nearly 50 tons League asks that the EPA adopt a rule that advisories, but anglers with lower income of mercury to the air in addition to an esti- maximizes the protection of human health levels fish more often, eat more fish they mated 33 tons disposed of in waste left over and our fisheries by regulating mercury catch as part of their diet, and are generally after power plants burn coal. EPA estimates emissions to the level that we know is tech- less aware of advisories than other anglers. that coal-fired power plants alone account nologically feasible and to please do so now. In addition, relying only on advisories to ad- for 42 percent of all U.S. mercury air emis- Thank you. dress the mercury problem leaves a legacy of sions. Municipal, medical and hazardous FEBRUARY 25, 2004. contaminated fish our future generations. waste combustors—which are stringently Re proposed National Emission Standards SAFE-TO-EAT FISH IS IMPORTANT TO OUR regulated by the EPA—account for about ten for Hazardous Pollutants; and, in the Al- FAMILIES percent of U.S. air emissions. Industrial boil- ternative, Proposed Standards of Per- ers are responsible for ten percent and chlo- formance for New and Existing Sta- Women of childbearing age and pregnant women are the most important members of rine manufacturers for six percent. The re- tionary Sources: Electric Utility Steam maining third is made up of incidental use Generating Units; Docket ID No. OAR– the population in terms of mercury exposure. Methylmercury interferes with the develop- and products containing mercury. 2002–0056, 69 Fed. Reg. 4652. (January 30, Existing coal-fired power plants not only 2004). ment and function of the nervous system. It poses the greatest hazard to the developing remain uncontrolled, but if left virtually un- Administrator MIKE LEAVITT, regulated, over time they will account for a U.S. Environmental Protection Agency, EPA fetus. This is the reason most fish consump- tion advisories warn pregnant women to larger and larger share of mercury emis- Docket Center (Air Docket), U.S. EPA West sions, as other source categories meet their (6102T), Washington, DC. limit their fish consumption or avoid fish al- together. However, infants and children are obligations to reduce their mercury releases. DEAR ADMINISTRATOR LEAVITT: Sporting Coal-fired power plants are found through- also at high risk. Infants may ingest methyl groups from Indiana, Illinois, Michigan, Min- out the Midwest. According to the EPA’s mercury through nursing and children are nesota, Ohio, and Wisconsin have worked for Toxics Release Inventory (TRI), coal-fired exposed through their diet. Children and in- years to reduce mercury pollution and pro- power plants in Minnesota, Wisconsin, fants are more sensitive to the effects of tect the health of our families. Today, we Michigan, Illinois, Indiana and Ohio together mercury because their nervous systems con- write to respectfully express our concerns account for 23 percent of mercury emissions tinue to develop until about age 14. over the proposed rule by the U.S. Environ- from all coal-fired power plants in the U.S. Mercury threatens the health of older fish- mental Protection Agency (EPA) to control Because mercury does not degrade when re- ermen, too. New evidence suggests exposure mercury emissions from coal-fired power leased and because the typical coal plant op- to methylmercury can adversely impact plants. erates for at least 50 years, the accumulation blood pressure regulation, heart-rate varia- Fishing has been a tradition in the Mid- of mercury released by these plants makes bility, and heart disease. west for generations, and sporting groups them the most widespread, large-scale, long- have been conserving fish habitat for dec- FISHING IS AN IMPORTANT TRADITION IN THE lived generators of mercury in the U.S. ades. It has been an important part of family MIDWEST Mercury is emitted from the stacks of life and a bond between parents and children. Residents in the Midwest share a rich tra- coal-fired power plants, and although it can Fishing is also important for our businesses, dition of outdoor recreation centering on our remain in the atmosphere for up to one year, with sport-fishing adding $5 billion to our lakes and rivers. We are a region of cabin a great deal of mercury is deposited on land states’ economies annually. owners, fishermen, hunters, and outdoor en- and water bodies within 50 miles of the Unfortunately, all of our states are under thusiasts whose lakes and woods are as much plant. In addition to being a significant con- statewide fish consumption advisories due to a part of who we are as our agriculture, snow cern in the areas closest to the plants, the widespread mercury contamination. Catch and fall foliage. If there is one thing we love deposition and reemission makes mercury and release is not just a choice anymore, it as much as catching fish, it is eating fish. pollution a regional and global problem. is a practice we must observe to safeguard The fish fry and shore lunch are beloved tra- However, we cannot wait for international the health of our children and grandchildren. ditions in the Midwest. cooperation before we start addressing the Power plants are one of the largest sources The ability to pass our traditions on to fu- emission and deposition problems that occur of mercury pollution in the Midwest. Twen- ture generations is threatened by mercury in the United States. ty-three percent of the nation’s coal-fired contamination. Unless we eliminate mercury After mercury is deposited from the atmos- power plant mercury emissions come from pollution from our lakes, streams and rivers, phere, its greatest adverse impact occurs in the six states of Indiana, Illinois, Michigan, our children’s children may not be able to the aquatic ecosystem. In a series of chem- Minnesota, Ohio and Wisconsin. In order for safely eat fresh bass, walleye, or northern ical reactions, bacteria in the sediments can anglers to once again catch fish that are safe pike—the fish most heavily contaminated. convert mercury to methylmercury.

VerDate jul 14 2003 02:25 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00062 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.062 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1293 Methylmercury is a form of mercury that is ate further strain on the coal industry in the MN, WI, MI, IL, IN and OH; 50,000 members especially toxic to humans and wildlife. Fish eastern U.S. nationwide. absorb methylmercury from the water as it The proposed alternative New Source Per- Mike Hofmann, President, Wisconsin State passes over their gills and as they feed on formance Standard (NSPS) rule would even- BASS Federation, Weston, Wisconsin. 1100 other organisms. As larger fish eat smaller tually require deeper reductions, but not for members. fish, methylmercury concentrations increase more than a decade and not to the levels Brad Maurer, President, Ohio Smallmouth in the bigger fish, a process known as bio- mandated under a MALT approach. The Alliance, Bexley, Ohio. 160 members. accumulation. Consequently, larger predator NSPS alternative also creates different Edward L. Michael, Chairman, Illinois fish usually have higher concentrations of standards for different coal types and allows Council of Trout Unlimited, Oak Brook, Illi- methylmercury from eating smaller con- for some electric utilities to avoid making nois. 3,000 members. taminated fish. Humans, birds and other any mercury reductions, by allowing mer- Larry Mitchell Sr., President, League of wildlife that eat fish are exposed to mercury cury trading. Treating coal types differently Ohio Sportsmen, Columbus, Ohio. LOOS and in this way. and allowing for trading raises the risk of in- its member clubs represent about 200,000 EPA MACT PROPOSAL IS INADEQUATE creasing local emissions, exacerbating the Ohio sportsmen and women. EPA’s mercury MACT proposal fails to ac- problem of existing mercury hotspots, and George Meyer, Executive Director, Wis- complish what is mandated by the Clean Air creating new mercury hot spots in the Mid- consin Wildlife Federation, Madison, Wis- Act for mercury reduction. Further, the al- west. consin. Representing 83 Wisconsin hunting, ternative New Source Performance Standard The EPA should revise the mercury MACT fishing, and trapping organizations. proposal is a poor substitute to an adequate to meet the Act’s obligation to require the Kim Olson, New Ulm Area Sport Fisher- mercury MACT standard. most up-to-date pollution controls on all men, New Ulm, Minnesota. 150 members. We contend that the proposed mercury power plants—regardless of the type of coal Bill Pielsticker, Chairman, Wisconsin MACT rule should require emissions reduc- that they use—and by so doing achieve strin- Council of Trout Unlimited, Madison, Wis- tions from all coal-fired power plants by 2008 gent and rapid reductions in emissions of consin. 4000 members. that are equivalent to the level that can be this toxic pollutant. The EPA should also re- Russ Ruland, DNR Liaison & Past Presi- achieved by the most up-to date pollution ject the alternative NSPS and all mercury dent, Muskellunge Club of Wisconsin, Hales controls. Based on data collected by the trading proposals. These alternatives would Corners, Wisconsin. 130 members. EPA, that would result in at least a 90 per- cause additional mercury related adverse Scott Sparlin, Executive Director, Coali- cent reduction in power plant mercury emis- health risks through the promotion of pollu- tion for a Clean Minnesota River, New Ulm, sions nationwide. tion trading, and would allow unacceptable Minnesota. 600 members. By contrast, as proposed, EPA’s MACT rule amounts of mercury pollution to continue. Vern Wagner, Conservation Director, Min- will only require an overall 30 percent cut in We respectfully urge the EPA to adopt a nesota BASS Federation, Champlin, Min- emissions, and that not until 2010 at the ear- rule that maximizes the protection of human nesota. 14,000 B.A.S.S. members in Min- liest. In addition, most of the reductions will health and our fisheries by regulating mer- nesota and 650 enrolled in the Minnesota come from power plants that burn eastern cury—emissions to the level that we know is B.A.S.S. Federation. bituminous coal, while requiring very little technologically feasible and to do so quickly. Jay Walton, Iowa BASS Federation Con- emission reductions from power plants that Sincerely, servation Director (4,000 member affiliation), burn western subbituminous coal. As a re- Jim Bahl, President, Minnesota Conserva- Iowa Conservation Alliance Board (50,000 sult, states like Minnesota, Wisconsin, tion Federation, St. Paul, Minnesota. 3,000 member affiliation), Ames, Iowa. Michigan, and Illinois, whose plants use a members. Sam Washington, Executive Director, significant amount of western coal will see Danny. J. Blandford, Conservation Direc- Michigan United Conservation Clubs, East even more limited mercury reductions. tor, Indiana BASS Federation, Martinsville, Lansing, Michigan. A network of nearly Plants in Ohio and Indiana that use mostly Indiana. 3,000 members. 100,000 men and women and over 500 affili- eastern bituminous coal would have an in- Jim Doss, President, Ohio BASS Federa- ated conservation and outdoor recreation centive to switch to western coal. This could tion, Gallipolis, Ohio. 1,800 members. clubs. have the perverse effect of potentially in- Paul Hansen, Exccutive Director, Izaak Paula Yeager, Executive Director, Indiana creasing local emissions of mercury from Walton League of America, St. Paul Min- Wildlife Federation, Carmel, Indiana. 20,000 plants in Ohio and Indiana. It would also cre- nesota. 13,000 members in Midwest states of members.

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TESTIMONY: PROF. ELLEN K. SILBERGELD— Health Organization, the National Toxi- of Americans; and (3) it is dangerously inap- EPA HEARINGS ON REGULATION OF UTILITY cology Program, the National Academy of propriate to propose a ‘‘cap and trade’’ pol- MERCURY EMISSIONS, PHILADELPHIA, FEB- Sciences, and many other international, na- icy for controlling the major remaining an- RUARY 25, 2004 tional, and state commissions and expert thropogenic sources of mercury in the US. committees. I was a member of EPA and NIH I am Ellen K. Silbergeld, Professor of Envi- committees evaluating the sources and risks Mercury compounds are toxic air pollut- ronmental Health Sciences and Epidemi- of mercury exposures and I participated by ants. Mercury compounds are widely recog- ology at the Bloomberg School of Public invitation in the deliberations of the NRC nized as one of the most serious public Health, Johns Hopkins University, in Balti- Committee on the Toxicology of Methyl health risks world wide, particularly for more, Maryland. I am appearing without Mercury. I am currently directing funded re- children (see WHO 1990 report; NRC 2000 re- compensation as a private citizen, at the in- search in my laboratory on mercury com- port). Mercury compounds can affect many vitation of the Sierra Club, and my testi- pounds, studying exposures and mechanisms organ systems, including the nervous sys- mony is based upon my research experience of both organomercury compounds (includ- tem, kidney, heart, and immune systems. on the toxicology and epidemiology of mer- ing methylmercury and thimerosal) and in- However, we have not fully appreciated the cury compounds, as well as my experience in organic mercury. Last year we published two range and severity of mercury toxicity. Pub- regulatory risk assessment and risk manage- major research papers: an epidemiological lic health policy, including the risk assess- ment, including the application of ‘‘cap and study reporting that adults may be as sen- ments conducted by federal and state agen- trade’’ mechanisms to achieve goals in re- sitive as young children to the neurotoxic ef- cies, has appropriately focused on the devel- ducing air pollution. My background and fects of methylmercury exposure, via fish oping nervous system as a very sensitive tar- training are outlined in the attached docu- consumption; and one of the first studies to get for irreversible toxic damage. However, mentation; my PhD is in environmental en- show that very low doses of mercury can ac- mercury has multiple effects of many organ gineering sciences from Johns Hopkins celerate autoimmune disease, in an animal systems in addition to the developing brain. School of Engineering, and I have held re- model of lupus. We recently published an epidemiologic search positions with NIH and the University In this testimony I want to make three study indicating that adults exposed to of Maryland Medical School. I have served as points, relevant to important aspects of your methyl mercury via fish are also at risk for a member of EPA’s Science Advisory Board deliberations: (1) mercury compounds must neurocognitive deficits, with a dose:response as well as an advisor to the Department of be considered toxic air pollutants; (2) expo- relationship very similar to that found for Energy, the CDC, the World Health Organiza- sures to mercury compounds are a serious children exposed prenatally (Yokoo et al tion, the World Bank, the Pan American and significant health concern for millions 2003): TABLE 3.—REGRESSION COEFFICIENTS β OF ADULT’S HAIR MERCURY CONCENTRATION AS A PREDICTOR OF NEUROBEHAVIORAL TRUST RESULTS

Test β* 95% C1 β** 95% C1

Fine Motor Speed ...... ¥3.40 ¥5.80;–1.00 ¥3.20 ¥5.40;–1.00 Digit Span ...... ¥0.14 ¥0.29;—0.001 ¥0.15 ¥0.29; 0.003 Digit Span backward ...... ¥0.09 ¥0.18;—0.001 ¥0.09 ¥0.19;–0.009 Digit Symbol ...... ¥1.21 ¥2.8;–0.33 ¥0.54 ¥1.2;0.16 Easy Learning ...... ¥0.37 ¥0.70;–0.04 ¥0.34 ¥0.64;–0.04 Difficult Learning ...... ¥0.21 ¥0.42;–0.001 ¥0.15 ¥0.34;–0.03 Logical Memory first story ...... ¥0.29 ¥0.51;–0.09 ¥0.27 ¥0.49;–0.06 Errors of commission ...... ¥1.39 ¥0.26;–2.5 ¥1.45 ¥0.28;–2.6 *—bit adjusted; **—adjustsed by age, gender, and education level.

In addition, recent research in our group premature mortality, more extensive kidney studies of mercury concentrations in blood and elsewhere has identified the cardio- damage, and more rapid dysregulation of the or hair, which was done by the CDC in 2003 vascular system and the immune system as immune system (Via et al 2003). (Schober et al 2003). Exposures can also be important targets for mercury toxicity To put our experiments in perspective, we determined by analyzing mercury concentra- across the lifespan. Because these studies are exposing our mice to doses equivalent to tions in food, which is the major source of have been published since the 2000 NRC re- consuming one can of tuna fish per day with exposure for the U.S. population. Mahaffey port and risk assessments by FDA and EPA, a concentration of 5–10 ppm methyl mercury. and colleagues have updated the earlier as- I will review these data here. In follow up In our current research we are examining sessment of U.S. exposures, using informa- studies in Minimata and in the Faeroes interactions of low dose mercury with infec- tion on blood mercury levels and on diet. study of children exposed perinatally to tions, such as Coxsackie B virus, which are Their analyses support the urgency of taking methyl mercury via fish consumption, alter- major causes of autoimmune cardio- comprehensive and effective actions to re- ations in cardiovascular function have been myopathy in humans. Again, we found that duce ongoing inputs of mercury into the en- reported (Oka et a1 2002; Sorensen et al 1999). mercury accelerates and worsens heart dis- vironment. For all U.S. women of child- In 2003, my colleague Dr Eliseo Guallar re- ease in the context of viral ‘‘priming’’ (Ny- bearing age, half have blood mercury levels ported that mercury exposures were associ- land et al 2004). Autoimmune myocarditis is in excess of 0.94 micrograms/L. Nearly 10% ated with cardiovascular disease in adults. In a leading cause of sudden heart failure in have blood mercury levels greater than 5 this elegant analysis, Guallar et al (2002) young persons; the possibility that mercury micrograms/L, with a range of 2.7 to 25% de- demonstrated that consumption of fish con- exposures could uncover latent disease, or pending upon ethnicity. The NRC rec- taining mercury resulted in loss of the bene- worsen disease, is very serious. ommendations in 2000 supported a reference ficial effects of fish consumption for cardio- Based on these studies, and the continued dose for mercury in cord blood of 5.8 vascular function, that is, the methyl mer- research on mercury worldwide, it is fair to micrograms/L. Mahaffey et al estimate that cury ingested by fish consumers abrogated say that we have not yet fully comprehended more than 300,000 infants may be born each the recognized benefits of consuming omega- the range of mercury toxicity and its risks year to women whose blood mercury levels 3 fatty acids of which fish are an excellent for human health. In many ways, we are still are in excess of this health based guidance. source. at the point in evaluating mercury as a toxic Clearly, this is an environmental health The immunotoxic effects of mercury have air pollutant as we were in thinking about issue demanding rapid intervention. long been reported in experimental studies, lead some 25 years ago. We know that mer- many conducted by researchers here in cury is dangerous, and we know some people Mercury comes from many sources, nat- Philadelphia (Prof. Shenker, Monestier, and may be excessively exposed. However, we do ural and anthropogenic, and each individual Kono). These researchers and others have not fully appreciate its toxicity and hence is exposed to the sum of all these sources. shown that administration of mercury com- we cannot disregard the range of exposures For most Americans, the proximate source pounds to rats and mice can induce auto- current in the U.S. population. of mercury exposure is through the food sup- immune dysfunction similar to that observed Exposures to mercury compounds are a sig- ply, primarily through seafood. Finally, the in such autoimmune diseases as lupus and nificant threat to millions of Americans. One FDA seems ready to adopt the current risk scleroderma. However, there has been little yardstick by which to judge the need for ur- assessment, developed by the National Re- data to suggest that mercury could cause gent interventions in a public health prob- search Council and adopted by EPA. How- autoimmune disease in humans. We have ex- lem is to evaluate current levels of exposure ever, this is the proximate source of mer- amined these potential risks of mercury in a to a toxic agent like mercury. Several recent cury, and attempting to reduce exposure by different way, to test whether mercury can analyses have been undertaken on exposures controlling the foods we eat is an inefficient accelerate autoimmune disease in the con- of the U.S. population to mercury com- and ultimately uncertain public health pol- text of triggers of these diseases, such as ge- pounds, most recently by Dr. Kathryn icy. Moreover, without controlling the ulti- netic susceptibility, infection, or exposure to Mahaffey and her colleagues at EPA. (Their mate sources of mercury, we are essentially antigens. We reported last year that report is available on line from Environ- writing off seafood as a food source. pretreatment of mice with very low doses of mental Health Perspectives, the scientific The ultimate source of mercury is over- mercury can accelerate and exacerbate lupus journal published by NIEHS). Mercury expo- whelmingly from energy production using in an animal model of disease, resulting in sures can be evaluated either by population fossil fuels. Prudent and effective public

VerDate jul 14 2003 02:28 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00068 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.066 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1299 health policy requires that we examine op- Nyland J et al. Inorganic mercury in- plementing other technologies that conserve tions for controlling this source, rather than creases severity and frequency of auto- energy in their homes. eliminating seafood and some freshwater fish immune myocarditis in mice. Toxicol Sci We want to learn and participate in state from our diets for now and forever. 2004; in press. programs that collect items containing haz- ‘‘Cap and trade’’ policies are not appro- Oka T et al. Autonomic nervous function ardous wastes like mercury. priate for mercury. I am proud that I worked in fetal type Minimata disease patients: as- And it is not only the faith community. for the environmental organization Environ- sessment of heart rate variability. Toh J Exp Businesses and the state have also made mental Defense that has developed innova- Med 2002; 198: 215–221. commitments, purchasing Maine-produced tive strategies for protecting our environ- Rice DC et al. Methods and rationale for ‘‘green’’ electricity and supporting wind and ment and human health. One of these strate- derivation of a reference dose for solar power development through green tag gies has been the careful selection and im- methylmercury by the US EPA. Risk Anal purchases—all as a result of Maine Interfaith plementation of so-called ‘‘cap and trade’’ 2003; 23: 107–115. Power & Light’s successful campaign to policies for certain pollutants, notably sulfur Schober SE et al. Blood mercury levels in bring renewable electricity options to Maine oxides. From this experience, there are cri- US children and women of childbearing age, residents. teria we can apply in determining what poli- 1999–2000. JAMA 2003: 289: 1667–1674. One by one, community by community, cies are appropriate for controlling specific Sorensen N. et al. Prenatal methylmercury Mainers are making a difference in the pollutants. First, trading only works to pre- exposure as a cardiovascular risk factor at amount and kind of energy consumed in the vent environmental impacts and harness ef- seven years of age. Epidemiol 1999; 10: 370–5. state and cleaning up our own contributions ficient private sector mechanisms under the Via CS et al. Low dose exposure to inor- to air and water degradation. But we can’t following conditions: (1) it doesn’t matter ganic mercury accelerates disease and mor- do it alone. We need those who create policy where the pollutant is released, so that if tality in acquired murine lupus. Environ and oversee the protection of our environ- one source accumulated ‘‘trading rights’’ and Health Persp 2003; 111: 1273–7. ment and its resources—the EPA, espe- emits more pollution than a source that sells World Health Organization. Methyl Mer- cially—to stand with us and enforce the these rights, there will be no local impacts cury. Geneva: WHO, 1990. Clean Air Act and the Clean Water Act, around the buyer source. (2) the pollutant Yokoo E. et al. Low level mercury expo- which are vital to the future of all of our should not accumulate in the environment, sure affects neuropsychological function in neighbors on the earth. These leaders must such that continuing emissions do not build adults. Environ Health 2003; @; 8–16. indeed work with us, not against us, and up in ecosystems or food pathways. (3) the champion life-sustaining energy and toxic current levels of exposure should be accept- MAINE COUNCIL OF CHURCHES, pollution-reduction policies. Thank you for your continued efforts on able such that it is not necessary to imple- ENVIRONMENTAL JUSTICE PROGRAM, behalf of the earth and its living inhabitants. ment a rapid overall reduction in exposures Portland, ME, March 1, 2004. Respectfully submitted, at the local or national level. Re public hearing on mercury emissions rul- ANNE D. (ANDY) BURT, None of these conditions are met in the ing. Director, Environmental Justice Program. case of mercury. It does matter where mer- Congressman TOM ALLEN, cury is emitted. In an analysis of EPA data House of Representatives, MERCURY RULE HEARING SPONSORED BY TOM conducted by Environmental Defense, it was Augusta, ME. ALLEN, MONDAY, MARCH 1, LEGISLATIVE shown that in many states with mercury DEAR CONGRESSMAN ALLEN: The Maine COUNCIL CHAMBER, ROOM 334, MAINE STATE problems (evidenced by fish advisories) local Council of Churches’ Environmental Justice HOUSE, AUGUSTA sources are the cause of environmental ‘‘hot Program asks you, as our representative to spots’’. If these sources utilize trading Thank you Rep. Tom Allen for holding this the U.S. Congress, to carry a message to the shadow hearing to the Environmental Pro- rights, then the problem of local ‘‘hot spots’’ Environmental Protection Agency and the will continue. This is likely, since the reason tection Agency’s field hearing in Philadel- Secretary of Energy. With deep concern for phia. We deserve the right to discuss their for these hot spots is current levels of re- the sustainability of the living web of cre- lease, reflecting the fact that it is more con- proposal to weaken the Clean Air Act’s pro- ation we oppose the proposed rule change on tections against mercury pollution from venient, economically and technologically, mercury pollution as well as the recently an- for these sources to emit mercury rather power plants, as it is Maine that will con- nounced plan to build 94 new coal-burning tinue to see the high rates of mercury depo- than control their facilities. Mercury accu- power plants across the nation. Both pro- mulates in the environment and in food sition. posals are appalling in light of our growing My name is Patricia Philbrook. I am here pathways affecting wildlife and humans. scientific knowledge that human activity— today as a board member of the Maine Peo- Mercury is an element and thus never dis- primarily burning fossil fuels in power plants ple’s Alliance (MPA), a statewide citizen ac- appears. In addition, in the aquatic environ- and vehicles—is seriously compromising the tion organization with 22,000 members. ment, inorganic mercury emissions are health of our environment and all of the Power plants are the largest industrial transformed by bacteria into methyl mer- earth’s inhabitants for generations to come. source of mercury in our environment. Mer- cury, which is bioaccumulated by organisms We have the technology available today to cury emitted from power plant stacks falls through complex food webs resulting in con- reduce mercury pollution by 90%; yet our as rain, snow, and even dry deposition here centrations of methylmercury in large fish federal government proposes to introduce a in Maine. Three and one half years ago MPA that eat other fish tens of thousands of times ‘‘cap-and-trade’’ program for this toxic pol- co-released a report at the HoltraChem site higher than the concentrations in water or lutant and to build more power plants that in Orrington indicating our rain and other sediments. Current levels of exposure are un- will generate mercury emissions. forms of precipitation, commonly thought to acceptable. For that reason, it is imperative Living close to the land, most Mainers be pure, is tainted with varying levels of for us to take action to reduce mercury ex- have experienced firsthand the effects of mercury, in some instances enough to be a posures from all sources, but most expedi- mercury and air pollution emitted by coal- threat to aquatic organisms. Remarkably, tiously to reduce the largest and least con- burning power plants to our south and west. power plants are the only major mercury trolled sources. We have the technology to At our rivers and lakes we read the posted polluters yet to be regulated under federal control utility emissions, as has been dem- fish advisories. We see inhalers in backpacks clean air standards. Thus, in large part, our onstrated in this country for other combus- reminding us that our children suffer from nation’s mercury problem is due to the fact tion sources and in Europe for utility plants. the highest asthma rate in the region. We’ve that while other sources must meet strict Data below show the dramatic reductions learned on hot summer days that the heavy emission limits, power plants continue to achieved by waste incinerators. haze that hugs our coastline is ground ozone spew unlimited quantities of mercury into We do not have room for trading, when and is dangerous for our friends and neigh- our air, where the rain and snow wash it into hundreds of thousands of adults and babies bors who have respiratory problems. Stay in- our rivers, lakes and oceans, and, ultimately, are at risk because of current levels of expo- side and reduce your level of activity, we are into our food chain. Public health demands sure. We do not have time for trading, when warned. that we act on mercury to reduce children’s consumers must choose between a healthy Concerned about these growing problems exposure, who are especially vulnerable to diet, incorporating seafood, and avoiding the in our environment, congregations and their this potent toxin, and to protect all members hazards of mercury for themselves and their members across Maine have been working of our population. children. together to do something. Together we are Maine also has local mercury problems, REFERENCES CITED conserving energy as we obey the first Com- which we have been addressing. Currently, Guallar E et al. Mercury, fish oils, and the mandment and put into practice our cov- the Maine People’s Alliance and many others risk of myocardial infarction. New Engl J enant with the Creator ‘‘to care for the gar- have serious concerns about the proposed Med 2002; 347: 1747–1754. den.’’ With support from the state Public cleanup plan at HoltraChem, one of the Mahaffey KR et al. Blood organic mercury Utilities Commission’s Efficiency Maine, worst mercury pollution sites in the coun- and dietary mercury intake. Environ Health congregations are participating in free en- try. Basically, Mallinckrodt plans to ‘‘cover Perspect 2004: ehponline.org doi: 10.1289/ehp/ ergy audits and rebates to install energy-ef- and run,’’ leaving many tons of toxic mer- 6587. ficient appliances; individuals are replacing cury in close proximity to the Penobscot NRC. Toxicology of Methyl Mercury. NAS incandescent light bulbs with compact fluo- River. Mallinckrodt chose the best opportu- Press, 2000. rescent light bulbs at rebated prices and im- nities for cost cutting rather than the right

VerDate jul 14 2003 01:46 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00069 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.068 H18PT1 H1300 CONGRESSIONAL RECORD — HOUSE March 18, 2004 options for eliminating toxic threats. This serve to hear both sides of the issue. I think teacher. I came here today to speak for the cheap solution is neither acceptable to the it is unfair to take advantage of such a mal- children of Maine. residents of Orrington, nor to the people liv- leable mind. Children need to be given the ing in the Penobscot Valley. Clearly, facts, and then, from there it is truly an TESTIMONY BY PHILIPPE GRANDJEAN, MD, Mallinckrodt is solely responsible for this amazing thing to watch as they go through a PHD, AT THE MERCURY MACT RULE HEAR- mess. It built the plant, and for years it prof- very intense deductive process which almost ING SPONSORED BY REP. TOM ALLEN ited while polluting one of Maine’s great nat- always culminates in the simple but entirely My name is Philippe Grandjean. I am an ural treasures. justified question, ‘‘Why?’’ Gone are the days MD, PhD, and I work as an Adjunct Pro- As the sole responsible party left among when as adults we can get away with the an- fessor of Environmental Health at Harvard the many that operated the plant at one swer, ‘‘Because that’s just the way it is.’’ School of Public Health in Boston. I am also time, Mallinckrodt should be legally bound They have matured far too much to accept a Professor and Chair of Environmental Med- to remove all toxic threats to human health such a thoughtless answer. Even at ten years icine at the University of Southern Den- and the environment. To date, it has been of age they need some ‘‘hard science’’ to re- mark. I apologize for not being able to be operating on a voluntary basis with the EPA inforce every concept within their own envi- present today due to commitments in Europe to implement corrective actions at the site. ronment. and my field studies in the Faroe Islands. I The government should require Mallinckrodt Now I have a new problem to teach: mer- am grateful to you for allowing me to to sign a consent agreement, legally binding cury contamination. I know the problem is present a short summary of the current sta- it to follow through with a thorough clean- not new to most of us here, but upon re- tus of our studies of adverse effects of up. The consent agreement should also obli- searching the topic I have decided that the methylmercury in regard to human health. gate Mallinckrodt to address any future issue now warrants a great deal of awareness I started studying the effects of mercury problems at the site that may not be appar- among children in order to create the action on human health almost 20 years ago. To- ent today. While the Maine People’s Alliance I spoke of earlier. Afterall, they are the ones gether with Dr. Pal Weihe, I collected infor- has worked tirelessly over three decades to that will be forced to deal with this issue as mation on births in the Faroe Islands, a fish- clean up HoltraChem and has supported the it becomes more and more of a problem. ing community located in the North Atlantic Maine Legislature in efforts to reduce mer- First I give them the ‘‘hard science’’: between Norway and Iceland. In over 1,000 cury contained in products sold in Maine, we Mercury is a highly toxic chemical with ef- children, we determined the prenatal expo- will continue to have some of the highest fects on the central nervous system com- sure to methylmercury by analyzing the mercury levels unless power plants are parable to those of lead, especially for un- cord blood for mercury. The mercury origi- forced to observe strict standards at the fed- born fetuses, very young children whose nated from the traditional Faroese diet, eral level. brains are still developing, and piscivorous which includes pilot whale meat in addition Unfortunately, the Bush administration animal. to frequent meals of fish and shellfish. The Forty-five states have issued freshwater has taken several steps in the wrong direc- pilot whale is a toothed whale that eats fish fish consumption advisories. tion. Instead of protecting mothers and chil- and squid, and the mercury concentration in Loons of Maine in high-risk mercury situa- dren from exposure to mercury, EPA’s pro- the meat corresponds to the levels in sword- tions have been observed spending far less posals would protect electric utilities by set- fish and shark, or higher. time sitting on their eggs in the nest, for- ting targets so weak that the industry will When we examined the children at age 7 aging for food, and increased time brooding be allowed to continue polluting. What the years with sophisticated neurobehavioral mercury standard should be and what the and resting. High mercury levels are being passed on to methods, we found that increased prenatal EPA should be implementing is current law mercury exposure was associated with defi- (Section 112 of the Clean Air Act), which re- loon chicks. 4.9 million women of childbearing age in cits in several brain functions, including at- quires that industries install maximum tention, language, verbal memory, spatial achievable control technologies to reduce air the U.S.—that’s 8 percent—have mercury levels in their blood that are unsafe. (Center function and motor speed. These associations toxics such as mercury. could not be explained away by a multitude Two years ago, EPA’s own scientists said for Disease Control). Two years ago, EPA scientists concluded of other factors that we also recorded. In the existing power plants could achieve a 90 that 90 percent reduction in mercury output fact, the Faroese population is relatively percent reduction in mercury emissions from coal fired power plants is possible using uniform, and whale meat is freely shared using existing control technologies. This existing technologies. when available, so that one would not expect means we can reduce mercury emissions The list goes on, and on, and on. that socioeconomic or other factors would from power plants from 48 tons annually to Here is my dilemma though. What do I play any great role. roughly 5 tons per year by 2008. We should offer as a solution to kids? What can they In 2000, the National Research Council re- accept no less. do? Maybe it’s a problem better left for leased its report on the Toxicology of adults to handle. And then they’ll ask, Methylmercury. This report identified our MERCURY RULE HEARING: TEACHING THE ‘‘What are the adults doing about all of the work as critical evidence in regard to identi- UNTHINKABLE mercury that goes into our water?’’ Now, fying an exposure limit for methylmercury. Hello, my name is Chris Coleman and I am thankfully I have an answer. Based on recent The NRC committee used the so-called here as a representative of the Chewonki decisions made by our government, I can benchmark dose for these calculations and Foundation. We are a non-profit center for honestly say to them, ‘‘Absolutely nothing.’’ agreed with the U.S. EPA that an exposure environmental education located in What I fear the most though are the ques- limit of 0.1 micrograms per kilogram of body Wiscasset, ME. Personally, I am the Assist- tions students ask that they have no idea are weight per day was justified. ant Director of our Travelling Natural His- even related to mercury, like, ‘‘Where are all Since then, our research has made substan- tory Programs. To put it simply: I am a the loons that used to live on my lake? How tial progress, and I would like to share some teacher. In the course of a year I teach thou- come that bald eagle doesn’t come back to of these achievements with you. sands of elementary school children through- its nest anymore? I used to hear the shrill One insight comes from efforts in statis- out the state of Maine about Owls, Hawks, cries of an osprey every time my family vis- tical theory by my colleague, Dr. Esben reptiles, amphibians, waste management, ited that island. Now everything is so quiet. Budtz-Jorgensen, a Danish statistician who global warming, predators, prey, food chains, Where did the osprey go?’’ Do I then explain now works as a postdoc at Harvard. Esben mammals, trees, etc. If it’s going on outside to them that a deadly neurotoxin called first calculated the degree of imprecision of we have a lesson that will teach you about methylmercury is slowly killing off these the exposure assessments—that is, in this it. In just about every lesson I teach, there is birds and it will only get worse as they grow case, how well the cord-blood mercury con- a time when I explain the problems that the older. centrations reflected the ‘‘true’’ exposure. particular subject of that lesson faces, Don’t make me answer those questions. I Imprecise exposure assessments result in an whether it be plant or animal. I teach with shouldn’t have to answer them. Those an- underestimation of the true effect of an ex- the understanding that awareness leads to swers should come from the people who have posure, in this case methylmercury. We had action. To each problem I offer a solution. created and perpetuate the ill effects of mer- anticipated that our mercury measurements Since the majority of these problems are re- cury contamination. I always have such high would not be a precise measure of the dose lated to humans, the solutions deal with hopes for children, for the things they are that the fetus (especially the fetal brain) had things students can do to fix them, i.e., pick- capable of now and in the future, but why do received. But Esben documented that the ing up trash on the beach, not throwing we constantly stack the deck against them. measurement error was much greater than apple cores out car windows, buying things It is time to right the wrongs of my genera- we had thought. In addition, the mercury in the grocery store that produce less waste, tion, your generation, and generations before concentration in the mother’s hair was a etc. I feel that it is important that children us so that the children of today will be able poor measure of the ‘‘true’’ exposure to the understand they are not helpless in the to swim in their lakes, eat their fish, and fetus. grand scheme of things just because they are enjoy the wildlife within their forests. I fear Such imprecision of course also affects the kids. we as adults have created so many problems calculations of benchmark doses. Esben has I pride myself in my ability as an educator for them to deal with, so why not remedy now calculated the influence on the results to present issues to students in a nonbias, this situation before it becomes cata- that the NRC used in their report. In short, ‘‘middle of the road’’ sort of way. They de- strophic. My name is Chris Coleman. I am a the benchmark dose has been overestimated

VerDate jul 14 2003 01:46 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00070 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.070 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1301 by a factor of 2. Accordingly, if we were to tant, but unconscious functions, such as reg- in three major life areas and is likely to con- calculate an exposure limit today by the ulating the heart beat, the blood pressure, tinue indefinitely. In most cases it is impos- same procedure as the one used by the NRC, etc. We have now found that the mercury as- sible to identify a direct cause of a develop- now using the adjusted benchmark dose, sociated neurological changes are also linked mental disability. The most current sci- then the exposure limit would be only one- to decreased nervous system control of the entific research indicates that complex half of the limit used by the U.S.EPA. heart function. At higher mercury exposures, interactions between social environment, ge- Another issue of importance is how you the children were less capable of maintain- convert mercury concentrations in hair to ing the normal variability of the heart rate netics, and environmental toxins such as concentrations in blood and vice versa. The necessary to secure proper oxygen supply to lead, PCBs, and mercury play a profound role calculation originally presented by the NRC the body and to maintain an appropriate in the causation of developmental disabil- was based on cord blood and needs to be ad- blood pressure. ities. While it is extremely difficult to have justed to the concentration in adult whole This finding has wider potential relevance, a measurable impact on social environments blood. The EPA now estimates the annual because other research has suggested that and genetic factors legislatively, emissions number of births in the US that exceed the mercury from fish may increase the risk of of these kinds of potent neurotoxins can be EPA exposure limit to be 630,000. However, heart disease and of dying from heart dis- substantially reduced and even eliminated the number would have been even larger, had ease. The most recent reports were published through stringent regulation. the EPA used the adjusted exposure limit. in The New England Journal of Medicine in Current risk assessments have been based November, 2002. We suspect that part of the Mercury can have a devastating impact on on the assumption that the fetal brain is the reason for these findings is that the mercury fetal brain development. Large exposures most sensitive organ. Brain development affects the autonomic nervous system and can cause mental retardation, gait and vis- also continues after birth, but we have been its control of the heart function. Such ef- ual disturbances, and even small exposures uncertain how long an increased suscepti- fects are of course highly relevant to Ameri- can cause impairment in language, memory bility to mercury might last. Accordingly, cans in general. These new results therefore and attention. When fish contaminated with some states have chosen to warn against suggest that we should not only be con- mercury are consumed, women of child- mercury exposure from fish only with regard cerned about mercury exposures of pregnant bearing age can put their future children at to pregnant women, while others have in- women and small children. The EPA report cluded children up to various age levels. Our that over 10% of all births every year exceed risk for a range of developmental disabil- new results, just published in The Journal of the exposure limit should therefore also be ities. Warnings are regularly issued to at- Pediatrics in the February issue shed new considered in regard to the population at tempt to protect fetuses and young children light on the vulnerability of the brain. large. from these effects, but even with this warn- We had recently examined the Faroese The importance of brain functions means ing system in place, the Centers for Disease children again at age 14 years, and the tests even a small deficit, whether measured as a Control estimate that 1 in 12 women of child- carried out included brainstem auditory decrease in IQ points or otherwise, is likely bearing age in the U.S. has unsafe levels of evoked potentials. In this test, the child was to impact on an individual’s quality-of-life, hearing a sound from a headset, and we then mercury in her blood. Women who have be- academic success and economic prospects in come contaminated with enough mercury to recorded the resulting electrical activity in life. Even though the children that we exam- cause substantial harm to a developing fetus the brain using surface electrodes placed on ined were all basically normal, we have doc- the skull. Using standard clinical proce- umented detectable deficits that appear to may not themselves have, or show signs of, dures, we measured the transmission of the be permanent. I would consider such changes mercury poisoning. This is because the de- electrical signal from the acoustic nerve as adverse health effects that should be pre- veloping brain is especially sensitive to the through a series of ‘‘relay’’ stations in the vented. Further, even a small increase in the effects of mercury, where its presence can brain. We found that the latency, or trans- incidence of heart disease is important, be- cause significant disruption to a variety of mission time, of the signal from the acoustic cause cardiovascular disease is the major processes including cellular function, protein nerve to the brainstem was significantly in- cause of death in this country. synthesis, cell division, and cellular migra- creased at higher prenatal exposure to mer- Freshwater fish and seafood are excellent tion. cury. This was true both at 7 years and at 14 supplies of energy and essential nutrients. If years, suggesting that this effect of mercury fish is not contaminated with mercury, it As an additional cause for concern, recent on the developing brain is irreversible. will help prevent heart disease. I believe that studies have shown that methylmercury in This mercury-associated delay in trans- it is an important effort to support public combination with polychlorinated biphenyls mission appeared to be parallel to the effects health to prevent mercury contamination of (PCBs) act synergistically, raising questions on the child’s cognitive functions that I the environment. about the impact of mercury in combination mentioned before. The measurement of elec- Thank you. trical signals is regarded an objective assess- with other neurotoxins at very low levels. ment that is independent of factors, such as Many water systems in the US are contami- STATEMENT OF REBECCA WEINSTEIN, JD, age and socioeconomics. It therefore rep- nated with a variety of toxins including MSW, EXECUTIVE DIRECTOR, MAINE DEVEL- resents an important, independent confirma- PCBs and other neurotoxicants, raising ques- OPMENTAL DISABILITIES COUNCIL tion of the neurotoxicity of methylmercury tions about analyses and alerts based solely (On the U.S. Environmental Protection from seafood. We are currently working on on a single toxin. the neuropsychological test results at age 14 Agency’s Proposed Rulemaking On Stand- The potential damage that mercury emis- years to see whether they too, as we antici- ards for Reduction of Mercury Emissions pate, reflect lasting mercury toxicity. So I from Coal and Oil-Fired Electric Utility sions pose to America’s children make it im- can’t report on these results yet. Power Plants and the Use of Maximum perative that mercury emissions be limited An additional finding at age 14 years was Achievable Control Technology (MACT) Pub- to the greatest extent possible. The more that a subsequent component of the signal lished in the Federal Register on January 30, mercury that is prevented from entering the transmission to the midbrain was delayed at 2004 (69 FR 4692) EPA Docket ID Nos. OAR– environment, the greater the chances that 2002–0056 & A–92–55.) higher current mercury exposures, but in children will avoid its toxic impacts. Power Good afternoon, my name is Rebecca this case it was not affected by prenatal ex- plants have been allowed to emit these toxic posure. Postnatal mercury exposure up to Weinstein and I am the Executive Director of chemicals for years, negatively impacting adolescence therefore also seems capable of the Maine Developmental Disabilities Coun- the health of our environment and the na- damaging brain functions, although they cil. The Council is an independent advocacy may not be the same as those that are sen- organization working toward systems change tion’s children. It is simply unacceptable not sitive to mercury during fetal development. to assure that individuals with develop- to demand that these polluters meet any- This conclusion is entirely plausible and mental disabilities are fully included, inte- thing but the most stringent emissions agrees with experimental animal studies. grated and involved in their communities standards, especially when technologies al- It is noteworthy that these children at age and the decisions impacting them. ready exist that can remove a large majority 14 had an average exposure that was similar It is not often the case that I have the op- of these emissions. to the exposure limit used by the U.S.EPA, portunity to testify on environmental issues; and that 95% of them had exposures below until fairly recently, discussion of disability I urge you to push for the most stringent the level which has previously been consid- meant discussion of health and other human standards possible to help protect America’s ered safe by the FDA. Yet, at these exposure services. However, increasing knowledge of children. levels, we saw a steady slope of increasing the potential role of environmental toxins Thank you for your consideration. delays of the electrical signals, the higher and other factors in causing developmental the mercury exposure: The delay in the sig- disabilities means that a much broader spec- nals appeared already at mercury doses trum of issues now must be considered as below the EPA limit. disability issues. All of these results regard cognitive effects According to the federal definition, a de- and other changes of brain functions. The velopmental disability is a condition which autonomic nervous system performs impor- occurs before the age of 22, has severe impact

VerDate jul 14 2003 01:46 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00071 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.073 H18PT1 H1302 CONGRESSIONAL RECORD — HOUSE March 18, 2004

MAINE COUNCIL Because: 3–4 million people come to Acadia actly what the administration had failed to OF TROUT UNLIMITED, each summer. We year-rounders depend on accomplish with the so-called ‘‘Clear Skies’’ March 1, 2004, them for our living. They eat tons of our sea- Act. That bill would establish a cap-and- Re Proposed National Emission Standards food, ride in our boats, buy our boats, rent trade system for mercury in two phases, for Hazardous Pollutants; and, in the Al- lodging and campsites, buy souvenirs, gaso- with the first phase cap set at the level ex- ternative, Proposed Standards of Per- line, etc. What happens when our fish is com- pected to occur as a ‘‘co-benefit’’ of control- formance for New and Existing Sta- pletely inedible? What about the fishermen, ling other pollutants, and the second phase tionary Sources: Electric Utility Steam my son included? What about the boat build- cap requiring a reduction of roughly 70 per- Generating Units; Docket ID No. OAR– ers? cent in the far distant future. 2002–0056, 69 Fed. Reg. 4652 (January 30, Because: Not just Acadia. Starting with section 112, EPA’s mercury 2004). The rain in Bridgeton is contaminated emission standards violate the Clean Air Act with ‘‘more than twice the generic EPA in several ways. First, EPA used stack tests Administrator MIKE LEAVITT, and coal data from the lowest-emitting fa- U.S. Environmental Protection Agency, EPA aquatic life and wildlife standard and over 14 cilities, and then, in the name of estab- Docket Center (Air Docket), U.S. EPA West, times the new more protective human-health lishing an ‘‘achievable’’ standard, subjected Pennsylvania Avenue, NW, Washington, standard developed for the Great Lakes,’’ ac- these data to a series of statistical manipu- DC. cording to studies by the Mercury Deposition Network. lations that resulted in an emission standard DEAR ADMINISTRATOR LEAVITT: EPA’s cur- The EPA’s motto is Protecting ‘‘Human far higher than what the plants achieved as rent proposal to regulate hazardous air pol- Health, Safeguarding the Natural Environ- a regular matter. EPA took several short- lutants emitted by the electric utility indus- ment. Pray tell what do they propose to tell term emission observations from each facil- try does not adequately protect public the populace as it slowly dies from mercuy ity, ranked them from best to worst, and health or our fisheries. It is important to contamination? What does it take to get picked the emission level that was worse Maine Trout Unlimited members that the them to abide by their motto? than 97.5 percent of the data set, resulting in electric utility industry takes responsibility Apparently it takes many lawsuits to re- a figure that represented virtually the worst for its harmful emissions. quire the EPA to do it’s job. performance the plant experienced. The Congress specifically lists mercury as a 1. The goal of one case, by Earthjustice is agency then took this figure for each of its hazardous air pollutant in section 112 (b) of to force the EPA to require Ohio to tighten top-performing sources and applied a second the Clean Air Act because of its toxic nature the controls on some of the worst air pollu- 97.5 percent adjustment, thus resulting in a and its health effects. Toxic air pollutants tion in the country. Oct. 02 number that, as best we can tell, is meant to must be regulated so as to require the max- 2. Another case: The court settlement re- represent a prediction of the worst perform- imum achievable control technology (MACT) quires EPA to formally determine, by April ance any similar source might experience at every source. The Maine Council of Trout 2004, which areas have smog that violates the under the worst conditions. As a last step (or Unlimited is concerned about EPA’s proposal 1997 national air quality standards for ozone. perhaps I should say straw), EPA then took to allow trading of this toxic material. Once EPA makes those determinations, state this calculation of the worst-of-the-worst All of the New England states have State- and local governments will be called on to short-term emissions and used the result as wide Mercury Advisories and within the prepare smog cleanup plans adequate to the basis for an annual emission limit. This State of Maine’s Open Water and Ice Fishing meet the standards. statistical manipulation is indefensible—it Regulations book is a warning about eating 3. Another case: Challenged EPA’s author- effectively assumes that the worst condi- freshwater fish: Warning: Mercury in Maine ization of the use of vinclozolin; a dangerous tions that the worst facility in the group freshwater fish may harm the babies of preg- fungicide linked with serious birth defects briefly experienced will exist throughout the nant and nursing mothers, and young chil- and other health maladies. year. EPA goes far beyond ensuring that reg- dren. Mercury is one of the most toxic sub- ulated facilities will be able to meet the The proposed mercury MACT rule should stances in the world, more toxic than lead or standard under ‘‘reasonably foreseeable cir- require emissions reductions from all coal- arsenic. cumstances,’’ and instead makes sure that fired power plants by 2008 that are equiva- So how do we get the EPA to do it’s job? they will meet them under circumstances lent to the level that can be achieved by the Another lawsuit? We demand an end to air- statistically certain never to occur. Even if most up to date pollution controls. We borne mercury pollution. We demand that one accepts some of EPA’s assumptions, the strongly urge the EPA to adopt a rule that the EPA protect over 630,000 infants born consequences of the agency’s most egregious will protect human health and our fisheries. every year with levels of mercury in their numbers games are extreme; for example, by Sincerely, blood so high that it can cause brain dam- using the second 97.5 percent adjustment and GREG PONTE, age. by making the emission limit annual, EPA Council Chair. weakened the standard for bituminous coal Good afternoon. My name is Jon Devine, burning units by more than a factor of four. My name is Marjorie Monteleon. I live on and I am representing the Natural Resources Had EPA not used these two devices, we cal- Mt Desert Island where Acadia National Defense Council. I am an attorney in NRDC’s culate that the agency would have to reduce Park is located. I chose to drive between 5– Health and Environment program. Before emissions from bituminous, subbituminous, 6 hours round trip to protest the EPA’s pro- coming to NRDC, I defended and imple- and lignite units to approximately 10.5 tons posed relaxing of the regulatory approach to mented the Clean Air Act in a number of pol- per year. By contrast, EPA uses these gim- mercury in air pollution. icy and legal positions for both state and fed- micks to justify allowing power plants to Why? eral agencies. I am also a parent of two emit approximately 34 tons per year, which Because: Some tree swallows in Acadia Na- young sons. I am troubled that the agency is is precisely the same level of mercury con- tional Park are more mercury-contaminated shirking its public health mission and its du- trol that EPA predicts will occur as a co- than birds at a Superfund site in Massachu- ties under the Clean Air Act while con- benefit of controlling other pollutants. What setts, according to Jerry Longcore, of the signing states to a future of contaminated a remarkable coincidence that EPA’s tech- U.S. Geological Survey. waterways and fish. Beyond that, EPA’s mer- nical staff performed these calculations and Because: ‘‘The mercury in rain falling on cury proposal offends me as a parent, be- just happened to find that they required the Acadia National Park peaked at . . . close to cause the agency is telling my kids to wait exact same level of reductions EPA had four times the current EPA standard and until adulthood to see fewer mercury reduc- sought to achieve legislatively and that it over 23 times higher than the Great Lakes tions than the law requires to be accom- now proposes to accomplish with its alter- human-health standard.’’ On average, the plished before my youngest is in grade native section 111 proposal. rain in Maine carries mercury levels more school. The second major flaw with EPA’s section than three times greater than the EPA’s up- EPA has proposed a program that demands 112 proposal is its failure to examine basic dated human-health standard for the Great no mercury reductions in the near term ex- emission reduction techniques as MACT. Lakes. cept those that would otherwise occur, asks EPA discards precombustion controls by sug- Because: Seal Cove, Hodgdon Pond, and power plants to make only modest improve- gesting that some sources in the industry Aunt Betty Pond, in Acadia National Park ments by 2018, and sets up a trading mecha- might find them difficult to implement, but are highly contaminated. It may be unsafe nism that will actually delay pollution con- it does not undertake a MACT analysis to for anyone to eat any fish from these ponds. trols far beyond 2018. The agency’s approach evaluate whether the superior performers in Because: 20 to 25 percent of ‘‘loons’’ in stands in stark contrast to what the Clean the industry engage in pollution prevention Maine have high mercury levels, high Air Act requires—reducing mercury pollu- activities that minimize mercury emissions. enough, in fact, that they are at risk of neu- tion by as much as 90 percent within three Moreover, when one compares EPA’s pro- rological and behavioral problems; those years. My testimony focuses first on EPA’s posed 29 percent reduction to analyses by loons fledge 40 percent fewer young and we grotesquely weak section 112 proposal, then State regulators and others, the agency’s know that mercury levels in loons are a its proposal to revise history and undo the characterization of its program as MACT ap- measuring stick for mercury levels in our en- agency’s determination that regulating pears laughable. For instance, the Northeast vironment. And we know that mercury in power plant mercury is necessary and appro- States for Coordinated Air Use Management our environment eventually winds up in our priate, and finally its proposal to find the recently concluded that ‘‘existing control de- bodies. authority in section 111 of the Act to do ex- vices designed to reduce other pollutants can

VerDate jul 14 2003 01:46 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00072 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.074 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1303 deliver substantial mercury reductions,’’ industry to comply at individual units, shape perfectly to do their jobs. Mercury de- with some bituminous-fired units achieving across whole plant sites, or even by aver- forms the shapes of proteins. 95 percent reductions and subbituminous aging throughout whole industries. This Proteins do an amazing number of dif- units achieving over 70 percent reductions. strained interpretation fails because it ferent jobs. They transport materials into NESCAUM also noted that mercury-specific threatens to swallow the rest of the Clean and throughout our bodies, and convert food controls, such as activated carbon injection, Air Act whole and because other parts of the into energy. They enfold and protect the were successfully deployed in U.S. coal-fired Act—such as the MACT provisions—use the DNA double spiral staircase. They form the plants and achieve over 90 percent control, same or similar terms and would be rendered delicate spindles that pull the chromosomes and Iowa permitting authorities recently re- absurd if they were read the way EPA now into the two daughter cells after division. On quired a new subbituminous plant to achieve reads section 111. The proposal’s reach also immune system cell surfaces, they recognize 83 percent control. exceeds its grasp by concluding that the and help engulf invading microbes. They Third, EPA’s proposal does not set emis- Clean Air Act can be read to allow EPA to help us perceive our environment and sur- sion limits for several hazardous air pollut- regulate HAPs under section 111, when the vive through our five special senses. ants the agency admits are released from law was clearly intended to achieve HAP One of the most amazing things proteins utility units. Doing so simply flies in the control under section 112. do is control brain development. The brain face of prior court decisions interpreting the Most of all, however, the section 111 pro- does not just start out as a single cell and MALT provisions of the Clean Air Act, and posal is feeble. It concludes that a 29 percent grow ever larger. Brain cells actually move nothing in section 112(n)’s ‘‘necessary and mercury cut by 2010 and a 69 percent reduc- around in the embryonic brain. Some cells appropriate’’ language allows the agency to tion by 2018 represents what companies can are killed off by others. Brain cells send out issue rules only for those pollutants the achieve, even though greater reductions are axons and dendrites that hook up with other agency feels are of concern. possible much earlier with existing tech- very specific neurons which are often many Fourth, EPA proposes to allow sources to nology. Moreover, EPA intends to implement inches away. All these actions must happen participate in a pollution trading scheme so this reduction program using a cap-and-trade at very precise times, measured in single that plants in the aggregate will emit 34 tons scheme that would allow polluters to bank days or even hours. At every step proteins on of mercury annually, but no individual plant emission credits and therefore would permit the surface of cells and their outgrowing would need to meet any particular emission emissions to remain significantly elevated axons and dendrites must sense their envi- limit. The agency suggests that either sec- far into the future. Last summer, EPA per- ronment. They react to minute traces of tion 112(n)(1) or 112(d) of the Clean Air Act formed modeling analyses of the Clear Skies messenger chemicals released by other brain might provide it authority to create such a Act and predicted that power plant mercury cells that tell them where they are and where to go. Thousands of such events hap- system, but neither section authorizes such emissions would be cut by only 43 percent, to pen during thousands of moments that are a radical approach. Section 112(n)(1) does not approximately 27.8 tons, by 2026, despite the ‘‘windows of vulnerability’’, during which provide authority to vary the characteristics law’s 15–ton cap established for 2018. The bad things can happen. of a MACT standard, and section 112(d) does trading scheme also raises the specter of Each gene makes a protein that interacts not permit EPA to create a cap-and-trade toxic hotspots around companies that buy with many other proteins. Fetal brain devel- program encompassing multiple sources. The credits rather than clean up. opment is like a symphony with a hundred agency itself acknowledged this several This brings me back to where I began. thousand instruments. Each must come in at years ago, when it concluded that ‘‘no aver- EPA’s proposals deny our children’s genera- the perfect time and the perfect pitch or you aging can be permitted between sources that tion what the Clean Air Act promises. Rath- get a damaged child. This damage can often are not part of the same major source.’’ er than deliver dramatic mercury reductions be detected by sophisticated psychological by the time my sons are 7 and 3 years old, Fifth, EPA’s proposal arbitrarily defines tests such as ‘‘The Boston Naming Test’’. EPA has proposed a program that will allow subcategories based on coal rank. This These children can often look superficially emissions to remain at excessive levels at choice is flawed because EPA admits that normal but have problems with hearing or nearly a quarter of the coal-fired units in the least until they are well into their twenties. motor skills and later problems with lan- Nation currently fire different ranks of coal, To do so, EPA will have to violate numerous guage, attention, and memory. They are and because many more may be capable of provisions of the Act, and will likely provoke often marginalized and end up in special ed, doing so. This fact suggests that the pur- litigation that causes additional delay. in prison, and on the welfare rolls. ported differences between units that burn Rather than choose this ill-conceived course, Field research summarized in a recent re- different ranks of coal are of little real-world the agency can and must implement the law port by the Biodiversity Research Institute consequence. and require companies to implement dem- shows multiple adverse effects of mercury on Perhaps because of these obvious legal onstrated technology to reduce toxic mer- various fish-eating birds, such as our beloved problems with the agency’s attempt to shoe- cury pollution immediately. Thank you. Maine loon. Loon fertility in Maine lakes horn its desired result into section 112 of the can be 40 percent reduced because of mercury Act, EPA has developed an alternative plan To the Environmental Protection Agency blown in on the prevailing winds from the to avoid section 112—it proposes to undo the from a Maine physician: Midwest. Stress hormone levels have been December 2000 regulatory determination The EPA must be true to it’s mission and shown to increase as mercury increases. No that controlling mercury from power plants fight to the bitter end against the ‘‘cash and reproduction occurs when mercury levels in under section 112 is necessary and appro- carry’’ proposals the Bush administration fish are over a certain threshold. Loon par- priate, and proposes to remove utility units has adopted from secret industry memos. We ents with high mercury levels will spend less from the list of source categories subject to in Northern New England have a huge stake time sitting on their eggs and chicks warm- MACT. EPA cannot lawfully rescind its de- in this since much of the toxic mercury that ing and protecting them, less time foraging termination because section 112(c)(9)(B) dic- rains down on us originates in Pennsylvania to feed them, and less time in generally high tates the specific mechanism that EPA must and a few other big coal States upwind. The energy activities needed to support the next follow in order to avoid setting emission Bush administration will enshrine ‘‘Clear generation. They rest more or swim aim- standards for listed source categories. That Skies’’ into law unless government agencies lessly in front of the nest. Present mercury provision only allows source categories to be sworn to protect public health dig in to pro- levels can even cause abnormal loon feath- removed from the regulatory list if no indi- tect the people from these assaults as they ers. Some fishing birds like the Great Egret vidual source is a danger to health or the en- did against arsenic in our drinking water! have been shown to have problems catching vironment, but EPA does not even attempt Mercury is a persistent poison which is fish. This is felt to be due to difficulty see- to make this showing in its proposal. concentrated many thousand times as it ing. Some fish species with high mercury Finally, I want to turn to EPA’s proposed moves up the food chain into the bodies of levels have been shown to have trouble section 111 two-phase, cap-and-trade, mer- ‘‘top predators’’—loons, eagles, Florida pan- avoiding predators. cury program, which is the administrative thers—and mothers and babies. Your new The present administration has a long his- twin of the Clear Skies proposal. This ele- EPA guidelines, based on the latest research, tory of ignoring science in favor of short ment of the agency’s preferred approach is indicate 600,000 babies yearly are at risk of a term profits for friends in industry. The EPA remarkable because it is simultaneously au- wide range of developmental and learning must help them accept the truth! dacious and feeble. The proposal is audacious disorders from mercury. The risks continue Sincerely, because EPA purports to find the authority into early childhood. Paul Averill Liebow MD FACEP, in section 111 to do virtually anything it Mercury poisons our bodies by interfering Bucksport, Maine. Maine Physicians for So- pleases in regulating stationary source emis- with proteins, which are the machinery of all cial Responsibility, Steering Committee; sions. The agency interprets the section’s cells. They orchestrate every move of the Natural Resources Council of Maine, Board use of the terms ‘‘best,’’ ‘‘system,’’ and dance of life. Proteins are long strings of of Directors; National Wildlife Association, ‘‘standard of performance’’ to allow EPA to smaller molecules known as amino acids Maine Representative to Annual Meeting devise, so long as it considers certain factors that must fold up like origami after cre- March 2004. in doing so, whatever emission control re- ation, then bind to other proteins or chemi- gime it thinks works best, and to permit the cals in our cells. They must maintain their MARCH 1, 2004.

VerDate jul 14 2003 02:36 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00073 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.078 H18PT1 H1304 CONGRESSIONAL RECORD — HOUSE March 18, 2004 Re: proposed National Emission Standards I’m Dr. Jim Maier, a child and family psy- with language and visual-spatial abilities, for Hazardous Pollutants; and, in the Al- chiatrist with over 25 years experience living and memory impairments. It’s hard to pin ternative, Proposed Standards of Per- and working in Maine. I’m also the father of down just what role mercury plays in such formance for New and Existing Sta- two daughters of child bearing age. And impairments because the research is less tionary Sources: Electric Utility Steam since I’ve spent most of my professional ca- well developed than with lead, another Generating Units; Docket ID No. OAR– reer helping to take care of the behavioral known bad actor. But as with lead poisoning, 2002–00.56, 69 Fed. Reg. 4652 (January 30, and neurological problems of kids who, for as more research is done, we will probably 2004). whatever combination of reasons including become more concerned, and may be low- Administrator MIKE LEAVITT, fetal brain damage, have been handicapped ering what we think of as ‘‘acceptable’’ expo- U.S. Environmental Protection Agency, EPA in school and in life, this is not just an aca- sure levels. What’s an acceptable level to a Docket Center (Air Docket), U.S. EPA West demic issue for me. loon? The EPA heard testimony from the (6102T), Washington, DC. The glaring fact that this is a ‘‘Shadow’’ Natural Resources Council of Maine at a re- DEAR ADMINISTRATOR LEAVITT: As chefs hearing in the absence of EPA speaks vol- cent hearing in Philadelphia that loons in from Portland, ME, we are deeply invested in umes about the moral cowardice and irre- Maine test 4X higher with respect to mer- the safety of the seafood we prepare and sponsibility of this administration. The Feds cury levels than loons in Oregon. What levels serve to our patrons. Today, we write to re- know a lot about the toxicity of mercury are o.k. for Bald Eagles, whose reproductive spectfully express our concerns over the pro- emissions of coal-fired plants in the Midwest success may be jeopardized by the mercury posed rule by the U.S. Environmental Pro- for New Englanders and others ‘‘at the end of they concentrate in their bodies. Unfortu- tection Agency (EPA) to control mercury the tailpipe,’’ but seem not to care what we nately they don’t vote, but we’ll be voting on emissions from coal-fired power plants. think. It’s a lot like a Bishop who has their behalf in November! Every year, people from all over Maine and learned there’s a bad priest in his Diocese Perhaps if the Bush administration cared the country enjoy the fine seafood offerings sending that individual out of State to some to reduce their blatant hypocrisy about ‘‘No of Portland; we pride ourselves on the wide other parish, and just not wanting to hear Child left Behind,’’ they should just come selection of fresh seafood dishes that our how many more children have been abused out and speak plainly about ‘‘No Child Left many visitors enjoy year after year. and harmed in the new location. Unexposed to Toxics.’’ Whether preparing a salmon filet or seared We know mercury is a bad actor. We’ve Representative Allen, we hope that you tuna, chefs know that fresh seafood is a crit- taken many measures here in Maine to clean will pass on to your colleagues in the Maine ical component of our cuisine, which is why up our own State. Like 45 other States, we’re Delegation who also care about clean air and keeping it safe is so important. Unfortu- warning people not to eat much fish. (The water, and to the EPA which apparently nately, the levels of mercury in some species administration does deserve credit for pro- doesn’t care nearly enough, the angry earful of fish such as swordfish, oysters, tuna, hal- moting ‘‘catch and release,’’ but only be- you’re hearing today from Maine people! ibut, red fish, pike, sea bass and others make cause it’s allowing the fish to become pro- Respectfully Submitted, them unsafe for young women and children. gressively more toxic to mothers of child- JAMES H. MAIER, M.D., Mercury pollution poses a real threat to pub- bearing age!) But to delay implementation of A.B.P.N. Certified Child lic health. the existing technology to reduce mercury and Adult Psychiatrist. Right now, power plants across the coun- emissions by 90 percent by 2008, and allowing The rule that I mentioned, the pro- try are contributing to a looming mercury another decade of relaxed standards in re- crisis, contaminating much of the seafood posed rule that favors polluters, raises turn for fat campaign contributions from the serious questions about this adminis- that Portland is so famous for. Electric polluters, is a devil’s bargain Mainers don’t power plants are responsible for approxi- accept. This proposed delay, or meaningless tration’s commitment to the health of mately 30 percent of the country’s mercury shell games allowing some plants to con- our citizens. Regulating hazardous air emissions and are the only major mercury tinue to pollute if others clean up, means pollutants is in fact for many people a polluters that remain uncontrolled. Smoke- that perhaps 5 percent or more of women of life-and-death matter and Congress de- stacks spew mercury pollution into the air, childbearing age will continue to have un- signed a system under the Clean Air where it rains and snows down into our wa- safe levels of mercury in their bodies, and be Act to ensure regulations are developed terways and accumulates up the food chain. putting tens of thousands of their babies at The principal way that people are exposed through an objective rulemaking proc- risk of damage to their developing brains or to mercury is by eating fish, a staple of our ess. Yet the attainment dates and level cardiovascular systems. (A long term study restaurants. Maine and 43 other States, the sponsored by Dr. Philippe Grandjean of the of reductions exactly match the Presi- EPA and the Food and Drug Administration Harvard School of Public Health in the dent’s Clear Skies proposal. In other have issued various advisories warning peo- words, the proposal that he and his ple, especially women and children, to avoid Faroe Islands has published objective evi- or limit eating some types of fish. Even with dence about this in the Journal of Pediat- staff generated for reductions is the such warnings in place, the Centers for Dis- rics.) proposal that has come out of the EPA. Again to use the sex offender analogy, it’s ease Control and Prevention estimate that 1 But that is not the way the EPA is sup- as if we are registering all sex offenders and out of 6 U.S. women of child-bearing age posed to work. The EPA is supposed to pedophile priests in Maine, notifying neigh- have unsafe levels of mercury in their blood. do independent, scientific analyses so In the interest of our customers, our borhoods and churches about the risks of let- ting them be in our communities, but then that its rules are based on sound health and our environment, we are joining science, not made up as part of a polit- together to ask for action to keep the mer- permitting any other States to send con- cury levels from increasing. To make sure victed child molesters here, and turning a ical document. that mercury contamination does not affect blind eye to what damage and trauma these The Bush administration allowed in- the popularity of the restaurant industry in out-of-state sex criminals may inflict on dustry to write part of the rule. That is Portland, we write to request stronger regu- Maine children. profoundly disturbing. The proposal lations on power plant emissions of mercury. Like all other medical students, I learned that would allow trading under section Officials can, and should, take immediate the name Minimata early in my training. Like Chernobyl, Bhopal, and Love Canal— 112 appears to have been written word action to nearly eliminate the mercury pol- for word by Latham and Watkins, a law lution that’s spewing into our air from power other names that live in environmental in- plants. Two years ago, EPA’s own scientists famy—it was the site of an environmental firm in Washington representing utili- said current technologies could achieve a 90 tragedy that taught just how poisonous high ties. EPA’s assistant administrator for percent reduction from power plants. The dose mercury can be. Death, blindness, cere- air and radiation, Mr. Jeffrey Bush administration should remove as much bral palsy, severe mental retardation, sei- Holmstead, used to be a partner at mercury from power plants as is techno- zures and other severe symptoms occurred in Latham and Watkins. Mr. Holmstead logically feasible—90 percent. the exposed population around Minimata now says, well, the Latham and Wat- Bay, Japan where an industrial spill oc- We respectfully urge the EPA to adopt a kins contribution to the rule was sub- rule that maximizes the protection of human curred. But we also know that subtle but health and our fisheries by regulating mer- definite brain and central nervous system ef- mitted by the Energy Department. He cury emissions to the level that we know is fects can happen with exposure to far lower says it came from the Energy Depart- technologically feasible and to do so quickly. doses that come from eating even moderate ment. The White House says Jeffrey Sincerely, amounts of fish contaminated by methyl Holmstead was the brains behind the BECKY LEE SIMMONS, mercury, an easily absorbed compound that cap-and-trade proposal. But wherever Chef, Owner, is spread through the body, across the pla- it came from, the Latham and Watkins Katahdin Restaurant. centa, and is secreted in breast milk. This is language, about three or four para- insidious, because mothers may not even be TESTIMONY OF DR. JIM MAINER REGARDING symptomatic with levels of mercury that can graphs, submitted to the EPA, is in the AIRBORNE MERCURY POLLUTION definitely affect their more vulnerable fetus. finished rule, word for word. Thank you Representative Allen and oth- Higher mercury exposure on the developing An EPA career professional told the ers for this chance for Mainers to speak out brain has been correlated with decreased at- L.A. Times the other day that they, on this issue! tention, fine motor impairment, problems the career professionals, were told not

VerDate jul 14 2003 02:36 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00074 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.081 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1305 to undertake the normal scientific and did the investigators find out? They health-oriented way? No. Did they ap- economic studies called for under a found out that he hosted a get-to- point people to the reflective commit- standing executive order in preparing gether, a little shindig for all the lob- tees that made their decision? No. the rule. In other words, they take the byists to come down and do business They had special interests on their op- information straight from the law with me, boys, I am now in charge of eration, and they failed the health of firms representing the utility industry, the Department. That is not what we the American people. they do not do the scientific tests that expect from our public officials, and as We could go on and on, but we are are required by law, and they come out a result, we have seen some ignoring of limited by time. This is a system that with a proposed rule and that proposed good science, which has caused tremen- has corrupted the democratic process, rule is a bonanza for the coal industry dous problems for ranchers in Wyoming and some of the best evidence that I and those utilities that use coal. It is of contaminating the water supply be- know of, and the gentleman may have outrageous. cause they have shown more interest talked about this already, about a I am very pleased that the gentleman to K Street than to Main Street. month ago, 20 nonpolitical Nobel laure- from Washington (Mr. INSLEE), the Second example, we had over a mil- ates, and Nobel laureates usually think other end of the continent, his loons do lion people testify about whether to about physics and chemistry rather not have as much mercury in their preserve old-growth timber in our re- than politics, and they do not pound a feathers as loons do from Maine but he maining 10 percent of our national for- lot of yard signs and they are not inter- is here because this is an issue that he ests that have not been clear-cut, and ested in running for public office, but cares deeply about. I thank him very we went out to ask what the public 20 people who won the Nobel Prize, much for being here. thought of the President’s proposal to Americans in various sciences, chem- I yield to the gentleman from Wash- open up what we call the roadless areas istry, physics, name it, they were so ington. to clear-cutting, and the public re- disturbed by what this administration Mr. INSLEE. I appreciate the gen- sponded. There were over a million was doing in ignoring science to cater tleman from Maine bringing this im- people who told the administration to to special interests, they got together portant matter to national attention. I keep their handsaws and their and wrote a letter to the President of do care about the mercury contamina- chainsaws from clear-cutting our the United States, and their basic mes- tion which this country will be experi- roadless areas. And they got maybe sage was start listening to good science encing because of the attempted sell- three letters from the lobbyists on K rather than bad special interests. out by this administration to special Street. And it is a pretty extraordinary interests which will result in more So what did this administration do? event when scientists will get out of mercury in the blood of young children They are gutting this protection of the the lab, frankly, where they do tremen- in America. If that sounds like a strong most pristine, the most precious crown dous work, and write a letter like that statement it is, and it is true. jewels in our national forest system to to the President of the United States. But one of my concerns here is this is allow these 6-foot and 8-foot and 10-foot These are Democrats and Republicans, not just the only instance when this 600-year-old trees to be cut down in probably some Green Party members in administration has knuckled under to clear-cuts, violating the clear science there too. So I think it is an indication the interests of special interests on K that that is not what we should be of how sour and corrupted this system Street rather than the public interest doing with the roadless areas. And why has become. And so we are down here which is supposed to be expressed on did they do it? They did it because this blowing the whistle on it, and I want to Independence Avenue where the U.S. administration is extremely sensitive thank the gentleman from Maine (Mr. Capitol is located. I just want to say to K Street and not sensitive to the ALLEN) for his efforts. that this is not, unfortunately, an ab- health interests and well-being, as they Mr. ALLEN. Mr. Speaker, I thank erration of this administration’s sell- should be, of our constituents. the gentleman from Washington (Mr. out to special interests, to ignore Let me tell the Members why this is INSLEE) for his remarks, and I appre- science, to ignore clear health implica- important. A lot of people do not think ciate his leadership on this issue. And tions. It is consistent with their pat- of forests as a health issue, but we have he is exactly right. That group of dis- tern of neglect of science and they are found out that is where our clean water tinguished scientists was saying that showing great attention to special in- comes from, from the forests. This is this administration over and over terests. They need to do it the other the greatest water purification system again manipulates science to serve the way around. We need an administra- the planet has. And this administra- ends of their policy. tion that will show special sensitivity tion ignored 1.2 million people who told I am going to yield to my friend from to health interests and ignore special this administration to ignore K Street Maryland in just 1 minute, but just to interests on occasion. They have got it and fall to the wishes of people, which pursue this question of who is writing exactly backwards. They show exquis- they did not do. the regulations, we have already point- ite attention to lobbyists from these Third issue, and again I think it is ed out that the EP professionals were industries and ignoring the clear important to note, anyone can make a shut out of the process of doing sci- science for health to the American peo- mistake and any administration can entific studies of this proposed mer- ple. I want to list some of the other make a mistake once in a while, but cury rule and that Latham & Watkins, places where they have done this. this is just a long train of abuses, an a Washington law firm, wrote part of unbroken chain of following special in- the rule. There is another group in- b 1600 terests rather than the health of the volved. This is West Associates, a re- And the oil and gas industry that has American people. When we are consid- search and advocacy group rep- attempted to open up these methane ering lead poisoning levels in the lead resenting 20 power and transmission drilling wells in a variety of places, the paint industry, which is of some inter- companies in California and other Rocky Mountains, including wilderness est to Members of Congress now be- Western States. The proposed rule con- areas in Utah and in the Arctic Na- cause we are drinking water with too tains exact language requested by West tional Wildlife Refuge, they have ca- much lead in it in the Washington, D.C. Associates, and the West language sug- tered to specialists; and they have ig- system, which is an issue we are going gests a standard for determining likely nored the clear import of science. to have to address, and maybe that ex- mercury emissions at power plants. We are not the only ones who care plains some of the bad legislation In other words, a provision that was about this. There have been some in- around here, I am not sure; but in con- enormously beneficial to the power vestigations in the Department of Inte- sideration of lead poisoning levels, in plants was put in this proposed rule, an rior about a fellow who used to work 2002, the CDC’s Advisory Committee on EPA rule, word for word. So part of it for the oil and gas industry, then was Childhood Lead Poisoning Prevention came from Latham & Watkins here, a put as the fox in charge of the hen was preparing to address the issue, and law firm here, and part of it came from house, supposedly regulating. What they had been advising that we need to West Associates in California. How can was the first thing he did, like in the address this issue. Did the administra- the public have any faith that their in- first few weeks on the job? And what tion address this issue in an aggressive, terests, their health interests, are

VerDate jul 14 2003 01:46 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00075 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.105 H18PT1 H1306 CONGRESSIONAL RECORD — HOUSE March 18, 2004 being protected by an administration problem up in Maine. It is a problem in as it is. We are going to develop a sys- which routinely violates the Clean Air Washington State. It is a problem tem that was developed for sulfur diox- Act in developing its regulations, all as around our country. And currently ide that will allow that dirty plant to a way to try to reduce expenses for the advisories for mercury are increasing buy credits from clean plants, and so coal industry and the utility industry, faster than any other pollutant. They the dirty plant can simply continue both big contributors to Republicans now represent 60 percent of all water spewing out the mercury and poisoning and to the administration? bodies with fish advisories nationwide. people in the surrounding area. It is Mr. INSLEE. Mr. Speaker, just one So this is a national problem. It is a the height of irresponsibility. final note. There is a reason that the problem obviously in the Chesapeake That is why I come back to what I Vice President of the United States re- Bay Watershed, which we have a par- said earlier. There is no question that fuses to let the people who hired him, ticular interest in locally; but it is a under the Clean Air Act mercury, which is the American people, know problem throughout the country. which has been found to be a hazardous what went on in this secret operation And as my colleague from Maine was air pollutant, was meant to be regu- that took lobbyist language and put it pointing out, we have an administra- lated under section 112 of the act, enti- in our energy bill. There is a reason for tion now that when it comes to issues tled ‘‘Hazardous Air Pollutants,’’ and that. And that reason is another symp- of science, when it comes to issues of all of the work being done by the ad- tom of the sickness that is on our body the environment, really the White ministration to date with this proposed politic right now. And I want to thank House has become an evidence-free rule is a way to let coal producers and the gentleman for his efforts zone. I mean, we can get scientists, we utility companies off the hook so they Mr. ALLEN. Mr. Speaker, unfortu- can get Nobel laureates, we can get a will not have to spend the additional nately the problem continues. Justice consensus of opinion throughout the money they need to spend to clean up Scalia today issued a statement that scientific community coming down on their act. And in doing that, the ad- he would not recuse himself from a Su- one side of an issue; and yet time after ministration is simply putting the preme Court case involving the Cheney time the administration throws out the health of the American people at risk. documents even though he went on a facts, buries its head in the sand, and It is absolutely mind boggling. Un- hunting trip with the Vice President decides to go the other way. less one is down in the middle of this on Air Force 2 to a preserve owned by We understand that mercury poi- and seeing this going on over and over an oil executive. The beat goes on. soning is something that affects people again, with this administration, when It is my pleasure to yield to the gen- throughout this country. Of course, the choice is between public health or tleman from Maryland (Mr. VAN pregnant women and children are par- the interests of polluters, polluters HOLLEN), who has taken a real leader- ticularly vulnerable to mercury poi- win. ship position on these issues. And soning. And so this idea that the EPA I yield back to the gentleman. Maryland is next door, it has got a lot now has, the Bush administration EPA, Mr. VAN HOLLEN. Mr. Speaker, I of water, and the last thing they need of establishing a cap-in-trade program thank my colleague for yielding to me, is contaminated waterways. And I for mercury, which may be a very ac- and he is exactly right. The problem yield to the gentleman. ceptable proposal for less poisonous with this is we need to make sure that Mr. VAN HOLLEN. Mr. Speaker, the contaminants, but when they have a the American people understand what gentleman is right, and I want to cap-in-trade program for something as is happening. That is why I am glad thank the gentleman from Maine (Mr. poisonous as mercury, what they are that he is doing this. Because we have ALLEN) for his leadership and the gen- saying to those people who happen to an administration that goes out and tleman from Washington State (Mr. live right next door to the power plant does a lot of photo ops with beautiful INSLEE). And I want to tell the gentle- that is emitting mercury is it is okay landscapes in the background. There is men a little good news/bad news story; if they get poison; as long as their a lot of rhetoric about the importance and we had some good news this morn- power plant buys credits from some- of preserving our environment, pro- ing, which is that a group of bipartisan where else, buys the right to pollute, tecting areas like the Chesapeake Bay; Members of Congress from the Chesa- they can put as much mercury into the but while we have this great public peake watershed States got together air around their plant as they want. face of environmental protection on and established the Chesapeake Bay That is a health disaster for people in the one hand, on the other hand, when Watershed Task Force. The Chesapeake the area. Again, it is one thing to treat it comes to the regulatory process, peo- Bay is one of the greatest national less poisonous pollutants that way; but ple are very busy unraveling protec- treasures in the United States, indeed to take a hazardous pollutant like mer- tions that have existed for years and in the world; and so we got together to cury and say go ahead and pollute, go years and years, and that is what this pledge ourselves to work together to ahead and contaminate the water in a regulatory assault is about. clean up the Chesapeake Bay and take particular area, it is going to mean se- the steps that are necessary. But this rious health problems for women and b 1615 Bush administration proposal on mer- children in that area and throughout It is one of many that has taken cury that the gentleman has drawn our the country. place in recent years, and it is very im- attention to takes us in exactly the Mr. ALLEN. Mr. Speaker, I thank portant that we put a stop to it. wrong direction. It takes us backwards. the gentleman for those comments, and Mr. ALLEN. Mr. Speaker, those are We all know that mercury consump- they are worth elaborating on because excellent points. tion advisories have been issued in the past sometimes people who have I wanted to mention another point throughout the United States; and, in lived around large power plants, par- here that has just come up. The admin- fact, mercury contamination of fish is, ticularly coal-fired power plants, they istration is starting to feel the heat. of course, is the number one cause for may have known that pollution prob- The new administrator of the EPA, the human contamination, human poi- lems were created in those plants in Environmental Protection Agency, Mr. soning. In my State of Maryland, we States far away, but they enjoyed the Leavitt, has now said that he is going have had statewide advisories. In Penn- benefit of lower rates. to reexamine this proposed rule. In sylvania and other States in the Chesa- The difficulty with mercury is just other words, they did not do the stud- peake Bay Watershed, we had a State- what the gentleman said. Mercury is a ies; they issued the proposed rule. Now wide advisory. And we know that re- substance that does travel some dis- he is saying we need to go back and do cent studies have shown that Maryland tance, but lots of it comes down in the the studies. This is the exact opposite is one of the States with the highest vicinity of the power plant itself. So of what normally happens. deposition of mercury in the country along the Ohio River Valley in east The gentleman said the administra- due to airborne mercury emitted from Texas, in other parts of the country tion was an evident-free zone. That power plants. And this, as the gen- where we have coal-fired power plants, seems to be the case. In past adminis- tleman has said, is a problem that is what the administration’s proposal is trations, you do the scientific analysis not unique to Maryland and to the basically saying is we do not care if the first and then come up with a rule. You Chesapeake Bay Watershed. It is a dirtiest plant in the country stays just would not come up with a rule written

VerDate jul 14 2003 01:46 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00076 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.107 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1307 by industry and then, when the heat pletely transparent. In the January 31, 2004, We seek your assurance that, if confirmed, got too much, say, well, we have to go Washington Post article, Mr. Holmstead you will act to ensure that the drafting and back and do some studies now. But stated ‘‘it came to us through the inter- review of the proposed rule are completed on agency process.’’ He also stated, ‘‘Neither a schedule that will honor the commitments that is exactly what has happened. I Bill [Wehrum] nor I had any idea this lan- the government has made to propose a rule think we need to say to the adminis- guage came from Latham & Watkins.... by December 15, 2003. tration, well, it is about time, thank Our technical folks . . . used it.’’ The Post We make this request because of the seri- you for going back and doing the stud- reports: ‘‘According to Holmstead, the law ousness of this issue. Two major Environ- ies. But they have also made it clear firm’s language was part of the public record mental Protection Agency reports to Con- that they do not really have much of and was passed along to the EPA by the gress document how hazardous air pollution from power plants, most notably mercury an intention, as far as I can tell, of pro- White House budget office and the Energy Department.’’ pollution, contaminates our lakes, streams, ducing any results until December, This appears to be at odds with press ac- and other water bodies, concentrates in fish, conveniently, after the election. counts of this rulemaking from just over a and causes serious health risks for pregnant I wanted to make a couple of points. month ago. On December 30, 2003, the Wash- women and children who eat those fish. A Over the past year, I guess I would say, ington Post reported that a senior White Centers for Disease Control and Prevention I have written on numerous occasions, House adviser said: ‘‘If you had to pick one report in January 2003 found that one in on February 12 of this year, last Octo- person, it was Jeff Holmstead in EPA’s air twelve women of childbearing age have mer- office who played the key role in develop- cury levels above EPA’s safe health thresh- ber 14, and May 21, 2003, I have written ment of the cap-and-trade approach to regu- old. In adults, exposure to unsafe levels of letters to the EPA about this exact lation of mercury emissions.’’ mercury can adversely affect fertility and problem, about the importance of doing We are deeply concerned that EPA’s rule- blood pressure regulation and can contribute the analysis and coming up with a Mer- making process has been improperly influ- to heart-rate variability and heart disease. cury MACT standard, as it is called, by enced by industry at the potential cost of The problem is nationwide: across the U.S., the deadline. I never dreamed that they the health of future generations of children. mercury pollution alone has contaminated 12 million acres of lakes, estuaries and wet- would come up with a proposal but Congress and the American people need to know how industry lobbyists came to write a lands (30% of the national total) and 473,000 never bother to do the science. significant portion of an EPA formal rule- miles of streams, rivers, and coasts (13% of Mr. Speaker, I would like to submit making proposal. the national total). As a result, forty-five for the RECORD at this time the three Therefore we request that you provide us states and territories have issued fish con- letters I sent to the EPA. with all communications (whether written, sumption advisories warning citizens to CONGRESS OF THE UNITED STATES, electronic, or oral) relating to mercury air limit how often they eat certain types of HOUSE OF REPRESENTATIVES, pollution between EPA officials and the law fish, because the fish are contaminated with Washington, DC, February 12, 2004. firm Latham & Watkins, other industry law mercury. Hon. MICHAEL O. LEAVITT, firms, electric utilities, and other outside We would appreciate receiving a written Administrator, Environmental Protection Agen- parties since January 1, 2003. Additionally, response to this letter as soon as possible, cy, Washington, DC. please provide us with information on any given that this is a time-sensitive matter and that the Senate may be considering your DEAR GOVERNOR LEAVITT: We are writing meetings that took place since January 1, regarding reports that portions of EPA’s pro- 2003, between EPA officials and representa- nomination in the very near future. Thank posal to address mercury air pollution have tives or employees of Latham & Watkins, in- you for your attention to this matter. been copied word-for-word from industry lob- cluding a list of the participants and the na- Sincerely, ENRY A. WAXMAN, bying materials. ture and purpose of the meeting. H Specifically, it appears that EPA has pro- Additionally, please explain if Latham & Member, U.S. House of posed a regulatory approach to mercury air Watkins memos were docketed in the rule- Representatives. pollution that in part is copied word-for- making process. If not, please explain why PATRICK J. LEAHY, word from memos prepared by the law firm such influential documents that formed the Senator, U.S. Senate. Latham & Watkins, which represent some of basis for EPA’s proposal were not docketed. THOMAS H. ALLEN, Please provide answers to each question the largest polluters in the country. This is Member, U.S. House of and responsive documents no later than Feb- particularly troubling because two key EPA Representatives. ruary 18, 2003. Thank you for your immediate officials who worked on the proposal were JANICE D. SCHAKOWSKY, attention to this issue. previously employed by Latham & Watkins. Member, U.S. House of Sincerely, On January 31, 2004, the Washington Post Representatives. HENRY A. WAXMAN, reported that an EPA proposal published on Member of Congress. CONGRESS OF THE UNITED STATES, January 30, 2004, ‘‘is similar to recommenda- TOM ALLEN, Washington, DC, May 21, 2003. tions from two memos sent to federal offi- Member of Congress. Hon. CHRISTINE TODD WHITMAN, cials by’’ Latham & Watkins. The article ex- Administrator, Environmental Protection Agen- plains the remarkable connections between CONGRESS OF THE UNITED STATES, cy, Washington, DC. EPA’s proposal and the Latham & Watkins’ Washington, DC, October 14, 2003. DEAR MS. WHITMAN: We are concerned by memos: ‘‘A side-by-side comparison of one of Hon. MICHAEL O. LEAVITT, recent reports that EPA has cancelled key the three proposed rules and the memoran- Governor of Utah, Office of the Governor, State analytical work intended to support the on- dums prepared by Latham & Watkins—one of Capitol, Salt Lake City, UT. going rulemaking on mercury and other haz- Washington’s premier corporate environ- DEAR GOVERNOR LEAVITT: We are writing ardous air pollutants emitted by the utility mental law firms—shows that at least a regarding our concern that EPA is at risk of sector (‘‘utility MACT rule’’). The failure to dozen paragraphs were lifted, sometimes ver- violating its legal and public commitment to conduct this analysis threatens to derail this batim, from the industry suggestions.’’ control emissions of mercury and other haz- important rulemaking to reduce highly toxic It does not appear to be in dispute that ardous air pollutants from power plants by mercury emissions from power plants, as EPA used the Latham & Watkins language the end of next year. Given the serious pub- well as impair congressional consideration of to make the substantive proposals that lic health and environmental harms from pending legislation to reduce air pollution Latham & Watkins advocated. The Wash- this pollution, any further delay in regula- from power plants. ington Post quotes one Latham & Watkins tion would be unacceptable. It is particularly disturbing that the Bush representative who states that it is ‘‘grati- Under a court-approved settlement agree- Administration may be seeking to delay the fying’’ that the law firm’s work had been ment, EPA is required to propose a regula- release of this information for political rea- ‘‘cut and paste[d]’’ into EPA’s rulemaking. tion establishing emission standards for haz- sons. Reports indicate that the analysis may Additionally, Jeffrey Holmstead, EPA’s As- ardous air pollutants from electric gener- have been cancelled because it could under- sistant Administrator for Air and Radiation, ating units (electric utility MACT rule) by cut the Administration’s Clear Skies Initia- confirmed that the language had originated December 15, 2003. For a ‘‘significant’’ rule- tive (CSI) by demonstrating that implemen- from outside of the agency. He stated, making, such as this one, EPA must submit tation of the existing Clean Air Act toxic air ‘‘That’s not typically the way we do things, a draft of the proposed rule to the Office of pollution requirements would produce great- borrowing language from other people.’’ Management and Budget (OMB) for inter- er reductions in mercury emissions than CSI, However, it is unclear how the Latham & agency review. OMB may, and frequently sooner, and at an acceptable cost. In the ab- Watkins language entered EPA’s rulemaking does, take up to 90 days to complete this re- sence of EPA analysis, the Northeast States process. As you know, Mr. Holmstead and his view. In numerous public pronouncements, for Coordinated Air Use Management chief counsel, Bill Wehrum, worked for Governor Whitman and other EPA officials (NESCAUM) conducted an analysis, which Latham & Watkins before joining the EPA. have repeatedly promised that EPA will indicates that recommendations from all but Both Mr. Holmstead and Mr. Wehrum have issue the MACT rule proposal by the Decem- one of the stakeholder groups would produce had high profile roles in this rulemaking. ber 15, 2003, deadline. Yet to our knowledge, greater reductions of mercury emissions and The Administration’s public statements on EPA has not yet transmitted a draft utility produce them significantly earlier than this matter appear to be less than com- MACT rule proposal to OMB. would CSI.

VerDate jul 14 2003 02:36 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00077 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.109 H18PT1 H1308 CONGRESSIONAL RECORD — HOUSE March 18, 2004 EPA should conduct timely analysis of As stated in the charge to the Working ness of certain mercury control technologies, mercury control options identified by the Group, the overall goal of the Working particularly when applied to facilities com- utility MACT rule stakeholder working Group is to provide input to EPA regarding busting subbituminous and lignite coals. group established by EPA. Absent such anal- federal air emissions regulations for coal- They also urged EPA to update the model to ysis, neither the public, EPA, nor Congress and oil-fired electric utility steam-gener- incorporate the latest findings on control will fully understand the expected environ- ating units that will maximize environ- technology demonstrations, particularly mental benefits from reduced emissions and mental and public health benefits in a flexi- with respect to activated carbon injection. deposition of mercury, nor the expected ble framework at a reasonable cost of com- C. Cancellation of planned IPM analysis costs to install and operate control tech- pliance, within the constraints of the Clean EPA has indicated that the next step in nologies for the various options under con- Air Act. The Working Group is to ‘‘conduct EPA’s intended rulemaking development sideration. analyses of the information, identify regu- process is to analyze regulatory alternative I. BACKGROUND latory alternatives, assess the impacts of the control options. The members of the Work- A. Mercury regulatory alternatives, and make prelimi- ing Group have expended substantial effort Mercury is a highly toxic substance. It is a nary regulatory recommendations for the in developing their recommendations for potential neurotoxin, and it is particularly source category.’’ these options. damaging to the development of the fetus. The Working Group has met 14 times to Initially, EPA planned to conduct this Effects from prenatal exposure can include date. While the initial intent was for the analysis far earlier in the utility MACT rule- mental retardation, cerebral palsy, deafness, Working Group to develop consensus rec- making process. The proposed regulatory de- and blindness. Even low-dose prenatal expo- ommendations, that did not prove possible. velopment schedule included in the charge to sure can cause persistent adverse effects on However, the Working Group has done exten- the Working Group stated that EPA would children’s development, such as delayed sive work identifying technical and policy conduct overall economic impacts and bene- walking and talking and impaired learning issues, thoroughly discussing these issues, fits analyses of regulatory alternatives from abilities. Adult exposure can produce sensory and clearly identifying the various stake- June through August 2002. After a period for and motor impairment, such as slurred holder positions on each issue. In October the Clean Air Act Advisory Committee to speech, blurred vision, tremors, and memory 2002, the Working Group presented a report consider the alternatives and provide rec- loss. In addition, several studies suggest that to EPA laying out eight key issues for the ommendations to EPA by February 2003, the even small mercury exposures may cause ad- rulemaking and the stakeholder positions on schedule provided that EPA would select the verse cardiovascular effects. The adverse ef- each of these issues, including recommended proposed regulatory alternative or alter- fects of mercury exposure on birds and mam- approaches for settling the MACT standard. natives in March 2003, and EPA would draft mals include impaired growth and develop- Since October, the Working Group has con- and review the proposed rule from April ment, behavioral abnormalities, liver dam- tinued to build upon this work, last meeting through August 2003. OMB would review the age, kidney damage, and neurobehavioral ef- on March 4, 2003. Although EPA has prom- draft proposal through November 2003, allow- fects. ised at least one if not more further meet- ing the Administrator to sign the proposal Mercury exposure is a serious public health ings, none have been scheduled to date. by December 15, 2003. While the initial target date for con- concern in the United States. Forty-two II. MERCURY CONTROL OPTION ANALYSIS states have issued fish advisories warning ducting this analysis slipped substantially, A. Purpose of IPM analysis of mercury control against consumption of fish caught from var- as of earlier this year EPA planned to con- ious water-bodies based in whole or in part options duct the analysis in time for the Working on mercury contamination. EPA has found Conducting an Integrated Planning Model Group meeting on March 4, 2003. When EPA that 8 percent of women of child-bearing age (IPM) analysis of the control options identi- failed to complete the analysis by that date, in the United States—about 5 million fied by the stakeholders is an important step EPA informed the stakeholders that EPA women—have blood mercury levels that in the rulemaking process for the utility would conduct the analysis prior to a sched- would put children born to them at increased MACT rule. IPM is an electric utility plan- uled April 15 meeting of the Working Group. risk of adverse health effects. ning model that EPA uses to estimate air EPA said it would present the results of this B. Clean Air Act requirements emission changes, emission control tech- analysis at that meeting. EPA also stated that at that meeting it would present to the Under section 112 of the Clean Air Act, nology choices, incremental electric power Working Group the changes EPA had made EPA must require sources of hazardous air system costs, changes in fuel use and prices, to the IMP model. pollutants to reduce emissions to the max- and other impacts of various approaches to air pollution control. IPM simulates how the Instead, EPA did not conduct the analysis imum degree achievable through application and cancelled the April 15 meeting. EPA still of control technology. These requirements utility industry would respond to an air pol- has not informed the Working Group of how are commonly referred to as ‘‘maximum lution control requirement by selecting the the agency has responded to the rec- achievable control technology’’ or MACT least-cost compliance options for a set of ommendations for modifications to the IPM standards. For coal-fired power plants, the model plants representing all of the power model that stakeholders made during the most significant hazardous air pollutant is plants in the United States. IPM indicates summer of 2002, or of any other changes that mercury. Pursuant to a court-approved set- where in the country control technology EPA has made to the model. EPA also has tlement agreement, EPA must issue a pro- would be applied, the resulting emissions re- not scheduled another meeting of the Work- posed MACT rule for hazardous air pollut- ductions, the costs of the technology, ing Group. ants from utilities by December 15, 2003. Fur- changes in fuel use, any resulting shifts in generation costs, and other effects. In addition, there does not appear to be thermore, EPA must finalize the rule by De- any internal agency deadline for conducting cember 15, 2004, and utilities must comply The results of an IPM run are then fed into EPA’s air quality models to project what a the IPM analysis of utility MACT options. with the rule by December 15, 2007. Assistant Administrator Holmstead has re- This rule will for the first time require specified emissions control requirement will portedly stated that conducting modeling for controls of mercury emissions from coal- produce in terms of air quality effects and, the CSI is ‘‘higher priority’’ than modeling fired power plants, which are the largest in this case, the quantities and location of for the utility MACT rule. source of anthropogenic mercury emissions mercury deposition. Every major EPA analysis of a rule or leg- EPA’s deviation from its announced plan in the United States and contribute approxi- to conduct this important analysis is sudden mately one-third of annual mercury emis- islation related to the power sector over the past eight years has relied upon IPM anal- and inexplicable. It is simply not credible for sions. EPA to point to resource constraints in this C. Stakeholder process ysis. These include the Ozone Transport As- sessment Group, process, the NO SIP call, instance, as Assistant Administrator Before beginning the rulemaking process, X and most recently CSI. Holmstead is reportedly doing. While agency EPA recognized that promulgating a utility resources are undoubtedly constrained due MACT standard would be a significant and B. Issues regarding IPM model’s simulation of to the Bush administration’s budget cuts, potentially controversial rulemaking that mercury controls EPA is apparently running the IPM model would attract substantial public interest. In The Working Group process has addressed for CSI. There is no reason why further anal- June 2000, EPA committed to solicit and con- the need for technical adjustments to the ysis of CSI should take precedence over the sider the ideas and comments of the groups IPM model. In May 2002, EPA heard rec- utility MACT rule. EPA has been conducting affected by this regulatory process. Subse- ommendations from various members of the analyses of the CSI for over two years, and quently, EPA has engaged in an extensive Working Group regarding adjustments to the the agency has completed dozens of runs process to develop and use input from states, IPM model. In June 2002, EPA issued a memo analyzing variations on CSI options. Yet to tribes, local governments, industry rep- indicating how it planned to address such date, EPA has released no analysis of the resentatives, and environmental representa- recommendations and the timeframe for identified utility MACT regulatory options, tives throughout the development of the such actions. In July 2002, EPA received fur- and it is unclear whether EPA has conducted rule. This process has been carried out under ther feedback from Working Group members any analysis of these options. Moreover, the auspices of the Working Group on the on the proposal for addressing the rec- there is no legal deadline for additional CSI Utility MACT, formed under the Clean Air ommendations. For example, the environ- work, in contrast to the utility MACT rules. Act Advisory Committee Subcommittee for mental representatives made recommenda- Viewed in the larger political context, it Permits/New Source Reviews/Toxics. tions for input assumptions on the effective- appears that the Bush Administration has a

VerDate jul 14 2003 01:46 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00078 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.044 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1309 strong incentive to delay release of informa- 1. Is EPA committed to continuing the process is not complete, nor is the tion on the utility MACT regulatory options. stakeholder process for the utility MACT analysis. Well, as my kids might say, The Administration has been engaged in a rule? If so, when will EPA reconvene the duh, if you waste the year not doing public relations battle to publicize and sup- Working Group and present to the Working port its assertion that the CSI represents an Group a description and explanation of any the analysis, you will not have the environmental improvement over, and not a changes EPA has made to the IPM model? If analysis when it comes time to do the rollback of, the existing Clean Air Act. Most not, why is EPA abandoning this process for rule. of the utility MACT regulatory options iden- maximizing public involvement in this con- Mr. Speaker, I yield to the gentleman tified by the stakeholders would result in a troversial and important rulemaking? from Maryland. greater quantity of emissions reductions and 2. Will EPA model mercury control levels Mr. VAN HOLLEN. Mr. Speaker, the all of them would produce these emissions identified by the environmental and state gentleman is exactly right. I mean, the sooner than CSI would, if it is enacted. Infor- stakeholders (as specifically recommended in way most people go about planning mation on the costs and benefits of most of the Working Group report or as subsequently when they are making major decisions the utility MACT options seems unlikely to updated by the stakeholders)? help the Administration make its case for 3. If EPA commits to complete this mod- is to take a look at the facts and then CSI. eling, by what date will EPA complete it and figure out what the policy is based on CSI is the Administration’s own initiative, present the results to the stakeholders? the facts, not to come down with a po- with no deadline, while the utility MACT 4. Is EPA committed to meeting the court- litically motivated policy and then try rule was required by Congress under existing approved deadline of December 15, 2003, for and make up the facts to fit that pol- law, is already past the statutory deadline, issuing the proposal regardless of the status icy, and this administration has gotten of EPA’s modeling efforts? Please provide and is now required under a court-sponsored in trouble in many ways with respect deadline. There is no legal or policy-related EPA’s current schedule (with dates) for com- justification for deferring the utility MACT pleting: all analyses EPA is planning to con- to that approach. modeling in favor of CSI modeling. To the duct; management decision on regulatory op- You really do not want to make a extent that the modeling delay may be in tions; a staff draft of the proposal; intra- mistake when it comes to something furtherance of the White House’s political agency review of the proposal; and submis- like mercury, because if you make a agenda, the delay is even more troubling. sion to OMB. mistake now, it is something that is D. Effect of continued failure to perform anal- 5. In making the decision to postpone this going to live with us for many, many ysis analysis, did EPA officials consult with Ad- years to come. ministration officials outside of EPA, such At the point, EPA’s continued failure to as officials from the White House (including Let us just take the Chesapeake Bay reconvene the Working Group and to conduct the Council on Environmental Quality and for an example. When it comes to ni- the IPM analysis threatens the timing and the Office of Management and Budget), DOJ, trogen, when you are cleaning up nitro- substance of the utility MACT rule, as well and DOE? If so, which entities were con- gen in the bay, if more nitrogen is as the achievement of significant reductions sulted and what did they recommend? Did of mercury emissions from power plants. going in today, and we take strong ef- EPA officials consult with any of the stake- This analysis is not a legal prerequisite to forts, for example, in the bay water- holders represented on the utility MACT EPA’s identification of the minimum level shed to get rid of that nitrogen, we can Working Group? If so, which entities were at which it may set the MACT standard do it. We have to work hard to do it. consulted and what did they recommend? (known as the ‘‘MACT floor’’) under section We would appreciate receiving a response Mercury, on the other hand, is some- 112 of the Clean Air Act, as the MACT floor to this letter by June 2, 2003, as this is a thing that stays in the ecosystem for a is a technology-based standard. EPA’s fail- time-sensitive and urgent matter. very long time. We cannot get rid of it ure to perform such analysis would in no way Sincerely, overnight. And it stays in the eco- justify delaying issuance of the utility HENRY A. WAXMAN, MACT rule proposal beyond the court-en- system, it gets into organisms, it gets Member, U.S. House of into fish and then, of course, it gets forceable deadline. Nonetheless, if EPA fails Representatives. to complete this analysis soon and falls fur- into the human food chain and gets THOMAS H. ALLEN, ther behind schedule in drafting the pro- Member, U.S. House of into the food we eat, and then eventu- posal, EPA may well try to make the boot- Representatives. ally can get into the brains of devel- strap argument that the analysis is nec- PATRICK J. LEAHY, oping fetuses and of children. essary and therefore the agency needs more Senator, U.S. Senate. This is a very, very serious issue, ob- time for the rulemaking. Moreover, the IPM JANICE D. SCHAKOWSKY, viously; and it is one where we want to analysis will provide critical information, Member, U.S. House of make sure we get the science right, we both for understanding the effects of the op- Representatives. tions recommended by the stakeholders and do our homework before we leap off the for informing Congress regarding the level of Mr. ALLEN. Mr. Speaker, one of the cliff. I appreciate again my colleague, mercury reductions and environmental ef- times that I raised this, the gentleman the gentleman from Maine (Mr. fects that may be achieved under the utility may be interested to know, was at a ALLEN), drawing the attention of this MACT rule. In addition, EPA likely must hearing before the House Sub- body to this issue. Hopefully, we will complete this or comparable analysis to committee on Energy and Air Quality, pull the administration back from the comply with Executive Order 12866 prior to and Jeffrey Holmstead, the Assistant precipice on this and, more important issuance of the proposal. Administrator For Air, came before the Considering practical constraints, it is than saving the administration from a clear that EPA is already in danger of miss- committee. I asked him this question. I bad decision is saving the American ing a court-approved deadline. Working said, have you done the modeling to do people from what could be a very, very backward from the December 15 deadline, the MACT standard? In other words, serious health problem in years to EPA must provide the draft rule to OMB by have you done the scientific and tech- come. the end of August 2003 to allow OMB its man- nical analysis to come up with a mer- Mr. ALLEN. Mr. Speaker, I thank dated 90 days to review the draft prior to cury standard that is based on Max- the gentleman. I see we have been issuance. As you know well, staff drafting imum Achievable Control Technology, joined by my friend and colleague from and management review commonly take not on some idea that is dreamed up by ICHAUD many months, particularly for a technically Maine (Mr. M ). It is good to complex rule such as this one. Assuming a the political people? And here is what have the gentleman here, and I yield to minimum timeframe of several months to he said, and I quote: ‘‘We are doing all him. draft and review the rule internally, it ap- the analysis that we need to do to pro- Mr. MICHAUD. Mr. Speaker, I thank pears that EPA should begin this process im- pose a MACT standard, to do a proposal the gentleman for yielding, and I too mediately, and certainly no later than June. on time by December 15, so we are on want to thank the gentleman from Before the bulk of the drafting begins. EPA track to do everything we need to do, Maine (Mr. ALLEN) for bringing this to management must select the regulatory al- including the evaluation of options, to the attention of Congress. He definitely ternative to propose. To the extent that EPA get the MACT standard out. has been a leader in environmental believes it would be helpful to have informa- tion on technology options, costs, air quality Well, guess what? They did not. They issues and prescription drug issues. I and environmental effects, and other factors, did not have a MACT standard by De- appreciate the gentleman’s leadership. EPA must conduct the analysis now. cember 15; they just had that old Clear Mr. Speaker, today is March 18; and III. QUESTIONS Skies proposal which is, in my opinion, in my district in Maine, people who We would appreciate your response to the illegal under the Clean Air Act. And on enjoy fishing are counting down on the following questions regarding EPA’s planned Tuesday, Mr. Leavitt, the new EPA ad- days until they begin the fishing sea- activities on the utility MACT rule: ministrator, told the L.A. Times the son. Again this year, as in the past,

VerDate jul 14 2003 01:46 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00079 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.047 H18PT1 H1310 CONGRESSIONAL RECORD — HOUSE March 18, 2004 recreational anglers who fish in tics became more important than de- is recognized for 60 minutes as the des- Maine’s lakes will be unable to feed fending our health and our environ- ignee of the majority leader. their catch to their children. ment. Mr. FRANKS of Arizona. Mr. Speak- Mercury has made fish unsafe for When EPA policy is taken word for er, today we would like to address the children and pregnant women. We have word from the industry letters, there is House related to education. I think as known for years that many fish caught a credibility problem there. The result all people have contemplated history in fresh water posed a risk to our of this mismanagement of mercury by and the betterment of human kind, health. Now, just recently, we have the administration is a mercury plan most of the greatest leaders have rec- confirmed that the canned tuna fish that may violate the Clean Air Act and ognized that some of the core hope of that we buy in grocery stores should does little to make real, swift reduc- humanity lies in the education of its not be eaten in large amounts either. tion in mercury released in the envi- children. That is reflected by some of Due to their position downwind of ronment. the words of great leaders of the past. many of the most offensive mercury Because we have not stopped mer- Aristotle said, the longer I study the polluters, the people in Maine by them- cury pollution, the people of Maine art of governing mankind, the more I selves cannot control the amount of continue to see their lakes and rivers realize that the fate of empires depends mercury in their communities. polluted by a poison that cannot be upon the education of youth. Teddy As someone who enjoys fishing, I can controlled. The administration must Roosevelt said, to educate a child not say that the fishing in Maine remains understand that the American people in line with moral capacity is to edu- some of the best in the country, but expect the EPA to introduce a mercury cate a menace to society. Thomas Jef- there was a time when it was not only rule that complies with the Clean Air ferson said, the purpose of education is about recreation; fresh water fishing Act and protects the health of our fam- to create young citizens with knowing also helped feed families. ilies. The administration must work heads and loving hearts. And some- In my district, the Maine Environ- with Congress to create an environ- times, Mr. Speaker, that loving hearts mental Health Unit has a responsi- ment in which people can have good part complicates all of our lives, be- bility to inform the public of this mer- jobs, a clean environment, and a coun- cause it seems today in education we cury problem. For children and preg- try where they can feed the fish that focus strictly on the academics of edu- nant women, they have set a consump- they catch to their children. cation. We forget that the real heart of tion advisory of zero for nearly every Mr. ALLEN. Mr. Speaker, I thank education is indeed the education of species of fresh water fish in Maine. the gentleman for his leadership on the heart. They have also issued the following this particular issue. b 1630 warning to the public: ‘‘It is hard to be- Before we close here, it is worth lieve that a fish that looks, smells, and going back to that study I mentioned And I have to think sometimes, Mr. tastes fine may not be safe to eat, but at the beginning. In February of this Speaker, that as we look across the the truth is that fish in Maine’s lakes, year, just last month, a new study spectrums of society and we recognize ponds, and rivers have mercury in came out which showed that of the 4 that some of the great tragedies in this them. Mercury in the air settles into million babies born in this country world are not so much that our aca- the waters. It then builds up in fish. every year, some 630,000 have been ex- demics are out of kilter, but that some- Small amounts of mercury can harm a posed while they were fetuses to levels times our hearts simply have not been brain starting to form or grow. That is of mercury in their mothers’ body that taught to truly respect and care about why unborn and nursing babies and are considered unsafe. Instead of deal- one another. young children are most at risk. Too ing with that threat, this administra- And I have had the beautiful privi- much mercury can affect behavior and tion has written a proposed rule lim- lege of teaching a group of 1 year olds learning. It may cause numbness in iting mercury written by the industry in Sunday school for the past almost 21 hands and feet or change in vision.’’ lobbyists. years. And I have seen coming genera- Mr. Speaker, these words are not What is happening is, now the EPA is tions rise up around our knees. And as mine. These words are not political. going to go back and say try to do it I look at how they grow up in the dif- These words are statements of sci- over again, try to fix it up, but we do ferent areas they go into in life, it be- entific fact from an agency tasked with not know when they will do it or what comes very obvious to me that in near- protecting our health. Mercury in our they will do. This problem is growing. ly every case if a child is given the environment is dangerous to our It is manageable. proper opportunity, they can grasp a health, and it is particularly dangerous I said earlier that the technology is lot of the academics of this world; but to the health of our children. It is the available today so that we could estab- what they need to understand is that responsibility of EPA and this adminis- lish a rule to phase in mercury pollu- they are indeed a miracle, that they tration to protect the public from mer- tion control equipment; we could have are part of a miracle of life, and that cury pollution. that rule take effect in 2007. The indus- somehow that they were put here on Why does the administration not pro- try would have time to make the this earth for a purpose. And I truly be- pose real mercury regulations? Con- changes. Ninety percent reductions in lieve that that is where the education trary to some claims, it is not because mercury emissions today are feasible, of the heart comes in. of fear of losing jobs. Enforcing the they are possible, they can be done. But unfortunately, oftentimes in the Clean Air Act and limiting mercury The only resistance is coal-fired power public square in our country today, we pollution will not end the business of plants do not want to spend the money. run from the idea that parents or generating power in the Midwest. In So on the one hand, we have the inter- guardians should have any input in the fact, when the administration elimi- est of an industry that have been foundational moral training of their nated air pollution controls in August, major, major contributors to the ma- children. It is left to the schools, and people with high-paying jobs, with jority party here and, on the other the schools make the decision and that good benefits were actually laid off be- hand, the health of our children. It is, is the way it is. cause of pollution control equipment or ought to be, a simple choice. And we Mr. Speaker, I believe that we make that they installed was no longer need- are here tonight to make sure that peo- a great error in doing that. Because if ed. ple understand that choice and encour- a child understands that they are in- The administration cannot outsource age policymakers here to make the deed a miracle, that they are put here this problem. The responsibility to right one. on this earth for a purpose, then some- control mercury pollution is a chal- f how they are part of a significant en- lenge our country must face together. terprise that really begs human de- Recently we have heard reports from PARENTAL CHOICE IN EDUCATION scription. Once they understand that the Environmental Protection Agency The SPEAKER pro tempore (Mr. they have that purpose, then they that in creating its mercury proposal, PORTER). Under the Speaker’s an- begin to grasp the academics. They usual EPA methods were not used. nounced policy of January 7, 2003, the have the motivation to learn science Sound science was not adhered to. Poli- gentleman from Arizona (Mr. FRANKS) and math and history. They have the

VerDate jul 14 2003 01:46 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00080 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.111 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1311 convictions to go out and face the chal- And I am reminded that the Ark was the money to put all the children that lenges of life without faltering when built by amateurs and the Titanic was we would like to scholarship. But there every wind of something that would built by experts. It seems that parents, are a lot of ancillary effects of this pro- distract them in life comes along. even many times without teaching de- gram, Mr. Speaker, one of which is Mr. Speaker, I believe that we really, grees, are turning out the smartest that we have seen a definitive response truly need to begin to consider this en- children that we could imagine. And we by the government schools, by the pub- tire dynamic in our educational sys- as a society and as a Nation and as pol- lic schools, to parental choice. We have tem. As it happens, we have decried so- icymakers need to understand why seen that all of a sudden the schools cialism across the world. In fact, we that is true. And I, again, believe with there begin to have a much greater in- have pointed out to almost everyone all in my heart that it goes to the mo- terest in what mom and dad have to that the highway of history is littered tivation of the child many times. It say about education. Because they with the wreckages of Socialist govern- goes to the causing that critical curi- know now that mom and dad if they ments, of governments that somehow osity that comes into the life of every need to, if they choose, that they can thought that collectivism and social- child if given that opportunity. move in a different direction, they can ism transcended that of liberty and the I believe parents are in a better posi- take their child to a different school. worth of the individual and that of a tion to know what is best for their When you empower parents like that, rule of law and of a republic. children. And that is why one of the you create a dynamic between public And if anything has demonstrated things that I advocated in this body for schools and parents that is vitally im- that over the last 10 to 20 years, it is the time that I have been here has been portant to the success of both. the fall of the Soviet Union. It seems to empower parents in education. I be- As it happens, Mr. Chairman, about that socialism has been discredited lieve that there is probably no greater 90 percent of the parents in Arizona across the planet in nearly every way, thing that we could do for our children choose a faith-based school for their unfortunately except in our own school in terms of the philosophical children, again being entirely up to systems in America. And we have em- underpinnings of the Nation and of them; but as many people would be de- braced the notion that government their ability to face the future with a tractors of such a choice, the reality should be the one to make all of those sense of hope. goes back to the heart issues that we decisions, that government should be The reality is that everywhere we spoke of earlier. the ones to decide the academics, that have tried to empower parents, we have And, Mr. Speaker, we talk about the government policy should be the ones seen good results. We have seen it in problems with integration in our to allow the educational requirements places where there are vouchers pro- schools. And if one looks at some of the of children and to dictate what those grams. We have seen it in places where private faith-based schools, they are are. And in so doing we leave out the there are scholarship tax credit pro- the most integrated schools in the en- most important single factors in a grams. We have seen it in places where tire Nation. And I have to say to my child’s life, and that is simply those there are school choice between the colleagues that when you give parents people who love them more than any- public school systems, where a child’s one else can possibly understand, and the ability to place their children in parents can choose to put their child in schools of their choosing, there are that is their parents. this public school or the public school And I know that there is going to be such a host of wonderful things that down the street. We have seen it any- begin to occur. First of all, competi- an ongoing debate in this Chamber for time we empower parents to make tion happens for the child. All of a sud- many, many years related to parental choices, something good happens. We den the child that might have been just empowerment in education. But Mr. have seen it, as I said, in the home a little bottom in the chair for the sys- Speaker, unless we as a people under- schools. stand that children are not wards of When we empower parents, we do tem becomes royalty to everyone in state, that they are the gifts of God to good things for children. It is that the system. All of a sudden we begin to focus on their parents and to the world, unless beautifully simple. we understand that parents have more Mr. Speaker, as it happens among the child rather than the system itself. concern and more understanding about those groups, among those approaches All of a sudden parents matter, their their particular children than anyone to educational choice, among those ap- opinions matter. Because if the schools else in the world, then we will fail the proaches to parental empowerment, could not respond effectively to the coming generations. the one that I believe has the very parents, then the parents simply have Mr. Speaker, I am reminded of a cir- most hope in terms of a public policy another option. All of a sudden the cumstance recently in Arizona, where I outside the area of home schooling is schools begin to say, all right, what are come from, where there was testimony this thing called scholarship tax cred- the dangers on this campus for chil- on this very issue before the State leg- its. dren? What are the situations as far as islature. And some of the parents I was privileged to write Arizona’s bullying in our schools? All the things groups were there, advocating that scholarship tax credit many years ago. that we talk about in terms of public they should have a greater role in their And now today we scholarship 21,000 policy problems in the schools begin to children’s education. And as it hap- children in Arizona. And the schools be affected almost automatically. pened, the debate continued in a more they go to are entirely left up to the All of a sudden those questions begin heated manner. One of the bureau- parents. The mechanism is very simple. to be taken up seriously by the admin- cratic members of government got up The mechanism is such that if an indi- istrators because they recognize that and said, ‘‘Well, we love your children vidual on a voluntary basis chooses to they are competing for the child in a just as much as you do.’’ He said that contribute to a scholarship fund for sense. to one of the parents. And one of the children to go to a school of their par- Mr. Speaker, there are so many other parents very succinctly said to the bu- ents’ choice, then the contributor gets things I would like to add, but I see reaucrat, he says, ‘‘All right. Tell me a dollar-for-dollar reduction in their that a good friend of mine, the gen- what are their names.’’ And, of course, income taxes. tleman from Michigan (Mr. HOEKSTRA) the bureaucrat was without an answer And essentially what that does, Mr. has come into the room. I would like to of any kind. Speaker, is it calls upon the individual yield to Mr. Congressman HOEKSTRA And I think that that really illus- taxpayer to make a simple choice. for a moment and perhaps we can come trates what the bottom line here is, Would I rather my money go to the bu- back and discuss the issues a little bit and that is that no public or private reaucrats or would I rather it go to more. group can really ever understand a children? And I have to say that is not Mr. HOEKSTRA. Mr. Speaker, I child’s most important needs like mom a complicated task for many parents or thank my colleague for yielding. and dad do. I suppose that is reflected many scholarship donors. They have a To have the opportunity to have this to a large degree by the magnificent pretty clear perspective of which way dialogue about empowering parents, success of home schooling in America. that should happen. empowering parents to give them a big- These are some of the smartest kids in One of the challenges, of course, in ger role in the education of their chil- the entire Nation. Arizona is that we really do not have dren, there are a number of methods

VerDate jul 14 2003 01:46 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00081 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.112 H18PT1 H1312 CONGRESSIONAL RECORD — HOUSE March 18, 2004 now that States are employing to cre- b 1645 there; and as you said in your remarks ate a dramatic impact in improving My hometown public schools have a earlier, one of the prime indicators of their children’s education. declining enrollment. They cannot successful education is an involved I think my colleague and I agree that take costs down quick enough to re- adult, in other words, the parental in- the most important thing in a child’s flect a declining enrollment, and so volvement in the education. education is having a caring and in- even though our public school system In fact, if there was any single great- volved adult in their life. And whether in Holland has always been a competi- est factor in a successful child’s edu- it is a parent, whether it is a guardian, tive advantage for the community, cation, and we talk about all the sys- whether it is a mentor, whatever, but if where companies would locate in Hol- temic approaches, but the greatest sin- a child has a caring adult in their life, land because they saw that we had a gle involvement is parental involve- who takes an interest in their edu- quality school system, it helped to at- ment, and I think that is recognized in cation, that is a powerful motivator to tract, that school district can no the home schools and private schools ensure that that child has the ability longer go to the community and say if and public schools. It really oftentimes to learn and has the ability to move you want us to be a differentiater, that does not matter so much which one of forward. when a company is located saying are those systems the child goes to as And States are doing a tremendous we going to locate in West Michigan, much as is the parent fully engaged amount of innovation and experi- are we going to locate in Kentucky or and involved, and that is why I believe menting with how they provide parents somewhere else, one of the reasons that things like the tax credit for the public with this option of selecting where company is going to locate in west school and the tax credit for the pri- their children go to school. Fifteen Michigan is they are saying they have vate school option are so good because States today have various proposals for got a great school district; they have they, as a matter of course, as part of public school choice, inner- and intra- put additional resources into that the logistics, they involve parents; and district choice programs, allowing stu- school, and I know that if I come to parents, when they are involved and dents to transfer between public this community I will be able to at- have to make a choice, then not only schools. tract the employees that I need be- are they more aware of the situation And then there are other States that cause my employees are going to want but they have an investment of their provide slightly different versions of to have a good school district for their time and emotions, and they made a public school choice. One of the things, kids. choice and now they have to make it again, another version of public school Maybe you would want to share a lit- work. choice, is charter schools. Today over tle bit about what the impact of tax Mr. HOEKSTRA. Mr. Speaker, if the 40 States and the District of Columbia credits have been in Arizona, not only gentleman would yield, maybe you can have charter school laws. Again, giving in improving public schools but en- relate a little bit about the experience parents the initiative of saying this is hancing choice for all of the kids in Ar- in Arizona. You talked a little bit the school that best fits my child’s izona. about that there have been, what, needs. And it does not necessarily Mr. FRANKS of Arizona. Mr. Speak- 21,000 students in the State of Arizona mean that the other schools are not er, I will have to say that my first re- who have been able to take advantage good schools, but recognizing that cer- sponse would be that among those of a scholarship to attend a school of tain schools will have certain 21,000 children who have received schol- their choice; but there have also been strengths, not every school is exactly arships, it is almost impossible to re- significant amounts of money that the same, and provides a better oppor- late the wonderful anecdotal stories have flowed back into the public tunity to tailor the match for the child that you get. Parents come to me and schools where parents who are very to the school that they attend. say, my child was failing in the public satisfied with what is going on in their Six States have enacted voucher situation. They just were not doing public school, the public school has laws. My colleague has been very in- well. It was not that the schools were identified a specific need. strumental in another form, a modified not a good school. It just was not the We did a hearing on this I think 4 or form of school choice that opens up en- right fit for them. Sometimes we over- 5 years ago as this concept was start- hancing education for all of our kids, look that. Oftentimes there is this no- ing to come out. I think that is what not only for those that might go to a tion that if you are for parental em- really intrigued me is it did not pit one private or parochial school, but also a powerment that somehow you are con- sector of our education system against public school, by putting more money demning all public schools, and that is another, the privates against the into our school systems, public schools, not the case at all. parochials. This actually ended up and the private and parochial school Mr. HOEKSTRA. If the gentleman being a win-win situation for education systems with a tax credit program that would yield, I think that is critical be- in general because it became a new way my colleague not only introduced in cause I think this is what I really want to voluntarily fund the public and pri- the State of Arizona, but my colleague to reinforce because I think it is also a vate and parochial system, a voluntary was the key move in, I think, a trend model that I would hope that we would way to move more money into edu- that is gaining a lot of interest. Be- consider here in Washington; and more cating our kids. cause what it does is it not only em- importantly, I am hoping that it is a I will yield back to have you explain powers parents to select schools, but it model that we will consider in the some of the results that you have seen also empowers parents to reward the State of Michigan for putting more in Arizona. schools or the community groups that money into our public schools. Mr. FRANKS of Arizona. Well, the they believe are doing a good job. The tax credit that you designed in gentleman is exactly correct. As it In the State of Michigan we passed a Arizona not only empowers scholarship happens, somewhere around $100 mil- new education financing system that I organizations to give scholarships to lion has been raised for children to go think in many ways was positive. But low-income students to go to private to the private school of their parents’ after 10 years we have learned that and parochial schools, but it also pro- choice. there have been some unintended con- vides a mechanism of funneling more Mr. HOEKSTRA. This is $100 million sequences. Our school administrators money into our local public schools in voluntarily, correct? This is not $100 in some respects are now more beggars Arizona. Is that correct? million where the legislature in Ari- to the State Capitol than being focused Mr. FRANKS of Arizona. That is cor- zona passed a new tax and said we are where they should be, which is on the rect, and it has the ancillary effect of upping our sales tax by half a percent parents and the kids in their commu- causing parents to be more involved or changing the income tax? This is nity. And there is really no way for a with that local public school. All of the $100 million that people voluntarily in school district that is doing a phe- sudden they have a stake in it person- Arizona said we are going to pump this nomenal job to go back to the people of ally. They have made a tax credit con- money back into our education system that community and say we want to do tribution to the school, and the schools to help educate our kids and provide a some special things for our kids and to then, of course, there is a dynamic. higher level and a higher quality of get that money. There is a communication that occurs education?

VerDate jul 14 2003 01:46 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00082 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.113 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1313 Mr. FRANKS of Arizona. The gen- classroom because we did a survey of Federal Government perspective that tleman is exactly correct. Approxi- the Education Department. We found we supply about 7 percent of the fund- mately $100 million has gone to the pri- that the Education Department and ing for education that goes to the vate scholarship groups and approxi- the other Federal agencies had over 760 States. In other words, the total fund- mately 120 million additional dollars different specific education programs, ing that it takes to educate a child in have gone into the public school set- not all of them obviously in the De- the public school system, about 7 per- ting. partment of Education, not all of them cent of that money comes from the Mr. HOEKSTRA. So over $220 mil- obviously targeted to K through 12 edu- Federal Government; but when you lion, voluntarily going into education? cation; but we do not have that many consider that over 55 percent of the pa- Mr. FRANKS of Arizona. That is cor- different kinds of education systems perwork that the school has to do is rect, and of course, that is the vol- that you said, well, it makes sense to mandated by the Federal Government untary aspect of it, which, as you men- have 760 different education programs. and there is something horribly wrong tioned, is vitally important; but it also Then what we started doing is we about all that, because it just under- has engaged the parents. One of the started taking a look at how those dol- scores everything that you said, and if things that we are seeing is a decided lars flow. We appropriate money into you consider across the country, on the increase in Arizona among those par- one of these programs, so we send it to average, private schools cost approxi- ents who are highly satisfied with their a K through 12 school with a list of mately half, if you just measure them public school experience, and we are rules and regulations, or we send it to all out and average them all out, about convinced that there is a clear connec- the State. The State then has to ad- half what the public school systems tion between the two because anytime minister it and send it down to a local cost, and yet on the average they will that there is a motivation and incen- school district, and again, it gets to a educate a child academically about one tive for parents and schools to talk, it local classroom, perhaps with some to two grade levels higher in the same usually creates a better environment rules and restrictions on it. They then respective area. altogether. have to report back to the State, and There is something to be learned Mr. HOEKSTRA. Mr. Speaker, the the State has to report back to Wash- there. Oftentimes people say that is be- gentleman may want to just explain ington and say we spent the money ex- cause the private schools skim. Now, I for folks exactly how the tax credits actly the way that you told us to and think there are some other differences. work. How is this tax credit different within the restrictions of the program. First of all, classroom size; second of perhaps than a voucher system that is Of course, we know that the folks at all, certainly in Arizona, for every two maybe being used in some other the local level cheat, so we then send teachers, we have more than one ad- States? Then we can talk a little bit in our auditors. We send in our auditor ministrator, but when you look at the about the advantages of the tax credits from Department of Ed down to the private settings, you have about one versus vouchers and that kind of thing. State, down to the local school district administrator for every 19 teachers. So Mr. FRANKS of Arizona. I will be to audit, and the school district has to there is an entirely different overhead happy to do that. I thank the gen- justify and keep the records that they dynamic, and I just think sometimes tleman. spent the money exactly the way that we need to look at just some of the fi- The single most important difference they did. Then we end up with the nancial dynamics there. between vouchers and tax credits is the scary numbers that you said, some- Mr. HOEKSTRA. Mr. Speaker, if the fact that with the tax credit, all of the where between 50 and 60 percent of gentleman would yield, we did a pro- contributions that go into the system every dollar actually going into edu- gram called Education at a Crossroads, are entirely voluntary and they never cating a child. Somewhere between 30, where we went around to schools; and I go through government coffers. Now, 35, 40 percent of every education dollar do not know, 13, 14 different States, you say, well, that is a simple dif- we spend in Washington goes into bu- and we asked those kinds of questions, ference; but it creates all kinds of rip- reaucracy by deciding where the money what kind of paper do you have at the ple effects, all kinds of ancillary dif- is actually going to go. Somebody’s got administration level, and all those ferences. to divide it up at the Federal level and kinds of things. The local administra- For instance, those people who are the State level, and we have got to tors would be the first ones to say we concerned that if they send their child track and monitor and audit. to, say, a faith-based school down the What we tried to do a couple of years share the same vision that you have. block and that if they send them with ago was kind of like what happens with We want parental empowerment; we a voucher that somehow the scary, in- the tax credit program. As we were want the parents to want to send their sidious hand of government will come saying, 90 cents gets into a classroom. kids to our schools; we want to get the in and tell them to take down their What we tried to say here in Wash- dollars into the classroom; we want cross or Star of David or whatever the ington, would it not be great if every that to be the focus. case might be. Under the scholarship education dollar we spend at a K I still remember a press conference tax credit approach they would have through 12 level, if we could get 95 we did where we brought out the reams very little to worry about because cents of every dollar into the class- and reams and reams of paperwork there is simply no connection to gov- room educating a child and get rid of that these school districts are required ernment in that regard. The moneys go the rules and regulations, get rid of the to send to Washington, and obviously if into a private charity, which 90 percent bureaucracy. they have got to send all this stuff to of those moneys then go to the scholar- It is exactly one of the points that Washington there has got to be some- ship for the child. the President had in his No Child Left body that fills it all out. The thing When you consider the expenditures Behind bill of giving States and local that we never did find was when you there, there is a significant difference. school districts more flexibility, but send all of that paperwork into Wash- I mean, about 56, 55 percent of our dol- that part of the bill was left on the cut- ington and we would have a huge stack lars that come appropriated from this ting room floor. It got cut out of the from just a local school district, who in body go into the classroom; but over- bill, but I could not help but think of Washington is the person that reads all whelmingly, when people contribute on that when you were talking about the of that stuff? I think that we never the private scholarship tax credit, effective nature of voluntary tax dol- found that person or that Department, about 90 percent of those go directly lars going into a scholarship fund, and and that is why the flexibility is so im- for tuition of the child. then that scholarship offering it to a portant. Mr. HOEKSTRA. Mr. Speaker, if the student and 90 cents of every dollar So even though in some of our gentleman would yield. I mean, that is gets to that local school versus what schools the ratio of teacher to adminis- one of the frustrating things that we we do here in Washington. It is a very trator is very different than what you have here, and I think that is an im- efficient way of getting money into a may find in another setting, if it is a portant statistics. school. private or parochial setting, that is not We passed a bill here a couple of Mr. FRANKS of Arizona. Absolutely. necessarily where the administrators years ago that entitled dollars to the I find it fairly telling that from the want to be. They would prefer to put as

VerDate jul 14 2003 01:46 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00083 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.114 H18PT1 H1314 CONGRESSIONAL RECORD — HOUSE March 18, 2004 much money into the classroom be- volved from the Federal level, the more I know that for most of the school cause they have got the same focus we have a tendency to mess things up. districts in west Michigan, the area that we have. Mr. HOEKSTRA. The gentleman used that I represent, the number that they Mr. FRANKS of Arizona. Mr. Speak- the word that we talk about quite get per child is somewhere in the er, that is pointed out very clearly in often. School districts and principals neighborhood of $6,700 to maybe some- the year 2000 where only 52 percent of and teachers at the local level are where around $8,000, maybe a little staff employees in public schools were forced to comply. Compliance means over $8,000, but in that range, and they teachers, about half; and many of them you adhere to the rules, but it also would be saying, wow, if I got $12,000, I am convinced that were not teachers means your focus has changed from and even for the most or the best fund- would certainly have wanted the where it needs to be, which is edu- ed school district in west Michigan money to go towards instruction. If cating the child to complying with the that is another $4,000 per student, that you look at the same year, only 52.4 rules. And the teachers and principals would be a 50 percent increase, what percent of the nearly $382 billion spent at the local levels want to focus on our would I do with all that money? And nationwide on education, only about kids. then, of course, they look at the re- half was spent on instruction. All these programs and all these sults here, and those are not very good Mr. HOEKSTRA. What is the num- rules and regulations move us away results. ber? from where the gentleman and I start- I remember when we did the ‘‘Edu- Mr. FRANKS of Arizona. 382 billion ed today when we started talking cation at the Crossroads’’ hearings, we in the year 1999 through 2000 school about parental choice. We talked about did a district in Alabama, and it was year. Only 52 percent was spent on in- parental empowerment and recognizing very interesting. They had one of the struction. that the tie between the parent and the lowest per-student funding ratios in child and the local school district is ab- the State and they had the highest test b 1700 solutely critical, and that when we put scores. So we asked them what they at- Mr. HOEKSTRA. Mr. Speaker, if the in funding schemes like we have in tributed this kind of performance to, gentleman will continue to yield, what Michigan that say the money is no because they did not get a lot of this tells us is a very important thing. longer going to come from the local money, yet their scores were phenome- This is not an issue of money. We are level and the people in the community, nally well. The answer was, well, we spending a tremendous amount on edu- but it is going to come from these folks only get enough money to focus on the cation, but we are spending a tremen- over here in Lansing, we weaken that. basics. We do not do a lot of the periph- dous amount of it in the wrong place, When we send in a bunch of programs eral stuff. We cannot do it. We cannot and it is partly because parts of the No and a bunch of mandates from Wash- afford it. So all we do is, day in and Child Left Behind, that never made it ington, it weakens the ability of the day out, we focus on the basics. into law, was to give local school dis- folks at the local level to take a look That is not saying these other things tricts and States relief from the paper- at the needs of Johnny and say, What are not worthwhile, but it means that work burden that sucks up valuable do I need to do for Johnny? They have they have to get the foundation and education dollars away from the kids to say, Wait a minute, I have this form the basics done first. And I do not want and puts it into a bureaucracy either 1081 with this program and I have to to put a number out there, but if you gave that school district $12,000 per at the State capital or here in Wash- fill this out, and that means I have to student, they would not know what to ington. do this. I have to fill this report out do with the money because they are Like I said, and I think the gen- after class today, or I have to fill it out doing it with a whole lot less and get- tleman agrees with me, the teachers, at the end of the semester. Again, it weakens that link between the parent, ting outstanding results. the principals, the administrators at Mr. FRANKS of Arizona. Mr. Speak- the local level want to do what we are the teacher, and the child and that local community and it forces these er, I think that perhaps one of the saying; they want to focus those dol- greatest dynamics of this debate is the lars in the classroom. But they recog- people to look to Washington, which is the last place they should be looking to whole cost structure. On the average, nize that when they get as many man- as to who needs to be educated in their and I will speak for Arizona because dates as they get from Washington, community. that is the State I am from, about D.C., they have to have the piece of Mr. FRANKS of Arizona. Mr. Speak- $6,800 per student when we educate that paper and the forms filled out; they er, I find it ironic that this body is es- child in a public school, whether it is have to dot the I’s and cross the T’s or sentially the school district for the an inner city school or rural school. If they get in trouble. Washington, D.C. schools. Perhaps the you average it all together, it is about Mr. FRANKS of Arizona. Mr. Speak- nomenclature is a little different, but $6,800. In Arizona, the average private er, the gentleman is exactly right. We the reality is we are in charge of trying school is approximately half of that, have an estimated number of Federal to make sure that the Washington and yet, again, they outperform the programs, so when we talk about how school districts here in the District of public schools on the average. In Ari- we create these programs for the Columbia operate effectively. Now, in zona, the average home schooler is ap- States, there are over 700 of them. And Arizona, just to give a comparative, proximately half of that, and yet they I would suggest to my colleagues that about $6,800 per year in the public are the most outstanding academic these mandates and regulations and in- school system is what it takes us to children. They perform academically effective programs make it very dif- educate a child, when you add mainte- better than just about any other chil- ficult for the local schools at the State nance and operations along with the dren in the State. level to comply with this. cost of facilities. But here in Wash- Consequently, I think that the obvi- What they do in the meantime, and ington, D.C. it is over $12,000. It is the ous inference there is it is not just the this is shocking, but $84 million in highest in the Nation. money. In fact, it seems like we have State education funds were recently re- If we know what we are doing here in to pay more for worse results on a reg- turned to the U.S. Treasury because terms of educational policy, why is the ular basis. I am just convinced that States had not used it for more than 3 one school area that we are most in rather than trying to argue about years. I am convinced they are just charge of costing the most and have which system is better, we need to ready to pull their hair out because some of the poorest schools in the Na- start looking at home schooling and they could not deal with these complex tion? the private schools and see what are mandates we put on them from the Mr. HOEKSTRA. Mr. Speaker, if the they doing that the public schools are Federal Government. gentleman will once again yield, that not doing. What are they doing that I think there is a bigger issue here, is one of the ironies here. The gen- government can learn from, rather and that is sometimes the Federal Gov- tleman is right. Many in Washington than to compete so much all of the ernment just needs to get out of the would say that the Congress functions time? Let us find out what they are way and let the States and parents as their school board, and yet we do doing that is making things work for make the decisions on education. Be- spend somewhere upwards of $12,000 per children. I am convinced that that cause it seems like the more we get in- student in the city of Washington, D.C. would have a big impact here.

VerDate jul 14 2003 01:46 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00084 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.116 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1315 Mr. HOEKSTRA. Well, I have spent a We had an inner-city school that a it and turned that back into the hands lot of time trying to find a common lot of people in the community wanted of consumers. When we let people make ground between the various forms of to keep open, but there was nothing their choices about what was best for education in Michigan, whether it is that our superintendent could do to go them, we revolutionized communica- home school, private schools, a charter to the community and say, this is not tions. All of a sudden people had cell school, or a public school, recognizing the most efficient way to run our phones everywhere. It has become the that each one of these plays a vital role school system by keeping this school bane of our society, I think, to see and in our total education system; and, open, but I really think it is important hear cell phones ringing everywhere, also, very frankly, recognizing that to the sense of community and the city but people can send pictures using when you are in the State of Michigan of Holland that we leave that school their cell phones, they can call Aus- and you are talking about education open. He could not go to the commu- tralia for 10 cents a minute, they can reform, you are going to have to design nity and say, if you agree with me, look up their Web site on their cell it as a win-win that says there is some- great, then give me the money to do it. phone, and almost everyone has one thing in here that is going to enhance They never had the opportunity to say these days. And it is because we knew the ability of public schools to com- there is something more important if we could deregulate those things, pete, to educate our children, as well as here than just the bottom line on dol- that an engine of innovation would enhance the educational opportunities lars and cents. occur. There is a sense of community for for private and parochial schools. b 1715 One system is not inherently better that part of our town and the belief Mr. Speaker, it astonishes me in this than the other and one system should that using what somebody might de- country that we have had the insight not be inherently favored over the scribe as being an inefficient way of to increase the efficiency of the mail other. Again, this is why I am very educating our kids by having that com- and the telephony of this country, and much intrigued by the concept that the munity school right there, that local yet we do not afford our children the gentleman has successfully promoted, neighborhood school right there, even same opportunity to have competitive which is a tax credit, which is a win- if it is a little bit more inefficient, be- excellence in education. win for all of those. I do not think, as cause it gets a better result. We have to focus and give our people Mr. HOEKSTRA. Mr. Speaker, I be- it is written, Arizona allows or pro- at the local level and the parents and lieve the gentleman is absolutely right. vides a benefit for home schoolers, does administrators at the local level the I do not believe we have even begun to it? tap the full potential to reform K–12 Mr. FRANKS of Arizona. It does not, opportunity to design a system that works, not necessarily the one that is education with the technology that is unless the home school would have the most efficient. Because it does not out there today. How can we really rev- some type of satellite classroom set- do us any good if it is the most effi- olutionize K–12 education? Rather than ting, and I would hope and look for the cient, but we do not get the kind of re- accepting the status quo, what can we day that it would. Because, again, sults that we want. do? We have some tremendous needs. there is no one that has a higher opin- Mr. FRANKS of Arizona. Mr. Speak- We have a much more diverse society ion and a greater respect for the home er, I think that if we look at the Amer- than what we had before, so we need to schoolers of this country than I do. ican economy, how it differs from, let assimilate children. We need to get They simply have done such a magnifi- us say Socialist countries in the world, them to learn English. I sit on the Per- cent job that all of us could learn and we see that we have placed nearly manent Select Committee on Intel- greatly from them. I hope we do. all of the direction of this economy, ligence. The other thing we need to Interesting to the gentleman’s point, this monstrous productive American have happen, as we have more kids who one of the great educational philan- economy, in the hands of the con- need to learn English, we have a tre- thropists in this country, John Walton, sumer, in the hands of the everyday mendous need for children here to recently said in a roundtable that, ‘‘In purchaser. Now, the reality is that learn another language because we are any system, if you want to increase the there are always groups that join to- in a global marketplace. How do we ex- attention a group receives, you must gether and have economies of scale and plore what they are doing in Europe increase their power. The best way to magnify their purchasing power. But where many kids speak two, three, four empower school children and parents is the reality is we have understood in different languages? That is not done to let them direct the money.’’ this country that free enterprise and here. Mr. HOEKSTRA. That is exactly the giving this over to private individuals I think there is a tremendous oppor- point. What happens when we pass leg- has been a magnificent engine of pro- tunity to investigate different means islation out of Washington that em- ductivity in this country. of learning. I think one of the ways powers Washington, that gives them Across the world I have seen that we that will happen is by allowing edu- more authority, it means that people are the most productive economy in cational opportunities and choices to at the local level have to spend more the history of humanity, and it is not flourish and then empowering parents time focusing on Washington bureau- because we are so much smarter than so they can align their child with the crats. In Michigan, when we moved the anybody else. It is simply because we school that they best believe fits their funding from the local level to Lan- have a better system. I would suggest child’s needs. sing, it meant that the local adminis- that sometimes those that would deni- Mr. FRANKS of Arizona. I cannot trators now would have to spend more grate trying to pull free enterprise and agree more. Several things occur when time focused on Lansing rather than parental empowerment and choice into we empower parents as essentially the the interest in their community. education forget the lessons of history. customers of education. We say edu- That does not mean that what we There were times when someone cation should not be a customer-driven have done in Michigan is bad, but it is came along and said about Federal Ex- thing. I suppose we can say that about a recognition that that should be press, when it came along, that it anything; but one thing is sure, when counterbalanced. Because where do we would destroy the post office. Well, not we do have a market-driven situation, want the power and the influence for only did it not destroy the post office, we get better quality, greater innova- our local schools? Do we want it in bu- it actually made them far more effi- tion, and a drastic reduction in costs. reaucrats in Washington, in Lansing, cient. We send a letter across the coun- I am convinced that those same or do we want it in my hometown of try now in 2 days rather than 5 or 6. We things would happen for the edu- Holland, with parents? Do I want it have some of the more efficient efforts cational system in this country if we around a kitchen table or around a in the postal system than we have ever injected parental empowerment and PTA table? had. The postal system, many times, competitive excellence into the sys- I want it in my local school districts, gives money back to the Treasury now, tem. because in some cases now in my local instead of us having to appropriate bil- But a fourth thing occurs, which is community, the parents kind of walk lions of dollars more. when we empower parents to choose away and say, Pete, what can we do? The same thing happened with the their children’s education, those par- We cannot raise the money. telephone system when we deregulated ents with a philosophy of one kind are

VerDate jul 14 2003 01:46 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00085 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.118 H18PT1 H1316 CONGRESSIONAL RECORD — HOUSE March 18, 2004 able to direct their children in that di- are making it so difficult for our local look at, and there is a lot of criticism rection. Those with a philosophy of a public schools that have been so suc- that Washington no longer cares about different kind can do something else. I cessful, but we are creating all sorts of education, and they measure our con- am afraid if we do not start looking barriers. cern for education in funding, but the into some of these hard issues, deeper We are creating judicial rulings from reality is our funding for education in issues in our educational system, we California and other places that break Washington has gone up precipitously, may grow a generation with great aca- that bond. We are moving funding and in my judgment that is in the demic skills, but very little concern for away from the local level. We are mov- wrong direction. their fellow human beings. ing rules and regulations in from Wash- Mr. HOEKSTRA. The funding from It is especially difficult when some, ington that tell them how to do their Washington may not necessarily be all forgive me, some intellectual pigmy business, and all of that gets in be- that bad if there was balance. But what masquerading as a Federal judge says tween a local school, a parent and their we have done is we have funded bu- that children in the public school sys- child. That is a huge problem. reaucracy, bureaucracy which has writ- tem cannot say the words ‘‘under God’’ We ought to talk about what you are ten more rules and more regulations in the Pledge of Allegiance. That es- planning on doing here in Washington. for local school districts. We have sentially vitiates much of the effi- We have talked about all of the money talked about the impact that has had. ciency of the system entirely. I am spent here in Washington on K–12 edu- It is smothering our local public concerned if we do not begin to realize cation, all of the money for the rapid schools with overhead and administra- it is not just academics, that aca- acceleration on Federal spending on K– tive costs and taking dollars out of the demics are important, but it is not just 12 education, and it is all going classroom. A tax credit would begin to academics, that we are going to see a through programs and mandates. When bring a little bit of balance that says new generation that does not know you start a new program, you send it to rather than putting more money into who Abraham Lincoln is, that does not a school. That program comes with empowering bureaucrats, we are going who George Washington is and what strings attached. to put some money into empowering they stood for and the things that But the gentleman has another view, parents and rebridging that gap be- made this country the greatest Nation a version of a tax credit bill that he tween parents and local schools and in the history of the world. would like to see enacted here in Wash- their children. That is why I am so deeply com- ington that would, rather than empow- That is the important thing, to give mitted to seeing that education is ering bureaucrats, would empower par- at least some of this money the oppor- given a greater sense of parental em- ents. So it says Washington is going to tunity to be driven by the parents in powerment and competitive excellence. become more balanced, we are going to their local community, rather than by It will be the salvation of the public fund money directly for programs that a bureaucrat here in Washington. school systems, and in my judgment it we think are of high priority, but at Mr. FRANKS of Arizona. There are will be to the betterment of the coming the same time we are going to do some- two ways the Federal Government can generations. thing to strengthen that bond between return money to the States. They can Mr. HOEKSTRA. Mr. Speaker, it is a parent and the educational system in appropriate money with all of these bu- kind of interesting, the gentleman their community by going to the same reaucratic mandates; or they can sim- brings up the judicial pronouncements, win-win proposal as they have in Ari- ply say to the States, here is an idea, if and they have been going on since the zona, which was tax credits. you do it yourself, you will have to early 1960s with school prayer, and Mr. FRANKS of Arizona. We have in- send less money to the Federal Govern- there has been a very serious unin- troduced the Children’s Hope Act, and ment in the first place. That is what tended consequence. I was at a school the gentleman is a cosponsor. All of us the Children’s Hope Act is predicated in Michigan for a graduation. I looked are very appreciative of that. The Chil- upon. It creates an incentive for States at the program. It said opening prayer. dren’s Hope Act is essentially a bill in to take care of their own efforts by em- I kind of looked at the superintendent Congress designed to create an incen- powering parents and sending less and nudged him and said, You cannot tive for other States to create their money to the Federal Government. do that. He kind of looked at me and own scholarship tax credit such as the I am convinced that this solves a lot laughed and said, We can here. Then I ones in Arizona, Florida and Pennsyl- of the problems across the board. looked over at the diploma table and vania. The idea, of course, is to em- Mr. Speaker, I am convinced we can there were a stack of books over there. power the States, the local govern- accomplish so much if the Children’s I said, What book are you handing out? ments, and the parents exactly in the Hope Act is passed. It puts the scholar- He said, Well, we are handing out the opposite order: the parents, the local ship tax credit on the radar of the Bible to all of our graduates. I had a governments, then the States, and then States in general. It looks at what is smile on my face and said, You cannot lastly have the Federal involvement. happening in Arizona, Pennsylvania, do that here. And he kind of laughed Instead of trying to create a mono- and Florida. If we can empower parents and said, We do. lithic program here that we control, and create a new movement toward What some of the court pronounce- and as has been demonstrated, we do competitive education, towards com- ments have done, they have broken the not control things very well from this petition, towards competitive excel- bond between the school and the com- body, if we can empower the parents in lence in education, I think we can do munity because public schools rep- the greatest way possible, we can do more for this coming generation than resented local community values, not the States the greatest favor possible anything else. to an extreme; but when you get a pro- in my judgment. The Children’s Hope And I would suggest to the gen- nouncement from some judge in Cali- Act will create a Federal tax credit. It tleman from Michigan (Mr. HOEKSTRA) fornia about what some school in Ari- would simply allow people to pay less that the implications are pretty sig- zona or some rural school in Michigan Federal income taxes if they contrib- nificant. Abraham Lincoln said the or Illinois or Indiana can do, and that uted to educational efforts in their own philosophy of today’s classroom is the now becomes the law of the land, and State. This is especially focused on the philosophy of tomorrow’s government, the people in Indiana or Michigan or scholarship tax credit programs for tui- and how our children grow up and the Arizona never had any problem, they tion organizations that give tuition to days that exist now will certainly dic- look and see what book is being handed children to go to the schools of their tate the kinds of philosophies that fill out, and for 100 years this school has parents’ choice. these seats across this room. I would been handing out a Bible at gradua- Mr. HOEKSTRA. And it is intended appropriate the words of one of our tion, and we are not telling people to help public schools as well? predecessors of a long time ago, Daniel what to believe or whatever. It breaks Mr. FRANKS of Arizona. It lets the Webster. Daniel Webster said it this the bond. Again, it is one of those bar- States make that decision. We tried to way. He said if we work on marble, it riers that comes up between a local create the broadest possible latitude will perish. And there is a lot of marble public school and their community, for the States and the local govern- around here. If we work on brass, time and these are the barriers that I think ments there to do that. Certainly if we will efface it. There is a lot of brass in

VerDate jul 14 2003 01:46 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00086 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.120 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1317 this place. If we rear up temples, they and 5,000 innocent Iraqis have been their brothers, their friends, they said will crumble in the dust. But if we killed as a result of this war. In fact, as they are going off because of these work upon immortal minds and imbue of yesterday, there have been 566 Amer- weapons of mass destruction that the them with principles with the just fear icans, 59 Britains, 5 Bulgarians, 1 Dane, President had told them about. of God and the love for our fellow men, 1 Estonian, 17 Italians, 2 Poles, 10 Mr. Speaker, I am not here to beat up we engrave on those tablets something Spaniards, 2 Thai and 3 Ukrainians on the President because that is not that will brighten to all eternity. that have died in Iraq. And according appropriate. But I am here to remind That is what it is really all about to the Pentagon, there have been over us of why we went to war. I think that here. This is more than just a bureau- 3,000 U.S. troops wounded. Those troops so often what happens is that we get so cratic struggle over who has control are some of the same people that I see caught up in the political fray that is over what happens. It is about trying in Walter Reed when I visit. going on that we forget that when to make sure that the foundations and I was just at Walter Reed 2 weeks those parents stood at those various the underpinnings of America and the ago. When I see the young men and departing stations that they thought great principles that have made us the women who have gone off into war, they were going for one reason, and greatest Nation in the history of the many of them coming back missing a then once the war got started and world remain in the hearts of the com- leg, an arm, two legs, many of them moved forward and as weapons of mass ing generations. That is certainly my feeling a bit disoriented, many of them destruction were not found, we then belief, and I yield to the gentleman to feeling confused, many of them just began to hear new reasons. express his perspective. simply trying to get, as one soldier And so it is when the President said Mr. HOEKSTRA. Mr. Speaker, there said, from one day to another, again, that we were going to destroy these is not much I can add to Daniel Web- this commemoration will not be a joy- weapons, and although I must say that ster or the gentleman’s rendition of ous one. the Congressional Black Caucus begged Daniel Webster. Mr. Speaker, we in the Congressional on this floor the President to think On occasion I have an opportunity to Black Caucus wholeheartedly believe very carefully before going to war, this give a tour of the Capitol at night. One in the principles of peace. We also be- Congressional Black Caucus begged, of the places I go to is the other body. lieve in the principles of freedom as because we said that the number one I go to the desk that was Daniel Web- well as a necessity for America to pro- thing that we must always protect is ster’s desk and tell the stories about vide security for all of her citizens. But the lives of human beings, be they him. He was a great orator, a very wise we also wholeheartedly believe in pro- American soldiers, be they American man, as the gentleman has quoted him. tecting the sanctity of human life. civilians, or be they the Iraqi innocent I think his quotes would be a very ap- Mr. Speaker, just last year, President people, we must always look at life as propriate place to end this Special Bush convinced the Nation that Iraq the number one priority. But then we Order. possessed weapons of mass destruction went to war. and thereby posed an imminent threat But before we went to war, we asked f to our national security. And while the President, Are American lives in b 1730 there have been questions as to wheth- imminent danger? We asked the ques- A LOOK BACK ON THE ONE-YEAR er our data from the CIA and other or- tion over and over and over again. ANNIVERSARY OF OPERATION ganizations was accurate, the fact still Sadly, back then, we could not get an IRAQI FREEDOM remains to this day that no weapons of answer. But the implication was that mass destruction have been found. I we had major, major problems and that The SPEAKER pro tempore (Mr. think, Mr. Speaker, that that is one of these weapons of mass destruction PORTER). Under the Speaker’s an- the things that makes it so painful for could be released at any time and could nounced policy of January 7, 2003, the so many of the families. We see them do so much harm. gentleman from Maryland (Mr. on network television and we see them We asked other questions, too. One of CUMMINGS) is recognized for 60 minutes. on the cable shows, those families who those questions was as we proceed with GENERAL LEAVE say that they believe in this country, this war, how is it going to be paid for? Mr. CUMMINGS. Mr. Speaker, I ask that they raised their boys and girls as Who is going to pay for it? The Presi- unanimous consent that all Members little children to put their hands up to dent was very generous in an answer may have 5 legislative days to revise their hearts and to say the Pledge of when he talked about the war. and extend their remarks on the sub- Allegiance to the flag. They taught I shall never forget sitting in one of ject of my special order. them to be patriotic. They taught these seats as I listened to him. One of The SPEAKER pro tempore. Is there them to stand up for what they believe the things that he said was that this objection to the request of the gen- in. They taught them to stand up for war had come to us, we did not go to it. tleman from Maryland? the Office of the President, but, more He went on to say that we had to act There was no objection. significantly, to stand up for one of the now and we had to act so that our chil- Mr. CUMMINGS. Mr. Speaker, I rise greatest countries in the world. And so dren and our grandchildren and their tonight along with fellow members of from little children they stood up and offspring would not have to deal with the Congressional Black Caucus to dis- they said, ‘‘I pledge allegiance to the this issue and would not have to pay cuss the ongoing war in Iraq. As you flag of the United States of America for this. And so again our soldiers went well know, tomorrow will mark the 1- and to the Republic for which it stands, off to war, believing that as they year anniversary of Operation Iraqi one Nation under God, indivisible with marched onto the soil of Iraq that they Freedom. I am sure you would agree, liberty and justice for all.’’ were making sure that the weapons of Mr. Speaker, that this is one anniver- Those parents who now see their sons mass destruction, when found, would sary that will not be commemorated and daughters in many instances sadly be done away with so that no harm with a joyous celebration. Instead, this coming back in sealed caskets, coming would not only come to the Iraqi peo- anniversary will be met with somber back with limbs missing, some of them ple but to the world. reflection upon those lives, both mili- have begun to ask the question, Why is But, Mr. Speaker, I cannot help but tary and civilian, that were lost or for- it that we went to war? For when we ask, if the ultimate goal of this pre- ever changed as a result of this tragic went to war, Mr. Speaker, they did not emptive war was to disarm Saddam war. hear the term ‘‘regime change.’’ That Hussein, was our mission really accom- Just last year, Mr. Speaker, Presi- is not what they thought. They plished? Could we have reached the dent Bush told the American people, thought that there was imminent dan- same end by utilizing a different and I quote, ‘‘I want Americans and all ger. They thought our country was in means? Day after day as I listen to my the world to know that coalition forces deep trouble. I am sure that as they colleagues come upon this floor and will make every effort to spare inno- stood at the air bases and as they stood talk about how it is that we now have cent civilians from harm.’’ Yet just 1 at the train stations and as they waved Saddam Hussein in custody and how we year later, the New York Times is re- good-bye to their sons, to their hus- have gotten rid of this tyrant and we porting that somewhere between 3,000 bands, their wives, to their sisters, have locked up this person who was

VerDate jul 14 2003 01:46 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00087 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.121 H18PT1 H1318 CONGRESSIONAL RECORD — HOUSE March 18, 2004 just a person that did so much harm to saying that it was misled about the He went on to say, ‘‘It is an injustice so many people, I ask myself the ques- threat from Saddam Hussein’s weapons to the military because you gave your tion, Was that the reason that we went of mass destruction. life to the country and the country into war from the beginning? After all, b 1745 should give something back to you. we still have not yet found, by the way, Even just a moment of silence. Every the weapons of mass destruction that Unfortunately, the tide seems to be day that someone dies, the flag should were supposed to have caused this pre- beginning to turn against the United be lowered to half staff, not just be- emptive war. States. Mr. Speaker, I contend that in cause a politician dies.’’ He went on to By the way, that is another issue a multicultural society bolstered by a say, ‘‘Those guys are good people. They global economy, there is absolutely no that we brought up, the whole issue of work hard. They do anything and ev- room for a unilateralist foreign policy. preemption. The Congressional Black erything that is asked of them, and Following President Bush’s pro- Caucus, before this war came about, nouncement of war last year, the Vati- they gave the ultimate sacrifice. It said that one of our major concerns can offered this response: ‘‘Whoever de- should not be that you have to go to a was that we were committing a pre- cides that peaceful means under inter- Web site to find out who died.’’ emptive strike; that is, that we were So on this 1-year anniversary, al- national law’’ that was put at our dis- going into a war of more or less preven- though we do not see their faces, in position ‘‘have been exhausted assumes tion and certainly one, if one goes a serious responsibility before God, his towns and communities all over our away from what we normally would do, own conscience, and his country.’’ country, people are experiencing the and this preemptive strike is a major I have often said, Mr. Speaker, a hun- pain of war. Many of them are going to thing because that is something that dred years ago none of us were here and funerals, and our prayers go out with the United States does not do; but the a hundred years from now, none of us them. Many of them finding them- fact is that going into a preemptive will be here. The question is what do selves in hospitals, and our prayers go strike caused us a lot of concern be- we do to make our time on this Earth out to them. Our prayers go out to all cause we began to ask the question, the best that it can be? And perhaps the families who have suffered losses. Well, what are we trying to prevent? the greater question is, how do we Our prayers also go out to all of our That is where the question of immi- make the lives of others the best that military who have gone forth to do nent danger came in. Again, that ques- they can be? what they had been called upon to do tion was never answered. And to be Let us seize upon this moment to by our Commander in Chief. We pause frank, when we look back at it, I do begin working with international lead- on this 1-year anniversary to simply not think this country was in immi- ers to correct our current course in say to them, we thank them. We thank nent danger. In essence, we have traded order that history would reflect kindly them for putting their lives in harm’s over 600 coalition lives and that of upon us as a Nation. One year later, way. We thank them for standing up. countless civilians for that one brutal Mr. Speaker, we must reclaim the We thank them for being counted. dictator. One year later, we must ask, moral high ground for the sake of our And as Swindoll, the great theolo- was it worth it? Was it worth it to the children and those generations yet un- gian, has often said, It is the things young man in my district, one of the born. I have often said that our chil- that you do when you are unknown, first casualties of the war? dren are the living messages we send to unseen, unappreciated, and unap- I shall never forget, Mr. Speaker, as a future we will never see. Our children plauded that truly matter. his father heard about his death and are the living messages we send to a fu- So we in the Congressional Black cried out, Why is it that my son has ture we will never see. We cannot allow Caucus refuse, as we did before the war, died? He wanted to know, that is, Ser- our children, through our actions to be silent. We must raise our voices geant Walters-Bey’s father wanted to today, to send a message of war, arro- as we said then, as we begged the Presi- know why his son had died. I shall gance, and bloodshed to that future. dent not to go to war, and now that so never forget going to the funeral and Martin Luther King, Jr. once said, many of our soldiers have gone on, our standing there as he begged me for an ‘‘The chain reaction of evil, hate beget- civilians have gone on, innocent Iraqi answer to the question with tears roll- ting hate, wars producing more wars, people have gone on, so many have ing down his face, Why has my son must be broken; or we shall be plunged been injured, we again raise our voices. died? His father was very clear. He had into the dark abyss of annihilation.’’ Only this time we raise our voices to read the papers, he had watched the On this 1-year anniversary, let us not recognize those whose names will ap- newscasts. He said to me, Mr. Speaker, only contemplate how to better secure pear in a local paper or may appear in ‘‘I am all for doing whatever is nec- our homeland, but let us also con- one or two paragraphs of some article essary to support this country. My son template how to secure the peace. One talking about casualties in Iraq. We was for whatever was necessary to sup- of the things that is so fascinating in raise them and say to all of them, to port this country. But I question what an article that I recently read where a those who have gone on, to those who this war was all about.’’ young man who was a medic in this have been injured, to those who are And so, Mr. Speaker, I have asked war and is now home and he wished to still in Iraq, to those who have come time and time again if we had enough remain anonymous, he was stationed home for the 2-week leave and are intelligence to determine that Saddam at the Baghdad airport as a medic, and about to go back, to those who believe Hussein was hiding chemical and bio- he talked about how he had served in so strongly in our country, they are no logical weapons then, why has the In- previous wars, and he talked about how longer unseen, unnoticed, unappre- telligence Community not been able to it was interesting how different it was ciated, and unapplauded. We pause to lead us to those weapons? It is no won- because the young people that come say to them ‘‘thank you.’’ der that the world leaders are now back, the soldiers that come back And so, hopefully, Mr. Speaker, as challenging our credibility. today, a lot of times the public never America goes to bed tonight, perhaps Mr. Speaker, I know that the truth has an opportunity to see our fallen. all of us need fall on our knees and ask hurts, but the President need not And he went on to say that ‘‘from what God or at least whisper a prayer or blame others for the predicament that I gather, it used to be that the Presi- have a moment of silence to recognize he has caused. It is no secret that our dent would go out to the area to meet all of those who I have just mentioned standing around the world has plum- the deceased soldiers coming in. They who have given so much to make sure meted as a result of President Bush’s would drape caskets and they would ac- this country stays strong. tually watch and give a moment of si- foreign policy. Spain, a country that f stood with President Bush just 1 year lence as the coffins came in.’’ He went ago and supported this preemptive war, on to say, and this is a soldier, ‘‘The LEAVE OF ABSENCE is now calling the United States occu- Bush administration felt that this was By unanimous consent, leave of ab- pation a fiasco. too much for Americans to handle. So sence was granted to: Just today, Poland, a country which they secured that part of the cere- Ms. HARMAN (at the request of Ms. has about 2,400 troops in Iraq and was mony’’ and he said that ‘‘no one knows PELOSI) for today on account of per- a strong supporter of the invasion, is when that fallen soldier comes home. sonal business.

VerDate jul 14 2003 04:08 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00088 Fmt 4636 Sfmt 0634 E:\CR\FM\K18MR7.123 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1319 Mrs. BLACKBURN (at the request of Mr. BROWN of Ohio, for 5 minutes, Mr. WILSON of South Carolina, for 5 Mr. DELAY) for today on account of at- today. minutes, today. tending official ceremonies in her dis- Mr. FILNER, for 5 minutes, today. Mr. GARRETT of New Jersey, for 5 trict commemorating America’s 1-year Ms. NORTON, for 5 minutes, today. minutes, today. anniversary of Iraq involvement at Mr. CONYERS, for 5 minutes, today. Mr. BILIRAKIS, for 5 minutes, March Mr. LANGEVIN, for 5 minutes, today. Fort Campbell with President Bush and 25. Major General Petraeus. Mr. FRANK of Massachusetts, for 5 Mr. KIRK, for 5 minutes, today. f minutes, today. Mr. EMANUEL, for 5 minutes, today. SPECIAL ORDERS GRANTED Ms. BERKLEY, for 5 minutes, today. f By unanimous consent, permission to Mr. MCGOVERN, for 5 minutes, today. address the House, following the legis- Mr. ENGEL, for 5 minutes, today. ADJOURNMENT lative program and any special orders Mr. LAMPSON, for 5 minutes, today. heretofore entered, was granted to: Mr. BAIRD, for 5 minutes, today. Mr. CUMMINGS. Mr. Speaker, I move (The following Members (at the re- Ms. CORRINE BROWN of Florida, for 5 that the House do now adjourn. quest of Mr. MCGOVERN) to revise and minutes, today. The motion was agreed to; accord- extend their remarks and include ex- (The following Members (at the re- ingly (at 5 o’clock and 54 minutes traneous material:) quest of Mr. WILSON of South Carolina) p.m.), under its previous order, the Mr. DEFAZIO, for 5 minutes, today. to revise and extend their remarks and House adjourned until Monday, March Mr. PALLONE, for 5 minutes, today.h include extraneous material:) 22, 2004, at noon. EXPENDITURE REPORTS CONCERNING OFFICIAL FOREIGN TRAVEL Reports concerning the foreign currencies and U.S. dollars utilized for speaker-authorized official travel during the fourth quarter of 2003 and the first quarter of 2004, pursuant to Public Law 95–384 are as follows:

REPORT OF EXPENDITURES FOR OFFICIAL FOREIGN TRAVEL, HON. JOHN V. SULLIVAN, HOUSE OF REPRESENTATIVES, EXPENDED BETWEEN JAN. 13 AND JAN 17, 2004

Date Per diem 1 Transportation Other purposes Total U.S. dollar U.S. dollar U.S. dollar U.S. dollar Name of Member or employee Country Foreign equivalent Foreign equivalent Foreign equivalent Foreign equivalent Arrival Departure currency or U.S. currency or U.S. currency or U.S. currency or U.S. currency 2 currency 2 currency 2 currency 2

Hon. John V. Sullivan ...... 1/13 1/17 U.K...... 1,748.00 ...... 5,872.53 ...... 7,620.53

Committee total ...... 7,620.53

1 Per diem constitutes lodging and meals. 2 If foreign currency is used, enter U.S. dollar equivalent; if U.S. currency is used, enter amount expended. JOHN V. SULLIVAN, Mar. 4, 2004.

REPORT OF EXPENDITURES FOR OFFICIAL FOREIGN TRAVEL, MR. KEVIN FROMER, HOUSE OF REPRESENTATIVES, EXPENDED BETWEEN JAN. 4 AND JAN. 9, 2004

Date Per diem 1 Transportation Other purposes Total U.S. dollar U.S. dollar U.S. dollar U.S. dollar Name of Member or employee Country Foreign equivalent Foreign equivalent Foreign equivalent Foreign equivalent Arrival Departure currency or U.S. currency or U.S. currency or U.S. currency or U.S. currency 2 currency 2 currency 2 currency 2

Kevin Fromer ...... 1/4 1/6 Jordan ...... 467.00 ...... 467.00 1/6 1/9 Israel ...... 724.00 ...... 724.00

Committee total ...... 1,191.00 ...... 1,191.00

1 Per diem constitutes lodging and meals. 2 If foreign currency is used, enter U.S. dollar equivalent; if U.S. currency is used, enter amount expended. J. DENNIS HASTERT, Speaker of the House.

REPORT OF EXPENDITURES FOR OFFICIAL FOREIGN TRAVEL, MR. ROBERT W. VAN WICKLIN, HOUSE OF REPRESENTATIVES, EXPENDED BETWEEN FEB.15 AND FEB. 18, 2004

Date Per diem 1 Transportation Other purposes Total U.S. dollar U.S. dollar U.S. dollar U.S. dollar Name of Member or employee Country Foreign equivalent Foreign equivalent Foreign equivalent Foreign equivalent Arrival Departure currency or U.S. currency or U.S. currency or U.S. currency or U.S. currency 2 currency 2 currency 2 currency 2

Robert W. Van Wicklin ...... 2/15 2/18 France ...... E1073 1,374.00 ...... 5,961.09 ...... E1073 7,335.09

Committee total ...... 1,374.00 ...... 5,961.09 ...... 7,335.09

1 Per diem constitutes lodging and meals. 2 If foreign currency is used, enter U.S. dollar equivalent; if U.S. currency is used, enter amount expended. ———

REPORT OF EXPENDITURES FOR OFFICIAL FOREIGN TRAVEL, MR. RYAN TATE, HOUSE OF REPRESENTATIVES, EXPENDED BETWEEN FEB. 15 AND FEB. 22, 2004

Date Per diem 1 Transportation Other purposes Total

Name of Member or employee Country U.S. dollar U.S. dollar U.S. dollar U.S. dollar Arrival Departure Foreign equivalent Foreign equivalent Foreign equivalent Foreign equivalent currency or U.S. currency or U.S. currency or U.S. currency or U.S. currency 2 currency 2 currency 2 currency 2

Ryan Tate ...... 2/15 2/22 China ...... 1,123,000 ...... 5,631.00 ...... 6,754.00

Committee total ...... 1,123.00 ...... 5,631.00 ...... 6,754.00

1 Per diem constitutes lodging and meals. 2 If foreign currency is used, enter U.S. dollar equivalent; if U.S. currency is used, enter amount expended. J. DENNIS HASTERT, Speaker of the House, Mar. 2, 2004.

VerDate jul 14 2003 04:08 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00089 Fmt 4636 Sfmt 8634 E:\CR\FM\K18MR7.125 H18PT1 H1320 CONGRESSIONAL RECORD — HOUSE March 18, 2004 REPORT OF EXPENDITURES FOR OFFICIAL FOREIGN TRAVEL, MS. DEANNA FUNDERBURK, HOUSE OF REPRESENTATIVES, EXPENDED BETWEEN FEB. 15 AND FEB. 22, 2004

Date Per diem 1 Transportation Other purposes Total U.S. dollar U.S. dollar U.S. dollar U.S. dollar Name of Member or employee Country Foreign equivalent Foreign equivalent Foreign equivalent Foreign equivalent Arrival Departure currency or U.S. currency or U.S. currency or U.S. currency or U.S. currency 2 currency 2 currency 2 currency 2

Deana Funderburk ...... 2/15 2/22 China ...... 1,123,000 ...... 5,631.00 ...... 6,754.00 Committee total ...... 1,123.00 ...... 5,631.00 ...... 6,754.00 1 Per diem constitutes lodging and meals. 2 If foreign currency is used, enter U.S. dollar equivalent; if U.S. currency is used, enter amount expended. J. DENNIS HASTERT, Speaker of the House, Mar. 2, 2004.

REPORT OF EXPENDITURES FOR OFFICIAL FOREIGN TRAVEL, MS. ANNE LENAY, HOUSE OF REPRESENTATIVES, EXPENDED BETWEEN FEB. 16 AND FEB. 20, 2004

Date Per diem 1 Transportation Other purposes Total U.S. dollar U.S. dollar U.S. dollar U.S. dollar Name of Member or employee Country Foreign equivalent Foreign equivalent Foreign equivalent Foreign equivalent Arrival Departure currency or U.S. currency or U.S. currency or U.S. currency or U.S. currency 2 currency 2 currency 2 currency 2

Travel to Qatar, Pakistan, Afghanistan and Kuwait 2/16 2/17 Qatar ...... 130.00 ...... 130.00 February 16–20, 2004: Anne R. LeMay. 2/17 2/19 Pakistan ...... 526.00 ...... 526.00 2/17 2/18 Afghanistan (day trips) ...... 2/19 2/20 Kuwait ...... 402.00 ...... 402.00 Commercial airfare ...... 7,385.75 ...... 7,385.75 Committee total ...... 1,058.00 ...... 7,385.75 ...... 8,443.75 1 Per diem constitutes lodging and meals. 2 If foreign currency is used, enter U.S. dollar equivalent; if U.S. currency is used, enter amount expended. ANNE R. LeMAY, Feb. 24, 2004.

REPORT OF EXPENDITURES FOR OFFICIAL FOREIGN TRAVEL, DELEGATION TO THE PEOPLE’S REPUBLIC OF CHINA AND HONG KONG, HOUSE OF REPRESENTATIVES, EXPENDED BETWEEN JAN. 10 AND JAN. 17, 2004

Date Per diem 1 Transportation Other purposes Total U.S. dollar U.S. dollar U.S. dollar U.S. dollar Name of Member or employee Country Foreign equivalent Foreign equivalent Foreign equivalent Foreign equivalent Arrival Departure currency or U.S. currency or U.S. currency or U.S. currency or U.S. currency 2 currency 2 currency 2 currency 2

Hon. Amo Houghton ...... 1/10 1/16 China ...... Y12,843.81 1,554.00 n/a ...... n/a ...... Y12,843.81 1,554.00 1/16 1/17 Hong Kong ...... HK2,942.00 379.00 n/a ...... n/a ...... HK2,942.00 379.00 Hon. Earl Pomeroy ...... 1/10 1/16 China ...... Y12,843.81 1,554.00 n/a ...... n/a ...... Y12,843.81 1,554.00 1/16 1/17 Hong Kong ...... HK2,942.00 379.00 n/a ...... n/a ...... HK2,942.00 379.00 Hon. Nick Smith ...... 1/10 1/16 China ...... Y12,843.81 1,554.00 n/a ...... n/a ...... Y12,843.81 1,554.00 1/16 1/17 Hong Kong ...... HK2,942.00 379.00 n/a ...... n/a ...... HK2,942.00 379.00 Hon. Phil English ...... 1/10 1/16 China ...... Y12,843.81 1,554.00 n/a ...... n/a ...... Y12,843.81 1,554.00 1/16 1/17 Hong Kong ...... HK2,942.00 379.00 n/a ...... n/a ...... HK2,942.00 379.00 Robert W. Van Wicklin ...... 1/10 1/16 China ...... Y12,843.81 1,554.00 n/a ...... n/a ...... Y12,843.81 1,554.00 1/16 1/17 Hong Kong ...... HK2,942.00 379.00 n/a ...... n/a ...... HK2,942.00 379.00 Committee total ...... 9,665.00 ...... 9,665.00 1 Per diem constitutes lodging and meals. 2 If foreign currency is used, enter U.S. dollar equivalent; if U.S. currency is used, enter amount expended. ———

REPORT OF EXPENDITURES FOR OFFICIAL FOREIGN TRAVEL, SELECT PERMANENT COMMITTEE ON INTELLIGENCE, HOUSE OF REPRESENTATIVES, EXPENDED BETWEEN OCT. 1 AND DEC. 31, 2003

Date Per diem 1 Transportation Other purposes Total U.S. dollar U.S. dollar U.S. dollar U.S. dollar Name of Member or employee Country Foreign equivalent Foreign equivalent Foreign equivalent Foreign equivalent Arrival Departure currency or U.S. currency or U.S. currency or U.S. currency or U.S. currency 2 currency 2 currency 2 currency 2

Hon. Robert E. (Bud) Cramer ...... 10/23 10/28 Asia ...... 1,518.00 ...... Commercial airfare ...... 5,338.22 ...... 6,856.22 Hon. Robert E. (Bud) Cramer ...... 11/29 12/07 Asia ...... 2,106 ...... Commercial airfare ...... 6,252.90 ...... 8,358.90 Michael Kostiw, Staff ...... 11/24 11/28 Middle East ...... 952.00 ...... (3) ...... 952.00 Patrick Kelly, Staff ...... 11/24 11/28 Middle East ...... 952.00 ...... (3) ...... 952.00 Robert Myhill, Staff ...... 11/24 11/28 Middle East ...... 952.00 ...... (3) ...... 952.00 William McFarland, Staff ...... 11/24 11/28 Middle East ...... 952.00 ...... (3) ...... 952.00 Hon. Mac Collins ...... 11/24 11/28 Middle East ...... 952.00 ...... (3) ...... 952.00 Kathleen Reilly, Staff ...... 11/30 12/6 Central America ...... 412.50 ...... Commercial airfare ...... 1,232.14 ...... 1,644.64 Kevin Schmidt, Staff ...... 11/30 12/6 Central America ...... 412.50 ...... Commercial airfare ...... 1,232.14 ...... 1,644.64 John Stopher, Staff ...... 11/30 12/2 Southeast Asia ...... 802.18 ...... Commercial airfare ...... 5,815.90 ...... 6,618.08 Michael Kostiw, Staff ...... 12/10 12/14 Europe ...... 686.00 ...... 12/14 12/18 Europe ...... 728.00 ...... 12/18 12/21 Europe ...... 994.00 ...... Commercial airfare ...... 8,042.33 ...... 10,450.33 Patrick Kelly, Staff ...... 12/10 12/14 Europe ...... 686.00 ...... 12/14 12/18 Europe ...... 728.00 ...... 12/18 12/20 Europe ...... 696.00 ...... Commercial airfare ...... 7,992.48 ...... 10,102.48 Barbara Bennett, Staff ...... 12/1 12/14 Asia ...... 1,101.00 ...... 12/4 12/6 Asia ...... 564.00 ...... Commercial airfare ...... 7,597.35 ...... 9,262.35 Michael Ennis, Staff ...... 12/5 12/10 Asia ...... 1,108.00 ...... 12/10 12/12 Asia ...... 656.00 ...... Commercial airfare ...... 7,150.00 ...... 8,586.00 Marcel Lettre, Staff ...... 12/5 12/10 Asia ...... 1,108.00 ...... 12/10 12/11 Asia ...... 328.00 ...... 12/11 12/14 Asia ...... 1,101.00 ...... Commercial airfare ...... 7,074.67 ...... 9,611.67 Wyndee Parker, Staff ...... 12/5 12/10 Asia ...... 1,108.00 ...... 12/10 12/11 Asia ...... 328.00 ...... 12/11 12/14 Asia ...... 1,101.00 ......

VerDate jul 14 2003 04:08 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00090 Fmt 4636 Sfmt 8634 E:\CR\FM\A18MR7.084 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1321 REPORT OF EXPENDITURES FOR OFFICIAL FOREIGN TRAVEL, SELECT PERMANENT COMMITTEE ON INTELLIGENCE, HOUSE OF REPRESENTATIVES, EXPENDED BETWEEN OCT. 1 AND DEC. 31, 2003—Continued

Date Per diem 1 Transportation Other purposes Total U.S. dollar U.S. dollar U.S. dollar U.S. dollar Name of member or employee Country Foreign equivalent Foreign equivalent Foreign equivalent Foreign equivalent Arrival Departure currency or U.S. currency or U.S. currency or U.S. currency or U.S. currency 2 currency 2 currency 2 currency 2

Commercial airfare ...... 7,074.67 ...... 9,611.67 Suzanne Spaulding, Staff ...... 12/15 12/18 Middle East ...... 767.00 ...... (3) ...... 12/18 12/19 North Africa...... 255.00 ...... (3) ...... 1,022.00 Hon. Jane Harman ...... 12/14 12/18 Middle East ...... 767.00 ...... (3) ...... 12/18 12/19 North Africa...... 255.00 ...... (3) ...... 1,022.00 Kathleen Reilly, Staff ...... 12/18 12/19 Europe ...... 293.00 ...... 12/14 12/17 Europe...... 716.00 ...... Commercial airfare ...... 5,020.09 ...... 6,029.09 Hon. Collin Peterson ...... 12/18 12/21 Europe ...... 879.00 ...... 12/14 12/17 Europe...... 716.00 ...... Commercial airfare ...... 5,373.51 ...... 6,968.51 Barbara Bennett, Staff ...... 12/11 12/14 Europe ...... 1,263.00 ...... 12/14 12/17 Europe...... 1,620.00 ...... 12/17 12/19 Europe...... 586.00 ...... Commercial airfare ...... 6,203.33 ...... 9,672.33 Michael Fogarty, Staff ...... 12/11 12/14 Europe ...... 1,263.00 ...... 12/14 12/17 Europe...... 1,620.00 ...... 12/17 12/19 Europe...... 586.00 ...... Commercial airfare ...... 6,203.33 ...... 9,672.33 Committee total ...... 121,893.24 1 Per diem constitutes lodging and meals. 2 If foreign currency is used, enter U.S. dollar equivalent; if U.S. currency is used, enter amount expended. 3 Military air transportation. PORTER GOSS, Chairman, Feb. 23, 2004.

EXECUTIVE COMMUNICATIONS, 7197. A letter from the Acting Chief, Publi- impose certain recordkeeping requirements ETC. cations and Regulations Br., Internal Rev- on retailers subject to such Act, to clarify enue Service, transmitting the Service’s the authority to impose civil penalties under Under clause 8 of rule XII, executive final rule — Certain Cost-Sharing Payments such Act, and for other purposes; to the Com- communications were taken from the (Rev. Rul. 2004-08) received March 10, 2004, mittee on Agriculture. Speaker’s table and referred as follows: pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- By Mr. YOUNG of Alaska (for himself, 7190. A letter from the Director, Depart- mittee on Ways and Means. Mr. OBERSTAR, Mr. PETRI, and Mr. LI- ment of Health and Human Services, trans- 7198. A letter from the Acting Chief, Publi- PINSKI): mitting as required by Section 902(g) of the cations and Regulations Br., Internal Rev- H.R. 3994. A bill to authorize funds for Fed- Healthcare Research and Quality Act of 1999 enue Service, transmitting the Service’s eral-aid highways, highway safety programs, (Pub. L. 106–129), a report entitled ‘‘The Na- final rule — Weighted Average Interest Rate and transit programs, and for other purposes; tional Healthcare Disparities Report Update [Notice 2004-24] received March 5, to the Committee on Transportation and In- (NHDR)’’; to the Committee on Energy and 2004, pursuant to 5 U.S.C. 801(a)(1)(A); to the frastructure. Commerce. Committee on Ways and Means. By Mr. HILL (for himself, Mr. SCHIFF, 7191. A letter from the Secretary, Depart- 7199. A letter from the Acting Chief, Publi- Mrs. TAUSCHER, Mr. JOHN, Mr. BISHOP ment of the Treasury, transmitting a 6- cations and Regulations Br., Internal Rev- of Georgia, Mr. STENHOLM, Mr. COO- month periodic report on the national emer- enue Service, transmitting the Service’s PER, Ms. HARMAN, Mr. CARDOZA, Mr. gency with respect to Iran that was declared final rule — Examination of returns and BERRY, Mr. BOYD, Mr. POMEROY, Mr. in Executive Order 12957 of March 15, 1995, claims for refund, credit, or abatement; de- MATHESON, Mr. BOSWELL, Mr. pursuant to 22 U.S.C. 2349aa-9(c); to the Com- termination of correct tax liability (Rev. HOLDEN, Ms. LORETTA SANCHEZ of mittee on International Relations. Proc. 2004-17) received 5, 2004, pursuant to 5 7192. A letter from the Secretary, Depart- California, Mr. CASE, Mr. TANNER, U.S.C. 801(a)(1)(A); to the Committee on ment of The Treasury, transmitting the Mr. THOMPSON of California, Mr. semiannual report detailing payments made Ways and Means. MOORE, Mr. TAYLOR of Mississippi, to Cuba as a result of the provision of tele- f Mr. MICHAUD, Mr. TURNER of Texas, communications services pursuant to De- and Mr. SANDLIN): partment of the Treasury specific licenses, REPORTS OF COMMITTEES ON H.R. 3995. A bill to amend the Balanced pursuant to 22 U.S.C. 6004(e)(6); to the Com- PUBLIC BILLS AND RESOLUTIONS Budget and Emergency Deficit Control Act mittee on International Relations. Under clause 2 of rule XIII, reports of of 1985 and the Congressional Budget Act of 7193. A letter from the Under Secretary for 1974 to extend the discretionary spending Industry and Security, Department of Com- committees were delivered to the Clerk caps and the pay-as-you-go requirement, and merce, transmitting the Department’s report for printing and reference to the proper for other purposes; to the Committee on the entitled, ‘‘Imposition of Foreign Policy Con- calendar, as follows: Budget, and in addition to the Committee on trols on Items Previously Controlled For Na- Mr. BARTON: Committee on Energy and Rules, for a period to be subsequently deter- tional Security Reasons’’; to the Committee Commerce. House Resolution 522. Resolution mined by the Speaker, in each case for con- on International Relations. expressing the sense of the House of Rep- sideration of such provisions as fall within 7194. A letter from the Secretary, Depart- resentatives that there is a critical need to the jurisdiction of the committee concerned. ment of Commerce, transmitting the annual increase awareness and education about By Mr. SCHIFF (for himself, Mr. report for FY 2003 of the Department’s Bu- heart disease and the risk factors of heart SHAYS, Mr. FROST, Mr. BLUMENAUER, reau of Industry and Security; to the Com- disease among women (Rept. 108–440). Re- Ms. JACKSON-LEE of Texas, Mr. CASE, mittee on International Relations. ferred to the House Calendar. and Ms. MCCARTHY of Missouri): 7195. A letter from the Administrator, H.R. 3996. A bill to build operational readi- Small Business Administration, transmit- f ness in civilian agencies, and for other pur- ting the Administration’s inventories of poses; to the Committee on International Commercial and Inherently Governmental PUBLIC BILLS AND RESOLUTIONS Relations. Activities for Year 2003 as pursuant to the Under clause 2 of rule XII, public Federal Activities Inventory Reform Act, By Mr. BOOZMAN: bills and resolutions were introduced H.R. 3997. A bill to direct the Secretary of pursuant to Public Law 105–270 section and severally referred, as follows: 2(c)(1)(A); to the Committee on Government Agriculture to convey to the New Hope Cem- Reform. By Mrs. BONO (for herself and Ms. etery Association a small parcel of National 7196. A letter from the Architect of the HOOLEY of Oregon): Forest System land in the State of Arkansas Capitol, transmitting a report discussing the H.R. 3993. A bill to amend the Agricultural for use as a cemetery; to the Committee on Congressional Office recycling programs for Marketing Act of 1946, as recently amended Agriculture. traditional and electronic equipment waste by the Agriculture, Rural Development, By Mr. COOPER (for himself and Mr. (E-waste) for the first quarter of FY 2004, Food and Drug Administration, and Related FOLEY): pursuant to the directions issued in House Agencies Appropriations Act, 2004, to expe- H.R. 3998. A bill to expand au pair exchange Report 107-576; to the Committee on House dite the implementation of the country of visitor programs to include the provision of Administration. origin labeling requirements of such Act, to in-home independent living services for

VerDate jul 14 2003 03:25 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00091 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.087 H18PT1 H1322 CONGRESSIONAL RECORD — HOUSE March 18, 2004

adults with disabilities, and for other pur- and railroads and provide law enforcement H.R. 745: Ms. KAPTUR and Ms. ROYBAL-AL- poses; to the Committee on International with the tools to combat and prevent at- LARD. Relations. tacks on mass transportation and railroads; H.R. 814: Mrs. CAPITO. By Mr. GREENWOOD (for himself, Mr. to the Committee on the Judiciary. H.R. 962: Mr. CAPUANO. GREEN of Texas, Mr. BILIRAKIS, and By Mr. ACKERMAN (for himself, Ms. H.R. 965: Mr. DICKS. Mr. BROWN of Ohio): ROS-LEHTINEN, Mr. LANTOS, Mr. WAX- H.R. 1002: Mr. INSLEE. H.R. 3999. A bill to amend the Public MAN, Mr. BERMAN, Mr. ENGEL, Mr. H.R. 1117: Mr. GOSS. Health Service Act with respect to trauma MATSUI, and Ms. BERKLEY): H.R. 1205: Mr. SHERMAN. care, and for other purposes; to the Com- H. Con. Res. 390. Concurrent resolution H.R. 1251: Mr. FILNER. mittee on Energy and Commerce. condemning the adoption of United Nations H.R. 1258: Mr. CROWLEY. By Mr. HOBSON (for himself and Ms. General Assembly Resolution ES-10/14 (De- H.R. 1264: Mr. PETERSON of Minnesota. NORTON): cember 8, 2003) which requests the Inter- H.R. 1266: Mr. SHAYS. H.R. 4000. A bill to amend title 10, United national Court of Justice (ICJ) to render an H.R. 1340: Mr. GORDON. States Code, to establish a program of finan- advisory opinion concerning the inter- H.R. 1470: Mr. LYNCH, Mr. HOEFFEL, Mr. cial assistance to enable more members of national legal consequences arising from FILNER, and Mr. ROTHMAN. the National Guard of the District of Colum- Israel’s construction of a security fence in H.R. 1480: Mr. BOUCHER and Mr. GRIJALVA. bia to attend institutions of higher edu- parts of the West Bank, and for other pur- H.R. 1608: Mr. TOM DAVIS of Virginia. cation; to the Committee on Armed Services. poses; to the Committee on International H.R. 1615: Mr. PLATTS. By Mr. LATHAM (for himself, Mr. Relations. H.R. 1653: Mr. LAHOOD. NETHERCUTT, Mr. BROWN of Ohio, Mr. By Mr. MEEHAN (for himself, Mr. SIM- H.R. 1735: Mr. CROWLEY. MCDERMOTT, and Mr. LEACH): MONS, Mrs. TAUSCHER, Mr. BRADY of H.R. 1886: Mr. BELL, Mr. DEFAZIO, and Mr. H.R. 4001. A bill to authorize the Secretary Pennsylvania, Mr. COOPER, Mr. TURN- WAMP. of Agriculture to use the Agricultural Re- ER of Texas, Mr. SMITH of Wash- H.R. 1919: Mr. PLATTS. search Service to conduct research regarding ington, and Mr. ALEXANDER): H.R. 2032: Mr. HYDE. the likelihood and risks of the transfer be- H. Con. Res. 391. Concurrent resolution ex- H.R. 2060: Mr. STUPAK. tween animal species of the proteinaceous pressing the sense of Congress concerning H.R. 2151: Mr. LEACH, Mr. INSLEE, and Mrs. infectious particles, known as prions, that the well-being of members of the Armed MALONEY. cause transmissible spongiform Forces and calling on the Department of De- H.R. 2157: Mr. ACEVEDO-VILA and Mr. FORD. encephalopathies, and for other purposes; to fense to do its utmost to see that deployed H.R. 2197: Mr. LYNCH. the Committee on Agriculture. military personnel have the best force pro- H.R. 2256: Mr. TIERNEY. By Mr. MATHESON: tection equipment the Nation can make H.R. 2442: Ms. ROYBAL-ALLARD, Ms. H.R. 4002. A bill to amend the Elementary available, and for other purposes; to the CORRINE BROWN of Florida, Mr. PAYNE, Mr. and Secondary Education Act of 1965 with re- Committee on Armed Services. WU, Mr. HALL, Ms. CARSON of Indiana, and spect to teacher qualifications, and for other By Ms. WOOLSEY (for herself, Mr. Mr. ETHERIDGE. H.R. 2612: Mr. HOLDEN and Mr. GRIJALVA. purposes; to the Committee on Education CONYERS, Mr. EMANUEL, Mr. FARR, H.R. 2625: Mr. DEUTSCH and Mr. MORAN of and the Workforce. Mr. GRIJALVA, Mr. HINCHEY, Mr. Virginia. By Mr. GEORGE MILLER of California HOEFFEL, Ms. JACKSON-LEE of Texas, H.R. 2885: Mr. FORD. (for himself, Mr. DAVIS of Illinois, Ms. KILPATRICK, Ms. LEE, Mr. MAR- H.R. 2890: Mr. VITTER. Ms. CARSON of Indiana, Mr. RYAN of KEY, Mr. MCDERMOTT, Mr. OWENS, Ms. H.R. 2900: Mr. ISAKSON. Ohio, Mr. VAN HOLLEN, Mr. OWENS, BALDWIN, Mr. SANDERS, Ms. SOLIS, H.R. 2967: Mrs. NORTHUP. Mr. BISHOP of New York, Mr. HOLT, Mr. PAYNE, Mr. OLVER, Ms. CARSON of H.R. 2968: Mr. HERGER and Mr. JENKINS. Mr. KUCINICH, Mr. ANDREWS, Mr. Indiana, Ms. MCCARTHY of Missouri, H.R. 2978: Mr. PETERSON of Minnesota. STARK, and Mr. KILDEE): and Ms. MCCOLLUM): H.R. 3015: Mr. BASS. H.R. 4003. A bill to amend the Higher Edu- H. Con. Res. 392. Concurrent resolution H.R. 3063: Ms. CARSON of Indiana. cation Act of 1965 to improve the ability of calling for the adoption of a Sensible, Multi- H.R. 3069: Mr. ROGERS of Alabama, Mr. PE- foster care youths to attend and succeed in lateral American Response to Terrorism TERSON of Minnesota, and Mr. HALL. higher education; to the Committee on Edu- (‘‘SMART’’) Security Platform for the 21st H.R. 3103: Mr. ANDREWS. cation and the Workforce. Century; to the Committee on International H.R. 3104: Mr. HAYES and Mrs. MILLER of By Mr. PAUL: Relations. H.R. 4004. A bill to amend the Federal Michigan. By Mr. FROST: Food, Drug, and Cosmetic Act to establish a H.R. 3109: Mr. MORAN of Virginia, Ms. WAT- H. Res. 571. A resolution expressing the system independent of the Food and Drug SON, Mr. WATT, Mr. BEREUTER, Mr. sense of the House of Representatives that Administration for the review of health ADERHOLT, Mr. FATTAH, Mr. FROST, and Mr. an Aviation Maintenance Technician Day claims, to define health claims, and for other GREEN of Texas. should be established and expressing appre- purposes; to the Committee on Energy and H.R. 3113: Mr. DEMINT. ciation for Charles Edward Taylor’s invalu- Commerce. H.R. 3213: Mr. GUTKNECHT. able contributions to aviation; to the Com- By Mr. PETERSON of Minnesota (for H.R. 3215: Mr. FORBES, Mr. KNOLLENBERG, mittee on Transportation and Infrastruc- himself, Mr. REHBERG, Mr. TOM DAVIS Mr. JONES of North Carolina, Ms. GRANGER, ture. of Virginia, and Mr. KANJORSKI): Mr. COX, Mr. WICKER, Mr. TANCREDO, Mr. H.R. 4005. A bill to exempt certain animal f LEWIS of Kentucky, Mr. SHADEGG, Mr. SUL- identification information from disclosure LIVAN, Mr. COLE, Mr. HOSTETTLER, Mr. MAN- under the Freedom of Information Act; to PRIVATE BILLS AND ZULLO, Mr. ADERHOLT, Mr. SOUDER, Mr. the Committee on Government Reform, and RESOLUTIONS PENCE, and Mr. SHUSTER. in addition to the Committee on Agriculture, Under clause 3 of rule XII, H.R. 3243: Mr. MCHUGH and Ms. MCCOLLUM. for a period to be subsequently determined H.R. 3329: Mr. CULBERSON. Mr. NORWOOD introduced A bill (H.R. by the Speaker, in each case for consider- H.R. 3344: Mr. WEXLER. ation of such provisions as fall within the ju- 4009) for the relief of Thomas W. Sikes and H.R. 3416: Mr. SCHIFF. risdiction of the committee concerned. Wellington Trade, Inc., doing business as H.R. 3436: Mr. FROST and Mr. LIPINSKI. By Mr. POMEROY (for himself and Containerhouse; which was referred to the H.R. 3438: Mr. LANGEVIN and Mr. LEACH. Committee on the Judiciary. Mrs. CUBIN): H.R. 3441: Mr. SMITH of Washington, Mr. H.R. 4006. A bill to amend the Packers and f KUCINICH, Mr. PORTER, Mr. GREEN of Texas, Stockyards Act, 1921, to prohibit the use of Mrs. JONES of Ohio, Mrs. BIGGERT, Mr. BER- certain anti-competitive forward contracts; ADDITIONAL SPONSORS MAN, Mr. GEORGE MILLER of California, Mr. to the Committee on Agriculture. Under clause 7 of rule XII, sponsors SCHIFF, and Ms. KAPTUR. H.R. 3444: Mr. GEORGE MILLER of Cali- By Mr. ROYCE (for himself, Mr. were added to public bills and resolu- DREIER, Mr. PAUL, and Mr. ROHR- fornia. tions as follows: ABACHER): H.R. 3447: Ms. LEE, Mrs. CHRISTENSEN, Mr. H.R. 4007. A bill to amend the Internal Rev- H.R. 111: Mr. SHAYS. ENGEL, Ms. CORRINE BROWN of Florida, Mr. enue Code of 1986 to allow amounts in a H.R. 119: Mr. SMITH of Washington. FROST, and Mr. HINCHEY. health flexible spending arrangement that H.R. 173: Mr. KUCINICH. H.R. 3482: Mr. RAMSTAD. are unused during a plan year to be carried H.R. 284: Mr. SULLIVAN and Mr. LEWIS of H.R. 3550: Mr. KUCINICH. over to subsequent plan years or deposited California. H.R. 3593: Ms. SLAUGHTER, Mrs. DAVIS of into certain health or retirement plans; to H.R. 375: Ms. KAPTUR and Mr. CUMMINGS. California, Mr. MCDERMOTT, Mr. FATTAH, Mr. the Committee on Ways and Means. H.R. 391: Mr. STENHOLM. KUCINICH, Ms. WOOLSEY, and Mr. CLAY. By Mr. SHAYS (for himself and Mr. H.R. 583: Mr. NEUGEBAUER and Mr. GOSS. H.R. 3598: Mr. QUINN, Mr. HOEKSTRA, Mr. RUPPERSBERGER): H.R. 584: Mr. LAHOOD. DINGELL, Mr. OBERSTAR, Mr. MICHAUD, Mr. H.R. 4008. A bill to increase the penalties H.R. 727: Mr. SHAYS, Mr. ALLEN, Ms. LATOURETTE, Mr. MANZULLO, Mr. LIPINSKI, for terrorism against mass transportation DELAURO, and Mr. PALLONE. and Mr. KNOLLENBERG.

VerDate jul 14 2003 03:25 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00092 Fmt 4636 Sfmt 0634 E:\CR\FM\L18MR7.100 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — HOUSE H1323 H.R. 3643: Mrs. LOWEY. H.R. 3889: Mr. COBLE. DELETIONS OF SPONSORS FROM H.R. 3678: Mrs. JOHNSON of Connecticut. H.R. 3901: Mr. RENZI, Mr. LAHOOD, and Mr. PUBLIC BILLS AND RESOLUTIONS H.R. 3704: Ms. GINNY BROWN-WAITE of Flor- CASE. ida. H.R. 3920: Mr. SAM JOHNSON of Texas, Mr. Under clause 7 of rule XII, sponsors H.R. 3716: Mr. LIPINSKI, Mrs. MYRICK, and FEENEY, Mr. PENCE, Mr. SMITH of Michigan, were deleted from public bills and reso- Mr. REGULA. Mr. HERGER, Mr. DUNCAN, Mr. MANZULLO, lutions as follows: H.R. 3719: Mr. ROTHMAN, Mr. DELAHUNT, and Mr. JONES of North Carolina. and Mr. GONZALEZ. H.R. 3800: Mr. LINDER. H.R. 3925: Mr. MILLER of Florida and Mrs. H.R. 3729: Mr. MCDERMOTT, Mr. GRIJALVA, BLACKBURN. Mr. BROWN of Ohio, Mr. CARDOZA, and Mr. f WEXLER. H.R. 3974: Mr. FRANK of Massachusetts. H.R. 3736: Mr. ENGLISH and Mr. GREEN of H.R. 3978: Mr. LANTOS and Mr. ROHR- Wisconsin. ABACHER. DISCHARGE PETITIONS— H.R. 3763: Mr. CANNON, Mr. POMEROY, Ms. H. Con. Res. 218: Mr. RYAN of Wisconsin. ADDITIONS OR DELETIONS MCCARTHY of Missouri, Mr. TOOMEY, and Mr. H. Con. Res. 301: Mr. MCDERMOTT, Mr. SNY- GARRETT of New Jersey. DER, and Mr. BAIRD. The following Members added their H.R. 3771: Mr. PALLONE. H. Con. Res. 332: Mr. POMEROY, Mr. PRICE names to the following discharge peti- H.R. 3773: Mr. WILSON of South Carolina, of North Carolina, Mr. BROWN of South Caro- tions: Mr. HAYWORTH, and Mr. TIBERI. lina, Mr. HASTINGS of Florida, Mr. VAN Petition 5 by Mr. HILL on House Resolu- H.R. 3777: Mr. BEAUPREZ. HOLLEN, Mr. KING of Iowa, and Ms. LINDA T. H.R. 3778: Mr. MURPHY, Mr. GERLACH, Mr. tion 534: Max Sandlin, Mike Thompson, SANCHEZ of California. KANJORSKI, Mr. GREENWOOD, Mr. DOYLE, Mr. Peter Deutsch, Tom Udall, David Scott, H. Con. Res. 363: Mr. EVANS and Mr. BAIRD. BRADY of Pennsylvania, Mr. FATTAH, Mr. Allen Boyd, George Miller, Jim Davis, Elijah H. Con. Res. 366: Mr. COSTELLO, Mr. ROSS, MURTHA, Mr. PITTS, Mr. PLATTS, and Mr. E. Cummings, Earl Pomeroy, Corrine Brown, Mr. SANDERS, Mr. BOSWELL, Mr. ANDREWS, HOEFFEL. Diana DeGette, Ike Skelton, Nydia M. and Mr. MARSHALL. H.R. 3784: Mr. TERRY, Mr. DEMINT, Mrs. JO Velaquez, Maurice D. Hinchey, Chris Bell, ANN DAVIS of Virginia, and Mr. WILSON of H. Con. Res. 369: Mr. DEFAZIO, Mr. BROWN Harold E. Ford, Jr., Sheila Jackson-Lee, South Carolina. of Ohio, Mr. WATT, Mr. FILNER, Mr. STARK, Stephanie Tubbs Jones, Frank Pallone, Jr., H.R. 3799: Mr. PEARCE and Mr. DEAL of Ms. SOLIS, Mr. SHERMAN, Mr. STRICKLAND, Ciro D. Rodriguez, Sam Farr, Lucille Roybal- Georgia. Mr. OWENS, Mr. ANDREWS, Mr. HINCHEY, and Allard, Neil Abercrombie, Mark Udall, An- H.R. 3801: Mr. LINDER and Mr. WELLER. Ms. SCHAKOWSKY. thony D. Weiner, James P. Moran, Howard L. H.R. 3803: Mr. FROST and Mr. ACEVEDO- H. Con. Res. 371: Mr. FOSSELLA, Mr. SUL- Berman, Chaka Fattah, Kendrick B. Meek, VILA. LIVAN, Mr. PALLONE, Mr. BURGESS, Mr. Bart Gordon, Edolphus Towns, Xavier Becer- H.R. 3810: Mr. MCNULTY. SHAYS, Mr. SWEENEY, Ms. ROS-LEHTINEN, and ra, Luis V. Gutierrez, Gene Taylor, and Rob- H.R. 3818: Mr. FROST, Mr. WOLF, Mr. CAR- Mr. ROGERS of Kentucky. ert E. (Bud) Cramer, Jr. SON of Oklahoma, Mr. EVANS, and Mr. LEACH. H. Con. Res. 374: Mr. MEEK of Florida, Mrs. Petition 6 by Mr. TURNER of Texas on H.R. 3854: Ms. GINNY BROWN-WAITE of Flor- MILLER of Michigan, Mr. MCHUGH, and Mr. House Resolution 532: Max Sandlin, Mike ida. MCKEON. Thompson, Peter Deutsch, Tom Udall, Brad H.R. 3858: Mr. BLUMENAUER, Mr. SABO, Mr. H. Con. Res. 378: Mrs. JO ANN DAVIS of Vir- Carson, Elijah E. Cummings, Corrine Brown, WELLER, Ms. SOLIS, Mr. GOODE, Mr. KIRK, Mr. ginia. Diana DeGette, Maurice D. Hinchey, Chris TERRY, Mr. BOYD, Mr. KUCINICH, Mrs. H. Con. Res. 380: Mr. SCOTT of Georgia, Mr. Bell, Harold E. Ford, Jr., Sheila Jackson- BLACKBURN, Mr. TANCREDO, Mr. BACA, Mr. GRIJALVA, Mr. RANGEL, Ms. MCCARTHY of Lee, Ciro D. Rodriguez, Anthony D. Weiner, WEXLER, Mr. GORDON, Mr. SPRATT, Mr. COLE, Missouri, Mrs. CHRISTENSEN, Mr. FORD, Mr. Kendrick B. Meek, Luis V. Gutierrez, Ed Mr. HOEKSTRA, Mr. MCNULTY, Mr. SHUSTER, SANDERS, Mr. NEAL of Massachusetts, Mr. Case, Thomas E. Allen, Joseph M. Hoeffel, Mr. CULBERSON, Mr. FARR, Ms. MAJETTE, Mr. GORDON, Ms. WATSON, Ms. MILLENDER- Baron P. Hill, Lincoln Davis, Robert E. (Bud) LARSEN of Washington, and Mr. NEUGEBAUER. MCDONALD, Mr. KUCINICH, Mrs. JONES of H.R. 3866: Mr. COBLE and Mr. STUPAK. Cramer, Jr., Juanita Millender-McDonald, Ohio, and Mr. LANGEVIN. H.R. 3873: Mr. OSBORNE, Ms. MAJETTE, Mr. and Albert Russell Wynn. H. Con. Res. 387: Mr. ALEXANDER, Mr. HASTINGS of Washington, Mr. WEXLER, Ms. The following Member’s name was BOOZMAN, and Mr. ROSS. WOOLSEY, Mr. FILNER, and Mr. GREENWOOD. withdrawn from the following dis- H.R. 3881: Ms. LOFGREN, Mr. MEEHAN, Mr. H. Res. 402: Mr. ROGERS of Kentucky. charge petition: FRANK of Massachusetts, Mr. BROWN of Ohio, H. Res. 541: Mr. WOLF and Mr. MCNULTY. Mr. BLUMENAUER, Mr. MICHAUD, and Mr. H. Res. 565: Mr. WEXLER. Petition 6 by Mr. TURNER of Texas on CROWLEY. H. Res. 569: Mr. HOLT and Mr. BAIRD. House Resolution 532: Lucille Roybal-Allard.

VerDate jul 14 2003 03:25 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00093 Fmt 4636 Sfmt 0634 E:\CR\FM\A18MR7.034 H18PT1 March 18, 2004 CONGRESSIONAL RECORD — Extensions of Remarks E403 EXTENSIONS OF REMARKS

TRIBUTE TO MICHAEL L. STERN the entire 18th Congressional District of Ohio to believe it could happen again. This time, in thanking the men and women of the 1001st the problems will most likely be with the Quartermaster Company for their service to electronic voting that has replaced chad-pro- HON. J. DENNIS HASTERT ducing punch cards. Some counties, includ- OF ILLINOIS our country. ing Bay County, use paper ballots that are IN THE HOUSE OF REPRESENTATIVES f fed into an optical scanner, so a recount is Thursday, March 18, 2004 CONGRATULATING THE SAUK RAP- possible if there are questions. But 15 Florida counties, including Palm Beach, home of the Mr. HASTERT. Mr. Speaker, I would like to IDS-RICE STORM ON THEIR VIC- infamous ‘‘butterfly ballot,’’ have adopted take this opportunity to express my personal TORY IN THE MINNESOTA CLASS touch-screen machines that do not produce a appreciation, and the appreciation of the A BOYS SWIMMING AND DIVING paper record. If anything goes wrong in these United States House of Representatives, for STATE TOURNAMENT counties in November, we will be in bad the service of Michael L. Stern to the House shape. as Senior Counsel in the Office of General Florida’s official line is that its machines HON. MARK R. KENNEDY are so carefully tested, nothing can go Counsel. After more than 8 years in the Office, OF MINNESOTA wrong. But things already have gone wrong. Mr. Stern will be moving to the other side of IN THE HOUSE OF REPRESENTATIVES In a January election in Palm Beach and the Capitol to become the Deputy Staff Direc- Thursday, March 18, 2004 Broward Counties, the victory margin was 12 tor for the Senate Committee on Govern- votes, but the machines recorded more than mental Affairs. Mr. KENNEDY of Minnesota. Mr. Speaker, I 130 blank ballots. It is simply not believable Mr. Stern has provided invaluable assist- rise today to congratulate the Sauk Rapids- that 130 people showed up to cast a nonvote, ance and advice to the House and its Mem- Rice Storm on their victory in the Minnesota in an election with only one race on the bal- bers, Officers, and Committees in connection Class A Boys Swimming and Diving State lot. The runner-up wanted a recount, but with a broad range of legal matters. Many Tournament. This is the first State title for the since the machines do not produce a paper record, there was nothing to recount. House Committees and Subcommittees, in Storm after finishing second last season. Coached by Tom Swanson, the Storm nar- In 2002, in the primary race for governor particular, have come to rely on his expertise between Janet Reno and Bill McBride, elec- and guidance in connection with their inves- rowly defeated Hutchinson, 237–233, by plac- tronic voting problems were so widespread tigative and oversight activities. Mr. Stern has ing first in the last event of the meet, the 400 they cast doubt on the outcome. Many brought his litigation skills to bear both in de- freestyle relay. Two seniors on the relay team Miami-Dade County votes were not counted fending Members and other House employees had been involved in the swimming program on election night because machines were and entities in judicial proceedings at the trial since the seventh grade—Jason Timmer and shut down improperly. One precinct with Connor Ziegler. Timmer also placed first in the over 1,000 eligible voters recorded no votes, and appellate levels, and in responding to despite a 33 percent turnout statewide. Elec- deposition, trial, grand jury, and administrative 50 and 100 freestyle, posting All-American times in both events and setting a state Class tion workers spent days hunting for lost subpoenas. Over the years, Mr. Stern has votes, while Floridians waited, in an uncom- also played a significant role in safeguarding A record in the 100. fortable replay of 2000, to see whether Mr. the legal and institutional interests of the Mr. Speaker, I congratulate the students, McBride’s victory margin, which had dwin- House in its interactions with other govern- coaches and fans from Sauk Rapids-Rice dled to less than 10,000, would hold up. mental entities. High School on their championship season. This past Tuesday, even though turnout I know that Mr. Stern will serve the Senate It’s a great tribute to their hard work, dedica- was minimal, there were problems. Voters tion and overall team effort and I know every- were wrongly given computer cards that let with the same level of distinction with which them vote only on local issues, not in the he served the House. On behalf of the entire one in Minnesota is proud of their accomplish- ments. presidential primary. Machines did not work. House of Representatives, I thank him for his And there were, no doubt, other mishaps many years of service and extend to him our f that did not come to light because of the very best wishes for his continued success. FLORIDA AS THE NEXT FLORIDA stunning lack of transparency around voting f in the State. When a Times editorial writer dropped in on one Palm Beach precinct A PROCLAMATION THANKING THE HON. CORRINE BROWN where there were reports of malfunctioning 1001ST QUARTERMASTER COM- OF FLORIDA machines, county officials called the police PANY FOR THEIR SERVICE TO IN THE HOUSE OF REPRESENTATIVES to remove him. OUR COUNTRY The biggest danger of electronic voting, Thursday, March 18, 2004 however, cannot be seen from the outside. Ms. CORRINE BROWN of Florida. Mr. Computer scientists warn that votes, and HON. ROBERT W. NEY Speaker, I submit the following for the whole elections, can be stolen by rigging the code that runs the machines. The only de- OF OHIO RECORD. IN THE HOUSE OF REPRESENTATIVES fense is a paper record of every vote cast, a FLORIDA AS THE NEXT FLORIDA ‘‘voter-verified paper trail,’’ which can be Thursday, March 18, 2004 [From the New York Times, Mar. 14, 2004] counted if the machines’ tallies are suspect. Mr. NEY. Mr. Speaker: As Floridians went to the polls last Tues- Given its history, Florida should be a leader Whereas, the men and women of the day, Glenda Hood, Katherine Harris’s suc- in requiring paper trails. But election offi- 1001st Quartermaster Company of the Army cessor as secretary of state, assured the Na- cials, including Theresa LePore, the Palm tion that Florida’s voting system would not Reserves are returning home after serving Beach County elections supervisor who was break down this year the way it did in 2000. responsible for the butterfly ballot, have re- their country in Iraq; and Florida now has ‘‘the very best’’ technology fused to put them in place. Whereas, the men and women of the available, she declared on CNN. ‘‘And I do Last week, Representative Robert Wexler, 1001st Quartermaster Company are to be feel that it’s a great disservice to create the a Florida Democrat, filed a Federal lawsuit commended for their honor and bravery that feeling that there’s a problem when there is to require paper trails. He relies on the Su- they displayed while serving our nation in this not.’’ Hours later, results in Bay County preme Court’s holding in Bush v. Gore that time of war; and showed that with more than 60 percent of equal protection requires States to use com- Whereas, the men and women of the precincts reporting, Richard Gephardt, who parable recount methods from county to 1001st Quartermaster Company have dem- long before had pulled out of the presidential county. Florida law currently requires a race, was beating John Kerry by two to one. hand recount in close races. That is possible onstrated a commitment to meet challenges ‘‘I’m devastated,’’ the county’s top election in most counties, but the 15 that use elec- with enthusiasm, confidence, and outstanding official said, promising a recount of his tronic voting machines do not produce paper service; county’s 19,000 votes. records that can be recounted. Under the Therefore, I join with your family and Four years after Florida made a mockery logic of Bush v. Gore, Representative Wexler friends, the residents of the Ohio Valley and of American elections, there is every reason is right.

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

VerDate jul 14 2003 04:06 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00001 Fmt 0626 Sfmt 0634 E:\CR\FM\A18MR8.001 E18PT1 E404 CONGRESSIONAL RECORD — Extensions of Remarks March 18, 2004 After the 2000 mess, Americans were as- A PROCLAMATION IN MEMORY OF State of Minnesota is proud of their accom- sured they would not have to live through JOSEPH C. HEINLEIN JR. plishments. such a flawed election again. But Florida has put in place a system, electronic voting f without a paper trail, that threatens once HON. ROBERT W. NEY IRAQ INVASION ANNIVERSARY, more to produce an outcome that cannot be OF OHIO BRAC, AND HAITI trusted. There is still time before the No- IN THE HOUSE OF REPRESENTATIVES vember vote to put printers in place in the 15 Florida counties that use touch screens. As Thursday, March 18, 2004 HON. CORRINE BROWN we learned 4 years ago, once the election has Mr. NEY. Mr. Speaker, I hereby offer my OF FLORIDA been held on bad equipment, it is too late to heartfelt condolences to the family and friends IN THE HOUSE OF REPRESENTATIVES make it right. of Joseph C. Heinlein Jr. upon the death of Thursday, March 18, 2004 this outstanding person. f Joseph C. Heinlein Jr. was born January 26, Ms. CORRINE BROWN of Florida. Mr. HONORING JUDGE NANCY DAVIS 1909 in Bridgeport, Ohio. He was a practicing Speaker, first of all I want to commend our STARK ON HER INDUCTION TO attorney for over 65 years and was recognized brave troops who proudly serve our great Na- THE SUPERIOR COURT OF CALI- by the Ohio House of Representatives for his tion and risk their lives to preserve our free- FORNIA unwavering dedication to the profession of dom. I praise their courageous efforts to pro- law. A former U.S. Navy Lieutenant in World tect our country, and I am with them 100 per- War II, Mr. Heinlein was also a member of the cent. They are the best of the best. And I can HON. FORTNEY PETE STARK truly say every Member of this House, this OF CALIFORNIA Kirkwood Presbyterian Church where he served in various official capacities. body, supports them 100 percent. What I do IN THE HOUSE OF REPRESENTATIVES Mr. Heinlein will certainly be remembered by not support is this misleading Bush administra- Thursday, March 18, 2004 all those who knew him for his personal sac- tion and this House that follows them like Mr. STARK. Mr. Speaker, I rise to congratu- rifices of time and energy to his family, friends, sheep. Let me repeat that. What I do not sup- late and honor Nancy Davis Stark on her in- and community. The understanding and kind- port is this misleading Bush administration and duction this past January to the State of Cali- ness to which he gave to others will stand as this House, the people’s House, that follows fornia Superior Court for Contra Costa County. a monument to a truly fine person. His life and them like sheep. Judge Davis Stark is a highly competent love gave joy to all who knew him. A new report has been released that shows and capable addition to the bench having I offer this token of profound sympathy to that George Bush, DICK CHENEY, Donald worked tirelessly for the past 2 decades as an the family and friends of Joseph C. Heinlein Rumsfeld, and Condoleezza Rice made 237 accomplished Deputy District Attorney for Ala- Jr. misleading statements about the threat posed by Iraq in 125 public appearances. Eighty-four meda County. In this position, Judge Davis f Stark served as Chief of the Sexually Violent of those statements misled the American peo- CONGRATULATING THE CENTEN- ple about Iraq’s chemical and biological weap- Predator Unit, was on the felony trial staff, and NIAL COUGARS, OF CIRCLE held several supervisory positions and assign- ons. PINES, MINNESOTA, ON THEIR Mr. Speaker, I was horrified last year to ments. VICTORY IN THE MINNESOTA Judge Davis Stark has been a member of learn that 44,000 of our troops were sent out STATE HIGH SCHOOL CLASS AA to battle without proper armor. Forty-four thou- the California Bar since 1982, the same year BOYS HOCKEY TOURNAMENT she earned her Juris Doctor from the Univer- sand. How can we ask young men and sity of California’s Hastings College of Law. women to trust us when we make decisions She received her bachelor-of-arts degree from HON. MARK R. KENNEDY that involve life and death and then not outfit California State University at Hayward. OF MINNESOTA them with the best that they need to save their The daughter of Eugene and Amelia Davis, IN THE HOUSE OF REPRESENTATIVES lives. We deployed our young men and women to Iraq with Humvees that lacked ar- Judge Davis Stark grew up in the Bay Area Thursday, March 18, 2004 having spent her childhood in Oakland and mored protection and bulletproof windows. Mr. KENNEDY of Minnesota. Mr. Speaker, I I personally went to Walter Reed where six Castro Valley. For the past 14 years, she has rise today to congratulate the Centennial Cou- troops had lost their legs while riding in been a resident of Alamo where she is a com- gars, of Circle Pines, Minnesota, on their vic- Humvees. If they had been riding in the right mitted volunteer in her community, most nota- tory in the Minnesota State High School Class type of vehicles, this may not have happened. bly as the creator and one-time manager of a AA Boys Hockey Tournament. The Cougars This use of Humvees in Iraq was not what children’s string ensemble known as the captured their first title in their first state ap- they were made for. We need to get our Alamo Ensemble Players. pearance. Centennial draws students from troops the equipment they need now. Perhaps most important to me, Judge Davis Lino Lakes, Circle Pines, Lexington, And, Mr. President, you need to spend more Stark—Nancy as I call her—is the mother of Centerville and Blaine. time planning for the safety of our troops and two beautiful daughters—my grand- The Cougars, ranked first in the state, their families in your war efforts and less time daughters—Gretchen and Claire and devoted ended the season with an impressive 30–1 fundraising and cutting taxes for the rich coun- wife of 18 years to my son Jeff. I am grateful mark, defeating Moorhead 1–0, on a goal by try club friends of yours. to have Nancy as my daughter-in-law. I am Mike Montgomery, for the championship. There are two or three other points that I even more honored that her years of hard Goalie Greg Stutz recorded three shut outs, a want to make. One, many of my constituents work and service to the public have earned tournament record, for the Cougars. Addition- approach me about BRACC and the base her a rightful place on the Superior Court. ally, Greg Flynn received the Herb Brooks closing amendment that we will be doing in Mr. Speaker, I know Nancy’s sound intellect, award and Tom Gorowsky was named the 2005. They are telling me we are looking for- strong sense of fairness, and demonstrated 2004 Mr. Hockey of Minnesota. Centennial is ward to your fighting to make sure our bases commitment to the law and justice will be a coached by Erik Aus. are not closed in our area. And my question welcome addition to the bench. I wish her well In Minnesota, we are justifiably proud of our to them is, why do you think that this Bush ad- in this pursuit. hockey tradition. The Minnesota State Hockey ministration insisted, insisted, after the House f Tournament is one of the preeminent hockey and Senate both voted down and said we tournaments in the country. Featured in Sports should not have a base closure, or BRACC PERSONAL EXPLANATION Illustrated, the tournament draws larger and scenario, during this time of war, why do you larger crowds every year. In fact, the tour- think this administration insisted that we go HON. DENNIS A. CARDOZA nament this year set an all-time attendance through this? It is destabilizing the families OF CALIFORNIA record—120,092 people watched the Class A and the communities during a time of war. IN THE HOUSE OF REPRESENTATIVES and AA hockey tournaments. I have heard that someone from the other Mr. Speaker, I congratulate the students, body indicated that if they were elected that is Thursday, March 18, 2004 coaches and fans from Centennial High one of the first things they would scrap. Mr. CARDOZA. Mr. Speaker, on rollcall No. School on their championship season. It’s a I also want to comment on the 2000 elec- 52 and 53, had I been present, I would have great tribute to their hard work, dedication and tion, which I cannot get past because the elec- voted ‘‘no.’’ overall team effort. I know that everyone in the tion determined who is in charge, and certainly

VerDate jul 14 2003 04:06 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00002 Fmt 0626 Sfmt 9920 E:\CR\FM\A18MR8.005 E18PT1 March 18, 2004 CONGRESSIONAL RECORD — Extensions of Remarks E405 I do not think we are headed in the right direc- stated that the enforceability of this third-party taurants on the boulevard. Don’t miss gabili tion. I am going to submit for the RECORD an pledge is a matter outside of the Community pilau, Afghanistan’s national dish of baked article that was in The New York Times last Reinvestment Act, and to this day, Hawaii has brown rice with lamb and raisins; aushak, ravioli stuffed with leeks and spices; or the week indicating that Florida could be Florida been left without redress. How are we to trust burani kadu, soft pumpkin sauteed with gar- again. In other words, the problems that we that Florida will receive its share of Commu- lic and cardamom. Across the street, carni- experienced in the 2000 election have not nity Reinvestment Act money when Bank of vores should check out the De Afghanan been corrected. It is a disservice to the people America could not keep its word to Hawaii? Kabob House, where every plate features that we serve that we do not straighten out the The Federal Reserve noted in its Order Ap- skewered meat. problems with the elections, not just in Florida proving the Merger of Bank Holding Compa- f but all over this country; and we have not nies, that there were requests for state-spe- properly funded the program. cific goals for certain loan products and pro- PERSONAL EXPLANATION Also, let me mention the coup d’etat that grams, but that it viewed such third-party took place a couple of weeks ago in Haiti. It agreements as outside of the Community Re- HON. DENNIS A. CARDOZA is very unfortunate that this Bush administra- investment Act. I wholeheartedly disagree. OF CALIFORNIA tion has chosen to go in and take out a duly The Board focuses on existing Community Re- IN THE HOUSE OF REPRESENTATIVES elected president. Just take him out. Just take investment Act performance rather than prom- Thursday, March 18, 2004 him out. The poorest country in the western ises of future activities, and anyhow, what type hemisphere. We have to make sure that the of organization does not have a plan for the Mr. CARDOZA. Mr. Speaker on rollcall Nos. Haitian people get the assistance that they future? My office was told that Bank of Amer- 54, 55, 56, and 57, had I been present, I need from the super Bush administration, after ica has no plan for future Community Rein- would have voted ‘‘yes.’’ going in and taking out the duly elected presi- vestment activity in Florida or how much f dent. money would be spent in Florida—but not to A PROCLAMATION HONORING JEFF And I would also like to comment on the re- worry. I think that this is a poor way to do FREEMAN AND NICOLE PALYA cently announced bank merger that the Fed- business. Noting the experience that Hawaii eral Reserve approved of the Bank of America had with Bank of America, I am wary of trust- HON. ROBERT W. NEY Corporation and FleetBoston Financial Cor- ing that Bank of America has the needs of mi- OF OHIO poration merger. nority communities in Florida at heart. IN THE HOUSE OF REPRESENTATIVES I am concerned about the recent Bank of f America-FleetBoston bank merger announced Thursday, March 18, 2004 today, particularly since it went through with HONORING THE AFGHAN AMER- ICAN CUISINE OF FREMONT, Mr. NEY. Mr. Speaker: very little public input. What concerns me even Whereas, Jeff Freeman and Nicole Palya CALIFORNIA more is that although Bank of America has have decided to dedicate their lives to each made significant Community Reinvestment other; and commitments to other states, I am dis- HON. FORTNEY PETE STARK Whereas, Jeff and Nicole have shown the appointed that Bank of America did not ensure OF CALIFORNIA love and commitment necessary to live a long the state I represent, Florida, that it too will re- IN THE HOUSE OF REPRESENTATIVES and beautiful life together; and ceive its fair share of resources for minority Thursday, March 18, 2004 Whereas, Jeff and Nicole have chosen to communities. share their special day with friends and family; On February 16, in the City Hall of Orlando, Mr. STARK. Mr. Speaker, today, I rise to Therefore, I join with the Members of Con- Florida, I hosted a Public Hearing so that submit to the CONGRESSIONAL RECORD an arti- gress and their staff in congratulating Jeff Bank of America could better understand its cle that appears in the current issue of VIA Freeman and Nicole Palya on the occasion of responsibility to make a difference in Florida’s Magazine, celebrating the culinary contribu- their marriage. African-American, Asian and Hispanic commu- tions of several Afghan American res- f nities. Many minority groups and activists from taurateurs in my city of Fremont, California. across Florida attended this hearing, along These establishments deserve praise, not CONGRATULATING THE ST. MI- with local elected officials of Florida, and Con- only for satisfying many appetites with delec- CHAEL-ALBERTVILLE KNIGHTS gressman EDOLPHUS TOWNS of New York. The table food, but for enriching our community IN THEIR VICTORY IN THE MIN- groups testified that significant Community Re- with their enterprise and important cultural NESOTA CLASS AA STATE WRES- investment dollars were necessary for home gifts that make Fremont a better place to live. TLING TOURNAMENT loans for minorities, the development of afford- I am honored to represent the largest Af- able housing, small business loans for minori- ghan American community in the nation and HON. MARK R. KENNEDY gladly invite my colleagues to come to Cali- ties, procurement opportunities for minority OF MINNESOTA fornia to enjoy, as the author of this article ex- businesses, community lending for minorities, IN THE HOUSE OF REPRESENTATIVES and community investment for industrial, com- claims, ‘‘some of the best Afghan food and mercial and social facilities in minority commu- goods this side of Kabul.’’ I couldn’t agree Thursday, March 18, 2004 nities. The Bank of America sent representa- more myself. Mr. KENNEDY of Minnesota. Mr. Speaker, I tives to this hearing, but the pleas from the mi- [From VIA Magazine, Mar.–Apr. 2004] rise today to congratulate the St. Michael- nority communities in Florida fell on deaf ears, LITTLE AFGHANISTAN: DISCOVER THE FLAVORS Albertville Knights on their victory in the Min- and Florida was never promised a specific dol- OF KABUL IN THE BAY AREA nesota Class AA State Wrestling Tournament. lar amount for Community Reinvestment. Bank (By April Thompson) This is the Knights’ seventh consecutive and of America has shown the minority commu- Handmade Afghan ravioli and rugs in 14th overall state tournament appearance, and nities of New England and California great re- sleepy, suburban Fremont? The Northern their third championship. spect, but refuses to do the same for our Flor- California city is home to the nation’s larg- Coached by Gregg Greeno, the Knights fin- ida minority communities. It is imperative that est Afghan American community and some ished a perfect 32–0 this season, winning all the leadership of Bank of America meet imme- of the best Afghan food and goods this side of of their meets by at least 10 points. This was Kabul. Afghanistan’s cuisine has been influ- diately with minority leaders at a general enced by Russia, India, China, and Persia, truly a team effort; they rose to the challenge forum to discuss the specifies of a Bank of and its dishes star the rich, sweet, and tart in big meets and avoided injuries during the America commitment for Florida. tastes of cardamom, cilantro, rose water, season. I am concerned about what occurred in and homemade yogurt. Individually, the Knights qualified 12 of a 1994, when Bank of America publicly an- The storefronts on Fremont Boulevard possible 14 individuals for the state tour- nounced its plans to initiate certain lending may look plain, but inside their shelves are nament. Two wrestlers, 112-pounder Mike programs in the state of Hawaii for Native Ha- stocked with pomegranate juice, sugared Thorn and 160-pounder Chas Betts, won indi- waiians on Hawaiian Home Lands. The Bank chickpeas, apple tobacco, and other goods vidual championships and six others finished of America publicly called these programs imported from Bombay, Cairo, and numerous points between. in the top six. ‘‘commitments’’ but did not pledge these com- At the Pamir Food Mart, you can buy long Mr. Speaker, I congratulate the students, mitments to the Federal Reserve Board, nor loaves of Afghan naan warm from the oven. coaches and fans from St. Michael-Albertville did Bank of America fulfill its public commit- Bring a hearty appetite and sense of adven- on their championship season. It’s a great trib- ments to Hawaii. The Federal Reserve has ture to Salang Pass, one of four Afghan res- ute to their hard work, dedication and overall

VerDate jul 14 2003 04:06 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00003 Fmt 0626 Sfmt 9920 E:\CR\FM\A18MR8.010 E18PT1 E406 CONGRESSIONAL RECORD — Extensions of Remarks March 18, 2004 team effort and I know everyone in Minnesota dam could use his own people as human this problem. The Halloween Safety Act of is proud of their accomplishments. shields; while the fleet of the United States 2004 extends daylight saving time each year f Navy sat ready to launch air and Tomahawk until the first Sunday in November, instead of strikes to support them. If there is one thing the last Sunday in October, thereby ensuring RELATING TO THE LIBERATION OF that Operation Iraqi Freedom has dem- that Halloween falls during daylight saving THE IRAQI PEOPLE AND THE onstrated to the American people, it is that time each year. VALIANT SERVICE OF THE there is no longer a dividing line between ac- I am proud to acknowledge that this safety UNITED STATES ARMED FORCES tive and reserve component troops in armed problem has already been partly addressed in AND COALITION FORCES conflict. The men and women of the Florida Bergen County, New Jersey. Fair Lawn’s be- National Guard were trained and ready to de- loved police officer, the late Mary Ann Collura, SPEECH OF ploy within 24 hours when asked by their implemented a special ‘‘glow stick’’ program HON. SANFORD D. BISHOP, JR. Commander in Chief. These citizen soldiers so that young children would be adequately lit OF GEORGIA left higher paying jobs and loving families to and visible as they walk the streets trick-or- IN THE HOUSE OF REPRESENTATIVES fight in an inhospitable and rough environment treating. Since her untimely death in the line of duty last April, the glow stick program has Wednesday, March 17, 2004 with their active duty counterparts. It was this dedication and courage that defeated Saddam gone countywide in Bergen County, thanks to Mr. BISHOP of Georgia. Mr. Speaker, I rise and his regime. It was this dedication and the initiative of County Executive Dennis today to express my strong support, and most courage that rebuilt schools and hospitals so McNerney and his staff, Bergen County Pros- heartfelt gratitude to our troops and their fami- the people of Iraq could receive these basic ecutor John Molinelli, and the Board of Cho- lies. human services for the first time in three dec- sen Freeholders. It is often said that ‘‘freedom is not free,’’ ades. By modestly changing the date that daylight Mr. Speaker. I couldn’t agree more. The price As a member of the House Appropriations saving time ends and that standard time be- of freedom—the freedom that we enjoy here in Subcommittee on Military Construction, I vis- gins, children in Bergen County and across the United States and freedom that we have ited Iraq in August of last year. On this trip, I the country would be safer and would have helped preserve or create—is great. The cost had the opportunity to sit down and talk with extended hours of daylight in which to partici- of freedom is measured in dollars, in time lost both active and reserve members of the Army, pate in this holiday. I commend Freeholders away from family and friends, and it is meas- Marines Corps, and Air Force about their ex- Huttle and Ganz for sponsoring a resolution ured in human lives lost on distant battlefields periences. All of these men and women were adopted by the Bergen County Board of Cho- thousands of miles away. proud of the mission of the United States and sen Freeholders urging the change of daylight Wherever you serve, in Iraq, in Afghanistan, were eager to tell stories of grateful Iraqis. saving time, and I thank them for their commit- and around the world, you rise to answer the I recently had the pleasure of meeting up ment to the safety of the children of New Jer- call for freedom without reservation. again with an officer who I had first met on my sey and our Nation. I urge prompt consider- So today I rise, in support of our troops who trip to Iraq. When I asked him how he was ation of the Halloween Safety Act of 2004. continue to help ensure peace and freedom doing, he told me the sad story of how he had H.R. ll around the world, and to the families of those just visited one of his soldiers who had lost Be it enacted by the Senate and House of Rep- who have made the ultimate sacrifice in pur- resentatives of the United States of America in both of his legs in Iraq. Even with this grue- Congress assembled, suit of freedom. some memory, he told me that both he and SECTION 1. SHORT TITLE. We are grateful and humbled by your capa- his soldiers would do it all over again. This of- This Act may be cited as the ‘‘Halloween bilities, your courage, and your commitment to ficer’s sentiment demonstrates the dedication Safety Act of 2004’’. the great cause of freedom. You are our he- and courage of our armed forces and it is this SEC. 2. DAYLIGHT SAVING TIME EXTENDED TO roes and our greatest hope for the future. reason I rise to speak in support of H.R. 557. FIRST WEEK IN NOVEMBER. (a) IN GENERAL.—Section 3(a) of the Uni- Thank you for all that you do. God bless the f United States of America. form Time Act of 1966 (15 U.S.C. 260a(a)) is HALLOWEEN SAFETY ACT OF 2004 amended by striking ‘‘last Sunday of Octo- f ber’’ and inserting ‘‘first Sunday of Novem- RELATING TO THE LIBERATION OF ber’’. THE IRAQI PEOPLE AND THE HON. STEVEN R. ROTHMAN (b) EFFECT ON EXISTING STATE ELECTIONS.— OF NEW JERSEY Any law in effect on the date of the enact- VALIANT SERVICE OF THE IN THE HOUSE OF REPRESENTATIVES ment of this Act which is— UNITED STATES ARMED FORCES (1) adopted pursuant to section 3(a)(2) of AND COALITION FORCES Thursday, March 18, 2004 the Uniform Time Act of 1966 by a State with Mr. ROTHMAN. Mr Speaker, today I intro- parts thereof in more than one time zone; or SPEECH OF (2) adopted pursuant to section 3(a)(1) of duced the Halloween Safety Act of 2004, leg- such Act by a State that lies entirely within HON. ANDER CRENSHAW islation to change the date on which daylight one time zone, OF FLORIDA saving time ends each year in the interest of shall be held and considered to remain in ef- IN THE HOUSE OF REPRESENTATIVES the safety of our children. This is a companion fect as the exercise by that State of the ex- bill to S. 1803, introduced by Senator MICHAEL emption permitted by such Act unless that Wednesday, March 17, 2004 ENZI of Wyoming. State, by law, provides that such exemption Mr. CRENSHAW. Mr. Speaker, I rise today As we all know, the holiday of Halloween shall not apply. to speak in support of H.R. 557 to commend falls on October 31st, typically just a few days ((c) ADJUSTMENT OF OPERATING HOURS OF DAY TIME BROADCASTERS.—(1) Notwith- the valiant service of the men and women of after the switch from daylight saving time to standing any other provision of law or any the United States and Coalition armed forces. standard time. As a result of turning our clocks regulation issued under law, the Federal One year ago these men and women were back, many young children go out to trick-or- Communications Commission shall, con- called on not only to protect the national secu- treat around their neighborhoods or towns sistent with any existing treaty or other rity of the United States, but also to free the when darkness has already fallen by five or agreement, make such adjustment by gen- world of a ruthless and brutal dictator. I feel six o’clock in the evening. Parents are faced eral rules, or by interim action pending such privileged to represent a large number of with the decision of whether or not to allow general rules, with respect to hours of oper- these men and women in the Fourth Congres- their children to go trick-or-treating in the dark, ation of daytime standard amplitude modu- lation broadcast stations as may be con- sional District of Florida. which creates a safety hazard for children run- sistent with the public interest in receiving In the beginning hours of the conflict, brave ning from house to house, and for motorists interference-free service. pilots of the Air Force flew bombing missions who must contend with children darting out (2) The general rules, or interim action, without knowing if they would be a target of into the streets. undertaken under paragraph (1) may include Saddam’s weak, but still existent surface to air Valerie Vainieri Huttle, the Chairwoman of variances with respect to operating power missile capability. U.S. Marines stormed the the Bergen County Board of Chosen and other technical operating characteris- tics. port of Umm Qasr to ensure Saddam could Freeholders, and David L. Ganz, who is both (3) At any time after the adoption of gen- not use his oil facilities to commit acts of envi- a Bergen County Freeholder and the Mayor of eral rules under paragraph (1), the general ronmental terrorism as he had in Operation Fair Lawn, New Jersey, have raised this issue rules may be varied with respect to par- Desert Storm. The United States Army pushed at the county government level and have ticular stations and areas because of the ex- forward quickly to take Baghdad before Sad- asked that I act on a federal level to address igencies in each case.

VerDate jul 14 2003 04:06 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00004 Fmt 0626 Sfmt 0634 E:\CR\FM\A18MR8.015 E18PT1 March 18, 2004 CONGRESSIONAL RECORD — Extensions of Remarks E407 RELATING TO THE LIBERATION OF feel-good House resolutions. On the one-year the 25th anniversary of its first coverage of the THE IRAQI PEOPLE AND THE anniversary of our military action against Iraq, proceedings of the House (No. 58). Had I VALIANT SERVICE OF THE the House Republicans have squandered an been present, I would have voted ‘‘aye.’’ UNITED STATES ARMED FORCES opportunity to demonstrate unblemished, patri- (2) H.R. 3733—Myron V. George Post Of- AND COALITION FORCES otic support for our courageous troops and the fice (No. 59). Had I been present, I would Iraqi people. The American people and espe- have voted ‘‘aye.’’ SPEECH OF cially our troops deserve better from this Con- (3) H. Res. 433—Honoring the life and leg- HON. JAMES L. OBERSTAR gress than the misguided resolution. acy of Luis A. Ferre´ (No. 60). Had I been OF MINNESOTA f present, I would have voted ‘‘aye.’’ f IN THE HOUSE OF REPRESENTATIVES IN RECOGNITION OF THE 10TH AN- Wednesday, March 17, 2004 NIVERSARY OF THE YOLO PERSONAL EXPLANATION Mr. OBERSTAR. Mr. Speaker, today, the HEALTH ALLIANCE House is considering a divisive and flawed HON. DON SHERWOOD resolution that proclaims that the world has HON. MIKE THOMPSON OF PENNSYLVANIA been made safer with the removal of Saddam OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES Hussein and his regime from power in Iraq. I IN THE HOUSE OF REPRESENTATIVES Thursday, March 18, 2004 have great difficulty accepting that proposition, Thursday, March 18, 2004 Mr. SHERWOOD. Mr. Speaker, due to a and am deeply troubled that the House Re- commitment in my congressional district, on Mr. THOMPSON of California. Mr. Speaker, publican leadership is embarking on this trans- March 17, I missed the vote on H. Res. 557, I rise today to recognize The Yolo Health Alli- parent, partisan exercise to score political relating to the liberation of the Iraqi people ance as it celebrates its 10th anniversary of points with their right wing. and the valiant service of the United States Without question, the Saddam Hussein dic- service to the community. Created in 1994, Armed Forces and Coalition forces (rollcall tatorship brutalized the Iraqi people, and there the Alliance is an integrated public-private vote 64). I support our Nation’s efforts in Iraq, is universal approval that he has been re- partnership including Sutter Davis Hospital, and I wholeheartedly support our troops. Had moved from power. Iraq is moving towards be- CommuniCare Health Centers, Yolo County I been present, I would have voted ‘‘aye’’ on coming more safe for the Iraqi people, but it Health Department and Sutter West Medical rollcall vote 64. is a great exaggeration to claim, as this reso- Group. The Alliance provides a seamless con- lution does, that the world is safer. As we ex- tinuum of medical care to Yolo County’s unin- f amine the facts on the one-year commemora- sured residents. HONORING THE LIFE AND LEGACY tion of the war in Iraq, there is no direct evi- During the ten years of its existence, The OF LUIS A. FERRE´ dence that Iraq represented a clear and Yolo Health Alliance has served to maintain a present danger to the United States. President healthy community in Yolo County by ensuring SPEECH OF Bush initiated this war which has diverted at- that quality health care is available to all resi- HON. JERRY WELLER tention and resources from what should be our dents, regardless of their ability to pay for OF ILLINOIS primary international objective: discerning, dis- services. The Alliance has served to signifi- IN THE HOUSE OF REPRESENTATIVES rupting and uprooting the source of terrorism. cantly reduce unnecessary visits to hospital Just as the Bush Administration distorted emergency rooms and to increase patient sat- Tuesday, March 16, 2004 and manipulated intelligence concerning isfaction by providing comprehensive care to Mr. WELLER. Mr. Speaker, I am pleased weapons of mass destruction to initiate this the underserved population of Yolo County. that the House has taken up and passed preemptive and unilateral war against Iraq, the Since its inception, The Yolo Health Alliance House Resolution 433, a resolution that hon- House Republican leadership has added to has provided health care services to over ors and remembers the contributions of a the Administration’s credibility problem by ad- 24,000 individuals, delivering multi-lingual and great American and a revered figure on the is- vancing this resolution. The Republican major- culturally-appropriate care to residents rep- land of Puerto Rico. ity are deceiving themselves and the American resenting many ethnic backgrounds. Services On October 21, 2003, at the age of 99, people with this assertion that we are safer as have grown to include both primary medical Puerto Rico lost a hero in the passing of Luis a nation and we live in a safer world. We are and dental care services through a network of Ferre´. Perhaps the greatest political figure in not and do not. seven community clinics located in Davis, the history of Puerto Rico, Luis Ferre´ spent his We continue to live in a very dangerous Woodland, West Sacramento, Esparto and entire life working to make life better for the world, and we are far from winning the war Knights Landing. residents of Puerto Rico. Luis Ferre´ was a against terrorism. That is why I am very trou- Mr. Speaker, The Yolo Health Alliance has successful businessman and a human rights bled that the President’s proposed budget fails been a cost-effective model that lowered the advocate for people on the small Caribbean to seek the necessary funds for homeland se- cost of care per member since its inception island. He was elected to post as both Gov- curity. We must provide more, not lower re- and saved local government millions of dollars ernor and Representative in Puerto Rico and sources, for port security; our firefighters and in indigent health care expenses. also served as Chairman of the Puerto Rico first responders need additional funding, but It is therefore appropriate that The Yolo Republican Party. the President’s budget request falls far short Health Alliance be recognized on its 10th anni- Ferre´ loved America. One of his greatest of what is needed to make our hometowns versary and commended for its success and hopes was to see his native Puerto Rico be- safer. good work in providing an exceptional quality come an American State and he worked I am also very disappointed with the manner ‘‘safety net’’ of health care services for those throughout his life to advance the cause of in which this legislation was drafted and in Yolo County without any coverage and with- statehood for Puerto Rico. In 1917, at the age brought to the House Floor. If the Republican out the resources to pay for care. of 13 years old, Ferre´ along with the people of majority truly wanted a strong expression of f Puerto Rico were granted United States citi- support for our troops and the Iraqi people, zenship. Ferre´ often recounted that while he they could have done so without inflammatory PERSONAL EXPLANATION could not recall the day Puerto Ricans were language in this resolution, and by including granted U.S. Citizenship, that he was grateful the Democrats in drafting a responsible state- HON. JIM KOLBE to be alive to enjoy the privileges of living in ment of bipartisan national purpose and unity. OF ARIZONA the worlds greatest republic. This intentional failure to bring bipartisanship IN THE HOUSE OF REPRESENTATIVES In 1951, Ferre´ was elected delegate to the to bear on this critical national security policy Puerto Rican Constitutional Convention and leaves no other conclusion to draw than the Thursday, March 18, 2004 he was able to directly contribute to the island Republican leadership places a higher priority Mr. KOLBE. Mr. Speaker, yesterday, I was becoming an official United States Common- on partisan gamesmanship than on states- escorting the Under Secretary of the Depart- wealth in 1952. manship. ment of Homeland Security in my Congres- In 1968, Ferre´ was elected Governor and he This ‘‘Do Nothing Congress’’ has failed to sional District and missed votes on the fol- continued to work toward Puerto Rican State- address the significant challenges at home lowing measures: hood. He remained active in politics up to his and abroad, while spending the first three (1) H. Res. 551—thanking C–SPAN for its death, most notably as the chairman of the months of this year considering low-priority, service to the House of Representatives on Republican Party in Puerto Rico.

VerDate jul 14 2003 04:06 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00005 Fmt 0626 Sfmt 9920 E:\CR\FM\A18MR8.020 E18PT1 E408 CONGRESSIONAL RECORD — Extensions of Remarks March 18, 2004 Mr. Speaker, many people from across the of money and non-monetary instruments, in- for someone like me, he rarely giggled when United States and across the globe have cluding automobiles. This provision is impor- I squeezed into a full-body wet suit and ringed taken note of the contributions of Luis Ferre´ tant because people who have specific knowl- my waist with a rubber spray skirt. I will miss and his life of public service on the islands of edge about perpetrators or their acts of ter- my friend, the gentleman with such aplomb Puerto Rico. Most notably, former President rorism may more highly value material objects, and discretion! George H.W. Bush awarded Ferre´ with the like a new tractor for their farm. The bill would It is sad to lose anyone so close. I want you Presidential Medal of Freedom in 1991, the also expand the eligibility criteria of informants to know how much I respected and admired highest government award a civilian can re- seeking to receive a reward. Jeff and looked up to him. He was an Amer- ceive. Ferre´ is one of four Puerto Ricans to re- The bill would increase the maximum ican hero. He lived a life that bespoke the best ceive this Presidential honor. amount that can be paid by the Department of of husbands and fathers everywhere. The Mr. Speaker, I am proud to support the peo- State for information and assistance. The dedication he showed to his family, the sense ple of Puerto Rico and I am pleased that this maximum amount of a reward increases from of community he exhibited in the way he ran body is honoring a great American and a great $5 million to a maximum of $25 million and his business, the daily comings-and-goings of Puerto Rican. I extend my condolences to Luis the Secretary of State may further authorize a Jeff Schrock, Everyman, is how we all ought Ferre´’s family and to all the people of Puerto reward of up to $50 million for the capture of to live our lives. Why? Because the end result Rico who cherished this man and his contribu- or information leading to the capture of Usama is a life of integrity and honor, a life of quiet tions. bin Laden. determination, and a life full of love. It is the f The bill clarifies that any information that hallmark of how the core principles of Amer- disrupts terrorist financing networks, including ican life are manifested in our Nation. Jeff, in COUNTER-TERRORIST AND NARCO- information related to illicit narcotics produc- his way, knew this and reveled in it. He chose TERRORIST REWARDS PROGRAM tion or international trafficking, is eligible for to be a leader for his family by showing com- ACT reward. The money laundering information passion and generosity. He chose to be a does not need to be tied to a specific act of leader by introducing his business associates SPEECH OF terrorism. This is particularly important, be- to the wonders of economic profits through en- HON. MARK E. SOUDER cause we face threats in our own hemisphere vironmental preservation. He chose to be a OF INDIANA from narco-terrorists. The common denomi- leader by getting involved in community IN THE HOUSE OF REPRESENTATIVES nator for each of the many threats, however, issues. He was a beacon for all of us, and Wednesday, March 17, 2004 is their funding stream. Being able to seize those who follow his lead, will be part and par- terrorist money has an immediate impact on cel of a stronger America, as Jeff truly was. Mr. SOUDER. Mr. Speaker, the Counter- their ability to conduct their horrific operations. Mr. Speaker, I miss my friend Jeff Schrock. Terrorist and Narco-Terrorist Rewards Pro- Compensating an informant for financial infor- I lament the death of the fellow who helped gram Act, H.R. 3782 seeks to expand the re- mation is just as vital as learning of the where- me squeeze into a kayak and who opened, so ward tools needed to encourage informants abouts of a particular actor. for many of us, an amazing Window to the with data to come forward and help prevent or The provisions in this bill dramatically im- wonders of Monterey Bay and our world’s resolve acts of international terrorism against prove the power of the tools available to the oceans. I share the grief of his wife and chil- U.S. citizens and property throughout the Department of State and law enforcement dren. But above all, I honor the role model he world. Rewards also can be paid for informa- agencies to attract and compensate knowl- was and will be for those he left behind. tion leading to the arrest or conviction of ter- edgeable informants. We can’t hope to place f rorists who attempt, commit, conspire, or aid undercover operatives into the places where and abet terrorist acts. Informants with the terrorist and narco-terrorist leaders plan their HONORING LARRY AND JEAN knowledge of a location or the identification of deeds. The advanced warning of an attack ELLIOTT terrorist leaders can also be rewarded. and the corresponding pre-event interdiction is Secretary of State Powell has authorized a priceless. Therefore, a reward is easily justi- HON. DAVID E. PRICE reward of up to $25 million for information fied. OF NORTH CAROLINA leading to the capture of bin Laden and other f IN THE HOUSE OF REPRESENTATIVES key al Qaeda leaders, under the provisions of the USA Patriot Act of 2001. That act specifi- ON THE LOSS OF A GREAT Thursday, March 18, 2004 cally authorizes the Secretary of State to offer AMERICAN, JEFF SCHROCK Mr. PRICE of North Carolina. Mr. Speaker, and pay rewards of greater than $5 million if I rise today to pay tribute to a couple from my it is determined that a greater amount is nec- HON. SAM FARR district, Larry and Jean Elliott, whose lives essary to combat terrorism or to defend the OF CALIFORNIA tragically ended in Iraq this week. United States against terrorist acts. As we ap- IN THE HOUSE OF REPRESENTATIVES In life and death, the Elliotts saw service as proach the fourth anniversary of the terrorist God’s calling. Missionaries for the Southern attacks on the United States, it is clear that a Thursday, March 18, 2004 Baptist International Mission Board, they inter- greater amount is necessary to entice inform- Mr. FARR. Mr. Speaker, I rise today to sa- mittently stayed at the mission house of First ants and that the reward program must be lute a great American: Jeff Schrock. Baptist Church in Cary when they were in publicized widely. Jeff died last month after battling brain can- North Carolina. Long stationed in Honduras, An especially important component of the cer. Sadly, he leaves behind a loving wife, they were watching CNN one day when they bill would publicize the existence of the re- Cass, and two doting children, Jenny and saw a broadcast of an Iraqi man pulling dirty wards program. The measure would provide Max. water from a hang-dug well. It was a scene additional authority to buy radio, television and I pay tribute to him as a fallen hero. Why? that struck a chord with Larry. In Honduras, he newspaper advertisements to publicize the re- Because this was a man who represented the and Jean had spent years building schools, wards program. It also would change the best of what America is—a loving husband, a developing water purification systems to pro- name of the program from the Rewards for good father, a solid citizen. Jeff Schrock and vide fresh water to rural residents, coordi- Justice Program to the Terrorism and Narco- all the ‘‘Jeff Schrocks’’ of the world are what nating visits by medical and dental teams from Terrorism Rewards Program. makes this a great country, are the kind of the U.S., and translating for other relief work- The rewards incentives work. Twenty-nine person that forms the intricate fabric that binds ers. They knew the importance of taking care people whom provided credible information us as a Nation, are the unsung heroes who of basic human needs as a ministry of com- that put terrorists behind bars or prevented serve as the massive middle class that exem- passion and sacrifice. acts of international terrorism worldwide have plifies the American nature at its best. Larry and Jean were not deterred by the been rewarded with a total of more than $49 I loved Jeff. He was as generous a soul as dangers of Iraq, and they went without hesi- million over the last seven years by the United one could hope to meet. His love of the out- tation. A friend said their courage stemmed States. Reward incentives played a significant doors and business acumen came together in from a sense of peace and a belief that their role in the arrest and conviction of terrorist a well-known business that he owned and destiny was in God’s hands. Ramzi Yousef, for the 1993 World Trade Cen- which became a beach-front institution in Mon- They were scouting the best location for ter bombing. terey: Monterey Bay Kayaks. At his kayak their water purification project when they be- This bill would also empower the Secretary shop he patiently taught people to explore and came casualties of the war: they were killed in of State to make rewards in any combination enjoy the ocean, up close and personal. And a drive-by shooting in Mosul on March 15. It

VerDate jul 14 2003 04:06 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00006 Fmt 0626 Sfmt 9920 E:\CR\FM\A18MR8.025 E18PT1 March 18, 2004 CONGRESSIONAL RECORD — Extensions of Remarks E409 happened just two weeks before they were leagues join me in congratulating them on played an active, instrumental role in making scheduled to return home. their perseverance, and wishing them well in this much-needed cancer center a reality. Mr. Speaker, family and friends say Larry their future endeavors. Macomb County currently experiences a and Jean were totally dedicated to missionary f higher cancer rate than its neighboring coun- work. They served without question—not for HONORING DR. BRIAN APRILL ties. The county is also growing faster than glory or recognition, but simply because they any other Michigan County. In the next 50 felt it was the right thing to do. They were the UPON HIS RETIREMENT FROM THE U.S. NAVY years, the number of Macomb County cancer embodiment of the spirit of Christianity, and cases will double and the number of cancer we are honored to claim them as North Caro- cases among those over 85 will increase four- lina’s own. HON. DOUG BEREUTER fold. Three children, Gina, Scott and Todd, sur- OF NEBRASKA The good news is that more and more, vive the couple, and their many friends and IN THE HOUSE OF REPRESENTATIVES admirers grieve for them at First Baptist. The we’re winning the battle against cancer. The Thursday, March 18, 2004 Elliotts’ deaths leave a tremendous void, but National Institutes of Health estimates that they also inspire the rest of us to work harder Mr. BEREUTER. Mr. Speaker, this Member more than 59 percent of those diagnosed with and to practice our faith in ways that honor rises to pay tribute to Dr. Brian Aprill, Captain cancer will survive at least five years, and ad- their service. in the U.S. Navy, on the occasion of his retire- vances in early detection and treatment could We thank God for the joy Larry and Jean El- ment from the U.S. Navy on May 1, 2004. soon increase that rate to 75 percent. liott found in their faith and honor all the can- Dr. Aprill has accompanied the House of The bad news is that it’s still a long, hard dles they lit in lives around the world. Representatives’ delegation to NATO Par- battle. In Macomb County, it has been made f liamentary Assembly meetings, on seven sep- harder by patients having to travel to multiple arate occasions, in his capacity as the delega- locations, some of them far away, in order to CONGRATULATIONS TO MARVIN tion’s physician. As Chairman of the House receive care. In 2001, nearly 70 percent of AND LUGENE SOLOMON FOR 50 Delegation to the NATO Parliamentary Assem- Macomb County residents were unable to get YEARS OF MARRIAGE bly, this Member would like to thank Dr. Aprill all the cancer care they needed in their own for his truly outstanding performance in his county. professional competence, good nature and HON. JERRY LEWIS The new facility will combine state-of-the art OF CALIFORNIA fine assistance to the delegation which is medical technology with a warm, welcoming IN THE HOUSE OF REPRESENTATIVES greatly appreciated by all Members of the del- egation. environment for patients and their families. Pa- Thursday, March 18, 2004 Dr. Aprill is a graduate of Whittier College tients will have access to clinical trials, inter- Mr. LEWIS of California. Mr. Speaker, I and Washington University School of Medi- disciplinary teams of doctors, nurses, phar- would like today to extend congratulations to cine. Currently, he is the Staff Endocrinologist macists, social workers, and dietitians, but will Marvin and Lugene Solomon of Southern Cali- in the Endocrinology and Metabolism Division, also be able to stay in homelike rooms and fornia, who are celebrating their 50th year of Department of Internal Medicine at the Be- visit a healing garden. marriage in a relationship that blends artistic thesda National Naval Medical Center. In addi- Ted Wahby’s leadership and dedication talents with creative business acumen. tion, he is the Assistant Professor of Medicine, were indispensable to the building of this new Although Lugene is a native of Oklahoma, Uniformed Services University of Health facility. On behalf of myself and the people I the Solomons have lived a California dream Sciences, and Program Director, Transitional represent in the 12th district of Michigan, I since they met while attending the University Year Program. In 1991, Dr. Aprill received the thank him warmly for his efforts and congratu- of California. At the time, Lugene was juggling Navy Achievement Medal and in 1996, the late him on the honor of having this fine facility her studies with a starring role as Babs Riley Navy Commendation Medal. bear his name. It is indeed well-deserved. in the television show ‘‘The Life of Riley.’’ This Member, in behalf of himself and the Fifty years after they were married, Marvin House delegation to the NATO Parliamentary f and Lugene are still at work. Lugene now ap- Assembly, commends Dr. Aprill on his out- plies her artistic talents through a successful standing career with the U.S. Navy and wish- PERSONAL EXPLANATION cloisonne´ pin and embroidered patch com- es him well in his new capacity as a Staff pany, C. Sanders Emblems, which provides Endocrinologist with the Frist Clinic in Nash- logos and uniform patches for groups and ville, Tennessee. HON. MIKE ROSS companies across America. f OF ARKANSAS Marvin’s first company, Nuclear Supplies, was started in 1963 specializing in nuclear ra- CONGRATULATING MOUNT IN THE HOUSE OF REPRESENTATIVES diation detection equipment and was later ab- CLEMENS GENERAL HOSPITAL sorbed by his test and measurement instru- Thursday, March 18, 2004 mentation company Soltec Corporation, based HON. SANDER M. LEVIN Mr. ROSS. Mr. Speaker, I regret that my in Los Angeles. Marvin, the CEO and founder OF MICHIGAN vote on the Scott/Watt Amendment (#6) to of Soltec, leads a team of scientists and engi- IN THE HOUSE OF REPRESENTATIVES H.R. 339, the Personal Responsibility in Food neers with a world-class reputation for design- Thursday, March 18, 2004 Consumption Act was recorded as ‘‘no.’’ I ing integrated engineering solutions to modern would like the record to reflect that my vote day challenges in both the public and private Mr. LEVIN. Mr. Speaker, I rise to congratu- should have been ‘‘yes.’’ sectors. The company’s hand-held radiation late Mount Clemens General Hospital on the detection equipment has saved lives and pro- opening of their new Radiology Oncology Cen- I recognize and appreciate the important tected the health of many people in both gov- ter and the completion of the first phase of the work states have done to prevent and reduce ernment and industry. Ted B. Wahby Cancer Center. I also want to chronic health diseases and obesity-related The Solomons have lived in San Marino, join the staff and trustees of Mount Clemens health conditions. As a former member of the California, for the past 30 years, where they General in honoring my friend Ted Wahby for Arkansas State Senate’s Public Health, Wel- raised their two daughters, Jennifer Solomon his long dedication to providing quality health fare and Labor Committee, I worked diligently and Kimberly Fortier. They are also the proud care and to the service of Macomb County. with state agencies and health providers to grandparents of three grandchildren. Lugene Ted currently serves as Macomb County promote positive statewide health strategies. loves foreign languages and keeps current as Treasurer and has a long record of dedicated According to the underlying bill, a person is a bi-lingual speaker of French in their travels public service. He was voted one of Crain’s defined in section 4(3) of the bill to include abroad and in spending time at their apart- Detroit Business 25 most influential leaders governmental entities. Consequently, states ment in Paris. She is also active in theatre last year. Prior to his service as Treasurer, he could be limited in bringing legal complaints and opera groups. was the long-time mayor of St. Clair Shores against violators of state consumer protection Mr. Speaker, Marvin and Lugene Solomon and a trustee of the Lakeshore School District statutes. The Scott/Watt Amendment would have forged successful independent careers Board. Among his many charitable efforts, he have protected a state’s attorney general’s op- even as they have shared their lives for the serves as Chairman of the Board of Trustees tion to protect consumers in accordance to past 50 years. I ask that you and my col- at Mount Clemens General Hospital and has consumer protection laws.

VerDate jul 14 2003 04:06 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00007 Fmt 0626 Sfmt 0634 E:\CR\FM\A18MR8.029 E18PT1 E410 CONGRESSIONAL RECORD — Extensions of Remarks March 18, 2004 COMMEMORATING THE 150TH ANNI- IN MEMORY OF HAROLD YEE Gold.—Officer A.S. Robinson, Prince Wil- VERSARY OF THE FIRST MEET- liam County Police Department; Officer M.J. ING OF THE REPUBLICAN PARTY HON. NANCY PELOSI Harman, Prince William County Police Depart- IN RIPON, WISCONSIN OF CALIFORNIA ment. IN THE HOUSE OF REPRESENTATIVES Silver.—Detective J. Lanzafama, Prince Wil- HON. THOMAS E. PETRI Thursday, March 18, 2004 liam County Police Department; Officer K.K Kane, Prince William County Police Depart- OF WISCONSIN Ms. PELOSI. Mr. Speaker, I rise to pay final IN THE HOUSE OF REPRESENTATIVES ment; Officer R. W. Kovach, Prince William tribute to civil rights leader and community ac- County Police Department; Officer M.T. Sul- Thursday, March 18, 2004 tivist Harold Yee, who passed away on Feb- livan, Prince William County Police Depart- Mr. PETRI. Mr. Speaker, I rise today to ruary 5th in San Francisco. Harold was an ex- ment; Officer W.F. VanAntwerp, Jr., Prince commemorate the 150th Anniversary of the traordinary leader and visionary who empow- William County Police Department; Officer first meeting of the Republican Party in the ered San Francisco’s Asian American commu- W.G. Ward, Prince William County Police De- town of Ripon, Wisconsin on March 20, 1854. nity to dramatically expand and solidify its eco- partment; Officer M.L. West, Prince William On that momentous day, a group of 54 con- nomic and political strength. County Police Department; Officer E.J. cerned citizens gathered in the Little White Born in China in 1932, Harold immigrated to Barhart, Prince William County Police Depart- Schoolhouse to protest the extension of slav- the United States in 1939 where he grew up ment; Officer B.M. Carter, Prince William ery into the territories of Kansas and Ne- in East Los Angeles. He received his bach- County Police Department; Officer M.J. braska. Led by Alvan Bovay, this group of citi- elor’s degree in pomology from UC Davis in Headrick, Prince William County Police De- zens dissolved the local Whig and Free Soil 1956, and his master’s degree in economics partment; Officer C.A. Meurer, Prince William parties and officially declared themselves ‘‘Re- from UC Berkeley in 1961. Beginning as a re- County Police Department, Vehicle Fire; Dep- publicans.’’ For this reason, the Little White searcher for the U.S. Food and Drug Adminis- uty Animal Control Officer L.A. Thompson, Schoolhouse has long been known as the tration, Harold discovered his passion for com- Prince William County Police Department; Birthplace of the Republican Party. munity development, eventually leaving the Deputy Animal Control Officer C.D. Firebaugh, Since its inception, the Republican Party FDA in 1971 to found ASIAN, Inc. Prince William County Police Department. Through ASIAN, Inc., Harold strengthened has stood for Liberty and Equality for all— Bronze.—Police Officer First Class Esteban the San Francisco Asian American community making the Little White Schoolhouse a symbol Jordan, City of Manassas Police Department; economically, socially and politically. ASIAN, of civic responsibility to the residents of Ripon Deputy Kim El-bisi, Prince William County Inc. helped launch many minority-owned small and the nation. On May 30, 1974, the Depart- Sheriff’s Office; Officer G.D. VanDyke, Prince businesses in San Francisco, trained young ment of the Interior formally recognized the William County Police Department; Officer professionals for the rigors of running their historical importance of the first meeting of the S.M. Peak, Prince William County Police De- own businesses, and encouraged the develop- Republican Party by designating the Little partment; Lieutenant Michael Nazionale, OWL ment of trade associations. Harold leaves a White Schoolhouse as a National Historic Volunteer Fire Department; Technician lI Brett rich legacy, including more than 100 non-profit Landmark. The structure is significant, accord- Hamby, Prince William County Fire and Res- organizations and agencies. cue; Technician II Jeff Howdyshell, Prince Wil- ing to the National Park Service, because ‘‘a Harold was a fierce advocate for the civil liam County Fire and Rescue. meeting in this simple, one story clapboard rights and equality of Asian Pacific Americans. Merit.—Deputy Ricki Booth, Prince William and frame schoolhouse on March 20, 1854 He founded the Chinese American Voter Edu- County Sheriff’s Office; Sergeant G.H. How- and another in Jackson, Michigan on July 6’’ cation Committee to increase political aware- ard, Prince William County Police Department; led to the formation of the Republican Party. ness and participation. His contributions to the Officer R.A. Arce, Prince William County Po- To this day it attracts visitors from around the Asian American Community and to the City of lice Department; Officer C.M. Begley, Prince world. San Francisco are immeasurable. In order to commemorate the 150th Anniver- Harold’s boundless energy and enthusiasm William County Police Department; Officer sary of the founding of the Republican Party, for life were contagious. He was a mentor and M.J. McCauley, Prince William County Police the town of Ripon is holding a celebration enti- a friend to countless people, who greatly ben- Department; Officer J.G. Medawar, Prince Wil- tled, ‘‘From Schoolhouse to White House; A efited from his wisdom, support and friendship. liam County Police Department; Officer R.W. Celebration of Active Citizenship’’ that will pro- It is with sadness and appreciation that I ex- Minnick, Prince William County Police Depart- mote the importance of civic involvement. This tend my deepest sympathies to his wife, ment, River Run Fire, Shell Station Fire; Offi- celebration will also honor the leadership that Wilma, his daughter, Catherine, and his son, cer S.C Mercer, Prince William County Police 54 citizens of Ripon displayed on March 20, Robert. To his family and friends, thank you Department; Officer C.A. Meurer, Prince Wil- 1854, in proclaiming themselves Republicans for allowing him to give his time to the com- liam County Police Department, Shell Station under the banner of Liberty and Equality. The munity he loved. Fire; Lieutenant B.L. Finn, Prince William event on March 20, 2004, caps off a two County Police Department; Sergeant R.D. f month series of events that have been held in Larkin, Prince William County Police Depart- Ripon, including a conference on the accom- RECOGNIZING THE PRINCE WIL- ment; Captain David Halman, OWL Volunteer plishments of Wisconsin women and mock LIAM REGIONAL CHAMBER OF Fire Department; Sergeant Eric Craven, OWL elections held in the Ripon schools to focus COMMERCE 2004 VALOR AWARD Volunteer Fire Department; Technician II Scott attention on this most basic form of active citi- RECIPIENTS Richardson, Prince William County Depart- zenship. ment Fire and Rescue. Therefore, I want to once again recognize HON. TOM DAVIS Lifesaving.—Sergeant R.D. Grinnell, Prince the 150th Anniversary of the first meeting of OF VIRGINIA William County Police Department. the Republican Party at the Little White IN THE HOUSE OF REPRESENTATIVES Hilary Robinette.—First Sergeant R.A. Cantarella, Prince William County Police De- Schoolhouse in Ripon, Wisconsin. Thursday, March 18, 2004 f partment, Excellence and Integrity for Inves- Mr. TOM DAVIS of Virginia. Mr. Speaker, tigative Work. PERSONAL EXPLANATION each year, the Prince William Regional Cham- Special Department.—Dale City Volunteer ber of Commerce honors individuals for coura- Fire Department for Exceptional Firefighting HON. CAROLYN B. MALONEY geous, selfless dedication to public safety. and Lifesaving, February 8, 2003, River Run OF NEW YORK These remarkable men and women have Senior Apartments; Occoquan-Woodbridge- IN THE HOUSE OF REPRESENTATIVES played an important role in the protection and Lorton Volunteer Fire Department for Excep- betterment of their community. Their tremen- tional Firefighting and Lifesaving, February 8, Thursday, March 18, 2004 dous efforts on behalf of Prince William Coun- 2003, River Run Senior Apartments. Mrs. MALONEY. Mr. Speaker, on March 16, ty have earned them one of the highest hon- All of these individuals have provided invalu- 2004 and March 17, 2004 I missed rollcall ors bestowed upon county public safety offi- able community service, truly deserving these votes Nos. 58 to 63. cials—the Valor Award. It is with great honor prestigious awards. I congratulate and com- Had I been present, I would have voted that I recognize the Prince William County mend them. ‘‘yea’’ on rollcall votes Nos. 58, 59, and 60. In Gold, Silver, Bronze, Merit, Lifesaving, Hilary Mr. Speaker, in closing, I would like to thank addition, I would have voted ‘‘nay’’ on rollcall Robinette, and Special Department Valor all the men and women who serve Prince Wil- votes Nos. 61, 62, and 63. Award recipients: liam County. These strong, brave, determined

VerDate jul 14 2003 04:06 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00008 Fmt 0626 Sfmt 9920 E:\CR\FM\A18MR8.034 E18PT1 March 18, 2004 CONGRESSIONAL RECORD — Extensions of Remarks E411 individuals make sacrifices daily to preserve turned from Iraq more confident about the consin would see its first Congresswoman with our safety. Their countless acts of heroism condition of American troops and their morale. the election of TAMMY BALDWIN in 1999, who merit our highest praise. I ask that my col- In times of crisis like the past year, our na- continues to represent Wisconsin women leagues join me in applauding these out- tion looks to the men and women of the today. standing individuals. armed forces. America must honor their sac- Lastly, but certainly not least, I would like to f rifice and courage by living up to her promises honor the achievements of Carrie Lane Chap- to service personnel, whether active duty, re- man Catt. As a native of Ripon, Wisconsin, RELATING TO THE LIBERATION OF servists, members of the National Guard or she played the largest role in the final pas- THE IRAQI PEOPLE AND THE veterans. This anniversary is a time for all of sage of the 19th Amendment. Her campaign VALIANT SERVICE OF THE us to reflect, by remembering the sacrifices was successful because she pushed for re- UNITED STATES ARMED FORCES our veterans are making and working for a form in the states, instead of focusing solely AND COALITION FORCES more peaceful future. on a constitutional amendment. In 1900, she f succeeded Susan B. Anthony as the president HON. DENNIS MOORE of the National American Woman Suffrage As- IN HONOR OF WOMEN’S HISTORY OF KANSAS sociation. Following ratification of the amend- MONTH IN THE HOUSE OF REPRESENTATIVES ment, her leadership abilities were not forgot- Wednesday, March 17, 2004 ten as she helped establish the League of HON. RON KIND Women Voters, which is still active today. I Mr. MOORE. Mr. Speaker, I rise in support OF WISCONSIN think I speak for all people from Wisconsin of the resolution before the House of Rep- IN THE HOUSE OF REPRESENTATIVES when I say that we are fortunate to have had resentatives today that commends the mem- Thursday, March 18, 2004 such a remarkable woman in our history. bers of the United States armed forces and These four women, along with so many oth- coalition forces for liberating Iraq, and ex- Mr. KIND. Mr. Speaker, I rise today in honor ers, inspired hope and possibility not only in presses the gratitude of the American people of Women’s History Month. In 1987, Congress Wisconsin, but across the United States. I for their valiant service. passed a resolution designating the month of have no doubt that their devotion to the cause On a plane coming home to Kansas re- March as Women’s History Month as a time to was the sole reason why Wisconsin was the cently, I had a conversation about the situation honor, ‘‘American women of every race, class first state to ratify the 19th Amendment on in Iraq with a man who served our country in and ethnic background [who] have made his- June 10th, 1919. I am honored to share these Vietnam. The veteran noted the contrast in the toric contributions to the growth and strength women’s stories today, as their efforts made treatment of soldiers returning home today of our Nation in countless recorded and unre- Wisconsin a leader in this landmark roll call of compared with what he had faced. He didn’t corded ways.’’ democracy. In many ways, their hopes are still provide details, but the memories of his own For 2004, the theme of Women’s History with us today. As a reflection of this, I will end homecoming still brought tears decades later. Month is ‘‘Women Inspiring Hope and Possi- my statement with a quotation from Carrie March 20th will mark the one-year anniver- bility.’’ To celebrate this month, I would like to Chapman Catt: ‘‘Everybody counts in applying sary of our intervention in Iraq. I’m thankful honor four of the numerous women from Wis- democracy. And there will never be a true de- time has changed the way we treat veterans consin’s history who inspired hope and possi- mocracy until every responsible and law-abid- who have served our country. While I hear dif- bility through their selfless efforts in gaining ing adult in it, without regard to race, sex, fering opinions from Kansans about this issue, suffrage for women in America. color or creed has his or her own inalienable we can all agree on the need to support the First, I would like to recognize Ada James, and unpurchasable voice in government.’’ thousands of men and women in harm’s way who served as president of the Political Equal- f who protect our freedom and stand up for us ity League from 1911 to 1919. As a dedicated in the war on terrorism. women’s suffrage advocate, Ms. James spent IN HONOR OF MIGUEL RIVERA Last September, I met with family members these eight years preceding the ratification of of the over 300 reservists and National Guard the suffrage amendment to the U.S. Constitu- HON. ROBERT MENENDEZ members from units based in my district de- tion on an automobile tour through Southern OF NEW JERSEY ployed to Operation Iraqi Freedom. Many re- Wisconsin. She spoke at state and county IN THE HOUSE OF REPRESENTATIVES servists and members of the National Guard fairs, and to farmers and workers in factories left behind jobs and families with reduced in- with her fellow suffragists. Ms. James was a Thursday, March 18, 2004 come and limited support networks. Some native of Richland Center, a city in Wiscon- Mr. MENENDEZ. Mr. Speaker, I rise today have lost their homes and small businesses in sin’s Third Congressional District, and I am to honor Miguel Rivera for his years of out- order to do their duty. To show our gratitude honored to be able to share Ms. James’ story standing work and service with Verizon Com- for their sacrifices, I believe we must do every- here. munications. Mr. Rivera will be honored by the thing we can to address the needs of our mili- Reverend Olympia Brown resided in Racine, Friends of Mike Rivera Committee for 35 tary. Troop strength, equipment, supplies, and Wisconsin, where she was elected president years of dedicated service to Verizon Commu- care they need when they come home are an of the Wisconsin Women’s Suffrage Associa- nications and the Hispanic Community at 7 absolute. tion, holding this post for 30 years. Reverend p.m. on Friday, March 19, 2004, at the Hyatt Too often Congress pays lip service to our Brown lived a life of activism, and after being Regency Hotel in North Brunswick, New Jer- veterans and military personnel, yet fails to refused at Wisconsin polls, she took her case sey. deliver on solid votes and programs that would to the State Supreme Court. Despite a deci- Mr. Rivera is retiring from Verizon Commu- demonstrate our recognition of their sacrifice. sion rendered in favor of the election inspec- nications after 35 years of service. Mr. Rivera I listened to military personnel and their fami- tors, she never accepted defeat. She contin- started his career with Verizon as Facilities lies, and I’m proud my legislative proposals ued to fight for women’s right to vote, and was Engineer from 1968 to 1972. He also held the are helping troops and veterans. In November one of the few suffrage leaders who lived to position of Systems Equipment Engineer from 2003, my proposal to relieve the travel burden be able to cast a vote in the Presidential elec- 1972 to 1977. From 1977 to his retirement, on troops coming home for Rest and Recuper- tion of 1920—the first in which women could Mr. Rivera was Director of External Affairs, ation (R&R) was signed into law. The new law vote. serving as the face of Verizon Communica- provides funding to cover all travel costs nec- As the first Wisconsin-born leader of the tions to local government, consumer relations, essary to return service personnel home to state’s suffrage movement, Theodora Winton and Hispanic relations in New Jersey. their families. Another bill I introduced that will Youmans was able to help the movement gain As Director of External Affairs, Mr. Rivera protect the growing health care needs of our momentum by writing a regular column for the was able to dedicate a great deal of time and veterans became law in December 2003. Waukesha Freeman. She used her column as resources to the enhancement of the Hispanic In January, I was part of a small congres- a platform to educate the public about suffrage community in New Jersey. Serving as Cor- sional delegation to Iraq. I heard firsthand and women’s rights. After leaving her post as porate Representative of Verizon Communica- from those serving on the front lines, including assistant editor in the 1890s, Ms. Youmans tions with the Statewide Hispanic Chamber of Kansas military personnel who are upbeat and worked to create the Wisconsin Federation of Commerce and the Hudson County Chamber proud of their efforts in Iraq. I was pleased to Women’s Clubs, serving as its president in of Commerce, Mr. Rivera was able to bring in- learn that many of the concerns about equip- 1900. In 1924, she lost a bid to Congress, and creased prosperity to Hispanics throughout the ment and supplies have been corrected. I re- it was not until nearly 75 years later that Wis- state by forming new partnerships with Latin

VerDate jul 14 2003 04:06 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00009 Fmt 0626 Sfmt 9920 E:\CR\FM\A18MR8.038 E18PT1 E412 CONGRESSIONAL RECORD — Extensions of Remarks March 18, 2004 America, bringing products and jobs back to INTRODUCING CONSTITUTIONAL on critical pieces of legislation to deal with the New Jersey, and creating further economic AMENDMENT TO ADDRESS CON- aftermath of a crisis. Should such an event development and business opportunities TINUITY OF CONGRESS ISSUE occur again and many Members of Congress throughout our region. die, the country will not have the luxury of Mr. Rivera currently is Chairman of the HON. JOHN B. LARSON waiting for special elections to occur in order Board of Trustees of Community United for OF CONNECTICUT for the people’s business to continue. To avoid the Rehabilitation of the Addict, Inc. (CURA), IN THE HOUSE OF REPRESENTATIVES taking action now to prevent this scenario would be a dereliction of our duty. Secretary of the Board of Trustees of the Thursday, March 18, 2004 Puerto Rican Action Board, and Trustee for My proposed Constitutional Amendment New Brunswick Tomorrow. Mr. Rivera’s vast Mr. LARSON of Connecticut. Mr. Speaker, also addresses vacancies created by the inca- community activities are an example of his today I rise to offer what I believe is a nec- pacity of a Member of the House, which can- wide variety of concerns for his community, essary solution to a problem not addressed in not be addressed by a mere statute. The arti- while showing his dedication and desire to im- our Founding Fathers’ plan for our country’s cle would become part of the Constitution if prove his community through action. government. ratified by the legislatures of three-fourths of I recently introduced a Constitutional the states within seven years of the date of its Mr. Rivera received his bachelor’s degree Amendment to address the issue of how Con- submission to them. from the University of Puerto Rico. Mr. Rivera gress would continue should a catastrophic As a former history teacher and long-serving is a loving husband to his wife, Nina Rivera. event occur. Under this proposal, if a majority member of the Connecticut State Senate, I Today, I ask my colleagues to join me in of House members are killed or incapacitated feel very strongly about the need to preserve honoring Miguel Rivera for his 35 years of dis- as a result of such an event their seats could the institution of Congress. In December, I tinguished service, outstanding leadership, be immediately filled by temporary appoint- held a Continuity of Congress Forum at the and devotion to Verizon Communications and ments made by state legislatures. We need University of Connecticut School of Law in the Hispanic community. look no further than the Continental Con- Hartford, Connecticut. I invited local academic gresses and Constitutional Convention, to un- leaders, who are experts in Congressional op- f derstand that such a temporary solution would erations, to discuss current House proposals be successful. I believe that a functional about how Congress would continue should a TERRORISM PROTECTION OF MASS House, even in a temporarily modified form, is catastrophic event occur. TRANSPORTATION AND RAIL- far better than no House at all. Mr. Speaker, I urge my colleagues to join ROAD CARRIERS ACT OF 2004 The temporary appointments would be af- me in supporting this Constitutional Amend- forded full Member powers, until vacancies are ment. This is certainly an issue that is difficult HON. CHRISTOPHER SHAYS filled by a special election. However, a tem- for all of us to address—our untimely demise porary Member could not be a candidate in or incapacitation. Yet, given the level of ter- OF CONNECTICUT the election for the seat he or she holds, and rorist activity in our world, it would behoove us IN THE HOUSE OF REPRESENTATIVES the temporary Member must be of the same to recognize that we need a mechanism for temporary appointments should a catastrophic Thursday, March 18, 2004 political party as the Member who previously held the seat. event occur in the House of Representatives. Mr. SHAYS. Mr. Speaker, the recent horrific There is no way the Founders could have f terrorist attacks on commuter trains in Madrid, foreseen the need to address such an issue. TRIBUTE TO PELKIE AGRICUL- Spain tragically underscored the vulnerability The terrorist acts that take place nearly every TURAL SCHOOL AND THE ORIGI- of railroad and mass transit systems to ter- day across the globe were not a part of their NAL SEVEN ONE-ROOM COUNTRY rorist attacks. It is time we identify these world. That’s why I believe a Constitutional SCHOOL HOUSES ON THE OCCA- vulnerabilities and make the necessary Amendment is necessary to enable the House SION OF THEIR REUNION changes to improve our safety. to reconstitute itself as quickly as possible. Congressman RUPPERSBERGER and I have We have amended the Constitution to ad- dress presidential succession and the appoint- HON. BART STUPAK introduced the Anti-Terrorism Mass Transpor- OF MICHIGAN ment of Senators in the case of vacancies, but tation and Railroad Carrier Act of 2004, which IN THE HOUSE OF REPRESENTATIVES is the companion legislation to a bill intro- the House has no such constitutional safe- Thursday, March 18, 2004 duced by Senator SESSIONS in the Senate. guard in the event of a catastrophe. That This bill takes tangible steps to protect the mil- doesn’t make sense. If the Senate can accept Mr. STUPAK. Mr. Speaker, I rise tonight to lions of Americans who use our transit sys- an appointment to fill an entire term, then a call your attention and that of our House col- tems and increase punishment if a terrorist is temporary appointment should not be that of- leagues to a ceremony that will take place in able to conduct an attack. fensive to the concept of democracy, and the Upper Peninsula of Michigan on August 9, therefore, should be acceptable for the House. Under current law, an attack on a train is 2004. While the Baraga County Fair goes on, I offered this Constitutional amendment treated differently than an attack on any other the Pelkie Agricultural School along with the (H.J. Res. 89), because I believe that pro- mass transit system. We believe clear federal original seven one-room country school posals to expedite special elections and make jurisdiction is needed to send the message to houses of the Pelkie area, will be celebrating temporary appointments are not mutually ex- would-be terrorists: they will face the full force with all their alumni. clusive. I support the idea of a new statute In the NW corner of the Upper Peninsula of law. Under our bill, perpetrators would face that seeks to expedite special elections and fill there is the small town of Pelkie where a hid- up to 20 years in prison if an attack causes House seats quickly in the event of a catas- den treasure lay. The treasure built in 1932 is material damage to a railroad or mass transit trophe, but this needs to be done in concert known as Pelkie Agricultural School, and is system, and the death penalty if the attack re- with a Constitutional Amendment for tem- perhaps one of the oldest schools of its kind sults in any deaths. porary replacements and with respect for in Michigan or even in the United States still Our bill would also broaden the definition of views of the states. operating as an educational institution. The ‘‘domestic and international terrorism’’ to pro- As for other proposals that address this community looks forward to hosting the event vide law enforcement with tools to combat and issue only through expedited special elections, and reuniting with old friends, teachers and prevent attacks on mass transportation and I am certainly willing to review any com- classmates. railroads. Specifically, our bill would make it promise opportunities. However, I do not be- The Pelkie area was originally settled by easier for law enforcement officials to detect lieve, nor does the secretary of state from my Finnish immigrants in the latter part of the and disrupt terrorist plots against mass transit home state of Connecticut believe, that it is nineteenth century and the early part of the systems in the planning phases by allowing reasonable to expect that we can hold special twentieth century. As late as the mid–1970’s the interception of wire, oral, or electronic elections within 45 days after a disastrous one could walk into the local Co-op Store and communications if sufficient evidence existed. event has wiped out hundreds of Members. hear the Finnish language spoken, or attend Mr. Speaker, we need to deal with the ter- Also, expedited special elections won’t recon- an area church service on Sunday conducted rorist threat in a forceful, decisive manner. stitute the House fast enough to deal with in the Finnish language. In the early years, While much remains to be done to improve pressing legislative matters. seven one-room country school houses served railroad security in our country, this bill takes The tragic events of September 11, 2001 the educational needs of the Pelkie area chil- an important first step. taught us that Congress needs to act quickly dren, and then in 1932 the Pelkie Agricultural

VerDate jul 14 2003 04:06 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00010 Fmt 0626 Sfmt 9920 E:\CR\FM\A18MR8.043 E18PT1 March 18, 2004 CONGRESSIONAL RECORD — Extensions of Remarks E413 School was built to consolidate these schools. RELATING TO THE LIBERATION OF We have been forced into a hardship budget For the first ten years or so, Pelkie Agricultural THE IRAQI PEOPLE AND THE for domestic programs. While there is no Fed- School operated as a K–10 school with an ag- VALIANT SERVICE OF THE eral aid for public school construction here at ricultural focus. The concepts of agriculture UNITED STATES ARMED FORCES home, we are spending billions to build (for boys) and home economics (for the girls) AND COALITION FORCES schools in Iraq. While fifty percent of the Black were articulated and integrated into all aspects males in New York City are unemployed, bil- SPEECH OF of the curriculum. lions of dollars are being spent to provide jobs to Iraqi men. There is a possibility that the bit- In the mid-1940’s, the school began the first HON. MAJOR R. OWENS OF NEW YORK terness and desperation which is the fertilizer of many changes caused by declining enroll- IN THE HOUSE OF REPRESENTATIVES for terrorism will create a unique incubator in ment and dwindling finances. The school first Wednesday, March 17, 2004 America. changed to a K–8 school and then eventually Is the world better off since we ventured into a K–6 school. As innovations and curriculum Mr. OWENS. Mr. Speaker, I rise to strongly oil rich Iraq? Are Americans safer? Is the war changes occurred in Michigan education, condemn and denounce this cynical resolution against terrorism being conducted effectively? Baraga Township decided to implement a new which seeks members of Congress to once The answer to all of these questions is no. and innovative concept. Eventually this lead to more endorse the needless war against Iraq. Should we pass this resolution which pretends the designation of the school as a lower ele- The world is certainly not safer now than it to honor the troops but has been concocted to mentary building for the entire district. The ele- was before the attack on Iraq. Indeed, just the ambush legislators into stating that they en- mentary school is currently filled to capacity opposite is true. We are bogged down in a dorse the war in Iraq? The answer is no. and wisely used by the district. war at the wrong place which drains dollars, manpower and creative decision-making en- f When asked what role the school plays in ergy from our government. This administration TRIBUTE TO THE REPUBLIC OF the community, a local resident responded has placed our nation in a deadly vise that TUNISIA that the school was and continues to be the blocks us from a more effective pursuit of ter- center of the community. It is the place for all rorism. Let me just cite one critical example: HON. ROBERT E. (BUD) CRAMER, JR. community activities except church services. Pakistan! We are losing our long-term ally, OF ALABAMA MSU Extension Study Clubs, 4–H Clubs, Pakistan, as a result of blatant neglect. The IN THE HOUSE OF REPRESENTATIVES physical fitness programs, preschool pro- one Islamic nation which clearly has ‘‘weapons Thursday, March 18, 2004 grams, Agricultural Extension meetings, as of mass destruction’’ has received low priority well as the Baraga County fair are held there. and second class treatment from our govern- Mr. CRAMER. Mr. Speaker, I rise today to Everyone has fond memories from their times ment. Even after the President of Pakistan honor the government and citizens of the Re- at Pelkie Agricultural School and the commu- chose to take great risks to assist in the war public of Tunisia on the forty-eighth anniver- nity takes pride in doing everything they can to against the Taliban in Afghanistan, the U.S. sary of Tunisian independence. keep the school in good condition. offered this nation an economic assistance On March 20, 1956, Tunisia declared its package of less than one billion dollars. At the independence from France and the United Over the years, the school has provided same time this administration was offering States was one of the first countries to recog- many important needs for the community in- Turkey several billion dollars merely to allow nize an independent Tunisian state. For forty- cluding educational programs for soldiers after our troops to pass through on their way to eight years, Tunisia has been a strong ally of WWII. The school received federal funding Iraq. Pakistan also has a population of more the U.S. and has helped to encourage the val- under the GI bill to offer educational services than 150 million people while Iraq only has 25 ues of liberty, democracy, and free enterprise and training in agriculture to area men return- million people. Nevertheless we are proposing throughout Africa and the world. ing home after the war. Five teachers dedi- 27 billion dollars to rebuild Iraq while offering In addition, Tunisia has worked closely with cated themselves to teaching night classes to the loyal ally, Pakistan, less than one billion the United States to promote international returning GIs in efforts to help them become dollars. peace, stability, and progress. In fact, Mr. productive independent farmers on the land Mr. Speaker, we are losing our most valu- Speaker, Tunisia was one of the first nations that their Finnish forefathers had cleared a able ally in the war against terrorism because to condemn the terrorist attacks of September generation earlier. we are obsessed with Iraq. Because I have a 11, 2001 and offer its support in the global large Pakistani-American community in my The caliber of education offered at Pelkie fight against terrorism. District I was invited to visit Pakistan 2 years Agricultural School is revealed through their Mr. Speaker, on Saturday, all of Tunisia’s ago. Everywhere there was obviously admira- many distinguished alumni. For forty-four people will be in joyous celebration. I rise tion for America; however, everywhere there today to join them in the commemoration of years, Mrs. Ida Fitzpatrick, one of the school’s was also disappointment and bitterness with their independence. teachers and its principal, directed the edu- respect to the treatment of Pakistan by suc- f cation of community youth. The school has cessive U.S. governments. In the end there is produced many farmers, professors, traders, a feeling that their nuclear weapons program RECOGNIZING ALFRED P. musicians, teachers, writers, and doctors. is the only way they can command the appro- GERHARDT, JR. Among those we can cite as having attended priate attention from the U.S. Pelkie Agricultural School are Dr. LuAnne Be assured that no high school sophomore HON. JIM GERLACH Ruona, psychiatrist and faculty member at is expected to believe that the sale of Paki- OF PENNSYLVANIA George Washington University, Dr. Paul stan’s nuclear secrets to other nations was a IN THE HOUSE OF REPRESENTATIVES Niemisto, a professor and composer of music crime committed by one super scientist acting Thursday, March 18, 2004 at St. Olaf’s University, and Mr. Dan Maki, without the assistance of the government. professor of History at Finlandia University. I These deadly sales to North Korea and other Mr. GERLACH. Mr. Speaker, I rise today to am proud of their commitment to education rogue nations represent defiance and revenge recognize the American Legion’s Eighth Dis- and their contribution to their individual profes- expressed by a nation that deems itself to trict Commander and Wawassan Post 422 sions. have been grossly mistreated. Post Commander Alfred P. Gerhardt, Jr. Emergency diplomatic and economic assist- Alfred P. Gerhardt, Jr. received his draft no- Mr. Speaker, I ask you and our House col- ance are needed to save Pakistan from be- tice on Pearl Harbor Day, December 7, 1966 leagues to join me in wishing the best to the coming a Taliban victim or an overt enemy. and spent three months and ten days at Fort people of Pelkie in celebrating 70 years of Loyalties in the nation are now almost evenly Lewis, Washington when he was honorably education at Pelkie Agricultural School and the divided and the present government is walking discharged on April 27, 1967. seven original one-room country school on a very thin line. Diverting just a quarter of In 1968, he went to Baptist Bible College in houses. We also extend a hearty, ‘‘Well the economic assistance approved for Iraq to Clarks Summitt, Pennsylvania as a part-time Done!’’ to the Reunion Planning Committee. I Pakistan would send a meaningful message to student during the spring semester and even- am sure that many former Pelkie residents will our long-term ally. Who is losing Pakistan? tually went on to work as a nursing assistant be drawn back home for this celebration, so The Iraq obsessed White House is losing at the Coatesville Veterans Administration that families may be reunited, old friendships Pakistan. Hospital in Coatesville. He subsequently re- renewed, and a remarkable quality of life re- Problems in Iraq are impacting on all types tired from there after 15 years of service on discovered. and levels of decision-making in Washington. March 28, 1998.

VerDate jul 14 2003 04:06 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00011 Fmt 0626 Sfmt 9920 E:\CR\FM\A18MR8.047 E18PT1 E414 CONGRESSIONAL RECORD — Extensions of Remarks March 18, 2004 In the summer of 1977, Mr. Gerhardt trans- scholar—Professor Istva´n Dea´k, the Seth Low continued to produce brilliant work on the ferred his American Legion membership to Professor Emeritus of History at Columbia Hungarian Revolution as well as the history of Wawassan Post No. 422 in Honey Brook. He University, and a world-renowned expert about European Nationalism. was elected and installed as Post Chaplain on 19th and 20th century Europe. the night of his official transfer and held that Professor Dea´k was born in 1926 in Hun- Mr. Speaker, in addition to his extraordinary post until he became the 43rd Post Com- gary and after surviving the Second World research and writing talents, Professor Dea´k mander on September 15, 1980. He then was War, enrolled in college at the University of devoted much time to his students, both at appointed Post Adjutant and served in that of- Budapest. Later, after Hungary was overtaken Columbia and around the world. He lectured in fice continuously for all but two years. Even by the communist regime, Professor Dea´k fled universities in Germany and the United States, during his tenure as Post Commander, he his homeland and arrived in the United States where he continuously taught his students to more than often handled many of the respon- in 1956. He earned his Doctorate in Modern be critical thinkers. He also stressed to his sibilities of the Post’s Adjutant. European History from Colombia University in students the idea that history should be con- On September 13, 1982, Alfred Gerhardt 1964 and then began a distinguished career sidered an art and that their historical prose became the 55th Chester County Commander as a professor there. and was only the second member of his Post Mr. Speaker, Professor Dea´k has focused should be elegant. to hold this office. He later served as Chester his research on the history of resistance, col- Professor Dea´k is a prodigious writer him- County Adjutant and as Deputy District Com- laboration and retribution of political move- self and has authored numerous articles, re- mander for many years. His service as Post ments in 19th and 20th century Europe. His views, and books, including; Weimar Ger- Commander resumed again on two separate research and publications on this topic has many’s Left-Wing intellectuals: A Political his- occasions from September 19, 1994 through been extraordinary and has provided great in- tory of the Weltbuhne and its Circle and Be- September 16, 1996 and from September 21, sight into this often neglected area of aca- yond Nationalism: a Social and Political His- 1998 through September 18, 2000. Through- demic pursuit. Professor Dea´k’s research has out many of his years of service, Alfred was been especially important when compared to tory of the Habsburg Officer Corps, 1848– the acting Post Service Officer and Post Histo- his colleagues working on similar topics but 1918. He continues to prove himself as an ar- rian. It was in July of 2002 that he became the trapped in Eastern Bloc countries. While Pro- ticulate and gifted historian; his recent essays Eighth District Commander. fessor Dea´k was able to write and research have been published in the New York Review Mr. Speaker, I ask my colleagues to join me unfettered, his colleagues in Eastern Europe of Books and The New Republic, and he also today in recognizing Alfred P. Gerhardt, Jr. for were dictated to and directed by party rulers recently published a book entitled Essays on all his years of dedicated and exemplary serv- that desired to rewrite the history of their re- Hitler’s Europe. ice to the American Legion and his fellow vet- gimes in the best possible light. Mr. Speaker, ´ ´ erans. it should be pointed out that while Professor Mr. Speaker, Professor Istvan Deak is an f Dea´k was able to work freely in this country, extraordinary scholar and his work on collabo- ration and resistance has provided numerous A TRIBUTE TO ISTVA´ N DEA´ K his work was hindered by the fact that many of his crucial sources remained behind the invaluable lessons to our generation and fu- HON. TOM LANTOS Iron Curtain, and were often only available to ture generations. I urge all my colleagues to members of the Communist party. As a result, join me in paying tribute to him today. OF CALIFORNIA Professor Dea´k often traveled to Hungary for IN THE HOUSE OF REPRESENTATIVES his research, placing himself in danger. The Thursday, March 18, 2004 ruling regime had the power to interrupt his Mr. LANTOS. Mr. Speaker, I rise today to travel if his work was deemed a threat. Un- pay tribute to a most talented and remarkable daunted by these constraints, Professor Dea´k

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HIGHLIGHTS The House passed H.R. 1375, Financial Services Regulatory Relief Act. Senate Chamber Action Committee Meetings The Senate was not in session today. It will next No committee meetings were held. meet on Monday, March 22, 2004, at 12 noon. h House of Representatives business is less than 85% in nature, limits branching Chamber Action to those ILCs who had Federal deposit insurance be- Measures Introduced: 16 public bills, H.R. fore October 1, 2003; strikes certain sections of the 3993–4008; 1 private bill, H.R. 4009; and; 4 reso- bill; makes technical corrections; Pages H1262–64 lutions, H. Con. Res. 390–392, and H. Res. 571 Waters amendment that strikes a section of the were introduced. Pages H1321–22 bill that reduces the minimum waiting period from Additional Cosponsors: Pages H1322–23 15 calendar days to five calendar days for banks and bank holding companies to merge with or acquire Reports Filed: Reports were filed today as follows: other bank or bank holding companies after the De- H. Res. 522, expressing the sense of the House of partment of Justice has approved a bank merger; Representatives that there is a critical need to in- Page H1264 crease awareness and education about heart disease Bachus amendment that strikes the section of the and the risk factors of heart disease among women bill relating to the liability standards applied to (H. Rept. 108–440). Page H1321 third-party independent contractors working for a Chaplain: The prayer was offered today by Rabbi bank; and Pages H1264–65 Elie Spitz, Congregation B’nai Israel in Tustin, Cali- Kelly/Toomey amendment that adds a new title at fornia. Page H1231 the end of the bill which removes the prohibition on Financial Services Regulatory Relief Act: The banks from paying interest on business checking ac- House passed H.R. 1375, to provide regulatory relief counts and would allow the Federal Reserve to pay and improve productivity for insured depository in- interest on so-called ‘‘sterile’’ reserves (agreed to by stitutions, by a yea-and-nay vote of 392 yeas to 25 a recorded vote of 418 ayes with none voting ‘‘no’’, nays, Roll No. 69. Pages H1234–41, H1241–74 Roll No. 68). Pages H1268–71, H1272–73 The amendment in the nature of a substitute rec- Rejected: ommended by the Committees on Financial Services Weiner amendment that prohibits commercial and the Judiciary now printed in the bill was con- banks for charging a fee to the depositor of a check sidered as an original bill for the purpose of amend- that is returned for insufficient funds (rejected by a ment. Pages H1251–62 recorded vote of 167 ayes to 255 noes, Roll No. 66); Agreed to: and Pages H1265–67, H1271 Oxley amendment that limits de novo branching Jackson-Lee amendment that expresses the sense of for ILCs to those whose business is more than 85% Congress that in situations where a requesting agen- financial in nature and, in the case of ILCs whose cy obtains expedited action to approve a merger D251

VerDate jul 14 2003 04:05 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00001 Fmt 0627 Sfmt 0627 E:\CR\FM\D18MR4.REC D18MR4 D252 CONGRESSIONAL RECORD — DAILY DIGEST March 18, 2004 transaction application between multiple depository Calendar Wednesday: Agreed to dispense with the institutions, that careful consideration is placed on Calendar Wednesday business of Wednesday, March the impact that the transaction will have on affected 24. Page H1276 communities and customers of any or all of the ap- Quorum Calls—Votes: Three yea-and-nay votes plicant institutions (rejected by a recorded vote of and three recorded votes developed during the pro- 194 ayes to 225 noes, Roll No. 67). ceedings today. There were no quorum calls. Pages H1267–68, H1272 Pages H1271, H1272, H1272–73, H1273–74, H1274, H1275 The Clerk was authorized to make technical and Adjournment: The House met at 10 a.m. and ad- conforming changes to the bill. Page H1274 journed at 5:54 p.m. H. Res. 566, the rule providing for consideration of the bill was agreed to by a voice vote. Suspensions: The House agreed to suspend the rules Committee Meetings and pass the following measures: AGRICULTURE, RURAL DEVELOPMENT, FDA AND RELATED AGENCIES Counter-Terrorism and Narco-Terrorism Re- APPROPRIATIONS wards Program Act: Debated on March 17, H.R. 3782, amended, to amend the State Department Committee on Appropriations: Subcommittee on Agri- Basic Authorities Act of 1956 to increase the max- culture, Rural Development, Food and Drug Agency imum amount of an award available under the De- and Related Agencies held a hearing on Food Safety partment of State rewards program, to expand the and Inspection Service. Testimony was heard from eligibility criteria to receive an award, to authorize the following officials of the USDA: Elsa A. Murano, nonmonetary awards, to publicize the existence of Under Secretary, Food Safety; Barbara J. Masters, the rewards program, by a 2/3 yea-and nay-vote of Acting Administrator, Food Safety and Inspection 414 yeas with none voting ‘‘nay’’, Roll No. 70; and Service; and Stephen J. Dewhurst, Budget Officer. Page H1274 COMMERCE, JUSTICE, STATE, JUDICIARY Recognizing more than five decades of strategic AND RELATED AGENCIES partnership between the U.S. and the people of the APPROPRIATIONS Marshall Islands: Debated on March 17, H. Con. Committee on Appropriations: Subcommittee on Com- Res. 364, to recognize more than 5 decades of stra- merce, Justice, State, Judiciary and Related Agencies tegic partnership between the United States and the held a hearing on the Patent and Trademark Office. people of the Marshall Islands in the pursuit of Testimony was heard from Jon Dudas, Director, U.S. international peace and security, by a 2/3 yea-and- Patent and Trademark Office, Department of Com- nay vote of 408 yeas with none voting ‘‘nay’’, Roll merce. No. 71. Pages H1275–76 The Subcommittee also held a hearing on State Committee on Standards of Official Conduct for and Local Law Enforcement Assistance. Testimony the 108th Congress—Appointments: The Chair was heard from the following officials of the Depart- announced the Speaker’s appointment of the fol- ment of Justice: Deborah J. Daniels, Assistant Attor- lowing members to be available to serve on inves- ney General, Office of Justice Programs; and Carl R. tigative subcommittees of the Committee on Stand- Peed, Director, Community Oriented Policing Serv- ards of Official Conduct for the 108th Congress: ices. Representatives Doolittle, Sam Johnson (TX), Lin- FOREIGN OPERATIONS, EXPORT coln Diaz-Balart (FL), English, Shadegg, Brady (TX), FINANCING AND RELATED PROGRAMS Simpson, Terry, Kirk, and Rehberg. Page H1277 APPROPRIATIONS Later, the Chair read a letter from the Minority Leader, wherein she appointed the following mem- Committee on Appropriations: Subcommittee on Foreign bers to be available for service on an investigative Operations, Export Financing and Related Programs subcommittee of the Committee on Standards of Of- held a hearing on International HIV/AIDS Assist- ficial Conduct: Representatives Becerra, Cooper, ance Request. Testimony was heard from Ambas- Delahunt, McCarthy (NY), McIntyre, McNulty, sador Randall Tobias, Global AIDS Coordinator. Schiff, Scott (VA), Stupak, and Tauscher. Page H1277 HOMELAND SECURITY APPROPRIATIONS Meeting Hour: Agreed that when the House ad- Committee on Appropriations: Subcommittee on Home- journs today, it adjourn to meet at noon on Monday, land Security held a hearing on Office of Domestic March 22, and further that when it adjourns on that Preparedness. Testimony was heard from Suzanne day, it adjourn to meet at 12:30 p.m. on Tuesday, Mencer, Director, Office for Domestic Preparedness, March 23 for Morning Hour debate. Page H1276 Department of Homeland Security.

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INTERIOR APPROPRIATIONS Brooks, Administrator, National Nuclear Security Committee on Appropriations: Subcommittee on Interior Administration; and Jessie Hill Roberson, Assistant held a hearing on Oversight: Presidio Trust. Testi- Secretary, Environmental Management. mony was heard from Craig Middleton, Executive Director, Presidio Trust, and a public witness. NATIONAL DEFENSE AUTHORIZATION BUDGET REQUEST—DEFENSE HEALTH LABOR, HHS, EDUCATION AND RELATED AGENCIES APPROPRIATIONS PROGRAMS Committee on Appropriations: Subcommittee on Labor, Committee on Armed Services: Subcommittee on Total Health and Human Services, Education and Related Force held a hearing on the Fiscal Year 2005 Na- Agencies held a hearing on the Department of Edu- tional Defense Authorization Budget Request on De- cation. Testimony was heard from the following offi- fense Health Programs—Current and Future Issues. cials of the Department of Education: Gene Hickok, Testimony was heard from the following officials of Acting Deputy Secretary; and Ray Simon, Assistant the Department of Defense: William Winkenwerder, Secretary, Elementary and Secondary Education. Jr., M.D., Assistant Secretary, Health Affairs; Ltg. DEPARTMENT—REDESIGNATION James B. Peake, M.D.,USA, Surgeon General of the Army; VAdm. Michael L. Cowan, M.D., USN, Sur- Committee on Armed Services: Held a hearing on H.R. geon General of the Navy; and Ltg. George P. Tay- 1741, To redesignate the position of the Secretary of lor, Jr., M.D., USMC, Surgeon General of the Air the Navy as the Secretary of the Navy and the Ma- Force; and public witnesses. rine Corps. Testimony was heard from William S. Dudley, Director, Naval History, Naval Historical DEFINED BENEFIT PLANS—REFORM AND Center, Department of the Navy; and public wit- STRENGTHEN nesses. Committee on Education and the Workforce: Sub- NATIONAL DEFENSE AUTHORIZATION committee on Employer-Employee Relations held a BUDGET REQUEST—TRAINING TRANSFORMATION hearing entitled ‘‘Reforming and Strengthening De- fined Benefit Plans: Examining the Health of the Committee on Armed Services: Subcommittee on Readi- Multiemployer Pension System.’’ Testimony was ness and the Subcommittee on Terrorism, Unconven- heard from Barbara Bovbjerg. Director, Education, tional Threats and Capabilities held a joint hearing Workforce, and Income Security Issues, GAO; and on the Fiscal Year 2005 National Defense Authoriza- public witnesses. tion budget request—Training Transformation—Ex- amination of the Joint National Training Capability. NATIONAL HIGHWAY TRAFFIC SAFETY Testimony was heard from the following officials of ADMINISTRATION REAUTHORIZATION the Department of Defense: Paul W. Mayberry, Dep- uty Under Secretary (Readiness); MG Gordon Nash, Committee on Energy and Commerce: Subcommittee on USMC, Commander, Joint Warfighting Center, and Commerce, Trade and Consumer Protection held a Director, Joint Training, U.S. Joint Command, hearing entitled ‘‘Reauthorization of the National RADM David T. Hart, Jr., USN, Director, Fleet Highway Traffic Safety Administration.’’ Testimony Readiness Division, and Michael P. Bailey, Technical was heard from Jeffrey W. Runge, M.D., Adminis- Director, Technology Division, Training and Edu- trator, National Highway Traffic Safety Administra- cation Command, U.S. Marine Corps, all with the tion, Department of Transportation; and public wit- Department of the Navy; BG Louis W. Weber, nesses. USA, Director of Training, Training Directorate (DAMO-TR), Department of the Army; and BG INTER-GOVERNMENTAL TRANSFERS Norman R. Seip, USAF, Deputy Director, Oper- Committee on Energy and Commerce: Subcommittee on ations and Training, Deputy Chief of Staff, Air and Health held a hearing entitled ‘‘Inter-governmental Space, Department of the Air Force. Transfers: Violations of the Federal-State Medicaid DOE’S ATOMIC ENERGY DEFENSE Partnership or Legitimate State Budget Tool?’’ Testi- ACTIVITIES BUDGET mony was heard from George Reeb, Assistant In- Committee on Armed Services: Subcommittee on Stra- spector General, Centers for Medicare and Medicaid tegic Forces held a hearing on the Department of Audits, Office of Inspector General, Department of Energy’s Atomic Energy Defense Activities Budget. Health and Human Services; Kathryn G. Allen, Di- Testimony was heard from. The following officials of rector, Health Care—Medicaid and Private Health the Department of Energy: Ambassador Linton Insurance Issues, GAO; and a public witness.

VerDate jul 14 2003 04:05 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00003 Fmt 0627 Sfmt 0627 E:\CR\FM\D18MR4.REC D18MR4 D254 CONGRESSIONAL RECORD — DAILY DIGEST March 18, 2004 SUCCESSFUL HOMEOWNERSHIP AND Security. Testimony was heard from the following RENTING THROUGH HOUSING officials of the Department of Homeland Security: COUNSELING Robert M. Jacksta, Executive Director, Border Secu- Committee on Financial Services: Subcommittee on rity and Facilitation, U.S. Customs and Border Pro- Housing and Community Opportunity held a hear- tection; Robert A. Mocny, Deputy Director, US ing entitled ‘‘Successful Homeownership and Rent- VISIT Office; and Alfonso Martinez-Fonts, Jr., Spe- ing through Housing Counseling.’’ Testimony was cial Assistant to the Secretary for Private Sector; and heard from John Weicher, Assistant Secretary, Hous- Randolph C. Hite, Director, Information Technology ing/Federal Housing Commissioner, Department of Architecture and Systems Issues, GAO. Housing and Urban Development; and public wit- ATLANTIC STRIPED BASS CONSERVATION nesses. ACT REAUTHORIZATION THE HUNT FOR SADDAM’S MONEY Committee on Resources: Subcommittee on Fisheries Committee on Financial Services: Subcommittee on Conservation, Wildlife and Oceans held a hearing on Oversight and Investigations held a hearing entitled H.R. 3883, To reauthorize the Atlantic Striped Bass ‘‘The Hunt for Saddam’s Money: U.S. and Foreign Conservation Act. Testimony was heard from John Efforts to Recover Iraq’s Stolen Money.’’ Testimony H. Dunnigan, Director, Office of Sustainable Fish- was heard from Juan Zarate, Deputy Assistant Sec- eries, National Marine Fisheries Service, NOAA, De- retary, Executive Office of Terrorist Financing and partment of Commerce; W. P. Jensen, Deputy Sec- Financial Crimes, Department of the Treasury; Paul retary, Department of Natural Resources, State of E. Simons, Deputy Assistant Secretary, Energy, Sanc- Maryland; and public witnesses. tions and Commodities, Bureau of Economic and Business Affairs, Department of State; and the fol- PRESIDENTIAL AWARDEES FOR lowing officials of the GAO: Joseph A. Christoff, Di- EXCELLENCE IN MATH AND SCIENCE rector, International Affairs and Trade; and Davi M. TEACHING D’Agostino, Director, Financial Markets and Com- Committee on Science: Held a hearing on The Presi- munity Investment. dential Awardees for Excellence in Math and Science MISCELLANEOUS MEASURE; INTERNET Teaching: A Lesson Plan for Success. Testimony was PHARMACY CONSUMER PROTECTION ACT; heard from public witnesses. COMMITTEE BUSINESS SPACE TRANSPORTATION—NASA AND Committee on Government Reform: Ordered reported DOD COOPERATION H.R. 3917, To designate the facility of the United Committee on Science: Subcommittee on Space and Aer- States Postal Service located at 695 Marconi Boule- onautics held a hearing on NASA-Department of vard in Copiague, New York, as the ‘‘Maxine S. Defense Cooperation in Space Transportation. Testi- Postal United States Post Office.’’ mony was heard from Craig Steidle, Associate Ad- The Committee held a hearing entitled ‘‘A Pre- ministrator, Office of Exploration Systems, NASA; scription for Safety: The Need for H.R. 3880, Inter- the following officials of the Department of Defense: net Pharmacy Consumer Protection Act.’’ Testimony Robert Dickman, Deputy for Military Space, Office was heard from William Hubbard, Associate Com- of the Under Secretary of the Air Force; and Ron missioner, Policy and Planning, FDA, USDA; and Sega, Director, Defense Research and Engineering public witnesses. and Chief Technical Adviser to the Secretary; and a The Committee also approved pending Committee public witness. business. U.S. RUSSIA RELATIONS—PUTIN’S SECOND HEALTH SAVINGS ACCOUNTS TERM Committee on Small Business: Subcommittee on Work- Committee on International Relations: Held a hearing on force, Empowerment and Government Programs held U.S.—Russia Relations in Putin’s Second Term. Tes- a hearing entitled ‘‘The Benefits of Health Savings timony was heard from A. Elizabeth Jones, Assistant Accounts.’’ Testimony was heard from Representa- Secretary, Bureau of European and Eurasian Affairs, tive Crane; and public witnesses. Department of State; and public witnesses. BUDGET REQUESTS—DEPARTMENT OF OVERSIGHT—US VISIT HOMELAND SECURITY Committee on the Judiciary: Subcommittee on Immi- Committee on Transportation and Infrastructure: Sub- gration, Border Security and Claims, oversight hear- committee on Economic Development, Public Build- ing on US VISIT: A Down Payment on Homeland ings and Emergency Management held a hearing on

VerDate jul 14 2003 04:05 Mar 19, 2004 Jkt 029060 PO 00000 Frm 00004 Fmt 0627 Sfmt 0627 E:\CR\FM\D18MR4.REC D18MR4 March 18, 2004 CONGRESSIONAL RECORD — DAILY DIGEST D255 the Fiscal Year 2005 Budget Request for the De- and the Small Business Investment Act of 1958 partment of Homeland Security’s Emergency Pre- through April 2, 2004. Signed on March 15, 2004. paredness and Response Directorate, the Office of (Public Law 108–205) Domestic Preparedness, and First Responder Fund- S. 714, to provide for the conveyance of a small ing. Testimony was heard from Michael D. Brown, parcel of Bureau of Land Management land in Doug- Under Secretary, Emergency Preparedness and Re- las County, Oregon, to the county to improve man- sponse, Department of Homeland Security. agement of and recreational access to the Oregon HEALTH QUALITY INITIATIVES Dunes National Recreation Area. Signed on March 15, 2004. (Public Law 108–206) Committee on Ways and Means: Subcommittee on Health held a hearing on Health Quality Initiatives. f Testimony was heard from Carolyn Clancy, M.D., COMMITTEE MEETING FOR FRIDAY, Director, Agency for Healthcare Research and Qual- ity, Department of Health and Human Services; MARCH 19, 2004 Glenn M. Hackbarth, Chairman, Medicare Payment (Committee meetings are open unless otherwise indicated) Advisory Commission; and public witnesses. Senate SSA’S MANAGEMENT—TICKET TO WORK PROGRAM No meetings/hearings scheduled. Committee on Ways and Means: Subcommittee on So- House cial Security held a hearing on the SSA’s Manage- No committee meetings are scheduled. ment of the Ticket to Work Program. Testimony was heard from Martin H. Gerry, Deputy Commis- f sioner, Disability and Income Security Programs, CONGRESSIONAL PROGRAM AHEAD SSA; Troy R. Justesen, Acting Deputy Assistant Sec- retary, Office of Special Education and Rehabilita- Week of March 22 through March 27, 2004 tion Services, Department of Education; and public witnesses. Senate Chamber FASTER AND SMARTER FUNDING FOR On Monday, at 2 p.m., Senate will resume consid- FIRST RESPONDERS ACT eration of S. 1637, Jumpstart Our Business Strength Select Committee on Homeland Security: Ordered re- (JOBS) Act. ported, as amended, H.R. 3266, Faster and Smarter During the balance of the week, Senate may con- Funding for First Responders Act of 2003. sider any other cleared legislative and executive busi- ness. Joint Meetings Senate Committees VETERANS PROGRAMS (Committee meetings are open unless otherwise indicated) Joint Hearings: Senate Committee on Veterans Affairs Committee on Appropriations: March 23, Subcommittee and the House Committee on Veterans Affairs con- on Energy and Water Development, to hold hearings to cluded joint hearings to examine the legislative pres- examine proposed budget estimates for fiscal year 2005 entations of the Air Force Sergeants Association, Re- for the Department of Energy’s Office of National Nu- tired Enlisted Association, Gold Star Wives of clear Security Administration, 10 a.m., SD–192. March 23, Subcommittee on Homeland Security, to America, and Fleet Reserve Association, after receiv- hold hearings to examine proposed budget estimates for ing testimony from CMSgt. Jim Lekovic, USAF fiscal year 2005 for the Transportation Security Adminis- (Ret.), Air Force Sergeants Association, Suitland, tration and the United States Coast Guard, both of the Maryland; Msgt. David L. Washington, USAF Department of Homeland Security, 10 a.m., SD–124. (Ret.), Retired Enlisted Association, Aurora, Colo- March 23, Subcommittee on Commerce, Justice, State, rado; Rachel Clinkscale, Gold Star Wives of Amer- and the Judiciary, to hold hearings to examine the trans- ica, Inc., Arlington, Virginia; and Joseph L. Barnes, formation of the Federal Bureau of Investigation, focusing Fleet Reserve Association, Alexandria, Virginia. on information technology, management and training, 10:30 a.m., SD–116. f March 24, Subcommittee on Energy and Water Devel- NEW PUBLIC LAWS opment, to hold hearings to examine the Bureau of Rec- lamation’s Animas-La Plata Project, 10 a.m., SD–124. (For last listing of Public Laws, see, DAILY DIGEST, p. D177) March 24, Subcommittee on Defense, to hold hearings H.R. 3915, to provide for an additional temporary to examine proposed budget estimates for fiscal year 2005 extension of programs under the Small Business Act for the Department of the Air Force, 10 a.m., SD–192.

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March 25, Subcommittee on Labor, Health and Human Committee on Energy and Natural Resources: March 24, Services, and Education, to hold hearings to examine pro- business meeting to consider pending calendar business, posed budget estimates for fiscal year 2005 for the De- 11:30 a.m., SD–366. partment of Health and Human Services, 9:30 a.m., March 24, Subcommittee on Public Lands and Forests, SD–192. to hold hearings to examine S. 433, to provide for en- March 25, Subcommittee on Interior, to hold hearings hanced collaborative forest stewardship management to examine proposed budget estimates for fiscal year 2005 within the Clearwater and Nez Perce National Forests in for the Department of the Interior, 9:30 a.m., SD–124. Idaho, S. 2180, to direct the Secretary of Agriculture to Committee on Armed Services: March 23, to hold hearings exchange certain lands in the Arapaho and Roosevelt Na- to examine atomic energy defense activities of the Depart- tional Forests in the State of Colorado, and H.R. 1964, ment of Energy relating to the Defense Authorization re- to assist the States of Connecticut, New Jersey, New quest for fiscal year 2005, 9:30 a.m., SD–106. York, and Pennsylvania in conserving priority lands and March 23, Subcommittee on Readiness and Manage- natural resources in the Highlands region, 2:30 p.m., ment Support, to hold hearings to examine the Defense SD–366. Authorization Request for fiscal year 2005, 9:30 a.m., March 25, Subcommittee on Water and Power, to hold SD–106. hearings to examine S. 1085, to provide for a Bureau of Committee on Armed Services: March 23, to hold hearings Reclamation program to assist states and local commu- to examine atomic energy defense activities of the Depart- nities in evaluating and developing rural and small com- ment of Energy relating to the Defense Authorization re- munity water supply systems, and S. 1732, to direct the quest for fiscal year 2005, 9:30 a.m., SD–106. Secretary of the Interior to establish a rural water supply March 23, Subcommittee on Readiness and Manage- program in the Reclamation States to provide a clean, ment Support, to hold hearings to examine the Defense safe, affordable, and reliable water supply to rural resi- Authorization Request for fiscal year 2005, focusing on dents, 2:30 p.m., SD–366. Department of Defense financial management, 2:30 p.m., Committee on Environment and Public Works: March 23, SR–232A. to hold oversight hearings to examine the implementation March 24, Subcommittee on Strategic Forces, to hold of the United Nations Convention on the Law of the Sea, hearings to examine the proposed Defense Authorization 2 p.m., SD–406. Request for fiscal year 2005, focusing on strategic forces March 24, Full Committee, to hold hearings to exam- and capabilities, 9:30 a.m., SR–222. ine the environmental impacts on the United States nat- March 24, Subcommittee on Airland, to hold hearings ural gas supply, 10 a.m., SD–406. to examine Navy and Air Force aviation programs in re- Committee on Foreign Relations: March 23, to hold hear- view of the Defense Authorization request for fiscal year ings to examine the current status of United States and Mexico relations, focusing on immigration policy and the 2005 and future years defense program, 2 p.m., SR–232A bilateral relationship, 9:30 a.m., SD–419. March 25, Full Committee, to hold hearings to exam- March 24, Full Committee, to hold hearings to exam- ine the role of the U.S. Northern Command and U.S. ine intellectual property piracy issues, 9:30 a.m., SD–419. Special Operations Command in defending the homeland March 25, Full Committee, to hold hearing to examine and in the global war on terrorism, in review of the de- proposed legislation to amend the African Growth and fense authorization request for fiscal year 2005; to be fol- Opportunity Act to expand certain trade benefits to eligi- lowed by a closed session in SH–219, 9:30 a.m., SH–216. ble sub-Saharan African countries, 9:30 a.m., SD–419. March 25, Subcommittee on Strategic Forces, to hold Committee on Governmental Affairs: March 23, to hold hearings to examine national security space programs and joint hearings with the House Committee on Government management in review of the Defense Authorization re- Reform to examine U.S. Postal Service reform issues, 2:30 quest for fiscal year 2005, 2:30 p.m., SR–232A. p.m., 2154 RHOB. Committee on Banking, Housing, and Urban Affairs: March 24, Permanent Subcommittee on Investigations, March 23, to resume hearings to examine current inves- to hold hearings to examine problems facing the credit tigations and regulatory actions regarding the mutual counseling industry, focusing on cases of misconduct fund industry, focusing on fund operations and govern- among credit card counseling agencies and their for-profit ance, 10 a.m., SD–538. service providers and what solutions may be available to March 24, Subcommittee on Housing and Transpor- repair the industry, 9 a.m., SD–342. tation, to hold hearings to examine the real estate ap- Committee on Health, Education, Labor, and Pensions: praisal industry, focusing on related issues involving fi- March 25, Subcommittee on Employment, Safety, and nancial markets and community investments, risk man- Training, to hold hearings to examine hazard communica- agement, and consumer protection, 2:30 p.m., SD–538. tion in the workplace, 10 a.m., SD–430. March 25, Subcommittee on Economic Policy, to hold Committee on Indian Affairs: March 24, to hold hearings an oversight hearing to examine national flood insurance to examine S. 1529, to amend the Indian Gaming Regu- repetitive losses, 10 a.m., SD–538. latory Act to include provisions relating to the payment March 25, Full Committee, to hold hearings to exam- and administration of gaming fees, 9:30 a.m., SR–485. ine the President’s proposed budget request for fiscal year Committee on the Judiciary: March 23, to hold hearings 2005 for the Federal Transit Administration, Department to examine a proposed constitutional amendment to pre- of Transportation, 2 p.m., SD–538. serve traditional marriage, 10 a.m., SD–226.

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March 23, Full Committee, to hold hearings to exam- Agencies, on Rural Development, 9:30 a.m., 2362A Ray- ine the challenges and solutions involving the counter- burn. feiting and theft of tangible intellectual property, 2:30 March 25, Subcommittee on Commerce, Justice, State, p.m., SD–226. Judiciary and Related Agencies, on SBA, 10 a.m., and on March 24, Full Committee, to hold hearings to exam- U.S. Trade Representative, 2 p.m., H–309 Capitol. ine the nomination of Paul S. Diamond, to be United March 25, Subcommittee on Energy and Water Devel- States District Judge for the Eastern District of Pennsyl- opment, executive, on National Nuclear Security Admin- vania, 10 a.m., SD–226. istration, 10 a.m., 2362B Rayburn. Committee on Veterans’ Affairs: March 25, to hold joint March 25, Subcommittee on Homeland Security, on hearings with the House Committee on Veterans’ Affairs Bureau of Customs and Border Protection, 10 a.m., and to examine the legislative presentations of the National on United States Citizenship and Immigration Services, 2 Association of State Directors of Veterans Affairs, p.m., 2359 Rayburn. AMVETS, American Ex-Prisoners of War, the Vietnam March 25, Subcommittee on Interior, on Smithsonian, Veterans of America, and the Military Officers Associa- 10 a.m., B–308 Rayburn. tion of America, 10 a.m., 345 CHOB. March 25, Subcommittee on Labor, Health and Human Special Committee on Aging: March 22, to hold hearing Services, Education and Related Agencies, on Child De- to examine certain criminal situations involving seniors velopment Research and Programs, 10 a.m., 2358 Ray- with dementia, focusing on a recent tragedy in Ocala, burn. Florida, involving the death of a senior citizen suffering March 25, Subcommittee on Military Construction, on from dementia and the killing of a local police officer, 2 European Command, 9:30 a.m., B–300 Rayburn. p.m., SD–628. March 25, Subcommittee on Transportation, Treasury March 23, Full Committee, to hold hearings to exam- and Independent Agencies, on Highway Safety Programs, ine the impact of Internet fraud on seniors, focusing on 10 a.m., 2358 Rayburn. congressional efforts to ensure that federal and state en- March 25, Subcommittee on VA, HUD and Inde- forcement agencies take the proper steps to protect sen- pendent Agencies, to continue appropriation hearings, iors and prosecute cybercriminals, 10 a.m., SD–628. 9:30 a.m. and 1:30 p.m., H–143 Capitol. House Chamber March 26, Subcommittee on Commerce, Justice, State, Judiciary and Independent Agencies, on EEOC, 2 p.m., Program to be announced. H–309 Capitol. House Committees Committee on Armed Services, March 24, hearing on the Fiscal Year 2005 National Defense Authorization budget Committee on Appropriations, March 23, Subcommittee request from the Department of Defense, 10 a.m., 2118 on Labor, Health and Human Services, Education and Re- lated Agencies, on Education Programs, 10 a.m., 2358 Rayburn. Rayburn. March 24, Subcommittee on Readiness, hearing on the March 24, Subcommittee on Agriculture, Rural Devel- Pre-positioned Equipment Programs of the United States opment, Food and Drug Administration and Related Army and United States Marine Corps, 2 p.m., 2118 Agencies, on Legal Activities; DEA; Bureau of Alcohol, Rayburn. Tobacco, Firearms and Explosives, 10 a.m., and on U.S. March 24, Subcommittee on Total Force, hearing on Marshals Service and Federal Prison System, 2 p.m., the Fiscal Year 2005 National Defense Authorization H–309 Capitol. budget request—Military Personnel Policy, Benefits and March 24, Subcommittee on Energy and Water Devel- Compensation Overview, 1 p.m., 2212 Rayburn. opment, on Nuclear Waste Disposal and Environmental March 25, Subcommittee on Readiness, hearing on the Management, 10 a.m., 2362B Rayburn. 2005 Base Realignment and Closure Process, 1 p.m., March 24, Subcommittee on Homeland Security, on 2118 Rayburn. Emergency Preparedness and Response, 10 a.m., 2360 March 25, Subcommittee on Strategic Forces, hearing Rayburn. on the Fiscal Year 2005 National Defense Authorization March 24, Subcommittee on Labor, Health and Human request—Missile Defense Programs, 10 a.m., 2212 Ray- Services, Education and Related Agencies, on Health Re- burn. sources and Services Administration, 10:15 a.m., on Ad- March 25, Subcommittee on Tactical Air and Land ministration for Children and Families, 11:20 a.m, and Forces, hearing on the Fiscal Year 2005 National Defense on Secretary of Education, 1 p.m., 2358 Rayburn. Authorization budget request—Department of the Navy March 24, Subcommittee on Transportation, Treasury and Department of the Air Force Tactical Weapon Acqui- and Independent Agencies, on OMB, 10 a.m., 2358 Ray- sition Programs, 9 a.m., 2118 Rayburn. burn. March 25, Subcommittee on Terrorism, Unconven- March 24, Subcommittee on VA, HUD and Inde- tional Threats and Capabilities, hearing on the Fiscal pendent Agencies, on Chemical Safety Hazard Investiga- Year 2005 National Defense Authorization budget re- tion Board, 10 a.m., and on Corporation for National and quest—Department of Defense Science and Technology Community Service, 11 a.m., H–143 Capitol. Policy and Programs, 2 p.m., 2212 Rayburn. March 25, Subcommittee on Agriculture, Rural Devel- Committee on Energy and Commerce, March 24, hearing on opment, Food and Drug Administration and Related ‘‘The State of U.S. Industry,’’ 10 a.m., 2123 Rayburn.

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March 25, Subcommittee on Health, hearing entitled pronouncements inform an understanding of the original ‘‘NIH: Re-engineering Clinical Research,’’ 10 a.m., 2322 meaning of the laws of the United States, and the Appro- Rayburn. priate Role of Foreign Judgments in the Interpretation of Committee on Financial Services, March 24, Subcommittee American Law, 10 a.m., 2141 Rayburn. on Housing and Community Opportunity, hearing on Committee on Resources, March 24, Subcommittee on H.R. 3755, Zero Down Payment Act of 2004, 10 a.m., Water and Power, oversight hearing on the Bureau of 2128 Rayburn. Reclamation’s Facility Title Transfers: Lessons Learned March 25, full Committee, hearing on the state of the and Future Opportunities; followed by a hearing on H.R. international financial system, 10 a.m., 2128 Rayburn. 3747, Wallowa Lake Dam Rehabilitation and Water Committee on Government Reform, March 23, Sub- Management Act of 2004, 2 p.m., 1324 Longworth. committee on Criminal Justice, Drug Policy and Human March 25, Subcommittee on Fisheries Conservation, Resources, hearing entitled ‘‘Centers for Faith-Based and Wildlife and Oceans, hearing on H.R. 3378, Marine Tur- Community Initiatives: Progress and Promise,’’ 10 a.m., tle Conservation Act of 2003, 2 p.m., 1324 Longworth. 2154 Rayburn. March 25, Subcommittee on National Parks, Recre- March 24, Subcommittee on Civil Service and Agency ation and Public Lands, hearing on the following bills: Organization, oversight hearing entitled ‘‘Oversight of H.R. 1517, Land Reinvestment Act; H.R. 2663, To au- the Federal Employees Health Benefits Program and the thorize the Secretary of the Interior to study the suit- Federal Long-Term Care Insurance Program,’’ 2 p.m., ability and feasibility of designating Castle Nugent Farms 2203 Rayburn. located on St. Croix, Virgin Islands, as a unit of the Na- March 24, Subcommittee on Criminal Justice, Drug tional Park System; and H.R. 3874, To convey for public Policy and Human Resources, hearing entitled ‘‘DoD purposes certain Federal lands in Riverside County, Cali- Counternarcotics: What Is Congress Getting For Its fornia, that have been identified for disposal, 10 a.m., Money?’’ 10 a.m., 2203 Rayburn. 1324 Longworth. March 24, Subcommittee on Energy Policy, Natural Committee on Rules, March 23, Subcommittee on Legis- Resources and Regulatory Affairs and the Subcommittee lative and Budget Process, to continue hearings to assess on National Security, Emerging Threats and International the effectiveness of the current budget process and con- Relations, joint hearing entitled ‘‘The Homeland Security sider new reform and enforcement proposals—Part II, 11 Department’s Plan to Consolidate and Co-locate Regional a.m., H–313 Capitol. and Field Offices: Improving Communication and Coordi- Committee on Science, March 24, Subcommittee on En- nation,’’ 1 p.m., 2247 Rayburn. ergy, hearing on the Priorities in the Department of En- March 24, Subcommittee on Human Rights and ergy Budget for Fiscal Year 2005, 10 a.m., 2318 Ray- Wellness, hearing entitled ‘‘10 Years after the Implemen- burn. tation of DSHEA: The Status of Dietary Supplements in March 24, Subcommittee on Research and the Sub- the United States,’’ 10 a.m., 2154 Rayburn. committee on Environment, Technology and Standards, March 24, Subcommittee on Technology, Information joint hearing on H.R. 3980, National Windstorm Impact Policy, Intergovernmental Relations and the Census, over- Reduction Act of 2004, 2 p.m., 2318 Rayburn. sight hearing entitled ‘‘Electronic Government: A Committee on Transportation and Infrastructure, March 25, Progress Report on the Successes and Challenges of Gov- Subcommittee on Coast Guard and Maritime Transpor- ernment-wide Information Technology Solutions,’’ 2:30 tation and the Subcommittee on Water Resources and p.m., 2154 Rayburn. Environment, joint hearing on Ballast Water Manage- March 25, full Committee, hearing entitled ‘‘Maintain- ment: New International Standards and National Invasive ing a Level Playing Field for D.C. Graduates: Legislation Species Act Reauthorization, 10 a.m., 2167 Rayburn. to Reauthorize the D.C. College Access Act,’’ 10 a.m., Committee on Veterans’ Affairs, March 24, hearing enti- 2154 Rayburn. tled ‘‘Employing Veterans of Our Armed Forces,’’ 11 Committee on International Relations, March 24, hearing a.m., 334 Cannon. on Safety and Security of Peace Corps Volunteers, 10:30 Committee on Ways and Means, March 24, hearing on a.m., 2172 Rayburn. Board of Trustees 2004 Annual Reports, 1 p.m., 1100 March 24, Subcommittee on the Middle East and Cen- Longworth. tral Asia, hearing on Saudi Arabia and the Fight Against Permanent Select Committee on Intelligence, March 23, Sub- Terrorism Financing, 1:30 a.m., 2172 Rayburn. committee on Human Intelligence, Analysis and Counter- Committee on the Judiciary, March 24, Subcommittee on intelligence, executive, hearing on CIA Compensation Re- Immigration, Border Security, and Claims, oversight form, 4 p.m., H–405 Capitol. hearing entitled ‘‘How Would Millions of Guest Workers March 24, full Committee, executive, hearing on Cen- Impact Working Americans and Americans Seeking Em- tral Intelligence Agency Program Budget, 2 p.m., H–405 ployment?’’ 10 a.m., 2141 Rayburn. Capitol. March 25, Subcommittee on the Constitution hearing March 25, executive, hearing on Joint Military Intel- on H. Res. 568, Expressing the sense of the House of ligence Program and Tactical Intelligence and Related Representatives that Judicial determinations regarding Activities, 10 a.m., H–405 Capitol. the meaning of the laws of the United States should not March 25, Subcommittee on Intelligence Policy and be based on judgments, laws, or pronouncements of for- National Security, executive, briefing on Global Intel- eign institutions unless such foreign judgments, laws, or ligence Updated, 9 a.m., H–405 Capitol.

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March 26, full Committee, executive, hearing on Gen- Committee on Government Reform to examine U.S. Post- eral Defense Intelligence Program, 9 a.m., H–405 Cap- al Service reform issues, 2:30 p.m., 2154 RHOB. itol. Joint Meetings: March 25, Senate Committee on Vet- Select Committee on Homeland Security, March 24, Sub- erans’ Affairs, to hold joint hearings with the House committee on Rules, hearing entitled ‘‘Homeland Secu- Committee on Veterans’ Affairs to examine the legislative rity Jurisdiction: The Perspective of Committee Leaders,’’ presentations of the National Association of State Direc- 12:30 p.m., 2237 Rayburn. tors of Veterans Affairs, AMVETS, American Ex-Prisoners Joint Meetings of War, the Vietnam Veterans of America, and the Mili- tary Officers Association of America, 10 a.m., 345 Joint Meetings: March 23, Senate Committee on Govern- CHOB. mental Affairs, to hold joint hearings with the House

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Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 12 noon, Monday, March 22 12 noon, Monday, March 22

Senate Chamber House Chamber Program for Monday: After the transaction of any Program for Monday: The House will meet in pro morning business (not to extend beyond 2 p.m.), Senate forma session. will resume consideration of S. 1637, Jumpstart Our Business Strength (JOBS) Act.

Extensions of Remarks, as inserted in this issue

HOUSE Kind, Ron, Wisc., E411 Petri, Thomas E., Wisc., E410 Kolbe, Jim, Ariz., E407 Price, David E., N.C., E408 Bereuter, Doug, Nebr., E409 Lantos, Tom, Calif., E414 Ross, Mike, Ark., E409 Bishop, Sanford D., Jr., Ga., E406 Larson, John B., Conn., E412 Rothman, Steven R., N.J., E406 Brown, Corrine, Fla., E403, E404 Levin, Sander M., Mich., E409 Shays, Christopher, Conn., E412 Cardoza, Dennis A., Calif., E404, E405 Lewis, Jerry, Calif., E409 Cramer, Robert E. (Bud), Jr., Ala., E413 Maloney, Carolyn B., N.Y., E410 Sherwood, Don, Pa., E407 Crenshaw, Ander, Fla., E406 Menendez, Robert, N.J., E411 Souder, Mark E., Ind., E408 Davis, Tom, Va., E410 Moore, Dennis, Kansas, E411 Stark, Fortney Pete, Calif., E404, E405 Farr, Sam, Calif., E408 Ney, Robert W., Ohio, E403, E404, E405 Stupak, Bart, Mich., E412 Gerlach, Jim, Pa., E413 Oberstar, James L., Minn., E407 Thompson, Mike, Calif., E407 Hastert, J. Dennis, Ill., E403 Owens, Major R., N.Y., E413 Weller, Jerry, Ill., E407 Kennedy, Mark R., Minn., E403, E404, E405 Pelosi, Nancy, Calif., E410

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