E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 104 CONGRESS, FIRST SESSION

Vol. 141 WASHINGTON, THURSDAY, JUNE 22, 1995 No. 103 House of Representatives

The House met at 10 a.m. point of order that a quorum is not Moorhead Roth Stump present. Morella Roukema Talent f Myers Royce Tate The SPEAKER. Evidently a quorum Myrick Salmon Taylor (NC) PRAYER is not present. Nethercutt Sanford Thomas The Reverend David Sievert, pastor, The Sergeant at Arms will notify ab- Neumann Saxton Thornberry Ney Scarborough Tiahrt St. Matthew’s Lutheran Church, Janes- sent Members. Norwood Schaefer Torkildsen ville, WI, offered the following prayer: The vote was taken by electronic de- Nussle Schiff Traficant Heavenly Father, God of Nations, vice, and there were—yeas 220, nays Oxley Seastrand Vucanovich Packard Sensenbrenner Waldholtz God of Peace: 189, answered ‘‘present’’ 1, not voting Parker Shadegg Walker We thank You for the men and 24, as follows: Paxon Shaw Petri Shays Walsh women You have given our Nation in [Roll No. 408] Wamp the past, leaders who ‘‘pledged their Portman Shuster YEAS—220 Pryce Skeen Watts (OK) lives, their fortunes and their sacred Quillen Skelton Weldon (FL) honor’’ that we may enjoy ‘‘life, liberty Allard Davis Hoke Quinn Smith (MI) Weldon (PA) Archer Deal Horn and the pursuit of happiness.’’ Radanovich Smith (NJ) Weller Armey DeLay Hostettler Ramstad Smith (TX) White Since the care of many must ever Bachus Dickey Houghton Regula Smith (WA) Whitfield Baesler Dornan Hutchinson rest on the shoulders of the few, Riggs Solomon Wicker Baker (CA) Dreier Hyde Roberts Souder Wolf strengthen the leaders of our land and Baker (LA) Duncan Inglis Rogers Spence Young (FL) especially of this House of Representa- Ballenger Dunn Istook Rohrabacher Stearns Zeliff tives. Help them work for the common Barr Ehlers Johnson (CT) Ros-Lehtinen Stockman good. Make them conscious of their Barrett (NE) Ehrlich Johnson, Sam Bartlett Emerson Johnston privilege and trust. Give them wisdom, Barton English Jones NAYS—189 courage, and resolution. Point out to Bass Ensign Kasich Abercrombie de la Garza Hamilton them Your way. Bateman Everett Kelly Andrews DeFazio Hastings (FL) Bereuter Ewing Kim Baldacci DeLauro Hayes Let the deliberations of those serving Bilbray Fawell King Barcia Dellums Hefley here this day speed the cause of justice Bliley Fields (TX) Kingston Barrett (WI) Deutsch Hefner and peace in our land and throughout Blute Flanagan Klug Becerra Dicks Hilliard the world; through Jesus Christ our Boehlert Foley Knollenberg Beilenson Dingell Hinchey Boehner Forbes Kolbe Bentsen Dixon Hobson Lord. Amen. Bonilla Fowler LaHood Berman Doggett Holden f Bono Fox Largent Bevill Dooley Hoyer Brownback Franks (CT) Latham Bilirakis Doyle Jackson-Lee THE JOURNAL Bryant (TN) Franks (NJ) LaTourette Bishop Durbin Jacobs Bunn Frelinghuysen Lazio Bonior Edwards Jefferson The SPEAKER. The Chair has exam- Bunning Frisa Leach Borski Engel Johnson (SD) ined the Journal of the last day’s pro- Burr Funderburk Lewis (CA) Boucher Eshoo Johnson, E. B. Burton Gallegly Lewis (KY) Brewster Evans Kanjorski ceedings and announces to the House Buyer Ganske Lightfoot Browder Farr Kaptur his approval thereof. Callahan Gekas Linder Brown (CA) Fattah Kennedy (MA) Calvert Gillmor Livingston Pursuant to clause 1, rule I, the Jour- Brown (FL) Fields (LA) Kennedy (RI) Camp Gilman LoBiondo Brown (OH) Filner Kennelly nal stands approved. Canady Goodlatte Longley Bryant (TX) Flake Kildee Mr. COMBEST. Mr. Speaker, pursu- Chabot Goodling Lucas Chambliss Goss Martinez Cardin Foglietta Kleczka ant to clause 1, rule I, I demand a vote Castle Ford Klink on agreeing to the Speaker’s approval Christensen Graham Martini Chrysler Greenwood McCollum Clay Frank (MA) LaFalce of the Journal. Clinger Gunderson McCrery Clayton Frost Lantos The SPEAKER. The question is on Coble Hall (TX) McDade Clement Furse Lewis (GA) the Chair’s approval of the Journal. Coburn Hancock McHugh Clyburn Gejdenson Lincoln Collins (GA) Hansen McInnis Coleman Gephardt Lipinski The question was taken; and the Combest Hastert McIntosh Collins (IL) Geren Lofgren Speaker announced that the noes ap- Cooley Hastings (WA) McKeon Collins (MI) Gibbons Lowey peared to have it. Cox Hayworth Metcalf Condit Gilchrest Luther Conyers Gonzalez Maloney Mr. COMBEST. Mr. Speaker, I object Crane Heineman Meyers Crapo Herger Mica Costello Green Manton to the vote on the ground that a Cremeans Hilleary Miller (FL) Coyne Gutierrez Manzullo quorum is not present and make the Cunningham Hoekstra Molinari Cramer Gutknecht Markey Danner Hall (OH) Mascara 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.

H 6203 H 6204 CONGRESSIONAL RECORD — HOUSE June 22, 1995 McCarthy Payne (VA) Stark clear that his message from the pulpit Members and that he would attempt to McDermott Pelosi Stenholm McHale Peterson (FL) Stokes was carried out in his own daily life. be more rigorous in abiding by the 17- McKinney Peterson (MN) Studds Pastor Sievert’s continuous message minute vote policy, and with the vote McNulty Pickett Stupak of faith, love, and commitment has in- on the Fazio amendment he did just Meehan Pombo Tanner spired me and helped me through the that. Meek Pomeroy Tauzin Menendez Porter Thompson daily trials and tribulations while run- I would further point out that the Mfume Poshard Thornton ning for office and now as a Member of two Members from the minority who Miller (CA) Rahall Thurman Congress. entered the well to vote aye after the Mineta Rangel Towns I look forward to listening to his mo- vote had already been announced were Minge Reed Upton Mink Reynolds Velazquez tivating words for many years to come. followed in seconds by another Member Mollohan Richardson Vento Pastor Sievert, I would like to thank from the majority who also arrived too Montgomery Rivers Visclosky you for making the journey out to late to vote nay. Had all three of those Moran Roemer Volkmer Murtha Rose Ward Washington and for your encouraging Members voted, the amendment would Nadler Roybal-Allard Waters prayer to open today’s session of Con- still have been defeated on a tie vote, Neal Rush Watt (NC) gress. and I might point out, as is the cus- Oberstar Sabo Waxman tom, the Speaker did not cast a vote. Obey Sawyer Williams f Olver Schroeder Wise In other words, Mr. Speaker, the out- Orton Scott Woolsey b 1040 come would not have changed even Owens Sisisky Wyden FAIRNESS IN HOUSE VOTING with an extra minute of voting time. Pallone Skaggs Wynn The disposition of the vote on the Pastor Slaughter Yates PROCEDURES Payne (NJ) Spratt Zimmer Fazio amendment was entirely appro- (Mr. ARMEY asked and was given ANSWERED ‘‘PRESENT’’—1 priate and conducted within the proper permission to address the House for 1 parliamentary procedure of this Cham- Harman minute.) ber. NOT VOTING—24 Mr. ARMEY. Mr. Speaker, prior to Having said that, it is also true that Ackerman Hunter Serrano making a unanimous-consent request, I many Members, most especially Mem- Chapman Laughlin Taylor (MS) have two comments to make about yes- bers on this side of the aisle who sup- Chenoweth Levin Tejeda terday’s vote on the amendment of- Cubin Matsui Torres ported the Houghton language earlier, Diaz-Balart Moakley Torricelli fered by the gentleman from California felt that their victory had been Doolittle Ortiz Tucker [Mr. FAZIO] as amended during consid- snatched from them. They have made Fazio Sanders Wilson eration of the legislative branch appro- Gordon Schumer Young (AK) that clear to the leadership on this side priations bill. of the aisle. Perhaps they did not have b 1037 First, after viewing and reviewing the chance to view the videotape, as I Mrs. COLLINS of Illinois, Messrs. the videotape of yesterday’s proceed- have had. I have that videotape in my GILCHREST, BALDACCI, JEFFER- ings, it is quite clear that the Chair, office and will make it available to any SON, and GONZALEZ, Ms. MCCAR- the gentleman from Georgia [Mr. Member who wishes to see it. THY, and Messrs. FIELDS of Louisi- LINDER], was on solid parliamentary However, I know all too well that ana, BEVILL, HAMILTON, CLEMENT, ground when he called the vote on the once the perception of unfairness and COYNE, DE LA GARZA, UPTON, Fazio amendment. The clerk informs arbitrariness has set in, it is difficult COSTELLO, BISHOP, PAYNE of New us that he called the vote after 17 min- to undo regardless of the facts of the Jersey, and MINGE changed their vote utes and 10 seconds. The videotape matter. It is important to this Member from ‘‘yea’’ to ‘‘nay.’’ shows Mr. LINDER started to call the that fairness govern this Chamber be- So the Journal was approved. vote and refrained from completing the cause this Member spent over a decade The result of the vote was announced call to allow a Member on the minority attempting to do the people’s business as above recorded. side of the aisle to vote at the desk, the under very unfair conditions. It is im- f gentleman from New York [Mr. ACKER- portant to this Member that the vic- MAN]. The video then shows the gen- tories we win are honest and that the PLEDGE OF ALLEGIANCE tleman from Georgia [Mr. LINDER] defeats we endure are equally so. The SPEAKER pro tempore (Mr. called the vote with the well of the For that reason I am about to make GILLMOR). The gentlewoman from Flor- House empty of Members. The video a unanimous-consent request to revisit ida [Mrs. MEEK] will lead the House in then shows that after some time two the vote on the Fazio amendment, and, the Pledge of Allegiance. Members from the minority party ap- Mr. Speaker, before I make that re- Mrs. MEEK of Florida led the Pledge peared at the desk and attempted to quest, if I may just speak very person- of Allegiance as follows: vote. The regular procedure of the ally for a moment to my colleagues. I pledge allegiance to the Flag of the House is that after the Chair has called I have not been a Member of this United States of America, and to the Repub- the vote, it is too late for Members to body long, but I can think of few things lic for which it stands, one nation under God, cast a vote. The fact that Mr. LINDER in life beyond my wife and my children indivisible, with liberty and justice for all. paused to allow the gentleman from for which I have a greater deal of love f New York [Mr. ACKERMAN] to vote than I have for this institution, and WELCOME TO PASTOR DAVID demonstrates that his intent was not this body, and us as Members. I hope SIEVERT to arbitrarily shut off Members from that we can set straight a perception of (Mr. NEUMANN asked and was given their right to vote, nor did the Chair wrongdoing, errant behavior, unfair- permission to address the House for 1 cut off anyone in the well from their ness, with this action today, and I hope minute.) right to vote because there were no we can all take time to pause and re- Mr. NEUMANN. Mr. Speaker, it is Members in the well at the time he an- flect, and remember this body in my my privilege to thank Pastor David nounced the vote. estimation is the single most precious Sievert for opening Congress this I would further point out to the and unique institution of democracy in morning with a prayer. House that the vote on the amendment the world, perhaps in the history of the Pastor Sievert is from my home offered by the gentleman from Califor- world, and we should all, in each and church—St. Matthew Evangelical Lu- nia [Mr. FAZIO] followed two earlier se- every act of conduct, no matter how theran Church—in Janesville, WI. ries of parliamentary inquiries to the small, always put the honor and the I met Pastor Sievert about 15 years chair which were propounded to Mem- dignity of this body ahead of the poli- ago and quickly came to understand bers on the minority side. These Mem- tics or even, for that matter, the politi- that his message was one of faith in bers asked the chair to be consistent in cal subtlety of the moment. God, commitment to family, and love his respecting the 17-minute voting pe- Mr. Speaker, I hope that we can see of country. riod. The Chair allowed that he had this as an opportunity for all of us to As my family got better acquainted been, perhaps, too generous in allowing regain a new understanding of how pre- with the Sievert family, it became very votes to stay open to accommodate cious is this body, and how precious is June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6205 our privilege to be here, and how pre- vote, there was a long time that the Whole will be directed to put the ques- cious is our duty to always do honor to clock was held open. On the vote after, tion de novo on the amendment offered this body. on the motion to adjourn, it again was by the gentleman from California [Mr. f held open for a much longer time than FAZIO] as amended by the amendment 17 minutes. offered by the gentleman from New VACATION OF ROLLCALL 405 AND Mr. Speaker, what I think we must York [Mr. HOUGHTON]. MAKING IN ORDER DE NOVO do, and I hope we will be able to do, is f VOTE ON AMENDMENT OFFERED to have a small group meet and try to BY MR. FAZIO OF CALIFORNIA, figure out some standard that everyone PERMISSION FOR SUNDRY MEM- AS AMENDED can know so we do not wind up with ei- BERS TO ADDRESS THE HOUSE Mr. ARMEY. Mr. Speaker, I ask ther the reality or the perception of FOR 5 MINUTES EACH unanimous consent that the proceed- unfairness in how votes are conducted. Mr. ARMEY. Mr. Speaker, I ask ings of the Committee of the Whole on There was another issue yesterday unanimous consent that the gentleman rollcall No. 405 be vacated and that that has also been resolved that I need from Pennsylvania [Mr. FOGLIETTA], when the Committee of the Whole re- to bring to the attention of the Mem- the gentleman from Alabama [Mr. sumes consideration of H.R. 1854 pursu- bers, and that was a situation in the HILLIARD], and the gentleman from ant to House Resolution 169, the chair- Committee on Science where a vote Maryland [Mr. EHRLICH] be allowed to man of the Committee of the Whole be was held in the committee after the address the House for 5 minutes each. directed to put the question de novo on first bell had rung and maybe after the The SPEAKER. Is there objection to the amendment offered by the gen- second bell had rung, and a lot of our the request of the gentleman from tleman from California [Mr. FAZIO] as Members left the committee thinking Texas? amended by the amendment offered by there would be no other votes in the There was no objection. the gentleman from New York [Mr. committee. They came here to vote The SPEAKER. The Chair, before recognizing the gentleman from Penn- HOUGHTON]. and missed a vote in the committee. The SPEAKER. Is there objection to The chairman of the committee rec- sylvania [Mr. FOGLIETTA], wishes to the request of the gentleman from tified that this morning by having a make several observations: First of all, the Chair announced at Texas? revote in the committee so that people the request of the gentleman from Vir- Mr. GEPHARDT. Reserving the right who had not voted in the committee ginia [Mr. WOLF] and the committee on to object, Mr. Speaker, and I am re- could get the chance to vote, and on trying to help with families at the be- serving the right to object, but I will this issue, too, I think we need to have not object. I want to respond briefly to ginning of the year that there would be an understanding as to when votes will 17-minute votes. The Chair wishes to what the majority leader said. not be held in the committee after the restate that 17 minutes is a reasonable Mr. Speaker, I think what the major- bells have begun to ring at some point. ity leader is attempting to do is right. limit, that if Members are in the The final thing I would say is that Chamber, that they should be recog- Our version of the facts is different the most important thing we bring than his, and I would like to give that nized, but the Chair also wishes to ob- here is our ability to cast a vote. All of serve that on final passage on various version just for the purpose of all of us us love this House. All of us come here understanding what was involved here bills Members who were getting off the with a serious purpose of representing elevator on the majority side did not and so that we can try to not have over 500,000 people. We must never call get to vote on the final passage of bills these kinds of things happen again. into question, in perception or in re- As all of my colleagues know, the earlier this year. The Chair simply ality, that we all are treated fairly in wishes to reassert and to remind all Speaker made a ruling early in the our ability to vote in committee and year that we would try to hold votes to Members we are trying to save time, our ability to vote on this floor. This is we are trying to find a way to get this 17 minutes. The ruling stated unless the people’s House, and, if there is ever someone was in the well. Our version of House home so Members can be with a perception that we are not running their families, and, as a general prin- the facts was that these two Members, this House in a fair manner, perception ciple, that is a reasonable thing to do. who will speak for 5 minutes and will and reality, then we are in great dif- Second, the Chair has asked the ma- give their version of it in a moment, ficulty. jority and minority leaders to work were in the Chamber, were trying very The minority will work in every way both together and with those Members much to get into the well, but were not possible to make sure those standards they wish to appoint to resolve the able to physically get there, but were, are established and that they are lived question of committee voting when the clearly understood by everybody in the with, and I believe that the right thing House is voting, and obviously, having Chamber, trying to vote, and in fact at was done here today, and I hope and be- abolished proxy voting, things are a some point, and there is a dispute lieve the right thing will continue to little more difficult than they used to about when they handed the card in or be done. be, particularly adding 17-minute even handing cards in to vote, when I would like, as part of the request, votes. the vote was called to an end, they to have the Members on our side have Third, the Chair simply wishes to were not allowed to vote. There is 5 minutes to explain their version of reassert what both the majority and added suspicion because the vote was what went on. minority leaders have said. Every close and the majority was winning by Mr. ARMEY. Mr. Speaker, will the Member should have the right to par- one vote, and we had two Members gentleman yield? ticipate fairly. Every Member should coming into the Chamber, so there is Mr. GEPHARDT. I yield to the gen- have the right to vote. This body, as a added suspicion from that end of it. tleman from Texas. group, should recognize that there have Mr. Speaker, there is very strong Mr. ARMEY. Mr. Speaker, I am to be some rules. feeling on this side. I have been here about to make, as soon as this request The Chair thinks the 17-minute rule now 19 years, and I have not in my ex- is over, another request. reasonably applied is the right kind of perience seen the depth of feeling that Mr. GEPHARDT. Mr. Speaker, I thing to do, but we will do everything occurred on this particular issue be- withdraw my reservation of objection. we can, I hope today, in what the Chair cause, as the gentleman said, the thing The SPEAKER. Is there objection to believes is an action he does not re- that we all hold most dear is our abil- the request of the gentleman from member was taken during the preced- ity to represent over 500,000 people in Texas? ing years when I served in this body. this Chamber on every issue that is There was no objection. The Chair hopes that today’s effort will voted on. These Members were doing The SPEAKER. Therefore, proceed- be a sign of good faith that we truly in- their best to be here on time and to ings on rollcall No. 405 will be vacated, tend for every Member to have their vote. I think there is added feeling on and, when the Committee of the Whole rights protected. this side because we seem to be into a resumes consideration of H.R. 1854 pur- The Chair recognizes the gentleman differing standard from vote to vote. suant to House Resolution 169, the from Pennsylvania [Mr. FOGLIETTA] for As was said on the vote just before this Chairman of the Committee of the 5 minutes. H 6206 CONGRESSIONAL RECORD — HOUSE June 22, 1995 Mr. FOGLIETTA. Mr. Speaker, I GOP went the denial of Members of the This morning, the Washington Post thank the majority leader for, first, right to vote and the denial of Amer- stated that you cut off the vote by 15 giving me this opportunity to speak ican citizens, of over 1 million Amer- seconds. I heard you state that 10 sec- and, also as importantly, giving this ican citizens, to have their Representa- onds had elapsed. By our count, we had House a right to revote the controver- tive cast votes on their behalf? more than 30 seconds. By the Washing- sial issue of yesterday afternoon. I appreciate the fact that we are ton Post, which I would think would be Mr. Speaker, I come from the city of going to have a revote, and I would independent of the Republican count or Philadelphia. I represent the First Con- hope that this incident brings home the Democratic count, you cut off and gressional District, and in the heart of the message to every Member of this denied over 1 million people the right that district stands Independence Hall House that what we do here is an im- to vote by 15 seconds. where the Constitution of the United portant part of the American way of This is not democracy. In Alabama States was written and adopted. The life. What we do in this body is a right we do not even do this. Never do we majority and minority leaders both guaranteed by the Constitution of the openly take the rights of anyone to spoke of matters dear to them. Let me United States, and that constitutional vote, and I would hate to think that say that the Constitution of the United right should remain inviolate no mat- this body is below that level. It cannot States of America is also very dear to ter what the circumstances. be, it should not be. me. b 1100 I suggest to you, because you have The majority leader stated the facts the votes and because you have been I would hope that after this incident, as he knows them. However I was the using the clock to manipulate that every Member will have the right to subject, and I was here. The fact is, Mr. vote, you hold it open when you do not cast his or her votes on behalf of his or Speaker, that I entered the Chamber. have the votes, you close it when you The gentleman from Wisconsin [Mr. her constituents, the American citi- zens. do, you win, the Republican Party OBEY] was standing toward the rear of wins. But I also suggest to you that the aisle, and, as I passed Mr. OBEY on f every time you do it, democracy loses. my way to the well, Mr. OBEY yelled VOICE OF FREEDOM STILLED ON f out to the Chairman, ‘‘One more vote, FLOOR OF HOUSE one more vote,’’ which, according to ANNOUNCEMENT BY THE SPEAKER (Under previous order of the House, custom over the years, has always al- PRO TEMPORE Mr. HILLIARD was given permission to lowed that Member to cast his or her address the House for 5 minutes and to The SPEAKER pro tempore (Mr. vote. Mr. Speaker, I was denied that revise and extend his remarks.) GILLMOR). The Chair will accept fifteen right. Mr. HILLIARD. Mr. Speaker, yester- 1-minute requests from each side. We are talking about the amount of day on the floor of this House the voice time that was involved. The Washing- f of freedom was stilled by the forces of ton Post timed the vote and found that repression. The strong arms of the Re- DENYING THE RIGHT TO VOTE the vote was called 15 seconds prior to publican army flexed their mighty par- (Mr. BONIOR asked and was given the expiration of 17 minutes. I ran to liamentary weight and refused two the well, wrote out my card, handed it permission to address the House for 1 duly elected Members of this body, my- minute and to revise and extend his re- to the Clerk. The Clerk actually had self and the gentleman from Penn- the card in his hand, and I was then de- marks.) sylvania [Mr. FOGLIETTA], the oppor- Mr. BONIOR. Mr. Speaker, we have nied to have my vote counted. tunity to vote before this Congress. In Mr. Speaker, that Constitution of always known that the Republicans doing so, the Republicans crushed the were willing to go to great lengths to which I spoke gives us as Americans very voice of democracy. some basic inalienable rights. One of pass their extremist agenda. I never This is not Caesar’s Rome, this is not thought that I would see the day when the most important, one of the most Hitler’s Germany, and this is definitely basic of those rights, is the right of they would actually deny Members of not Stalin’s Russia. This is where the this body the right to vote, but on the every American citizen to cast his or voices of freedom should reign. This is her vote, and, as importantly, it was floor yesterday, a Democratic amend- the birthplace of democracy. ment was one vote, one vote, shy from the right, or is the right, of every This is America. We all must protect victory. There were 15 seconds left. American to have his or her its democratic institutions, and espe- Two Democrats who had not voted Congressperson vote on their behalf in cially its foundation, the right to vote. were trying to vote, and they were cut this House. Our right to vote supersedes any party off, denying 1 million people in this Mr. Speaker, I regret that yesterday vote on any issue. We must preserve country representation. afternoon over 1 million Americans the integrity of the vote, and we must Mr. Speaker, this is the most egre- were denied their right to have their in this body aggressively champion the gious and arrogant abuse of power that Representative cast votes on their be- right to vote. half. One million Americans were A revote is good. It does not show I have seen on our House floor. To top disenfranchised by, I consider, a dis- good faith. To me, being a politician it all off, when Democrats tried to graceful display of arrogant, unconsti- for 22 years, it tells me that you are question the ruling, the Republicans tutional abuse of power. out to achieve your objective at any adjourned early and jumped on buses. Mr. Speaker, we might try to deter- cost. Yesterday you could not win be- You know why? Where did they go? mine why this occurred. As you well cause there were two votes in this This poster points out where they know, the vote would have turned had Chamber that would have made the dif- went. They went to New York, by I and the gentleman from Alabama ference, and there was no third vote, plane, got on a bus, took a plane, and [Mr. HILLIARD] been allowed to vote. even though I realize that you have raised $1.7 million at a fund raiser. That is one of the reasons. The second created one now. Because you did not Now, the Republicans are willing to reason I was not aware of until I left have the votes yesterday, and because shut down our voices, shut down our this Chamber is, as I left the Chamber, you have twisted arms last night and votes, and adjourn the House early, all I walked out in front of the Capitol and you have the votes today, you are so they can raise $1.7 million from the there saw my colleagues from the ma- ready to revote. To me, that is not special interests and the wealthy cor- jority side boarding buses to take them good faith. porations. Welcome to the Gingrich to the airport to take them to New You, because you are the majority revolution. York City for a fundraiser. Strangely party, have a greater duty to preserve f enough, the New York Post, owned by and protect this institution, and I sug- one Rupert Murdoch, states in its col- gest to you that you have failed to do TRAMPLING DEMOCRACY umn that the GOP went to great that. The procedures of this institution (Mr. DOGGETT asked and was given lengths to make sure that its Members must be protected at all costs. It permission to address the House for 1 got to the Big Apple on time. Was one should be beyond and above any objec- minute and to revise and extend his re- of those great lengths to which the tive of any party. marks.) June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6207 Mr. DOGGETT. Mr. Speaker, yester- waiting to cast their ballots? Because The issue, however, is whether it is day our Republican colleagues were in they had a fundraiser to go to. Yes, the in the democratic tradition, big Amer- a rush to get to a big bucks fundraiser buses were idling outside waiting to ican democratic tradition, not party, up in Manhattan, and democracy was squire them to the ‘‘Salute to Newt’’ for the majority party to shut down trampled in their stampede to get to fundraiser, featuring GOP poster boy this House and cut off an individual those big dollars. You can look at to- Rupert Murdoch. The article in the Member’s right to vote so that they day’s New York Post. You can see what Post today says ‘‘the GOP went to can get to a fundraiser in New York on it was all about. An all-star list of cor- great lengths.’’ Indeed, they went to time. The article in Mr. Murdoch’s porate bigwigs was slated to attend, great lengths to make sure that their paper says the GOP ‘‘went to great the same corporate bigwigs that are Members got to the Big Apple on time. lengths to make sure its Members got being benefited by the tax shift to the Last November, the American people to the Big Apple on time.’’ superrich at the expense of people who were promised that Government would This is the issue. Not whether you want school lunches and the protection be returned to them. But yesterday had a fundraiser, but whether you were of Medicare. It is more of the same hundreds of thousands of American so anxious to go grab the money, that thing. people were shut out of the people’s you were willing to shortcircuit the But it is a dark day indeed for de- House when their Representatives were democratic process in the doing. That mocracy in this country when the denied the right to vote on their be- is the issue. rights not just of two Members, but half. What we are seeing in this body is f over 1 million Americans to have their an arrogance of power, one of the most CRYING LACK OF FAIR PLAY voice heard in this House, are trampled egregious abuses of power in our Na- and cut off. And, amazingly, only mo- tion’s history. (Mr. MCINNIS asked and was given permission to address the House for 1 ments before this occurred, in the Com- f mittee on Science on which I serve, in minute and to revise and extend his re- an incredible display of arrogance, THE FACTS BE DAMNED marks.) there was an attempt to force people to Mr. MCINNIS. Mr. Speaker, first of (Mr. SCARBOROUGH asked and was all, in response to all this money-rais- vote there or vote here. given permission to address the House This is a true setback for democracy. ing garbage, frankly, that I have been for 1 minute and to revise and extend hearing this morning, how interesting f his remarks.) it is that the President of your party ADJOURNING EARLY Mr. SCARBOROUGH. My goodness, tonight kicks off his fundraising. Do such self-righteous indignation over (Ms. KAPTUR asked and was given you want to dock his pay? One of your those big-money interests. It is a con- people just proposed you dock the pay permission to address the House for 1 cept that the other side of the aisle has minute and to revise and extend her re- for the time they spent. Take a look at known nothing about for 40 years. But that. marks.) who for the past 40 years has been the Ms. KAPTUR. Mr. Speaker, in my 13 Second of all, to my colleague that champion of PAC money and collecting years as a Member of Congress, I have was just preceding me, who talked special interest money? It has not been never experienced what happened yes- about the cutoff of voting rights, why this side of the aisle. It has been the terday in this House. Instead of doing do you not bring the videotape up here Democrats. And yet now that the Re- the people’s business, this House ad- and set up the TV camera? To my col- publicans dare to have a fundraiser, a journed yesterday at 3:50 in the after- league, the videotape does not lie. They concept that the Democratic Party has noon, in the middle of a workday after- were in violation of the rule. They were never thought of one time in their life, noon when most Americans are still on not down here in the well. They had we are destroying the work of the peo- the job. Why? Money, and millions of gone beyond the 17 minutes. ple’s House. We are subverting democ- dollars of it. That is right. Congress ad- Do not cry lack of fair play. Bring up racy. journed early yesterday so that Repub- the video and show the American peo- Dear Lord, there were two Democrats lican Members with Speaker GINGRICH ple the truth. Are you afraid to do that were going to vote yesterday, but at the helm could fly to New York to that? Of course you are. they were shut out. Be damned with attend a GOP fundraiser aboard the In- f the facts. Get behind us, facts. There trepid Sea and Air Space Museum, was a Republican in the Chamber also, b 1115 where wealthy givers paid $1.7 million and the majority leader explained this to hobnob with Republican Members A BAD DAY FOR THE yesterday. The Democrats would have who did not work a full day yesterday, CONSTITUTION lost. but were not docked for their pay. (Ms. ESHOO asked and was given per- But instead of sticking to the facts, During the first 2 months of this mission to address the House for 1 they are relying on demagoguery, talk- year, the Republican Campaign Com- minute and to revise and extend her re- ing about Rupert Murdoch and other mittee has raised over $11 million. marks.) That is over $123,000 a day. Maybe it is things that have absolutely nothing to Ms. ESHOO. Mr. Speaker, this morn- time to ask ourselves who is fighting do with the facts of what happened yes- ing I think that we should recall the for America here in Washington, and terday. words of a great woman of many, many should not those Members who left How absolutely irrelevant to what years ago, Barbara Jordan, during the early be docked on their pay? has been going on yesterday and what Watergate hearings, when she intoned has been going on since we got here on f the Constitution. January 4, 1995. Yesterday was a bad day for the Con- GOP ABUSE OF POWER f stitution. Yesterday was a bad day for (Ms. DELAURO asked and was given this card that we each have that the MEMBERS’ RIGHTS MUST BE permission to address the House for 1 people of our respective congressional PRESERVED minute and to revise and extend her re- districts graced us with, the power to marks.) (Mr. OBEY asked and was given per- speak for them, the power to represent Ms. DELAURO. Mr. Speaker, it seems mission to address the House for 1 them with our vote. The Constitution. only yesterday when the Republicans minute and to revise and extend his re- The Constitution. rode into town promising reform, but marks.) Yesterday was a good day for fund- those days are long gone. Instead of re- Mr. OBEY. Mr. Speaker, in response raising. Yesterday was a bad day for form, the new Republican majority has to the previous statement by the gen- democracy and for the Constitution curried favor with the special interests, tleman who just spoke, let me say the and the power that the people gave us gagged debate, and yesterday denied issue is not whether the Republican in the House of Representatives to cast Members of this body the right to vote. Party held a fundraiser or not. That our vote and to speak for them. Shame Why did Republicans close a vote happens all the time on both sides of on those that would chip away at the while two Democratic Members were the aisle. Constitution. H 6208 CONGRESSIONAL RECORD — HOUSE June 22, 1995 CLINTON BUDGET NOT BALANCED like we did in the old days. We are not Science when the chairman laid out (Mr. JONES asked and was given per- going to slop over for 30 minutes on the the rules for the vote that was going to mission to address the House for 1 votes. We are going to have 15-minute precede the vote that came on the minute.) votes. Those 15-minute votes, because floor. Mr. JONES. Mr. Speaker, the Con- sometimes there are unexplainable cir- What happened is the opposition to gressional Budget Office has weighed in cumstances, those 15-minute votes this tried to filibuster in the Commit- on President Clinton’s plan to balance sometimes will wait until 17 minutes. tee on Science and then alleged that they missed the votes here. The chair- the budget in 10 years. Their conclu- The vote yesterday was 17 minutes. man stayed throughout all debate. He sions were not too, shall we say, prom- But I guess some Members are slow then left the Committee on Science, ising. learners and they habitually wander in came here and was able to register his CBO concludes that Clinton’s new here after the 17 minutes and say, one more, one more, let us vote. vote. But still the charge is arrogance. budget would not even come close to Today I just left the Committee on balancing in the year 2005. They pre- We were here. Where were those two Members when everybody else had Science. I just revoted on the very dict the deficit that year will be $209 same amendment. It was allowed. We billion, about what it is today. voted within the 17 minutes? Where were those two Members who feel like were considerate and yet no apology, During his first State of the Union just a charge of arrogance. When are Address, Bill Clinton sang the praises they were so wronged yesterday? They had the same time we did. I guess they we going to have some reality and of the CBO. Now, the differences be- some consideration on the floor of this tween his numbers and CBO’s numbers had things that were more important to do than to be on this floor and vote House? are passed off as merely a difference of I think it is time that we act like opinion between policy wonks. within that 17-minute limit. We are here to try to change Con- gentlewomen and gentlemen as we so Mr. Speaker, Bill Clinton’s budget is profusely proclaim on the floor of this a sham. If he were serious about bal- gress and change this country. You are just trying to change the subject. House. ancing the budget, he would get serious f about the Federal Government’s spend- f ing problem. ARROGANT ABUSE OF POWER THE REPUBLICANS’ ARROGANCE Instead of a real balanced budget, all (Mr. WARD asked and was given per- Bill Clinton proposes is a plan to pro- (Mrs. COLLINS of Illinois asked and was given permission to address the mission to address the House for 1 tect big government. minute and to revise and extend his re- House for 1 minute and to revise and marks.) f extend her remarks.) Mr. WARD. Mr. Speaker, let us talk Mrs. COLLINS of Illinois. Mr. Speak- INNOCENT UNTIL PROVEN GUILTY about setting the record straight. Lis- er, I have been in this body for 22 long ten to this. Listen to this, you people (Mr. TRAFICANT asked and was years and never have I seen the arro- on the other side of the aisle who sim- given permission to address the House gant abuse of power that I saw here ply do not get it. This country is about for 1 minute and to revise and extend yesterday. the right to vote. his remarks.) Now the funny thing about it, I sat Mr. TRAFICANT. Mr. Speaker, be- I was in this Chamber yesterday. I here for an hour and a half this morn- am a witness. I saw it all. There were fore the House institutes instant re- ing. Thirty minutes of that time was play, I would like to talk about the two Members standing at the very spent on the vote that was called to place I stand this minute, filling out Constitution in another way. Under the vote on the record, a 30-minute vote. Constitution, an American citizen once cards, attempting to vote, attempting Check the video. Check the clock. to represent over a million Americans. accused shall be considered innocent Check the timekeeper. You will find and the accuser shall be held account- A million Americans were denied their that is the case. right to vote yesterday, and why? able for the credibility and reliability Now, 30 long minutes, yet you cannot of those accusations and shall bear the There are two simple reasons: The Re- allow a Member time to get here to publicans were losing the vote and they burden of proof. vote on the floor of the House of Rep- It is simple. It is logical. It is fair. It could not stand that in this era of lock- resentatives. I say to my colleagues, step, almost Nazi-esque obedience. is American. It is right to the point. money is important. Everybody likes Tell me, Mr. Speaker, when did the Second, they were going to a fund- money. I like money. The Democrats raiser. It says right here, the GOP went Washington bureaucrats reach into the like money. Republicans like money. Constitution and in a tax case allow to great lengths to make sure its Mem- But not at the expense should anybody bers got to the party on time. the IRS to treat the American people leave this body to go to a fundraiser, a Let us do not forget this, my col- like indentured servants, like crimi- fundraiser in New York when business leagues. It is about their arrogance, nals, like noncitizens, like chattel. Un- is going on to represent the people in and they never apologized for it. They believable. this country. just said: We will let you vote again. H.R. 390 says, any time an American The House of Representatives and the That is not right. taxpayer is in a court over a tax pro- millions of people that we represent de- f ceeding, they shall be considered inno- serve better than that, deserve to have cent, and the IRS shall have the burden their voices heard, deserve to have LET US GET ON WITH THE of proof. That is simple. That is log- their votes casts by those of us they PEOPLE’S BUSINESS ical. That is fair. By God, that is Amer- send here to cast their ballots for (Mr. SAXTON asked and was given ican. them. permission to address the House for 1 If we want to talk about the people’s Let me tell you something else, minute and to revise and extend his re- business, let us pass H.R. 390. money is the root of all evil, and you marks.) f did an evil thing yesterday when you Mr. SAXTON. Mr. Speaker, the belt- left here and did not do the people’s way mentality that exists here never RULE ON VOTE TIME business. ceases to amaze me. The votes on this (Mr. HEFLEY asked and was given f issue, had they been cast, would not permission to address the House for 1 have changed the result of the vote to minute.) SETTING THE RECORD STRAIGHT begin with. But the real crime here is Mr. HEFLEY. Let us wait just a (Mr. TIAHRT asked and was given that the people in my district at least minute, folks, with all the screaming permission to address the House for 1 have some real concerns. and wrapping of the righteous robes of minute and to revise and extend his re- For example, I have some senior citi- indignation around your bodies about marks.) zens in my district who are concerned what happened here yesterday. The Mr. TIAHRT. Mr. Speaker, I would about Medicare. And yet while your rule was established at the outset of like to rise to set the record straight. party decides that they want to com- this session. We are not going to do it Yesterday I was in the Committee on plain and carp about a time limit on a June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6209 vote, you all suggest that we are not issue that is, in fact, being addressed cons have been retired. We flew in HH– going to deal with the Medicare prob- and addressed in a very reasonable, up 60 helicopters. But the pilots have lost lem. The President himself has admit- front and correct manner. radars, aerostats, and their only C–130 ted that Medicare goes bankrupt in 7 f AWAC. Resources are at rock bottom, years. Yet your party decides to refuse when they should be at the top. to address the issue. THE AMERICAN PEOPLE WERE We saw 5,000 pounds of drugs inter- Which is more important? Squab- DENIED REPRESENTATION dicted by the brave souls on the Coast bling about these votes or getting to (Ms. MCKINNEY asked and was given Guard Cutter Mellon. But the raw truth the business of the people and address- permission to address the House for 1 is: The drug cartels are killing us as ing issues like Medicare? minute.) surely as any foreign enemy. It has got Mr. Speaker, I am tired of the par- Ms. MCKINNEY. Mr. Speaker, a to stop. tisan bickering. I seldom take part in frightening thing happened yesterday. From the frontlines, I say to my col- these partisan debates; I prefer to deal Two votes that would have changed the leagues and I say to President Clinton, with issues, issues like Medicare. Let outcome of House action were denied. let us get drugs at the top of the na- us get on with the people’s business. In addition to the disenfranchisement tional agenda. f of two Members, 1 million American To the Coast Guard I say, thank you. people were also denied representation You are doing important and dan- WE SHOULD ALL LIVE BY THE on that vote. What does this kind of ca- gerous work, and we appreciate it. SAME RULES priciousness do to our democracy? f (Ms. FURSE asked and was given per- What was so important that the busi- mission to address the House for 1 ness of the House had to be shut down? CORPORATE FAT CATS minute and to revise and extend her re- Was it the ‘‘Salute to Newt’’ that (Mrs. SCHROEDER asked and was marks.) took place in New York last night? given permission to address the House Ms. FURSE. Mr. Speaker, I have a What does this say about the integrity for 1 minute and to revise and extend history. I have lived in countries that of the vote under Republican rule? her remarks.) were not democracies. I want to say Republicans want to deny potential Mrs. SCHROEDER. Mr. Speaker, let something about democracy. In a de- voters with the repeal of motor-voter. us put a little focus on what this arti- mocracy trust is the major component. Republicans want to deny real voters cle points out. The reason we ad- in a democracy, it is not the military by invalidating election results in Cali- journed the House early on Wednesday who makes the rules; we make the fornia and North Carolina. And how we afternoon, what every other American rules. We, the people, make the rules, see that they are willing to even deny thinks is a regular workday, we ad- and we trust we will all live by them. elected Members the right to vote on journed early afternoon so people could The Republican leadership said there the floor of the House if it does not fit run to corporate jets owned by tobacco will be 17-minute votes. Yet today we in with their outcome. companies and insurance companies, so have a 30-minute vote. So who can we Mr. Speaker, this bodes ill for the they could traipse off and go to New trust? people of America. This is going too York City, where the New York fat That is why, they say, they denied far. They are extremists, and they can- cats were waiting to stuff their coffers those two Members coming down from not be trusted. with money. If they kept those fat cats here into the well to vote. I was stand- f waiting, they might not have stuffed so ing right here, Mr. Speaker. I pointed much in the pocket. to those Members. I said, Mr. Speaker, U.S. COAST GUARD COMMENDED Mr. Speaker, I am one of the people there are Members. It is on the video- FOR LEADING FIGHT AGAINST who, after the first 100 days, went to tape. ILLEGAL DRUGS AND VIOLENT this dome, and some were angry for Mr. Speaker, if we lost the trust in DRUG CARTELS holding up a sold sign, but let me tell this institution, we lose what is best (Mr. ZELIFF asked and was given the Members, every day it appears to about a democracy. We all make the permission to address the House for 1 me we are selling this place out. I do rules. We all live by the same rules. minute and to revise and extend his re- not want this to become a coin-oper- f marks.) ated legislative machine. Mr. ZELIFF. Mr. Speaker, the U.S. Yes, have fundraisers, but have them METHINKS THOU DOTH PROTEST Coast Guard is leading the charge at night, have them on weekends. Do TOO MUCH against a force that is now our No. 1 not have them on Wednesday afternoon (Mr. EMERSON asked and was given national security threat—illegal drugs with corporate jets escorting Members permission to address the House for 1 and violent drug cartels. back and forth, so they do not upset minute and to revise and extend his re- Last week, as chairman of the Na- the fat cats, so they will give them lots marks.) tional Security, International Affairs of money. That is why the American Mr. EMERSON. Mr. Speaker, I have and Criminal Justice Subcommittee, I people are really concerned about this actually sat here this morning and lis- led a congressional delegation to the sacred trust we have called democracy. tened to all of the righteous indigna- front lines in the drug war. We went to It is not totally dead yet, but I will tell tion being expressed. There was a per- the 7th Coast Guard District. What we the Members, it is in danger, as of ceived wrong in the House, and the ma- saw was both impressive and disturb- today. jority leader, in an act of magnanimity ing. f that I have never witnessed in my 15 Impressive, because we saw brave years here, and, believe me, when we men and women in the air and on the GAMES IN THE HOUSE were in the minority, there were many sea, putting their lives at risk, in the (Mr. PAXON asked and was given perceived and real acts perpetrated drug transit zone, hunting permission to address the House for 1 that were not only perceived, they narcotraffickers. They are out there minute and to revise and extend his re- were real acts of wrongdoing, proce- protecting our kids and our grand- marks.) durally. This House was never offered children. And they need our help. Mr. PAXON. Mr. Speaker, there is the means to address the perception of Disturbing, because our Nation has sanctimony dripping from the ceiling. I wrong, in those days. But now the offer badly underestimated the threat posed want to set the record straight. I see has been made, and it was unanimously by drugs and the drug cartels. The my colleague, the gentleman from agreed to. interdiction effort needs our support. California [Mr. FAZIO] standing here. I I think with what is going on here Congress and President Clinton have to would remind the gentlewoman from this morning, there is—I would have to lead. Colorado [Mrs. SCHROEDER], who just refer a little bit to Shakespeare here: In the past 2 years, drug use has sky- stood and talked about scheduling Methinks thou doth protest too much. rocketed. But the priority on drug events on weekends and at times the For the lack of an agenda of substance, interdiction has fallen. We flew in Fal- House is not in session, that the gen- you want to quibble about a procedural con jets. But 4 of the region’s 10 Fal- tleman from California [Mr. FAZIO], H 6210 CONGRESSIONAL RECORD — HOUSE June 22, 1995 chairman of the DCCC, used to come to Mr. Speaker, let us get some reality agents of private interests, interests me and say ‘‘We are going to have an here. All this rhetoric is quite dis- with a financial stake in the outcome, event. We would like to make certain ingenuous. to perform the core responsibilities of that votes are not called during that f congressional staff and Members. time.’’ We always obliged. I think there Mr. Speaker, this is the business of was always comity between the two AMERICA IS NOT YET A COLOR- legislating. It is the public’s business. sides of the aisle. BLIND SOCIETY It is to be conducted only by those who We held an event, that side holds (Mr. FLAKE asked and was given are accountable to the public. events. Both sides do it. This vote had permission to address the House for 1 f nothing to do with the scheduling of minute and to revise and extend his re- our event. It had everything to do, marks.) COMMITTEES AND SUBCOMMIT- though, with games being played here Mr. FLAKE. Mr. Speaker, let me be TEES TO SIT FOR THE REMAIN- in the House that had nothing to do the first today to welcome all of our DER OF THE WEEK DURING THE with the NRCC’s event last night. How- colleagues to the new colorblind soci- 5-MINUTE RULE ever, we certainly will remember that ety. Mr. Speaker, the Speaker himself Mr. ARMEY. Mr. Speaker, I offer a advice in the future, when it comes to has said just as late as last week that privileged motion and ask for its im- scheduling events, and certainly keep we were not there yet, but we are. Let mediate consideration. an eye on that side’s, also. us just put down all the weapons we The SPEAKER pro tempore (Mr. f used to get here to the promised land GILLMOR). The Clerk will report the of equality and cooperation. motion. RECOGNITION OF THE SOUTHERN Mr. Speaker, what are the signs that The Clerk read as follows: BAPTIST CONVENTION’S RESOLU- we are here in this land of milk and Pursuant to clause 2i of rule 11 Mr. ARMEY TION, JUNE 22, 1995 honey? The Supreme Court last week moves that all committees and subcommit- (Mrs. MEEK of Florida asked and was in the Adarand decision told us, and tees of the House be permitted to sit for the given permission to address the House today in the Committee on Banking remainder of the week while the House is and Financial Services, we will put yet meeting in the Committee of the Whole for 1 minute and to revise and extend House under the 5-minute rule. her remarks.) another nail in the coffin of inequality The SPEAKER pro tempore. The gen- Mrs. MEEK of Florida. Mr. Speaker, I in fair housing and lending. tleman from Texas [Mr. ARMEY] is rec- am delighted to stand here today to News flash, we are not there yet. By ognized for 1 hour. recognize the bold and courageous step taking one of the best weapons we have Mr. ARMEY. Mr. Speaker, I will not the Southern Baptist Convention took away from the Attorney General to use take my whole hour. during its annual convention. As many testers, qualified minority and nonminority applicants who root out Mr. Speaker, let me just say, this is of you know, its members passed a res- a routine matter. It is a fairly normal olution acknowledging and asking for- bigotry and discrimination in housing, we have taken a bad detour back to the thing we have been doing here in order giveness for past acts of racism. to enable our committees to work The Southern Baptist Convention past. Shame on those who falsely welcome while the House proceeds with busi- was created in 1845 when some mem- us to this color-blind America. We are ness. Of course, we do this in all due bers split from the American Baptist not there yet, Mr. Speaker. Only last consideration to all our Members, but Convention over the question of wheth- week U.S.A. Today reported that there also, of course, in due consideration of er slaveowners could be missionaries. is still discrimination in housing in the fact that the people’s work must be In 1989, its members moved toward this land. There is still discrimination done. this historic resolution when they de- in fair lending practices. Mr. Speaker, Mr. Speaker, I reserve the balance of clared racism a sin. let us move toward a color-blind soci- my time, with the exception that I will This resolution commits its members ety, but we are not there yet. yield 15 minutes to the gentleman from to eradicating racism in all its forms f Texas [Mr. DOGGETT] for the purpose of from Southern Baptist life and min- debate only. istry. I pray, Mr. Speaker, that others HOW REPUBLICANS MAKE LAW: Mr. DOGGETT. Mr. Speaker, I thank would follow the example of the South- LET LOBBYISTS DO IT the gentleman for yielding time to me, ern Baptist Convention so that our (Mr. SKAGGS asked and was given and would like to be heard in opposi- great Nation can be all that it can be, permission to address the House for 1 tion to this motion. utilizing the full potential of all its minute and to revise and extend his re- Normally, Mr. Speaker, it would be citizens regardless of race. marks.) my feeling that this House should pro- f Mr. SKAGGS. Mr. Speaker, the Re- ceed in all due speed to attend to mat- ters, certainly on the Committee on A LITTLE HYPOCRISY IN publicans promised some sweeping Science on which I serve. However, yes- COMPLAINTS changes in how Congress works. In one way, they have certainly delivered. terday we had an incredible display of (Mr. LATHAM asked and was given The Democratic Study Group is arrogance in that committee. It is not permission to address the House for 1 today releasing a special report that the first time that it has happened, un- minute and to revise and extend his re- describes just how this Republican fortunately. marks.) Congress has turned over the reins of That is that after the bell had rung Mr. LATHAM. Mr. Speaker, I have congressional power to special interest for Members of the Committee on been listening to this debate up in the lobbyists. Science to come to the floor of this office. I just happened to see Roll Call Lobbyists have been brought in from house and cast their vote on behalf of this morning. It concerned me that the corridors of the Capitol and given a the over half a million people that each maybe we have a little bit of hypocrisy seat of power, where they are perform- of those Members represent, after that going on today. ing the functions that are the legal and bell had rung, the chairman of the There is an article here entitled moral responsibility of Members and committee attempted to force the com- ‘‘Party Weekend.’’ staff. These paid agents of private in- mittee to vote in committee at the The Democrats are holding a retreat for terests are dictating the wording of same time, several blocks away from big donors at the notorious Greenbrier resort legislation, conducting official staff where they were being asked to vote on in White Sulfur Springs this weekend. The briefings advising committee counsel the floor of this House. price of admission is $10,000 for individuals, during bill markups, drafting official The effect of that action is to deny $15,000 for PAC’s. There will be some time for that half a million Americans the op- discussion, but most of Saturday is free time committee reports, and even sitting on for golf, tennis, swimming, horseback riding, the dais during hearings. portunity to cast their vote either in and visiting the spa. The Greenbrier retreat Mr. Speaker, it is one thing for lob- the committee or on the floor, since is one of six events the Democrats are hold- byists to give advice and suggest bill even the Committee on Science, as ad- ing for big donors this year. language. It is quite another for these vanced as its outlook might be, has not June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6211 figured out a way to have Members of However, then we are going to follow were confronted with exactly the same Congress sit in two places at the same with other votes about 10, 11 minutes thing the day before. That after the time. apart. We are going to have other second bell I left to come here to vote Therefore, Mr. Speaker, with this amendments and they each have about because I thought the 15-minute thing having happened on a prior occasion, I 10 minutes to them. Those are very im- was legit and I guess my mother em- began talking about this in the Com- portant amendments. Those on the phasized promptness too much. I left, I mittee on Science in hopes that there Committee on Science are going to came over here, went back and found would be an opportunity to simply have to stay over there and not listen out that they had a rollcall and so I have the common decency and the to the debate. had not been able to participate in the common courtesy to postpone the vote Mr. DOGGETT. They are over there rollcall in Judiciary. until immediately after the vote here, right now meeting. That is the prob- Look, during the first 100 days, I because several members of the Com- lem. They cannot be in two places at think our side cooperated when we had mittee on Science, Democratic mem- once. this 15-ring circus going on. But at this bers, had already left, realizing how Mr. VOLKMER. If the gentleman will point when you have got committees really critical this vote was on the yield further, they do not know what is that are doing markups and hearings floor of the House concerning, iron- going on, Mr. Chairman. They have to and meanwhile having issues on the ically, the Office of Technology Assess- run over here and try to make this floor that the committee is also inter- ment, a matter that relates directly to vote. If the chairman does like he did ested in at the same time, I would the jurisdiction of our committee. yesterday and calls for votes, we are think what we are really saying is we Those members left. They included back in the same pickle all over again. are just running around here voting the distinguished gentlewoman from Would it not be better for the Com- and people do not have any time to Michigan, LYNN RIVERS. Ms. RIVERS, as mittee on Science just to say no, we really focus on these tough issues. I she told the House yesterday, has never will not finish up today, we will come think the people expect a little more of missed a vote on the floor of this back in next week and we will finish us. They expect us to work later than House. She has never missed a vote in up, at a time when it is not going to 3:30 in the afternoon and in the middle any of the committees on which she interfere with Members trying to do of the week, knock off to go to New served until yesterday. The only reason two things at one time? York City and whatever. that she missed that vote was the vote Mr. DOGGETT. Perhaps at a time I think the gentleman is making an was forced while she was trying to cast when simple common courtesy and de- excellent point and I would hope that her vote on the floor of the House, the cency and collegiality could prevail, everybody could get some idea of what vote was forced in the Committee on instead of pomposity and arrogance, the rules are. Are we going to have Science. which is what we have had too much committee votes after the second bell? Mr. Speaker, I talked for 5 minutes, of. Are we going to have them after the asking for the opportunity to simply Mr. VOLKMER. Mr. Speaker, I thank third bell? Are we going to be able to delay the vote until such time as all the gentleman for yielding. hold the thing open down here if that is our Members could return, and that op- Mr. DOGGETT. Mr. Speaker, I might happening? Who has the clout to do it? portunity, that common courtesy, was point out what happened yesterday as Is it only people on that side of the rejected. It is for that reason that I op- it relates to what occurred here on the aisle? People on this side do not have pose this motion, because I think that floor. I know the gentleman is inter- that clout? These are serious issues. the House needs to make a statement ested in the total inconsistency, be- Mr. DOGGETT. They are serious is- that we will not place any Member of cause when we did rush over here, lit- sues, because democracy has to work this House, Democratic or Republican, erally in a gallop from way over at the both ways. It has to be the same rule in the position, the dilemma, of decid- Rayburn building, to try to be two for Democrats and Republicans and ing shall I vote on the floor for my con- places at once, we found, or I did, in re- people of no party affiliation. I cer- stituents, shall I vote on the commit- sponse to a parliamentary inquiry, tainly do not object to their need to tee to which my expertise is called? rush off to a fundraiser in Manhattan Mr. Speaker, none of this would have that a phone call had been made, and with the tobacco lobbyists and the been necessary yesterday. None of this that the vote had been extended far be- other big corporate interests, buy why rush to justice would have occurred yond 17 minutes, but that was the vote is it that the people’s workday had to had it not been, as several Members immediately before the one that was be cut short in the middle of the after- have pointed out this morning, for the cut off a few seconds shy, and 1 million noon? The folks I represent down in fact that some of our Republican col- Americans’ right to vote shy, of being Texas do not usually get off at 3 or 4 in leagues just could not move fast able to be cast here. the afternoon to head off to some big enough to get to that big bucks fund- Mr. VOLKMER. If the gentleman will raiser up in New York City, where all continue to yield, Mr. Speaker, if the bucks party. They have to stay and put of the corporate elite was gathered to gentleman and other Members of the in at least their full 8 hours of labor. shower down benefits on them. There is minority had been informed by the Had these folks been willing to put in nothing wrong with having a fund- chairman of the Committee on Science their full 8 hours of labor and then raiser. They do go on all the time on that that phone call was being made, catch their corporate jet to New York both sides. It is the only way this place and that there would be sufficient time and enjoy the chance to be wined and seems to be able to operate. for the gentleman to respond to the dined with the big corporate lobbyists, However, what is wrong is when de- rollcall vote over here, he would not then we would not have had this prob- mocracy is trampled in the process, have had to run over here right away lem. We could well have permitted peo- ple to vote in due order in the Commit- and people are cut off and denied their b 1145 right to vote, be it on the floor or in an tee on Science and to vote here on the important committee of this House You were not told that, were you? floor of the House without rancor, like the Committee on Science. Mr. DOGGETT. We heard nothing of without any kind of interruption or Mr. VOLKMER. Mr. Speaker, will the it. It would have allowed those Mem- disruption such as we have had, and we gentleman yield? bers like the gentlewoman from Michi- would be much further along on the Mr. DOGGETT. I yield to the gen- gan [Ms. RIVERS] to keep her 100-per- people’s business today had these nasty tleman from Missouri. cent voting record for the people of incidents, one here on the floor of the Mr. VOLKMER. Mr. Speaker, I think Michigan. House, one in the Committee on we all recognize that immediately fol- Mrs. SCHROEDER. Mr. Speaker, will Science, totally uncalled for, totally lowing the disposition of this motion the gentleman yield? unnecessary, had those no occurred. by the floor leader, that we are going Mr. DOGGETT. I yield to the gentle- Mrs. SCHROEDER. If the gentleman to be back on the legislative branch ap- woman from Colorado. will yield further, I think the gen- propriation bill. The very first vote is Mrs. SCHROEDER. I really thank the tleman is making an excellent point. going to be, again, on OTA. At least gentleman from Texas for his leader- That what we are talking about is by that is being corrected. ship on this. I know in Judiciary, we trying to compact the day into just a H 6212 CONGRESSIONAL RECORD — HOUSE June 22, 1995 few hours so it is convenient for jet- until at least 5. There will be plenty of to climb up that economic ladder in- setters, or fat cats, so they don’t have time to fly off in the corporate jets and stead of tilting all of the benefit to to be kept waiting and whatever is deal with the contributors that I know those who are sitting comfortably on wrong. You do your business first and are so vital to the Republican Party. top. That is what this is about. then you do the other thing. We under- They can do that and still conduct the I object and ask for a ‘‘no’’ vote on stand that. people’s business in a fair and proper this attempt of the Committee on If people say, ‘‘Well, we don’t want to way. Science to continue to operate under work late that night,’’ that may be one I think that yesterday democracy the same old procedures. I ask that we thing. But 3:30 in the afternoon is not was trampled twice, once on the floor assure democracy and fair play for our really late. I think that most people of this House, once in the Committee constituents as well as our Members would be very surprised by that. But I on Science. Let us see in today’s action and hopefully put some genuine mean- think basically what Members want to that in addition to revotes, that we ac- ing in the term ‘‘reform.’’ know is what are the rules around tually have a commitment to reform. Mr. ARMEY. Mr. Speaker, I yield here? How many times can we have When I came here in Congress for the myself such time as I may consume. I votes? How late are they going to be? first day in January of this year, I have have just a few more comments before Are we going to have to start choosing to admit that I was not all that happy I yield back the balance of my time. between where our vote is recorded? about finding myself in the minority. Mr. Speaker, I want to thank the And it is not our vote. It is the vote of But I will also admit that I was quite gentleman from Texas for his remarks. the people we represent. I think that is happy to see Republican colleagues I am sure we would all agree they were the thing we have to keep focusing on. saying they were going to shake this very entertaining. People expect their voice to be heard place up. I think business as usual I should say, Mr. Speaker, the gen- here and Members are now being forced needed to be shaken up in this place. If tleman from Texas has clearly dem- to choose between where they are I have any disagreement with them onstrated, I think, to the satisfaction going to cast their vote since we do not now, it is not that they shake too of this entire body that he does moral really quite know what the new rules much but that they did not shake outrage very well. But I must admit, are. I thank the gentleman for pointing enough. When things like this happen, he is far more entertaining when he this out. it suggests we are right back to busi- does wide-eyed innocence, and I should I hope people vote ‘‘no.’’ I think we ness as usual. hope that I will not have to experience have got to get a little more in order It is not enough to say, ‘‘Well, that’s the performance again in the future. here. the way somebody else did it 10 or 20 Mr. Speaker, I yield back the balance Mr. DOGGETT. I think there is no years ago.’’ These are supposed to be of my time, and I move the previous doubt about the outcome of this vote revolutionaries, committed to revolu- question on the motion. tionary change in this House. It is on my objection than any of the other The previous question was ordered. votes that we have had this time. But nothing but revolting to see what hap- The SPEAKER pro tempore. The I would commend to the majority lead- pened yesterday. We do need revolu- question is on the motion offered by er the leadership of a member of the tionary change in this House, and I the gentleman from Texas [Mr. majority of the subcommittee on which think that assuring that every Member ARMEY]. I serve on the Committee on Science, gets to cast their vote fully and fairly The question was taken; and the the distinguished gentleman from New in committee and on the floor of the Speaker pro tempore announced that Mexico [Mr. SCHIFF], because we went Congress is absolutely vital to that re- the noes appeared to have it. through a subcommittee hearing on form. Mr. ARMEY. Mr. Speaker, I object to some of the same legislation being con- If we can combine with that oppor- the vote on the ground that a quorum sidered in the Committee on Science. tunity some affirmative and immediate is not present and make the point of It was without disruption, it was with- action, if we could have as much of a order that a quorum is not present. out ill feeling, even though we disagree rush to true campaign finance reform, on some of the substance as much as as much of a rush to a gift ban and free The SPEAKER pro tempore. Evi- with any member of the full commit- trips and this kind of thing, to chang- dently a quorum is not present. tee. That is the way that the commit- ing our rules to deal with that as there This is a 17-minute vote. tees and the subcommittees of this was a rush to justice yesterday to get The Sergeant at Arms will notify ab- Congress need to be operated. to that fund-raiser up in Manhattan, sent Members. The people did not ask for us to come we would begin to reform this system The vote was taken by electronic de- here and get engaged in some kind of so that people had not only their full vice, and there were—yeas 232, nays partisan tussle. They simply wanted a 100-percent right to vote on the floor of 187, not voting 15, as follows: full exchange of ideas where every this House and in the Committee on [Roll No. 409] Member is accorded the dignity of a Science but so that our citizens were YEAS—232 vote, to represent their constituents. dealt with fully and fairly, so that the Allard Callahan Duncan I would ask the distinguished major- ties that seem to bind too many Mem- Archer Calvert Dunn ity leader, whatever the outcome, per- bers of this body to the lobby, the gifts, Armey Camp Ehlers Bachus Canady Ehrlich haps the predetermined outcome of the freebies, the free trips, so that Baker (CA) Castle Emerson this vote, to simply work with us to see those would be ended, as my colleague Baker (LA) Chabot English that this does not happen again, to see the gentleman from Texas [Mr. BRY- Ballenger Chambliss Ensign Barr Chenoweth Everett that Members are not forced to a ANT ] has been trying to do with a true Barrett (NE) Christensen Ewing choice between representing their con- gift ban limitation in our rules but Bartlett Chrysler Fawell stituents within a committee and rep- which we cannot get up for a vote on Barton Clinger Fields (TX) resenting them on the floor of the the floor of this House. Maybe we could Bass Coble Flanagan Bateman Coburn Foley House. That is what all this is about, have done that after 4:00 yesterday. Bereuter Collins (GA) Forbes so that there can be informed represen- Likewise, so that we could move for- Bilbray Combest Fowler tation, fair representation. We ask for ward as there appeared to be some bi- Bilirakis Cooley Fox no special privilege on the Democratic Bliley Cox Franks (CT) partisan support for moving forward Blute Crane Franks (NJ) side, only the opportunity to represent earlier in the week but it seems to Boehlert Crapo Frelinghuysen our constituents and hopefully work have vanished away, to do something Boehner Cremeans Frisa toward a bipartisan answer to some of about campaign finance reform. Bonilla Cubin Funderburk Bono Cunningham Gallegly the problems that this country faces. That gets to the heart of real reform, Brownback Davis Ganske I know that there will be times when to genuinely shaking this body up and Bryant (TN) Deal Gekas the crush of campaign duties may draw giving the American people the kind of Bunn DeLay Gilchrest people away. But let that not be at the reform that they need to have a Con- Bunning Diaz-Balart Gillmor Burr Dickey Gilman expense of the normal workday. There gress that is responsible first and fore- Burton Doolittle Goodlatte is no reason why this body cannot work most to the people that are struggling Buyer Dreier Goodling June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6213 Goss Longley Saxton Richardson Stark Vento Mr. FAZIO of California. Mr. Chair- Graham Lucas Scarborough Rivers Stenholm Visclosky man, will the gentleman yield? Greenwood Manzullo Schaefer Roemer Stokes Volkmer Gunderson Martini Seastrand Rose Studds Ward Mr. PACKARD. Further reserving the Gutknecht McCollum Sensenbrenner Roybal-Allard Stupak Watt (NC) right to object, I yield to the gen- Hancock McCrery Shadegg Rush Tanner Waxman tleman from California. Hansen McDade Shaw Sabo Taylor (MS) Williams Mr. FAZIO of California. Mr. Chair- Hastert McHugh Shays Sanders Tejeda Wilson Sawyer Thompson man, I would amend my request. Hastings (WA) McInnis Shuster Wise Schroeder Thornton Hayworth McIntosh Skeen Woolsey The CHAIRMAN. The unanimous- Hefley McKeon Scott Thurman Smith (MI) Wyden consent request now is that the gen- Heineman Metcalf Sisisky Torricelli Smith (NJ) Wynn Herger Meyers Skaggs Towns tleman from New York [Mr. HOUGHTON] Smith (TX) Hilleary Mica Skelton Tucker Yates will be given 2 minutes, and the gen- Smith (WA) Hobson Miller (FL) Slaughter Velazquez tleman from California [Mr. PACKARD] Solomon Hoekstra Molinari NOT VOTING—15 will be given 2 minutes. Hoke Moorhead Souder Horn Morella Spence Ackerman Kennedy (MA) Schumer Mr. PACKARD. Mr. Chairman, I Hostettler Myers Spratt Browder Laughlin Serrano withdraw my reservation of objection. Houghton Myrick Stearns Chapman Moakley Torres The CHAIRMAN. Is there objection Hunter Nethercutt Stockman Dornan Mollohan Waters to the request of the gentleman from Hutchinson Neumann Stump Harman Schiff White Hyde Ney Talent California? Inglis Norwood Tate b 1214 There was no objection. Istook Nussle Tauzin Mr. METCALF changed his vote from The CHAIRMAN. The gentleman Jacobs Oxley Taylor (NC) from New York [Mr. HOUGHTON] will be Johnson (CT) Packard Thomas ‘‘nay’’ to ‘‘yea.’’ Johnson, Sam Parker Thornberry So the motion was agreed to. recognized for 2 minutes, and the gen- Jones Paxon Tiahrt The result of the vote was announced tleman from California [Mr. PACKARD] Kasich Petri Torkildsen will be recognized for 2 minutes. Kelly Pombo as above recorded. Traficant A motion to reconsider was laid on The Chair recognizes the gentleman Kim Porter Upton King Portman Vucanovich the table. from New York [Mr. HOUGHTON]. Kingston Pryce Waldholtz PARLIAMENTARY INQUIRY Klug Quillen f Walker Knollenberg Quinn Mr. HOUGHTON. Mr. Chairman, Walsh Kolbe Radanovich LEGISLATIVE BRANCH rather than exercising my right to Wamp LaHood Ramstad APPROPRIATIONS ACT, 1996 speak for 2 minutes, maybe I can han- Largent Regula Watts (OK) Latham Riggs Weldon (FL) The SPEAKER pro tempore (Mr. dle this through a parliamentary in- LaTourette Roberts Weldon (PA) GILLMOR). Pursuant to House Resolu- quiry. Lazio Rogers Weller tion 169 and rule XXIII, the Chair de- The CHAIRMAN. The gentleman will Whitfield Leach Rohrabacher clares the House in the Committee of state his parliamentary inquiry. Lewis (CA) Ros-Lehtinen Wicker Lewis (KY) Roth Wolf the Whole House on the State of the Mr. HOUGHTON. Am I right that this Lightfoot Roukema Young (AK) Union for the further consideration of is a revote on the Fazio amendment, Linder Royce Young (FL) the bill, H.R. 1854. amended by me yesterday? Livingston Salmon Zeliff The CHAIRMAN. The gentleman is LoBiondo Sanford Zimmer b 1217 correct. NAYS—187 IN THE COMMITTEE OF THE WHOLE Mr. HOUGHTON. I thank the Chair. Abercrombie Eshoo Lipinski Accordingly, the House resolved it- Mr. Chairman, I yield the balance of Andrews Evans Lofgren self into the Committee of the Whole my time to the gentleman from Cali- Baesler Farr Lowey House on the State of the Union for the fornia [Mr. FAZIO]. Baldacci Fattah Luther Mr. FAZIO of California. Mr. Chair- Barcia Fazio Maloney further consideration of the bill (H.R. Barrett (WI) Fields (LA) Manton 1854) making appropriations for the man, I appreciate the gentleman yield- Becerra Filner Markey legislative branch for the fiscal year ing me the time. Beilenson Flake Martinez ending September 30, 1996, and for I would reserve the balance of my Bentsen Foglietta Mascara time if the gentleman has yielded it to Berman Ford Matsui other purposes, with Mr. LINDER in the Bevill Frank (MA) McCarthy chair. me. Bishop Frost McDermott The Clerk read the title of the bill. Mr. PACKARD. Mr. Chairman, I Bonior Furse McHale The CHAIRMAN. When the Commit- would like to close on this, so I will re- Borski Gejdenson McKinney Boucher Gephardt McNulty tee of the Whole rose on Wednesday, serve the balance of my time. Brewster Geren Meehan June 21, 1995, amendment No. 5 printed PARLIAMENTARY INQUIRY Brown (CA) Gibbons Meek in House Report 104–146 offered by the Mr. WATT of North Carolina. Mr. Brown (FL) Gonzalez Menendez Brown (OH) Gordon Mfume gentleman from California [Mr. FAZIO] Chairman, I have a parliamentary in- Bryant (TX) Green Miller (CA) had been disposed of. quiry. Cardin Gutierrez Mineta DE NOVO VOTE ON AMENDMENT OFFERED BY MR. The CHAIRMAN. The gentleman will Clay Hall (OH) Minge FAZIO OF CALIFORNIA, AS AMENDED state his parliamentary inquiry. Clayton Hall (TX) Mink Clement Hamilton Montgomery The CHAIRMAN. Pursuant to the Mr. WATT of North Carolina. Mr. Clyburn Hastings (FL) Moran order of the House today, the Chair Chairman, under what authority would Coleman Hayes Murtha will now put the question de novo. the gentleman have the right to close Collins (IL) Hefner Nadler Collins (MI) Hilliard Neal The question is on the amendment on a unanimous-consent request that Condit Hinchey Oberstar offered by the gentleman from Califor- was divided? Conyers Holden Obey nia [Mr. FAZIO], as amended. The CHAIRMAN. The gentleman Costello Hoyer Olver Mr. FAZIO of California. Mr. Chair- from California [Mr. PACKARD] is the Coyne Jackson-Lee Ortiz Cramer Jefferson Orton man, I ask unanimous consent that the manager of the bill. Danner Johnson (SD) Owens gentleman from New York [Mr. HOUGH- Mr. WATT of North Carolina. But de la Garza Johnson, E. B. Pallone TON] be allowed to speak out of order this is not on the bill. Under what au- DeFazio Johnston Pastor thority would he have the right to DeLauro Kanjorski Payne (NJ) for 2 minutes in order to underscore Dellums Kaptur Payne (VA) and explain the amendment that is close? This is a unanimous-consent re- Deutsch Kennedy (RI) Pelosi about to be voted on. quest. Dicks Kennelly Peterson (FL) The CHAIRMAN. Is there objection The CHAIRMAN. This is additional Dingell Kildee Peterson (MN) Dixon Kleczka Pickett to the request of the gentleman from controlled debate, permitted by unani- Doggett Klink Pomeroy California? mous consent, on an amendment to the Dooley LaFalce Poshard Mr. PACKARD. Mr. Chairman, re- bill. Doyle Lantos Rahall serving the right to object, I will only Mr. FAZIO of California. Mr. Chair- Durbin Levin Rangel Edwards Lewis (GA) Reed consent to this request if we are given man, I know we have had a lot of dis- Engel Lincoln Reynolds equal time. cussion this morning about Members H 6214 CONGRESSIONAL RECORD — HOUSE June 22, 1995 who are aggrieved by the cir- would deeply hurt the Library of Con- Torricelli Volkmer Wilson cumstances that occurred when this gress. Towns Walsh Wise Traficant Ward Woolsey was last voted yesterday, and I cer- I urge the Members to vote against Tucker Waters Wyden tainly relate to the gentleman from this amendment and to defeat the Upton Watt (NC) Wynn Alabama [Mr. HILLIARD] and the gen- amendment to preserve the OTA, and Velazquez Waxman Yates Vento Weldon (PA) tleman from Pennsylvania [Mr. FOGLI- to support the Speaker. Visclosky Williams ETTA] and their concerns, but I think The CHAIRMAN. All time has ex- there is another individual Member pired. NOES—204 who has been aggrieved as well, and I The Chair will now put the question Allard Fowler Myers Andrews Fox Myrick think that is the gentleman from New de novo. Archer Franks (CT) Nethercutt York [Mr. HOUGHTON]. The question is on the amendment Armey Frelinghuysen Neumann The gentleman from New York [Mr. offered by the gentleman from Califor- Bachus Frisa Ney HOUGHTON] worked very hard to bring Baker (CA) Funderburk Norwood nia [Mr. FAZIO], as amended. Baker (LA) Gallegly Nussle to the floor a compromise amendment The question was taken; and the Ballenger Ganske Packard which allowed for a reduction in OTA Chairman announced that he was in Barr Gekas Petri of some $7 million, and yet under the doubt. Barrett (NE) Gillmor Pickett aegis of the Library of Congress, kept Bartlett Goodlatte Pombo RECORDED VOTE Barton Goss Porter this very important scientific advisory Mr. FAZIO of California. Mr. Chair- Bass Graham Portman entity in existence. He worked his side Bateman Greenwood Pryce of the aisle, and he found a majority; man, I demand a recorded vote. Bilbray Gutknecht Quillen he found it once, and I believe he found A recorded vote was ordered. Bilirakis Hancock Radanovich The vote was taken by electronic de- Bliley Hansen Ramstad it twice. Blute Hastert Regula He brings the perspective of perhaps vice, and there were—ayes 220, noes 204, Boehner Hastings (WA) Riggs the most successful businessman in not voting 10, as follows: Bonilla Hayworth Rogers [Roll No. 410] Bono Hefley Rohrabacher this institution to this issue. He has Brewster Herger Ros-Lehtinen made clear that he believes cutting our AYES—220 Brownback Hilleary Roth Bryant (TN) Hobson research and evaluation capability is Abercrombie Frost Meek Royce Bunning Hoekstra Baesler Furse Menendez Salmon not the way to downsize an institution, Burr Hoke Baldacci Gejdenson Mfume Sanders even the Congress of the United States. Burton Horn Barcia Gephardt Miller (CA) Sanford Buyer Hostettler I hope when all Members choose their Barrett (WI) Geren Mineta Saxton Callahan Hunter decision to vote now for the third time Becerra Gibbons Minge Scarborough Calvert Hutchinson Beilenson Gilchrest Mink Schaefer on this issue, they will affirm his posi- Camp Inglis Bentsen Gilman Mollohan Seastrand tion, they will vote to support his per- Canady Istook Bereuter Gonzalez Montgomery Sensenbrenner Chabot Johnson, Sam spective and, I think, as well, will vote Berman Goodling Moran Shadegg Chambliss Jones to confirm the fact that when you Bevill Gordon Morella Shaw Chenoweth Kasich Bishop Green Murtha Shays work the system right here in the Con- Christensen Kelly Boehlert Gunderson Nadler Shuster Chrysler Kim gress, no one, majority or minority, Bonior Gutierrez Neal Sisisky Coble Kingston should be able to deprive you of having Borski Hall (OH) Oberstar Skeen Coburn Klug Boucher Hall (TX) Obey Smith (MI) your day in court, the court of public Collins (GA) Knollenberg Browder Hamilton Olver Smith (NJ) opinion here on the floor of the House Combest Kolbe Brown (CA) Hastings (FL) Ortiz Smith (TX) Cooley LaHood of Representatives. Brown (FL) Hayes Orton Smith (WA) Cox Largent I ask for an ‘‘aye’’ vote on the Hough- Brown (OH) Hefner Owens Souder Crane Latham Bryant (TX) Heineman Oxley Spence ton-Fazio amendment. Crapo LaTourette Bunn Hilliard Pallone Stearns Mr. PACKARD. Mr. Chairman, this is Cremeans Lewis (CA) Cardin Hinchey Pastor Stockman Cubin Lewis (KY) an amendment that will preserve OTA Castle Holden Paxon Stump Cunningham Lightfoot but transfer it to the Library of Con- Clay Houghton Payne (NJ) Talent Davis Linder Clayton Hoyer Payne (VA) Tate gress. Deal Livingston Clement Hyde Pelosi Taylor (NC) DeLay LoBiondo The committee, in their bill, wants Clinger Jackson-Lee Peterson (FL) Thomas Diaz-Balart Longley to allow the functions of OTA to be Clyburn Jacobs Peterson (MN) Thornberry Dickey Lucas Coleman Jefferson Pomeroy Tiahrt done at the Library of Congress or at Doolittle Luther Collins (IL) Johnson (CT) Poshard Vucanovich other agencies that do scientific stud- Dornan Manzullo Collins (MI) Johnson (SD) Quinn Waldholtz Dreier McCollum ies and reports that duplicate what Condit Johnson, E.B. Rahall Walker Duncan McCrery now the OTA does, but the bill elimi- Conyers Johnston Rangel Wamp Dunn McDade Costello Kanjorski Reed Watts (OK) nates OTA. Ehrlich McHugh Coyne Kaptur Reynolds Weldon (FL) English McInnis This amendment will preserve OTA, Cramer Kennedy (MA) Richardson Weller Ensign McIntosh but transfer it to the Library of Con- Danner Kennedy (RI) Rivers White Everett McKeon de la Garza Kennelly Roberts Whitfield gress. We think that if we are going to Ewing Metcalf DeFazio Kildee Roemer Wicker streamline, downsize, and consolidate Fawell Meyers DeLauro King Rose Wolf Fields (TX) Mica duplicating services, the committee Dellums Kleczka Roukema Young (AK) Flanagan Miller (FL) bill already does that. Deutsch Klink Roybal-Allard Young (FL) Foley Molinari Dicks LaFalce Rush Zeliff I must mention that the Speaker Forbes Moorhead Zimmer very strongly does not support this Dingell Lantos Sabo Dixon Lazio Sawyer NOT VOTING—10 amendment and very strongly does not Doggett Leach Schiff support gutting the Library of Con- Dooley Levin Schroeder Ackerman Moakley Solomon gress. This amendment will take $16.5 Doyle Lewis (GA) Scott Chapman Parker Torres Durbin Lincoln Skaggs Harman Schumer million out of the Library of Congress. Edwards Lipinski Skelton Laughlin Serrano The Library of Congress would have to Ehlers Lofgren Slaughter discontinue many of its functions in Emerson Lowey Spratt b 1241 terms of its basic and core functions, in Engel Maloney Stark Eshoo Manton Stenholm Mr. SMITH of Texas changed his vote terms of cataloging. It would prevent a Evans Markey Stokes from ‘‘aye’’ to ‘‘no.’’ full quarter of the cataloging necessary Farr Martinez Studds Fattah Martini Stupak So the amendment, as amended, was for its new holdings, and it would also agreed to. take away some of the services to the Fazio Mascara Tanner Fields (LA) Matsui Tauzin The result of the vote was announced public. It would cut the preservation Filner McCarthy Taylor (MS) as above recorded. program by 15 to 20 percent. Flake McDermott Tejeda It would also cut the infrastructure Foglietta McHale Thompson PERSONAL EXPLANATION Ford McKinney Thornton support, the automation program, per- Frank (MA) McNulty Thurman Ms. HARMAN. Mr. Chairman, I was sonnel, and procurement processes. It Franks (NJ) Meehan Torkildsen unavoidably absent during rollcall 410 June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6215 to restore funds to the Office of Tech- do under this legislation, but it will estimating on the costs of each man- nology Assessment. Had I been present give them a good start on accomplish- date so that we will know what they I would have voted ‘‘aye.’’ ing that. We offset it from the Folklife will cost States and localities and the The CHAIRMAN. It is now in order to Center in the Library of Congress. This private sector, will not be able to do it. consider amendment No. 7 printed in is a program that is not authorized, it It will be gutted completely. House Report 104–146. was not reauthorized. It is a program Let us not undo the unfunded man- AMENDMENT OFFERED BY MR. CLINGER that receives a large amount of private dates reform that a bipartisan Con- Mr. CLINGER. Mr. Chairman, I offer sector funding, and we would encour- gress and the President passed this an amendment. age that to continue. It is also a pro- spring and the President signed into The CHAIRMAN. The Clerk will des- gram that frankly should go into the law. Without this amendment, that is ignate the amendment. private sector for funding. exactly what we are doing. So I rise in The text of the amendment is as fol- Mr. Chairman, I reserve the balance support of the Clinger amendment. lows: of my time. Mr. FAZIO of California. Mr. Chair- man, I yield myself such time as I may Amendment offered by Mr. CLINGER: Page b 1245 20, after line 10, insert the following: consume. In addition, for salaries and expenses of the Mr. FAZIO of California. Mr. Chair- I simply want to say at this point I Congressional Budget Office necessary to man, I yield 1 minute to the gentleman am in a difficult position. I have been carry out the provisions of title I of the Un- from Missouri [Mr. EMERSON]. urging the chairman of this committee funded Mandates Reform Act of 1965 (Pub. L. Mr. EMERSON. Mr. Chairman, I to provide additional funding to CBO. I 104–4), as authorized by section 109 of such thank the gentleman for yielding. do think they are going to need at Act, $1,100,000. Mr. Chairman, my concern is about Page 26, beginning on line 12, strike ‘‘oper- least $2.5 million to take on their new ation and maintenance of the American the Folklife Center, which I know responsibilities. The gentleman from Folklife Center in the Library;’’. through personal experience to be a Virginia, Mr. DAVIS, I think just out- Page 26, line 19, after the first dollar fig- most useful entity and function of the lined, as Chairman CLINGER has, the re- ure, insert the following: ‘‘(less $1,165,000)’’. Library of Congress. I visited with sponsibility that we have to give CBO The CHAIRMAN. Pursuant to the Chairman CLINGER and Chairman the resources to do what we have just rule, the gentleman from Pennsylvania PACKARD about this issue, and they asked them to do in the first 100 days [Mr. CLINGER] and a Member opposed have assured me, and I would like to of this Congress. will each be recognized for 5 minutes. engage the gentleman from California But I do not want to do it on the Who seeks time in opposition? in a brief colloquy, that this function back of the Folklife Center. The gen- Mr. FAZIO of California. Mr. Chair- will not be decimated, that it will sim- tleman from California [Mr. THOMAS], man, I am in opposition to the amend- ply be rearranged. Am I correct in that the chairman of the House Committee ment and would request the allocation understanding? on Oversight, tells us that they will of time. Mr. PACKARD. Mr. Chairman, will take up the authorization of this en- The CHAIRMAN. The gentleman the gentleman yield? tity in due time. But if this amend- from California [Mr. FAZIO] will be rec- Mr. EMERSON. I yield to the gen- ment is adopted, there is obviously in- ognized for 5 minutes. tleman from California. sufficient support for it, and therefore The Chair recognizes the gentleman Mr. PACKARD. Mr. Chairman, I he may not even take up the authoriza- from Pennsylvania [Mr. CLINGER]. think the American Folklife Center is tion. Mr. CLINGER. Mr. Chairman, I yield important and ought to be retained. I I think people who believe that the myself 1 minute. cannot assure the gentleman from Mis- Folklife Center has value, as I do, Mr. Chairman, at the outset I say souri that it will be retained, because ought to vote against this amendment, that anybody who supported the un- that will be a function of trying to and we ought to find additional 602(b) funded mandates legislation which we work out this cut to the library appro- allocations to this subcommittee to passed earlier this year and which priation. But certainly I would work help CBO when we get to conference. passed by an overwhelming vote, 390 toward that end. This is obviously a conferrable item Members in favor of that legislation, Mr EMERSON. Mr. Chairman, re- with the Senate, a joint item we will should indeed support this amendment. claiming my time, I thank the gen- both have to consider. As I said at the time we debated the tleman. I know his commitment to the Mr. Chairman, I yield 1 minute to the unfunded mandates legislation, this Folklife Center, and would like, as the gentleman from South Carolina [Mr. could be an effective way to reorder the process moves forward, to continue to SPRATT]. Federal, State, and local relationship. work with him, and also in the author- Mr. SPRATT. Mr. Chairman, I thank It could also be an effective way to re- ization process, to ensure that this the gentleman for yielding. lieve the burdens which we imposed on most vital function is indeed retained. Mr. Chairman, I would like to say to State and local governments, but only I thank the gentleman for his gener- the Members of the House who do not if we were able to implement the law osity in yielding. know what the American Folklife Cen- properly, and the CBO plays a vital Mr. CLINGER. Mr. Chairman, I am ter is, I did not either, until I came on role in the implementation of the un- pleased to yield 1 minute to the gen- the House a couple years ago and we funded mandates legislation. CBO must tleman from Virginia [Mr. DAVIS], a had an authorization bill under suspen- do the estimating as to whether or not very valued member of the committee. sion, and I was told at the door that the threshold of $50 million nationwide Mr. DAVIS. Mr. Chairman, why are this was Lawrence Welk’s homestead impact is reached or not. If it is not we cutting the American Folklife Cen- all over again. So like a hoard of other reached, then there is not a point of ter? It is a great program, but I think people, I voted no, only to get back to order lies. If it is reached, then a point the money can be raised from the pri- my office and have a phone call from a of order does lie. The whole credibility vate sector. It does not have to come constituent, who happened to be chair- of the unfunded mandates legislation from the governmental sector. More man of the board of the American would be called into question if those importantly, this money was deauthor- Folklife Center. estimates are not accurate. If, in fact, ized and is not authorized. This money I learned out in a hurry what it was they can be challenged or questioned or is appropriated but does not have the all about. I want to say now I am a be- found to be somehow ineffective, then I proper authorization at this point. liever. I have seen it. There are about think we lose the legislation. Why reprogram dollars to the Con- 12 full-time equivalents there. Last The CHAIRMAN. The time of the gressional Budget Office? I think the year they served the needs of 9,000 re- gentleman has expired. answer is very simple. Without this searchers, a wonderful repository of Mr. CLINGER. Mr. Chairman, I yield amendment, the unfunded mandates American folklife and folklore. myself 30 seconds. legislation that we passed in a biparti- One small example of what they do: What we have done is provide an off- san manner, both Houses of Congress, Years ago, wax cylinders were made re- set of $1,100,000. That is not really suf- signed by the President, will have no cording Indian chiefs and Indians of ficient to do the job CBO is charged to teeth, because the CBO, who does the western tribes, recollections of their H 6216 CONGRESSIONAL RECORD — HOUSE June 22, 1995 tribe, native music and things of this around the campfire during cattle drives and Folklife Center, Hal Cannon, testifies. First, kind. These were languishing some- the Folklife Center provides the only record- that center has benefited greatly from tax- where in the Library of Congress. This ings and conversations we have of this folk based supportÐFederal, State, and local. organization brought them forth, per- cultures. Second, the Western Folklife Center does not fected them, made them into digitized Mexican-Americans in New Mexico settled have the responsibility for a unique and heav- CD–ROM’s, and now we have that re- this country long before Columbus landed on ily used national archive of 1.5 million items; source preserved. We need some organi- Plymouth Rock. Their rich contributions to our the personnel to support such a collection zation that is committed to this. For culture should be and are chronicled in the adequatelyÐacquisitions, processing, preser- $1.25 million, surely we can continue John Donald Robb collection of Spanish- vation, reference servicesÐcannot be main- this kind of enterprise. American folksongs and similar artifacts. tained by raising private funds. Mr. CLINGER. Mr. Chairman, I yield New Mexico is also blessed with a rich Na- Mr. CLINGER. Mr. Chairman, I am myself 15 seconds merely to say last tive American culture. The American Folklife very pleased to yield 11⁄2 minutes to the year the American Folklife Center Center documents that culture with early re- gentleman from California [Mr. raised $330,000 in private funding. It ob- cordings of Zuni songs and folklore, which CONDIT], a very valuable member of the viously does attract a great deal of pri- date back to 1890. There are also recordings committee, a supporter of this legisla- vate support. The other point I would from the eight Pueblos in northern New Mex- tion, and a cosponsor of this legisla- make is that under our amendment, we ico, and materials from the Mascalero and tion. do in no way limit the Library of Con- Chiricahua Apache peoples. Mr. CONDIT. Mr. Chairman, in gress in the ability to apply funds to As a nation, we have done more to destroy March the President signed the Un- that purpose, if they so choose. native American culture than to preserve it; re- funded Mandate Reform Act into law. Mr. Chairman, I am pleased to yield cent appropriation bills would kill all funding for We all debated that issue on the floor, 30 seconds to the gentleman from Cali- the National Museum of American Indian that and we are all well aware we needed to fornia [Mr. PACKARD], the chairman of would have been built here in Washington. take action that would require us the subcommittee. Let's do the right thing and preserve the under the new law to come up with Mr. PACKARD. Mr. Chairman, I will American Folklife Center collection of native money to pay for the studies that CBO take a short time just to say I am not American culture. had to do. going to actively oppose this amend- The American Folklife Center brings history That is basically what we are doing ment, but I do have some concerns to life like no other museum we have. It keeps here today, is meeting our obligation about continually raiding the Library pieces of our history alive for future genera- to come up with some money. It is of Congress. The last amendment that tions to understand. When our children want probably not enough money. We will passed was $16.5 million. This is an- to know what songs their relatives sang, or have to do this again. It is unfortunate other $1.165 million. That does give me what native American language sounded like we have to take the money from the some concerns. I hope we can find a 100 years ago, the Folklife Center can provide American Folklife Center. I understand way to protect and preserve the Amer- that information. that and am sympathetic to this. ican Folklife Center. The center has been part of the Library of Somebody needs to speak on behalf of Mr. FAZIO of California. Mr. Chair- Congress since 1928Ðit survived the Depres- local government, county government, man, I yield 1 minute to the gentleman sion and post-World War II downsizing, surely and State government on this issue. We from New Mexico [Mr. RICHARDSON]. we can preserve it now. have to do an assessment of the man- Mr. RICHARDSON. Mr. Chairman, I It is internationally renowned and heavily dates so that we can get an actual cost. sympathize with the motives of the used. It's the sort of education that we must That is basically what we are doing gentleman. He has to find money for continue to cherish and fund. today. We are doing it for local and the unfunded mandates. But clearly The center's budget includes not just pro- State governments, and we need to be the American Folklife Center is not grams but collections. Its Archive of Folk Cul- supportive of that amendment. the place to cut, and would be a dev- ture contains nearly 1.5 million sound record- In addition to that, it has been men- astating cut. What we are basically ings, photographs, manuscripts, and other tioned, and I will reiterate for the doing is hurting the culture, the di- unique materials representing American and Members on our side, this is an activ- verse culture, of this country. (to a smaller extent) world folk music, folklore, ity that has the support of the private This Library of Congress Folklife and folklife traditions. citizens, and they can raise the money Center has 1.5 million manuscripts, The Archive has been part of the Library and it is a way for us to go. I am just sound recordings, photographs, films, since 1928, surviving the 1930's, the post- saying we can move to the private sec- and periodicals. It is unique in the WWII downsizing, and other vicissitudes. It is tor and we can raise some money to world. It reveals our history through internationally renowned and heavily used. help this American Folklife Center, as collections of conservations, arts, Users include researchers, publishing and well as the gentleman from California crafts, songs, traditions of everyday record companies from the private sector, and [Mr. FAZIO] mentioned that we might Americans, our cowboy history, our na- members of the communities documented in be able to conference this and work out tive American history, our Mexican- the collections. Its American Indian holdings another solution. If we can do that, American history. alone are unparalleled in the world; its African- that is great. I have had many constituents call American holdings are unequalled. Every But we have to fulfill our commit- with great concerns about what this State, every region, and nearly every ethnic ment on the unfunded mandate. The cut would do. This is not the right group are likewise represented. President signed the law. We in Con- thing to do. We should not go after this The collections-based portion of the center's gress need to come up with this compo- center that is good, that is well-man- budget amounts to approximately three-fourths nent to make it happen. So ask all aged, and I urge my colleagues to de- of the total budget; the other one-fourth covers Members to vote in support of the feat the amendment. programs and general operations overhead. amendment. Mr. Chairman, I rise today to oppose the The center in 1994 raised or leveraged Mr. CLINGER. Mr. Chairman, I yield Clinger amendment because I believe there is funds amounting to about $350,000, or one- 15 seconds to the gentleman from Ohio nothing more sacred to the people of this third again the appropriated budget. Fund-rais- [Mr. PORTMAN], an architect of the un- country than our rich, diverse culture. ing will continue to increase. But fund-raising funded mandates legislation and a The American Folklife Center housed in the for the basic collections support is difficult if strong supporter of this amendment. Library of Congress maintains 1.5 million not impossible. That base of public support, Mr. PORTMAN. Mr. Chairman, I will manuscripts, sound recordings, photographs, for the center and the Library as a whole, is be brief, by necessity. Let me say I films, and periodicals. It is unique in the world. what the public as well as donors expect the think the Folklife Center can get a lot It reveals our history through collections of Congress to fund. more in private funding. They did raise conversations, arts, crafts, songs, and tradi- Some supporters of the idea of removing $330,000 in 1994, three times what they tions of everyday Americans. the center's budget cite the Western Folklife raised in 1990. The one in the western My State of New Mexico has a particularly Center in Elko, NV, as an example of a folklife region does it entirely by private diverse history. Ranchers rose every day of center succeeding on private funding. This is funds. I think that offset can be han- their lives to herd cattle and sing songs not true, as the artistic director of the Western dled. June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6217 If you voted for the unfunded man- Clinger Hoekstra Porter Jefferson Miller (FL) Schroeder date bill, you should vote ‘‘yes’’ on this Coble Hoke Portman Johnson (SD) Mineta Scott Collins (GA) Holden Poshard Johnson, E. B. Mink Skaggs amendment. Combest Horn Pryce Johnston Mollohan Slaughter Mr. FAZIO of California. Mr. Chair- Condit Hostettler Quillen Kaptur Moran Spratt man, I yield myself the balance of my Cooley Houghton Quinn Kennedy (MA) Morella Stark Costello Hunter Radanovich Kennelly Myrick Studds time. Cox Hutchinson Ramstad Kildee Nadler Stupak Mr. Chairman, I just want to reit- Crane Hyde Reed Klink Neal Taylor (NC) erate the importance of the Folklife Crapo Inglis Regula LaFalce Oberstar Tejeda Center. I think we all understand we Cremeans Istook Riggs Lantos Obey Thompson Cubin Jacobs Roberts Levin Olver Thornton ought to fulfill our responsibility to Cunningham Johnson, Sam Rogers Lewis (GA) Ortiz Torricelli CBO to allow them to do the workload Danner Jones Rohrabacher Linder Owens Tucker we have just given them, and I am cer- Davis Kanjorski Ros-Lehtinen Livingston Packard Velazquez de la Garza Kasich Lofgren Pallone Vento tainly hopeful we will do that in con- Roth Deal Kelly Roukema Lowey Pastor Visclosky ference. But I would not want Members DeLay Kennedy (RI) Royce Maloney Payne (NJ) Vucanovich to vote for this amendment, because if Deutsch Kim Salmon Manton Pomeroy Walsh they do, they will end up doing in the Diaz-Balart King Sanford Markey Rahall Ward Dickey Kingston Saxton Martinez Rangel Waters Folklife Center at a time when it may Doggett Kleczka Scarborough Mascara Reynolds Watt (NC) be impossible to resurrect it and bring Doolittle Klug Schaefer Matsui Rivers Waxman it back as an authorized entity. Dornan Knollenberg Schiff McCrery Roemer Williams McDermott Rose Doyle Kolbe Seastrand Wilson The American Folklife Center has McKinney Roybal-Allard Wise Dreier LaHood Sensenbrenner Meehan Rush Wolf been an integral part of the Library of Duncan Largent Shadegg Meek Sabo Woolsey Congress since 1977, but really 1928 as Dunn Latham Shaw Menendez Sanders Wynn Ehrlich LaTourette Shays the archives of folk culture. Its budget English Leach Mfume Sawyer Yates includes not just programs, but collec- Shuster Ensign Lewis (CA) Sisisky NOT VOTING—15 tions; 1.5 million sound recordings, Everett Lewis (KY) Skeen Fawell Lightfoot Ackerman Laughlin Richardson photographs, manuscripts, films, vid- Skelton Fields (TX) Lincoln Browder Lazio Schumer Smith (MI) eos, periodicals, and other unique ma- Flanagan Lipinski Chapman Moakley Serrano Smith (NJ) Foley LoBiondo Ford Parker Stokes terials representing American and to Smith (TX) Fowler Longley Johnson (CT) Pelosi Torres some smaller degree world folk music, Smith (WA) Fox Lucas Solomon folk lore and folk life traditions. Franks (CT) Luther b 1314 Souder This is something we ought not to be Franks (NJ) Manzullo Spence Frelinghuysen Martini The Clerk announced the following doing in for $1.5 million. This is an en- Stearns Frisa McCarthy pair: tity that ought to be preserved. They Stenholm Frost McCollum On this vote: will be raising more and more private Stockman Funderburk McDade Mr. Lazio of New York for, with Mr. Moak- fund sector funds, as the library in gen- Gallegly McHale Stump Talent ley against. eral is, but if we do them in, they will Ganske McHugh Gekas McInnis Tanner Messrs. BISHOP, EWING, POMEROY, not be in a position to do that. I urge Tate Geren McIntosh and EDWARDS changed their vote Members defeat this amendment. Gilchrest McKeon Tauzin Taylor (MS) from ‘‘aye’’ to ‘‘no.’’ PARLIAMENTARY INQUIRY Gillmor McNulty Gilman Metcalf Thomas Messrs. SAM JOHNSON of Texas, Mr. PACKARD. Mr. Chairman, I have Gonzalez Meyers Thornberry PORTER, and LIGHTFOOT changed a parliamentary inquiry. Goodlatte Mica Thurman Tiahrt their vote from ‘‘no’’ to ‘‘aye.’’ The CHAIRMAN. The gentleman will Goodling Miller (CA) Goss Minge Torkildsen So the amendment was agreed to. state it. Green Molinari Towns The result of the vote was announced Mr. PACKARD. Mr. Chairman, I un- Greenwood Montgomery Traficant as above recorded. Upton derstand that we will be delaying votes Gunderson Moorhead The CHAIRMAN. It is now in order to Gutierrez Murtha Volkmer until the end. Does the rule call for Gutknecht Myers Waldholtz consider amendment No. 8 printed in this vote to be a 15-minute vote? Hall (TX) Nethercutt Walker House Report 104–146. Hamilton Neumann Wamp The CHAIRMAN. This vote will be a AMENDMENT OFFERED BY MR. ORTON 15-minute vote. Amendments 8 through Hancock Ney Watts (OK) Hansen Norwood Weldon (FL) Mr. ORTON. Mr. Chairman, I offer an 11 will then be debated and the votes Harman Nussle Weldon (PA) amendment. held until the end. Hastert Orton Weller The CHAIRMAN. The Clerk will des- The question is on the amendment Hastings (WA) Oxley White Hayes Paxon Whitfield ignate the amendment. offered by the gentleman from Penn- Hayworth Payne (VA) Wicker The text of the amendment is as fol- sylvania [Mr. CLINGER]. Hefley Peterson (FL) Wyden lows: The question was taken; and the Heineman Peterson (MN) Young (AK) Herger Petri Young (FL) Amendment offered by Mr. ORTON: Page 25, Chairman announced that the noes ap- Hilleary Pickett Zeliff strike lines 14 through 20. Page 32, line 16, peared to have it. Hobson Pombo Zimmer strike ‘‘$16,312,000’’ and insert ‘‘$23,312,000’’. RECORDED VOTE The CHAIRMAN. Pursuant to the Mr. CLINGER. Mr. Chairman, I de- NOES—159 rule, the gentleman from Utah [Mr. mand a recorded vote. Abercrombie Clement Ewing ORTON] and a Member opposed will Baesler Clyburn Farr A recorded vote was ordered. Baker (LA) Coburn Fattah each be recognized for 5 minutes. Who The vote was taken by electronic de- Baldacci Coleman Fazio seeks time in opposition? vice, and there were—ayes 260, noes 159, Barrett (NE) Collins (IL) Fields (LA) Mr. PACKARD. Mr. Chairman, I seek Barrett (WI) Collins (MI) Filner the time in opposition. not voting 15, as follows: Becerra Conyers Flake [Roll No. 411] Beilenson Coyne Foglietta The CHAIRMAN. The gentleman Bentsen Cramer Forbes from California [Mr. PACKARD] will be AYES—260 Berman DeFazio Frank (MA) recognized for 5 minutes. Allard Bereuter Bunn Bevill DeLauro Furse The Chair will repeat, the request for Andrews Bilbray Bunning Bishop Dellums Gejdenson Archer Bilirakis Burr Bonilla Dicks Gephardt recorded votes on the next four amend- Armey Bliley Burton Bonior Dingell Gibbons ments will be postponed until comple- Bachus Blute Buyer Boucher Dixon Gordon tion of amendment No. 11, pursuant to Baker (CA) Boehlert Calvert Brown (FL) Dooley Graham Ballenger Boehner Camp Brown (OH) Durbin Hall (OH) House Resolution 169. Barcia Bono Canady Bryant (TX) Edwards Hastings (FL) The Chair recognizes the gentleman Barr Borski Chabot Callahan Ehlers Hefner from Utah [Mr. ORTON]. Bartlett Brewster Chambliss Cardin Emerson Hilliard (Mr. ORTON asked and was given Barton Brown (CA) Chenoweth Castle Engel Hinchey Bass Brownback Christensen Clay Eshoo Hoyer permission to revise and extend his re- Bateman Bryant (TN) Chrysler Clayton Evans Jackson-Lee marks.) H 6218 CONGRESSIONAL RECORD — HOUSE June 22, 1995 Mr. ORTON. Mr. Chairman, I yield gram is a partnership between 1,400 des- Government information, we must allow for a myself 2 minutes and 45 seconds. ignated depository libraries and the Federal more sufficient period of transition to an elec- Before beginning, Mr. Chairman, GovernmentÐthe sole purpose of which is to tronically-based program. since the House continues to waive its disseminate Government information to the My amendment restores $7 million to this own rules prohibiting committees from public, free of charge. vital program, asking our depository libraries meeting in voting session at the same To give you an idea of the widespread use to take a more reasonable cut of 22 percent time we are in voting session on the of the services provided by this program, the from the GPO's request. floor, I am currently missing recorded Public Printer testified earlier this year that I would now like to discuss the source of votes in the Committee on Banking more than 167,000 persons utilize Federal De- this critical funding. and Financial Services on a bill of pository library collections nationwide each The fiscal year 1995 appropriation for the which I am a cosponsor, to be here to week. Botanic Garden was $3.23 million. This legis- present this amendment on the floor. The GPO's 1996 request for the Depository lation provides an appropriation of $10.053 Mr. Chairman, my amendment is def- Library Program was $2 million less than the million for fiscal year 1996; that represents a icit neutral. It is also simple. It shifts funding level for the previous year. The Public 200-percent increase at a time when other $7 million of increased spending on the Printer testified that this request was sufficient agencies and operations are being asked to Botanic Garden to restore $7 million of to maintain program responsibilities, while also take their share of cuts. cuts in the Federal depository library managing the transition to the appropriate use The $7 million increase over last year has program. Since 1985 the Federal deposi- of electronic media. been provided for a renovation of the Botanic tory library program has been a part- But, now these facilities are being asked to Garden's conservatory. This is one of three, nership between the Federal Govern- accommodate a 50 percent increase in elec- annual $7 million expenditures to carry out this ment and 1,400 libraries around the Na- tronically formatted copies, while taking a 50 renovation. It would be nice to find the funding tion to provide the public with local percent cut in their funding source. While for this renovation, but we must set priorities access to Government information and overall, the fiscal year 1996 legislative branch for our limited resources. documents. appropriations bill only represents an 8 per- During hearings before the legislative There is widespread use of these li- cent cut from last year's funding level. branch appropriations subcommittee, the braries, Mr. Chairman. One hundred The purpose of the committee's 50 percent question was raised as to whether this renova- sixty-seven thousand Americans per reduction in funding is to hasten the transition tion expenditure should be reconsidered in week utilize these collections. The leg- to electronic publishing, by requiring that exec- light of suggestions to privatize the Botanic islation before us would cut 50 percent utive branch agencies reimburse the GPO for Garden. Questions were also raised as to the of funding from these libraries. Over- the costs of producing and distributing paper primary function of the Botanic Garden. all, this bill cuts only 8 percent of leg- and microfiche documents to depository librar- The Architect of the Capitol agreed that the islative branch appropriations, and ac- ies. The reduction in funding is a disincentive Botanic Garden's function is limited, and that tually increases spending on the Bo- for Government agencies to participate in the the only reason for housing the facility in its tanic Garden by over 200 percent. Federal Depository Library Program. current place is for historical reasons. The Botanic Garden in the 1995 ap- This will result in a drastic reduction in the One of the members of the subcommittee propriation was $3 million. In 1996 it is number of printed documents produced by the suggested that the Botanic Garden might be $10 million. The $7 million increase is agencies, and will ultimately hinder free public able to serve its function better if it were pri- the first of a 3-year $21 million appro- access to Government information. Also, these vately funded. It was also suggested that serv- priation for construction on the Bo- deep cuts will result in new costs to depository ices could be obtained from local landscape tanic Garden. The future of the garden libraries, as more time and effort will have to and nursery contractors. is uncertain. It is listed for transfer be expended to locate and acquire Govern- Finally, the Architect was asked the follow- from the Congress to the Department ment agency information products. ing question: ``If the committee asked the Ar- of Agriculture. The House is also con- The president of the American Library Asso- chitect's office to reduce their budget by 10, sidering proposals to privatize or move ciation testified earlier in the year that addi- 15, 20, or 25 percent for the next budget year, the garden. tional equipment and support would have to would this (Botanic Garden) be a low-priority Cutting spending is tough business. be provided to the depository libraries in order item that you would recommend spinning off In doing so, we must set priorities. In to implement the overly aggressive electronic to privatize?'' this Member’s opinion, funding 14,000 program proposed in this legislation. Further- The Architect's response: ``It would.'' libraries is a higher priority than con- more, some of the smaller, rural, public librar- One must ask the question: Should we be structing improvements on a building ies don't have the necessary resources or the spending valuable resources on renovating a with a very uncertain future. Even the technology that the larger, research libraries facility whose ultimate fate has not been deter- Architect of the Capitol, in testifying have. mined? before the committee, stated the con- But, the GPO and the depository libraries We are faced here with a question of prior- struction improvements would be of recognize the increasing need to move to an itiesÐincreased funding for a limited facility in low priority, and the Botanic Garden effective, electronically-based program, and Washington, DC, or a much needed invest- would be subject to consideration for they are making great strides in new tech- ment in the 1,400 depository libraries through- privatization. nology. The GPO Access System was created out the country. Mr. Chairman, I will refer to two let- to provide no-fee, online disseminationÐvia Let us ease the transition of our depository ters which will be included, urging sup- the InternetÐof such publications as the CON- libraries to electronic dissemination of informa- port for my amendment. One is from GRESSIONAL RECORD and the Federal Register. tion, and assist these facilities in carrying out the American Library Association, and Now, the public has free access to this serv- their primary objectiveÐwhich is to provide the other is a letter from both the ice, either through on-site equipment at depos- vital Government information to the public. American Association of Law Libraries itory libraries or through off-site electronic Mr. Chairman, I include for the RECORD the and the Association of Research Li- gateways established in cooperation with the information I referred to. braries. libraries. The information referred to is as follows: Mr. Chairman, I urge support for my As important as this transition to electronic AMERICAN ASSOCIATION amendment. dissemination of information is, one must real- OF LAW LIBRARIES, Mr. Chairman, my amendment is a sensible, ize that not all Government information can be Washington, DC, June 20, 1995. deficit-neutral approach that will restore $7 distributed electronically. Since the informa- Hon. WILLIAM ORTON, million in critical funding to the Federal Depos- tional needs of each community are different, U.S. House of Representatives, itory Library ProgramÐa true hallmark of our it is important to maintain a variety of for- Washington, DC. democratic society. matsÐincluding print and microfiche. DEAR REPRESENTATIVE ORTON: On behalf of Since 1895, this community-based partner- The distribution of electronic copies has the American Association of Law Libraries and the Association of Research Libraries, ship between the public and private sectors been steadily increasing, with about 454,000 we would like to express our gratitude to has provided unfettered public access to Gov- copies projected for fiscal year 1996Ða 50- you for offering an amendment to H.R. 1854 ernment informationÐaccess that is vital to ef- percent increase over fiscal year 1995. to restore $7 million to the Government fective citizen participation in the democratic If we are to expect our Federal depository li- Printing Office’s Salaries and Expenses process. The Federal Depository Library Pro- braries to provide free, convenient access to (S&E) appropriations. As you know, this June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6219 fund supports the Depository Library Pro- uitable and ready access to federal informa- We have worked out a program where gram which provides government informa- tion. we have cut them back in their request tion in all formats to over 1,400 Congression- The likely result of the change in funding for construction money from $28 mil- ally designated depository libraries. and the shift to an electronic Depository Li- We are very concerned that the proposed brary Program is a loss of information to the lion to $21 million. If we take this $7 fifty percent reduction in funding for S&E, American public as the government under- million away, then we may lose the shifting the cost burden to agencies as an goes a transition from a print-based to an private funds that are being raised and unfunded mandate, will drastically reduce electronic environment. In 1994, GPO ac- contributed for the purpose of the Na- the number of documents disseminated to quired, cataloged, and distributed approxi- tional Garden, but we also undercut the American public through depository li- mately 21 million copies of 65,000 documents the entire process of renovation. We braries. Further, we believe that the need for to depository libraries for about $1 a copy. Of think that would be a very sad mis- these titles, only 306 were in electronic for- a well-studied transition period Must be rec- take. ognized as the government converts to an ef- mat. fective electronically-based environment. In addition, the GPO Access System now Mr. Chairman, it is only right that Thank you again for offering this amend- provides 24-hour no-fee public access through the agencies that request the printing ment to restore funding for the Depository depository libraries and gateways to the to be done pay for their own requests. Library Program. We are very appreciative Congressional Record, Federal Register, text That is all our bill does. This would of your efforts and grateful for your support. of all published versions of bills introduced in Congress, the History of Bills, the U.S. frustrate that process. Mr. Chairman, I Sincerely, rise to oppose the amendment. ROBERT L. OAKLEY, Code, and Public Laws of the 104th Congress. Washington Affairs Representative. GPO plans a gateway in every state. But Mr. Chairman, I reserve the balance PRUDENCE S. ADLER, that development is in jeopardy because of my time. Association of Research Libraries, Congress required GPO Access to be funded by cost savings from the GPO’s distribution Mr. ORTON. Mr. Chairman, I yield Assistant Executive Director. 1 of publications. With the reduction you are 1 ⁄2 minutes to the gentleman from New York [Mr. Owens]. AMERICAN LIBRARY ASSOCIATION, being asked to vote on today, GPO will no Washington, DC, June 20, 1995. longer be able to support and expand the re- (Mr. OWENS asked and was given Hon. WILLIAM ORTON, sources of GPO Access. permission to revise and extend his re- U.S. House of Representatives, Cannon House The American Library Association is also very concerned about the Appropriations marks.) Office Building, Washington, DC. Mr. OWENS. Mr. Chairman, I rise in DEAR MR. ORTON: On behalf of the Amer- Committee’s decision to publish only on CD– ican Library Association, I write to tell you ROM the Serial Set and the bound Congres- support of the Orton amendment. of our support for your amendment to re- sional Record. Everyone does not have access Mr. Chairman, we cannot promote store $7,000,000 to the Superintendent of Doc- yet to a computer for their information the general welfare unless the citizens needs. The elimination of the print format of uments Salaries and Expenses Appropriation are informed. Our people cannot fruit- as the House of Representatives considers these very important titles will create infor- mation have-nots. Further, these two publi- fully engage in the pursuit of happiness H.R. 1854, the Legislative Branch Appropria- in this complicated information age tions for FY96. The House Appropriations cations are at the core of Congressional in- Committee cut this appropriation by 50 per- formation and serve as the official record of unless they are informed. For the past cent from the FY95 funding level, a cut far in the daily activities of Congress. The longev- 100 years Congress has paid for Govern- excess of the overall 8 percent reduction in ity and durability of the CD–ROM format re- ment publications to be sent to deposi- the bill for the Legislative Branch. Addition- main untested. In addition, the paper format tory libraries located in each of our ally, H.R. 1854 amends the statute governing has always served as the permanent and offi- cial record. districts across the country. The depos- the Depository Library Program, a proce- Congress should hold hearings and study itory library program ensures that or- dure not appropriate on an appropriations the cost effectiveness and impact of these dinary citizens can have access to Gov- bill. policy changes on public access to govern- The SuDocs Salaries and Expenses appro- ernment information, but H.R. 1854 re- ment information. priation funds the Depository Library Pro- verses 100 years of precedent by having The American Library Association deeply executive branch agencies reimburse gram which provides government publica- appreciates your willingness to offer an tions in print, microfiche and electronic for- amendment to restore funds to the appro- the Government Printing Office for mats to constituents through the nearly priations for the Depository Library Pro- their publications. I assure the Mem- 1,400 Congressionally designated depository gram. ALA is a nonprofit educational organi- bers, no executive branch agency will libraries. This drastic cut does not provide zation of 57,000 librarians, library trustees, have it as a priority. They will not do for the orderly transition that the govern- and friends of libraries. it. ment must follow to assure that its statu- Sincerely, tory requirements are fulfilled to dissemi- H.R. 1854 also mandates a massive ARTHUR CURLEY, nate government information to the public President, American Library Association. shift from print to electronic dissemi- under Title 44, United States Code. nation of information. However, in pro- Mr. PACKARD. Mr. Chairman, I yield While intended to encourage agencies to moting a ‘‘cyber government’’, the bill myself such time as I may consume. publish electronically, this slash in the ap- ignores the fact that we cannot elec- propriation will more likely result in a great Mr. Chairman, let us make it clear to tronically reach most of our constitu- reduction in the number of printed docu- the Members of the House, we are not ments made available to the public. Agencies going to cut in this bill our commit- ents through these libraries. They are have not budgeted in FY96 for depository ment to the depository libraries. What not wired. They do not have the ability copies. Agencies may well shirk their re- we are doing in this bill is requesting to receive electronic information. sponsibilities to disseminate agency infor- that the agencies of Government, in- Mr. Chairman, information must be mation and the number of fugitive docu- cluding the administration agencies in produced not only in electronic for- ments—those that escape the program—may mats, but also in traditional print for- increase enormously. the executive branch, as they provide Additionally, the deep cuts in appropria- documents printing for depository li- mats, in order to accommodate the tions for the Depository Library Program braries, they will have to pay for their wide range of the majority of our peo- will result in an unfunded mandate for the own print on paper rather than having ple’s needs and abilities. Many citizens state and local governments that support de- the GPO pay for it out of their own are not yet ready to use Government positories, and result in additional costs to funds. Therefore, the work will still be information in an electronic format. participating libraries as more time and ef- done. It is just that we are transferring Most libraries do not have the capacity fort will be invested to locate and acquire to receive it that way. publications. Many libraries will not have the costs to those that require the the money to buy the equipment and paper printing to be done. Mr. Chairman, H.R. 1854 also elimi- needed to provide on-demand print service to In reference to the conservatory, this nates the availability of free copies of the public. is a historic building. We all see it. It the CONGRESSIONAL RECORD that we A 1992 survey of depository libraries con- is the glass building right here close to send to our public schools, hospitals, firmed that participating libraries make sig- Capitol Hill. It is falling apart. We sim- and nonprofit libraries, not to mention nificant contributions in personnel, equip- ply have to preserve and protect it, as free copies of bills, reports, and other ment, facilities, and resources (including re- sources beyond those provided by the Gov- well as to repair it, or else it will sim- documents that we supply. These pro- ernment Printing Office) to carry out their ply not be able to be visited by people posed changes do not take us any- part of the partnership with the government who want to visit the exhibits, because where. I urge a ‘‘yes’’ vote on the to ensure that the American people have eq- of safety reasons. amendment. H 6220 CONGRESSIONAL RECORD — HOUSE June 22, 1995 Mr. PACKARD. Mr. Chairman, I yield tronic highway. Not all Government The CHAIRMAN. The gentleman 2 minutes to the gentleman from Cali- information can be distributed elec- from California [Mr. DIXON] will be rec- fornia [Mr. THOMAS], chairman of the tronically. It is critical to provide doc- ognized for 5 minutes. Committee on House Oversight. uments and Federal information by The Chair recognizes the gentleman (Mr. THOMAS asked and was given print, microfiche, and CD ROM. The re- from Wisconsin [Mr. KLUG]. permission to revise and extend his re- sult of a 50 percent budget cut would be Mr. KLUG. Mr. Chairman, I yield my- marks.) significant reduction of services and self 2 minutes. Mr. THOMAS. Mr. Chairman, the bill elimination of some Federal depository Mr. Chairman, I want to congratu- number is H.R. 1854. The concept driv- libraries. late the gentleman from California ing this amendment is truly circa 1854. Mr. Chairman, I would urge my col- [Mr. PACKARD] and the fine work the No one is talking about cutting off de- leagues postpone the $7 million capital Committee on Appropriations has done pository libraries from getting infor- construction to the building of uncer- to this point in trying to execute one mation. In fact, we want to promote it. tain future, and let us continue to fund of the key platforms of the Republican What we do not want to encourage is a the Federal depository libraries. I urge agenda, now that we have taken con- central paper printing process which support for my amendment. trol of the House, and that is a trend toward prviatization. then produces a bulk paper product, Mr. PACKARD. Mr. Chairman, I yield This appropriations bill we have in which is then shipped across country, myself such time as I may consume. and then made available at a deposi- front of us today does it when it comes Mr. Chairman, the committee re- to the beauty shop and barber shop tory library. That is what we are try- moved from the conservatory construc- ing to change. here in the House, the elimination of tion funds $7 million in this year 1995 the folding room, and we all hope the More than 90 percent of the libraries rescission bill. We have already cut transmit, send, and receive electronic eventual sale of a powerplant that the them back $7 million. To cut them U.S. Congress actually owns and oper- data today. What we are trying to do is back an additional $7 million would be tell the executive branch agencies we ates. simply gutting the renovation process. I have to tell the Members that I are not going to fund them. I have no Let me speak very briefly to the idea think this amendment is far too timid quarrel with where the money comes of access to the electronic equipment when it comes to the matter of the from, the Botanic Garden, that is a sec- and information, Mr. Chairman. Vir- Government Printing Office. Mr. Chair- ondary issue. It is up to those people to tually all, over 90 percent of the deposi- man, the Government Printing Office decide what they are going to do. tory libraries, have access to electronic has 4,000 employees in it, which essen- I object strenuously, that they are information through Internet and tially serve at the will of Congress it- taking money from congressional other electronic access equipment. To self to print documents connected to sources and funding an executive say that they cannot access it is sim- our business here. I think we have to branch agency when they do not want ply not true. Furthermore, we ought to ask ourselves why it is in 1995 that we to spend the money themselves. We push them toward access. We ought to run a printing plant. should not be forced to pay the money nudge them toward putting in the There are 115,000 private printers in for the executive branch to pay for per- equipment that would give them access the United States. Assuredly one of petuating an 1854 paper world. What we to electronic information and facilitate them is capable of printing the CON- want to do is get up to speed in sending that process. GRESSIONAL RECORD at much more re- that same data electronically, and by Frankly, Mr. Chairman, if we move duced costs than what we presently CD ROM. If taxpayers want a hard copy this process to the electronic age, we pay the Government Printing Office on at the depository library, the library will save more than the $7 million that a regular basis. Since 1991 the GPO has will produce it there. Taxpayers do not we are trying to save in paperwork lost money every year. For my col- pay for shipping wood, printed on that is now being printed. We will save leagues here in 1994, they may remem- wood, across country. That is what it with the electronic age. ber the bizarre situation where GPO they did in the 19th century. The CHAIRMAN. All time has ex- lost business and suddenly decided it What we are trying to do is stop that. pired. had to raise rates in order to make up This amendment perpetuates it. It is The question is on the amendment for the shortfall. What business in wrong. It may be revenue neutral, but offered by the gentleman from Utah America, if they lose business, would the concept is wrong. Unfortunately, I [Mr. ORTON]. suddenly increase their costs? am going to ask Members to vote The question was taken; and the b 1330 against the amendment of the gen- Chairman announced that the noes ap- tleman from Utah. peared to have it. This amendment we have in front of The CHAIRMAN. The gentleman Mr. ORTON. Mr. Chairman, I demand us, Mr. Chairman, will reduce the Gov- 1 from Utah [Mr. ORTON] has 1 ⁄4 minutes a recorded vote. ernment Printing Office staffing levels. remaining, and the gentleman from The CHAIRMAN. Pursuant to the The Subcommittee on Legislative of California [Mr. PACKARD] has 1 minute rule, further proceedings on the amend- the Committee on Appropriations has remaining and the right to close. ment offered by the gentleman from already reduced it from 4,200 to 3,900. Mr. ORTON. Mr. Chairman, I yield Utah [Mr. ORTON] will be postponed. This amendment will reduce it by an- myself the balance of my time. The CHAIRMAN. It is now in order to other 350 slots. In the long run, what Mr. Chairman, in response to the consider amendment No. 9 printed in we hope we will accomplish is a glide gentleman, I would say we do need to House Report 104–146. path to force the Government Printing gear up the electronic highway, we do Office to essentially become a procure- AMENDMENT OFFERED BY MR. KLUG need to transmit information elec- ment agency in the next several years tronically. Hopefully, this will save us Mr. KLUG. Mr. Chairman, I offer an and to close down the printing function costs. However, the reality is costs and amendment. altogether. In fact, the committee re- transition time to shift to an elec- The CHAIRMAN. The Clerk will des- port itself directs the Public Printer to tronic-based program, while placing an ignate the amendment. study the outsourcing of both security additional burden on the libraries in The text of the amendment is as fol- personnel and custodial care which ac- the immediate future. lows: count for 144 of the 350 positions that Demand for electronic copies is pro- Amendment offered by Mr. KLUG: Page 34, we are discussing today. jected to increase by 50 percent in just line 24, strike out ‘‘3,900’’ and insert in lieu I think this amendment is absolutely 1 year. A 50-percent cut in funding thereof ‘‘3,550’’. crucial if we are going to be serious right now will make it impossible to The CHAIRMAN. Pursuant to the about privatization in this House. meet this demand. rule, the gentleman from Wisconsin Mr. DIXON. Mr. Chairman, I yield 11⁄2 Also, Mr. Chairman, the informa- [Mr. KLUG] and a Member opposed will minutes to the distinguished gen- tional needs of each community are each be recognized for 5 minutes. tleman from Maryland [Mr. HOYER]. different. Not every community in Mr. DIXON. Mr. Chairman, I am op- Mr. HOYER. Mr. Chairman, I rise in America has an off ramp from the elec- posed to the amendment. strong opposition to this amendment. June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6221 Mr. Chairman, the gentleman talks We are talking about 350 positions. somebody is capable on the east coast about a printing plant. I hope the gen- This has been a glidepath but, again, of publishing the CONGRESSIONAL tleman has visited that plant. In point this agency has lost over $10 million. RECORD overnight. of fact, it is in the Internet, it is on the They are under orders from the Joint In terms of the cost of RIF’s, let’s World Net. It, in fact, has the state of Committee to quit losing money, and it make it very clear on the arithmetic the art technology in terms of informa- is not the fault of the employees. It is for everybody who is in this Chamber tion transfer available to it. Individ- that the GPO is the victim of a techno- today. On the average it costs us $55,000 uals anywhere in this country can get logical revolution in regard to print- an employee at the Government Print- the CONGRESSIONAL RECORD and other ing. ing Office. The one-time cost if we have Government documents in their home The gentleman’s amendment is in to end up paying those people a RIF is and can print it, presuming that they good standing. It is the continued way $25,000. That means at a minimum we have the proper facilities, as we get it to go to save money. We will await the save $30,000 a year on each single em- ourselves. studies and see if we can make further ployee. It does not cost us money. It The fact of the matter is, in addition, savings. I urge my colleagues to sup- saves us $6 million. 80 percent of the GPO’s workload is port the amendment of the gentleman In the long run if what we are inter- contracted out right now to the private from Wisconsin. ested in is attempting to save money sector. The fact of the matter is there Mr. DIXON. Mr. Chairman, I yield 11⁄2 and to move toward privatization, then are certain things; namely the CON- minutes to the distinguished gen- it is clear we have got to be very ag- GRESSIONAL RECORD and other docu- tleman from Maryland [Mr. WYNN]. gressive on privatizing services in the ments that we need inhouse for secu- Mr. WYNN. Mr. Chairman, I rise Government Printing Office, and rity reasons or other reasons. today to express my strong opposition RIF’ing, and eliminating another 350 The gentleman talks about a glide to the Klug-Roberts amendment. The positions is exactly the way to do it. path. Approximately 5,000 employees 3 Government Printing Office has served Mr. DIXON. Mr. Chairman, I yield years ago, down to 4,104. This bill our country for 100 years and they still the balance of the time to the gen- brings them down to 3,900. They are on have a vital role. tleman from North Carolina [Mr. a glide path, they are reinventing, they Just to clarify for the American peo- ROSE], a former chairman of the Joint are downsizing. ple, to give them a sense of what this Committee on Printing. This will cost 20 million additional agency does on a daily basis, they The CHAIRMAN. The gentleman dollars. The reason being, because it produce 20,000 copies of the CONGRES- from North Carolina is recognized for 2 will require RIF’s, 554 to be exact if SIONAL RECORD, 32,000 copies of the minutes. they come down that fast, and there Federal Register, 26,000 copies of Com- Mr. ROSE. Mr. Chairman, I thank will be a tremendous cost, not a cost merce Business Daily and process near- the gentleman from California for savings. ly 2,000 orders from the American peo- yielding me the time. This is a bad amendment, it is not ple. All of this is being done despite a Mr. Chairman, to my colleagues on timely, and it will undermine the abil- 50-percent decrease in staff since 1975. the other side of the aisle, I would love ity to get the information that this I would submit that in fact the com- to let the Wall Street Journal print the Congress needs in a timely fashion. CONGRESSIONAL RECORD if we could sell Mr. KLUG. Mr. Chairman, I yield 2 mittee considered this issue very thor- ads, but that is another day. minutes to the gentleman from Kansas oughly. They made reductions to the tune of 200 positions that are being re- The point is clear: In my opinion, as [Mr. ROBERTS], who has been an abso- for 4 years I was chairman of the House lute tireless champion on reform of the duced. This amendment would add to Administration Committee and either Government Printing Office and has that 350, and rest assured, you cannot chairman or vice chairman of the Joint been a mentor on this issue since I first do 550 positions without some addi- got here in 1990. tional cost. You cannot do it all Committee on Printing, the Govern- (Mr. ROBERTS asked and was given through attrition. There will in fact be ment Printing Office is on a glide path permission to revise and extend his re- some cost as a result of RIF’s. as the gentleman from Maryland [Mr. marks.) But the final point I would like to HOYER] so well put. It will cost money. Mr. ROBERTS. Mr. Chairman, I join make is this: They do it efficiently. It will cost money if we have to reduce the gentleman from Wisconsin. They produce the overnight service, under this amendment as quickly as As the ranking Republican Member the 24-hour turnaround that is required this amendment says we should. on the House-Senate Joint Committee to meet our needs. There is no plant, I am in sympathy with the objects on Printing, I have been alarmed with no facility on the east coast, in the that the gentleman who authored this the dramatic losses being incurred by mid-Atlantic area that has shown the amendment had. But let me tell you a the GPO. The gentleman from Mary- capacity to deliver this work product little story. The other night, the White land asked if anybody has been down to in a timely, efficient, and most impor- House wanted something printed in the GPO. I have, many, many times. tantly consistent manner as the Gov- color and they were a little afraid to This year the GPO estimates its ernment Printing Office. work it through the Government Print- losses to be nearly $10 million. The I believe I would have to return to ing Office, so they went to Kinko’s to Joint Committee has requested four the old adage: ‘‘If it ain’t broke, don’t get 30—however many copies they different studies over the last several fix it.’’ needed—Kinko’s in Washington. years to be conducted by the GAO, and Mr. KLUG. Mr. Chairman, I assume I Kinko’s could not handle it as quickly Arthur Andersen, and the Public Print- have the right to close. as they wanted it, so they farmed it er’s GPO 2000 study, to determine the The CHAIRMAN. The gentleman out all over town. cause and options to reduce these from California [Mr. DIXON], a member It wound up costing $30,000. It would losses. This is $10 million. of the committee, has the right to have cost $5,000 if it had been procured, I think it is far more sensitive to em- close. and that is what GPO basically is ployees to really gradually try to re- Mr. KLUG. Mr. Chairman, I yield my- today, is a procurement shop. It would duce the work force, if we can, than at self the balance of my time. have been $5,000 if it had been procured a future date to be forced to totally Let me respond to a couple of points, through GPO, in color. It would have eliminate the entire agency. if I can, Mr. Chairman. First of all the been $3,000 if it had been done in black The gentleman from Maryland has argument that nobody on the east and white. THe quick turnaround time indicated that the argument that we coast is capable of doing this work. necessary for printing the documents are going to have RIF’s here and it is Somewhere in India or Bangkok that we use in this institution is what going to cost money—that is false and today a reporter from the Wall Street keeps this work force alive and in nec- shortsighted. We do not have to go to Journal will file a story, it will be essary for us. RIF’s. The GPO can do it. It is not re- edited in New York, sent up on a sat- My colleagues, I beg you, let’s don’t quired to utilize RIF’s. Even if the GPO ellite dish, and the Wall Street Journal speed up the glide path that the Gov- chooses to do so, the amendment will will end up on my doorstep the next ernment Printing Office is on now. You still save taxpayers over $6 million. morning in Madison, WI. Assuredly are going to pull a nose dive off that is H 6222 CONGRESSIONAL RECORD — HOUSE June 22, 1995 going to have a crash and is going to marked, ‘‘I though you guys got rid of Am I correct that the gentleman’s of- cost us a lot more than if the normal those the first week.’’ fice is on the first floor of the Long- path that has already been set up for Well, if we the Members of this body worth? many years now is followed. have heard that comment once, we Mr. CHRISTENSEN. The gentleman The Government Printing Office is have heard it too many times. My is correct. I am on 1020 Longworth. basically a procurement shop. I do not amendment very simply would elimi- Mr. HOYER. Am I correct that the want the Defense Department being nate funding for the 10 elevator opera- gentleman does not need an elevator, able to go out and choose whatever tors in the House office buildings, not therefore, because he is at street level? printer it wants to print its business. I the Capitol, just the House office build- He just walks right out? want the Government Printing Office ings. Mr. CHRISTENSEN. Reclaiming my to be competitively bidding those jobs Each and every day this body con- time from my friend from Maryland, it out in the private sector as it has been venes in committees and task forces all is correct that I am on 1020 Longworth, for years. I hope that will continue. I over the Capitol to make tough choices but the issue is not whether I am on respectfully ask my colleagues, please about changing the way our Govern- the first floor or the seventh floor or in don’t vote for this amendment. ment does business. We were elected to Rayburn or in Cannon. The CHAIRMAN. The question is on change the way our Government does Mr. HOYER. You want to give it up the amendment offered by the gen- business because it is no longer accept- for the rest of us. tleman from Wisconsin [Mr. KLUG]. able to Americans for us to mortgage Mr. CHRISTENSEN. The issue is that The question was taken; and the the future of our Nation and our chil- it is time for us to push our own auto- Chairman announced that the noes ap- dren. matic elevator buttons. peared to have it. My amendment is not going to bring Mr. HOYER. I understand. Mr. KLUG. Mr. Chairman, I demand a the deficit down a whole lot. It is not b 1345 recorded vote. going to work on the debt, but it is The CHAIRMAN. Pursuant to the going to save the taxpayers $263,000 Mr. CHRISTENSEN. Mr. Chairman, I rule, further proceedings on the amend- this year in salary and benefits. reserve the balance of my time. I understand some very well-inten- ment offered by the gentleman from Mr. PACKARD. Mr. Chairman, I yield tioned Members may suggest that we Wisconsin [Mr. KLUG] will be post- myself 1 minute. should commission a study on this poned. Virtually every Member that does issue. A study. How anyone could sug- It is now in order to consider amend- work in the Longworth Building would gest a study to examine how to elimi- ment No. 10 printed in House Report not want to have the elevators made nate 10 elevator operators and keep a 104–146. more inconvenient. There has never straight face while saying it is beyond AMENDMENT OFFERED BY MR. CHRISTENSEN been a time on the floor of this House me. With a $5 trillion debt, the last when the whole issue of being able to Mr. CHRISTENSEN. Mr. Chairman, I thing we need is another study. offer an amendment. get here to vote on time is more graph- In our economy, when businesses are ic than it was yesterday and today. The CHAIRMAN. The Clerk will des- forced to downsize, it is the perks that ignate the amendment. And to even consider making it more go first: company cars, expense ac- difficult for our Members to meet the The text of the amendment is as fol- counts, and corporate country club lows: time frame of getting here to vote by memberships, all cut back in the name virtue of eliminating elevator opera- Amendment offered by Mr. CHRISTENSEN: of the bottom line. By what justifica- Page 49, after line 25, insert the following tors, that only operate for Members at tion can any of us say that we must least during the time that we have a new section: downsize Government but keep House SEC. 312. None of the funds made available vote call, this would not be the right in this Act may be used for the salaries or elevator operators? time. I will be the first to admit that many expenses of any elevator operator in the We have not asked for a study. We of the people who run the automatic House of Representatives office buildings. have simply asked the chief adminis- elevators are good, decent people. How- The CHAIRMAN. Pursuant to the trative officer of the entire House of ever, we must remember that any time rule, the gentleman from Nebraska Representatives, to review the process a company is forced to downsize, many [Mr. CHRISTENSEN] and a Member op- of elevators and elevator operators and kind and friendly people may lose their posed will each be recognized for 5 min- give us a recommendation as to how it jobs as well. utes. can be improved. That is not going to It might be argued here today that Mr. PACKARD. Mr. Chairman, I be a long study and expensive study. the purpose of the operators is to assist would like to seek the time in opposi- We expect that to come back to us. We Members in arriving at the floor in tion. will readdress this issue at the appro- time for votes. But I submit that my The CHAIRMAN. The gentleman priate time in the future. amendment has no bearing whatsoever from California [Mr. PACKARD] will be Mr. PACKARD. I yield 1 minute to on the elevator operators in the Cap- recognized for 5 minutes. the gentleman from Tennessee [Mr. itol Building. It only affects those in The Chair recognizes the gentleman CLEMENT]. the House office buildings. from Nebraska [Mr. CHRISTENSEN]. I also remind Members that there are Mr. CLEMENT. Mr. Chairman, I am (Mr. CHRISTENSEN asked and was already elevators set aside for Mem- very disappointed in the gentleman given permission to revise and extend bers only to use, the speed of which re- from Nebraska [Mr. CHRISTENSEN]. We his remarks.) mains the same no matter who pushes have already cut the elevator operators Mr. CHRISTENSEN. Mr. Chairman, I the button. from 150 a few years ago down to 22. yield myself 3 minutes. In closing, I will again remind all as- The gentleman is not giving us any Mr. Chairman, the time has come for sembled here that our Federal Govern- credit for that. Members of Congress to start pushing ment is broke. We are nearly $5 trillion And I might say for the elevator op- their own buttons. Yes, that grievous, in debt. At a time when we are asking erators, these are good people. They arduous task of pushing your own ele- Americans to tighten the belt and have families. They are working. And vator button. No, my amendment does make do with less, surely this body can what are we doing in the U.S. Con- not propose to eliminate elevators, nor make do without elevator operators. gress? I thought we were going to put does my amendment require the Mem- My colleagues, the time has come for our emphasis on finding ways to build bers to take the steps from here out. us to begin pushing our own buttons. self-esteem and self-worth. We cannot All my amendment requires is that we Mr. HOYER. Mr. Chairman, will the all be chiefs; we need a lot of Indians. begin pushing our own elevator button. gentleman yield? And we all do different things to get Last week a young woman who had Mr. CHRISTENSEN. I yield to the the job done and accomplish the mis- been visiting my office commented to gentleman from Maryland. sion. my staff that she was shocked to see Mr. HOYER. Mr. Chairman, I appre- Let us give our elevator operators a that we still had elevator operators in ciate my friend yielding, and I know he break. I do not see the gentleman from the House office buildings. She re- is into sacrifice. Texas putting a cap on these people June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6223 making $10 million or more, yet we consume. For any Member to suggest The CHAIRMAN. It is now in order to want to single out the elevator opera- that they are going to miss votes be- consider amendment No. 11 printed in tors who give information, they give cause they cannot push their own but- House Report 104–146. advice, they give directions, and they ton, but they need an elevator operator AMENDMENT OFFERED BY MR. ZIMMER are trying to make a difference. to push the button, is ludicrous. What Mr. ZIMMER. Mr. Chairman, I offer Mr. PACKARD. Mr. Chairman, I yield is this country coming to when you an amendment. 1 minute to the gentleman from Mary- cannot push your own automatic eleva- The CHAIRMAN. The Clerk will des- land [Mr. HOYER]. tor button? ignate the amendment. Mr. HOYER. Mr. Chairman, this is Mr. Chairman, I reserve the balance The text of the amendment is as fol- not a new issue. It is an issue that is of my time. lows: easy to make fun of. The American The CHAIRMAN. The gentleman Amendment No. 11 offered by Mr. ZIMMER: public hears you have got push-button from California [Mr. PACKARD] has 1 Page 49, after line 25, insert the following elevators. What do you need an opera- minute remaining and has the right to new section: tor for? Like all the elevators around close. SEC. 312. Any amount appropriated in this the country, they are run by computers Mr. PACKARD. Mr. Chairman, I re- Act for ‘‘HOUSE OF REPRESENTATIVES— and the computers cannot tell, they serve the balance of my time. Salaries and Expenses—Members’ Represen- Mr. CHRISTENSEN. Mr. Chairman, I tational Allowances’’ shall be available only are not as sophisticated as human for fiscal year 1996. Any amount remaining beings still. yield myself such time as I may after all payments are made under such al- And human beings, as the chairman consume. lowances for such fiscal year shall be depos- has pointed out, can make a difference, Mr. Chairman, I would urge support ited in the Treasury, to be used for deficit re- can make judgments, can make sure of my amendment and I guess it would duction. that people get up and down the 7 just be the fact that it is not about the The CHAIRMAN. Pursuant to the floors of the Longworth Building or the families, because they are good people. rule, the gentleman from New Jersey 6 floors or the 5 floors of the Cannon They are very good people. But when [Mr. ZIMMER] and a Member opposed and Rayburn Buildings so that Mem- you downsize, you have to make some will each be recognized for 5 minutes. bers can get to the floor on time. cutbacks and some people have to find Does any Member seek time in opposi- We have just had a substantial inci- other work. So, I would urge support of tion? dent where a number of Members were my amendment. Mr. PACKARD. Mr. Chairman, I seek late getting to the floor. We had a big Mr. Chairman, I yield back the bal- time in opposition. confrontation about that and the ance of my time. The CHAIRMAN. The gentleman Speaker told us, voting in a timely Mr. PACKARD. Mr. Chairman, I yield from California [Mr. PACKARD] will be fashion is important. We want to limit 30 seconds to the gentleman from Cali- recognized for 5 minutes. it to 17 minutes. This facilitates that fornia [Mr. DIXON]. The Chair recognizes the gentleman at a relatively small cost. Why? Be- Mr. DIXON. Mr. Chairman, the gen- from New Jersey [Mr. ZIMMER]. cause the computers cannot tell as well tleman from Nebraska [Mr. Mr. ZIMMER. Mr. Chairman, I yield as human beings can how to accommo- CHRISTENSEN] is mistaken. This is not myself such time as I may consume. date the 15-minute voting patterns. a tough vote at all. It is not tough to Mr. Chairman, together with the gen- Mr. PACKARD. Mr. Chairman, I yield cut out jobs; to inconvenience the tleman from Michigan [Mr. CAMP] and 1 minute to the gentleman from New Members when we have only 17-min- the gentleman from Indiana [Mr. ROE- York [Mr. ENGEL]. utes to get to a vote. It is a cheap-shot MER], I am proposing an amendment Mr. ENGEL. Mr. Chairman, I have, vote. It is a bad vote. It is not a tough that addresses an issue that has caused with all due respect, seen a lot of bone- vote. great confusion, consternation, and head amendments in the years that I The elevator operators here control rancor in this House. have been here, but this one ranks up the traffic and the flow of the crowd Many of us have gone to great at top. during the times of votes. It is very im- lengths not to spend the money that is The elevator operators on the House portant that they do that. I would urge available for our office expenses be- side work very hard. They are scared to the Members to vote down this amend- cause we believe that frugality begins death about this. They are scared to ment. at home. We believe that we cannot death about losing their jobs. And, Mr. PACKARD. Mr. Chairman, I yield credibly ask for major cuts in pro- frankly, we need them. Those of us who myself such time as I may consume. grams that affect our constituents un- are in the Longworth Building, many In writing this bill we have not ap- less we cut programs that affect us and times we run down the steps because proached it to save jobs, per se. We reduce spending in our own offices. the elevators are so difficult to get in have tried to streamline and improve I have saved more than $500,000 in my that building. Without the elevator op- the operation of Government. And the 4 years in Congress, and many of my erators, we would probably miss half time will come when we will reevaluate colleagues have save more. But there the votes. the operators after we have upgraded has been persistent uncertainty about So, I can think of nothing more that the elevators and made them work bet- what happens to the money that we do is so silly. The savings is next to noth- ter for the Members. But for the time not spend. ing. All it is doing is making a lot of being, this is not the time to make it This amendment ends that uncer- loyal government employees, who work more difficult for the Members and to tainty by explicitly dedicating the hard and are not paid much, frightened eliminate the elevator operators in this money we save to deficit reduction. to death and making it impossible for amendment. I urge a strong no vote on Simply put, this amendment gives Members to vote in a timely fashion. this amendment. Members a real incentive to do the If there was ever a vote that did not The CHAIRMAN. All time has ex- right thing. make sense on the merits, this is it. It pired. Mr. Chairman, I reserve the balance does not make sense from a monetary The question is on the amendment of my time. point of view. It saves us nothing. It offered by the gentleman from Ne- Mr. PACKARD. Mr. Chairman, I yield does not make sense from an efficiency braska [Mr. CHRISTENSEN]. myself such time as I may consume. point of view. The question was taken; and the Mr. Chairman, I would like to speak I very, very strongly urge my col- Chairman announced that the noes ap- not so much in opposition as to explain leagues on both sides of the aisle to de- peared to have it. the circumstances. In my opinion, this feat this amendment. It may play great Mr. CHRISTENSEN. Mr. Chairman, I amendment simply does not do any- with the folks back home, saying we demand a recorded vote. thing that is now not being done have cut out fat. This is not fat. This is The CHAIRMAN. Pursuant to the through the normal process. necessary. I urge defeat of this amend- rule, further proceedings on the amend- There has been the mistaken idea, ment. ment offered by the gentleman from and I had that mistaken idea for many Mr. CHRISTENSEN. Mr. Chairman, I Nebraska [Mr. CHRISTENSEN] will be years when I first came here, and I yield myself such time as I may postponed. think many of my colleagues had the H 6224 CONGRESSIONAL RECORD — HOUSE June 22, 1995 idea, that there was a slush fund out Mr. PACKARD. Mr. Chairman, I yield I agree with much of what the gen- there that all the extra money that we myself 10 seconds. tleman from California said. He is cor- did not spend in our official expense or I, too, at one time introduced a bill rect in that these funds are not office- our other office expense allowances, to do exactly what the gentleman from or district-specific. However, the fact clerk hire and so forth, if there were Indiana has done, but I was wrong. I is if all of the offices collectively do surpluses at end of the year, that simply misunderstood the process, and not use the appropriated amount, these money would be turned back to the I now know what the process is. The funds can be reprogrammed. slush fund that the Speaker or some- money never goes out of the Treasury. In the past, I would submit that that body else in the House would control. Mr. Chairman, I yield 2 minutes to has occurred in this House, and what That is simply not true. The fact is the gentleman from California [Mr. this amendment would do is it would that when I do not spend money out of THOMAS]. change that procedure so those leftover my official accounts, it is never with- (Mr. THOMAS asked and was given funds are not reprogrammed. drawn from the Treasury. It is never permission to revise and extend his re- In the beginning of this session, dur- spent from the Treasury. marks.) ing the debate on the rules package, I Members need to know that what we Mr. THOMAS. Mr. Chairman, I too, came to the floor and requested that do not spend, what is surplus at end of do not rise in opposition or in support we have an independent audit of House the fiscal year out of our official mon- of this particular amendment. I would operations to include an examination eys, and that is for all three accounts, tell the gentleman from Indiana [Mr. of where these funds go, because it has never comes out of the Treasury. That ROEMER] he does not return money to been blurred and made difficult for us includes the mail account, that in- the Treasury. to find this out. cludes the official expense account, and First of all, no money is appropriated So I would urge support of the that also includes the clerk hire ac- for individual offices. There is no ap- amendment. count. What is not spent, there is noth- propriation for the 21st District of Cali- Mr. ZIMMER. Mr. Chairman, I yield 1 ing written out of the Treasury. So fornia, for example. There is no appro- minute to the gentleman from Texas there is nothing to return to the Treas- priation for Members’ offices. There is [Mr. BENTSEN]. ury as this amendment would request. an appropriation to the House in sup- (Mr. BENTSEN asked and was given We cannot return to the Treasury port of our official duties. permission to revise and extend his re- money that has never been withdrawn Members draw down on that account. marks.) from the Treasury. So in my judgment, If they do not use all of the money, it Mr. BENTSEN. Mr. Chairman, I this amendment has absolutely no means they did not draw down all of would first like to thank the sponsor of meaning in terms of changing existing their call on that account. They do not this amendment, the gentleman from policy. It will still remain the same. return money to the Treasury. Having New Jersey [Mr. ZIMMER], and also the With that explanation, I oppose the said that, the gentleman from Indiana author of H.R. 26, the gentleman from amendment because I think it simply [Mr. ROEMER] knows that I have been Indiana [Mr. ROEMER], for allowing me adds a layer of redundancy. working with our lawyers and others to to speak on this important issue. Mr. Chairman, I reserve the balance try to figure out a way to make this Mr. Chairman, I rise in strong sup- of my time. happen. We are talking about even fun- port of the Zimmer amendment. Mr. ZIMMER. Mr. Chairman, I yield 1 damentally changing the way in which As a new Member of Congress, I have minute to the gentleman from Indiana we appropriate so that Members who discovered there are few clear choices [Mr. ROEMER]. do not draw down their account to the when it comes to balancing the Federal Mr. ROEMER. Mr. Chairman, I thank maximum amount available under law, budget. This amendment is a simple, the gentleman for yielding time to me. can go back home and say: That commonsense proposition for Members I am proud to join in cosponsoring amount I did not draw down is des- of the House to claim they support this the amendment with Mr. ZIMMER. I in- ignated to go to deficit reduction. goal. Each year many Representatives troduced this bill as H.R. 26 on the first Mr. Chairman, I think that is a posi- have money left over in their office day of Congress. It has 121 cosponsors, tive. That is an incentive and it is budgets. This money goes back to the Democrats and Republicans. The idea probably a better goal than just going general House fund for use on other has been endorsed by the National Tax- back into the Treasury to be churned projects. payers Union, the Citizens Against for other expenditures. The Zimmer amendment would re- Government Waste, and the Concord quire Representatives to apply all ex- Coalition, because it does address the b 1400 cess funds from their office budgets deficit. So that is why I am not opposing this each year to the Federal debt. In es- We should vote for this for two rea- measure, but you have got to have an sence, Members of Congress would be sons, and I strongly disagree with the understanding, folks. Your concept of making their contribution to the ulti- analysis of the gentleman from Califor- the way this place works in flat-out mate goal of balancing the budget, a nia [Mr. PACKARD]. One is because we wrong. goal which many of us support. should lead on deficit reduction. We What we need to do is to make sure I ask Members who came to Congress should take the first step. If American that what you are talking about, in as a result of the 1994 elections to care- families are tightening their belts, fact, becomes reality, and I pledge my fully consider this amendment. The Congress certainly can do the same support to continue to work on this. American people sent us here to reduce thing. And voluntarily return money. I And the reason I am not opposing the the deficit and change the way Con- voluntarily returned $677,000 over the gentleman from New Jersey is because gress does its business. The Zimmer last 4 years. if, in fact, it is possible, within the con- amendment accomplishes both goals. Second, in response to the gentleman text of this appropriations bill, to Mr. ZIMMER. Mr. Chairman, I yield from California, [Mr. PACKARD], this is make some determinations without the balance of my time to the gen- a truth-in-budgeting amendment. It is having to go to statute, at least, he tleman from Wisconsin [Mr. KLUG]. outrageous that somebody could say says, it is to go to deficit reduction in- Mr. KLUG. Mr. Chairman, this is a we need to appropriate less money in stead of the general treasury. That is a familiar fight for the gentleman from the appropriations process and count modest step forward, if we can make it New Jersey [Mr. ZIMMER], the gen- on the gentleman from Indiana [Mr. happen. tleman from Indiana [Mr. ROEMER], and ROEMER], or the gentleman from Michi- Mr. ZIMMER. Mr. Chairman, I yield 1 other people in my class because we ac- gan [Mr. UPTON], or the gentleman minute to the gentleman from Michi- tually began it back in 1990. from Alabama [Mr. BROWDER], or the gan [Mr. CAMP]. I understand the point of the chair- gentleman from New Jersey [Mr. ZIM- Mr. CAMP. Mr. Chairman, I thank man of the Appropriations Committee, MER] to return money to pay for these the gentleman from New Jersey for the gentleman from California [Mr. other people spending more. yielding me this time. PACKARD], that it is certainly not the I thank the chairman and the spon- I join him in urging support of this intention, his intention, nor the inten- sor of the amendment and join proudly amendment, as well as the gentleman tion of his colleagues to turn around in a bipartisan way to urge passage. from Indiana. and reprogram money. June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6225

It seems to me if there is a question ORTON]; amendment No. 9, offered by The CHAIRMAN. Any Member may or if there is essentially some sense of the gentleman from Wisconsin [Mr. make a point of order that a quorum is indecision about whether or not this is KLUG]; amendment No. 10, offered by not present. binding, then we should clearly err on the gentleman from Nebraska [Mr. Mr. ORTON. Mr. Chairman, I demand the side of deficit reduction. Let us re- CHRISTENSEN]; and amendment No. 11, a recorded vote on my amendment. move any sense of temptation that offered by the gentleman from New Pending that, I make a point of order a presently exists for the Committee on Jersey [Mr. ZIMMER]. quorum is not present. Appropriations to reprogram any of The Chair will reduce to 5 minutes The CHAIRMAN. The Chair will this money. Let us settle it once and the time for any electronic vote after count for a quorum. for all. the first such vote in this series. Mr. ORTON. Mr. Chairman, I will Like my colleague, the gentleman AMENDMENT OFFERED BY MR. ORTON withdraw the point of order and de- from Indiana [Mr. ROEMER], I have The CHAIRMAN. The pending busi- mand a recorded vote. worked very hard in my office to hold ness is the demand of the gentleman The CHAIRMAN. The Chair will down expenses and have had the linger- from Utah [Mr. ORTON] a recorded vote count for a recorded vote. ing suspicion over the least 4 years on which further proceedings were A recorded vote was ordered. much of the money I saved somehow postponed and on which the noes pre- The CHAIRMAN. This will be a 15- gets spent someplace else. vailed by voice vote. minute vote. Let us say to the Members of Con- The Clerk will redesignate the The vote was taken by electronic de- gress, if you are careful enough to hold amendment. vice, and there were—ayes 104, noes 321, down travel and careful enough to hold The Clerk redesignated the amend- not voting 9, as follows: down salaries of your staff and careful ment. enough to watch the kind of monies The CHAIRMAN. A recorded vote has [Roll No. 412] spent throughout your House oper- been demanded. AYES—104 ations, then at the very least all the RECORDED VOTE Abercrombie Hilliard Peterson (MN) incentives should be in place to save Andrews Holden Pickett The CHAIRMAN. Those in support of Bachus Houghton Pomeroy money rather than spend it. the demand for a recorded vote will Baesler Hoyer Rahall I strongly support the Zimmer rise and be counted. The Chair will Baldacci Jacobs Reed amendment. count all Members standing in support Barrett (WI) Johnson (SD) Richardson Becerra Johnson, E. B. Mr. PACKARD. Mr. Chairman, I yield of the request for a recorded vote. Rose Bishop Kanjorski Sabo 15 seconds to the gentleman from Cali- This is the amendment offered by the Borski Kasich Sawyer fornia [Mr. DIXON]. gentleman from Utah [Mr. ORTON]. Brewster Kennedy (RI) Schroeder Browder Kildee Mr. DIXON. Mr. Chairman, and Mem- PARLIAMENTARY INQUIRY Shays bers, I, too, join in the opposition to Brown (FL) Kleczka Sisisky Mr. HOYER. Mr. Chairman, I have a Cardin Klink Skelton this amendment. I really think, after Clyburn LaFalce parliamentary inquiry. Slaughter Condit Lewis (GA) listening to the dialogue here, that the The CHAIRMAN. The gentleman will Stenholm Coyne Lincoln problem could be corrected by allowing Tanner state his parliamentary inquiry. Cramer Lofgren Tauzin Members to put out a press release say- Mr. HOYER. Mr. Chairman, can the Danner Luther Taylor (MS) ing that they returned money to the Deal Maloney Chair advise us as to how the vote Thornton Treasury. DeFazio Markey turned out on the voice vote? DeLauro Mascara Thurman Mr. PACKARD. Mr. Chairman, I yield The CHAIRMAN. The Chair said in Doyle McHale Towns myself the balance of my time. the reading of the announcement that Duncan McKinney Vento Mr. Chairman, in my concluding re- the noes prevailed by a voice vote. Engel McNulty Visclosky marks, I want to simply remind Mem- Eshoo Meehan Volkmer Mr. HOYER. I thank the Chair. Farr Mfume Waldholtz bers that we went to special efforts to The CHAIRMAN. A recorded vote has Fattah Minge Watt (NC) give Members credit for not spending not yet been ordered. Fields (LA) Montgomery Watts (OK) all of their funds. The report provides The pending business before the com- Foglietta Nadler Waxman that there will be a letter that would Frank (MA) Oberstar Weller mittee is a request for a recorded vote. Furse Orton Williams indicate that they have not spent all of PARLIAMENTARY INQUIRY Geren Owens Wyden their funds; they can use it for what- Mr. HOYER. Mr. Chairman, I have a Gordon Pastor Wynn ever purpose that they wish. Hayes Payne (VA) Yates parliamentary inquiry. Hefner Pelosi Zimmer Any amount left in the appropria- The CHAIRMAN. The gentleman will tions account, in this account, remains state his parliamentary inquiry. NOES—321 in the treasury. It is never spent out of Mr. HOYER. Mr. Chairman, I under- Allard Bunn Cubin the treasury and thus it is available for stand this is not necessarily a par- Archer Bunning Cunningham Armey Burr Davis deficit reduction. liamentary inquiry. Was it the amend- Baker (CA) Burton de la Garza The absolute intent of this amend- ment offered by the gentleman from Baker (LA) Buyer DeLay ment is being realized in the existing Utah [Mr. ORTON]? Ballenger Callahan Dellums process. The CHAIRMAN. Yes, by the gen- Barcia Calvert Deutsch Barr Camp Diaz-Balart The CHAIRMAN. The question is on tleman from Utah [Mr. ORTON]. Barrett (NE) Canady Dickey the amendment offered by the gen- EXPRESSING CONCERN ON VOTING PROCEDURE Bartlett Castle Dicks tleman from New Jersey [Mr. ZIMMER]. Mr. HOYER. Mr. Chairman, I ask Barton Chabot Dingell The question was taken; and the Bass Chambliss Dixon unanimous consent to speak out of Bateman Chapman Doggett Chairman announced that the noes ap- order for 1 minute. Beilenson Chenoweth Dooley peared to have it. The CHAIRMAN. Is there objection Bentsen Christensen Doolittle Mr. ZIMMER. Mr. Chairman, I de- to the request of the gentleman from Bereuter Chrysler Dornan mand a recorded vote. Berman Clay Dreier Maryland? Bevill Clement Dunn The CHAIRMAN. Pursuant to the There was no objection. Bilbray Clinger Durbin rule, further proceedings on the amend- Mr. HOYER. The concern I have, I Bilirakis Coble Edwards ment offered by the gentleman from would say to the acting ranking mem- Bliley Coburn Ehlers Blute Coleman Ehrlich IMMER New Jersey [Mr. Z ] will be post- ber and the chairman, is that if one of Boehlert Collins (GA) Emerson poned. our colleagues requested a vote and ex- Boehner Collins (IL) English ANNOUNCEMENT BY THE CHAIRMAN pected that vote to occur and is now off Bonilla Collins (MI) Ensign Bonior Combest Evans The CHAIRMAN. Pursuant to the the floor, I think it would be somewhat Bono Conyers Everett rule, proceedings will now resume on unfair of us not to—here is the gen- Boucher Cooley Ewing those amendments on which further tleman from Utah [Mr. ORTON]. Brown (CA) Costello Fawell proceedings were postponed in the fol- Mr. Chairman, I yield back the bal- Brown (OH) Cox Fazio Brownback Crane Fields (TX) lowing order: Amendment No. 8, offered ance of my time. I know my colleagues Bryant (TN) Crapo Filner by the gentleman from Utah [Mr. were glad to hear from me. Bryant (TX) Cremeans Flake H 6226 CONGRESSIONAL RECORD — HOUSE June 22, 1995 Flanagan Largent Reynolds The result of the vote was announced Livingston Payne (VA) Smith (MI) Foley Latham Riggs as above recorded. LoBiondo Peterson (FL) Smith (NJ) Forbes LaTourette Rivers Lofgren Peterson (MN) Smith (TX) Ford Lazio Roberts f Longley Petri Smith (WA) Fowler Leach Roemer Lucas Pickett Solomon Fox Levin Rogers PERSONAL EXPLANATION Luther Pombo Souder Franks (CT) Lewis (CA) Rohrabacher Maloney Pomeroy Spence Franks (NJ) Lewis (KY) Ros-Lehtinen Mr. RICHARDSON. Mr. Speaker, I Manzullo Porter Stearns Frelinghuysen Lightfoot Roth was unavoidably detained on rollcall Markey Portman Stenholm Frisa Linder Roukema vote 412. Had I been present, I would Martini Poshard Stockman Frost Lipinski Roybal-Allard Mascara Pryce Stump Funderburk Livingston Royce have voted ‘‘nay.’’ McCarthy Quinn Stupak Gallegly LoBiondo Rush McCollum Radanovich b 1430 Talent Ganske Longley Salmon McCrery Ramstad Tanner Gejdenson Lowey Sanders McHugh Reed Tauzin Gekas Lucas Sanford AMENDMENT OFFERED BY MR. KLUG McInnis Regula Taylor (MS) Gephardt Manton Saxton McIntosh Richardson The CHAIRMAN. The pending busi- Taylor (NC) Gibbons Manzullo Schaefer McKeon Riggs ness is the demand of the gentleman Thomas Gilchrest Martinez Schiff McNulty Rivers Thornberry Gillmor Martini Scott from Wisconsin [Mr. KLUG] for a re- Meehan Roberts Tiahrt Gilman Matsui Seastrand corded vote on which further proceed- Menendez Roemer Gonzalez McCarthy Sensenbrenner Metcalf Rogers Torkildsen ings were postponed and on which the Upton Goodlatte McCollum Shadegg noes prevailed by voice vote. Meyers Rohrabacher Goodling McCrery Shaw Mica Ros-Lehtinen Volkmer Goss McDade Shuster The Clerk will redesignate the Miller (CA) Roukema Vucanovich Graham McDermott Skaggs amendment. Miller (FL) Royce Waldholtz Green McHugh Skeen The Clerk redesignated the amend- Minge Salmon Walker Greenwood McInnis Smith (MI) Molinari Sanford Walsh Gunderson McIntosh Smith (NJ) ment. Montgomery Saxton Wamp Gutierrez McKeon Smith (TX) RECORDED VOTE Moorhead Scarborough Ward Gutknecht Meek Smith (WA) The CHAIRMAN. A recorded vote has Myrick Schaefer Watts (OK) Hall (OH) Menendez Solomon Neal Schiff Weldon (FL) Hall (TX) Metcalf Souder been demanded. Nethercutt Schroeder Weldon (PA) Hamilton Meyers Spence A recorded vote was ordered. Neumann Seastrand Weller Hancock Mica Spratt The CHAIRMAN. This will be a 5- Ney Sensenbrenner White Hansen Miller (CA) Stark Norwood Shadegg Whitfield Harman Miller (FL) Stearns minute vote. Nussle Shaw Wicker Hastert Mineta Stockman The vote was taken by electronic de- Orton Shays Williams Hastings (FL) Mink Stokes vice, and there were—ayes 293, noes 129, Oxley Shuster Wyden Hastings (WA) Molinari Studds not voting 12, as follows: Packard Sisisky Young (FL) Hayworth Mollohan Stump Pastor Skeen Zeliff Hefley Moorhead Stupak [Roll No. 413] Paxon Skelton Zimmer Heineman Moran Talent AYES—293 Herger Morella Tate NOES—129 Hilleary Murtha Taylor (NC) Allard Cox Gordon Abercrombie Hall (OH) Owens Hinchey Myers Tejeda Andrews Cramer Goss Baesler Hastings (FL) Pallone Hobson Myrick Thomas Archer Crane Graham Bateman Hefner Payne (NJ) Hoekstra Neal Thompson Armey Crapo Greenwood Becerra Hilliard Pelosi Hoke Nethercutt Thornberry Bachus Cremeans Gunderson Beilenson Hinchey Quillen Horn Neumann Tiahrt Baker (CA) Cubin Gutknecht Berman Holden Rahall Hostettler Ney Torkildsen Baker (LA) Cunningham Hall (TX) Bishop Hoyer Rangel Hunter Norwood Torricelli Baldacci Danner Hamilton Bonior Jackson-Lee Reynolds Hutchinson Nussle Traficant Ballenger de la Garza Hancock Borski Jefferson Rose Hyde Obey Tucker Barcia Deal Hansen Boucher Johnson (SD) Roth Inglis Olver Upton Barr DeFazio Harman Brown (FL) Johnson, E. B. Roybal-Allard Istook Ortiz Velazquez Barrett (NE) DeLay Hastert Brown (OH) Johnston Rush Jackson-Lee Oxley Vucanovich Barrett (WI) Deutsch Hastings (WA) Bryant (TX) Kanjorski Sabo Jefferson Packard Walker Bartlett Diaz-Balart Hayes Cardin Kennedy (MA) Sanders Johnson (CT) Pallone Walsh Barton Dickey Hayworth Clay Kennedy (RI) Sawyer Johnson, Sam Paxon Wamp Bass Doggett Hefley Clyburn Kennelly Scott Johnston Payne (NJ) Ward Bentsen Dooley Heineman Coleman Kildee Skaggs Jones Peterson (FL) Waters Bereuter Doolittle Herger Collins (IL) Kleczka Slaughter Kaptur Petri Weldon (FL) Bevill Doyle Hilleary Collins (MI) Klink Spratt Kelly Pombo Weldon (PA) Bilbray Dreier Hobson Conyers LaFalce Stark Kennedy (MA) Porter White Bilirakis Duncan Hoekstra Coyne Lantos Stokes Kennelly Portman Whitfield Bliley Dunn Hoke Davis Lewis (GA) Studds Kim Poshard Wicker Blute Durbin Horn DeLauro Lowey Tejeda King Pryce Wilson Boehlert Edwards Hostettler Dellums Manton Thompson Kingston Quillen Wise Boehner Ehlers Houghton Dicks Martinez Thornton Klug Quinn Wolf Bonilla Ehrlich Hunter Dingell Matsui Thurman Knollenberg Radanovich Woolsey Bono Emerson Hutchinson Dixon McDermott Torricelli Kolbe Ramstad Young (AK) Brewster English Hyde Engel McHale Towns LaHood Rangel Young (FL) Browder Ensign Inglis Evans McKinney Traficant Lantos Regula Zeliff Brown (CA) Eshoo Istook Farr Meek Tucker Brownback Everett Jacobs Fattah Mfume Velazquez NOT VOTING—9 Bryant (TN) Ewing Johnson (CT) Fazio Mineta Vento Bunn Fawell Johnson, Sam Ackerman Moakley Schumer Fields (LA) Mink Visclosky Bunning Fields (TX) Jones Clayton Parker Serrano Filner Mollohan Waters Burr Flanagan Kaptur Laughlin Scarborough Torres Flake Moran Watt (NC) Burton Foley Kasich Foglietta Morella Waxman b 1430 Buyer Forbes Kelly Frost Murtha Wilson Callahan Ford Kim Gejdenson Myers Wise Mr. WISE and Mr. MARTINEZ Calvert Fowler King Gephardt Nadler Wolf changed their vote from ‘‘aye’’ to ‘‘no.’’ Camp Fox Kingston Gibbons Oberstar Woolsey Canady Frank (MA) Klug Ms. ESHOO, Messrs. PAYNE of Vir- Gonzalez Obey Wynn Castle Franks (CT) Knollenberg Green Olver Yates ginia, BAESLER, FARR, NADLER, Chabot Franks (NJ) Kolbe Gutierrez Ortiz Young (AK) LEWIS of Georgia, MFUME, FOGLI- Chambliss Frelinghuysen LaHood Chapman Frisa Largent NOT VOTING—12 ETTA, CRAMER, TAYLOR of Mis- Chenoweth Funderburk Latham Ackerman Laughlin Schumer sissippi, OBERSTAR, KLECZKA, MAS- Christensen Furse LaTourette Clayton McDade Serrano CARA, SHAYS, and TOWNS, Ms. Chrysler Gallegly Lazio Condit Moakley Tate Clement Ganske Leach Dornan Parker Torres LOFGREN, and Messrs. BORSKI, TAU- Clinger Gekas Levin ZIN, BACHUS, GORDON, MARKEY, Coble Geren Lewis (CA) The Clerk announced the following SKELTON, RICHARDSON, and LU- Coburn Gilchrest Lewis (KY) pair: THER changed their vote from ‘‘no’’ to Collins (GA) Gillmor Lightfoot On this vote: Combest Gilman Lincoln ‘‘aye.’’ Cooley Goodlatte Linder Mr. Cunningham for, with Mr. Moakley So the amendment was rejected. Costello Goodling Lipinski against. June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6227 Messrs. BERMAN, TEJEDA, and Hoke McHugh Scarborough Meyers Radanovich Tauzin Holden McInnis Schaefer Mfume Rahall Taylor (MS) GUTIERREZ changed their vote from Horn McIntosh Seastrand Miller (CA) Rangel Tejeda ‘‘aye’’ to ‘‘no.’’ Hostettler McKeon Sensenbrenner Mineta Regula Thomas Messrs. DEUTSCH, EHLERS, and Hunter Meehan Shadegg Mink Reynolds Thompson EVERETT changed their vote from Hutchinson Metcalf Shaw Molinari Richardson Thornton Inglis Mica Shays Mollohan Riggs Thurman ‘‘no’’ to ‘‘aye.’’ Istook Miller (FL) Smith (MI) Montgomery Roberts Torricelli So the amendment was agreed to. Johnson (CT) Minge Smith (TX) Moran Rogers Towns The result of the vote was announced Johnson (SD) Moorhead Smith (WA) Morella Rose Traficant Jones Myrick Solomon Murtha Roth Tucker as above recorded. Kasich Nethercutt Souder Myers Roukema Velazquez ANNOUNCEMENT BY THE CHAIRMAN Kelly Neumann Stearns Nadler Roybal-Allard Vento Kennedy (RI) Norwood Stockman Neal Rush Visclosky The CHAIRMAN. Pursuant to the Kim Nussle Stump Ney Sabo Volkmer rule, the Chair announces again that Kingston Paxon Talent Oberstar Sanders Vucanovich he will reduce to a minimum of 5 min- Klug Petri Tanner Obey Sawyer Walker utes the period of time within which a LaHood Pomeroy Tate Olver Schiff Walsh Largent Portman Taylor (NC) Ortiz Schroeder Waters vote by electronic device will be taken Latham Pryce Thornberry Orton Schumer Watt (NC) on each amendment on which the chair Lazio Quinn Tiahrt Owens Scott Watts (OK) has postponed further proceedings. Leach Ramstad Torkildsen Oxley Shuster Waxman Lewis (KY) Reed Upton Packard Sisisky Weldon (FL) AMENDMENT OFFERED BY MR. CHRISTENSEN Lincoln Rivers Waldholtz Pallone Skaggs Weldon (PA) The CHAIRMAN. The pending busi- LoBiondo Roemer Wamp Pastor Skeen Wicker ness is the demand of gentleman from Longley Rohrabacher Ward Payne (NJ) Skelton Williams Luther Ros-Lehtinen Weller Payne (VA) Slaughter Wilson Nebraska [Mr. CHRISTENSEN] for a re- Manzullo Royce White Pelosi Smith (NJ) Wise corded vote on which further proceed- Martini Salmon Whitfield Peterson (FL) Spence Wolf ings were postponed and on which the McCrery Sanford Zeliff Peterson (MN) Spratt Woolsey McHale Saxton Zimmer Pickett Stark Wyden noes prevailed by voice vote. Pombo Stenholm Wynn The Clerk will redesignate the NOES—246 Porter Stokes Yates amendment. Abercrombie Dellums Hobson Poshard Studds Young (AK) The Clerk redesignated the amend- Andrews Dicks Houghton Quillen Stupak Young (FL) Baesler Dingell Hoyer ment. Barcia Dixon Hyde NOT VOTING—11 RECORDED VOTE Barr Doolittle Jackson-Lee Ackerman Dornan Parker The CHAIRMAN. A recorded vote has Barrett (NE) Doyle Jacobs Clayton Greenwood Serrano Bateman Durbin Jefferson Clement Laughlin Torres been demanded. Becerra Edwards Johnson, E. B. Cunningham Moakley A recorded vote was ordered. Beilenson Ehlers Johnson, Sam b The CHAIRMAN. This will be a 5- Bereuter Ehrlich Johnston 1447 Berman Emerson Kanjorski minute vote. Bevill Engel Kaptur Mr. HUNTER changed his vote from The vote was taken by electronic de- Bilirakis Eshoo Kennedy (MA) ‘‘no’’ to ‘‘aye.’’ vice, and there were—ayes 177, noes 246, Bishop Evans Kennelly Mr. BROWDER changed his vote Boehlert Everett Kildee not voting 11, as follows: Boehner Ewing King from ‘‘aye’’ to ‘‘no.’’ [Roll No. 414] Bonilla Farr Kleczka So the amendment was rejected. Bonior Fattah Klink AYES—177 The result of the vote was announced Bono Fazio Knollenberg as above recorded. Allard Chenoweth Forbes Borski Fields (LA) Kolbe Archer Christensen Fowler Boucher Filner LaFalce PERSONAL EXPLANATION Armey Chrysler Franks (CT) Brewster Flake Lantos Mr. CLEMENT. Mr. Chairman, on roll call Bachus Coble Franks (NJ) Browder Foglietta LaTourette Baker (CA) Coburn Frelinghuysen Brown (CA) Foley Levin vote No. 414, I was unavoidably detained with Baker (LA) Collins (GA) Frisa Brown (FL) Ford Lewis (CA) business before the U.S. Senate regarding Dr. Baldacci Combest Funderburk Bryant (TX) Fox Lewis (GA) Henry Foster's nomination. Had I been Ballenger Cox Gallegly Burton Frank (MA) Lightfoot present, I would have voted ``nay'' on the Barrett (WI) Cramer Ganske Callahan Frost Linder Bartlett Crane Goodlatte Calvert Furse Lipinski amendment offered by Representative JON Barton Crapo Gordon Chambliss Gejdenson Livingston CHRISTENSEN. Bass Cremeans Goss Chapman Gekas Lofgren AMENDMENT OFFERED BY MR. ZIMMER Bentsen Cubin Graham Clay Gephardt Lowey Bilbray Danner Green Clinger Geren Lucas The CHAIRMAN. The pending busi- Bliley Deal Gutknecht Clyburn Gibbons Maloney ness is the demand of the gentleman Blute Deutsch Hall (TX) Coleman Gilchrest Manton from New Jersey [Mr. ZIMMER] for a re- Brown (OH) Diaz-Balart Hamilton Collins (IL) Gillmor Markey Brownback Dickey Hancock Collins (MI) Gilman Martinez corded vote on which further proceed- Bryant (TN) Doggett Hansen Condit Gonzalez Mascara ings were postponed and on which the Bunn Dooley Harman Conyers Goodling Matsui noes prevailed by voice vote. Bunning Dreier Hastert Cooley Gunderson McCarthy Burr Duncan Hastings (WA) Costello Gutierrez McCollum The Clerk will redesignate the Buyer Dunn Hayworth Coyne Hall (OH) McDade amendment. Camp English Hefley Davis Hastings (FL) McDermott The Clerk redesignated the amend- Canady Ensign Heineman de la Garza Hayes McKinney ment. Cardin Fawell Herger DeFazio Hefner McNulty Castle Fields (TX) Hilleary DeLauro Hilliard Meek The CHAIRMAN. A recorded vote has Chabot Flanagan Hoekstra DeLay Hinchey Menendez been demanded. H 6228 CONGRESSIONAL RECORD — HOUSE June 22, 1995 A recorded vote was ordered. Obey Rush Tejeda Capitol Historical Society calendars, and vol- Olver Salmon Thomas umes of the U.S. Code for members of Con- The vote was taken by electronic de- Ortiz Sanders Thompson vice, and there were—ayes 403, noes 21, Orton Sanford Thornberry gress. This bill provides for privatizing the flag not voting 10, as follows: Owens Sawyer Thurman office, the House folding room, and other sup- Oxley Saxton Tiahrt port offices, reducing the General Accounting [Roll No. 415] Pallone Scarborough Torkildsen Office budget by 15 percent, combining the al- AYES—403 Pastor Schaefer Torricelli Paxon Schiff Traficant lowances for Members' clerk hire, mailing and Allard Dicks Jackson-Lee Payne (NJ) Schroeder Tucker office expenses into one account and cutting Andrews Doggett Jacobs Payne (VA) Schumer Archer Dooley Jefferson Pelosi Scott Upton House committee funding by $39 million. Armey Doolittle Johnson (SD) Peterson (FL) Seastrand Velazquez At a time when the House is asking others Bachus Dornan Johnson, E. B. Peterson (MN) Sensenbrenner Vento to make significant sacrifices, we must be re- Baesler Doyle Johnson, Sam Petri Shadegg Visclosky sponsible enough to tighten our own belt. I will Baker (CA) Dreier Johnston Pickett Shaw Volkmer Baker (LA) Duncan Jones Pombo Shays Vucanovich vote for the legislative branch appropriations Baldacci Dunn Kanjorski Pomeroy Shuster Waldholtz bill because the House should lead by exam- Ballenger Durbin Kaptur Porter Sisisky Walker Barcia Edwards Kasich ple rather than give itself special treatment. Portman Skaggs Walsh Mr. CLINGER. Mr. Chairman, I rise today in Barr Ehlers Kelly Poshard Skeen Wamp Barrett (NE) Ehrlich Kennedy (MA) Pryce Skelton Ward support of H.R. 1854, legislative branch appro- Barrett (WI) Emerson Kennedy (RI) Quillen Slaughter Watt (NC) priations for fiscal year 1996. I also rise to ap- Bartlett Engel Kennelly Quinn Smith (MI) Watts (OK) Barton English Kildee plaud the efforts of the subcommittee chair- Radanovich Smith (NJ) Waxman Bass Ensign Kim man, Congressman RON PACKARD, for per- Rahall Smith (TX) Weldon (FL) Bateman Eshoo King Ramstad Smith (WA) Weldon (PA) forming a superior job in crafting this difficult Becerra Evans Kingston Rangel Solomon bill, making truly difficult decisions, and help- Beilenson Everett Kleczka Weller Reed Souder White ing ensure that the legislative branch contrib- Bentsen Farr Klink Regula Spence Whitfield Bereuter Fattah Klug Reynolds Spratt utes its share to the Nation's total debt reduc- Wicker Berman Fawell Knollenberg Richardson Stark tion. Williams Bevill Fields (LA) Kolbe Riggs Stearns I am particularly pleased with the commit- Bilbray Fields (TX) LaFalce Wilson Rivers Stenholm tee's successful efforts to find meaningful and Bilirakis Filner LaHood Roberts Stockman Wise Bishop Flake Lantos Roemer Studds Wolf constructive reductions in the General Ac- Bliley Flanagan Largent Rogers Stump Woolsey counting Office account. Blute Foglietta Latham Rohrabacher Stupak Wyden H.R. 1854 appropriates $393 million for the Boehlert Foley LaTourette Ros-Lehtinen Talent Wynn Boehner Forbes Lazio Rose Tanner Yates General Accounting Office. That is $56 million, Bonilla Ford Leach Roth Tate Young (AK) or 12 percent, less than the fiscal year 1995 Bonior Fowler Levin Roukema Tauzin Young (FL) appropriation, and $80 million less than the Bono Fox Lewis (CA) Roybal-Allard Taylor (MS) Zeliff amount requested by GAO. The bill's appro- Borski Frank (MA) Lewis (KY) Royce Taylor (NC) Zimmer Boucher Franks (CT) Lightfoot priation level will support 3,947 positions, a Brewster Franks (NJ) Lincoln NOES—21 15-percent cut from current staffing levels. Browder Frelinghuysen Linder Abercrombie Fazio Nadler Brown (CA) Frisa Lipinski This cut is the first of a 2-year reduction in Clay Gibbons Packard GAO's budget, which will reach a total of Brown (FL) Frost LoBiondo Collins (MI) Hastings (FL) Sabo Brown (OH) Funderburk Lofgren Conyers Hoyer Stokes about 25 percent over 2 years. If this budget Brownback Furse Longley Dellums Lewis (GA) Thornton is adopted, GAO will have downsized by a Bryant (TN) Gallegly Lowey Dingell Meek Towns total of 35 percent between 1992 and 1997. Bryant (TX) Ganske Lucas Dixon Moran Waters Bunn Gejdenson Luther No agency can sustain this level of a reduc- Bunning Gekas Maloney NOT VOTING—10 tion without seriously reevaluating the work Burr Gephardt Manton Ackerman Laughlin Serrano that it performs. I am confident that Comptrol- Burton Geren Manzullo Clayton Livingston Torres Buyer Gilchrest Markey ler General Chuck Bowsher, Appropriations Ewing Moakley Callahan Gillmor Martinez Johnson (CT) Parker Subcommittee Chairman RON PACKARD, and I Calvert Gilman Martini will work hard to ensure that GAO takes re- Camp Gonzalez Mascara b 1455 Canady Goodlatte Matsui sponsible steps to absorb these reductions Cardin Goodling McCarthy Ms. MCKINNEY and Mr. GEJDEN- while still providing useful research and assist- Castle Gordon McCollum SON changed their vote from ‘‘no’’ to ance to the Congress. Chabot Goss McCrery The committee report that accompanies this Chambliss Graham McDade ‘‘aye.’’ Chapman Green McDermott So the amendment was agreed to. bill calls on GAO to fully accomplish its core Chenoweth Greenwood McHale The result of the vote was announced mission while absorbing the reductions in their Christensen Gunderson McHugh as above recorded. budget both this year and next. As the chair- Chrysler Gutierrez McInnis Clement Gutknecht McIntosh Mr. PORTMAN. Mr. Chairman, I rise today man of GAO's authorizing committee, it is my Clinger Hall (OH) McKeon to voice my support for H.R. 1854, the legisla- intention over the coming months to work with Clyburn Hall (TX) McKinney tive branch appropriations bill for fiscal year the GAO staff to ensure that the mission of Coble Hamilton McNulty 1996. GAO is achieved. In my mind, some of the Coburn Hancock Meehan Coleman Hansen Menendez I strongly support the bold cuts to the level most important functions of the GAO is to per- Collins (GA) Harman Metcalf of funding provided in the bill today. form financial management and performance Collins (IL) Hastert Meyers There is nothing more important than ad- audits. The enactment of the Chief Financial Combest Hastings (WA) Mfume Condit Hayes Mica dressing the $4.8 trillion national debt, which Officers Act placed a great burden on the Cooley Hayworth Miller (CA) is keeping badly needed capital out of the shoulders of GAO to help executive branch Costello Hefley Miller (FL) hands of the private sector of our economy, agencies design and publish annual financial Cox Hefner Mineta the engine of growth and job creation. And I reports. Also, the development of a District of Coyne Heineman Minge Cramer Herger Mink believe the goal of deficit reduction will only be Columbia financial control board will also re- Crane Hilleary Molinari met if we lead by example here in Congress. sult in a strain on GAO's resources. They Crapo Hilliard Mollohan Today, we have the opportunity to prove to should continue their hard work in these Cremeans Hinchey Montgomery our constituents that we are serious about ad- Cubin Hobson Moorhead areas. Cunningham Hoekstra Morella dressing the national debt by taking the lead At the same time, GAO should continue to Danner Hoke Murtha and making cuts to our own budget. This bill support the activities of congressional commit- Davis Holden Myers appropriates $1.7 billion for the House of Rep- tees. I am confident that they will continue to de la Garza Horn Myrick Deal Hostettler Neal resentatives and other legislative branch oper- do just that in the same professional manner DeFazio Houghton Nethercutt ationsÐ$155 million less than in fiscal year that we have seen in the past. GAO has per- DeLauro Hunter Neumann 1995. This bill contains responsible cuts, such formed yeomen's service for the Government DeLay Hutchinson Ney as eliminating the Joint Committee on Printing Reform and Oversight Committee during the Deutsch Hyde Norwood Diaz-Balart Inglis Nussle [JCP], the Office of Technology Assessment past several months and I look forward to con- Dickey Istook Oberstar [OTA], one House parking lot, complimentary tinuing that relationship with them. June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6229 Again, I applaud the efforts of Chairman consulting directly with as many States, local, I understand that the Appropriations Com- PACKARD and encourage the adoption of this and tribal officials as possible, as well as rep- mittee expresses concerns about the addi- bill. resentatives from business and citizen groups. tional duties given to CBO by the unfunded Mr. PORTMAN. Mr. Chairman, I rise today CBO estimates that it needs 25 new full- mandates law, but it suggested that DBO shift to offer the Clinger-Portman-Condit-Davis time employees to conduct the cost analyses its resources to cover the new responsibilities. amendment to the legislative branch appro- required by the unfunded mandates bill. The Having talked to CBO and looked at these priations bill. Our amendment is fiscally re- office intends to create a new intergovern- new responsibilities, I believe that a mere sponsible and is vital to the mission of the Un- mental mandate unit in the Budget Analysis shifting of CBO priorities will not free up funded Mandates Reform Act of 1995. In fact, Division that will prepare cost statements and enough money to cover the costs of these our amendment is endorsed by many of the studies of intergovernmental mandates, as analyses. We should not place an unfunded same groups that supported the unfunded well as work with committees and State and mandate on the very agency helping us to end mandates bill earlier this year, including the local governmentsÐ15 people would be as- this practice. U.S. Chamber of Commerce, National Gov- signed to the program divisions for preparing This amendment is a modest and respon- ernors' Association, National Conference of private-sector mandate cost estimates and sible request for funding that CBO needs. The State Legislatures, National Association of studies. $1.1 million is fully paid for by offsetting cuts Counties, and the National League of Cities. In addition to new analytic difficulties, the in the legislative branch appropriations bill. The amendment would add $1.1 million to quantity of estimates required by CBO will The offset is to a part of the Library of Con- CBO's budget, the funding it needs to comply likely be burdensome. Dr. O'Neill estimates gress budget, specifically targeted to eliminate with S. 1, the unfunded mandates bill that was that the private sector analysesÐa provision funding for the American Folklife Center, signed into law in March. As you know, the in the law that is strongly supported by many which was not authorized. We believe this is House approved this Contract With America Members of CongressÐalone could require a reasonable cut. The Appropriations Commit- bill by a strong vote of 394±28, and the Sen- CBO to analyze approximately 10 to 15 per- tee report on this item cites that ``there is ate did as well, 91±9. cent of all reported bills. I expect the number ample precedence for the Library to raise pri- The amendment's appropriation of $1.1 mil- of analyses required for State and local gov- vate funding for the American Folklife Center.'' lion to the CBO is far below the $4.5 million ernmental mandates will be even higher. The I urge my colleagues to join me in support- the House authorized earlier this year in S. 1. bottom line is that S. 1 increased significantly ing this amendment. It will allow for the suc- In fact, it is only 26 percent of the amount CBO's volume of work. cessful implementation of the unfunded man- we've already authorized for CBO by the un- CBO has identified another issue that justi- dates bill. CBO analyses of mandates on funded mandates law. fies this additional appropriation to its budget. State and local governments, as well as the As you may remember, under the unfunded In the case of both intergovernmental and pri- private sector, are the heart of the unfunded mandates bill, CBO has a number of critical vate sector mandates, CBO has determined mandates billÐa law that is designed to en- and new responsibilities starting January 1, that it will take nearly as much analysis to esti- sure Congress has cost information, has a 1996. First, CBO is required to analyze all mate whether or not a bill exceeds the thresh- separate debate on whether and how to fund new reported legislation containing Federal old as it does to provide a full cost analysis mandates and is accountable before it ever mandates and to prepare cost estimates for when the threshold is exceeded. A statement mandates again. Without providing the addi- bills that impose mandates on State and local by Dr. O'Neill reinforces this point: ``. . . all tional appropriation, we will also be sending governments costing more than $50 million in bills that are deemed to have a mandate will the message that we are not serious about any year. CBO has to perform a similar analy- exert considerable pressure on CBO's re- giving our State and local partners the relief sis for bills that impose mandates on the pri- sources, even when the analysis does not re- they need. Let's keep our promise and support vate sector costing more than $100 million. Al- sult in a detailed cost statement.'' this amendment. If you supported the Un- though CBO does analyze intergovernmental If CBO fails to complete these analyses, the funded Mandate Reform Act of 1995 and be- mandates costing more than $200 million now, consequences to the legislative process could lieve in it, you should vote ``yes'' on this the new law has greatly increased its work- be severe. Because the unfunded mandates amendment. load. These are complicated analyses, requir- law establishes a new point of order against Mr. LUTHER. Mr. Chairman, I rise in strong ing CBO to perform a number of complex new the consideration of legislation for which a support of Mr. CASTLE's proposal to cut our of- tasks. CBO cost estimate is not printed in the com- ficial mail allowances by $4.6 million. I ran for CBO has identified a number of new chal- mittee report or in the CONGRESSIONAL Congress with the promise that I would work lenges it will be facing as it calculates the RECORD, points of order could potentially be to reform the franked mail system, and I in- costs of mandates. Specifically, Dr. June raised against scores of bills. This could sig- tend to vote accordingly. O'Neill, Director of the CBO, has identified nificantly complicate and slow down the legis- Consider these facts: First, Members of that: First, legislation often lacks the detailed lative process. Congress sent about 267 million pieces of information needed to project future impacts at In addition, a provision in the bill allows for mail in 1994, that's six times more mail than the time a bill is considered; second, the ef- a waiver of CBO's requirement if an analysis was received; second, during the last election fects of legislation may vary greatly among lo- is not feasible, although a point of order would cycle, House incumbents spent more on calities, making it difficult to quantify nation- remain in effect. Without the CBO analysis, franked mail than House challengers raised; wide costs; third, obtaining accurate informa- the unfunded mandates law would be mean- and third, spending on franked mail doubles in tion from State, local, and tribal officials will be ingless. I view the new cost information as the election years. difficult and time consuming; fourth, obtaining linchpin to the improved accountability the leg- I do believe that it is important for Members information from private-sector parties will be islation is intended to establish. Without the to keep in touch with their constituents. Mem- difficult and time consuming since the informa- CBO analysis, Members would be voting on bers of Congress must make the attempt to tion may not be readily available and is often legislation in the dark, without any clear knowl- listen and seek the input of constituents on im- considered to be confidential. edge of the burdens they are imposing on portant pending issues. I also believe that it is To make accurate cost estimates, CBO State and local governments or the private important for Members to let their constituents needs these additional resources to address sector. Those 394 Members of the House know about town meetings, listening sessions, these problems. Specifically, these resources agreed that we should end the practice of and other opportunities to contact their Mem- will need to be focused on covering the costs mandating blindly. Providing CBO the tools it bers of Congress. However, I do not believe of: First, consulting extensively with the rel- needs will help to eliminate this problem, by that Members should be using the franked evant Federal agency to define the range of giving Members the information we all must mail as a campaign advantage. A limited frank alternatives that are likely to be considered in have to legislate responsibly. Also, because S. budget will result in responsible communica- issuing regulations; second, collecting informa- 1 obligates committees to identify sources of tions from Members to their constituents. tion early in the legislative process from a funding to cover the costs of intergovern- The Castle proposal freezes the franking al- broad sample of State, localities, and tribes, mental mandates, committees will need the lowance at 1994 levels by cutting $4.6 million as well as from the private sector and individ- CBO information to do their jobs. Last year from Members' representational allowances. uals; third, consulting with experts to identify alone, it is estimated that we sent billions of That represents a reduction of 13 percent in techniques that will improve CBO's ability to dollars worth of mandates to State and local addition to the roughly 30-percent cut of ear- provide accurate estimates of nationwide costs governments. Spending $1.1 million up front to lier this year. based on a limited sample of States, localities, curb the practice makes sense. To do other- The Castle proposal enjoys bipartisan sup- tribes, businesses, and individuals; fourth, wise would be penny-wise and pound-foolish. port. H 6230 CONGRESSIONAL RECORD — HOUSE June 22, 1995 Those Members who are firmly committed we would finally end the practice of Mr. WARD. Mr. Speaker, do Members to reforming Congress and reducing the budg- gifts from lobbyists, lobbying firms, know what is so frustrating? What is so et deficit will vote ``yes'' on this proposal. and others involved in legislation, to frustrating is to hear these cries of The CHAIRMAN. Under this rule, the Members of Congress. ‘‘vote,’’ when they are not saying vote Committee rises. We have amended the rules of this on a gift ban, are they? They are not Accordingly, the Committee rose; House extensively, and we have done it going to allow us a vote on a gift ban. and the Speaker pro tempore (Mr. on three different occasions. Each time We have asked again and again and CAMP) having assumed the chair, Mr. we have been denied the opportunity to again. LINDER, Chairman of the Committee of offer an amendment to end the practice If we are going to reform this Con- the Whole House on the State of the of gifts by lobbyists to Members of gress, let us have an up-or-down vote Union, reported that that Committee, Congress. on a gift ban. That is all we are asking having had under consideration the bill This is an effort to do that through for today. (H.R. 1854) making appropriations for the legislative appropriations bill by Mr. MILLER of California. Mr. the legislative branch for the fiscal denying those appropriations to those Speaker, finally, I would just say we year ending September 30, 1996, and for offices where Members have continued have considered many amendments to other purposes, pursuant to House Res- to accept gifts which they knowingly this legislation. Many of those amend- olution 169, he reported the bill back to have been provided, directly or indi- ments have been about how we conduct the House with sundry amendments rectly, by a paid lobbyist or a lobbying our offices and how we pay for those of- adopted by the Committee of the firm. fices and how we approach and hold Whole. Mr. Speaker, I would hope Members ourselves out to the public. The SPEAKER pro tempore. Under of this House, on a bipartisan basis, However, what we did not consider in the rule, the previous question is or- would vote to support the recommittal this legislation was the question of gift dered. motion, so once and for all we can put giving by lobbyists to Members of this Is a separate vote demanded on any an end to a practice that is unaccept- legislative body. It is a practice that amendment? If not, the Chair will put able to the public, it is unacceptable in must be ended. The leadership on that them en gros. the conduct of the public’s business, side had said they are going to end it. The amendments were agreed to. and it should be unacceptable in this The question is when, because every The SPEAKER pro tempore. The House. That is ending the giving of time we have an opportunity to do it question is on the engrossment and gifts by lobbyists and lobbying firms to within the rules of the House, somehow third reading of the bill. Members of this House while they have we cannot find the will to do it. The bill was ordered to be engrossed legislation under consideration. Mr. Speaker, this is a practice that and read a third time, and was read the Mr. DOGGETT. Mr. Speaker, will the must end. It must end now. If Members third time. gentleman yield? support the motion to recommit, it can be done away with today. I would urge MOTION TO RECOMMIT OFFERED BY MR. MILLER Mr. MILLER of California. I yield to OF CALIFORNIA WITH INSTRUCTIONS the gentleman from Texas. all the Members to support the motion Mr. MILLER of California. Mr. Mr. DOGGETT. Mr. Speaker, I thank to recommit. Speaker, I offer a motion to recommit the gentleman for yielding to me. POINT OF ORDER with instructions. Mr. Speaker, it was very thoughtful The SPEAKER pro tempore (Mr. The SPEAKER pro tempore. Is the of the Committee on Rules to put some CAMP). Does the gentleman from Cali- gentleman opposed to the bill in its of the really critical issues of the Na- fornia [Mr. PACKARD] have a point of present form? tion before us in the amendments that order? Mr. MILLER of California. I am, Mr. they permitted us to consider. We got Mr. PACKARD. Mr. Speaker, I wish Speaker. to consider flowers, we got to consider to make a point of order against the Mr. PACKARD. Mr. Speaker, I re- whether there would be elevator opera- motion to recommit with instructions serve a point of order on the gentle- tors, we got to consider a number of because it includes a limitation and is man’s motion. other matters of similar import, and not in order under clause 2 of rule XXI. The SPEAKER pro tempore. A point yet, on the critical issue of whether the Under the precedents of the House, it is of order is reserved. ties that bind legislators to gifts would not ‘‘competent’’ for the House to The Clerk will report the motion. be approved, we were denied the oppor- amend the bill in the manner proposed The Clerk read as follows: tunity to even present it for a vote on because it is not in order for the House the floor of this Congress. Mr. Speaker, to instruct the Committee to do what Mr. MILLER of California moves to recom- that goes to the core of the problem in mit the bill H.R. 1854 to the Committee on the House itself could not do. Appropriations with instructions to report this Congress of business as usual. Mr. Speaker, I quote from precedents the same to the House forthwith with the Mr. Speaker, there is a need for us to of the House of Representatives: ‘‘It is following amendment: be able to present the American people not in order to do indirectly by a mo- Page 49, after line 25, insert the following with a clear choice of whether we are tion to commit with instructions what new section: going to end gifts, freebies, free trips, may not be done directly by way of SEC. 312. None of the funds made available or we are not going to end them. This amendment.’’ in this Act may be provided for any Member, motion is one way to do that. It is an Also, Mr. Speaker, a point of order officer, or employee of the House of Rep- up-or-down vote. If Members believe in was sustained on a motion, a very like resentatives when it is made known to the Federal entity or official to which the funds continuing the gifts, if they believe in motion, to recommit with instructions are made available that such Member, offi- continuing the freebies, then vote on August 1, 1989, under a different cer, or employee has accepted a gift, know- against the motion of the gentleman Speaker. Mr. Speaker, the gentleman’s ing that such gift is provided directly or in- from California [Mr. MILLER]. motion to instruct includes a limita- directly by a paid lobbyist, a lobbyist firm, However, if Members think we ought tion not specifically contained or au- or an agent of a foreign principal. to do something to clean up this House, thorized in existing law, and not con- The SPEAKER pro tempore. The gen- this is the opportunity to do it. Some sidered in the Committee of the Whole tleman from California [Mr. MILLER] is of us have taken a voluntary gift ban pursuant to clause 2(d) of rule XXI, and recognized for 5 minutes in support of agreement and have signed off, and we therefore I ask for a ruling by the his motion to recommit. return these gifts and these freebies, Chair on the point of order. and deny these tickets and special ben- The SPEAKER pro tempore. Does the b 1500 efits. However, this is a way to write it gentleman from California [Mr. MIL- Mr. MILLER of California. Mr. into law. That is the whole purpose of LER] wish to address the point of order? Speaker, the purpose of this motion to this amendment. Mr. MILLER of California. Mr. recommit is to send this bill back to Mr. WARD. Mr. Speaker, will the Speaker, the language offered in this committee with instructions for the gentleman yield? motion to recommit is in fact valid purposes of reporting the bill back to Mr. MILLER of California. I yield to under the House rules. It is constructed the floor with a gift ban, to make sure the gentleman from Kentucky. to meet all requirements for a valid June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6231 limitation under clause 2 of rule XXI. this final passage vote to be the last Mineta Reynolds Taylor (MS) Minge Richardson Tejeda It does not impose ‘‘substantial addi- vote of the day. Is that correct? Mink Rivers Thompson tional duties.’’ The SPEAKER pro tempore. The Montgomery Roemer Thornton While it is true such an amendment Chair would advised the gentleman Moran Rose Thurman could have been blocked under section that the vote is on recommital. Nadler Roybal-Allard Torricelli (d) of clause 2 by the motion to rise had Neal Rush Towns Mr. PACKARD. After final passage, I Oberstar Sabo Traficant such a motion been offered in the Com- am talking about, Mr. Speaker. Obey Sanders Tucker mittee of the Whole, in fact no such The SPEAKER pro tempore. The Olver Sawyer Velazquez motion was offered. The Committee Chair is about to announce a 15 vote on Ortiz Schroeder Vento Orton Schumer Visclosky rose under the direct terms of the rule, recommital and then a 5—— Owens Scott Volkmer House Resolution 169, rather than as a Mr. PACKARD. After final passage, Pallone Sisisky Ward result of the motion of the majority is that to be the last vote of the day, Pastor Skaggs Waters leader or the manager. Payne (NJ) Skelton Watt (NC) Mr. Speaker? Payne (VA) Slaughter Waxman The House rules clearly permit a The SPEAKER pro tempore. The Pelosi Spratt Williams valid limitation to be offered when the Chair would tell the gentlemen yes, Peterson (FL) Stark Wilson manager or the majority chooses not Peterson (MN) Stenholm Wise that is the Chair’s understanding. Pickett Stokes Woolsey to offer the motion to rise or if they Mr. OBEY. A parliamentary inquiry, Poshard Studds Wyden fail to do so in a timely fashion. For Mr. Speaker. Rangel Stupak Wynn this reason, a motion to recommit with The SPEAKER pro tempore. The gen- Reed Tanner Yates instruction to include a simple valid tleman will state it. NOES—240 limitation is in fact in order, and Mr. OBEY. Mr. Speaker, would it be therefore the motion to recommit re- Allard Flanagan McCollum in order to point out that if this mo- Archer Foley McCrery quiring a gift ban be reported back to tion is adopted, the committee would Armey Forbes McDade the House is in order. attempt to incorporate the gift ban Bachus Fowler McHugh The SPEAKER pro tempore (Mr. when it comes back from committee? Baesler Fox McInnis CAMP). The Chair is prepared to rule on Baker (CA) Franks (CT) McIntosh The SPEAKER pro tempore. That is Baker (LA) Franks (NJ) McKeon the point of order. Consistent with the not a parliamentary inquiry. Ballenger Frelinghuysen Metcalf precedents of August 1 and 3, 1989, The question is on the motion to re- Barr Frisa Meyers Barrett (NE) Funderburk Mica which are recorded in section 835 of the commit. House Rules and Manual, the point of Bartlett Gallegly Miller (FL) The question was taken; and the Barton Ganske Molinari order is sustained and the motion is Speaker pro tempore announced that Bass Gekas Mollohan held out of order. Bateman Gilchrest Moorhead the noes appeared to have it. Bereuter Gillmor Morella MOTION TO RECOMMIT OFFERED BY MR. MILLER RECORDED VOTE Bilbray Gilman Murtha OF CALIFORNIA Mr. VOLKMER. Mr. Speaker, I de- Bilirakis Goodlatte Myers Mr. MILLER of California. Mr. Bliley Goodling Myrick Speaker, I move to recommit the bill, mand a recorded vote. Blute Goss Nethercutt H.R. 1854, to the Committee on Appro- A recorded vote was ordered. Boehlert Graham Neumann The SPEAKER pro tempore. Pursu- Boehner Greenwood Ney priations. Bonilla Gunderson Norwood The SPEAKER pro tempore. The ant to clause 5(b)(3) of rule XV, the Bono Gutknecht Nussle Clerk will report the motion. Chair may reduce to not less than 5 Boucher Hall (TX) Oxley The Clerk read as follows: minutes the time for any recorded vote Brewster Hancock Packard that may be ordered on passage of the Brownback Hansen Paxon Mr. MILLER of California moves to recom- Bryant (TN) Hastert Petri mit the bill, H.R. 1854, to the Committee on bill. Bunn Hastings (WA) Pombo Appropriations. The vote was taken by electronic de- Bunning Hayes Porter Mr. MILLER of California. Mr. vice, and there were—ayes 186, noes 240, Burr Hayworth Portman Speaker, if I can, I would like to be Burton Hefley Pryce not voting 8, as follows: Buyer Heineman Quillen heard on the motion. [Roll No 416] Callahan Herger Quinn The SPEAKER pro tempore. The mo- Calvert Hilleary Radanovich AYES—186 tion is not debatable. Without objec- Camp Hobson Rahall Abercrombie Dingell Jackson-Lee Canady Hoekstra Ramstad tion, the previous question is ordered Andrews Dixon Jacobs Castle Hoke Regula on the motion to recommit. Baldacci Doggett Jefferson Chabot Horn Riggs There was no objection. Barcia Dooley Johnson (SD) Chambliss Hostettler Roberts The SPEAKER pro tempore. The Barrett (WI) Doyle Johnson, E. B. Chenoweth Houghton Rogers question is on the motion to recommit Becerra Durbin Johnston Christensen Hunter Rohrabacher Beilenson Edwards Kanjorski Chrysler Hutchinson Ros-Lehtinen with instructions. Bentsen Engel Kaptur Clinger Hyde Roth PARLIAMENTARY INQUIRIES Berman Eshoo Kennedy (MA) Coble Inglis Roukema Mr. GEJDENSON. I have a par- Bevill Evans Kennedy (RI) Coburn Istook Royce Bishop Farr Kennelly Collins (GA) Johnson (CT) Salmon liamentary inquiry, Mr. Speaker. Bonior Fattah Kildee Combest Johnson, Sam Sanford Mr. MILLER of California. A par- Borski Fazio Kleczka Cooley Jones Saxton liamentary inquiry, Mr. Speaker. Browder Fields (LA) LaFalce Cox Kasich Scarborough The SPEAKER pro tempore. The gen- Brown (CA) Filner Lantos Crane Kelly Schaefer Brown (FL) Flake Levin Crapo Kim Schiff tleman from California [Mr. MILLER] Brown (OH) Foglietta Lewis (GA) Cremeans King Seastrand will state his parliamentary inquiry. Bryant (TX) Ford Lincoln Cubin Kingston Sensenbrenner Mr. MILLER of California. Mr. Cardin Frank (MA) Lipinski Cunningham Klink Shadegg Speaker, why was that motion not de- Chapman Frost Lofgren Davis Klug Shaw Clay Furse Lowey Deal Knollenberg Shays batable, but the previous motion was Clement Gejdenson Luther DeLay Kolbe Shuster debatable? Clyburn Gephardt Maloney Diaz-Balart LaHood Skeen The SPEAKER pro tempore. The dif- Coleman Geren Manton Dickey Largent Smith (MI) ference is between a motion that in- Collins (IL) Gibbons Markey Doolittle Latham Smith (NJ) Collins (MI) Gonzalez Martinez Dornan LaTourette Smith (TX) cludes instructions, which is debatable, Condit Gordon Mascara Dreier Lazio Smith (WA) and one that does not. Conyers Green Matsui Duncan Leach Solomon Mr. MILLER of California. I thank Costello Gutierrez McCarthy Dunn Lewis (CA) Souder Coyne Hall (OH) McDermott Ehlers Lewis (KY) Spence the Chair. Cramer Hamilton McHale Ehrlich Lightfoot Stearns Mr. PACKARD. A parliamentary in- Danner Harman McKinney Emerson Linder Stockman quiry, Mr. Speaker. de la Garza Hastings (FL) McNulty English Livingston Stump The SPEAKER pro tempore. The gen- DeFazio Hefner Meehan Ensign LoBiondo Talent tleman from California will state it. DeLauro Hilliard Meek Everett Longley Tate Dellums Hinchey Menendez Ewing Lucas Tauzin Mr. PACKARD. Mr. Speaker, I have Deutsch Holden Mfume Fawell Manzullo Taylor (NC) been told and informed that we expect Dicks Hoyer Miller (CA) Fields (TX) Martini Thomas H 6232 CONGRESSIONAL RECORD — HOUSE June 22, 1995 Thornberry Walsh Whitfield Bilbray Goodlatte Montgomery Wamp Whitfield Yates Tiahrt Wamp Wicker Bilirakis Goodling Moorhead Ward Wicker Young (AK) Torkildsen Watts (OK) Wolf Bliley Goss Morella Watts (OK) Williams Young (FL) Upton Weldon (FL) Young (AK) Blute Graham Myers Weldon (FL) Wilson Zeliff Vucanovich Weldon (PA) Young (FL) Boehlert Greenwood Myrick Weldon (PA) Wise Zimmer Waldholtz Weller Zeliff Boehner Gunderson Nethercutt Weller Wolf Walker White Zimmer Bonilla Gutierrez Neumann White Woolsey Bono Gutknecht Ney NOT VOTING—8 Borski Hall (OH) Norwood NAYS—87 Ackerman Moakley Serrano Boucher Hall (TX) Nussle Abercrombie Furse Olver Clayton Parker Brewster Hamilton Oberstar Torres Andrews Gejdenson Owens Laughlin Pomeroy Brown (FL) Hancock Obey Becerra Gibbons Pastor Brown (OH) Hansen Ortiz b Bevill Gordon Payne (NJ) 1528 Brownback Hastert Orton Bishop Green Peterson (FL) Bryant (TN) Hastings (WA) Oxley Mr. SAXTON changed his vote from Bonior Harman Pickett Bunn Hayes Packard Browder Hastings (FL) Rangel ‘‘aye’’ to ‘‘no.’’ Bunning Hayworth Pallone Brown (CA) Hefner Reynolds So the motion to recommit was re- Burr Hefley Paxon Bryant (TX) Hilliard Roybal-Allard jected. Burton Heineman Payne (VA) Chapman Hinchey Rush Buyer Herger Pelosi The result of the vote was announced Clay Jackson-Lee Sanders Callahan Hilleary Peterson (MN) Clyburn Jacobs Sanford as above recorded. Calvert Hobson Petri Coleman Jefferson Schroeder Camp Hoekstra Pombo LEGISLATIVE PROGRAM Collins (IL) Johnston Scott Canady Hoke Pomeroy Collins (MI) Kanjorski Slaughter (By unanimous consent, Mr. DELAY Cardin Holden Porter Conyers Klink Stark was allowed to proceed out of order.) Castle Horn Portman Coyne LaFalce Stokes Mr. DELAY. Mr. Speaker, I only take Chabot Hostettler Poshard Cramer Lewis (GA) Thompson Chambliss Hoyer Pryce this 1 minute to clarify a statement DeFazio Martinez Torricelli Chenoweth Hunter Quillen Dellums McDermott Towns that was made earlier. Christensen Hutchinson Quinn Dingell McKinney Tucker Mr. Speaker, we do expect, in fact it Chrysler Hyde Radanovich Durbin Menendez Velazquez is automatic on appropriations bills, a Clement Inglis Rahall Engel Mfume Vento Clinger Istook Ramstad Fattah Miller (CA) Volkmer vote on final passage. The other side Coble Johnson (CT) Reed Fields (LA) Mineta Waters has assured us, and we are assuring Coburn Johnson (SD) Regula Filner Moran Watt (NC) Members that there is no plan to vote Collins (GA) Johnson, E.B. Richardson Flake Murtha Waxman Combest Johnson, Sam Riggs Foglietta Nadler Wyden on the rule on the Foreign Operations Condit Jones Rivers Frank (MA) Neal Wynn appropriations bill. Cooley Kaptur Roberts Mr. OBEY. Mr. Speaker, will the gen- Costello Kasich Roemer NOT VOTING—10 tleman yield on that point, because Cox Kelly Rogers Crane Kennedy (MA) Rohrabacher Ackerman Laughlin Serrano that is no longer correct. Will the gen- Crapo Kennedy (RI) Ros-Lehtinen Clayton McHugh Torres Dicks Moakley tleman yield for a clarification? Cremeans Kennelly Rose Houghton Parker Mr. DELAY. I will be glad to yield to Cubin Kildee Roth the gentleman from Wisconsin, the Cunningham Kim Roukema Danner King Royce b 1539 ranking member of the Committee on Davis Kingston Sabo Appropriations. de la Garza Kleczka Salmon So the bill was passed. Deal Klug Sawyer Mr. OBEY. Mr. Speaker, there are The result of the vote was announced two aspects of the rule which have just DeLauro Knollenberg Saxton DeLay Kolbe Scarborough as above recorded. come to my attention, which mean Deutsch LaHood Schaefer that this gentleman at least would be Diaz-Balart Lantos Schiff A motion to reconsider was laid upon asked for a vote on the rule. I do not Dickey Largent Schumer the table. Dixon Latham Seastrand know what the wish of the majority is Doggett LaTourette Sensenbrenner f in terms of proceeding, but I do not be- Dooley Lazio Shadegg lieve that Members should be given as- Doolittle Leach Shaw Dornan Levin Shays GENERAL LEAVE surances that if the rule is going to be Doyle Lewis (CA) Shuster voted on tonight, that there will not be Dreier Lewis (KY) Sisisky Mr. PACKARD. Mr. Speaker, I ask a rollcall vote, because with my new Duncan Lightfoot Skaggs unanimous consent that all Members understanding of what the Committee Dunn Lincoln Skeen may have 5 legislative days within Edwards Linder Skelton on Rules has done, I intend to ask for Ehlers Lipinski Smith (MI) which to revise and extend their re- a vote on the rule. Ehrlich Livingston Smith (NJ) marks on H.R. 1854, the bill just passed, Emerson LoBiondo Smith (TX) and that I may include tabular and ex- b 1530 English Lofgren Smith (WA) Ensign Longley Solomon traneous material and charts. Mr. DELAY. Mr. Speaker, I change Eshoo Lowey Souder The SPEAKER pro tempore. Is there my earlier statement. There will be a Evans Lucas Spence objection to the request of the gen- vote on final passage, a rollcall vote on Everett Luther Spratt Ewing Maloney Stearns tleman from California? final passage, and Members should ex- Farr Manton Stenholm pect a vote on the rule in an hour after Fawell Manzullo Stockman There was no objection. Fazio Markey Studds that vote is concluded. f The SPEAKER pro tempore (Mr. Fields (TX) Martini Stump Flanagan Mascara Stupak CAMP). The question is on passage of Foley Matsui Talent REPORT ON RESOLUTION PROVID- the bill. Forbes McCarthy Tanner ING FOR CONSIDERATION OF Pursuant to clause 7 of rule XV, the Ford McCollum Tate Fowler McCrery Tauzin H.R. 1905, ENERGY AND WATER yeas and nays are ordered. Fox McDade Taylor (MS) DEVELOPMENT APPROPRIATIONS This will be a 5-minute vote. Franks (CT) McHale Taylor (NC) ACT, 1996 The vote was taken by electronic de- Franks (NJ) McInnis Tejeda vice, and there were—yeas 337, nays 87, Frelinghuysen McIntosh Thomas Mr. QUILLEN, from the Committee Frisa McKeon Thornberry not voting 10, as follows: Frost McNulty Thornton on Rules, submitted a privileged report [Roll No. 417] Funderburk Meehan Thurman (Rept. No. 104–154), on the resolution Gallegly Meek Tiahrt (H. Res. 171) providing for consider- YEAS—337 Ganske Metcalf Torkildsen Allard Baldacci Barton Gekas Meyers Traficant ation of the bill (H.R. 1905) making ap- Archer Ballenger Bass Gephardt Mica Upton propriations for energy and water de- Armey Barcia Bateman Geren Miller (FL) Visclosky velopment for the fiscal year ending Bachus Barr Beilenson Gilchrest Minge Vucanovich September 30, 1996, and for other pur- Baesler Barrett (NE) Bentsen Gillmor Mink Waldholtz Baker (CA) Barrett (WI) Bereuter Gilman Molinari Walker poses, which was referred to the House Baker (LA) Bartlett Berman Gonzalez Mollohan Walsh Calendar and ordered to be printed. June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6233 PROVIDING FOR CONSIDERATION yield myself such time as I may things. First, it is an open rule, allow- OF H.R. 1868, FOREIGN OPER- consume. During consideration of this ing any Member to offer an amendment ATIONS, EXPORT FINANCING, resolution, all time yielded is for the that is in order under the standing AND RELATED PROGRAMS AP- purposes of debate only. rules of the House. In fact, this rule PROPRIATIONS ACT, 1996 (Mr. GOSS asked and was given per- does go a little bit beyond that, allow- Mr. GOSS. Mr. Speaker, by direction mission to include extraneous material ing for debate on four separate amend- of the Committee on Rules, I call up in the RECORD.) ments, two Democratic amendments House Resolution 170 and ask for its PERMISSION FOR MEMBER TO OFFER and two Republican amendments, that immediate consideration. AMENDMENTS IN MODIFIED FORM might not be allowed under a regular The Clerk read the resolution as fol- Mr. GOSS. Mr. Speaker, I ask unani- rule, might not, I say, because we are lows: mous consent that the gentleman from not entirely sure of the parliamentary ALL rulings on all of them. H. RES. 170 Ohio [Mr. H ] be permitted to offer either of his amendments numbered 1 There are only three specific waivers Resolved, That at any time after the adop- or 2 in House Report 104–147 which ac- given to the bill for unauthorized ap- tion of this resolution the Speaker may, pur- propriations, reappropriations, and for suant to clause 1(b) of rule XXIII, declare the companies House Resolution 170, to the House resolved into the Committee of the bill H.R. 1868 in the modified form a technical trade provision. The first two are needed because Whole House on the state of the Union for which Representative HALL has placed consideration of the bill (H.R. 1868) making at the desk. there has not been a foreign operations appropriations for foreign operations, export The SPEAKER pro tempore. Is there authorization bill that has made it into financing, and related programs for the fis- objection to the request of the gen- law since 1985, as just about everybody cal year ending September 30, 1996, and for tleman from Florida? knows. This year the House passed an other purposes. The first reading of the bill Mr. HALL of Ohio. Mr. Speaker, re- authorizing bill. We have done our shall be dispensed with. General debate shall work, and it is worth noting the Com- be confined to the bill and shall not exceed serving the right to object, I will not object, but I would like to explain this mittee on Appropriations has worked one hour equally divided and controlled by closely with the Committee on Inter- the chairman and ranking minority member request. of the Committee on Appropriations. After The unanimous consent will simply national Relations to ensure this bill is general debate the bill shall be considered correct a technical and clerical error in line with the House-passed author- for amendment under the five-minute rule. that occurred at the Legislative Coun- ization. The last technical waiver I men- The bill shall be considered by title rather sel’s office in the drafting of my than by paragraph. Each title shall be con- tioned is required because the bill con- amendments, which appear as amend- sidered as read. Points of order against pro- tains a provision expanding the Presi- ments number 1 and number 2. An in- visions in the bill for failure to comply with dent’s existing authority to impose clause 2, 5(b), or 6 of rule XXI are waived. Be- correct number was picked up from trade sanctions to Iraq, Serbia, and fore consideration of any other amendment line 14, page 22, of H.R. 1868. As a re- Montenegro. While this provision is in- it shall be in order to consider the amend- sult, the corrected numbers in the Hall cluded in the bill for very sound foreign ments printed in part 1 of the report of the amendment are $2,326,700,000 and Committee on Rules accompanying this res- policy reasons, trade issues fall under $2,300,000,000 respectively. This is a the primary jurisdiction of the Com- olution in the order printed. Each of those technical error. amendments may be offered only by a Mem- mittee on Ways and Means. Therefore, ber designated in the report, may amend por- b 1545 this section needs a waiver from clause tions of the bill not yet read for amendment, 5(b) of rule XXI. shall be considered as read, shall be debat- It will not change the thrust of the As in previous rules this year, we able for ten minutes equally divided and con- amendments, and I still only intend to have included a preprinting option, I trolled by the proponent and an opponent, offer one of them. stress the word ‘‘option,’’ for priority shall not be subject to amendment, and shall Mr. Speaker, I withdraw my reserva- and recognition. not be subject to a demand for division of the tion of objection. And, finally, this rule provides for a question in the House or in the Committee of The SPEAKER pro tempore. Is there the Whole. All points of order against motion to recommit with or without objection to the request of the gen- instructions, as is the right of the mi- amendments printed in part 1 of the report tleman from Florida? are waived. After disposition of the amend- nority. ments printed in part 1 of the report, the Mr. OBEY. Mr. Speaker, reserving Mr. Speaker, as we discussed in the provisions of the bill as then perfected shall the right to object, is the technical Committee on Rules hearing yesterday, be considered as original text. Points of amendment only in the Hall amend- it is important for this House to have a order against amendments printed in part of ment and no other portion? full and complete debate over the issue the report under clause 2 of rule XXI are Mr. GOSS. Mr. Speaker, will the gen- of foreign aid especially over the true waived. An amendment printed in part 2 of tleman yield? amount of tax dollars involved and the the report shall not be subject to a demand Mr. OBEY. Further reserving the policies that drive these expenditures. I for division of the question in the House or right to object, I yield to the gen- am pleased that this rule allows for in the Committee of the Whole. During fur- tleman from Florida. ther consideration of the bill for amend- this debate, and I look forward to it. ment, the Chairman of the Committee of the Mr. GOSS. That is the only part of This year’s foreign aid rule is, in Whole may accord priority in recognition on the unanimous-consent request that I many ways, a tremendous improve- the basis of whether the Member offering an have presently on the floor on which ment over previous bills. To begin amendment has caused it to be printed in the the gentleman from Ohio [Mr. HALL] with, it is $1.6 billion below last year’s portion of the Congressional Record des- reserved the right to object. bill and $2.8 billion below the Presi- ignated for that purpose in clause 6 of rule Mr. OBEY. Mr. Speaker, I withdraw dent’s requests. Those are significant XXIII. Amendments so printed shall be con- my reservation of objection. amounts of money, and, in my view, sidered as read. At the conclusion of consid- The SPEAKER pro tempore (Mr. eration of the bill for amendment the Com- they are responsible cuts that rep- mittee shall rise and report the bill to the CAMP). Is there objection to the request resent the kind of spending reform that House with such amendments as may have of the gentleman from Florida? is necessary to achieve the balanced been adopted. The previous question shall be There was no objection. budget we set out to do. considered as ordered on the bill and amend- Mr. GOSS. Mr. Speaker, I am pleased In addition, there is much greater ac- ments thereto to final passage without inter- to bring this rule to the floor today. countability for the funds spent under vening motion except one motion to recom- While it is not a remarkable rule, it this bill. Americans have demanded mit with or without instructions. does share certain qualities with most that. And we make these two issues, af- The SPEAKER pro tempore. The gen- of the rules of the new majority that fordability and accountability, our top tleman from Florida [Mr. GOSS] is rec- we have reported this year. priority in any foreign aid bill, and I ognized for 1 hour. First, it is open. It has a very limited think we have done that pretty well Mr. GOSS. Mr. Speaker, for the pur- number of specific waivers, and it is here. poses of debate only, I yield the cus- fair to both sides of the aisle. We are now down to less than 1 per- tomary 30 minutes to the gentleman Specifically, the rule for the foreign cent of the budget for foreign aid, from Ohio [Mr. HALL] pending which I operations bill accomplishes several something under $12 billion. H 6234 CONGRESSIONAL RECORD — HOUSE June 22, 1995 There is one area in which I would calendar year, elections for Haiti’s par- and ensure that they are ulitized to en- like to see even greater accountability, liament this weekend and the Presi- hance democracy and provide a real in- however, and that is aid to the Govern- dency in December of this year. centive to Haiti to stay on the road to ment of Haiti. The Clinton administra- I plan to offer an amendment that democracy. tion has committed an enormous will require that before United States dollars are sent to Haiti, those elec- Mr. Speaker, I believe the rule before amount of taxpayers’ dollars to Haiti, us today is both fair and open. It was actually without much explanation or tions be conducted in a democratic and constitutional manner. This will pro- voted out of our committee on a voice accounting so far. There is an impor- vide greater accountability for the for- vote, and I urge my colleagues to sup- tant pair of elections scheduled for this eign aid dollars that are spent in Haiti port its adoption. THE AMENDMENT PROCESS UNDER SPECIAL RULES REPORTED BY THE RULES COMMITTEE,1 103D CONGRESS V. 104TH CONGRESS [As of June 20, 1995]

103d Congress 104th Congress Rule type Number of rules Percent of total Number of rules Percent of total

Open/Modified-open 2 ...... 46 44 30 73 Modified Closed 3 ...... 49 47 11 27 Closed 4 ...... 9 9 0 0 Totals: ...... 104 100 41 100 1 This table applies only to rules which provide for the original consideration of bills, joint resolutions or budget resolutions and which provide for an amendment process. It does not apply to special rules which only waive points of order against appropriations bills which are already privileged and are considered under an open amendment process under House rules. 2 An open rule is one under which any Member may offer a germane amendment under the five-minute rule. A modified open rule is one under which any Member may offer a germane amendment under the five-minute rule subject only to an overall time limit on the amendment process and/or a requirement that the amendment be pre-printed in the Congressional Record. 3 A modified closed rule is one under which the Rules Committee limits the amendments that may be offered only to those amendments designated in the special rule or the Rules Committee report to accompany it, or which preclude amendments to a particular portion of a bill, even though the rest of the bill may be completely open to amendment. 4 A closed rule is one under which no amendments may be offered (other than amendments recommended by the committee in reporting the bill).

SPECIAL RULES REPORTED BY THE RULES COMMITTEE, 104TH CONGRESS [As of May 12, 1995]

H. Res. No. (Date rept.) Rule type Bill No. Subject Disposition of rule

H. Res. 38 (1/18/95) ...... O ...... H.R. 5 ...... Unfunded Mandate Reform ...... A: 350–71 (1/19/95). H. Res. 44 (1/24/95) ...... MC ...... H. Con. Res. 17 ...... Social Security ...... A: 255–172 (1/25/95). H.J. Res. 1. Balanced Budget Amdt. H. Res. 51 (1/31/95) ...... O ...... H.R. 101 ...... Land Transfer, Taos Pueblo Indians ...... A: voice vote (2/1/95). H. Res. 52 (1/31/95) ...... O ...... H.R. 400 ...... Land Exchange, Arctic Nat’l. Park and Preserve ...... A: voice vote (2/1/95). H. Res. 53 (1/31/95) ...... O ...... H.R. 440 ...... Land Conveyance, Butte County, Calif ...... A: voice vote (2/1/95). H. Res. 55 (2/1/95) ...... O ...... H.R. 2 ...... Line Item Veto ...... A: voice vote (2/2/95). H. Res. 60 (2/6/95) ...... O ...... H.R. 665 ...... Victim Restitution ...... A: voice vote (2/7/95). H. Res. 61 (2/6/95) ...... O ...... H.R. 666 ...... Exclusionary Rule Reform ...... A: voice vote (2/7/95). H. Res. 63 (2/8/95) ...... MO ...... H.R. 667 ...... Violent Criminal Incarceration ...... A: voice vote (2/9/95). H. Res. 69 (2/9/95) ...... O ...... H.R. 668 ...... Criminal Alien Deportation ...... A: voice vote (2/10/95). H. Res. 79 (2/10/95) ...... MO ...... H.R. 728 ...... Law Enforcement Block Grants ...... A: voice vote (2/13/95). H. Res. 83 (2/13/95) ...... MO ...... H.R. 7 ...... National Security Revitalization ...... PQ: 229–100; A: 227–127 (2/15/95). H. Res. 88 (2/16/95) ...... MC ...... H.R. 831 ...... Health Insurance Deductibility ...... PQ: 230–191; A: 229–188 (2/21/95). H. Res. 91 (2/21/95) ...... O ...... H.R. 830 ...... Paperwork Reduction Act ...... A: voice vote (2/22/95). H. Res. 92 (2/21/95) ...... MC ...... H.R. 889 ...... Defense Supplemental ...... A: 282–144 (2/22/95). H. Res. 93 (2/22/95) ...... MO ...... H.R. 450 ...... Regulatory Transition Act ...... A: 252–175 (2/23/95). H. Res. 96 (2/24/95) ...... MO ...... H.R. 1022 ...... Risk Assessment ...... A: 253–165 (2/27/95). H. Res. 100 (2/27/95) ...... O ...... H.R. 926 ...... Regulatory Reform and Relief Act ...... A: voice vote (2/28/95). H. Res. 101 (2/28/95) ...... MO ...... H.R. 925 ...... Private Property Protection Act ...... A: 271–151 (3/1/95) H. Res. 104 (3/3/95) ...... MO ...... H.R. 988 ...... Attorney Accountability Act ...... A: voice vote (3/6/95) H. Res. 103 (3/3/95) ...... MO ...... H.R. 1058 ...... Securities Litigation Reform ...... H. Res. 105 (3/6/95) ...... MO ...... A: 257–155 (3/7/95) H. Res. 108 (3/7/95) ...... Debate ...... H.R. 956 ...... Product Liability Reform ...... A: voice vote (3/8/95) H. Res. 109 (3/8/95) ...... MC ...... PQ: 234–191 A: 247–181 (3/9/95) H. Res. 115 (3/14/95) ...... MO ...... H.R. 1159 ...... Making Emergency Supp. Approps...... A: 242–190 (3/15/95) H. Res. 116 (3/15/95) ...... MC ...... H.J. Res. 73 ...... Term Limits Const. Amdt ...... A: voice vote (3/28/95) H. Res. 117 (3/16/95) ...... Debate ...... H.R. 4 ...... Personal Responsibility Act of 1995 ...... A: voice vote (3/21/95) H. Res. 119 (3/21/95) ...... MC ...... A: 217–211 (3/22/95) H. Res. 125 (4/3/95) ...... O ...... H.R. 1271 ...... Family Privacy Protection Act ...... A: 423–1 (4/4/95) H. Res. 126 (4/3/95) ...... O ...... H.R. 660 ...... Older Persons Housing Act ...... A: voice vote H. Res. 128 (4/4/95) ...... MC ...... H.R. 1215 ...... Contract With America Tax Relief Act of 1995 ...... A: 228–204 (4/5/95) H. Res. 130 (4/5/95) ...... MC ...... H.R. 483 ...... Medicare Select Expansion ...... A: 253–172 (4/6/95) H. Res. 136 (5/1/95) ...... O ...... H.R. 655 ...... Hydrogen Future Act of 1995 ...... A: voice vote (5/2/95) H. Res. 139 (5/3/95) ...... O ...... H.R. 1361 ...... Coast Guard Auth. FY 1996 ...... A: voice vote (5/9/95) H. Res. 140 (5/9/95) ...... O ...... H.R. 961 ...... Clean Water Amendments ...... A: 414–4 (5/10/95) H. Res. 144 (5/11/95) ...... O ...... H.R. 535 ...... Fish Hatchery—Arkansas ...... A: voice vote (5/15/95) H. Res. 145 (5/11/95) ...... O ...... H.R. 584 ...... Fish Hatchery—Iowa ...... A: voice vote (5/15/95) H. Res. 146 ...... O ...... H.R. 614 ...... Fish Hatchery—Minnesota ...... A: voice vote (5/15/95) H. Res. 149 (5/16/95) ...... MC ...... H. Con. Res. 67 ...... Budget Resolution FY 1996 ...... PQ: 252–170 A: 255–168 (5/17/95) H. Res. 155 (5/22/95) ...... MO ...... H.R. 1561 ...... American Overseas Interests Act ...... A: 233–176 (5/23/95) H. Res. 164 (6/8/95) ...... MC ...... H.R. 1530 ...... Nat. Defense Auth. FY 1996 ...... PQ: 225–191 A: 233–183 (6/13/95) H. Res. 167 (6/15/95) ...... O ...... H.R. 1817 ...... MilCon Appropriations FY 1996 ...... PQ:223–180 A: 245–155 (6/16/95) H. Res. 169 (6/19/95) ...... MC ...... H.R. 1854 ...... Leg. Branch Approps. FY 1996 ...... PQ: 232–196 A: 236–191 (6/20/95) H. Res. 170 (6/20/95) ...... O ...... H.R. 1868 ...... For. Ops. Approps. FY 1996 ...... Codes: O-open rule; MO-modified open rule; MC-modified closed rule; C-closed rule; A-adoption vote; PQ-previous question vote. Source: Notices of Action Taken, Committee on Rules, 104th Congress.

Mr. Speaker, I reserve the balance of ized appropriations provisions in the fund and to include basic education ac- my time. bill, as well as clause 6 of rule XXI, tivities for millions of poor children Mr. HALL of Ohio. Mr. Speaker, I prohibiting reappropriations in some overseas. yield myself such time as I may provisions. I want to thank the gentleman from consume. The rule does reflect an agreement New York [Mr. SOLOMON] and the mem- (Mr. HALL of Ohio asked and was between the authorizing committee bers of the Republicans and the Demo- given permission to revise and extend and the appropriators by making in crats on the Committee on Rules for his remarks.) Mr. HALL of Ohio. Mr. Speaker, as order two amendments to be offered by making this in order. I appreciate that. my colleague has described, House Res- the gentleman from New York [Mr. Other amendments allowed under the olution 170 is essentially an open rule. GILMAN], chairman of the Committee rule include one by the gentleman from It provides 1 hour of general debate on on International Relations. New Jersey [Mr. SMITH], the gentleman the foreign operations appropriation The rule also makes in order my chil- from New Jersey [Mr. MENENDEZ] on bill for fiscal year 1996. dren’s amendment, which is called the Cuba, the gentleman from Florida [Mr. The rule does provide waivers of Hall amendment, to transfer $108 mil- GOSS] on Haiti, and under the normal clause 2 of rule XXI, to allow unauthor- lion in funds to the new child survival amending process in the House, any June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6235 other amendment which does not vio- It allows Republicans and Democrats, I was informed earlier that it was the late House rules will be in order under it allows liberals, conservatives, any- intention of the committee not to ac- this rule. body else, the right to come on this cept legislative language, save two So, Mr. Speaker, while I do support floor and work their will. That is the amendments which everyone under- this rule, I have some misgivings about way it should be. I will not go into that stood would be offered, one being the the bill as it currently stands. As I in- any further. one by the gentleman from Ohio [Mr. dicated during the debate on the Amer- Let me just say this appropriations HALL] and the other by the gentleman ican Overseas Interest Act, the inter- bill itself represents yet another in- from New Jersey [Mr. SMITH]. The national affairs budget represents only stallment in our march towards a bal- abortion issue is so contentious that 1.3 percent of total Federal spending. It ancing of the Federal budget. That, to we almost always have an issue like has already been cut by 40 percent me, means so much. It means that the that, and that cannot be avoided. since 1985, and under this bill the fund total appropriation in this bill is al- But there are two other legislative for Africa absorbs a 34-percent cut and most 20-percent below the administra- amendments which are now being made another 40 percent is squeezed out of tion’s request, and more than that, it is in order which have, in my view, no development aid. Funds in these areas almost 12-percent below the appro- business on an appropriation bill which go for self-0help, preventive programs priated level from fiscal year 1995. And would tie our entire relationship with which alleviate more money down the that is the only way that we are ever the Soviet Union to one narrow ques- road. going to balance the budget. We have tion of what happens in Cuba, and an- Mr. Speaker, I am pleased the Com- to spend less this year than we spent other amendment which would tie our mittee on Rules was able to make the last year, and we have got to continue entire aid relationship to Haiti to leg- Hall amendment, which is my amend- to do that year in and year out at least islative language which I have not even ment, in order to transfer $108 million for 7 years. I wish it could be sooner. yet had an opportunity to review, let in funds to the new child survival and The truth of the matter is we are fol- alone staff out. disease programs fund. This fund is cre- lowing the Ronald Reagan philosophy. And so, under these circumstances, ated to take care of vital child survival He said that instead of giving people what I had thought would be a rule and disease prevention activities that fish and foreign aid, we ought to teach which would be a straight appropria- alleviate malnutrition and death them how to fish, and that is exactly tion rule bill, in fact, allow for a num- among the world’s poorest children. what this bill does. Otherwise, we have ber of policy issues which, in my view, My amendment will also allow basic to keep giving them fish year in and properly ought to be debated on the au- education programs to be funded year out. This way, let us teach them thorization bill and not on the appro- through this new children’s account. how to fish. That is what we are doing priations bill. And because of that, and Disease and malnutrition and basic in restructuring our foreign aid pro- because I believe that the amendment education are the core of self-suffi- grams, as well as the domestic pro- with respect to our relationship with ciency, and without a renewed empha- grams. the Soviet Union further adds to the So I commend the sponsors of this sis on these kinds of programs, we can- recklessness with which that issue has legislation on the Committee on Ap- not expect people to raise themselves generally been dealt with by this com- propriations for a job well done, and I out of poverty or improve their situa- mittee, I am sorry to say that I will hope that everybody votes for this fair tions. For each additional year of rule and then for the bill itself. have to oppose the rule and will, in schooling children from developing It will be the first appropriations bill fact, oppose the previous question on countries receive, their incomes rise as on foreign operations that I have ever the rule and would ask that if the pre- much as 10 percent. voted for, and that is because it begins vious question is not approved, that My amendment pays for itself by to turn things around and reduce the the House support an amendment cor- transferring small amounts from other Federal deficit. recting the fact that there are two leg- foreign aid programs that can absorb Mr. HALL of Ohio. Mr. Speaker, I islative amendments on this proposal the cuts. yield 3 minutes to the gentleman from that do not belong here. And finally, in the Committee on Wisconsin [Mr. OBEY]. Mr. GOSS. Mr. Speaker, I yield my- Rules hearing, the gentleman from Mr. OBEY. Mr. Speaker, let me sim- self such time as I may consume. Oklahoma [Mr. BREWSTER] did request ply observe, with respect to the state- I would just note in response to the an amendment know as the deficit re- ment by the gentleman from New gentleman’s comments that one of duction lockbox amendment. This York, that the foreign aid bills for the those amendments was brought for- would have allowed any savings ob- last 10 years have reduced the level of ward by a distinguished Member of the tained from floor votes to go into a foreign assistance. They used to be $18 gentleman’s party, the gentleman from special deficit reduction trust fund. billion, and in the last decade they New Jersey [Mr. MENENDEZ], and he Given the interest many of us have in have been brought down to $13 billion. was treated very fairly. It was thought deficit reduction, I believe the Com- So this is not, by any means, the first to be an important amendment. mittee on Rules should have made the foreign assistance bill which was lower And the other amendment, the one Brewster amendment in order. than the previous year. We have had about Haiti which was brought forward My colleague, the gentleman from that occur on a number of occasions by myself, actually probably does not California [Mr. BEILENSON] did offer the during the years that I have chaired need protection, because it is a cutting lockbox measure as an amendment to that subcommittee. amendment, a limitation amendment, the rule, but, unfortunately, it failed. Let me say that I have opposed the not a legislating amendment, we are I plan to support the rule. I think it authorization bill because I felt that it told. is a good rule. represents some of the most incredible Mr. Speaker, I yield 4 minutes to my Mr. Speaker, I reserve the balance of micromanagement of foreign assist- colleague, the distinguished gentleman my time. ance in the history of the foreign as- from Florida [Mr. DIAZ-BALART]. Mr. GOSS. Mr. Speaker, I yield such sistance program, and I think that b time as he may consume to the distin- much of the micromanagement in that 1600 guished gentleman from Glens Falls, bill is idiotic. Mr. DIAZ-BALART. Mr. Speaker, I NY [Mr. SOLOMON], the chairman of the But I have been intending to support thank my distinguished colleague, the Committee on Rules, formerly of Okee- the appropriation bill because despite gentleman from Florida [Mr. GOSS] for chobee, FL. the fact that I believe it has a poor al- yielding me this time. Mr. SOLOMON. As a matter of fact, I location of priorities and, despite the I think it is curious that we just will be down near there this weekend. reckless manner with which it deals heard that the issue that was made in Let me say the two speakers, the with issues such as NATO and our rela- order by virtue of the Menendez gentleman from Florida [Mr. GOSS] and tionship with the Soviet Union, it does, amendment having been made in order the gentleman from Ohio [Mr. HALL], in fact, not have a lot of the by the Committee on Rules, and I am have accurately described this rule as micromanagement that is contained in going to try to paraphrase, is a narrow being fair and open, and it is. the authorization bill. issue that will tie our relationship to H 6236 CONGRESSIONAL RECORD — HOUSE June 22, 1995 the Soviet Union to an incident or a So that is all we are saying, and it is Mr. SOLOMON. Mr. Speaker, will the situation in Cuba. not a narrow interest. It is something gentleman yield? To call a nuclear power plant that is that is in our national interest. It is Mr. DIAZ-BALART. I yield to the being built 180 miles from the United something that is in our national in- gentleman from New York. States, and that is being built of a terest, and that is why, despite the pos- Mr. SOLOMON. Mr. Speaker, I would model that after the reunification of sible, the possible allegations that just like to point out that the original Germany four nuclear power plants some points of order could conceivably, sponsor of the amendment, the gen- which had been built by the Soviets and we are not sure, be made with re- tleman from New Jersey [Mr. there of that same model were imme- gard to those amendments, the Com- MENENDEZ], is a Democrat, and cer- diately closed down by the Government mittee on Rules made them in order. tainly the gentleman from Florida is a of Germany because of their lack of It is a good rule, Mr. Speaker, and I Republican, and so am I. But we all had safety, to call the national interests of would ask for my colleagues’ support of interest in this because time is critical the United States that that kind of nu- this fair rule. right now. clear power plant not be completed 180 Mr. HALL of Ohio. Mr. Speaker, I As a matter of fact, the truth of the miles from our shore a narrow interest yield 1 minute to the gentleman from matter is we delayed the markup of is quite a curiosity. Wisconsin [Mr. OBEY]. this rule in the Committee on Rules in That is precisely, however, why the Mr. OBEY. Mr. Speaker, I want to order to go back to the Appropriations gentleman from New Jersey [Mr. make clear that I agree with both gen- Committee, both sides of the aisle, MENENDEZ] came before the Committee tlemen on substance; I agree with the staff on the Democrat side and Repub- on Rules, because of the grave nature previous speaker. I do not want to see lican side, to find out if perhaps there of the threat to the U.S. national secu- that reactor built in Cuba either. I was a better way or perhaps other sug- rity that would ensue if this nuclear think it is an idiotic, asinine, and stu- gestions. We did change it based on power plant were completed. pid thing for the Soviets to do, and I their recommendations. That is why the gentleman from New think we ought to do everything pos- So we have done everything we could. Jersey [Mr. MENENDEZ] came before the sible to stop it. If the gentleman has a better way, we Committee on Rules and asked we The question is whether the method will consider that, too. make in order, and we did, his amend- chosen by the gentleman is the most Mr. OBEY. Mr. Speaker, will the gen- ment which will simply say to Russia effective way to accomplish that end, tleman yield? that, if they contribute to the comple- and I do not believe it is, and that is Mr. DIAZ-BALART. I yield to the tion of that nuclear power plant 180 the simple issue here. gentleman from Wisconsin. I do not want for one moment for Mr. OBEY. Mr. Speaker, he keeps in- miles from the United States in Cuba, anyone to believe that I do not agree dicating that one of the authors of one that the amount that Russia contrib- with both gentlemen with respect to of the amendments was a Democrat. It utes to that nuclear power plant’s com- their policy positions on either Haiti or is immaterial to me whether it comes pletion on a dollar-for-dollar basis will with respect to that reactor. I say to from either side, which side of the aisle be deducted from United States tax- them, ‘‘I agree with you on both of it comes from. The fact is our commit- payer assistance to Russia. them. I do, however, have substantial tee knows about as much about that Now that is not, Mr. Speaker, I would question about whether or not the subject as the gentleman can put in his maintain, nor did the majority of the method you have chosen to try to ac- left ear. It ought to be handled by the Committee on Rules maintain, a nar- complish that purpose will do it.’’ authorizing committee. row interest. It is the national security I, in fact, think it may have the op- Mr. SOLOMON. Mr. Speaker, the gen- interests of the United States being posite reaction, and that is one reason tleman from Wisconsin [Mr. OBEY] has protected by this Congress in making why I believe that on short order, on been around here for 20 years. He is sure that we make the strongest pos- the basis of a very brief discussion in probably one of the most knowledge- sible statement to Russia that we will the Committee on Rules, this amend- able Members on the subject of foreign not accept a VVER, a VVER model nu- ment should not have been made in affairs, and I have praised him to the clear power plant being completed a order, because frankly I do not think sky for many years. hundred 180 miles from the soil of the the Congress at this point knows what Mr. DIAZ-BALART. Mr. Speaker, we United States. it is doing on either one of these sub- do not want these—— Now in Europe the entire environ- jects. The SPEAKER pro tempore (Mr. mental movement is mobilized at this Mr. GOSS. Mr. Speaker, I yield 1 CAMP). The time of the gentleman from point to close down the other VVER minute to the distinguished gentleman Florida [Mr. DIAZ-BALART] has expired. power plants that are still in operation from Florida [Mr. DIAZ-BALART] so he Mr. HALL of Ohio. Mr. Speaker, I throughout Eastern Europe that the may respond to that. yield 7 minutes to the gentleman from Soviets had constructed, and they are Mr. DIAZ-BALART. Mr. Speaker, I California [Mr. BEILENSON], a very dis- able to close them down. They have thank the gentleman from Florida [Mr. tinguished member of the Committee been able to close already all of them GOSS] for these 2 minutes. I do not on Rules. down in Germany, and they are making think I will need 2 minutes. I just want (Mr. BEILENSON asked and was substantial progress in closing down to thank the gentleman from Wiscon- given permission to revise and extend the other ones. sin [Mr. OBEY] for his support on the his remarks.) This is not a narrow interest. This is substantive issue. Mr. BEILENSON. Mr. Speaker, I ap- something that the gentleman from I say to the gentleman, ‘‘If over and preciate very much my colleague and New Jersey [Mr. MENENDEZ] I think above our efforts you have further sug- friend yielding so much time to me. brought forth very correctly, and I gestions, we are more than open to re- Mr. Speaker, I rise in mild opposition think he has to be commended for ceive your suggestions on how to make to the rule and in strong opposition to bringing it forth in this bill as an sure that those powerplants won’t be the bill that it would make in order, amendment. He brought it to our at- completed in Cuba and how to make the fiscal 1996 foreign operations appro- tention in the Committee in Rules, and sure that democracy is continued and priations bill. we made it in order, as we made in furthered and protected in Haiti. We Mr. Speaker, what is at stake in this order the request of the gentleman happen to believe that this is not only bill is nothing less than the future of from Florida [Mr. GOSS] that, if we are an appropriate vehicle, but a most ap- America’s leadership in the world. going to send taxpayer dollars to Haiti, propriate vehicle to put maximum While we need to cut Federal spending, that they have to have free elections. pressure on both of these situations we ought to be extremely concerned Now I think it would be really an ex- with regard to the national interests of about the potentially disastrous effects treme absurdity if we were going to the United States, but if over and the spending cuts in this bill will have continue to send U.S. taxpayer dollars above these efforts you have additional on U.S. influence abroad, on our ability to Haiti if a government there, what- suggestions, we will be more than open to protect our national interests, and ever the government is, proceeds to to review them and hopefully work to- on the lives of hundreds of millions of steal elections. gether with you.’’ people in the developing world. June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6237 The bill cuts foreign aid by $1.6 bil- countries import almost 40 percent of lack of access of women to basic repro- lion below this year’s level, a level that U.S. exports, accounting for at least 2 ductive health services and informa- already reflects a vastly reduced for- million U.S. American jobs. In the past tion, are contributing to intractable eign aid budget compared to that of, decade alone, exports to developing poverty, malnutrition, widespread un- say, 10 years ago when Ronald Reagan countries have more than doubled from employment, urban overcrowding, and was President. In 1985, the United $71 to $180 billion a year. the rapid spread of disease. Population States spent $18.1 billion on foreign The United States is today exporting control growth is outstripping the ca- aid. This year we are spending just products and services to many of the pacity of many nations to make even $13.5 billion, a 25 percent reduction, not nations we were giving assistance to in modest gains in economic develop- adjusted for inflation. Adjusted for in- the 1960’s and the 1970’s. More than 24 ment, leading to political instability flation is closer to 40 to 45 percent. countries since that time have moved and negating other U.S. and other One of the great myths that has been from being foreign aid recipients to be- international development efforts. perpetrated in the media is that the coming trading partners with us. So for these and many other reasons, Federal Government spends a signifi- Foreign aid has also dramatically which will be in my extended remarks, cant portion of its budget on foreign improved the lives of hundreds of mil- I urge our colleagues to vote against aid. Indeed, in a recent study three of lions of people and reduced the risk of, what I believe to be the unwise, coun- four Americans said they believe the and the occurrence of, humanitarian terproductive, and ultimately destruc- United States spends too much on for- crises. Since 1960, development assist- tive cuts in our Nation’s foreign assist- eign aid. But when asked how much ance has helped reduce infant mortal- ance budget contained in this bill. they thought the Nation spends, the ity rates in developing countries by 50 These programs work. Combating rapid median response was 15 percent of the percent, has helped increase life ex- population growth, enhancing mater- Federal budget. And when respondents pectancy from 46 years to 63 years, has nal health, ensuring child survival, re- were asked how much the United helped increase primary school enroll- ducing the spread of disease, providing States should spend on foreign aid, the ment from 48 percent to 78 percent. basic education and improving agri- median response was 5 percent, with Foreign aid has resulted in important culture and sustainable development most agreeing that 3 percent would be breakthroughs in agriculture; invest- are some of the most humane, far- too little. ments made by the United States in sighted, and economically effective ef- As we all know, U.S. foreign aid is better seeds and agriculture techniques forts we can undertake. Maintaining actually less than 1 percent of the Fed- has helped make it possible to feed an adequate funding for these programs eral budget. In fact, as a percentage of extra billion people in the developing now will save many times its expense the our gross national product [GNP], world. in future U.S. foreign assistance, will the United States is now the lowest aid More than 50 million couples in the promote global peace and security, and contributor of the world’s top 23 indus- developing world use family planning will promote and protect U.S. foreign trialized nations. as a direct result of U.S. assistance for policy interests. I urge a ‘‘no’’ vote on For a minuscule fraction of what we overseas family planning services. Over the rule and the bill. spend on defense, the prudent use of the past 35 years, the average number Mr. Speaker, the impact of exponential pop- foreign aid helps us meet escalating of children per family in the world has ulation growth, combined with unsustainable threats to our national and to global been reduced by one-third, from six patterns of consumption, is also evident in security, including chronic poverty, children to four. mounting signs of stress on the world's envi- rapid population growth, environ- U.S. aid is largely credited with fully ronment. Under conditions of rapid population mental degradation, forced migration, immunizing 80 percent of all children growth, renewable resources are being used and in protecting against political in- in developing countries, eradicating faster than they can be replaced. Other envi- stability in countries that cannot ade- smallpox worldwide, and virtually ronmental consequences of the world's bur- quately take care of their own people. eliminating polio in the Western hemi- geoning population are tropical deforestation, The long-term effect of the cuts in this sphere. erosion of arable land and watersheds, extinc- bill will be a substantial reduction in And, since 1980—in just the past 15 tion of plant and animal species, and pollution the President’s ability to conduct for- years—U.S. foreign assistance has of air, water, and land. eign policy, leaving him, and leaving helped three dozen nations make the us, with only a military option in too transition to democratic governance. For almost 30 years, population assistance many circumstances. The spending reductions in this bill has been a central component of U.S. devel- Many people do not realize how much threaten to reverse these positive opment assistance. While much more remains our modest investment in foreign as- trends, especially as the number of to be done, population assistance has had a sistance programs benefit U.S. busi- poor around the world, currently an es- significant positive impact on the health of nesses and citizens. When the Marshall timated 1.3 billion people, continues to women and their children and on society as a plan was announced in 1947, only 18 per- soar. whole in most countries. In many parts of cent of Americans supported that ef- One area of particular concern to me Asia, Latin America, and Africa, fertility rates fort to rebuild Europe. But U.S. assist- in this bill is the nearly 50-percent cut have decreased, often dramatically. Couples ance helped to establish social and po- in funding for our efforts to stabilize are succeeding in having the smaller families litical stability, and created some of global population growth, which they want because of the greater availability of our best trading partners and, of underlies virtually every developmen- contraceptives that our assistance has made course, our most staunch political al- tal, environmental, and national secu- possible. lies. In the 1960’s and 1970’s, many criti- rity problem facing the world today. Today, approximately 55 percent of couples cized United States assistance to coun- Global population is now nearly 5.7 worldwide use modern methods of contracep- tries such as South Korea, Taiwan, billion people, and it is growing by al- tion, compared with 10 percent in the 1960's. Mexico, and India. But once again, U.S. most 100 million every year—by 260,000 Despite this impressive increase in contracep- assistance ushered in a period of un- every 24 hours. Future prospects, more- tive use, the demand for family planning serv- precedented growth in those countries. over, are even more staggering. If ef- ices is growing, in large measure because With United States help, for example, fective action is not taken in the next populations are growing. Indeed, over the next India has seen dramatic increases in few years—as today’s 1.6 billion chil- 20 years, the number of women and men who agricultural production and, as a con- dren in the developing world under the wish to use contraception will almost double. sequence partially of our foreign aid, a age of 15, reach their childbearing Similarly, population assistance has contrib- politically stable India now offers a years—the earth’s population could uted to the significant progress that has been promising and growing market of more nearly quadruple to 20 billion people by made in reducing infant and child mortality than 900 million people for United the end of the coming century. rates. Child survival is integrally linked to States goods. women's reproductive health, and specifically b The fastest-growing segment of the 1615 to a mother's timing, spacing and number of U.S. export market is in trade with de- In much of the developing world, births. Despite substantial progress, a large veloping countries. Today developing high birth rates caused largely by the proportion of children in the developing H 6238 CONGRESSIONAL RECORD — HOUSE June 22, 1995 worldÐparticularly in sub-Saharan Africa and has quite laudably attempted to place an em- population program is abhorrent, and the some Asian countriesÐstill die in infancy. phasis on helping the world's children, this bill UNFPA in fact categorically condemns the use And, while many countries in the developing would cut many of the programs that will ben- of coercion in any form or manner in any pop- world have succeeded in reducing maternal efit children the most. It contains large cuts in ulation program, including China. Mr. SMITH mortality rates, the incidence of maternal maternal healthÐ$50 millionÐin efforts to has said that the UNFPA cannot say enough death and disability remains unacceptably strengthen health care systems which deliver good things about the Chinese program, and high, constituting a serious public health prob- services to both children and adultsÐ$88 mil- that China could not ask for a better front than lem facing most developing countries. Accord- lionÐand in water sanitation programsÐ$27 the UNFPA. But Mr. SMITH relies on a 1989 ing to the World Health Organization, an esti- million. quote from UNFPA executive director, Dr. mated 500,000 women die every year as a re- Of these proposed cuts, one of the most Nafis Sadik, that was taken out of context, at sult of pregnancy and childbirth. startling and destructive is the reduction for a time when the Chinese seemed to be mak- U.S. population assistance is preventive maternal health. In the set of 18 countries ing progress towards improving the program. medicine on an international scale. Congress central to USAID's goal of reducing maternal The fact is that no evidence has ever been has long recognized this to be the case and mortality, drastic reductions in the funding for presented of complicity by international agen- over the years has reaffirmed the importance delivery of safe pregnancy services will con- cies, including the UNFPA, in Chinese human of population assistance in securing U.S. inter- tribute to an estimated 24,000 maternal deaths rights abuses and, as confirmed by USAID ests abroad. By addressing the basic health annually that would have been otherwise during the Reagan administration, UNFPA and educational needs of women and their averted. In addition to these preventable ma- does not fund abortion or support coercive families, population assistance provides build- ternal deaths, an additional 336,000 stillbirths practices in any country, including China. ing blocks for strong democratic government and early newborn deaths are likely to occur Mr. SMITH's amendment ignores the benefits and sets the stage for economic growth. Fur- as a result of USAID's virtual withdrawal from of the UNFPA's presence in China and over thermore, it helps prevent social and political this program. Finally, the delivery of safe preg- 140 other countries. One of the reasons the crises, thereby averting the need for costly re- nancy and related services not only averts international community has information about lief efforts. maternal deaths, it also helps to avert long- the horrors of the Chinese program is because At the International Conference on Popu- termÐchronicÐdisabilities that occur due to of the presence in China of international orga- lation and Development [ICPD], held in Cairo pregnancy and childbirth. In these 18 key nizations such as the UNFPA. Moreover, last year, the United States was instrumental countries, estimates of the number of preg- many countries believe that by providing as- in building a broad consensus behind a com- nancy-related chronic disabilities are as high sistance to China, UNFPA is in a unique posi- prehensive Program of Action, which was as 7 million annually. tion to positively influence China's population signed by almost all of the 180 countries that I would also like to say a few words about policies and to promote human rights. UNFPA participate in the conference, and which will the Smith amendment to this bill, which has is in constant dialog with Chinese officials at help guide the population and development been granted a waiver in the rule for violating every level on matters pertaining to human programs of the United Nations and national the prohibition against legislating in an appro- rights, and UNFPA's programs expose Chi- governments into the next century. Central to priations bill. nese officials to international standards this plan is the recognition that with adequate Aside from the fact that this waiver is through international training in foreign institu- funding this decade for family planning and re- strongly opposed by the chairman of the Inter- tions, including several United States univer- productive health services, as well as edu- national Relations Committee, Mr. GILMAN, sities. Moreover, denying funding to the cational, economic, and social opportunities and should not have been granted, the Smith UNFPA would have a drastic effect on the necessary to enhance the status of women, amendment will deny millions of women ac- UNFPA's programs in the rest of the world. we can stabilize world population in the first cess to family planning, prenatal care, safe Nearly half of UNFPA assistance is used for half of the next century. delivery services, maternal and infant health family planning services and maternal and This bill, however, seems to abandon the programs, treatments for infertility, and STD child health care in the poorest and most re- goals of the ICPD and the international com- prevention services. It could result in over mote regions of the world. munity. Throughout the Bush administration, hundreds of thousands of abortions that could Mr. Speaker, for these and other reasons, I and in the last two budgets, the President and have been averted had these women had ac- urge our colleagues to vote against the un- Congress have seen fit to increase funding for cess to basic health services. wise, counterproductive, and ultimately de- structive cuts in our Nation's foreign assist- population assistance, believing strongly that Contrary to what Mr. SMITH and other pro- population funding is one of the most cost ef- ponents of this amendment will argue, this is ance budget contained in this bill. These pro- fective and important uses of our foreign aid not about abortionÐit is about family planning, grams work. Combating rapid population dollars. In fact, I recently submitted a letter to and the fact that this amendment will cut pop- growth, enhancing maternal health, insuring child survival, reducing the spread of disease, the gentleman from Alabama [Mr. CALLAHAN] ulation assistance funding to its lowest level in providing basic education, and improving agri- with the signatures over 100 of our col- 25 years, when adjusted for inflation. The fact culture and sustainable development are some leagues, urging the committee to fund popu- remains that U.S. funds do not pay for abor- of the most humane, farsighted and economi- lation programs at the level requested by the tions. For over 20 years, under the Helms cally effective efforts we can undertake. Main- PresidentÐ$635 million. amendment to the Foreign Assistance Act, taining adequate funding for these programs Instead, the Appropriations Committee has Federal law has prohibited any U.S. funds now will save many times this expense in fu- recommended reducing population funding to from being used for abortions, or to promote ture U.S. foreign assistance, will greatly re- roughly $300 million, and eliminating the popu- abortion. H.R. 1868 retains this prohibition. duce human suffering, will promote global lation and development account all together. The proponents of this amendment also These significant cuts in population pro- claim that it simply restores anti-abortion poli- peace and security and will promote and pro- tect U.S. foreign policy interests. grams will have devastating and irreversible cies of the Reagan administration. But it goes I urge a ``no'' vote on the rule, and on the consequences for the future course of fertility further than the so-called Mexico City policy, bill. decline in developing countries. The effects of which prohibited funding to organizations that Mr. GOSS. Mr. Speaker, may I ask a 50 percent population funding reduction will perform abortion with private funds. It also tar- for an accounting on the time? be felt most immediately in the health and gets the political messages of family planning The SPEAKER pro tempore. The gen- well-being of women and children in develop- providers. It would prevent organizations that tleman from Florida [Mr. GOSS] has 16 ing countries, but will also be felt by the larger receive U.S. population assistance from using minutes remaining, and the gentleman global community. Without these funds, there their non-U.S. funds in efforts to influence their from Ohio [Mr. HALL] has 15 minutes will likely be an estimated 1.6 million un- own country's abortion law, either for or remaining. wanted pregnancies per year, resulting in 1.2 against. Thus, although it is already illegal to Mr. GOSS. Mr. Speaker, I yield 3 million unwanted births, more than 350,000 use U.S. funds to lobby, groups on both sides minutes to the distinguished gen- abortions, and 8,000 maternal deaths. of the abortion issue would be penalized for tleman from the Commonwealth of In addition to these sharp reductions in pop- exercising their rights to express their views Pennsylvania [Mr. GEKAS]. ulation assistance, related programs for mater- on abortion. (Mr. GEKAS asked and was given nal health, disease prevention, general edu- Finally, Mr. SMITH, in past debates, has mis- permission to revise and extend his re- cation, agricultural improvement and rural de- stated the role and involvement of the United marks.) velopment will devastated by the cuts in this Nations Population Fund [UNFPA] in China. Mr. GEKAS. Mr. Speaker, I appre- bill. Although the Appropriations Committee No one disagrees that the coercive Chinese ciate the yielding of time, because I June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6239 want to rise in support of the rule that rescissions bill. All members of the gentleman from Pennsylvania [Mr. is pending, largely because it will be Committee on Rules voted for it. Most GEKAS] mentioned, the fact that we are accommodating an amendment to be of America wants it. It is our best aiding a country that is committing offered by the gentleman from Illinois available tool now to make sure that genocide against its Kurdish popu- [Mr. PORTER] at a later point in the money cut from these appropriations lation. Mr. SMITH and Mr. WOLF and I proceedings, which will seek to modify bills goes to deficit reduction. are joining together to offer an amend- the behavior of the Turkish Govern- Just yesterday we passed the mili- ment that will cut aid to Turkey, who ment vis-a-vis the Kurds and the record tary construction appropriations bill. is committing genocide against its of human rights violations that has be- We cut over $20 million from that bill Kurdish population, is preventing our come replete over the last few years. in floor amendments. None of that aid from reaching our allies in Arme- I would not pay so much attention to money will go to deficit reduction. All nia, and is continuing its 21 year occu- it as an individual Member of the Con- of it will be reprogrammed. That is pation of the Island of Cyprus and its gress as I normally would, except that wrong. intransigence in helping to reunite this record, attached to the Turkish The rule is wrong too. The lockbox that island as a country. behavior with the Kurds, is only but should be in order. The lockbox should So I have the greatest respect for the the latest of other reported, docu- be in order under the rule on every ap- gentleman from New Jersey [Mr. mented, and severe human violations propriations bill, and should be passed, SMITH]. But, very frankly, his amend- perpetrated by the Turkish Govern- as most Members of this House wanted ment does not belong on this piece of ment previously, and next to the cur- it to as an amendment to the budget legislation. For that reason, I would rent government, in Cyprus, for in- act. urge the Members to send this rule stance. There we are in the untenable So vote ‘‘no’’ on this rule and vote back to the Committee on Rules for re- position of furnishing aid to a govern- for the bipartisan Brewster-Harman writing, and will have to oppose the ment which turns American weapons, deficit lockbox. rule. as it were, on to the Cypriot popu- Mr. GOSS. Mr. Speaker, I yield 2 Mr. HALL of Ohio. Mr. Speaker, I lation, and commits human rights vio- minutes to the distinguished gen- yield 3 minutes to the gentleman from lations there using American money tleman from Illinois [Mr. PORTER]. New Mexico [Mr. RICHARDSON]. and guns. (Mr. PORTER asked and was given (Mr. RICHARDSON asked and was Now, the United Nations took note of permission to revise and extend his re- given permission to revise and extend that. The international community, marks.) his remarks.) even on the floor of the Congress, there Mr. PORTER. Mr. Speaker, I thank was commentary after commentary my friend and colleague for yielding. Mr. RICHARDSON. Mr. Speaker, I and action after action taken at those Mr. Speaker, I reluctantly oppose the would like to thank the majority and particular times. But now there is just rule we are considering for the Foreign minority of the Committee on Rules too much. We cannot tolerate this kind Operations bill today. I have great re- for allowing three amendments that I of behavior anymore. spect for the chairman of our Commit- will be offering on a bipartisan basis. I The Kurds’ situation allows us to tee on rules and great respect for the also wish to thank Mr. CALLAHAN and begin to modify the behavior of Turkey chairman of the appropriations sub- Mr. OBEY and their staffs for their as- with respect to that segment of the committee and for the good work that sistance in helping me deal with these world. I have heard the gentleman from he has done to try to find common amendments. Florida, who wants to modify behavior ground in the bill, and I support the Mr. Speaker, the open rule that we in Haiti through this amendment proc- bill. But I cannot support a rule that will be debating allows an open debate ess. The gentleman from Florida [Mr. will waive points of order against an on the harsh realities that exist today GOSS] seeks to conduct or help conduct amendment that is pure authorizing in Burma. My most recent trip to that foreign policy with respect to Haiti language and that will effectively gut country was extremely disappointing with the elections that are pending our country’s bilateral and multilat- on account of the Burmese regime’s en- there. The gentleman from New Jersey eral population programs. trenchment on human rights and de- [Mr. MENENDEZ] seeks to modify, along Mr. Speaker, the Smith amendment mocratization efforts. As a result of with the help of the gentleman from has no place in this bill. I am, frankly, this entrenchment I will be offering Florida, the issue of Russia and Cuba very surprised it was made in order two amendments with the gentleman and a nuclear reactor. under the rule. A nearly identical from California [Mr. ROHRABACHER] in- I ask those individuals and all the re- Smith amendment was adopted during tended to further isolate this repres- maining Members on the floor of the consideration of the foreign aid author- sive regime by cutting all House and in their offices to pay atten- izing bill earlier this year. While I dis- counternarcotics assistance and pro- tion to this particular vital issue on agreed with the amendment then and viding additional funds for the refugee the Porter amendment, which can crisis along both sides of the Thai- bring about a better future for the spoke out against it, I did not question the Member’s right to offer it at the Burma border. Kurds and to begin to curb the human Burma’s ruling military government rights violations perpetrated for dec- time. That was the appropriate bill and the correct forum for that debate. has established itself as unquestion- ades now by the Government of Tur- ably the heavyweight champion of re- key. But now, however, the Committee on pressive governments by violating Mr. HALL of Ohio. Mr. Speaker, I Rules has given extraordinary consid- human rights and detaining the leader yield 2 minutes to the gentlewoman eration to those who oppose voluntary of Burma’s Democrat movement, Aung from California [Ms. HARMAN]. family planning by making this (Ms. HARMAN asked and was given amendment in order on a totally inap- San Suu Kyi, for the past 6 years. She permission to revise and extend her re- propriate bill. This is, in my judgment, courageously is in house arrest without marks.) not fair, since the bill as reported con- any kind of prospects for being re- Ms. HARMAN. Mr. Speaker, we have tains no funds whatsoever for abortion, leased. Recent efforts to obtain visas heard a lot of talk about the careful no funds whatsoever for China. The by the authors of this amendment have tailoring in this rule for various inter- Smith amendment confirms this, but either been denied or granted only ests, but we have not heard a word goes further to gut the voluntary fa- after preconditions were met. Leading about the vastly popular deficit reduc- miliar family planning programs in the opposition members of the National tion lockbox. This is the third appro- bill, harming millions of couples League for Democracy in Burma were priations bill we are considering, and around the world. arrested after I met with them last the third time the Committee on Rules Mr. Speaker, I have the highest re- month. has not make the lockbox in order. For spect for the gentleman from New Jer- Perhaps as the most egregious of all that reason, I rise in opposition to this sey, who is my friend and colleague. human rights violations, Dr. Michael rule. And he and I and the gentleman from Aris, Aung San Suu Kyi’s husband, has The lockbox is widely popular here; Virginia [Mr. WOLF] in fact are joining been denied access to his imprisoned 418 votes to 5 passed it as part of the together on the amendment that the wife. Just last week the International H 6240 CONGRESSIONAL RECORD — HOUSE June 22, 1995 Committee for the Red Cross aban- plants in Eastern Europe have already On the positive side, Mr. Speaker, I doned efforts to work with the Bur- suffered accidents. In fact, four such wish to commend the Foreign Ops Sub- mese Government because of unaccept- plants were shut down by the German committee, and in particular the gen- able conditions imposed by the SLORC Government after reunification of that tleman from Illinois [Mr. PORTER], for on the activities of the Red Cross. So, country. the inclusion in the legislation of lan- after permitting the Red Cross to come Mr. Speaker, we cannot allow this guage incorporating the Humanitarian in to inspect prisons in Burma, they type of threat to the security of the Aid Corridor Act. This provision would were thrown out. United States to be present just a few deny U.S. assistance to countries What we have here is a case of a pol- hundred miles from our shores, espe- which block the shipment of American icy that right now is moving in the di- cially in the hands of a totalitarian ty- humanitarian aid to other countries. rection of dealing with the heroin cri- rant like Fidel Castro, who has no re- This has been the case with the Repub- sis. That is important. But it does not spect for the dignity of human life. lic of Turkey, which has maintained its mean that this administration or any b 1630 own blockade of Armenia while collect- administration should reward a repres- ing generous amounts of United States We must pressure the Government of sive regime with counternarcotics as- aid. Mr. Speaker, I think common Russia to stop helping the Castro re- sistance. The amendment that I will be sense and decency would argue that gime in finishing construction of this offering with the support of many countries that block U.S. aid to other nuclear plant. There are several Members of the majority and minority recipients should not themselves bene- amendments presented in this bill to hopefully will make sure that this does fit from American largesse. I commend accomplish this. Do our constituents not happen. want their tax dollars to build a the committee for including this lan- Mr. Speaker, let me conclude with a guage, which was also part of the discussion of the refugee crisis from Chernobyl-style nuclear facility just miles from the coast of the United American Overseas Interests Act, and both sides of the Thai-Burma border States? Do our constituents want an would urge Members to oppose any ef- that is worsening. The launching of an unsafe nuclear reactor operated by one forts to remove this provision. offensive against the Karen refugees of the last Communist strongholds I also understand the gentleman from this spring resulted in an outflow of an being built with U.S. funds? I think the Illinois [Mr. PORTER] has also an estimated additional 20,000 refugees to answer clearly is ‘‘no.’’ amendment to limit assistance to Tur- Thailand, bringing the population The Committee on Rules was correct key in part linked to its blockade of there to over 90,000. in granting the waiver, and I urge a Armenia. I would also urge support of Mr. GOSS. Mr. Speaker, I yield 3 ‘‘yes’’ vote on this rule. this amendment. minutes to my distinguished colleague Mr. HALL of Ohio. Mr. Speaker, I Mr. HALL of Ohio. Mr. Speaker, I and friend, the gentlewoman from the yield 2 minutes to the gentleman from have no further requests for time, and State of Florida, Ms. ILEANA ROS- New Jersey [Mr. PALLONE]. I yield back the balance of my time. LEHTINEN. (Mr. PALLONE asked and was given Mr. GOSS. Mr. Speaker, I yield my- Ms. ROS-LEHTINEN. Mr. Speaker, I permission to revise and extend his re- self such time as I may consume. would like to thank the gentleman for marks.) First of all, I would point out that yielding. Mr. PALLONE. Mr. Speaker, I rise to some of the discussion has been talked Mr. Speaker, first I would like to express concern about a provision that about with regard to Haiti and Turkey thank the gentleman from Alabama, has been included in this bill which and so forth. We are talking about cut- Chairman CALLAHAN, and especially would effectively change existing law ting amendments, and we do have an Bill Englee from the chairman’s staff, through the appropriations process. open rule. So that is in the area of the for their great help on this very impor- The provision, which was put in the spirit of things that are traditional and tant bill. The Menendez amendment bill in the Subcommittee on Foreign available to any Member under this which was granted a waiver from the Operations, would severely weaken sec- type of legislation, as we all know, Committee on Rules is a correct one tion 907 of the Freedom Support Act of nothing really extraordinary there. and not a narrow interest amendment, 1992. This provision bans direct United And the fact that we have an open rule because I believe that we must use all States Government assistance to the on an appropriations bill, I think, is of the instruments at our disposal to Government of Azerbaijan until Azer- very important for the deliberative pressure the Russian Government to baijan lifts its blockade of neighboring process, something we promised we immediately halt their intentions of Armenia. This law made good sense would do as often as possible. aiding the Communist regime of Fidel when it was adopted 3 years ago in the With regard to the concern of the Castro in finishing construction of the wake of the breakup of the Soviet gentleman from Illinois [Mr. PORTER], Juragua nuclear powerplant in Cienfue- Union. It is morally justified and in on the Smith amendment, indeed we gos, Cuba. If completed, this nuclear U.S. interests, It should not be gutted have not followed exactly the authoriz- plant will pose a serious threat to the through the appropriations process. ing language because we did pass an safety of the United States, Central Mr. Speaker, the Azerbaijan blockade authorizing bill and that is what we America, and the Caribbean. of Armenia has continued for 5 years, want to follow. Construction of the Juragua nuclear cutting off the transport of food, fuel, With regard to the concern of the plant was halted in 1992 after the Cas- medicine, and other commodities. This gentlewoman from California [Ms. tro regime was not able to obtain the ruthless blockade has caused a humani- HARMAN], about the lockbox, she needs foreign exchange necessary to finish tarian crisis that has required the to know that we are dealing with that construction. However, this past May, United States to send emergency as- issue. We have planned debate and Russia and Cuba announced their in- sistance to Armenia. At a time when hearings and so forth, and she has been tention to finish construction of this Armenia is trying to move forward advised that she will be invited to par- plant. with major market reforms and inte- ticipate. Completion of this nuclear power- grating its economy with the West, the So there is process in the legislative plant could constitute the introduction Azerbaijan stranglehold has forced a mill. It just does not happen to be of a real and permanent threat to the shutdown of Armenian industry, ready yet for the appropriations round health and safety of our hemisphere. caused massive unemployment, and ob- that we are in now. Many of us wish it Numerous experts, including former structed rebuilding of areas damaged were. I hope we get there soon. We are technicians at the plant now living in by the 1988 earthquake. Armenian chil- trying. the United States, have denounced its dren have had to do without schooling, Finally, I think a very important inadequate construction, as well as in- and hospitals have been unable to care point on this rule, I do not think any- ferior equipment that was used in its for the sick and the dying. There is no body has really suggested this is not construction. Moreover, the General justification for this type of behavior. fair rule, but I would point out that Accounting Office reported allegations American taxpayers should not be last year the Committee on Rules, this in 1992 that the Juragua nuclear plant asked to reward or appease these ac- was under the previous majority, the was unsafe, and similar Soviet style tions by Azerbaijan. Committee on Rules made in order June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6241 only eight amendments on this appro- McInnis Riggs Stump LaFalce Mica Seastrand priations bill, five by Republicans and McIntosh Roberts Talent LaTourette Moakley Serrano McKeon Rogers Tauzin Laughlin Parker Stupak three by Democrats. We thanked them Menendez Rohrabacher Taylor (MS) Levin Payne (VA) Tate for those five. The rule waived all Metcalf Ros-Lehtinen Taylor (NC) McDade Pryce Torres points of order against all eight amend- Meyers Roth Thomas McHugh Rose Miller (FL) Roukema ments. By our count, five of the eight Thornberry Molinari Royce Tiahrt b 1656 involved violations of clause 2 of rule Moorhead Salmon Torkildsen Mr. BROWN of California and Mr. XXI. So if your concern is that, we are Morella Sanford Torricelli Myers Saxton Upton VOLKMER changed their vote for definitely making progress and doing a Myrick Scarborough Vucanovich ‘‘yea’’ to ‘‘nay.’’ better job of getting our authorizers Nethercutt Schaefer Waldholtz Neumann Schiff So the previous question was ordered. and appropriators in sync. I think that Walker Ney Sensenbrenner The result of the vote was announced is important. I think it makes for a Walsh Norwood Shadegg as above recorded. better product and an easier vote. Nussle Shaw Wamp Mr. Speaker, I yield back the balance Oxley Shays Watts (OK) The SPEAKER pro tempore (Mr. of my time, and I move the previous Packard Shuster Weldon (FL) CAMP). The question is on the resolu- Paxon Skeen Weldon (PA) tion. question on the resolution. Petri Smith (MI) Weller The SPEAKER pro tempore (Mr. Pombo Smith (NJ) White The question was taken; and the CAMP). The question is on ordering the Porter Smith (TX) Whitfield Speaker pro tempore announced that previous question. Portman Smith (WA) Wicker the ayes appeared to have it. Quillen Solomon Wolf The question was taken; and the Quinn Souder Young (AK) RECORDED VOTE Speaker pro tempore announced that Radanovich Spence Young (FL) Mr. OBEY. Mr. Speaker, I demand a the ayes appeared to have it. Ramstad Stearns Zeliff recorded vote. Regula Stockman Zimmer Mr. OBEY. Mr. Speaker, I object to A recorded vote was ordered. the vote on the ground that a quorum NAYS—178 The SPEAKER pro tempore. This is not present and make the point of Abercrombie Gordon Orton will be a 5-minute vote. order that a quorum is not present. Andrews Green Owens The vote was taken by electronic de- Baesler Gutierrez The SPEAKER pro tempore. Evi- Pallone vice, and there were—ayes 217, noes 175, dently a quorum is not present. Baldacci Hall (OH) Pastor Barcia Hamilton Payne (NJ) not voting 42, as follows: The Sergeant at Arms will notify ab- Barrett (WI) Harman Pelosi [Roll No. 419] sent Members. Becerra Hastings (FL) Peterson (FL) Pursuant to the provisions of clause 5 Beilenson Hayes Peterson (MN) AYES—217 Bentsen Hefner of rule XV, the Chair announces that Pickett Allard Everett Lightfoot Berman Hilliard Pomeroy Archer Ewing Linder Bevill Hinchey he will reduce to a minimum of 5 min- Poshard Armey Fawell Livingston Bishop Holden utes the period of time within which a Rahall Bachus Fields (TX) LoBiondo Bonior Hoyer Rangel Baker (CA) Flanagan Longley vote by electronic device, if ordered, Borski Jackson-Lee Reed Baker (LA) Foley Lucas will be taken on the question of adop- Boucher Jacobs Reynolds Ballenger Forbes Manzullo tion of the resolution. Brewster Johnson (SD) Barr Fowler Martini Browder Johnson, E.B. Richardson The vote was taken by electronic de- Rivers Barrett (NE) Fox McCollum Brown (CA) Johnston Bartlett Franks (CT) McCrery vice, and there were—yeas 221, nays Brown (FL) Kanjorski Roemer Roybal-Allard Bass Franks (NJ) McInnis 178, not voting 35, as follows: Brown (OH) Kaptur Bateman Frelinghuysen McIntosh Rush Bryant (TX) Kennedy (MA) Bereuter Frisa McKeon [Roll No. 418] Sabo Cardin Kennedy (RI) Bilirakis Funderburk Menendez Sanders YEAS—221 Chapman Kennelly Bliley Gallegly Metcalf Allard Cubin Hall (TX) Clay Kildee Sawyer Blute Ganske Meyers Archer Cunningham Hancock Clement Kleczka Schroeder Boehlert Gekas Miller (FL) Armey Davis Hastings (WA) Clyburn Klink Schumer Boehner Gilchrest Molinari Bachus Deal Hayworth Coleman Lantos Scott Bonilla Gillmor Moorhead Baker (CA) DeLay Hefley Collins (IL) Lewis (GA) Sisisky Bono Gilman Murtha Baker (LA) Deutsch Heineman Collins (MI) Lincoln Skaggs Brownback Goodlatte Myers Ballenger Diaz-Balart Herger Condit Lipinski Skelton Bryant (TN) Goodling Myrick Barr Dickey Hilleary Conyers Lofgren Slaughter Bunn Goss Nethercutt Barrett (NE) Doolittle Hobson Costello Lowey Spratt Bunning Green Neumann Bartlett Dornan Hoekstra Coyne Luther Stark Burr Greenwood Ney Barton Dreier Hoke Cramer Maloney Stenholm Buyer Gunderson Norwood Bass Duncan Horn Danner Manton Stokes Callahan Gutknecht Nussle Bateman Dunn Hostettler de la Garza Markey Studds Calvert Hall (OH) Oxley Bereuter Ehlers Hunter DeLauro Mascara Tanner Camp Hancock Packard Bilirakis Ehrlich Hutchinson Dellums Matsui Tejeda Canady Hastings (WA) Paxon Dicks McCarthy Bliley Emerson Hyde Thompson Castle Hayworth Petri Dingell McDermott Blute English Inglis Thornton Chabot Hefley Pombo Dixon McHale Boehlert Ensign Johnson (CT) Thurman Chambliss Heineman Portman Doggett McKinney Boehner Everett Johnson, Sam Towns Chenoweth Herger Quillen Doyle McNulty Bonilla Ewing Jones Traficant Christensen Hilleary Quinn Bono Fawell Kasich Durbin Meehan Clinger Hobson Radanovich Edwards Meek Tucker Brownback Fields (TX) Kelly Vela´ zquez Coble Hoekstra Ramstad Bryant (TN) Flanagan Kim Engel Mfume Coburn Hoke Regula Eshoo Miller (CA) Vento Bunn Foley King Visclosky Collins (GA) Horn Richardson Bunning Forbes Klug Evans Mineta Combest Hostettler Riggs Farr Minge Volkmer Burr Ford Knollenberg Ward Cooley Hunter Roberts Buyer Fowler Kolbe Fattah Mink Cox Hutchinson Rogers Fazio Mollohan Waters Callahan Fox LaHood Watt (NC) Crapo Hyde Rohrabacher Calvert Franks (CT) Largent Fields (LA) Montgomery Cremeans Inglis Ros-Lehtinen Waxman Camp Franks (NJ) Latham Filner Moran Cubin Jacobs Roth Williams Canady Frelinghuysen Lazio Flake Murtha Cunningham Johnson, Sam Roukema Wilson Castle Frisa Leach Foglietta Nadler Davis Jones Royce Wise Chabot Funderburk Lewis (CA) Frank (MA) Neal Deal Kasich Salmon Woolsey Chambliss Gallegly Lewis (KY) Furse Oberstar DeLay Kelly Sanford Chenoweth Ganske Lightfoot Gephardt Obey Wyden Deutsch Kim Saxton Christensen Gekas Linder Gibbons Olver Wynn Diaz-Balart King Scarborough Clinger Gilchrest Livingston Gonzalez Ortiz Yates Dickey Klug Schaefer Coble Gillmor LoBiondo Doolittle Knollenberg Schiff Coburn Gilman Longley NOT VOTING—35 Dreier Kolbe Schumer Collins (GA) Goodlatte Lucas Ackerman DeFazio Hansen Dunn LaHood Sensenbrenner Combest Goodling Manzullo Bilbray Dooley Hastert Ehlers Latham Shadegg Cooley Goss Martinez Burton Frost Houghton Ehrlich Lazio Shaw Cox Greenwood Martini Chrysler Gejdenson Istook Emerson Leach Shuster Crapo Gunderson McCollum Clayton Geren Jefferson English Lewis (CA) Sisisky Cremeans Gutknecht McCrery Crane Graham Kingston Ensign Lewis (KY) Skeen H 6242 CONGRESSIONAL RECORD — HOUSE June 22, 1995 Smith (MI) Thornberry Weldon (FL) A motion to reconsider was laid on Mr. GEPHARDT. The Committee on Smith (NJ) Tiahrt Weldon (PA) the table. Rules is scheduled to meet on Tuesday Smith (TX) Torkildsen Weller Smith (WA) Torricelli White f to consider a rule regarding the con- Solomon Traficant Whitfield stitutional amendment on the flag. Souder Upton Wicker LEGISLATIVE PROGRAM Could the gentleman or the distin- Spence Vento Wolf (Mr. GEPHARDT asked and was guished chairman of the Committee on Stearns Vucanovich Young (AK) Stockman Waldholtz Young (FL) given permission to address the House Rules advise Members what rule is ex- Stump Walker Zeliff for 1 minute.) pected for that resolution? Talent Walsh Zimmer Taylor (NC) Wamp Mr. GEPHARDT. Mr. Speaker, I yield Mr. SOLOMON. Mr. Speaker, will the Thomas Watts (OK) to the distinguished majority leader to gentleman yield? inquire about the schedule for next Mr. GEPHARDT. I yield to the gen- NOES—175 week. tleman from New York, the distin- Abercrombie Gibbons Ortiz Mr. ARMEY. I thank the gentleman Andrews Gonzalez Orton guished chairman of the Committee on Baesler Gordon Owens for yielding. Rules. Baldacci Gutierrez Pallone Mr. Speaker, on Monday, June 26, the Mr. SOLOMON. I would say to the Barcia Hall (TX) Payne (NJ) House will meet in pro forma session. minority leader that the Committee on Barrett (WI) Hamilton Pelosi There will be no recorded votes on Becerra Harman Rules will be meeting, I believe, at 2 Peterson (FL) Monday. Beilenson Hastings (FL) Peterson (MN) p.m. on Tuesday afternoon. The Inte- Bentsen Hayes Pickett On Tuesday, the House will meet at rior appropriations bill has been pulled Berman Hefner Pomeroy 10:30 a.m. for morning hour and 12 noon Bevill Hilliard from that meeting and we will only Porter Bishop Hinchey for legislative business. We plan to consider the constitutional amendment Poshard Bonior Holden consider one bill under suspension of Rahall that would allow States to ban the Borski Hoyer Rangel the rules, H.R. 1565, legislation extend- physical desecration of the American Boucher Jackson-Lee ing health care to veterans who have Brewster Johnson (CT) Reed flag. It certainly will come to the floor Browder Johnson (SD) Reynolds been exposed to Agent Orange. We will under a rule and probably with 1 hour Brown (CA) Johnson, E.B. Rivers then continue consideration of H.R. of debate and some time for a sub- Brown (FL) Johnston Roemer 1868, the fiscal year 1996 foreign oper- Brown (OH) Kanjorski Roybal-Allard stitute by those that might be in oppo- Bryant (TX) Kaptur Rush ations appropriations bill. sition to the bill. We are in negotiation Cardin Kennedy (RI) Sabo On Wednesday, the House will meet now as to just exactly how the rule Chapman Kennelly Sanders at 10 a.m. to take up House Joint Reso- would be brought to the floor. Clay Kildee Sawyer lution 79, a resolution proposing a con- Clement Klink Schroeder Mr. GEPHARDT. I thank the gen- Clyburn Lantos Scott stitutional amendment prohibiting tleman. Coleman Lewis (GA) Shays desecration of the U.S. flag, subject to A couple of further questions. Could Collins (IL) Lincoln Skaggs a rule. We then plan to spend the bal- the gentleman advise Members as to Collins (MI) Lipinski Skelton ance of the week working on appropria- Condit Lofgren when he expects the House to consider Slaughter tions bills. We will complete the for- Conyers Lowey Spratt the budget conference report? I think Costello Luther Stark eign operations legislation and, time he answered that and said it might be Coyne Maloney Stenholm permitting, consider the fiscal year Cramer Manton Stokes coming forward next week. I assume at Danner Markey 1996 energy and water, Interior, and this point you are not sure of that, but Studds Agriculture appropriations bills. On de la Garza Martinez Tanner it could happen? DeLauro Mascara Tauzin Thursday and Friday, the House will Dellums Matsui Mr. ARMEY. If the gentleman will Taylor (MS) meet at 10 a.m. for legislative business. Dicks McCarthy Tejeda yield further, we are optimistic and we Dingell McDermott Mr. Speaker, it is our hope to have Thompson would hope if everything comes to- Dixon McHale Members on their way home to their Thornton Doggett McKinney gether that we might be able to do that Thurman families and their districts by no later Duncan McNulty on Thursday. Possibly Friday morning. Towns than 3 p.m. on Friday. Durbin Meehan However it works, we will do our ut- Edwards Meek Tucker Mr. GEPHARDT. If the gentleman ´ most to maintain our commitment to Engel Mfume Velazquez will answer a question or two here. I Visclosky Eshoo Miller (CA) wonder if the gentleman can advise the 3 p.m. departure for the district Evans Mineta Volkmer work period. But I should expect it Ward Members how late he expects the House Farr Minge would be Thursday or Friday morning. Fattah Mink Waters to work on Tuesday, Wednesday, and Fazio Mollohan Watt (NC) Thursday. Mr. GEPHARDT. Finally, at the end Waxman Fields (LA) Montgomery Mr. ARMEY. If the gentleman will of the week, we begin the Fourth of Filner Moran Williams July recess. Flake Morella Wilson yield further, I think the Members Foglietta Nadler Wise should be prepared to work very late Could the gentleman advise Members Ford Neal Woolsey on all three of those evenings, Tuesday, whether he expects votes on Monday, Frank (MA) Oberstar Wyden July 10? Furse Obey Wynn Wednesday, and Thursday. Gephardt Olver Yates I would point out that we are pre- Mr. ARMEY. If the gentleman will pared and hopeful that we can during yield further, I believe we would prob- NOT VOTING—42 next week deal with a budget con- ably need to be prepared to have votes Ackerman Graham McDade ference report, perhaps the Medicare by, say, 5 p.m. on Monday, July 10. We Barton Hansen McHugh will try to examine that and make an Bilbray Hastert Mica select report, and hopefully we would Burton Houghton Moakley be able to do something on a rescis- announcement later next week if there Chrysler Istook Parker sions or supplemental assistance bill. is any change from that. Clayton Jefferson Pastor Mr. GEPHARDT. I thank the gen- Crane Kennedy (MA) Payne (VA) Mr. GEPHARDT. On that score, on DeFazio Kingston Pryce an earlier version of the schedule pro- tleman. Dooley Kleczka Rose vided by the majority, the rescissions Mr. Speaker, I would just end with Dornan LaFalce Seastrand bill was listed. It is not on the schedule one statement for consideration. I Doyle Largent Serrano Frost LaTourette Stupak that you just outlined. You just men- know the gentleman is trying, as we Gejdenson Laughlin Tate tioned it. I assume that you are think- said this morning, to have a family Geren Levin Torres ing it might come forward as well next friendly situation here and that was part of the reason I assume we had b 1705 week? Mr. ARMEY. If the gentleman will problems with cutting off times on Mr. HALL of Texas and Mr. NADLER yield further, we are still hopeful to votes. We appreciate that. changed their vote from ‘‘aye’’ to ‘‘no.’’ have some continued discussions with I would just hope that if it can be So the resolution was agreed to. the White House, but I believe that it worked out next week if there is one of The result of the vote was announced is very likely that we will be able to do the nights next week that could not be as above recorded. that next week. extra late, that might be helpful to June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6243 people. I realize you are trying to jug- committee on Foreign Operations, Ex- I am not sure that many American’s gle a lot of different bills and con- port Financing and Related Programs. are aware that our public health offi- ference reports. But to the extent we This newly assembled little group got cials are moving towards the eradi- could work to make that happen, I am together only a few months ago, they cation of polio. Rotary International sure Members would appreciate that. are very professional. I want to tell has been the sparkplug of this effort, Mr. ARMEY. I do appreciate that. I you, it is a pleasure to work with them, and they have brought that to our at- do think the Members ought to cer- particularly Charlie Flickner, Bill tention. tainly make sure they make good ar- Inglee, John Shank, Lori Maes, and our In title III of the bill we have tried to rangements for Monday night next CRS detail, Larry Nowels, and also to go along with as much of the Presi- week. work with Terry Peel on the minority dent’s request for military assistance Mr. GEPHARDT. I thank the gen- staff as well as Nancy Tippins on my as we were able to afford. We have in- tleman. own staff. cluded the economic support fund and f b the military finance moneys that are 1715 sufficient to fulfill the Camp David ac- GENERAL LEAVE They were all very professional, and cord needs. We also went along with Mr. CALLAHAN. Mr. Speaker, I ask without their professional help we the President’s Warsaw initiative to unanimous consent that all Members would not be here today with this bill. help new democracies in Central Eu- may have 5 legislative days within Mr. Chairman, as far as I know, each rope contribute to European security. which to revise and extend their re- and every member of the subcommittee The final title, multilateral eco- marks on the bill, H.R. 1868, and that I supported bringing this bill to the nomic assistance, has had to bear the be able to insert tabular and extra- House floor and each and every one had bulk of the reductions we made. That neous material. to go along with things they did not is not because our subcommittee does The SPEAKER pro tempore (Mr. want. This is what legislation in the not appreciate what many of these CAMP). Is there objection to the request Congress is all about, compromise. banks and agencies do, but we simply of the gentleman from Alabama? I want to thank our chairman, the had a higher priority on bilateral pro- There was no objection. gentleman from Louisiana [Mr. LIVING- grams undertaken by our own Govern- f STON], for all his help at the early stage ment. I would note that funding for of the process. And I appreciate the ef- UNICEF has been moved from title IV FOREIGN OPERATIONS, EXPORT forts of my predecessor, the gentleman to the Child Survival and Disease Pro- FINANCING, AND RELATED PRO- from Wisconsin [Mr. OBEY], and the grams Account in title II, at the cur- GRAMS APPROPRIATIONS ACT, ranking member of our subcommittee, rent level of $100 million. 1996 the gentleman from Texas [Mr. WIL- The subcommittee has removed The SPEAKER pro tempore. Pursu- SON], for their patience, understanding, many of the general provisions from ant to House Resolution 170 and rule and guidance. Everything we are doing title V. Some of them have been picked XXIII, the Chair declares the House in is building on the record that the gen- up in the authorization bill. Others the Committee of the Whole House on tleman from Louisiana [Mr. LIVING- were no longer needed. Many of the the State of the Union for the consider- STON], made in the last Congress, along amendments that have been filed will ation of the bill, H.R. 1868. with the former chairman, the gen- occur during consideration of the gen- The Chair designates the gentleman tleman from Wisconsin [Mr. OBEY]. eral provisions title. from Utah [Mr. HANSEN] as Chairman Mr. Chairman, now let me simply ad- Let me close by going over a few of of the Committee of the Whole, and re- dress the contents of this bill. It is a the numbers. The dollar levels that the quests the gentleman from Ohio [Mr. foreign aid bill for sure, but it is more House provides in this bill, history in- BOEHNER] to assume the chair tempo- than that. It is the instrument for this dicates, will be very close to what the rarily. President, and any future President, to final, enacted numbers are. work out foreign problems with more This bill is less than $12 billion in b 1714 than talk but less than military force. budget authority. That is $1.5 billion IN THE COMMITTEE OF THE WHOLE If Members find time to look at our less than the current year, and almost Accordingly, the House resolved it- committee report this weekend, I urge $10 billion less than the level of a dec- self into the Committee of the Whole them to take a close look at the gen- ade ago. It is the lowest level in a dec- House on the State of the Union for the eral introduction, beginning on page 3. ade. consideration of the bill (H.R. 1868) Those pages express better than I can At $11.99 billion, this bill is $2.8 bil- making appropriations for foreign op- this afternoon what this bill is about lion less than the President’s request, a erations, export financing, and related and why it is necessary. reduction of 19 percent. that may be programs for the fiscal year ending It is the instrument for American the largest reduction in history. We September 30, 1996, and for other pur- businesses and private groups to help know it is the largest reduction within poses, with Mr. BOEHNER, Chairman pro less fortunate nations develop eco- the last two decades. tempore, in the chair. nomically. The first items in this bill, Finally, this bill is under the con- The Clerk read the title of the bill. in title I, are for export and investment gressional budget. In fact, it is over The CHAIRMAN pro tempore. Pursu- assistance, and they are a priority for $200 million under our subcommittee ant to the rule, the bill is considerd as this committee this year. The best way allocation. having been read the first time. to demonstrate a market economy is to Mr. Chairman, this is a good bill. We Under the rule, the gentleman from do it, and that is what our businesses have tried to come up with a fair bill Alabama [Mr. CALLAHAN] will be recog- and investors enable others to do: learn and we worked hard to balance the pri- nized for 30 minutes, and the gen- about business by buying, selling, orities of the new Republican majority tleman from Texas [Mr. WILSON] will building, and working with American and our veteran Democratic Members. be recognized for 30 minutes. capitalists. I think we have accomplished what we The Chair recognizes the gentleman Because of the budget, we have had set out to do. from Alabama [Mr. CALLAHAN]. to reduce the more traditional types of There will be those who will come to Mr. CALLAHAN. Mr. Chairman, I development assistance, particularly the floor today and next week when we yield myself such time as I may when it is done through the multilat- continue this bill who will want to consume. eral banks. The committee does pro- spend more money on foreign aid, but I (Mr. CALLAHAN asked and was tect two categories of aid: children’s would ask each and every one of them given permission to revise and extend programs and efforts to fight infectious to recognize the message that the his remarks.) diseases. In fact, we recommend a new American people sent to us in Novem- Mr. CALLAHAN. Mr. Chairman, be- account in the Treasury to ensure that ber. They said to cut spending. They fore I address the contents of this ap- children are protected and we continue did not say to cut spending in every propriations bill, let me take a mo- a vigorous fight against diseases that area that we deal in except foreign aid. ment to thank the staff of our Sub- affect both children and adults. They said to cut everything. H 6244 CONGRESSIONAL RECORD — HOUSE June 22, 1995 There will be those that want to in- to go any higher. We cannot go any We believe this direction from the Sub- crease that, but there is no money to higher. committee is a critical first step in our fight increase that. We have given the Presi- Mr. Chairman, I include for the to eradicate polio by the year 2000. This lan- guage is essential to focusing our humani- dent the latitude he needs to have an RECORD: tarian assistance programs on efforts that effective foreign policy. We give him in ROTARY INTERNATIONAL, can be successful in providing important this bill all of the money that we can THE ROTARY FOUNDATION, afford for foreign operations for the Evanston, IL, June 16, 1995. health benefits for the world’s children, while at the same time saving money here in next fiscal year. Hon. SONNY CALLAHAN, So I think we have been fair to the Chairman, Subcommittee on Foreign Oper- the United States. administration. Certainly the minority ations, Committee on Appropriations, U.S. We are encouraged by the Report Language party has been fair in negotiating how House of Representatives, Washington, DC. in the Foreign Operations Subcommittee, we spend this limited amount of money DEAR CHAIRMAN CALLAHAN: I join with the which has demonstrated the broad consensus next year. It is the best that we can do. 1.2 million Rotarians worldwide in thanking on the value of polio eradication. We look So those of you who that are plan- you for your leadership on polio eradication. forward to celebrating the eradication of this We were pleased to find out that the House ning to come forward next week and in- disease in the year 2000. Foreign Operation Appropriations Sub- Sincerely, dicate that you want to spend more, committee included Report Language rec- HERBERT A. PIGMAN, that you want to give the President ommending up to $20,000,000 for targeted General Secretary. more, forget about it. We are not going polio eradication efforts in fiscal year 1996. June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6245 H 6246 CONGRESSIONAL RECORD — HOUSE June 22, 1995 June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6247 H 6248 CONGRESSIONAL RECORD — HOUSE June 22, 1995 June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6249 Mr. Chairman, I reserve the balance not added to the bill which will upset Despite the difficult cuts, we have of my time. the bipartisan balance that we have protected the most vulnerable of those Mr. WILSON. Mr. Chairman, I yield achieved. who rely on us, the young children and myself such time as I may consume. I want to compliment the chairman the victims of disease and disaster. Mr. Chairman, I rise today in support again. I want to compliment the chair- Therefore, I strongly support the de- of the passage of the foreign operations man of the full committee. I certainly cision of the chairman, the gentleman bill. want to compliment the ranking mem- from Alabama [Mr. CALLAHAN] to cre- Although I hope that some funding ber, because everyone stretched their ate a new account called the child sur- adjustments can be made as the bill tolerance to the limit to reach a truly, vival and disease program fund. At $484 moves through the legislative process, truly, bipartisan compromise. I urge million, it slightly increases the spend- I think the bill should be supported Members to stay with the bill as re- ing for protection of young children vigorously in its current form. ported in the House and not to make worldwide and it encourages the ad- As the chairman has said, the com- changes that will endanger this bipar- ministration to fund programs to mittee has recommended a bill of $12 tisan support. eradicate polio and reduce other infec- billion for fiscal year 1996, which is $1.5 Mr. Chairman, I reserve the balance tious diseases, including AIDS. billion, 11 percent, below last year, and of my time. While maintaining support for chil- more importantly, $2.8 billion below Mr. CALLAHAN. Mr. Chairman, I dren and refugees, this bill reduces the the President’s request or 19 percent would like to thank the gentleman old-style government-to-government below the President’s request. I dare from Texas [Mr. WILSON] for his com- foreign aid in favor of market-oriented, say there will not be another appro- ments and I would like to say that I private-sector-driven economic growth. priation bill presented to this House omitted to recognize the gentleman’s Genuine and sustainable development that is that much below the Presi- very able staff person, Kathleen Mur- will be promoted far faster by invest- dent’s budget. phy, who did an outstanding job as ment by real entrepreneurs and ex- Funds are provided in the bill to well. panded trade and capital formation by Mr. Chairman, I yield 4 minutes to meet the administration request for U.S. companies in emerging private the distinguished gentleman from Lou- Camp David, and other commitments sectors around the globe. isiana, [Mr. LIVINGSTON], the chairman in the Middle East including Jordan We have invested in programs that and programs for the West Bank and of the full committee. Mr. LIVINGSTON. Mr. Chairman, I allow private companies to work with for the Gaza Strip. thank the gentleman from Alabama export assistance agencies to make The bill also provides a significant broad-based economic growth a reality [Mr. CALLAHAN], my good friend, the program to help increase U.S. exports able chairman of the subcommittee, in developing free markets. The bill abroad, which is in my opinion one of and rise in support of the fiscal year contains no earmarks, instead provid- the most important characteristics of 1996 foreign operations bill. ing the President with maximum flexi- the bill. The $822 million in export as- First, let me pay special tribute to bility possible to develop foreign policy sistance in the bill will provide for the great gentleman from Alabama without micromanagement. more than $20 billion in guaranteed [Mr. CALLAHAN] the distinguished We could have used this bill to score loans through the Export-Import Bank chairman of the subcommittee. The political points against the President’s and more than $1 billion in assistance gentleman has displayed not only great foreign policy, or raised flowery rhet- through the Overseas Private Invest- leadership, but diplomatic skills wor- oric on controversial issues. We avoid- ment Corporation. thy of Henry Kissinger in shepherding ed pejorative political statements and I would like to say at this point that this bill through the committee. instead provided the President with re- regarding OPIC, the Overseas Private My friends, the gentleman from sources to conduct a global foreign pol- Investment Corporation, that that is Texas [Mr. WILSON] and the gentleman icy letting the numbers speak for one of the very few agencies in the U.S. from Wisconsin [Mr. OBEY], the rank- themselves. Government that pays more back into ing member, also deserve special praise We have accepted the reorganization the Treasury, that remits more to the for their hard work and willingness to savings made by the authorizing com- Treasury of the United States, than is develop a bipartisan consensus on what mittee and kept the funding levels gen- appropriated for its operation. could have been a very difficult bill, erally in line with the levels provided So, it not only pays more back than but has not been because of their tre- in H.R. 1561, the American Overseas In- we appropriate, but it also signifi- mendous assistance and cooperation. terest Act. If you voted for the author- cantly affects in a positive way the bal- The gentleman from Alabama [Mr. ization bill, you should support this ap- ance of payments of the United States, CALLAHAN], the chairman worked with propriations bill. as well as creating jobs and exports in all of the members of the subcommit- We have maintained the funding lev- every State in the Union. tee, many members of the authorizing els to meet our Camp David commit- The bill also helps meet our humani- committee, and the administration to ments for Egypt and Israel. We have tarian commitment abroad by provid- allocate the shrinking foreign assist- made children a priority and moved ing the amount requested by the ad- ance dollars in the fairest and most our aid program in the direction of pro- ministration for both refugee assist- balanced manner possible. Due to the moting trade and free markets instead ance and international disaster assist- gentleman’s inclusive leadership, we of government-to-government hand- ance. are able to present a bill with biparti- outs. The bill also, at the initiative of the san support which we hope to pass. Mr. Chairman, this is a responsible chairman, sets aside significant funds I want to echo the comments of the and balanced bill, and I urge all of our for child survival and funds to meet gentleman from Texas [Mr. WILSON] Members to cooperate with us and try our international commitment to that I hope also that it can be done to keep their amendments to the mini- fighting worldwide diseases. with a minimum of amendments. mum, and I urge their support for the I would also say, Mr. Chairman, that We are continuing the downward good work of the gentleman from Ala- this bill is the result of very strenuous trend in foreign aid spending that has bama [Mr. CALLAHAN] and the good and vigorous negotiation and com- occurred in the last decade. We spent work of all of the members of the sub- promise on the part of all of the mem- $18.3 billion on foreign operations ap- committee. bers of the committee and particularly propriations in fiscal year 1985, which b of the chairman of the subcommittee, is $25 billion in today’s dollars. Since 1730 the chairman of the full committee, today’s bill is less than $12 billion, we Mr. WILSON. Mr. Chairman, I yield and the ranking member of the full have basically cut foreign aid in half such time as he may consume to the committee. over these last 11 years. gentleman from Wisconsin [Mr. OBEY], The bill is truly bipartisan in nature This bill makes the tough choices to the ranking member of the full com- and truly enjoys at this point biparti- cut $1.5 billion from last years’s level mittee. san support. I can only express my and $2.8 billion from the President’s re- Mr. OBEY. Mr. Chairman, I thank hope that damaging amendments are quest. the gentleman for yielding. H 6250 CONGRESSIONAL RECORD — HOUSE June 22, 1995 Let me, first of all, congratulate both erences, but it does not try to tirelessly to ensure that the concerns the gentleman from Alabama [Mr. CAL- micromanage, and I think that is a and priorities of all the members of the LAHAN] and the gentleman from Texas crucial difference. subcommittee and committee were [Mr. WILSON] for the work they have I would simply concur in the state- taken into account. done in putting together a bipartisan ment made by the distinguished gen- This is not to say that this bill is per- approach to this bill and to say that I tleman from Texas who indicated that fect—or could be in my view given the feel that for a long time, regardless of this bill is very delicately put together constraints the subcommittee is work- partisan differences on many other is- and it will remain a bipartisan bill so ing under. But I believe the United sues, I believe this subcommittee has long as it stands in roughly this shape. States has not only an opportunity, always served as an example of the way The House has two choices it can but a responsibility, to take a leader- the Congress ought to work, putting make. It can choose, if it wants, to ship role in the world and promote our policy ahead of party and putting the pass a partisan bill with nominal but values of human rights, rule of law, de- country ahead of personal consider- not very enthusiastic support on this mocracy and free markets to the far ations. side of the aisle, in which case that bill corners of the globe. I am concerned I do not think in the time that Mick- may make a lot of people feel good that the cuts to the development as- ey Edwards from Oklahoma was the temporarily. But it will in the end go sistance account—40 percent—gravely ranking member or in the time that nowhere because the President in the weaken our development programs, in- the gentleman from Louisiana [Mr. end has the veto pen, and I have no cluding voluntary family planning, en- LIVINGSTON] was ranking member, and doubt he will use it if this bill is not vironment, education, and micro- I chaired the subcommittee, that you consistent with his vision of the na- enterprise. could tell who was a Democrat and who tional interest. I strongly oppose any effort that may was a Republican when we were ad- But the other choice it can make is be made to further cut the develop- dressing issues on this bill. There were to try to do what we have tried to do ment assistance account on the floor no partisan scenes, and I think that the many times in this country’s history, today or that will inhibit AID from un- gentleman from Alabama [Mr. CAL- which is to produce a bipartisan prod- dertaking much needed streamlining. LAHAN] has made every effort, as has uct which meets the needs of the Unit- Perhaps the most important item in the chairman, the gentleman from ed States without regard to ideological this bill in my view is the funding to Louisiana [Mr. LIVINGSTON], now that preference, and while this bill certainly the government of Turkey. Together has a strong philosophical bent in the the Republicans are in control of this with FRANK WOLF and CHRIS SMITH, I institution, to see to it that that tradi- direction of the gentleman from Ala- will be offering an amendment to cut tion remains, and I congratulate them bama [Mr. CALLAHAN], that is to be ex- some of these funds in order to send a for it because that is the only way this pected because they have the votes for clear message to Turkey that their on- country can function on foreign policy. the time being, and I think what we going genocide of the Kurds and that That does not mean we are going to need right now on both sides of the their treatment of their neighbors—Ar- agree on everything, because, as Will aisle is a determination that we will menia and Cyprus—is absolutely unac- Rogers said, when two people agree on try to keep this bill as bipartisan as ceptable. This bill provides $320 million everything, one of them is unneces- possible because in foreign affairs, and in loans to Turkey to allow it to pur- sary. this is much more crucial than any chase weapons and $46 weapons and $46 But the fact is that we have many other area of governance, although it million in economic aid in the form of times stood in the well in the last 10 would be useful in both, in foreign af- cash transfers to the Turkish Govern- years defending the positions and the fairs it is crucial that we have continu- ment. It is hypocritical, it seems to prerogatives of the President of the ity of policy so that we do not confuse me, that our Nation, the freest ever, United States, whether that President our friends and that we do not confuse should be helping to prop-up and arm a was a Republican or a Democrat, and I our adversaries. government that the State Department think it is essential on this bill that I think this bill tries to do that to a has repeatedly cited for gross and wors- that tradition continue. significant degree, and that is why, at ening violations of human rights. As I Having said that, I also feel an obli- least at this moment, I support the leg- said, at the appropriate time I will be gation to point out the priorities in islation with all of my doubts about offering an amendment to cut aid to this bill are not necessarily my prior- some of the edges. Turkey. ities. I would prefer that military aid Mr. CALLAHAN. Mr. Chairman, I not be as high as it is in the bill, and yield myself such time as I may I am very pleased, however, that the I would prefer that some of the eco- consume. report to this bill makes clear that the nomic accounts be somewhat higher. Mr. Chairman, I appreciate the com- committee continues to strongly sup- I also have very great doubts about ments of the gentleman from Wiscon- port funds to bring together the two both the administration’s position and sin and say that philosophically I agree communities in Cyprus, which have the subcommittee’s position with re- with your statement that, with respect been separated for over 20 years follow- spect to NATO. I would urge everyone to the administration, I think the Con- ing the Turkish invasion of the island. to read the article by Mr. Hoagland in stitution gives the responsibility and Another grave concern I have with the Washington Post today if they the authority to handle foreign affairs this bill is the retreat on funding for want to understand what I mean. to the administration, and I think Con- voluntary family planning programs. And I am concerned very much about gress has been too involved. To understand this concern, I would what I feel to be an insufficient appre- But we are here today, talking about like to ask one question, ‘‘Do you ciation for the delicate situation that money under today’s circumstances. think the quality of life for people on exists in the Soviet Union, and I think Mr. Chairman, I yield 4 minutes to Earth, including Americans, will be that this Congress runs a very major the distinguished gentleman from Illi- better or worse when the global popu- risk of not dealing with that relation- nois [Mr. PORTER], a member of our lation is double what it is today?’’ ship in the most constructive way pos- subcommittee. If we do not take action to provide sible. I think there are significant de- (Mr. PORTER asked and was given couples with the means to plan the fects in this bill with respect to that permission to revise and extend his re- number and spacing of pregnancies, the issue. marks.) world’s population will double by 2050. But having said that, I still intend at Mr. PORTER. Mr. Chairman, I sup- This will put huge pressures on food this moment to support this bill be- port this bill and I want to commend and energy supplies and the environ- cause it does represent a reasonable bi- the gentleman from Alabama for mak- ment, not to mention the political in- partisan effort to hold this institution ing the best of a very difficult budg- stability that will be created by huge together. It does not try, as the author- etary situation. The bill is nearly $2 numbers of young people in the devel- ization bill sometimes does, to incred- billion smaller than last year’s, which oping world. Adequate funding for bi- ibly micromanage the Nation’s foreign represents a large cut in a relatively lateral and multilateral voluntary affairs. It does state clear policy pref- small bill, yet Mr. CALLAHAN worked family planning programs today helps June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6251 to ensure that our children and grand- today. Thanks to Charlie Flickner, the Mr. CALLAHAN. Mr. Chairman, I children will live in a safer more pros- new clerk who the chairman was fortu- yield 3 minutes to the distinguished perous world. I encourage Members to nate enough to lure away from the gentleman from Iowa [Mr. LIGHTFOOT], keep that in mind when an amendment other body, and to John Shank and Bill a member of our panel. is offered later by Rep. SMITH of New Inglee of the subcommittee staff, and (Mr. LIGHTFOOT asked and was Jersey to effectively eliminate our to Nancy Tippines, the chairman’s very given permission to revise and extend multilateral population program and able associate staffer. And special his remarks.) hamstring our bilateral program so the thanks to Lori Maes, who is the insti- Mr. LIGHTFOOT. Mr. Chairman, I most effective family planning provid- tutional memory on the subcommittee rise in support of the bill. ers cannot receive U.S. funds. and a real professional. Let me begin by commending the This bill addresses, as best it can Also thanks to Terry Peel the minor- gentleman from Alabama [Mr. CAL- given the budget squeeze, the need to ity staff whose knowledge of this bill LAHAN] and the gentleman from Texas help other nations conserve and pro- was essential to our getting to this [Mr. WILSON] for their hard work on tect their environments. AID has for a point today. I also want to commend this legislation. number of years, been focusing re- the associate staff of the members of A foreign aid bill is neither an easy sources on protecting the biodiversity the subcommittee including Tripp nor popular bill to bring to the floor of in areas like South America, central Funderburk, Bill Deere, Ann Campbell, the House for a vote. But Mr. CAL- Africa, and Papua New Guinea. I Chris Peace, Martha Harrison, Jim LAHAN and Mr. WILSON have worked in strongly support this ongoing effort. Doran, Jerome Hartl, Kathleen Mur- the bipartisan tradition of the commit- I am also very supportive of the con- phy, Rep WILSON’s very able and ac- tee to develop a bill we should all sup- tinuing work of the Global Environ- commodating staffer, Steve Marchese, port. mental Facility—the GEF—which is who grew up in Arlington Heights Mr. Chairman, I would like to begin the environmental lending program, of which is in my district, Carolyn Bar- by discussing the administration’s atti- the World Bank. I think the best way tholomew, and Nancy Alcalde. tude throughout this year’s foreign aid to describe the GEF is that it is a fund Mr. Chairman, I thank Chairman debate. The administration’s budget that helps developing nations help CALLAHAN and urge Members to sup- proposal did not reflect the fact foreign themselves in ways that help us. The port this bill. assistance spending must also contrib- GEF lends funds to developing nations Mr. CALLAHAN. Mr. Chairman, I ute toward our goal of a balanced Fed- for environmental projects that ad- yield 3 minutes to the gentleman from eral budget. Further, the administra- dress the loss of forests and species, California [Mr. PACKARD], another dis- tion, as well as a number of special in- ozone depletion, and pollution of inter- tinguished member of the subcommit- terest groups, have convinced them- national waters. Although the bill cuts tee. selves that if the American people just the U.S. contributions to the GEF Mr. PACKARD. Mr. Chairman, I have understood the foreign aid program, nearly in half, this level of U.S. partici- the distinct pleasure and privilege of they would support increased foreign pation is essential to ensure that other serving on this subcommittee with the aid. This is a dangerously misguided donors continue to participate. In the chairman, the gentleman from Ala- view. next 4 years, Japan has pledged $500 bama [Mr. CALLAHAN], and the ranking That misguided belief apparently is million and Germany has pledged $240 minority member, the gentleman from fostered by a University of Maryland million. I strongly support our con- Texas [Mr. WILSON], and I find that poll on American attitudes toward for- tribution and oppose any effort to cut they have crafted a very, very good eign assistance. As someone who has it further on the floor. bill, and I would like to recognize them read and interpreted polls from time to This bill also puts at a high priority for that effort. time, I suspect the University of Mary- the democratization and development I also recognize the staff and all of land’s poll conclusions would change of free markets in nations of the their hard work that they have done, dramatically if, for example, specific former Soviet Union, particularly Ar- as well. domestic programs were offered up as menia. Armenia has a young, but fully Mr. Chairman, I rise in strong sup- the funding source for increased for- functioning democracy that is far port of the fiscal year 1996 foreign oper- eign aid. ahead of its neighbors in privatization. ations appropriations bill. This bill In addition, a number of ambassadors This bill provides funds for both hu- cuts 11 percent or $1.5 billion from fis- have visited with me this year and ex- manitarian assistance for Armenia and cal year 1995 levels. It represents a $2.8 pressed concern that Republican for- for long-term development that will, billion cut from the President’s re- eign policy means a return to isola- coupled with an end to the blockades quest. And more importantly, this bill tionism. In light of Anthony Lake’s imposed by its neighbors, ultimately continues the Republican trans- speech equating a reduction in foreign make Armenia a self-sufficient coun- formation and downsizing of Govern- aid with back door isolationism and try. The State Department plans to ment that we in Congress promised Ambassador Albright’s equating oppo- end assistance to the NIS countries be- back in November. sition to increasing the number of fore the end of the century. Assistance, Mr. Chairman, this bill maintains peacekeeping operations with member- like that to Armenia, is essential to set many of our traditional foreign aid pri- ship in the ‘‘Flat Earth Society,’’ it is them on the right track and ensure orities such as humanitarian assist- clear the administration has delib- that they will develop sufficiently to ance and foreign military financing. In erately orchestrated this climate in be able to stand on their own in the addition, this bill moves our foreign as- order to draw attention away from its near future. sistance program away from tradi- own pathetic foreign policy record. I am also very pleased that this bill tional bilateral aid which is ineffective Now let me turn to this year’s bill. continues to meet our Nation’s com- and bureaucratic, and toward a more Despite the bipartisan work of the mitment to the Camp David accords. market oriented development which committee, I believe the bill does re- Both Israel and Egypt are fully funded uses the private sector to promote eco- flect the priorities of the new majority. in this bill, as they should be. This bill nomic growth. The emphasis of the bill is on export helps fulfill our commitment to Isra- Finally, Mr. Chairman, this bill in- promotion activities, a continued com- el’s keeping a qualitative military edge cludes no earmarks. This is a clean mitment to supporting Israel, and a over its neighbors as well as rewarding bill, it is one that puts this country on leaner more efficient agency for inter- those who are willing to take reason- the right track toward a deficit-free fu- national development. able risks to pursue peace. ture. There are two aspects of the bill Finally, I would like to commend the Once again, I wish to commend the which I would like to briefly discuss. staff of the subcommittee for their ex- chairman and the ranking minority The first concerns our continued sup- cellent and tireless work with Members member for their excellent work in port for export promotion programs. and their staffs to find common ground crafting this very good and bipartisan I believe the export assistance agen- on what are often very difficult issues bill, and I recommend all Members sup- cies fulfill a very important role in ad- and to bring this bill to the floor port it in final passage. vancing American foreign policy. They H 6252 CONGRESSIONAL RECORD — HOUSE June 22, 1995 are not corporate welfare. As you ment assistance to the Government of tleman from Texas [Mr. WILSON] who know, our three export assistance Azerbaijan until Azerbaijan ceases its has been a strong advocate for bringing agencies support projects in parts of blockade of Armenia. together this compromise. It deserves the world where commercial institu- I want to be clear about this: Section bipartisan support. It is not a Repub- tions are reluctant to participate. They 907 prohibits direct government to gov- lican idea, it is not a Democratic idea, also help level the playing field for ernment aid. It does not deny United it is an American idea. American business in the global mar- States humanitarian aid to Azerbaijan, H.R. 1868 recognizes the fiscal situa- ket. as the bill’s language would lead us to tion we face and reduces the amount of Neither Chairman CALLAHAN nor I be- believe. As a matter of fact, as of money that we spend on foreign assist- lieve in corporate welfare. In fact, I do March 31, 1995, Azerbaijan has received ance. But H.R. 1868 also reflects our not believe we believe in any kind of $61.8 million in incountry, United continued belief in the importance of welfare. But it is clear that foreign States humanitarian assistance maintaining our role as a leader in governments help their businesses through nongovernment organizations global events. compete in developing markets. In a and private volunteer organizations. This bill does not blindly slash for- perfect world it would be nice to reduce Section 907 states: eign aid. We make some serious cuts this type of funding. However, if we cut United States Assistance under this or any that reflect careful consideration and this funding we only succeed in harm- other act (other than assistance under Title the review of every program. We have ing American business abroad. V of this act) may not be provided to the eliminated and reduced funding to Second, I think we are getting to the government of Azerbaijan until the Presi- those programs that have failed to jus- dent determines, and so reports to Congress, tify continued support. point where we need to think seriously that the government of Azerbaijan is taking about the future of bilateral aid pro- demonstrable steps to cease all blockades Foreign aid is a crucial component of grams. This bill and the budget resolu- and other offensive uses of force against Ar- our foreign policy. With the end of the tion clearly indicate that future spend- menia and Nagorno Karabagh. cold war, there exists a sentiment in ing on foreign aid will continue to To date I am not aware that the our country to place foreign affairs on drop. We need to think about the most President has filed a report with the the back burner and focus on domestic effective way to best spend those di- Congress indicating that the blockade problems, and I admit we cannot ignore minishing dollars. is being lifted. the domestic problems of crime, health I think the best way may be to shift The Azerbaijan blockade against Ar- care, education, and the economy, but from bilateral programs to using the menia and Nagorno Karabagh is now in I believe that recent events in the leveraging power we have with the its 5th year and it has made Armenia former Soviet Union, North Korea, and multilateral development banks. the poorest of the 15 former Soviet Re- Bosnia illustrate that America must Secretary Rubin and his staff have publics. not insulate itself from the inter- once again done an excellent job in According to United States AID’s national community. demonstrating the utility of our fund- 1995 country profile of Azerbaijan, Faced with a national debt that is ing the MDB’s. As you know, the funds Azerbaijan continues to enforce a com- strangling our economy, Congress is we appropriate as part of our pre- plete rail, road, and fuel blockade of operating under severe pressure to re- viously negotiated share of MDB fi- Armenia throughout its territory, ef- duce spending and rightfully so. But we nancing results in exports many times fectively cutting off fuel supplies and must work toward these goals as the larger than our annual contribution. humanitarian supplies. world’s only superpower and the sole Every dollar of our MDB contribu- As a result, the blockade has forced a proprietor of democracy. We have re- tion leverages into $22 in total MDB shut-down of almost all Armenian in- duced foreign aid in this bill but we lending. Additionally, we must con- dustries. have not eliminated our ability to par- tinue to contribute to the MDB’s if we In fact, as many as one-third of Ar- ticipate in the world. are to continue to play a leadership menia’s 3.6 million people have fled the Foreign aid, which makes up less role in the management of the individ- country because the winters are un- than 1 percent of our Federal budget, is ual multilateral banks. bearable and the factories stand idle. a good investment and has benefited In closing, let me again commend Lifting the ban now would only en- our interests around the globe by fur- Chairman CALLAHAN and Mr. WILSON courage Azerbaijan to resist a peaceful thering the development of economic for bringing to the floor a good bill. I solution to the Karabagh conflict and and political stability in the inter- also want to acknowledge the fine keep their blockade in place. The effort national community. work of the staff in getting us here. in the bill to weaken United States law H.R. 1868 allows us to continue to re- I urge all my colleagues to support that restricts United States aid to main active in world event while it re- this bill. Azerbaijan represents a retreat from flects our budgetary constraints. the principal position adopted by this I support this bill very strongly, and b 1745 body in 1992 that Azerbaijan must I urge my colleagues to do likewise. Mr. WILSON. Mr. Chairman, I yield 3 make progress towards peace by lifting Mr. WILSON. Mr. Chairman, I yield 3 minutes to the gentleman from Indiana its blockade. Congress would send the minutes to the gentleman from New [Mr. VISCLOSKY]. wrong message now by moving to Jersey [Mr. PALLONE]. (Mr. VISCLOSKY asked and was weaken this restriction when the Azer- Mr. PALLONE. Mr. Chairman, I want given permission to revise and extend baijan Government in more than 2 to comment on three issues that will his remarks.) years has failed to act on the United come up in the context of the fiscal Mr. VISCLOSKY. Mr. Chairman, I ap- States demands. year 1996 foreign aid appropriations preciate the gentleman’s courtesy in Mr. CALLAHAN. Mr. Chairman, I bill. First is the Humanitarian Aid Cor- yielding this time to me, and I rise in yield 3 minutes to the gentleman from ridor Act. This is a provision in the bill support of the legislation and to com- Michigan [Mr. KNOLLENBERG] a mem- that would bar U.S. assistance to coun- mend Chairman CALLAHAN and the gen- ber of the subcommittee. tries that bar the delivery of U.S. hu- tleman from Texas for the fine job they (Mr. KNOLLENBERG asked and was manitarian aid to another country. have done under very trying cir- given permission to revise and extend The Republic of Turkey, a major recip- cumstances. I also rise to express my his remarks.) ient of United States assistance, has strong support for maintaining the in- Mr. KNOLLENBERG. Mr. Chairman, maintained a blockade on its neighbor tegrity of section 907 of the Freedom I rise to express my strong support for Armenia. Asking our allies to allow Support Act which sanctions Azer- this bill which reflects the subcommit- American humanitarian assistance to baijan for its blockade of Armenia and tee’s careful crafting and compromise. reach its intended recipients is a rea- Nagorno Karabagh. I am extremely I particularly wanted to salute the gen- sonable condition for U.S. aid, and any concerned about one provision—in this tleman from Alabama [Mr. CALLAHAN], country that fails to abide by this bill which would gut section 907. The the chairman of the full committee, basic condition is undeserving of our purpose of section 907 is specifically to the gentleman from Louisiana [Mr. aid. This provision was approved by the prohibit direct United States Govern- LIVINGSTON], and of course the gen- Foreign Operations Subcommittee, and June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6253 was part of the foreign aid authoriza- put on our subcommittee, and he has rity functions as the world’s leader tion bill which has already passed the been a valuable contributor, a man who continue. It brings us back from the House. The Senate Foreign Relations works hard, a man who understands brink of becoming the world’s police- Committee has also adopted this provi- this bill as much as anybody in this men and nanny to a more responsible sion. Any attempt to remove the Hu- Congress. place for this Nation as the guardians manitarian Aid Corridor Act from the Mr. FORBES. Mr. Chairman, I thank of peace, freedom, and democracy bill must be opposed. the gentleman for those wonderful around the world. Second, Mr. Chairman, I support con- words. b 1800 ditional aid to Turkey on compliance I rise in support today of the foreign with human rights. Our colleague, the operations bill, and I compliment the The CHAIRMAN. The gentleman gentleman from Illinois [Mr. PORTER] a ranking minority leader of this great from Alabama [Mr. CALLAHAN] has 5 member of the Foreign Ops Sub- committee and my distinguished chair- minutes remaining, and the gentleman committee and the cochairman of the man for all their hard work. from Texas [Mr. WILSON] has 15 min- Armenian issues caucus, is planning to Mr. Chairman, I would say that this utes remaining. introduce an amendment that would document is a responsible document, to Mr. CALLAHAN. Mr. Chairman, I cut assistance to Turkey until that say the least. There are many across yield 2 minutes to the gentleman from country makes substantial improve- the country who question this Nation’s Nebraska [Mr. CHRISTENSEN]. ments in its human rights record. The commitment to foreign operations and Mr. CHRISTENSEN. Mr. Chairman, I Porter amendment is intended to draw foreign assistance, and I have to say to want to thank the committee and its attention to Turkey’s immoral and il- those people who think that we should chairman for rejecting any attempt to close down the Overseas Private In- legal blockade of Armenia, the Cyprus be spending more around the globe that vestment Corporation [OPIC]. I support issue, the rights of the Kurdish people, they will be disappointed because this downsizing Government more than and the restrictions on free expression document is a responsible document anyone, but abolishing OPIC will not in Turkey. I strongly support the Por- that blends a responsible approach for this Nation as a leader in making sure further either of these goals. ter amendment. OPIC is not some foreign boondoggle Third, I would urge the House to that we help children, that we make program, as some have charged. OPIC maintain the economic sanctions on sure that those who are so dedicated to provides loans and political risk insur- Azerbaijan until it lifts its blockade of freedom and democracy around the ance to American companies doing Armenia. Language was inserted into world have appropriate assistance, but business abroad. It does not do this for the foreign aid appropriations bill it does not allow us to move around free. It charges market rate for its which severely weakens section 907 of and perhaps be the world’s policemen. services, which is how it makes money. So I compliment the committee and the Freedom Support Act, which be- For example, recently OPIC charged an the committee staff particularly for came law in 1992. This provision pro- 11.9-percent financing rate for a com- their help in crafting what I would say hibits government-to-government as- pany that is constructing a powerplant sistance between the United States and is a most responsible document. It calls overseas. If it was not for OPIC, that Azerbaijan until that country lifts its for $11.9 billion. It is a responsible doc- company would have had to purchase devastating blockade of Armenia. ument that results in the lowest spend- $500 million worth of goods from Japan, Given that the Azerbaijani Govern- ing in foreign operations in 20 years. It rather than from the United States. ment has not made any progress to- is in line with this Nation’s ability to Unlike almost every other Federal ward lifting its blockade, as was pre- move toward a balanced budget. It is agency, OPIC actually takes in more viously stated by my colleague, the $200 million below the budget author- than it spends. In fact, it showed a net gentleman from Indiana [Mr. VIS- ity. It is $400 million below the author- income of $167 million last year, and it CLOSKY], there is no basis for changing izers’ document, and, as I said, it is a writes a check at the end of each year the law, and Azerbaijan should not be very responsible spending plan that is returning most of its profits to the rewarded for its intransigence. Indeed, in line with this Nation’s responsibil- Government. Since 1971, OPIC has con- the law has not prevented humani- ities to its allies and to the preserva- tributed almost $2 billion back to the tarian aid disbursed by nongovern- tion of democracy and freedom around Federal Government to reduce the mental and private voluntary organiza- the world. This document preserves debt. tions from getting to Azerbaijani refu- funding for peace, strategic allies like OPIC is a successful business because gees. Our colleague PETER VISCLOSKY Israel and Egypt, and helps to move it negotiates on a government-to-gov- of Indiana, a member of the Appropria- forward on the Middle East agree- ernment basis. Its services are simply tions Committee and also the Arme- ments, and addresses new priorities for not available in the private sector. nian issues caucus, may offer an this Nation in counterterrorism and OPIC does not cost the taxpayers any- amendment to strike this provision or drug interdiction. thing, and it actually makes money for to explicitly forbid direct govern- By zeroing out or severely reducing the Government, so its elimination mental assistance to Azerbaijan. The funding for soft loan windows at the would actually increase the deficit, not Visclosky amendment would prevent multilateral banks, we are moving reduce it. In my opinion, OPIC is an ex- the gutting of the existing law, and I away from the statist model of devel- ample of how a Federal agency should urge support for that amendment. opment in favor of a more free market be run. Its elimination would hurt U.S. Finally, Mr. Chairman, Armenia has approach. On the other hand, the bill interests and result in higher deficits. made tremendous strides toward de- creates a new child survival account, I want to thank the committee and mocracy and a market economy since as I have referenced, and ensuring that its chairman for fighting to keep it, the breakup of the Soviet Union de- nearly half a billion dollars will be and also I look forward to working spite the relentless hostility of its spent on basic needs for children rather with the chairman to make sure we neighbors, Turkey and Azerbaijan. Tur- than the nebulous and often wasteful, stem the tide of any elimination as key and Azerbaijan, in my opinion, quote, development assistance account. this process goes on. continue this blockade illegally. The It maintains and even increases fund- Mr. WILSON. Mr. Chairman, I yield United States should support countries ing for export assistance, something myself 30 seconds to ask a question of that share America’s values and not that is vital to this Nation’s economy the gentleman from Nebraska [Mr. give encouragement to those countries and where the small business sector CHRISTENSEN]. I would like to ask the that oppose our principles so fla- looks for new opportunities. It en- gentleman from Nebraska to reiterate grantly. hances U.S. competitiveness abroad what he said. I think many Members of Mr. CALLAHAN. Mr. Chairman, I and certainly will result in the cre- this body do not understand that OPIC yield 3 minutes to the gentleman from ation of jobs here at home. actually returns more money to the New York [Mr. FORBES], one of the The bill maintains enough funding Treasury than we appropriate for it. hardest working new Members of this for the United States to carry out what Mr. CHRISTENSEN. Mr. Chairman, if Congress that has come in this year to I said is its proper foreign policy obli- the gentleman will yield, that is cor- join us. We are blessed that he was also gations and ensures that national secu- rect. H 6254 CONGRESSIONAL RECORD — HOUSE June 22, 1995 Mr. WILSON. As well as creating Mr. WILSON. Mr. Chairman, I yield we do not want Russia contributing to jobs, as well as positively affecting the such time as he may consume to the that. balance of payments, as well as creat- gentleman from Wisconsin [Mr. OBEY], Mr. OBEY. Mr. Chairman, reclaiming ing more taxpayers. the ranking member of the full com- my time, none of us do. It could be a Mr. CHRISTENSEN. It does the mittee. significant threat to the security of the things that the private sector cannot Mr. OBEY. Mr. Chairman, I would United States. Everybody recognizes do, because the private sector does not simply like to take a second to respond that. The question is, what is the best have an arm where it will take politi- to the comments of the gentleman who way to see to it that it never happens, cal risks. OPIC takes that risk for the just spoke. I very much admire the way and I think to achieve that we all need American enterprise, for the entre- the gentleman attends to the needs of to work together on another vehicle. preneur, for the corporation, loaning his district and his constituents and Mr. WILSON. Mr. Chairman, if the out at market rates and returning back his substantive concerns. But I want to gentleman will yield, does the ranking to the Federal Government the cost. make clear something which I said ear- member agree with me that as a mat- Mr. WILSON. I thank the gentleman. lier with respect to that nuclear power ter of national pride and national dig- Mr. Chairman, I yield 2 minutes to plant in Cuba, since he was referring to nity and probably of politics in Mos- the gentleman from New Jersey [Mr. me in his comments. cow, that if the United States tells MENENDEZ]. As I said earlier in my exchange with Russia they cannot do it, then they (Mr. MENENDEZ asked and was the gentleman from Florida, I very have to do it? given permission to revise and extend much agree with people on the sub- Mr. OBEY. Mr. Chairman, I know his remarks.) stance of the question of the nuclear how we would react as Americans. If Mr. MENENDEZ. Mr. Chairman, I power plant in Cuba. I think it should somebody tells America, ‘‘You cannot thank the distinguished ranking mem- not be built. I think it is very bad busi- do something or we are going to do X ber for yielding. Mr. Chairman, in my absence a lot ness. I think the Russians should not to you,’’ that is when the Americans has been said about the amendment be financing it in any way, shape, or have the fur on the back of their neck that I have offered and which the Com- form. There is no disagreement whatso- go up and they say, ‘‘Tough, buddy, we mittee on Rules made in order, which I ever on substance. are going to do it.’’ That is human na- want to publicly thank the gentleman I would simply point out that the ture. So the question is how do you GAO report to which the gentleman re- handle this in a way that people do not from New York [Mr. SOLOMON] who, in his wisdom, along with the members of ferred was a 1992 report. My under- do dumb things because they are fol- the Committee on Rules, agreed to standing is that that nuclear operation lowing emotion rather than logic. have this amendment made in order, has been mothballed since 1993, and it Mr. CALLAHAN. Mr. Chairman, I particularly in view of the serious na- is quite clear that the administration yield 2 minutes to the gentleman from ture and the timing of what is in- shares the gentleman’s concerns about New Jersey [Mr. SMITH]. volved. that plant and is trying to find the best Mr. SMITH of New Jersey. Mr. Chair- For someone to say that it is a rather way to see to it that it does not pro- man, I thank my good friend for yield- narrow focus about the issue of the nu- ceed and is not ever put in place. The ing. clear power plant in Cuba, they should only question before us is what the Mr. Chairman, I rise in strong sup- have seen the 60 Minutes program 2 best way is to discourage that. The port of this committee’s proposal, and weeks ago. It is not a narrow focus. only question is how do you prevent it I am especially grateful for the work If we look at the September 1992, from actually happening. That is what that Chairman CALLAHAN and Chair- GAO report, for those of us who have is in dispute here. man LIVINGSTON have done to establish been following this for quite some So, with all due respect to people’s a new child survival account. Since I time, we know this is a very serious concerns about it, which are legiti- have been in Congress, since the early issue, and not just to those who follow mate, I would simply suggest that it is 1980’s, there has been a bipartisan ef- Cuba policy vis-a-vis the United States occasionally possible to be correct in fort to preserve and fence off money for and Cuba. terms of one’s goal, while being very immunizations and for oral This is what this report said about mistaken in terms of the means that rehydration money, which has literally the nuclear power plant. It said that one chooses to get to that goal. Some- saved millions of children because of reports by a former technician from times you have a law of unintended that very modest investment. Cuba examining with x rays weld sites consequences, which means that what I have witnessed during the 1980’s two believed to be part of the auxiliary you start out to try to stop, you in fact mass vaccination days in Central plumbing system found 10 to 15 percent create because of inadvertence. I do not America and saw thousands of kids of those were defective; that the oper- want that to happen here, which is why vaccinated against preventable dis- ation of this reactor would be criminal. I am concerned that this amendment is eases like diphtheria, tetanus, and In fact, it says, for those of you who considered on this bill, when I think it other preventable diseases. Yet we find are Members from Texas, Louisiana, ought to be considered by another com- that millions of kids still die. We have Mississippi, Alabama, Florida, Georgia, mittee that knows a whole lot more still not brought the blessings of the South Carolina, North Carolina, Vir- about it than this committee does. child survival revolution to all those to ginia, and Washington, DC, according Mr. CALLAHAN. Mr. Chairman, will whom we could bring it, and this ac- to a study by the National Oceano- the gentleman yield? count will go very, very far in trying to graphic and Atmospheric Administra- Mr. OBEY. I yield to the gentleman advance that, especially in times of tion, that summer winds could carry from Alabama. budget austerity. radioactive pollutants from a nuclear Mr. CALLAHAN. Mr. Chairman, I I would just remind Members that accident at that powerplant through- want to tell the gentleman that I agree when we consider the authorizing bill, out all of Florida and parts of the wholeheartedly with you. We would not I had offered language that was accept- States on the gulf coast as far as want to mislead anybody in this House ed by the committee to fence off Texas, and northern winds could carry or this country that we are in support money, to earmark money, that would it as far northeast as Virginia and of Russia affording this opportunity to be used for child survival activities. It Washington, DC. That affects the lives Cuba. We think his destination is right, passed in a bipartisan way in commit- of hundreds of millions of Americans he is just on the wrong bus to get to tee, and a soft earmark has been re- and in fact it makes it so imperative that destination. tained on the floor of the House. that we consider this amendment and I agree with you, the gentleman Let me just say why I think that is move forward on it. We do not need to should have done it in the authoriza- so important. When Brian Atwood tes- be supplying money to countries who tion bill, not in this bill. So I agree tified before our committee 2 days be- want to permit another Chernobyl-like with you, but I want everybody to fore our markup, he said that a 30 per- accident 90 miles away from the United know that I do not disagree with the cent cut in USAID’s child survival pro- States. That is why I appreciate the destination. We do not want that plant gram, and there was no cutting in the amendment being considered. in Cuba under any circumstances, and program, it was a cut in DA, would June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6255 mean that more than 4 million children Over a million child deaths per year from Toward vaccination, so that the effective ex- will likely not be vaccinated, greatly malaria; 17 million cases of river blindness tinction of polio and measles can be brought heightening their risk of death from se- and elephantiasis; 25,000 new cases per year about, as has already been done with small- vere illness. of African sleeping sickness; 10±12 million pox; He went on to say if there was a cut case worldwide of leprosy, or Hansen's Dis- Toward eliminating Vitamin A and iodine de- across the board in DA, development ease. ficiencies, thereby preventing blindness, ill- authority, that that would automati- Unfortunately, when Congress does not ness, and death for untold numbers of children cally translate into a cut for child sur- speak clearly enough on how the funds it ap- in the developing world; and vival. It is a matter of who manages propriates for child survival are to be spent, To UNICEF, which has a long record of sav- the cuts. they are sometimes spent in ways that do not ing children's lives. Mr. Chairman, I think it is important put child survival first. In a hearing before the UNICEF's research shows us how far we for us to say we do not want to see any International Relations Committee earlier this have comeÐand how far we still have to goÐ of these cuts. But if cuts have to be, year, Brian Atwood, Administrator of AID, told in fighting childhood diseases and improving children should come first. us that funds designated for child survival had childhood nutrition. Consider the case of polio. I again want to salute the gentleman been drawn down for emergency relief, while Worldwide estimates of polio cases have from Alabama [Mr. CALLAHAN] for population funds had not been similarly fallen from 400,000 in 1980 to just over making sure that children do indeed touched. The operating assumption seems to 100,000 in 1993. But at the same time, there come first and are protected from cuts. be: population means population, but child are still 68 countries where the polio virus is Mr. Chairman, foreign aid has its share of survival means a general humanitarian fund. crippling children. Carrying out a vaccination critics, and perhaps more than its share. This Congress must state clearly that child sur- program in places where outbreaks are still fact was reflected in our recently enacted for- vival means child survivalÐnot population occurring can be expensive. Furthermore, the eign relations bill, which made significant cuts control or anything else. Whatever the proper perception that polio is almost extinct makes it in foreign aid and was nonetheless subject to place of family planning in U.S. foreign aid, it hard to generate the political will to make criticism in some quarters that it did not cut should not operate at the expense of child sur- those expenditures, especially when other dis- deeply enough. To some extent, the voters' vival. Family planning implicates fundamental eases seem to pose a much graver threat. Yet distrust of foreign aid is warranted. In far too disagreements about morality, family life, and, if the final extermination of polio is not many cases, foreign aid has proved to be the in the case of abortion, about life itself. But achieved, the disease could mount a mighty ticket to the high life for corrupt bureaucrats in child survival is something that all of us, on comeback when a generation of unvaccinated developing nations, while their people remain both sides of the population and abortion is- children starts to grow up. Funds for UNICEF can help prevent this vicious circle from be- mired in poverty. sues, can support. Child survival can and But let us be clear about what it is that peo- should bring us together, whatever battles we coming a reality. Consider measles. Not as terrifying as polio, ple object to when they object to foreign aid. may need to fight over other issues. perhapsÐyet UNICEF estimates that it causes Everyone objects to corruption in the system. Unfortunatly, the Clinton administration is 1 to 2 million child deaths each year, and Many object to spending money on infrastruc- conspicuously absent from this broad coalition in favor of putting children first. At a recent often leaves even its survivors with severe ture projects in developing countries while malnutrition. Like polio, measles can be elimi- money is running out for similar projects here hearing, Mr. Atwood explained how he would manage the one-third cut in Development As- natedÐprovided the funding for vaccination at home. And many object to funding abortion continues even after the disease becomes and heavy-handed population control tactics. sistance funding: A 30-percent cut in USAID's child survival rare. In 1994, Indonesia held a national immu- But what virtually no one objects to is the aid program would mean that more than 4 million nization day targeted at both polio and mea- that goes directly to saving lives. children will likely not be vaccinated, greatly sles, but health authorities there had to scale People are not skeptical about foreign aid heightening their risk of death or severe illness it back to polio alone due to inadequate funds. because they believe that foreign aid has vac- from such preventable diseases as measles, Indonesia is therefore at greater risk of a re- cinated too many children, fed too many starv- whooping cough, and diphtheria. surgence of measles. ing people, or turned too many swords into But there is one fact that puts Mr. Atwood's Consider child nutrition. Vitamin A is in- plowshares. They are skeptical because they remarks in an alarming light. Our bill does not creasingly recognized as a low-cost way to re- believe that foreign aid has paid for too many cut child survival. It cuts foreign aid overall, duce child mortality by between a quarter and unnecessary government offices and lim- while attempting to protect child survival. Mr. a third in many developing nations. UNICEF ousines, or has been siphoned off by yet an- Atwood, it seems, was not expressing a fearÐ calls vitamin A the most cost-effective of all other corrupt politician. So the best political he was issuing a threat. He was saying, if you interventions for children. One study showed solution is also the best policy: accept the re- cut Development Assistance, we will take that that malnourished children with adequate vita- ality that resources are limited, cut the lim- cut out of child survival. min A were less likely to die than well-nour- ousines, and save the food and medicine. Mr. Atwood continued: ished children who were deficient in vitamin A. The intent of Congress in preserving child Oral Rehydration Therapy [ORT] prevents Consequently, UNICEF is undertaking a cam- survival funds in an era of budget austerity is an estimated 1 million deaths a year due to paign to promote the fortification of common emphatically to save the funds for medicine, acute diarrhea. Usage rates for ORT in all foods with vitamin A, and to make vitamin micronutrients, and vaccine. We intend to areas of the world have risen to 40±65 per- capsules available in areas of acute need. keep such funds from being siphoned off, ei- cent. Despite the steady growth in ORT use, I have both high hopes and great fears ther to luxurious perks, or to forms of foreign 3 million children still die from diarrheal dis- about UNICEF. High hopes that it will continue aid that lack a measurable positive impact on ease annually. A cut of 30 percent in child sur- as a pathbreaker in child survival projects, as child morbidity. vival resources would likely mean at least it has done for decades. And great fears that Even in this age of advanced medical 100,000 children's lives would be lost each it will veer from its core mission into areas progress, this world still witnesses the prevent- year for lack of this cheap and simple treat- such as family planning, which are dealt with able deaths of millions of children. We still ment. by other U.N. agencies, and which tend to have: Chilling facts indeedÐespecially when you fracture the coalition that supports UNICEF. More than a million deaths per year due to consider that such consequences could easily Over the years, liberals and conservatives measles, according to UNICEF. be avoided if USAID were to concentrate its alike have bought UNICEF greeting cards, en- Still over 100,000 cases per year of polio, Development Assistance cuts on something couraged their children to trick or treat for despite large strides toward eradicating it, ac- other than child survival. UNICEF, and even supported larger and larg- cording to Dr. Jong Wook Lee of the World This is why Congress must not send up lan- er contributions over the years by the United Health Organization. guage that gives USAID any leeway on child States. Continuation of this unusual consen- Half of all child deaths are caused by either survival. sus is most unlikely if UNICEF ventures into diarrhea or pneumonia, according to UNICEF. The Child Survival Account that the Appro- the most morally landmined field in all of for- Yet these deaths are highly preventable: by priations Committee's bill would establish is a eign aid. early detection and antibiotics, in the case of step in the direction of broadly supported hu- The Subcommittee on International Oper- pneumonia, and by oral rehydration therapy, in manitarian foreign aid. These funds will go, for ations and Human Rights, which I chair, will the case of diarrhea. instance: be holding oversight hearings on UNICEF. We Furthermore, the World Health Organization Toward oral rehydration therapy, which hope and expect to find through these hear- reports: saves more than a million lives a year; ings that UNICEF has remained faithful to its H 6256 CONGRESSIONAL RECORD — HOUSE June 22, 1995 core mission of fighting child morbidity and I also want to convey my strong support for expenses. Why does it cost a half a billion dol- promoting child health. In that regard, I wel- the funding for the International Fund for Ire- lars to run a $5 billion program? Over the past come the declaration on family planning that land. President Clinton and the Congress have 10 years, AID's programs have gone down 23 UNICEF makes in its 1995 report called The much to be proud of with respect to the pro- percent, but its operating costs have gone up Progress of Nations. That declaration makes found and peaceful changes in Ireland. We 40 percent. clear that under the division of labor that char- therefore must renew our commitment to the It makes no sense that operating costs go acterizes U.N. agencies, UNICEF's mission of heroic Irish people. up when the overall program is going down. In improving the well-being of children and I ask my colleagues to support this bill. It is particular, I oppose the $29 million which is women is different from that of the agencies not perfection, but it is very important never- provided for AID downsizing. What sense that promote family planning. theless. does it make to appropriate more money to The core mission of UNICEF, and other im- Mr. ROTH. Mr. Chairman, this legislation shut down missions and reduce the Agency? portant child survival activities, will be helped poses a dilemma. Some of its provisions, such That represents the triumph of bureaucratic greatly by the child survival and disease pro- as the funding for export-related functions, are thinking over common sense. gram fund set up by this bill. This fund is for- vitally necessary for our economic growth and Yes, we absolutely should cut down AID, eign aid as it was meant to be. This Congress job creation. but let us not give the bureaucrats even more is making cuts, but it is not making them blind- The bill continues current levels of funding money to carry this out. Many amendments ly or callously. It is cutting waste and extrava- of the Export-Import Bank, which helps finance will be offered to this bill. gance, while preserving the heart of foreign U.S. exports. Some will propose further reductions in for- aid. I commend the appropriators for their The bill also provides $100 million for the eign aid. Some will propose ill-considered re- work, and I urge a ``yes'' vote on the foreign Exim Warchest, which is used to counteract ductions in support for our exporters. And operations appropriations bill. unfair trade practices by foreign governments. some would actually increase foreign aid Mr. CALLAHAN. Mr. Chairman, I This, too, is essential for our competitive posi- spending. The fate of this bill hangs in the out- yield myself such time as I may tion in global markets. Further, the bill pro- come of these amendments. consume. vides a substantial increase in the operating Mr. Chairman, I want to respond to levels for the Overseas Private Investment I urge my colleagues to join me in support- the gentleman from New Jersey, and Corporation [OPIC]. ing the export-related provisions and in mak- give him a lot of credit, because he, This is consistent with our authorizing bill ing further reductions in foreign aid. along with the gentleman from Vir- last year, in which we tripled OPIC's authoriz- Mr. WILSON. Mr. Chairman, I have ginia [Mr. WOLF] and the gentleman ing levels to $9.5 billion. Let me point out that no further requests for time, and I from Ohio [Mr. HALL] came and sug- OPIC does not use any taxpayer fundsÐit yield back the balance of my time. gested that we do something to ensure pays for itself and even makes money for the Mr. CALLAHAN. Mr. Chairman, I that as we dramatically downsize for- GovernmentÐlast year earning $167 million. have no further requests for time, and eign aid, that we do not preclude the OPIC also maintains reserves to cover its li- I yield back the balance of my time. ability of the administration to have a abilities, with $2.3 billion currently on deposit Mr. Chairman, I move that the Com- sufficient amount of money to feed in the Treasury. mittee do now rise. starving children, and to provide the None of these funds come from the tax- immunizations programs that will help The motion was agreed to. payer. Everything was earned through OPIC's eradicate polio. So I compliment the Accordingly, the Committee rose; business activities. The truth is, this appropria- gentleman. and the Speaker pro tempore [Mr. tions bill simply allows OPIC to use the money Mrs. MALONEY. Mr. Chairman, I rise in MCKEON] having assumed the Chair, support of the foreign operations funding bill. that it has already earned on its own. Mr. BOEHNER, Chairman pro tempore of I do so with the view that this is not a per- The bill also provides funds for the Trade the Committee of the Whole House on fect bill. In many respects, it represents a step and Development Agency, which generates the State of the Union, reported that backward in U.S. commitment to promoting U.S. exports by funding the engineering and that Committee, having had under con- development and democracy around the feasibility studies for major construction sideration the bill, (H.R. 1868), making world. projects overseas. appropriations for foreign operations I am concerned about the 34-percent cut in Our subcommittee's oversight hearings have export financing, and related programs African aid. This is bad public policy on hu- shown that TDA generates $25 in exports for for the fiscal year ending September 30, manitarian grounds. These cuts also make no every $1 it spends. That is an excellent return 1996, and for other purposes, had come fiscal sense. Investing a small amount in Afri- on our investment. Therefore, I am concerned to no resolution thereon. can development today will save many more that this bill cuts TDA by $5 million. I hope this f tax dollars in emergency intervention in the fu- provision can be revisited later. The importance of each of these export pro- ture. CONFERENCE REPORT ON H.R. 483, grams is underscored by the latest trade data, I am also concerned that the bill contains MEDICARE SELECT POLICIES language allowing for continued United States which came out yesterday. The overall deficit aid to Azerbaijan, despite that nation's uncon- in April was $11 billion, the worst month in 3 Mr. BILIRAKIS submitted the fol- scionable blockade of Armenia. Allowing our years. The deficit in goods was $16 billion. lowing conference report and state- allies to block U.S. humanitarian assistance That is $1.7 billion worse than in March. ment on the bill (H.R. 483) to amend represents a complete undermining of our for- In April, our exports actually went down by title XVIII of the Social Security Act eign policy objectives. nearly a billion dollars, while imports went up to permit Medicare select policies to be Despite these problems, the bill contains by $700 million. offered in all States, and for other pur- many important provisions, and I want to In other words, our trade deficit, which last poses: thank Chairman CALLAHAN and my good friend year was the worst in our history, is getting CONFERENCE REPORT (H. REPT. 104–157) even worse. The bottom line is, if our exports DAVE OBEY for their work. The committee of conference on the dis- I strongly support the inclusion of $3 billion do not recover, we will certainly fall into a re- agreeing votes of the two Houses on the in economic and military assistance for Israel. cession. amendment of the Senate to the bill (H.R. As our only democratic ally in the Middle East In recent years, exports have provided most 483), to amend title XVIII of the Social Secu- continues to travel down the historicÐand of our economic growth, as much as 80 per- rity Act to permit medicare select policies often dangerousÐroad toward peace, it is im- cent. Clearly, we need the export programs in to be offered in all States, and for other pur- perative that our country ensure Israel's eco- this bill. poses, having met, after full and free con- nomic viability and military advantage in the Therefore, I commend the Gentleman from ference, have agreed to recommend and do recommend to their respective Houses as fol- region. Alabama [Mr. CALLAHAN] and the gentleman lows: I am pleased that the bill maintains $15 mil- from Louisiana [Mr. LIVINGSTON] for these vital That the House recede from its disagree- lion for Cyprus. It has been two decades since job-creating provisions. Unfortunately, other ment to the amendment of the Senate and the brutal Turkish invasion of this beautiful is- parts of the bill represent business as usual in agree to the same with an amendment as fol- land nation. This relatively small amount of doling out foreign aid. lows: money goes a long way toward helping the The bill makes some cuts in foreign aid, but In lieu of the matter proposed to be in- Cypriot people with critical economic develop- not enough, in my judgment. AID still gets serted by the Senate amendment, insert the ment and peace-enhancing activities. $5.7 billion, including $530 million in operating following: June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6257

SECTION 1. PERMITTING MEDICARE SELECT submit the following joint statement to the WILLIAM THOMAS, POLICIES TO BE OFFERED IN ALL House and the Senate in explanation of the NANCY L. JOHNSON, STATES FOR AN EXTENDED PERIOD. effect of the action agreed upon by the man- Managers on the Part of the House. Section 4358(c) of the Omnibus Budget Rec- agers and recommended in the accompany- BOB PACKWOOD, onciliation Act of 1990, as amended by section ing conference report: BOB DOLE, 172(a) of the Social Security Act Amendments of The Senate amendment struck all of the DANIEL PATRICK MOYNIHAN, 1994, is amended to read as follows: House bill after the enacting clause and in- Managers on the Part of the Senate. ‘‘(c) EFFECTIVE DATE.—(1) The amendments serted a substitute text. made by this section shall only apply— The House recedes from its disagreement f ‘‘(A) in 15 States (as determined by the Sec- to the amendment of the Senate with an retary of Health and Human Services) and such ADJOURNMENT TO MONDAY, JUNE amendment that is a substitute for the 26, 1995 other States as elect such amendments to apply House bill and the Senate amendment. The to them, and differences between the House bill, the Sen- Mr. LIVINGSTON. Mr. Speaker, I ask ‘‘(B) subject to paragraph (2), during the 61⁄2- ate amendment, and the substitute agreed to unanimous consent that when the year period beginning with 1992. in conference are noted below, except for House adjourns today, it adjourn to For purposes of this paragraph, the term ‘State’ clerical corrections, conforming changes meet at noon on Monday next has the meaning given such term by section made necessary by agreements reached by The SPEAKER pro tempore. Is there 210(h) of the Social Security Act (42 U.S.C. the conferees, and minor drafting and cleri- objection to the request of the gen- 410(h)). cal changes. ‘‘(2)(A) The Secretary of Health and Human tleman from Louisiana? EXTEND MEDICARE SELECT TO ALL STATES There was no objection. Services shall conduct a study that compares FOR THREE YEARS the health care costs, quality of care, and access f PRESENT LAW to services under medicare select policies with that under other medicare supplemental policies. The Omnibus Reconciliation Act of 1990 DISPENSING WITH CALENDAR The study shall be based on surveys of appro- (P.L. 101–508) established a demonstration WEDNESDAY BUSINESS ON priate age-adjusted sample populations. The project called Medicare Select under which WEDNESDAY NEXT study shall be completed by June 30, 1997. insurers can market Medicare supplemental policies (called ‘‘Medigap’’ policies) that are Mr. LIVINGSTON. Mr. Speaker, I ask ‘‘(B) Not later than December 31, 1997, the unanimous consent that the business Secretary shall determine, based on the results the same as other Medigap policies except of the study under subparagraph (A), if any of that supplemental benefits are paid only if in order under the Calendar Wednesday the following findings are true: services are provided through designated rule be dispensed with on Wednesday ‘‘(i) The amendments made by this section providers. The demonstration was limited to next. have not resulted in savings of premium costs to 15 states and expired December 31, 1994. The The SPEAKER pro tempore. Is there those enrolled in medicare select policies (in demonstration was extended to June 30, 1995, objection to the request of the gen- comparison to their enrollment in medicare sup- in the Social Security Act Amendments of 1994 (P.L. 103–432). tleman from Louisiana? plemental policies that are not medicare select There was no objection. policies and that provide comparable coverage). HOUSE BILL f ‘‘(ii) There have been significant additional Medicare Select authority is extended to expenditures under the medicare program as a all states which wish to participate until b 1815 result of such amendments. June 30, 2000. The Secretary of Health and ‘‘(iii) Access to and quality of care has been Human Services is to conduct a study of HOUR OF MEETING ON TUESDAY, significantly diminished as a result of such Medicare Select prior to 1998 to study cost, JUNE 27, 1995 amendments. quality and access for Medicare Select com- Mr. LIVINGSTON. Mr. Speaker, I ask ‘‘(C) The amendments made by this section pared to other Medigap policies. Medicare 1 unanimous consent that when the shall remain in effect beyond the 6 ⁄2-year period Select remains in effect unless the Secretary described in paragraph (1)(B) unless the Sec- finds that Medicare Select has: (1) not re- House adjourns on Monday, June 26, retary determines that any of the findings de- sulted in savings of premium costs to bene- 1995, it adjourn to meet at 10:30 a.m. on scribed in clause (i), (ii), or (iii) of subparagraph ficiaries compared to non-select Medigap Tuesday, June 27, 1995, for morning (B) are true. policies; (2) resulted in significant additional hour debates. ‘‘(3) The Comptroller General shall conduct a expenditures for the Medicare program; or The SPEAKER pro tempore (Mr. study to determine the extent to which individ- (3) resulted in diminished access and quality MCKEON). Is there objection to the re- uals who are continuously covered under a med- of care. quest of the gentleman from Louisi- icare supplemental policy are subject to medical SENATE AMENDMENT underwriting if they change the policy under ana? Same as the House bill except the exten- which they are covered, and to identify options, There was no objection. sion is until December 31, 1996. The Sec- if necessary, for modifying the medicare supple- f retary is to complete the study by June 30, mental insurance market to make sure that con- 1996. The General Accounting Office (GAO) is tinuously insured beneficiaries are able to MESSAGE FROM THE PRESIDENT to conduct a study on Medigap insurance and switch plans without medical underwriting. By report to Congress by June 10, 1996. The re- A message in writing from the Presi- not later than June 30, 1996, the Comptroller port is to include: (1) an analysis of whether dent of the United States was commu- General shall submit to the Congress as report there are problems in the current Medigap nicated to the House by Mr. Edwin on the study. The report shall include a descrip- system for beneficiaries who wish to switch tion of the potential impact on the cost and Thomas, one of his secretaries. Medigap policies without medical underwrit- availability of medicare supplemental policies of f ing or pre-existing condition exclusions; (2) each option identified in the study.’’. options for modifying the Medigap market to SPECIAL ORDERS And the Senate agree to the same. address any problems identified; and (3) an TOM BLILEY, analysis of the impact of each option on the The SPEAKER pro tempore. Under MICHAEL BILIRAKIS, cost and availability of Medigap insurance, the Speaker’s announced policy of May DENNIS HASTERT, with particular reference to problems with 12, 1995, and under a previous order of BILL ARCHER, Medicare Select policies. the House, the following Members will WILLIAM THOMAS, CONFERENCE AGREEMENT be recognized for 5 minutes each. NANCY L. JOHNSON, The conference agreement adopts the Sen- f Managers on the Part of the House. ate amendment with the following changes: The SPEAKER pro tempore. Under a BOB PACKWOOD, (1) Medicare Select is extended to all States previous order of the House, the gen- BOB DOLE, for three years (until June 30, 1998); and (2) DANIEL PATRICK MOYNIHAN, the GAO study is clarified to require analy- tleman from Pennsylvania [Mr. Managers on the Part of the Senate. sis of all types of Medigap insurance by re- CLINGER] is recognized for 5 minutes. JOINT EXPLANATORY STATEMENT OF moving specific reference to Medicare Se- [Mr. CLINGER addressed the House. THE COMMITTEE OF CONFERENCE lect. Reference to pre-existing condition ex- His remarks will appear hereafter in The managers on the part of the House and clusions is also removed as they are already the Extensions of Remarks.] prohibited under current law for Medigap re- the Senate at the conference on the disagree- f ing votes of the two Houses on the amend- placement policies. ment of the Senate to the bill (H.R. 483) to TOM BLILEY, The SPEAKER pro tempore. Under a amend title XVIII of the Social Security Act MICHAEL BILIRAKIS, previous order of the House, the gen- to permit Medicare select policies to be of- DENNIS HASTERT, tleman from Colorado [Mr. SKAGGS] is fered in all States, and for other purposes, BILL ARCHER, recognized for 5 minutes. H 6258 CONGRESSIONAL RECORD — HOUSE June 22, 1995 [Mr. SKAGGS addressed the House. There is also a similar lag time with But they could and should be good His remarks will appear hereafter in most major legislation passed by the for everyone. the Extensions of Remarks.] Congress, too. Our country could be booming be- f Anyone who blames a recession or yond belief—people could be doing two economic slowdown in the next year or or three times as good as they are—if SIGNS OF A RECESSION so on Republicans in Congress is either we would do the four things I just men- The SPEAKER pro tempore. Under a forgetting or ignoring the obvious. tioned: first, deregulate our economy; previous order of the House, the gen- First, most of the real changes second, balance our budget and start tleman from Tennessee [Mr. DUNCAN] is passed by the House have not been paying off the national debt; third, recognized for 5 minutes. passed by the Senate or have not been greatly simplify our tax code and basi- Mr. DUNCAN. Mr. Speaker, yester- signed by the President. Most of the cally eliminate the IRS; and fourth, day, the front page of the New York actions by the House have not even yet lower the tax burden on our people, at Times reported that some members of taken effect or actually gone into law. all levels, so they can spend their own the Federal Reserve Board ‘‘have pub- Second, despite all the publicity money wisely instead of having bureau- licly expressed concern that the econ- about so-called spending cuts, none of crats do it wastefully. omy is now in considerably worse these will go into effect until the next We could be booming, Mr. Speaker, shape than they had expected.’’ fiscal year begins in October. but because real change has not yet Even then, the cuts do not exceed the Two days ago, Washington Post col- taken place, there are many signs that growth in some programs, and thus umnist James K. Glassman wrote: we are headed into a recession that has overall Federal spending continues to ‘‘Don’t look now, but the recession been produced by our own Federal Gov- go up and will do so every year under may already have started.’’ ernment. the most conservative budget that has Mr. Glassman wrote that the White f been proposed. House is going to try to convince vot- Obviously our economy is on thin ice. The SPEAKER pro tempore. Under a ers that this is a Gingrich recession, So, what should we do? previous order of the House, the gentle- but then he says this: First, we need to drastically reduce woman from Connecticut [Mrs. KEN- Such a charge, of course, is nonsense, and the Federal regulatory burden. The NELLY] is recognized for 5 minutes. it’s hypocritical coming from a President most conservative estimates are that [Mrs. KENNELLY addressed the whose budget plan isn’t so different from House. Her remarks will appear here- that of his adversaries. Federal regulations now cost our econ- omy approximately $500 billion each after in the Extensions of Remarks.] Are we in a recession now? Well, the year. f economy lost 101,000 jobs in May. Sin- Second, we need to bring Federal gle family housing starts are at a 2- The SPEAKER pro tempore. Under a spending under control, cut our losses previous order of the House, the gen- year low. Unsold inventories have, in completely, and even start paying off the words of the New York Times, risen tleman from California [Mr. DORNAN] is our national debt is the only way to recognized for 5 minutes. sharply. really help the economy, and that is According to Bridgewater Associates, with uninflated dollars. [Mr. DORNAN addressed the House. a respected Connecticut firm that It is ridiculous that we cannot even His remarks will appear hereafter in measures the economy, retail sales are balance our budget until seven years the Extensions of Remarks.] wretched and second quarter GDP from now, at the least. If we balanced f growth is about minus 0.5 percent. the budget right now, we would still be The SPEAKER pro tempore. Under a I have spoken at least twice on this 1 spending over $1 ⁄2 trillion by just our previous order of the House, the gentle- Floor about our tremendous problem of Federal Government this year. We woman from Ohio [Ms. KAPTUR] is rec- underemployment. would not have a lean government, we ognized for 5 minutes. If you talk to any of these college would still have a fat, sassy govern- [Ms. KAPTUR addressed the House. graduates who can only find work in ment. A strong, active, vibrant govern- Her remarks will appear hereafter in fast food outlets or restaurants, if they ment is what we should have for that the Extensions of Remarks.] can find jobs at all, then you would kind of spending. know what I mean. I am sure they Third, we need to overhaul, and f would say we are in a recession. greatly simplify and reform our federal The SPEAKER pro tempore. Under a Like all recessions, though, the aver- tax code. We should greatly downsize previous order of the House, the gen- age consumer will not notice the full and decrease the power and cost of the tleman from New York [Mr. OWENS] is effects of this one until several months IRS. recognized for 5 minutes. after it starts. It is just crazy that our Federal tax [Mr. OWENS addressed the House. Thus most people will not notice this laws are so complicated and con- His remarks will appear hereafter in one, according to most economists, voluted. I am told that we waste at the Extensions of Remarks.] until very late this year, but really least $200 billion a year in time lost f more probably a few months into 1996. and expense incurred in IRS compli- The SPEAKER pro tempore. Under a What is the cause of this new reces- ance costs, keeping records, filling out previous order of the House, the gen- sion, or if not a recession, at least this forms, and so forth. tleman from Florida [Mr. severe slowdown? Finally, we need to lower taxes at all SCARBOROUGH] is recognized for 5 min- Well, I think most people would levels. The average person—not the utes. agree that our obscene national debt of wealthy, but the average—pays about almost $5 trillion and our continuing half of his or her income in taxes of all [Mr. SCARBOROUGH addressed the deficits, or losses, of almost $1 billion a types, Federal, State, and local, sales, House. His remarks will appear here- day, are the main problems. property, income, excise, Social Secu- after in the Extensions of Remarks.] Congressman ARMEY, a PhD econo- rity, and so forth. f mist, says the fault lies with the huge The least efficient, least economical tax increase passed by President Clin- way to spend money is to have Govern- HISTORY OF AGRICULTURE ton and the Democratic Congress in ment do it, because there is no real in- The SPEAKER pro tempore. Under a 1993. centive or pressure on Government em- previous order of the House, the gen- Lending credence to this view is John ployees to work hard and/or save tleman from Michigan [Mr. SMITH] is Mueller, chief economist for Lehrman money, as there is in the private sec- recognized for 5 minutes. Bell Mueller Cannon, Inc. The col- tor. Mr. SMITH of Michigan. Mr. Speak- umnist Glassman says Mueller believes Money left in the private sector cre- er, we will soon consider a farm bill there is a lag time of 2 years between ates 2 to 21⁄2 times as many jobs as does that warrants an examination of the actions of the Federal Reserve Board money turned over to Government. history of agriculture and a study of and their effects. Times are good now for some people. the lessons learned. There is linkage June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6259 between the modern American farmer of strip cropping, summer fallow and REPUBLICANS CARE MORE ABOUT and ancient Sumerian who worked the other conservation measures were MILITARY CONTRACTORS THAN land between the Tigris and the Eu- abandoned. In fact, by 1930 farmers had THOSE WITH THE AIDS VIRUS phrates. Both were responsible, indeed planted three times as much wheat as The SPEAKER pro tempore (Mr. farmers throughout history have been they had in 1920. To a large degree, the MCKEON). Under a previous order of the responsible, for their countries and the extra planting was an act of despera- House, the gentlewoman from Califor- progress of civilization. tion to survive. Soil conservation suf- nia [Ms. WOOLSEY] is recognized for 5 It has been said that in the last reck- fered. minutes. oning, all things are purchased with Ms. WOOLSEY. Mr. Speaker, last The drought began in 1933; the over- food. This was true in the cradle of civ- week my best friend’s son died. He was use made the land vulnerable to the ilization, and it holds true now. 33 years old, HIV positive, and died Today American agriculture is this winds that followed in 1934. Farmers from cancer—considered an opportun- country’s largest industry. Agriculture continued to harvest what little of istic disease related to HIV. accounts for a full 16 percent of our their crops they could, often driving Also last week, this House voted to current gross domestic product; 355 bil- their tractors in conditions so blinding invest $9 billion more than the Presi- lion dollars’ worth of food and fiber that they couldn’t see their radiator dent and the Secretary of Defense were produced this past year. That is caps, much less the fields they worked wanted, for bombers, missiles, and star more than any other industry. as the fertile topsoil blew away. When wars. And so it is especially important that wheat prices hit bottom during the I wonder how my best friend’s son we learn the lessons taught by the suc- Great Depression, more and more farm- would have felt about that if he were cesses and failures of the past. History ers abandoned their farms. still alive today. I wonder how he is awash with the remains of societies would have felt had he known that the In 1933 President Roosevelt started a Fed- that failed to maintain their soil, who new Republican majority were going to let it succumb to erosion, who let the eral program to limit production in order to take money away from AIDS research channels that fed it get chocked with help keep farm prices stable and encourage and put it into wasteful military pork. silt. The ancient city of Babylon, 2,600 special farming techniques like contour plow- Mr. Speaker, what are the values of years ago developed a productive agri- ing, crop rotation, and terracing that kept soil this body? Where are our priorities? culture. It allowed their civilization to on the farm and kept it fertile. However, prices The cold war is over, but we are spend- grow to 17 million people and a re- stayed low and poor farmers continued to ing billions of dollars on additional B– markably diversified society. King leave the land. In 1936 the Agriculture Adjust- 2 bombers and Trident D–5 missiles. Nebuchadnezzar even boasted that be- ment Administration was created to promote The war rages on for AIDS patients cause he developed a great productive soil conservation by issuing checks to farmers and their families, but we are taking agriculture the rest of his society ex- who adopted acreage reductions and wind their weapons away. Congress has celled. But eventually agriculture and controls on their farms. placed an arms embargo on the most farmers became a lesser priority in vulnerable people in this Nation, all be- In the United States Congress we’re that country, and it ultimately failed. cause the Republican leadership cares now engaged in a great agricultural de- Farmers abandoned the farms and more about military contractors than eventually the city collapsed. bate. We’re deciding what proper Fed- those who have contracted the AIDS Another example is the Promised eral agricultural policy should be. It is virus. important that the American people Land of the Sinai Peninsula. Moses f called it ‘‘the land of milk and honey.’’ understand that agricultural programs Farm production and conservation had been designed to encourage a con- FEEDING THE HUNGRY OF THE were neglected and eventually only tinuous but slight over-production. A NATION’S CAPITAL, AND REDUC- dregs of fertile soil remain at the bot- hidden goal has been to keep enough ING THE DEFICIT tom of narrow valleys. farmers and ranchers producing so that The SPEAKER pro tempore. Under a But there are also successes. Soci- an abundant supply would result in not previous order of the House, the gen- eties with plans promoting farmers and only lower food and fiber prices in this tleman from Florida [Mr. FOLEY] is farming survived and flourished. For country, but exports of low-priced com- recognized for 5 minutes. the last 1,000 years, farmers in the modities to assist in our balance of Mr. FOLEY. Mr. Speaker, I would French Alps with an eye toward con- trade. Huge stores of grain were held first like to talk about an issue of feed- servation have terraced hillsides in a by Government to be sold when farm ing the hungry in our Nation’s Capital. dramatic effort to prevent soil loss, re- prices went ‘‘too high.’’ I would like to thank my colleagues for sulting in continuously fertile soil, fer- the overwhelming response to our Dear tile agriculture, and abundant produc- Since the time of the first Dust Bowl Colleague letter, for the donations of tion. we have enticed farmers to become sweet potatoes that were distributed to more and more dependent on Govern- b their office. 1830 ment subsidy programs. As we move to I would like to especially thank the In this country the Dust Bowl of the a more market-oriented farm policy, it gentlemen from Louisiana, CLEO 1930’s affected over 150,000 square miles is important that we phase out sub- FIELDS and RICHARD BAKER, for their of fields in areas of New Mexico, Texas, sidies smartly. Research and tech- work with the Sweet Potato Council of Oklahoma, Kansas, and Colorado. For 6 nology is needed to conserve water and the United States, who gave each Mem- years, drought and blinding dust topsoil, increase the efficiency of pes- ber of Congress two cans of whole storms were constant. The fertile ticides and fertilizers, and maximize sweet potatoes. Mr. FIELDS and Mr. ground of much of the Great Plains was yields. Farmers must ultimately make BAKER generously donated three cases stripped and deposited in drifts over a profit if they are to continue to of sweet potatoes for the hungry. The millions of acres. Farms were buried produce for today’s needs and preserve sweet potatoes will be given to D.C. and families fled. The counties of the productive land for tomorrow. Central Kitchens, a local not-for-profit Dust Bowl lost nearly 60 percent of organization that provides 2,500 meals their population through migration. American consumers now spend 9.5 a day to men, women and children in The cause of this ecological disaster percent of their take-home dollars for area shelters and feeding programs. was largely the result of an overuse of food. With that 9.5 percent, they are Over 100 offices of the Members of the land. Following World War I, high able to buy the best quality, lowest- Congress have donated so far. It has grain prices enticed farmers to head for priced food in the world. In our haste, been so successful that we hope to re- the Plains. But those high prices didn’t we cannot undermine the agricultural peat this again. Several offices have last. As the wheat prices fell, the farm- base that made our country strong. We donated additional items. Every item ers became financially stressed and must not forget our own history. New is much appreciated. looked for short-term gain by planting Federal farm policy needs to help as- Mr. Speaker, I would like to com- more wheat. The long-term advantages sure a strong agricultural industry. mend my staffer, Jennifer DelVecchio, H 6260 CONGRESSIONAL RECORD — HOUSE June 22, 1995 who came up with this idea. Many to 8 percent, would be brought down ply wants an opportunity for higher times people come by our offices and over 2 points if we get the Federal Gov- education; or would you say that she bring us small tokens or some products ernment’s appetite for credit to be does not deserve it? I would venture to from back home. When we get such minimized, and the private sector say if she is typical, she has about 70 abundant products, some of which sit would then see relief for the average percent student loans that have to be on our shelves and go to waste, she consumer. paid back, and we understand that we thought it only appropriate that we However, no, not in this body. I see must make sure and ensure that we reach out and help those in our Na- money, I spend money. I see money have a system that ensures that recom- tion’s Capital, that the food really go they do not want, I will spend it over mitment back to the student loan pro- to use for those who truly need our here. Mr. Speaker, I say to the Mem- gram, and maybe only 30 percent schol- help. bers who are listening to this, they arship. She is typical of the student in Again, I would like to congratulate need to clearly reflect on what our pri- America today: hardworking. my colleagues in Congress for support- orities are. I think we should be in a Many campuses that I go and visit in ing this very, very worthwhile project. race to see who can save the most my district alone, which is only an ex- Mr. Speaker, let me speak for a mo- money. ample, whether they are the Houston ment on something that I think really The prior speaker suggested that the Community College, whether it is a 4- needs reform in the United States Con- Republicans are only interested in vot- year college in Chicago, IL, or maybe a gress. Yesterday in the Committee on ing for bombers and missiles and are private college in Atlanta, GA, there Science I had the good fortune of strik- not concerned with AIDS and other is- are hardworking students there. All ing what I considered wasteful spend- sues. This Member of Congress voted they simply want is an opportunity and ing in Congress. Twenty-five thousand against the B–2 bomber. This Member a chance. dollars was allocated to gas-cooled nu- of Congress does indeed support in- What do we have out of this process clear technology, which has been un- creased funding for AIDS research, be- of rescissions, budget, authorization, derway for over 30 years. The Depart- cause I think the cost to the taxpayers and appropriations? Cutting student ment of Science, the Department of will be exacerbated by the cost of AIDS loans, not for fiscal responsibility, Energy, all conclude that this proposal in our community. which I have standing to be here, be- is going nowhere, that commercial ap- Mr. Speaker, it is not fair to charac- cause I voted for a balanced budget, plication of this gas-cooled technology terize all Republicans as mean-spirited, but we do not have our interests and is going nowhere. only interested in defense and not in- our goals and our focus right. The President’s budget for three terested in social services. When we go to the House floor and times has consistently voted against it. f begin to talk about deadbeats in Amer- The Senate turned it down in 1993. RESCISSIONS, BUDGET, AUTHOR- ica, does that include those citizens However, somehow the $25 million has IZATIONS, APPROPRIATIONS who have fallen upon tragic hard times shown up in House appropriations. I in Oklahoma City? Does it include The SPEAKER pro tempore. Under won an amendment 25 to 15 to strike those who have faced tragedy and loss the Speaker’s announced policy of May this $25 million from the budget. in Florida, with the weather and hurri- 12, 1995, the gentlewoman from Texas, Today in the committee, however, canes? Does it include those individ- [Ms. JACKSON-LEE] is recognized for 60 Mr. Speaker, one of the Members de- uals and citizens in California suffering minutes as the designee of the minor- cided $25 million is too much to pass in the recent earthquake just about a ity leader. up, and offered an amendment which year ago or so? Ms. JACKSON-LEE. Mr. Speaker, re- was successful, to transfer that $25 mil- scissions, budget authorization, appro- America is a country of people. It is lion to another program. priation. Mr. Speaker, I imagine the people with aspirations. Yes, we should There is a problem here in Washing- American people are wondering what balance the budget, but what are we ton, and the problem is people in Con- holds up in the U.S. Congress, what is doing? During the rescissions process, gress cannot get their hands out of the the job and the tasks of those that which is taking back money, it seemed wallet, out of the checkbook of our Na- would represent us. that we could find nowhere else to cut tion’s taxpayers; that every dollar that We have heard these words: rescis- but summer jobs. That seems like is on the table, any dollar that is sion, budget, authorization, and appro- someone would be able to stand up and missed by an appropriator, any dollar priation. talk about ‘‘Oh, another handout.’’ I that is offered up as sacrifice for deficit Mr. Speaker, I rise today to speak to argue vigorously not, for summer jobs, reduction, is instantly claimed as an issue of great importance, not only which must include the partnership of found money, so they say ‘‘Let us get to the people of my Houston district, corporate America, give young people every cent of that $25 million and find the 18th Congressional District, but to the opportunity to work. It gives them something else to spend it on.’’ the entire country. It is interesting, the culture of work. It allows them to Mr. Speaker, I can only reach in my Members will hear my colleagues on have an understanding of what work is pocket so deeply to find the very few the other side of the aisle chastise, all about. dollars that are in it. Every dollar I criticize, and disjoint the pleas of the Although these particular youngsters come out with is my dollar. However, American people. What they will claim are not necessarily real, they do sym- in this institution, the dollars are is that this particular Congress is filled bolize what is good about America, the somebody else’s. The card that we vote with nothing but special interests, spe- fact that we have children who have an with is the world’s most expensive cial interests here, special interests opportunity to grow up strong, hope- credit card. We stick this in the ma- there, special interests over there. fully healthy, like many of the babies chine and we can spend billions of dol- I would simply say that this Nation and young people and elementary lars without any consequence. is not filled with special interests, it is school youngsters that I see in Wesley Mr. Speaker, I am somewhat appalled filled with special aspirations. We want Elementary School or Turner Elemen- when this Congress cannot come up to be inspired and challenged. We want tary School or Peck Elementary with a mechanism that when a Member to dream. We want a Nation that is not School or Pleasantville Elementary offers a deficit reducing formula to on the brink of a recession. We want School, located in the 18th district, save the taxpayers money, that saves economic enhancement and develop- along with the wonderful elementary money from wasteful spending, that we ment. schools in the North Forest Independ- cannot take that money and earmark Mr. Speaker, I would simply say, as ent School District, and Ailine, and it and lockbox it away to bring down we begin to look at this process—re- parts of Ailey. the Nation’s deficit. It is clearly one of scissions, budget authorization and ap- b our greatest problems. It clearly is propriation—why do we not understand 1845 driving up the cost of credit for con- what the special aspirations are of It simply exhibits that we have as a sumers. Americans? responsibility in this Nation to be fis- Clearly, the cost of credit for buying I would simply say that this young cally responsible but to take care of a home today, a 30-year mortgage, 71⁄2 lady, possibly an honors graduate, sim- our children. June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6261 Do you think it makes sense, then, to age, many in the inner city, some in the Clean Air Act as well but particu- cut a program called WIC, women and our rural communities, because they larly the Clean Water Act, many of our infant children, that not only provides are exposed, if you will, to more than local communities find themselves nourishment and nutrition for children we have ever been exposed to with re- with impure water, bad sewer condi- but in fact it provides opportunity for spect to violence and threats against tions, and not able to enjoy the quality young mothers to get their children their lives. They are feeling that of life we would like for Americans. immunized? What is the ultimate im- maybe they will not be able to get to Did you read recently the report pact of that? It means that we will come up to this young lady’s stage in from the Center for Communicable Dis- have less of those be subject to disease, life, happy, graduating from high eases told most Americans, ‘‘Boil your and lower health costs, and all of us school, looking for a dream. water before you drink it’’? Someone would like to see that. I understand that it is the ‘‘in’’ thing would say, ‘‘Are you sure you didn’t see What we have had happen is rescis- to talk about the other fellow. The Re- that in the paper back in the 1800’s?’’ sion, so the first part of this half a year publican majority has produced a docu- No, we saw that today. has been taking back money. It seems ment they call Cutting Government. It is extremely important that we that the knife-cutting has been on the There is not a one of us who would not not take short shrift to the role Gov- aspirations of young people and chil- sit down to the table of reason and talk ernment can play. Let me simply share dren, clearly taking away hope, and about downsizing, talk about making with you as we begin to look at how we not playing the role that the govern- government efficient. can be more successful in focusing in a ment should, not in charge, not domi- You know what the real dream is and more reasoned manner in dealing with nating but actually being a partner. the real focus? You should have a plan some of these issues. I am a strong supporter of the de- That is what we should be. behind cutting, not a mishmash of scis- fense of this Nation and of course, as I We have heard your cry from Amer- sors, going here and going there. I be- said, military readiness. That is a ica, and we know there are those who lieve in a lock box. If we save some dol- theme that everyone likes to promote may be a little misguided. I read an er- lars, there is an opportunity to put it and I think it is important. We want rant writer who wrote to a local paper, in a lock box for deficit reduction. But let us not lose our dream, our path, the our young men and women, our en- Don’t ask me to feel guilty for the inno- hope that we give to these young peo- listed men and women, to be secure and cent children of someone who is too lazy to protected and prepared. provide for them. Sorry, it just does not ple. work anymore. When you can find several The document proposes to eliminate However, I am also concerned about generations of welfare recipients living in three Cabinet departments, this Cut- families, children and the elderly. public housing, who live off of others from ting Government document, 284 pro- They, too, need our help as a partner. birth until death, something is wrong and grams and 69 commissions and 13 agen- Let us not take the ugly way out, the it’s just not my fault. cies, some of which we can get along castigating, the throwing stones, ‘‘It’s An easy statement to make. In fact, without, many of which have made it not my fault,’’ ‘‘I don’t care about in- as my children would say, that’s the through their time period of survival nocent children if the bums want to be ‘‘in’’ thing. ‘‘That’s fresh. That’s cool.’’ or purpose. on welfare.’’ That is what everybody is saying. That But yet if we look seriously and hon- Yes, I am reiterating this because I is what the polls say is something good estly about where we want to go in this think it is tragic, because Americans and cool and receptive to say: ‘‘Get rid Nation in the 21st century, we would be have always been individuals that have of the deadbeats. I don’t want to sup- appalled at the cost cutting in voca- risen to the challenge. But as we look port them.’’ tional job training. We would be lit- at this budget chart, we show the budg- But when you actually probe who is erally appalled at the programs for et allocations for 1996, and I ask you to on welfare, it happens to be many peo- Goals 2000. We would be literally overly pay particular attention to the deep re- ple who want to get off. Should we pro- overwhelmed, if you will, by the pro- ductions in Transportation, Labor, vide an incentive to get off? Of course. posals that would undermine the role Health and Human Services, Edu- Should we purge those who have been of Government, giving hope to those cation, VA, and HUD appropriations. Do you know what some of those on and not seeking employment? Of who would seek hope. These proposals do not represent HUD appropriations are all about? course. But to blanket and to label all budgetary surgery with intelligent Well, it takes some of the folk that of those folks as individuals who are scalpel-like precision. Instead, Mr. many of you see under the bridges, not my problem, somebody else’s prob- Speaker, these goals are tantamount to some who can be redeemed, some of the lem, is misguided, is not an example of crafting a fiscal policy with a meat homeless folk under the McKinney Act the true spirit of America, which is to cleaver. we were providing and going at full challenge people to be better and to Some people would say, well, these steam ahead to house individuals and give people a better opportunity. only impact on these soft programs. begin to turn them away from the As the Committee on Appropriations But when you cut housing, when you mindset of homelessness. marks up the various bills for fiscal cut veterans’ benefits, when you go I know it well, for when I served in year 1996, I am concerned that many into the infrastructure and cut trans- the city of Houston on its local city programs such as education and hous- portation dollars, you are literally council, I began to craft for that city a ing and job training will not receive turning the clock back. formula for working with its city’s adequate funding. They equal invest- You might have heard some years homeless, maybe about 10,000. There ment in America. ago the commitment of this Govern- were many naysayers: ‘‘You can’t do We can fight articulately and well for ment to rebuild America. Many of you anything with them. They like living programs like defense and space and re- may have read in your local news- under the bridges.’’ But when we began search, vital programs. But you cannot papers about the pending or the possi- to look, they were families, some of tell me you cannot imagine the value bility of a recession. That is why I am whom were living from paycheck to of matching that, creating the sci- hopeful, with the President’s budget, paycheck and because of some tragedy entist through education that will then that it is another opportunity for dis- in the household, they were made be at NASA, the technologist who will cussion of the best way to go. homeless. then be at the Defense Department who It does not take us away from a bal- Let me tell you, we have turned that will help us be militarily ready. Why anced budget. It simply provides a rea- problem around. We have got folk would we want to counter this young son and rationale for moving forward a housed in what we call transitional woman’s opportunity and my wonder- little slowly in a 10-year period. I housing. We have got the private sector ful dolls who are symbolic of all the would simply say to you that it is im- working with us. We have a downtown children in America? portant that we rebuild the highways corporate community actively engaged Have you listened to some of our of America, the bridges of America, the in helping the homeless, and we are children talk about their hopes and infrastructure work of America. getting folk off of the homeless rolls, dreams? Some youngsters today talk We are finding out that, as we have back into housing and being able to about their feet of living past a certain come under the Clean Water Act, and work as much as they want to work. H 6262 CONGRESSIONAL RECORD — HOUSE June 22, 1995 It is my challenge that we cannot something called the National Defense woman is right on track here, and I abide by such draconian cuts and a Education Act, that loaned me the thank her for her leadership in this withdrawal from investment in the fu- money necessary to complete college special order, and I will continue to ture. We must be considerate and and law school. It came to a grand stay here and join in, if I can, as she thoughtful. total back in the 1960’s of $7,500, which raises issues of mutual concern. When we look at these cuts and we I thought was a mountain of debt I Ms. JACKSON-LEE. I thank the gen- see that it has been reduced, as I have would never get out from under. Yet tleman for his very, very kind com- said, by $9.8 billion, look very carefully my wife and I worked and paid it off as ments but as well very, very pointed at what we are going after. We are we promised we would, so that younger comments. He has taken me back for a hurting cities. Cities are in fact the kids behind us could have their oppor- moment. If I may have the gentleman bastion, if you will, the heart and soul tunity. indulge me just a moment, sometimes of civilization. Rome likes to think When I listen to the proposals for when you come to share, you are so that, but cities are in fact where people budget deficit reduction from many of busy focusing on numbers that you do are energized. our friends among the Gingrich Repub- not put the face on who may be im- Let me include rural America, as licans that suggest that we need to cut pacted, and he took me back to my well, because as I talk to my colleagues back on college student loans, that from rural America, they assure me suggest we need to make the expense of early years, and I think it is important that many of the ills that confront us a college education that much more for because, let us be very frank, we are in cities are there in rural America, kids from working families, I think somewhat different. I think that is the and they need help with AIDS, they many of them have forgotten where face of America. It is important to re- need help with housing for the home- they came from. They have forgotten alize that as the gentleman’s history less, they need help with health reform that at a time in their life, this Gov- was, so was my history. I remember and health care, for I sat on a commit- ernment, this Nation, reached out a being the first to go to college in my tee in the State of Texas, and it ap- helping hand to them and was paid family. Hardworking parents, their palled me to see the number of rural back in a great measure because for main goal was to make sure their chil- hospitals closing because of the inabil- each of them who got that helping dren had a better opportunity and the ity to fund indigent patients in rural hand, there was an education, an op- time came for college and, of course, America. portunity, and I guess an opportunity was I even then going to college, much Can we stand for that? We can stand to contribute to America, not only as a less did we have funding to do so. Lo for more fiscally responsible health re- Member of Congress but in business and behold came this opportunity for form. We can be assured that we do the and in so many different areas. financial aid through and by a scholar- right thing and don’t have people abus- It seems to me so shortsighted for us ship and grant and loan. The gen- ing the system. But can we have hos- to be cutting back on college student tleman is right. The numbers seemed pitals closing because we are in the loans. I sincerely hope that my col- enormous at that time because I had budget-cutting business? leagues on both sides of the aisle will them in college as he did and fortu- Mr. Speaker, what this evidences is remember how significant this is. nately was able to go forth out of col- the fact that we have forgotten our di- If I might mention one other point lege and then decided, being inspired rection. We have forgotten the future along these lines, 75 percent of the and really viewing America as a place of America. young people who graduate from high that is a place of special aspirations, as I see my colleague from Illinois and I school are not going to end up graduat- I have mentioned, to go on to law know how hard he has worked on many ing from college. They are going to go school. Those numbers seemed enor- of these issues. In fact, he comes from out in the work force looking for good- mous, but I think as the gentleman has a district that has called upon him to paying jobs. They will need other types said we can count those who have made be of great service in this battle, and of assistance, job training, to make good on those student loans and the he has fought not for his single issues sure that they are qualified for good- broad brush of the problems with these but he has fought for Americans. paying jobs. programs that the Government in- I am very proud to yield to the gen- I worry, too, as the gentlewoman volves itself in is not the way that we tleman from Illinois [Mr. DURBIN]. points out the cutbacks that we are should go. Mr. DURBIN. Mr. Speaker, I want to making in training and employment I know the gentleman spent many of thank the gentlewoman from Texas for programs. She and I will be the first in his days in his district in May and taking this special order. I was back in line to suggest we need to modernize June at graduations and he actually my office going through my mail and I those programs, make them better. got to talk to students I would imag- listened to her, and I said I want to I would commend to my friend from ine, as I did. Each of them I think had come by and join my friend from Texas, if she has not read it, a book by stars in their eyes, holding that di- Texas, because her message is my mes- Hedrick Smith entitled ‘‘Rethinking ploma, being able to look for an oppor- sage. When you told the story about America,’’ where he basically compares tunity. There was not a dry eye in the the college student loans, that touches the educational systems in Germany, place. I had to talk to those parents, me very, very deeply. in Japan, and in the United States, and I was a recipient of Federal college many of whom had spent their life sav- shows some real deficiencies in our sys- ings and were in trouble, but they were student loans. My father passed away tem that need to be corrected. But we when I was a sophomore in high school. there clutching that purse, clutching also have to understand that in those that diploma, and hugging that child My mother was a payroll clerk for a countries that are successful in taking railroad. We literally did not have the to say we can work with you to make kids right out of high school, putting sure you go, and I know that there will savings or resources to take care of my them into good-paying jobs, career college education. be a little bit of change here and a lit- jobs, they have made a massive invest- tle bit of change there, but these are My mother and father had made it ment in training and education that is through the eighth grade. That was the hardworking people. Should I come to important to them. the U.S. Congress and take that dream extent of their education. They of Last week we had a debate here on a away from them? course hoped I would do better, as defense authorization bill, a question every parent does. But when the time about building multibillion-dollar The gentleman is right. What year is came to pay for those college expenses, bombers. this: 1995 going into 1996. In 4 years al- I took a job, as every student would, most we will be in the 21st century. Do b and worked during the school year and 1900 we want to be any less of a nation than during the summer months, and it just Let me tell you, I think a few less Japan, and as you mentioned England was not enough. bombers and a few more dollars spent and Germany and France and Italy, in I got a little scholarship assistance on education and training would go a terms of any focus they may have on here and there, but frankly had to turn long way for a much more secure work, job creation, and the training of to the U.S. Federal Government and America in the future. The gentle- our young people? June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6263 Mr. DURBIN. If the gentlewoman a white woman in Houston with two now we are going to invest in you as will yield, I would like to also com- children who came up to me, how iron- American citizens and your families, ment we spend so much time on this ic, and said the very same thing and and boy, did it pay off. floor talking about statistics and num- looked almost panicked because she Ms. JACKSON-LEE. What a boom in bers and percentages and budget out- was trying to grapple with and under- the fifties, was it not? lays, and all sorts of things which I am stand was I telling her tomorrow she Mr. DURBIN. The greatest growth in sure most of the viewers back home would not have a student loan, but cer- the size of America’s middle class in say, what in the world is that all tainly expressing a fear because she too our history. We may never rival it about. was leaping into the arena of independ- again. I hope we do some day. But the Ms. JACKSON-LEE. That is why I ence. country said as a nation our biggest started out with budgets appropria- The gentleman remembers how vigor- and most important resource is our tions, authorizations. ously we worked as Democrats for real people, and these veterans and their Mr. DURBIN. I am so glad the gentle- welfare reform. He remembers how vig- families are an investment we are woman did, and I think what we have orously we argued against welfare pun- going to hold very dearly when it to do too is try to translate some of ishment and what was the deal? Work comes to their education and housing the debate here on the floor to the real was the cornerstone of that proposal. It and businesses. lives, to the people we represent. was again an investment back into Ms. JACKSON-LEE. The gentleman If I can use an example, I went to a America and Americans so that we raises, if I can move to two other issues community college in my homeland, would take less people into the 21st that he reminded me of, and goes to Lincoln Land Community College, to century on welfare. How proud we the issue of investment and partner- talk about the increased costs of col- could be as a nation to be able to go ship. I think what we did when the vet- lege student loans from the Gingrich into the 21st century and look back on erans came back was actually the Gov- Republican proposals, and I asked the real welfare reform that had welfare, ernment being affirmative, but it was a students what impact this would have job training, child care and health partnership. It was to give those re- on them when the average student will care, and a work element to it. How turning veterans a leg up, and they got see an increase of $5,000 in the cost of proud we would have been. How much their leg up. They made good on their their college education because of we could have pointed to what the Gov- investment in terms of having served Gingrich Republican proposals, and a ernment would have been able to say, time. If they got some loans or some number of students said: This is tough, not that it dominated, not that it took other governmental help, they became Congressman, it is tough enough now. over, not that it spent too much, but it working Americans. They built all of We want to get out of school and get to partnershiped with the States and local the kind of tract houses throughout work. We stretch out our education be- government to get masses of people off this Nation, but they became home- cause it is so expensive, and now you of welfare and to be working Ameri- owners, taxpayers, and they raised tell me it is going to be more expen- cans in the 21st Century. their families. sive. Mr. DURBIN. If the gentlewoman The gentleman talked about how he So we broke up the meeting as I would yield, I think what we deter- had to work his way through, and most started to leave and a young lady came mined during the course of that debate of us did, with that summer job or up to me, an African-American lady. on welfare, we analyzed on the Demo- some kind of job. Interestingly enough She said: I was a little too embarrassed cratic side and the Republicans did it many of us rose to the floor of the to raise my hand, but let me tell you on their side, and I think frankly we House to fight vigorously against cut- my story. I am a welfare mother, I understood the parameters of welfare. ting our kids, cutting them off from have two children. I am coming out to Certainly there are people on welfare summer work. this community college and I have a as there are people in business and in Somebody made a lot of loose jokes college student loan. I said, ‘‘What are other walks of life who are going to try about this baby-sitting camp, they are you studying to be?’’ ‘‘I want to be a to take advantage of the system and standing around. I made it my business chef. I am trying to get the courses and game the system and stay on as long as to go back home and to reintroduce training so I can be a chef and make a they can. But I am impressed by how myself, if you will, because I have had good living and get off welfare,’’ she many people we meet who want to get youngsters work in my office in sum- says. ‘‘Now you tell me it is going to off this welfare tangle. They really mer jobs, and I can tell you I did not cost me more for this college student want to do something with their lives, see anyone being baby sat, if you will. loan.’’ She looked me in the eye and and we have to decide whether as a na- I tell you one personal story of a said, ‘‘What am I doing wrong? Why are tion we will invest in them and their youngster, I will never forget her, came you making it tougher.’’ future. And that investment is train- from a different background, was a re- We talk about welfare around here as ing, it is education, it is transpor- cent immigrant of some years, family if it is an easy thing for a person to get tation, it is day care, it is some health is now naturalized, Vietnamese, and off. In many cases it might be, but care assistance for them during this pe- called back one day after she was hired sometimes it takes hard work. She was riod of time. and said, ‘‘Ma’am, I think I won’t be putting in hard work, finding some- But think about it, if we do not do it, able to come.’’ We kind of calmed her body to watch the kids, going on out to if we just leave that person in the down a little bit and prodded a little school, taking the courses borrowing depths of despair, stuck on welfare, bit, and she said, ‘‘I don’t have the money to pay a college student loan, hopeless, they are not only a drain on right clothes.’’ We said whatever you and community college tuition is pret- society, they have lost their own self- have, we kind of tried to make it light, ty low, but she did not have it and had worth, and they really do not have a said if you have a paper bag, come on to borrow it, and now we are telling chance to succeed. So what we tried to to our office. But that young lady was her it is going to be more expensive for do on the Democratic side was say all concerned she did not even have the her to try to get off welfare and go to right, we will draw the line. You can- clothes to come sit in an office. She work and have some personal respon- not be on welfare forever, but for good- worked harder than any other young sibility. I think we have to remember ness’ sakes let us have a goal for each intern during that summer. She some people like her around this coun- person. Let us move from welfare to learned something as well. I have heard try who are behind these statistics and work. Let us make people productive great things about her since, graduat- standing behind these budgetary citizens in America today. That is an ing from college. names. I think you have pointed it out investment that will pay off for a long This is not a baby-sitting program. If here, and there are so many other time to come. It is one we made after we have got some, we will fix it. No one areas too that we ought to be address- World War II. has said not to fix those programs that ing. Ms. JACKSON-LEE. Clearly did. are not working, but I can go to the Ms. JACKSON-LEE. You tell her she Mr. DURBIN. We said to the return- city of Houston and find youngsters need not be ashamed because I con- ing veterans, we really invested in you getting good skills, getting an incen- fronted her sister, who happened to be as soldiers and sailors and airmen, and tive to finish high school and go on to H 6264 CONGRESSIONAL RECORD — HOUSE June 22, 1995 college because they have been exposed nities, Quincy, IL, was recently des- town on a regular basis, are then kept, to a workplace relationship. I would ignated as being on an interstate high- and that is a lot of dollars, the trans- not deny any corporate American to way. All of a sudden now they have a portation costs of going back and forth participate with us in this program. I chance to brag and say not only have and maybe the youngsters are going to do not think any of us said that that we got a great highway, it is interstate school on public transportation. It adds was not possible. But the Government standard. So you think about what this up, and every penny is counted in some steps in to give incentive and to pro- means to a community. If we do not families in America. You know, 14 mil- vide and to invest dollars in a worthy keep up that investment in not only lion of the families in America earn manner. our highways and our bridges and our under $10,000 a year, and so what we Let me add another point for your airports and ports, but in the people have is a situation where we are turn- thought about this. You come from an who build them, then frankly we will ing around and slicing ourselves in the urban area. What would we do without pay dearly in the future. wrong place because we are not invest- transportation? We can all debate on I watch some of these cuts that are ing in Americans and giving them the whether your urban transportation is coming down the line here. opportunity to go to that workplace mass transportation, train, rail, or Ms. JACKSON-LEE. $1.1 billion in and be part of the system. someone else’s bus or someone else’s transportation, by the way. And so I do not take very lightly any highway or bridge, but what would this Mr. DURBIN. $1.1 billion, and it not suggestions that the climate for busi- Nation be? Our forefathers left the 13 only affects what I have just described, ness has not been good when Demo- Colonies and found a way to go west, but it also affects mass transit. In the crats have been in, because I think we go west, young man, young woman, to city of Chicago, for example, so many have not come this far for them to be explore, and they got there through working families get on that mass able to achieve in the best Nation in transportation, and of course the way transit every day to get down to their the world for the kinds of corporations they got there was a four-legged ani- workplace. It is their only way to do it. that we have. They have enjoyed the mal. We now today are prepared to They cannot afford to drive and park. bounty of this Nation. make massive cuts. That is taking They have to take mass transit. Now And yet we now come to a point away from the opportunity for people we are seeing massive cuts in operating where we may undermine that very to grow. assistance. So these communities will structure that they have, the talent, I see people up here, tourists who see the fare box go up in cost, which and the trained employees that I have have visited this Capitol, many of means that families struggling now to had corporate executives tell me they whom have come by the transportation get by, husbands and wives both work- depend on. They wonder where the that includes the highways and the ing hard trying to make ends meet, trained workers will come from for the bridges of America. We are glad that have a new added expense because of 21st century. We are cutting transpor- they are here. We are glad they have this decision to cut back on operating tation for them to get there, and we the opportunity to freely flow through- assistance. It really raises a question are aimed, for cutting, if you will, the out this Nation in freedom. What about whether we are helping the right training for them, but yet I think, you would they think if they got to the end people. know, this issue, we still have a bil- of one bridge having traveled halfway I worry as much as the gentlewoman lionaire tax loophole. We allow those across the country and it was nothing does that we have to help all of Amer- folks to enjoy the bounty of this Na- but an open pit because it had col- ica, but I am particularly concerned tion. That means that they enjoy the lapsed because it was in such disrepair? about those who are struggling down at green lands, the wonderful capital. I Is that a focus on what is good for the bottom, those forgotten families at heard one colleague tell me what the Americans? Is that the cleaver mental- the bottom of the economic pyramid, percentage of what we are invested in ity of the Republican majority? Yes, it who pay their taxes, play by the rules, America, what each of us owns. We are is, the meat-cleaver approach. It does and keep falling behind. When we see millionaires, to be certain, about what not invest capital in Americans, in cuts in operating assistance for mass we own in this Government, and yet jobs, in businesses, that help us design transit, we are not making it any easi- those individuals will enjoy the boun- and build these infrastructures that er for them to get to work. ty, all of this goodness, and then have are needed for us to be the kind of 21st- Ms. JACKSON-LEE. If the gentleman to abdicate their citizenship and live century nation. would yield, I am glad he said that we somewhere else where they will not Mr. DURBIN. Mr. Speaker, will the are here for all Americans, because if I pay taxes. They are billionaires, and gentlewoman yield? can get just a little bit feisty for a mo- we are losing about $3.5 billion a year. Ms. JACKSON-LEE. I yield to the ment, I am darn mad about the accusa- Mr. DURBIN. The gentlewoman gentleman from Illinois. tion. I do not know about the gen- makes an important point. Most people Mr. DURBIN. What we should recall tleman. He has got Springfield and may have missed it. There was a tele- too is there is nothing partisan about parts of Chicago. I know he has a cor- vision special about folks who became what the gentlewoman has just said. porate community, and I know he has so rich that in order to avoid paying Possibly the greatest investment in worked with them, because I have Federal taxes, they renounced their modern times in America’s infrastruc- worked with the corporate community citizenship, and by renouncing their ture was made under a Republican in Houston. citizenship and becoming citizens of President, President Eisenhower, who some other country, they avoided their b decided in the fifties that the United 1915 Federal tax liability, so they used our States would embark on an Interstate Because I have worked with the cor- Nation, they used our resources, they Highway System. It was unheard of. He porate community in Houston and we used our people, they filled up their was going to link up every corner of have worked along the lines of making bank account, and then they skipped America through a modern highway their needs come before the United town, and what we have been trying to system. In my part of the world, my States Congress and insure the activity do, actually skipped the country, what hometown, Springfield, IL, is on old for a climate that will create jobs and we have been trying to do here is to Route 66. It used to be the subject of a a good business climate. No one, I change that and to say that is all over. lot of songs and a lot of Americana. guess, is against that. If you owe the Federal Government of But Route 66 was replaced by Inter- But I think that we fail and do not the United States taxes and you have state 55, and so many other interstate reach the mark. We do not get to the made a profit in doing it simply by re- systems. At the same time the middle finish line if we do not do what is good nouncing your citizenship, we are not class is growing after World War II for people. letting you off the hook. I am sorry we with our GI bill and our investment, We take that $1.1 billion away from could not get our colleagues on the America made an investment in infra- transportation, including mass trans- other side of the aisle to join us in this structure that has paid off so hand- portation, and Mr. and Mrs. Smith, effort. somely for us. It is the greatest thing who do not have a car or cannot afford Ms. JACKSON-LEE. Repeatedly we in the world when one of my commu- the gasoline that will take them down- have tried, have we not? June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6265 Mr. DURBIN. We tried it several That is what I think the American level to receive one. I have had them times. It strikes me as eminently sen- people need to understand. There is not actually say that. I appreciate the em- sible if a person earned his or her for- a lot of talk here without action. We ployer or a constituent who would say tune in this country, they should not worked on real packages that, if ac- they are concerned about the deficit, be able to get off the hook and escape cepted, would have been a fair biparti- they do want to ensure they have got the tax liability. These families get- san approach to this whole idea of, one, the kind of youngsters trained and ting on the mass transit every day in reducing the deficit, having a balanced other adults who need retraining, by your hometown and the city of Chi- budget over a period of years, which I the way. cago, they are paying their taxes. It is think many of us may agree with, but Let me speak just a moment to some- coming right out of their paycheck. we want to have focus and direction thing that is somewhat unpopular. They never think about renouncing and we want to protect the working That is what we are going to be facing their citizenship. They are proud of families of America. as foreign aid. I know many of our citi- their country. We could not strike that chord, that zens claim a great opposition to that. I am sure they get a little catch in unifying chord. What we actually had What is the direction of the Repub- their throat at the ‘‘Star Spangled were pages and pages of cuts going to lican Party, to cut aid to developing Banner’’ and watching the flag. the very heart of veterans, like our nations, that they want to get off, if Here we are protecting these folks good friend who is not a veteran but you will, the dependence that they who would walk away from America. certainly our hero we had in Bosnia. He have on this Nation? And I support That does not make any sense whatso- came back. We all praised him. Why that. ever. were we praising him? Because he had And so some of the programs that I sincerely hope we can address this the training, the training to know help independence, humanitarian aid; I in the near term because it is really a what to do. He saved himself, and he do not want to call any particular loophole in the Tax Code that must be made us proud of America. countries, but in particular to Africa changed. All through here are cuts that would where you are able to ensure that these Ms. JACKSON-LEE. Let me just impact on some aspects of what hap- individuals can stop coming to the draw you, as we begin to conclude on pened with that young man, who is a United States, and that is where we all where we are trying to take this Na- hero, aspects on his early education, want to be. We want to see a world that tion, because I believe what has been training, secondary education, high is standing on its own two feet, that misunderstood, as I have understood it, school, college, impact on housing on has people working, that has a country I have worked hard to be a part of the those who are trying to get job train- that stands up for helping their eco- process, is that we have solutions. We ing, all of these, a myriad of cuts. nomic development. did not totally ignore a tax cut. We had I do not think anybody paid any at- We do not know how that vote is a reasoned tax cut for citizens making tention to what they were impacting. going to come out, but what I have under $75,000. They just got lists. seen to date, it seems that they have There are solutions that can be bi- Mr. DURBIN. That point is an impor- taken the ax again, or the cleaver, to partisan. We, as Democrats, looked at tant one. The question is whether or programs that would allow those small whether or not any citizen making not we have to make cuts to balance countries to be independent, and I over $200,000 need a tax cut. I have had the budget. The answer is ‘‘yes.’’ The think we do the wrong thing when we them tell me they do not need it. question is: Should we make more cuts think taking dollars away, because we And so the tax cut that was offered, in order to give a tax break to wealthy do not know if those countries will fall a fair one, I might add, really spoke to people and to profitable corporations? then to some misguided political phi- the issue of getting to those working What the Republicans proposed in losophy, because they have not had the families. their Contract on America was a pack- opportunity, not to get a fish from us, Mr. DURBIN. I just will ask the gen- age of about $350 billion in tax breaks. but for us to teach them how to fish tlewoman to yield so it is clear the tax That meant, in order to move toward a and to be able to go ongoing into the cut package the Democrats support balanced budget, we had to cut another 21st century to be independent. was for families making $75,000 a year $350 billion in spending on other pro- Mr. DURBIN. Foreign aid is not pop- and less. grams, and we are down to the point ular in any quarter in America. People Ms. JACKSON-LEE. That is correct. now, there is still waste we can find, are very upset about it. Many do not Mr. DURBIN. The tax break package we are also finding they are proposing understand it. Sometimes it is humani- supported under the Gingrich Repub- cuts in education and health care and tarian in nature. lican contract actually gives tax things so critically essential to our Na- We have seen these heart-rending pic- breaks to families making $200,000 a tion. tures of people who are literally starv- year and more. A family could be mak- So does it make sense to cut a col- ing to death, mothers holding their ing $4,000 a week and qualify for the lege student loan in order to give a tax children as they starve to death in Gingrich Republican contract tax break to somebody making $200,000 a their arms, and we sense as Americans break, and I think the gentlewoman year? That is upside down. a feeling of compassion and caring to makes an important point here. We If we have limited resources, focus it come and provide our extra bounty so ought to focus on helping people who on the people who need it. that they do not die literally in the ready need it. What we said in our tax cut package dust covered with flies. That is what Ms. JACKSON-LEE. We had a plan. I was let us focus it, for example, on America has always been about, we think that is what is important. families that want to deduct the cost have always stood for. The other difficulty that I have is of college education for their kid. That I will tell you an area of foreign aid that many of the rescissions, remember is sensible. That says let them put to- the gentlewoman would agree with me I started out saying rescissions, budg- gether a little account for their kids’ on, and we really ought to take a look, et, authorizations, appropriations but college education and get some favor- and I am afraid we have not. That is many of the rescissions, taking away able tax treatment as a result of it. military foreign aid. When it comes to money, was not even to place it with a That is a good investment all around, sending our millions and often billions focus, to help us move into the 21st families doing the right thing for their of dollars overseas to protect Germany century, maybe giving some more son or daughter, the son or daughter and Japan, this Member has a real money to education. Those cuts they gets a chance of an education, and the problem. Here we are, 50 years after were doing was to give these people tax code is basically giving them in- World War II, and we are still defend- making over $200,000 more money, and centive instead of for the person mak- ing Japan? For goodness sakes, these not really focus on transportation, on ing $4,000 a week, handing them a tax folks are cleaning our clock when it military construction, or dealing with break which they will never even no- comes to the trade account. They ship the training program or having a real tice. all of their products here. They have a welfare reform package. That is the ex- Ms. JACKSON-LEE. I have had many trade surplus with the United States, asperation. say this is not the time for that income and we are sending millions of dollars H 6266 CONGRESSIONAL RECORD — HOUSE June 22, 1995 overseas for troops and ships and to face with Agent Orange with Viet- Ms. JACKSON-LEE. If the gentleman planes to protect Japan? nam veterans and others, and we need will yield, I tried to elevate the young The same thing is true in Europe. to ensure that we pay both our re- man to captain, but maybe because I For goodness sakes, now, the Berlin spects, like we like to do on these holi- was so impressed with his demeanor Wall is down. The cold war is over, and days, of which I join my veterans on and how he presented himself to the we still defend Europe 50 years later, Memorial Day, but we must show American people. while the Germans are investing and them, as we celebrate July 4, the Which reminds me of one of my invi- uniting their country and educating founding of this Nation, and what we tations to visit 6,000 men and women their work force, making better prod- stand for, that we respect and appre- on one of our nuclear submarines. And, ucts, a higher, I might say, standard of ciate them. really, the most impressive part of it living, unfortunately, than the United Why are we still taking care of the was the young men and women. Par- States, in many areas. That is military military overseas for other nations? ticularly the young men; I think this foreign aid which we tried to address Mr. DURBIN. One of the things that was a ship that did not yet have young on this floor in the name of I think is significant, and most Ameri- women on the ship. burdensharing, saying to our allies, ‘‘It cans are not aware of this fact, is that In any event, in addition to seeing is about time you share this burden we will spend about $270 billion in the the expertise that they had, I got some that we have carried for 50 years in next fiscal year on our military. I often personal stories as well. And I think this country.’’ ask in my town meetings if anybody in you realize that those who are on sub- But many of our friends who are the the audience knows which country in marine duty are out 6 months or so at first to say they hate foreign aid would the world is No. 2 in military spending a time and they leave their families not even consider touching this mili- and how much they spend. back home. tary foreign aid which costs us so dear- Well, most do not know, and it is al- And one in particular came up to me ly. most a tie between Great Britain and and mentioned that he was a single fa- Ms. JACKSON-LEE. That is why I France. Each of them spend about $45 ther with two girls who were living wanted to spend some time on solu- billion a year, one-sixth of the amount with the grandmother. And he pleaded tions, because what comes out of the that the United States spends, and yet with me about the need for a higher media and what trickles down to con- despite all of this expenditure, $270 bil- salary, because his youngsters were stituents is what are the solutions. We lion, six times more than any other na- probably on food stamps with his have had solutions. tion in the world, we still have soldiers mother who was taking care of them. What you have just talked about, and sailors on food stamps. He did not see them on a regular basis yes, I join you on that. It made perfect Ms. JACKSON-LEE. They are not and he was struggling to make ends sense, reasoned, logical planning of being paid enough in the service not to meet. But he was trying to be a good what we want this Nation to look like qualify for food stamps; still, their in- father and a good parent. in the 21st century. come is too low. That breaks your heart when you We all applauded the 50th-year cele- So the quality of life for men and hear those kinds of stories, because bration this past spring that we had women in the service is being sac- you know when we call upon him, if celebrating the great coming together rificed at a time when they are our anything was to happen and he had to and the great victories we had in Eu- most important investment. We put risk his life for us, for Americans, he rope in World War II. We celebrated, we money into these weapons, billions and would be right there to do it. I would embraced it, we went back to salute billions of dollars, and overlook the hesitate to have him have on his mind the heroes, they saluted us. We are in most important weapons system, the the needs of his children. And they do. sync. We are committed to each other, men and women giving their lives and The same thing with housing for our Europe and Japan. their time to serve in our American enlisted men and women. I again will But the question is, the question be- military. comes a very commonsense proposal bring up veterans. The same thing with that do we want to continue to pay for b 1930 facilities for veterans. Why would we military, and it leads very well, as we Ms. JACKSON-LEE. As exhibited by want to put them through that? Where move to July 4, what we are doing to the captain that was so heroic in this is the focus? Where is us capturing the our veterans. last month in terms of his coming out aspirations of Americans? It makes sense. We sit down to the of Bosnia. Let me add one other thing. I am bargaining table, we work out a proc- Mr. DURBIN. Lieutenant O’Grady. wearing this little patch because I was ess, we say if you get in jeopardy, we Ms. JACKSON-LEE. Yes. today with the physically challenged. come to the table, we come and rise to Mr. DURBIN. I like him a lot. I think And they are out supporting the Amer- the occasion. all of America fell for this fellow, be- icans with Disabilities Act, which will But during peacetime, to continue to cause he came out and it does us proud be impacted by many of these cuts, be- pay, time after time after time after to have fellow who has come through cause as you realize, the act requires time, over and over again, dollars to a such terrible ordeal and who says, modification. peacetime relationship, it seems to me ‘‘Don’t give me credit. Give the credit And these folks were not here asking that you are not investing your money to the rescuers. I was acting like a for handouts. They were not here whin- right. You are not making the right de- bunny, hiding in the bushes.’’ But when ing about their condition. They were cision. It is not saying that we are iso- he tells his story, we know it took a lot here in full force. They came from lationists or moving away from the of guts and bravery for him to make it across the country; many of them in international role that we need to through that. different challenged conditions, but yet have, because I support that. There are many more like him in the they got here saying, We just want a I think America needs to be strong. I service, and thank God there are. They chance. think we need to be there for our allies, deserve first-class treatment. And in- I promised them today in front of the but it makes no sense, to me, cutting stead of building these weapons system U.S. Capitol that I will give them a veterans’ benefits, having seniors come that cost so much money like star chance and that is what we are missing to me who are veterans saying that wars, we have put $40 billion in star out here. We are not giving Americans they are losing their benefits in health wars, this Ronald Reagan concept that a chance. care, as someone has told them, be- is going to protect the United States. I yield to the gentleman from Illi- cause they have got to cut costs. These We have little or nothing to show for nois. are people giving almost the extent of it. And now our friends on the Repub- Mr. DURBIN. If the gentlewoman their life, and we are grateful they did lican side say, let us spend another $30 will yield, I had a presentation last not lose it, to this country, and yet we billion and see what we can find. Monday in my hometown of Spring- are cutting the very benefits of those I say put the money in defending this field, IL, at the Land of Lincoln Good- who are in need. country and making sure that the peo- will Industries. They have been accred- We do not know what we may face in ple who serve in the service are treated ited for their rehabilitation activity Desert Storm or what we may continue with respect and dignity. and they take a lot of people facing June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6267 physical and mental challenges and Mr. DURBIN. I noticed, too, in my different locales and look differently. them to work in good jobs. They pay own district, a young lady who was a And that is why I think affirmative ac- them a modest amount of income, but single mother with two children and tion is something that Americans need really turn their lives around. one suffered from a severe learning dis- to understand. It is not a negative; it is I visited a license plate factory in De- ability. She was able to continue to go an even playing field. catur, IL, several years ago and the ad- to work, and continue to make money What we should say to Americans is: ministrator told me a story. She point- to help raise her family, because of the Understand that Democrats have solu- ed to a young woman who was working assistance she received from the Gov- tions. We have solutions. Your Member on the assembly line for these license ernment. has a solution. I have a solution for the plates and said, ‘‘When she first came And they asked her in this interview, 18th Congressional District. I do not to this facility we literally carried her What are you going to do if you do not want the State of Texas to lose $1.1 bil- in. She was considered to be an impos- receive that assistance? And she said, lion in rescissions and not go back to sible case; never capable of doing a ‘‘It is hopeless for me. I would have to any deficit reduction, but go to tax thing. We trained her and stuck with stay home and take care of my child. I cuts for those making over $200,000. her. You know what the problem is would not be able to work.’’ What I want is a plan; a plan to in- now, Congressman? When we have a big At a time when we are trying to re- vest in America. Those investments snowstorm and I want to close down duce welfare dependency, she is doing would count for infrastructure, for edu- this factory, I know she is going to the right thing. She is facing a chal- cation, for housing, for energy develop- show up anyway. She feels so dedicated lenge that many of us would wither ment, for space development for some to the job.’’ under and doing the right thing. And of us who are interested in making sure Many people with these challenges we are giving her a helping hand for we are at the high technological cut- and disabilities just need a chance. And that purpose. ting edge for the 21st century. It has to the Government comes through with I would hate to see us turn that hand be, I believe, an investment. that chance, giving them a helping and slap her and say, No, now you’re on f hand so they can be productive and your own. Show us how you can do it TERMINATION OF SUSPENSION OF have real lives. personally without our help, because ISSUANCE OF LICENSES FOR EX- Your commitment is one I share. And we know that just a little bit of help PORT OF MUNITIONS LIST ARTI- I really fear that the disabled will be has made a significant difference in her the first casualties of these budget cuts CLES TO PEOPLE’S REPUBLIC OF family’s future. CHINA—MESSAGE FROM THE and it would be sad for the future of Ms. JACKSON-LEE. I don’t know PRESIDENT OF THE UNITED our country if that occurs. what the answer would be for that STATES (H. DOC. NO. 104–87) Ms. JACKSON-LEE. I think your young woman, and that is why I am fears are well founded. They indicated trying to get this clear message that The SPEAKER pro tempore laid be- they felt concern about the education we need a focus and a direction; that fore the House the following message act that related particularly to the none of us are apart on the fact that we from the President of the United mentally and physically challenged, want the Nation to be strong with a States; which was read and, without the Americans with Disabilities Act, strong bottom line, moving toward def- objection, referred to the Committee the SSI, and Medicare and Medicaid icit reduction. on International Relations and ordered which they depend upon. to be printed: And what I started out saying, some- But where is the focus? Today I hap- times we think it is in to talk about pen to have voted against the congres- To the Congress of the United States: folk like that. Articles in newspapers sional appropriations bill. I did that be- Pursuant to the authority vested in or letters to the editor saying, Sorry, I cause I would almost imagine we could me by section 902(b)(2) of the foreign am not going to feel guilty. These peo- cut a little bit more. But I will say the Relations Authorization Act, Fiscal ple are deadbeats that are on welfare. direction was wrong. Years 1990 and 1991 (Public Law 101–246) But let me tell you that out of that Here they were, as I see tourists com- (‘‘the Act’’), and as President of the session I had today in front of U.S. ing to this Nation and this Capital rep- United States, I hereby report to the Capitol came a young woman who said, resents so much good. The Botanical Congress that it is in the national in- ‘‘I was an architect, but after a tragic Gardens, which needed some enhance- terest of the United States to termi- car accident and brain injury I am here ment, we get someone on the other side nate the suspension under subsection today to say I just need a chance.’’ of the aisle, a Republican, who wants 902(a)(3) of the Act with respect to the We had a good time out there. A few to cut the flowers out from Americans. issuance of licenses for the export to tears were shed. Because I think Amer- That is the kind of misguided direc- the People’s Republic of China of U.S. icans need to realize that people who tion. It does not mean we cannot come Munitions List articles, insofar as such find themselves in these conditions, to some conclusion about cutting the suspension pertains to export license physically challenged, mentally chal- budget. But I would think that if you requests for cryptographic items cov- lenged, are not just the other guy that asked an average American if they ered by Category XIII on the U.S. Mu- you might see that unfortunately was enjoy a botanical garden where flowers nitions List. born that way, but many of us in life’s grow and enhance the beauty of this License requirements remain in place journey may come upon these hard Capital, whether or not the few pennies for these exports and require review times, whether it is a tragic accident, that were going to be saved, and I can and approval on a case-by-case basis. but we live, and we thank God for that, tell them it was a few pennies that The Department of State, in consulta- but it may be leaving us in a condition would be saved, or whether or not that tion with the Department of Defense where we need the kind of support that was worth it. and other relevant agencies, will re- this training program could give or SSI What happened? No focus. Just a hap- view each request, including each pro- could give. hazard approach. Everybody with a posed use and end-user, and will ap- And I have heard some really, I meat cleaver. Me, me, me. I want to be prove only those requests determined think, thoughtless comments that the one that cuts. So, I think it is very to be consistent with U.S. foreign pol- some mothers are misrepresenting on important that we place the American icy and national security. forms so that a child could be listed as people first. That we ensure that we WILLIAM J. CLINTON. autistic. I do not know if anyone has understand what the Constitution says, THE WHITE HOUSE, June 22, 1995. seen an autistic child. I do not think but more importantly what the Dec- f that any parent would go to that laration of Independence said; we are length to be able to label the child au- all created equal with certain inalien- LEAVE OF ABSENCE tistic, just to be on SSI. able rights. And that equality is a By unanimous consent, leave of ab- I have seen real life cases. And we promise to Americans and a promise of sence was granted to: need to really invest in the American job opportunity. Mr. TORRES (at the request of Mr. people and the cases that we have seen And I might add just a note, it is a GEPHARDT), for June 21 and today, on before us for the future of this Nation. promise to those of us who came from account of personal business. H 6268 CONGRESSIONAL RECORD — HOUSE June 22, 1995

Mr. ACKERMAN (at the request of Mr. Mr. CONYERS. and Amendment Act of 1995,’’ pursuant to GEPHARDT), for today, on account of a Mr. BARCIA in two instances. D.C. Code, section 1–233(c)(1); to the Commit- death in the family. Mrs. MALONEY. tee on Government Reform and Oversight. 1078. A letter from the Chairman, Council Mr. SERRANO (at the request of Mr. (The following Members (at the re- of the District of Columbia, transmitting a GEPHARDT), for today, on account of of- quest of Mr. WILSON) and to include ex- copy of D.C. Act 11–64, ‘‘Arena Tax Payment ficial business. traneous matter:) Temporary Amendment Act of 1995,’’ pursu- Mr. MCHUGH (at the request of Mr. Ms. DELAURO. ant to D.C. Code, section 1–233(c)(1); to the ARMEY), after 3:15 p.m. today, on ac- Mr. STUPAK. Committee on Government Reform and count of official business. Mr. SERRANO. Oversight. 1079. A letter from the Federal Co-Chair- Mr. LAZIO of New York (at the re- Mr. WAXMAN in two instances. man, Appalachian Regional Commission, quest of Mr. ARMEY), between noon and Mr. HINCHEY. transmitting the semiannual report on ac- 2 p.m. today on account of attending Mr. JACOBS. tivities of the inspector general for the pe- the Women’s Veterans Memorial Mr. STARK. riod October 1, 1994, through March 31, 1995, groundbreaking ceremony at Arlington Mr. FOGLIETTA. pursuant to 5 U.S.C. app. (Insp. Gen. Act) National Cemetery. Mr. POMEROY. section 5(b); to the Committee on Govern- Mr. LATOURETTE (at the request of (The following Members (at the re- ment Reform and Oversight. 1080. A letter from the Secretary, Depart- Mr. ARMEY), after 4:30 p.m. today, on quest of Mr. CHRISTENSEN) and to in- account of personal reasons. clude extraneous matter:) ment of Defense, transmitting the semi- annual report of the activities of the Depart- f Mr. SOLOMON in three instances. ment’s Office of Inspector General for the 6- Mrs. MORELLA. month period ending March 31, 1995, pursuant SPECIAL ORDERS GRANTED Mr. PORTMAN in three instances. to 5 U.S.C. app. (Insp. Gen. Act) section 5(b); By unanimous consent, permission to Mr. WOLF. to the Committee on Government Reform address the House, following the legis- Mr. HORN. and Oversight. lative program and any special orders Mr. DORNAN. 1081. A letter from the Chairman, Federal Election Commission, transmitting proposed Mr. BAKER of California. heretofore entered, was granted to: new FEC Form 3P for use by authorized com- (The following Members (at the re- Mr. BRYANT of Tennessee. mittees of Presidential and Vice Presidential quest of Mr. WILSON) to revise and ex- Mrs. CHENOWETH. candidates, pursuant to 2 U.S.C. 438(d); to the tend their remarks and include extra- Mr. COBLE. Committee on House Oversight. neous material:) Mr. DOOLITTLE. f Ms. WOOLSEY, for 5 minutes, today. Mr. RIGGS. Mr. SKAGGS, for 5 minutes, today. Mr. HYDE. REPORTS OF COMMITTEES ON Mrs. KENNELLY, for 5 minutes, today. Mr. FRANKS of New Jersey. PUBLIC BILLS AND RESOLUTIONS Ms. KAPTUR, for 5 minutes, today. Mr. TAYLOR of North Carolina. Under clause 2 of rule XIII, reports of Mr. OWENS, for 5 minutes, today. Mr. STUMP in two instances. committees were delivered to the Clerk (The following Members (at the re- (The following Members (at the re- for printing and reference to the proper quest of Mr. CHRISTENSEN) to revise quest of Ms. JACKSON-LEE) and to in- calendar, as follows: and extend their remarks and include clude extraneous matter:) Mr. BLILEY: Committee on Commerce. extraneous material:) Mr. BENTSEN. H.R. 1062. A bill to enhance competition in Mr. CLINGER, for 5 minutes, today. Mr. JONES. the financial services industry by providing Mr. DUNCAN, for 5 minutes, today. Mr. COYNE. a prudential framework for the affiliation of Mr. DORNAN, for 5 minutes, today. Mr. HASTINGS of Florida. banks, securities firms, and other financial service providers; with an amendment (Rept. Mr. FOLEY, for 5 minutes, today. Mr. CAMP. Mr. SCARBOROUGH, for 5 minutes, 104–127 Pt. 3). Referred to the Committee of f the Whole House on the State of the Union. today. Mr. HYDE: Committee on the Judiciary. Mr. BURTON of Indiana, for 5 minutes ADJOURNMENT House Joint Resolution 79. Resolution pro- each day on June 27 and 29. Ms. JACKSON-LEE. Mr. Speaker, I posing an amendment to the Constitution of Mr. SMITH of Michigan, for 5 minutes move that the House do now adjourn. the United States authorizing the Congress each day, today and on June 28. and the States to prohibit the physical dese- The motion was agreed to; accord- Mr. HORN, for 5 minutes each day on cration of the flag of the United States ingly (at 7 o’clock and 41 minutes June 28 and 29. (Rept. 104–151). Referred to the House Cal- p.m.), under its previous order, the endar. f House adjourned until Monday, June Mr. GOODLING: Committee on Economic 26, 1995, at 12 noon. and Educational Opportunities. H.R. 1617. A EXTENSION OF REMARKS bill to consolidate and reform workforce de- f By unanimous consent, permission to velopment and literacy programs, and for revise and extend remarks was granted EXECUTIVE COMMUNICATIONS, other purposes; with an amendment (Rept. to: ETC. 104–152). Referred to the Committee of the (The following Members (at the re- Whole House on the State of the Union. Under clause 2 of rule XXIV, execu- Mr. GOODLING: Committee on Economic quest of Mr. WILSON) and to include ex- and Educational Opportunities. H.R. 1720. A traneous matter:) tive communications were taken from the Speaker’s table and referred as fol- bill to amend the Higher Education Act of Mr. BROWN of California. lows: 1965 to provide for the cessation of Federal Mr. PETERSON of Florida. sponsorship of two Government sponsored Mr. TOWNS in two instances. 1075. A letter from the Acting Assistant enterprises, and for other purposes; with an Mr. HAMILTON. Secretary for Legislative Affairs, Depart- amendment (Rept. 104–153). Referred to the ment of State, transmitting notification of a Mr. FILNER. Committee of the Whole House on the State proposed license for the export of major de- Mr. RAHALL. of the Union. fense equipment and services sold commer- Mr. QUILLEN: Committee on Rules. House Ms. HARMAN. cially to Norway (Transmittal No. DTC–33– Resolution 171. Resolution providing for con- Mrs. MEEK of Florida in two in- 95), pursuant to 22 U.S.C. 2776(c); to the Com- sideration of the bill (H.R. 1905) making ap- stances. mittee on International Relations. propriations for energy and water develop- Mr. CLYBURN. 1076. A letter from the Assistant Legal Ad- ment for the fiscal year ending September 30, Mr. TORRES. viser for Treaty Affairs, Department of 1996, and for other purposes (Rept. 104–154). Mr. SKELTON. State, transmitting copies of international Referred to the House Calendar. Mr. MCDERMOTT. agreements, other than treaties, entered into Mr. YOUNG of Alaska: Committee on Re- by the United States, pursuant to 1 U.S.C. Mr. GORDON sources. H.R. 1077. A bill to authorize the Bu- 112b(a); to the Committee on International reau of Land Management, with an amend- Mrs. KENNELLY. Relations. ment; (Rept. 104–155). Referred to the Com- Mr. CLEMENT. 1077. A letter from the Chairman, Council mittee of the Whole House on the State of Mr. DINGELL. of the District of Columbia, transmitting a the Union. Mr. SKAGGS. copy of D.C. Act 11–63, ‘‘Rental Housing Con- Mr. CLINGER: Committee on Government Mr. MATSUI. version and Sale Act of 1980 Reenactment Reform and Oversight. A Citizen’s Guide on June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6269 Using the Freedom of Information Act and termined by the Speaker, in each case for ligence (Permanent Select), for a period to the Privacy Act of 1974 to Request Govern- consideration of such provisions as fall with- be subsequently determined by the Speaker, ment Records (Rept. 104–156). Referred to the in the jurisdiction of the committee con- in each case for consideration of such provi- Committee of the Whole House on the State cerned. sions as fall within the jurisdiction of the of the Union. By Mr. HYDE: committee concerned. Mr. BLILEY: Committee of Conference. H.R. 1916. A bill to reform certain statutes By Mrs. VUCANOVICH (for herself and Conference report on H.R. 483. A bill to regarding civil asset forfeiture; to the Com- Mr. ENSIGN): amend title XVIII of the Social Security Act mittee on the Judiciary, and in addition to H.R. 1924. A bill to designate a site for the to permit Medicare select policies to be of- the Committee on Ways and Means, for a pe- interim storage of spent nuclear fuel; to the fered in all States, and for other purposes riod to be subsequently determined by the Committee on Commerce. (Rept. 104–157). Ordered to be printed. Speaker, in each case for consideration of By Mr. DINGELL: H.J. Res. 97. Joint resolution proposing an f such provisions as fall within the jurisdic- tion of the committee concerned. amendment to the Constitution of the Unit- PUBLIC BILLS AND RESOLUTIONS By Mrs. LOWEY (for herself, Ms. ed States to permit the Congress to limit ex- DELAURO, Mr. GEJDENSON, Mrs. KEN- penditures in elections for Federal office; to Under clause 5 of rule X and clause 4 NELLY, Mr. BONIOR, Mr. SMITH of New the Committee on the Judiciary. of rule XXII, public bills and resolu- Jersey, Mr. STUDDS, Mr. YATES, Mr. By Mr. EVANS: tions were introduced and severally re- MILLER of California, Mr. FRANK of H. Res. 172. Resolution supporting the Na- ferred as follows: Massachusetts, Mr. ACKERMAN, Mr. tional Railroad Hall of Fame, Inc., of Gales- burg, IL, in its endeavor to erect a monu- By Mr. STARK: ENGEL, Mr. MANTON, Mr. SERRANO, ment known as the National Railroad Hall of H.R. 1912. A bill to deter and penalize Ms. ESHOO, Mr. FILNER, Ms. PELOSI, Fame; to the Committee on Transportation health care fraud and abuse and to simplify Ms. WOOLSEY, Ms. FURSE, Mr. REED, and Infrastructure. the administration of health benefit plans; Mr. TORRES, Ms. HARMAN, Ms. NOR- to the Committee on Commerce, and in addi- TON, Mr. PALLONE, Mr. MCDERMOTT, f tion to the Committees on Ways and Means, Ms. LOFGREN, Mr. TOWNS, Mr. WAX- and the Judiciary, for a period to be subse- MAN, Ms. WATERS, Mr. DICKS, Mr. MEMORIALS quently determined by the Speaker, in each VENTO, Mr. WYNN, Mr. GONZALEZ, Ms. Under clause 4 of rule XXII, memori- VELAZQUEZ, Mr. JOHNSTON of Florida, case for consideration of such provisions as als were presented and referred as fol- Mr. MARTINEZ, Mr. MARKEY, Mr. BER- fall within the jurisdiction of the committee lows: concerned. MAN, Mr. HINCHEY, Mr. CONYERS, Mr. ´ 116. By the SPEAKER: Memorial of the By Mr. BAKER of Louisiana: ROMERO-BARCELO, and Mr. House of Representatives of the State of H.R. 1913. A bill to reform and improve the FALEOMAVAEGA): H.R. 1917. A bill to amend the Federal Louisiana, relative to Federal supported rural electrification loan programs under the Water Pollution Control Act to provide spe- sugar programs; to the Committee on Agri- Rural Electrification Act of 1936; to the Com- cial funding to States for implementation of culture. mittee on Agriculture. national estuary conservation and manage- 117. Also memorial of the House of Rep- By Mr. COYNE (for himself and Mr. ment plans, and for other purposes; to the resentatives of the Commonwealth of Penn- STARR, and Mr. LEWIS of Georgia): Committee on Transportation and Infra- sylvania, relative to memorializing Congress H.R. 1914. A bill to require the mandatory structure. to support the George C. Marshall Com- reporting of deaths resulting from the pre- By Mr. MATSUI (for himself and Mr. memorative Coin; to the Committee on scribing, dispensing, and administration of ENGLISH of Pennsylvania): Banking and Financial Services. drugs, to allow the continuation of vol- H.R. 1918. A bill to amend the Internal Rev- 118. Also memorial of the House of Rep- untary reporting programs, and for other enue Code of 1986 to modify the exclusion of resentatives of the Commonwealth of Penn- purposes; to the Committee on Commerce, gain on certain small business stock; to the sylvania, relative to memorializing the Con- and in addition to the Committees on Ways Committee on Ways and Means. gress of the United States to propose a con- and Means, and the Judiciary, for a period to By Mrs. MINK of Hawaii: stitutional amendment to authorize a prohi- be subsequently determined by the Speaker, H.R. 1919. A bill to amend the Internal Rev- bition against flag desecration; to the Com- in each case for consideration of such provi- enue Code of 1986 with respect to the treat- mittee on the Judiciary. sions as fall within the jurisdiction of the ment of certain personal care services under 119. Also memorial of the House of Rep- committee concerned. the unemployment tax; to the Committee on resentatives of the State of Maine, relative By Mr. SMITH of Texas (for himself, Ways and Means. to memorializing the Congress of the United Mr. BYRANT of Texas, Mr. GALLEGLY, By Ms. MOLINARI (for herself, Mr. States to extend the Maine territorial sea Mr. MOORHEAD, Mr. MCCOLLUM, Mr. ENGLISH of Pennsylvania, Mr. limits from 3 miles to 12 miles; to the Com- BRYANT of Tennessee, Mr. BONO, Mr. RAMSTAD, Ms. ROS-LEHTINEN, Mrs. mittee on the Judiciary. HEINEMAN, Mr. GEKAS, Mr. COBLE, VUCANOVICH, Mr. BURTON of Indiana, 120. Also memorial of the General Assem- Mr. CANADY, Mr. INGLIS of South Mr. KING, and Mr. PAXON): bly of the State of Indiana, relative to claim- Carolina, Mr. GOODLATTE, Mr. BARR, H.R. 1920. A bill to protect victims of do- ing sovereignty for Indiana with regard to Mr. BAKER of California Mr. mestic violence from health insurance dis- all powers not granted by the U.S. Constitu- BALLENGER, Mr. BEILENSON, Mr. crimination; to the Committee on Com- tion to the Federal Government; to the Com- BILBRAY, Mr. BONILLA, Mr. BREW- merce. mittee on the Judiciary. STER, Mr. CALVERT, Mr. CONDIT, Mr. By Mr. SERRANO: 121. Also memorial of the House of Rep- CUNNINGHAM, Mr. DEAL of Georgia, H.R. 1921. A bill to award a congressional resentatives of the State of Louisiana, rel- Mr. DREIER, Mr. DUNCAN, Mr. FOLEY, gold medal to Francis Albert Sinatra; to the ative to repealing the imposition of a 4.3 Mr. HAYES, Mr. HERGER, Mr. HUNTER, Committee on Banking and Financial Serv- cents per gallon tax on jet fuel which will Mr. SAM JOHNSON, Mrs. MEYERS of ices. otherwise become effective on October 1, Kansas, Mr. PACKARD, Mr. By Mr. SKAGGS (for himself and Mr. 1995; to the Committee on Ways and Means. ROHRABACHER, Mrs. ROUKEMA, Mr. MCINNIS): f SHAYS, Mr. STENHOLM, Mr. TAUZIN, H.R. 1922. A bill to provide for the ex- and Mrs. VUCANOVICH): change of certain lands in Gilpin County, CO; PRIVATE BILLS AND H.R. 1915. A bill to amend the Immigration to the Committee on Resources. RESOLUTIONS and Nationality Act to improve deterrence of By Mr. SOLOMON (for himself, Mr. illegal immigration to the United States by GOSS, Mr. HANCOCK, Mr. UPTON, Mr. Under clause 1 of rule XXII, increasing Border Patrol and investigative ZELIFF, Mr. NEUMANN, and Mr. ZIM- Mr. PETRI introduced a bill (H.R. 1925) for personnel, by increasing penalties for alien MER): the relief of Thomas McDermott, Sr.; which smuggling and for document fraud, by re- H.R. 1923. A bill to balance the budget of was referred to the Committee on Resources. forming exclusion and deportation law and the U.S. Government by restructuring Gov- f procedures, by improving the verification ernment, reducing Federal spending, elimi- system for eligibility for employment, and nating the deficit, limiting bureaucracy, and ADDITIONAL SPONSORS through other measures, to reform the legal restoring federalism; to the Committee on immigration system and facilitate legal en- Government Reform and Oversight, and in Under clause 4 of rule XXII, sponsors tries into the United States, and for other addition to the Committees on National Se- were added to public bills and resolu- purposes; to the Committee on the Judici- curity, Banking and Financial Services, tions as follows: ary, and in addition to the Committees on International Relations, Science, Commerce, H.R. 53: Mr. FAZIO of California and Mr. National Security, Economic and Edu- Resources, Rules, Transportation and Infra- CONDIT. cational Opportunities, Government Reform structure, Agriculture, Small Business, the H.R. 54: Mr. DOOLITTLE, Mr. CONDIT, and and Oversight, Ways and Means, Commerce, Judiciary, Ways and Means, Economic and Mr. FARR. Agriculture, and Banking and Financial Educational Opportunities, the Budget, Vet- H.R. 104: Mr. COLEMAN, Mr. KLUG, and Mr. Services, for a period to be subsequently de- erans’ Affairs, House Oversight, and Intel- BALDACCI. H 6270 CONGRESSIONAL RECORD — HOUSE June 22, 1995

H.R. 218: Mr. BRYANT of Tennessee. H.R. 1660: Mr. STUPAK, Mr. REYNOLDS, Mr. Central California, or Northern California H.R. 248: Mr. MINETA and Mr. STUDDS. ENGLISH of Pennsylvania, Mr. GENE GREEN of Planning Areas. H.R. 371: Mr. RAHALL. Texas, Mr. TORRES, Mr. FRANK of Massachu- H.R. H.R. 373: Mr. HERGER and Mr. LIPINSKI. setts, and Mr. ROMERO-BARCELO. (Interior and Related Agencies Appropriations H.R. 470: Mr. HOLDEN, Mr. CONYERS, and H.R. 1680: Mr. POMEROY. for Fiscal Year 1996) Mr. MCHUGH. H.R. 1700: Mr. MILLER of California and Mr. H.R. 491: Mr. NORWOOD, Mrs. VUCANOVICH, EVANS. OFFERED BY: MR. UNDERWOOD and Mr. LIPINSKI. H.R. 1715: Mr. BARRETT of Nebraska, Mr. AMENDMENT NO. 2: In title I of the bill, de- H.R. 530: Mr. SCHAEFER, Mr. BONILLA, and BEREUTER, Mr. BISHOP, Mr. BOEHNER, Mr. crease the amount appropriated for technical Mr. ROYCE. BURR, Mr. CANADY, Mr. CLYBURN, Mr. COBLE, assistance and maintenance assistance under H.R. 580: Mr. KLUG and Mr. HAYWORTH. Mr. COMBEST, Mr. GALLEGLY, Mr. GREEN- the heading ‘‘Territorial and International H.R. 703: Mr. REYNOLDS. WOOD, Mr. GUNDERSON, Mr. HOLDEN, Mr. JA- Affairs’’, by $2,580,000 and $2,000,000, respec- H.R. 752: Mr. KNOLLENBERG, Mr. SOUDER, COBS, Mr. LEWIS of California, Mr. MCCOL- tively. Mr. POMEROY, Mr. HYDE, Mrs. KELLY, Mr. LUM, Mr. OLVER, Mr. ORTIZ, Mr. PICKETT, Mr. In title I of the bill, appropriate $4,580,000 QUILLEN, Mr. WISE, Mr. DEFAZIO, Mr. LEWIS THOMAS, and Mr. WELDON of Florida. to Guam for impact aid under Public Law 99– of California, Mr. CLYBURN, Mr. JOHNSON of H.R. 1735: Ms. SLAUGHTER. 239 (relating to the Compact of Free Associa- South Dakota, Mr. LIGHTFOOT, and Mr. EV- H.R. 1744: Mr. KLECZKA and Mr. tion). ERETT. ROHRABACHER. H.R. 1868 H.R. 789: Mr. WALSH and Mr. PALLONE. H.R. 1753: Mr. STOCKMAN, Mr. STUMP, Mr. OFFERED BY: MR. BROWNBACK H.R. 820: Mr. ROHRABACHER, Mr. HOBSON, SERRANO, Mr. FILNER, Mr. ROMERO-BARCELO, Mr. LEVIN, Mr. FRISA, Mr. EDWARDS, and Mr. Mr. WALSH, Mr. TOWNS, Mr. MATSUI, Mr. AMENDMENT NO. 64: Page 12, line 8, strike GOODLATTE. MOAKLEY, Mr. HOLDEN, Mr. CALLAHAN, Mr. ‘‘$7,000,000’’ and insert ‘‘$3,000,000’’. H.R. 863: Mr. MARTINEZ. COSTELLO, Mr. MILLER of California, Ms. Page 13, strike line 18 and all that follows H.R. 882: Mr. YATES, Mr. LAHOOD, Mr. DIN- BROWN of Florida, Mr. CONYERS, Mr. STOKES, through page 14, line 11. GELL, Mr. BAKER of California, and Mr. Mr. CLINGER, Mr. LIPINSKI, Mr. LEWIS of Cali- Page 16, line 24, strike ‘‘$595,000,000’’ and FLAKE. fornia, Mr. WAXMAN, and Mr. BLILEY. insert ‘‘$619,000,000’’. H.R. 945: Mr. BROWN of California, Mr. H.R. 1764: Mr. ROHRABACHER. H.R. 1868 QUINN, Mr. DAVIS, Mr. Young of Alaska, Mr. H.R. 1774: Mr. HALL of Ohio, Mr. OFFERED BY: MR. BURTON of Indiana FRANKS of New Jersey, Ms. ROS-LEHTINEN, UNDERWOOD, and Ms. JACKSON-LEE. AMENDMENT NO. 65: Page 78, after line 6, in- Mr. OBERSTAR, Mr. MANTON, Mr. BEREUTER, H.R. 1775: Mr. FILNER. sert the following new section: and Mr. FATTAH. H.R. 1791: Mr. BURR, Mr. EHLERS, and Mr. H.R. 989: Mr. CONYERS. CARDIN. LIMITATION ON ASSISTANCE TO INDIA H.R. 997: Mr. BARTLETT of Maryland, Mr. H.R. 1821: Mr. BAKER of California and Mr. SEC. 564. None of the funds appropriated in CHAPMAN, Mr. ENGLISH of Pennsylvania, Ms. TORKILDSEN. this Act under the heading ‘‘Development KAPTUR, Mr. LIPINSKI, and Mr. POMEROY. H.R. 1876: Mr. PALLONE, Mr. LIPINSKI, Mr. Assistance Fund’’ may be made available to H.R. 1005: Mr. BARRETT of Nebraska. ACKERMAN, and Mr. GONZALEZ. the Government of India or non-govern- H.R. 1021: Mr. BALDACCI. H.R. 1893: Mr. PAYNE of Virginia and Mr. mental organizations and private voluntary H.R. 1023: Mr. EVANS, Mr. BROWN of Califor- LAFALCE. organizations operating within India. nia, and Mr. LEACH. H.R. 1897: Mrs. MINK of Hawaii. H.R. 1868 H.R. 1100: Mr. GUTIERREZ, Ms. PELOSI, Mr. H.J. Res. 79: Mr. CLYBURN. WAXMAN, and Mr. POSHARD. H.J. Res. 89: Mr. DAVIS, Mr. BURTON of In- OFFERED BY: MR. ENGEL H.R. 1143: Mr. KNOLLENBERG and Mr. DOR- diana, Mr. RAHALL, Mr. KIM, Mr. GUNDERSON, AMENDMENT NO. 66: Page 63, after line 4, in- NAN. Mr. MCCRERY, Mr. CHAMBLISS, and Mrs. sert the following new section: H.R. 1144: Mr. BRYANT of Tennessee, Mr. THURMAN. SEC. 540A. RESTRICTIONS ON THE TERMINATION KNOLLENBERG, and Mr. DORNAN. H. Con. Res. 10: Mr. JACOBS, Mr. MCDADE, OF SANCTIONS AGAINST SERBIA H.R. 1145: Mr. DORNAN and Mr. and Mr. WAXMAN. AND MONTENEGRO. KNOLLENBERG. H. Con. Res. 12: Ms. PELOSI. (a) RESTRICTIONS.—Notwithstanding any H.R. 1176: Mr. PORTER. H. Con. Res. 26: Mr. MARTINI, Mr. BENTSEN, other provision of law, no sanction, prohibi- H.R. 1229: Ms. SLAUGHTER. Mr. ENGEL, Mr. BLUTE, Mr. DORNAN, Mr. tion, or requirement described in section 1511 H.R. 1242: Mr. BAKER of Louisiana. SHAYS, Mr. WAXMAN, Mr. HUTCHINSON, Ms. of the National Defense Authorization Act H.R. 1274: Mr. HOKE and Mr. FRANK of Mas- NORTON, Mrs. MORELLA, Mr. WELLER, Mr. for Fiscal Year 1994 (Public Law 103–160), sachusetts. BERMAN, Mr. FORBES, Mr. PALLONE, Mr. with respect to Serbia or Montenegro, may H.R. 1279: Mr. COOLEY, Mr. RADANOVICH, SMITH of New Jersey, and Ms. SLAUGHTER. cease to be effective, unless— Mr. BAKER of Louisiana, Mr. BARTON of H. Con. Res. 54: Mr. PALLONE. (1) the President first submits to the Con- Texas, Mr. HEFLEY, and Mr. JONES. H. Con. Res. 63: Ms. PELOSI and Mr. SALM- gress a certification described in subsection H.R. 1299: Mr. BAKER of Louisiana. ON. (b); and H.R. 1362: Mr. FAZIO of California, Mr. H. Con. Res. 76: Mrs. SCHROEDER, Mr. WAX- (2) the requirements of section 1511 of that BARCIA of Michigan, Mr. JACOBS, Mr. PETER- MAN, Mr. VENTO, Ms. PRYCE, Mr. VISCLOSKY, Act are met. SON of Minnesota, Mr. STUMP, and Mrs. and Ms. MCKINNEY. (b) CERTIFICATION.—A certification de- SMITH of Washington. f scribed in this subsection is a certification H.R. 1381: Mr. BONIOR Ms. VELAZQUEZ, Ms. that— NORTON, Mr. FATTAH, and Mr. DELLUMS. AMENDMENTS (1) there is substantial progress toward— H.R. 1496: Ms. NORTON, Ms. EDDIE BERNICE Under clause 6 of rule XXIII, pro- (A) the realization of a separate identity JOHNSON of Texas, Mr. HILLIARD, Mrs. JOHN- for Kosova and the right of the people of SON of Connecticut, Mr. CRAMER, and Ms. posed amendments were submitted as Kosova to govern themselves; or JACKSON-LEE. follows: (B) the creation of an international protec- H.R. 1499: Mr. WELLER and Mr. BARTLETT of H.R. torate for Kosova; Maryland. (Interior and Related Agencies Appropriations (2) there is substantial improvement in the H.R. 1500: Mrs. CLAYTON, Mr. FLAKE, Mr. for Fiscal Year 1996) human rights situation in Kosova; GONZALEZ, Mr. HASTINGS of Florida, Mr. (3) international human rights observers OFFERED BY: MR. CUNNINGHAM MARKEY, Ms. MCKINNEY, Mr. NEAL of Massa- are allowed to return to Kosova; and chusetts, Mr. PALLONE, and Mr. REYNOLDS. AMENDMENT NO. 1: At the end of the bill, (4) the elected government of Kosova is H.R. 1544: Mr. MORAN, Mr. THOMPSON, Ms. insert after the last section (preceding the permitted to meet and carry out its legiti- VELAZQUEZ, and Mr. REYNOLDS. short title) the following new section: mate mandate as elected representatives of H.R. 1580: Mr. SCHAEFER. SEC. . None of the funds made available in the people of Kosova. H.R. 1594: Mr. BAKER of Louisiana. this Act may be used by the Department of H.R. 1868 H.R. 1595: Mr. SOUDER, Mr. DIAZ-BALART, the Interior— Mr. HASTINGS of Washington, Mr. JOHNSON of (1) to conduct a lease sale or issue a lease OFFERED BY: MR. ENGEL South Dakota, Mr. FROST, Mr. STUMP, Ms. for oil or gas under the Outer Continental AMENDMENT NO. 67: Page 63, after line 4, in- DUNN of Washington, Mrs. SMITH of Washing- Shelf Lands Act in the Southern California, sert the following new section: ton, Mr. FORBES, Mr. THORNBERRY, Mr. Central California, of Northern California SEC. 540A. SENSE OF CONGRESS RELATING TO SAXTON, Ms. ROS-LEHTINEN, Mr. MICA, Mr. Planning Areas; or RESTRICTIONS ON THE TERMI- LINDER, Mr. TALENT, Mr. SAM JOHNSON, Mr. (2) to approve any exploration plan, devel- NATION OF SANCTIONS AGAINST STEARNS, Mr. BLUTE, and Mr. GENE GREEN of opment and production plan, or application SERBIA AND MONTENEGRO. Texas. for permit to drill, or permit any drilling, for (a) RESTRICTIONS.—It is the sense of the H.R. 1610: Ms. SLAUGHTER. oil or gas under the Outer Continental Shelf Congress that, notwithstanding any other H.R. 1614: Mr. REYNOLDS and Ms. SLAUGH- Lands Act on any lands of the Outer Con- provision of law, no sanction, prohibition, or TER. tinental Shelf in the Southern California, requirement described in section 1511 of the June 22, 1995 CONGRESSIONAL RECORD — HOUSE H 6271 National Defense Authorization Act for Fis- H.R. 1868 shall use the amounts in the Fund to re- cal Year 1994 (Public Law 103–160), with re- OFFERED BY: MR. MILLER OF FLORIDA deem, or buy before maturity, obligations of spect to Serbia or Montenegro, should cease the Federal Government that are included in AMENDMENT NO. 70: Page 16, line 24, strike to be effective, unless— $595,000,000’’ and insert ‘‘$565,000,000’’. the public debt. Any obligation of the Fed- (1) the President first submits to the Con- eral Government that is paid, redeemed, or gress a certification described in subsection H.R. 1905 bought with money from the Fund shall be (b); and OFFERED BY: MR. BARRETT OF WISCONSIN canceled and retired and may not be re- (2) the requirements of section 1511 of that AMENDMENT NO. 3: Page 16, line 1, after the issued. Act are met. dollar amount, insert the following: ‘‘(less (e) DOWNWARD ADJUSTMENTS IN DISCRE- (b) CERTIFICATION.—A certification de- $5,000,000)’’. scribed in this subsection is a certification TIONARY SPENDING LIMITS.—Upon the enact- H.R. 1905 that— ment of this Act, the Director of the Office (1) there is substantial progress toward— OFFERED BY: MR. BARRETT OF WISCONSIN of Management and Budget shall make (A) the realization of a separate identity AMENDMENT NO. 4: At the end of the bill, downward adjustments in the adjusted dis- for Kosova and the right of the people of insert after the last section (preceding the cretionary spending limits (new budget au- Kosova to govern themselves; or short title) the following new section: thority and outlays) as set forth in section (B) the creation of an international protec- SEC. 505. Of the funds appropriated in this 601(a)(2) of the Congressional Budget Act of torate for Kosova; Act under the heading ‘‘Energy Supply, Re- 1974 by the aggregate amount of estimated (2) there is substantial improvement in the search and Development Activities’’, not reductions in new budget authority and out- human rights situation in Kosova; more than $10,000,000 shall be available for lays transferred to the Fund under sub- (3) international human rights observers hydrogen research. section (c) for such fiscal year, as calculated are allowed to return to Kosova; and by the Director. (4) the elected government of Kosova is H.R. 1905 permitted to meet and carry out its legiti- OFFERED BY: MR. BREWSTER H.R. 1905 mate mandate as elected representatives of AMENDMENT NO. 5. At the end of the bill, OFFERED BY: MR. KLUG the people of Kosova. add the following new title: AMENDMENT NO. 6: Page 16, line 2, insert H.R. 1868 TITLE —DEFICIT REDUCTION LOCKBOX before the period the following: OFFERED BY: MR. GOSS DEFICIT REDUCTION TRUST FUND; DOWNWARD AMENDMENT NO. 68: Page 78, after line 6, in- ADJUSTMENTS IN DISCRETIONARY SPENDING : Provided, That, of such amount, not less sert the following new section: LIMITS than $74,129,000 shall be available for photo- voltaic energy systems, not less than LIMITATION ON FUNDS FOR HAITI SEC. . (a) ESTABLISHMENT.—There is es- $25,329,000 shall be available for solar ther- tablished in the Treasury of the United SEC. 564. None of the funds appropriated in mal energy systems, not less than $40,000,000 States a trust fund to be known as the ‘‘Defi- this Act may be made available to the Gov- shall be available for wind energy systems, cit Reduction Trust Fund’’ (in this title re- ernment of Haiti when it is made known to not less than $28,115,000 shall be available for ferred to as the ‘‘Fund’’). the President that such Government is con- geothermal, and not more than $323,628,000 (b) CONTENTS.—The Fund shall consist only trolled by a regime holding power through shall be available for materials sciences: Pro- of amounts transferred to the Fund under means other than the democratic elections vided further, That within such $323,628,000, subsection (c). scheduled for calendar year 1995 and held not more than $113,954,000 shall be available (c) TRANSFERS OF MONEYS TO FUND.—The pursuant to the requirements of the 1987 for non-research, including (but not limited Secretary of the Treasury shall transfer to Constitution of Haiti. to) facilities and operations. H.R. 1868 the Fund an amount equal to the allocations under section 602(b)(1) of the Congressional H.R. 1905 OFFERED BY: MR. MENENDEZ Budget Act of 1974 to the subcommittee of OFFERED BY: MR. KLUG AMENDMENT NO. 69: Page 78, after line 6, the Committee on Appropriations with juris- add the following: diction over this Act minus the aggregate AMENDMENT NO. 7: Page 16, line 1 strike WITHHOLDING OF ASSISTANCE TO COUNTRIES level of new budget authority and outlays re- ‘‘$2,596,700,000’’ and insert ‘‘$2,576,700,000’’. SUPPORTING NUCLEAR PLANT IN CUBA sulting from the enactment of this Act, as H.R. 1905 SEC. 564. The President shall withhold from calculated by the Director of the Office of assistance made available with funds appro- Management and Budget. OFFERED BY: MR. KLUG priated or made available pursuant to this (d) USE OF MONEYS IN FUND.— AMENDMENT NO. 8: Page 25, line 6, strike Act an amount equal to the sum of assist- (1) IN GENERAL.—Except as provided in ‘‘$142,000,000’’ and insert ‘‘$0’’. ance and credits, if any, provided on or after paragraph (2), the amounts in the Fund shall the date of the enactment of this Act by that not be available, in any fiscal year, for ap- H.R. 1905 country, or any entity in that country, in propriation, obligation, expenditure, or OFFERED BY: MR. KLUG support of the completion of the Cuban nu- transfer. clear facility at Juragua, near Cienfuegos, (2) USE OF AMOUNTS FOR REDUCTION OF PUB- AMENDMENT NO. 9: Page 29, line 1, strike Cuba. LIC DEBT.—The Secretary of the Treasury ‘‘$103,339,000’’ and insert ‘‘$0’’. E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 104 CONGRESS, FIRST SESSION

Vol. 141 WASHINGTON, THURSDAY, JUNE 22, 1995 No. 103 Senate (Legislative day of Monday, June 19, 1995)

The Senate met at 8:30 a.m., on the The PRESIDENT pro tempore. With- Now, you say: How do they figure expiration of the recess, and was called out objection, it is so ordered. that out? How does the Congressional to order by the President pro tempore Mr. SANTORUM. I thank the Chair. Budget Office come up with the as- (Mr. THURMOND). f sumption that we need to cut spending an aggregate amount of $1.6 trillion? PRAYER MORNING BUSINESS They make certain basic assumptions, The Chaplain, Dr. Lloyd John The PRESIDENT pro tempore. Under economic assumptions. Ogilvie, offered the following prayer: the previous order, there will now be a The economic assumptions that the Great is the Lord, and greatly to be period for the transaction of morning Congressional Budget Office makes is a praised and His greatness is unsearchable. business. percentage growth in the economy. I will mediate on the glorious splendor of f They say, well, we estimate over the Your majesty—Psalm 145: 3, 5. next 10 years that the economy will Almighty God, help us to think mag- BALANCING THE BUDGET grow on average a certain percentage nificently about You: Your glory and Mr. SANTORUM. Mr. President, I per year. The estimates, frankly, if you grace, Your greatness and goodness, rise this morning to begin the fresh- look at them, are pretty flat. I think Your peace and power. We acknowledge man focus. The freshman class, all 11 of about 2.3 percent growth per year over that our prayer is like dipping water us of the 104th Congress, have taken the next 7 years because they were from the ocean with a teaspoon. What- about the role of coming to the floor on doing a 7-year budget. ever we receive of Your infinite wisdom a regular basis to focus the Senate on Now the President has come up with and guidance, it is infinitesimal in issues of importance really to the next 10. They extended it up to 10 years. It comparison to Your limitless re- generation of Americans. We believe does not take into account recessions. sources. So we come humbly and grate- that as freshmen we have a special role And most economists will tell you, fully to receive, to draw from Your di- to play in looking toward the future over the next 10 years we are scheduled vine intelligence what we need for to- and seeing how we can focus the atten- to have at least one recession, probably day’s deliberations and decisions. We tion of the Senate on solving the long- two recessions. Now, they may not be thank You for the women and men of term problems that face this country. deep recessions, but they will talk this Senate and their staffs who sup- Today, under the able leadership of about much lower rates of growth and port their work. Help them humbly to maybe even some negative growth dur- Senator THOMAS from Wyoming, who ask for Your perspective on has been a real champion in organizing ing that period of time. perplexities and then receive Your di- Now, what happens when we have re- this effort and bringing the freshman rection. Give them new vision, innova- cessions? Well, when we have reces- class in the Chamber on a very regular tive solutions, and fresh enthusiasm. sions, tax revenues go down, expendi- basis, we are going to talk about the We commit this day to love and serve tures to the Federal Government go up Clinton ‘‘budget.’’ When I say Clinton You with our minds. Today, when votes because unemployment claims go up, ‘‘budget,’’ I use the term ‘‘budget’’ in are counted on crucial decisions, help welfare payments go up, other kinds of quotes because we do not really have them neither to relish victory nor Government supports, safety net pro- what I think anyone would seriously nurse the discouragement of defeat, grams, are much more in use. but do everything to maintain the bond consider a detailed budget of how the The Congressional Budget Office, I of unity in the midst of differences and President is going to solve the deficit think, was sort of averaging out the then move forward. This we pray in problem that faces this country. In high and low periods of growth above 2 Your holy name. Amen. fact, we have 6 pages—photocopied on or 3 percent and periods of growth The PRESIDENT pro tempore. The both sides, that is 12 pages total—of below and saying, on average, it is Chair, in his capacity as a Senator budget specifics as to how he is going roughly 2.3 percent or maybe a little from the State of South Carolina, sug- to reduce the budget deficit to zero higher, 2.4 percent in the future. gests the absence of a quorum. over the next 10 years. They also make an assumption on in- The clerk will call the roll. Now, it is interesting; if you look at terest rates. Why are interest rates im- The legislative clerk proceeded to what is going to be required to balance portant? Well, when you have nearly $5 call the roll. the budget over the next 10 years, it re- trillion of debt that you have to fi- Mr. SANTORUM. Mr. President, I quires about $1.6 trillion in spending nance, interest rates are important. ask unanimous consent that the order cuts. That is according to the Congres- The higher the interest rates, the high- for the quorum call be rescinded. sional Budget Office. er the interest costs, the higher the

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

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VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00001 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8842 CONGRESSIONAL RECORD — SENATE June 22, 1995 deficit. So interest rate projections that. So what he has done is—we have ous about this and is honest with the also affect what the bottom line deficit growth of 10 percent per year pro- American public about how they are will be. So they have projected out in- grammed in because that is what Medi- going to balance the budget, I am going terest rates, again on a conservative care is doing. It is growing at about 10 to be back. basis, because again interest rates fluc- percent a year. We have that pro- I will be happy to yield. tuate. If you look at the last 10 years grammed in for the next 10 years. What Mr. THOMAS. If the Senator would of the history of this country, the in- the President has done is he assumes, terest rates went from double digits to yield. Let me first say how much I ap- first, that Medicare growth is not preciate and congratulate the Senator 3 to 4 percent. So you may see a wide going to continue at 10 percent, it will variation in the next 10 years. In the on his continuing efforts to get some only continue at 7 percent and then real understanding. I think some time next 10 years, you will see a wide vari- cuts from that. So, as a result, the cut ation. They try to work it out, act con- ago the freshman class, those elected is not as much, but the number is actu- to the body in November, came here servatively. You want to have realistic ally lower than the number that we are numbers here. And they came out with more dedicated to more serious work using. So he sort of cuts in part by as- to balance the budget than about any some interest rate projections. suming it away and cuts the other part Now, they use the combination of other issue. One of the most difficult by actually doing it. things for all of us, particularly people growth projections and interest rate So, to suggest that the President is listening and voters, is what are the projections to determine their basic going to cut Medicare less than we are real facts? I mean, we start out and ev- economic assumptions of what the def- or change Medicare less than we are is erybody wants to balance the budget. icit will be. And then they say, ‘‘Now, just ridiculous. His numbers actually ‘‘Well, we do not need an amendment,’’ to meet zero, you have to cut so much are lower than our numbers. money out of Government programs or So, I would just suggest, if you look they say. ‘‘We will do it.’’ Then we raise taxes to get to zero.’’ at the specifics of what the President come down to do it. But we cannot do How does the President accomplish has done, he has assumed away this it on the backs of these. You cannot do his 10-year balanced budget? Well, he budget deficit. He has suggested that it here. does not do it by looking at what the we can get rid of the budget deficit by I guess my question is: It is sort of Congressional Budget Office has done having rosy economic projections, rosy interesting that most of the Presi- and then making the spending cuts or projections on growth and interest dent’s budget is backloaded, and it hap- tax increases necessary to get to a bal- rates and not do the hard work of actu- pens after the year 2000. Now, that is 6 anced budget. In fact, in his plan he ally having to make decisions on how years from now. That is the rest of this has, instead of $1.6 trillion over 10 we are going to pare back the size of Presidential term and one other term. years which is needed to balance the Government. Is there any significance to the fact budget according to the Congressional As a result of that, as a result of his that most of the pain comes after the Budget Office, he has $1 trillion in cuts, unwillingness to face the music, to use year 2000? substantially less than what is nec- the Congressional Budget Office projec- Mr. SANTORUM. As a matter of fact, essary. Yet he gets the balance. tions, which he said in the State of the if you look at the percentage of the You say, How does he do that? How Union, just down at the other end of does he cut less money than is required cuts the President makes in discre- this hallway, right down here. Walk to get the balance and still get there? tionary and mandatory programs, all out the middle door here and just keep Here is how he does it. He does it by the cuts he has to make, 20 percent of changing the assumptions. He assumes walking and you will come to the them—we have 10 years in the Presi- a higher rate of growth in the econ- House of Representatives. And you dent’s budget. You would think that omy. He assumes lower interest rates. walk through that door and keep walk- the responsible thing to do would be to Sort of wishes it away. Just decides, ing, you will walk right into the po- cut the budget—if you are going to do ‘‘Well, we know we will have higher dium of the House of Representatives. 100 percent of his cuts, if you take all growth and lower interest rates, and as Right there, right at the other end of the cuts he is going to make, you do it a result we will have less financing the hall, the President got up and said, equally over the period of years, a costs. Because interest rates are lower, ‘‘We will use the Congressional Budget straight line, 10 percent a year; 10 we will have higher rates of growth, Office scoring because they have been years, 100 percent of the cuts. which means more tax revenues and the best at doing it. We all have to use What the President does is cut very less Government expenditures. So we the same numbers.’’ He said that. little the first year, cuts virtually will reduce the debt through economic Now, I know it is going to come as a nothing. In fact, of all the cuts he sug- assumptions.’’ shock to many that he has not lived up gests, only 2 percent occur in the first Well, that is nice. It is an easy way to his promise, but he did not. He is not year. If you look at the second year, to do it. I guess if he wanted to, he using their numbers anymore. Why? only 3 percent occur in the second could go back and just estimate even Well, the same reason every President year. After the first 2 years, when you higher growth rates and lower interest has not used their numbers. Because should have cut 20 percent to get on rates and not have to do anything. But their numbers are tougher. It is harder your line of 100 percent, he has cut 5 that is not real. to balance the budget when you use percent. You go to the third year, he What is the actual effect on the num- real numbers. It is easier when you get cuts 5 percent. So over the first 3 years bers? It is interesting. Look at Medi- your friends at the Department of the he has cut 10 percent of the amount care. Under the President’s budget, if Treasury to sort of wish this stuff needed to cut over the 10 years. away. Well, unfortunately we cannot you look at the President’s Medicare Where are the big cuts? Where is the wish it away. number, not what he says he is going big lifting, the heavy burden the last 2 to have to reduce spending by in Medi- Mr. THOMAS. Will the Senator yield? years, the last 3 years? Twenty percent care, but the actual amount of money in the last year; 18 percent the year be- he spends on Medicare every year over Mr. SANTORUM. If the Senator will suspend for 1 second. I want to make fore that; 15 percent the year before the next 10 years, in the first 3 years that. the President spends less on Medicare sure that we end with day 34 of the than we do, but it is not as big a cut as President’s unwillingness to come to I mean, well over—well, about 50 per- we have. Now, you say, ‘‘Wait a the American people with a serious cent of the cuts occur in the last 3 minute. How can that be? If he spends budget proposal to balance the budget. years. So he back-end loads this thing. less on Medicare next year than we do We are now in day 34, as I said before. He does not do heavy lifting early on. under the Republican budget, less on We only have 101 days to go before the It is left to the next generation, not Medicare in year two than we do on next fiscal year. As I said before, I will surprisingly, and next Presidents to Medicare and less on Medicare in year probably put a little thing over here deal with this. three, how can his cuts be less?’’ for the ‘‘1.’’ Hopefully I will not have Again, that is another form of wish- Well, he assumes a lower rate of to. Hopefully I will not have to come ing it away. I am sure every President growth in Medicare and then cuts from back. But until the President gets seri- has presented budgets at one point in

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00002 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8843 time that suggest they will balance the My question is, though, under the Mr. SANTORUM. I say to the Sen- budget, but they never suggest we do it best analysis—it is confusing—will this ator that the view he just expressed is starting now, they always suggest we 10-year budget that has been sent down a view that is shared by folks across do it down the road sometime. That is by the President balance in 10 years? the political spectrum. The Wash- not the responsible way to do it. Mr. SANTORUM. This is hard. It is ington Post yesterday, or the day be- Mr. ASHCROFT assumed the Chair. very hard for Members of the Senate fore, I do not remember which, edito- Mr. THOMAS. It is interesting that and I know the general public to look rialized—one of the great staunch de- Mark Phillips from the Concord Coali- and say, How does this all work, be- fenders of this President—editorialized tion says: cause you are looking 10 years down against the President and his budget Funny thing about these elusive outyears, the road, in the case of the Republican and his assumptions and how he went they never seem to arrive. budget 7 years down the road. about coming to his balanced budget Is it not also true that the tax reduc- How do they know what they are and said that the President hurt him- tions, the tax cuts the President has go going to do is actually going to accom- self and his credibility, which is dif- into effect much earlier than do the plish a balanced budget? Like anybody ficult to do, but it hurt his credibility spending cuts? else who has to deal with projections in by proposing a budget that simply is a Mr. SANTORUM. That is always the the future, whether you are a business- smoke-and-mirrors, wishing-the-prob- way it is with taxes. For example, you man making projections or a family lem-away kind of budget. can look at the Clinton budget in 1993. trying to save for a college education, So I think objective sources have We had tax increases and spending whatever the case may be, if you are looked at what the President has done cuts. Tax increases went into effect looking into the future and trying to and rejected it out of hand as a polit- right away. We felt all those tax in- plan things, everyone will tell you, ical document, going up on national creases immediately. What we have not every financial adviser, everybody else television, with a 5-minute address try- felt yet from the first budget in 1993 of will say, ing to, again, through speeches, con- the President is the spending cuts. Be conservative in your projection; don’t vince the American public he is on They do not come around. They have assume that things are going to be great, and their side. But when you see the ac- not occurred. So now we are back and everything. Let’s try to take a realistic, not tions, the actions do not match the having to make the tough decisions on worst case—because you don’t want to al- words. Whether it was on his health ways assume worst case—but take a realistic actually reducing spending. care speeches or whether it is on his Again, the Senator is right with the underestimation of what you think will hap- welfare reform speeches or whether it tax cuts. The President wants to get pen and plan on that. That is sort of a good is on the budget deficit, the President the tax cuts in now because it is elec- conservative way to look at it. Don’t give it up, don’t give the store all away by wishing will give a great speech. He will give a tion time; you want to help people out, rosy projections. great speech. He always does. He is a give back a little of their taxes. Now he That is what the Congressional Budg- good communicator, and he will get up wants to cut them right before the et Office has done. What the President and give a great speech about what he election. It is clear, the spending cuts has done has really not been the pru- believes in. But do not listen to the do not come. Mr. THOMAS. One question. This is dent thing to do. What he has done is speech, watch what he does. Look at sort of unclear. We had the President, just assume everything is going to be the documents. Look at the plans. of course, and his advisers saying it great, that we will not have a reces- Look at what he actually is proposing. was not prudent to set a time. That is sion. Ignore the speech and watch the ac- when we had 7 years and he had no Think about this, that we will not tions, and you will find that the speech budget. Now he has a time and Mrs. have a recession in the next 10 years; does not match the actions and the ac- Tyson says that is exactly what we that we will not have high interest tions come well short of what is needed should do, even though she decried it rates over the next 10 years, that ev- to solve these problems. before. erything is going to continue to grow Mr. INHOFE. Will the Senator yield Mr. SANTORUM. Decried it, she was at a very steady and healthy pace over on that point for a moment? outraged that someone would do this. 10 years. Never has that occurred in a Mr. SANTORUM. Yes, I yield. This was going to be the fatal blow to post-World War II economy. Never has Mr. INHOFE. I had an experience I our economy. She went at great length that occurred. But yet the President will share with the Senator. As I do to say that setting a time certain to estimates that to be able to achieve his every Thursday morning, I did a talk bring the budget into balance would be goals. radio show back in my State of Okla- disastrous for the economy, and now So as a result, I think most econo- homa. I am sensing something that I that the President has been convinced mists who have looked at this have did not sense in the last few years and to do it, it is now a good idea. said this is unrealistic, this is not that is an awareness—and I think It amazes me, it absolutely amazes going to happen and what the Presi- maybe this came with the election of me how they just—as Representative dent has done is simply not belly up to November 1994—the people are finally OBEY from Wisconsin said about the the bar and tell us how he is going to aware of what is really going on in this President of his party—President Clin- really do this. As a result, we are going country. ton’s decision is like the weather, if to see deficits. If we go the Clinton They brought this up and I went back you do not like it, wait and it will route, we are going to see deficits well and looked it up. They said they have change. I think that is pretty much the into triple figures, well into the bil- added up the figures—maybe you al- way his advisers see it, that he has no lions. ready talked about this—but in this re- responsibility to tell the country what Mr. THOMAS. I thank the Senator. I vised budget he sent down, the figures they believe; their responsibility is to have to say, again, I cannot think of come up, according to CBO, to over $1 tell the President a line on what they anything more important to this coun- trillion added to our debt. believe. try and more important to all of us Keep in mind, this is from a talk Mr. THOMAS. The Senator is right. than having a legitimate debate about radio show, listeners calling in from Mrs. Tyson, on February 6, said that facts with regard to balancing the Oklahoma today stating that they are their deficit path is a sound deficit budget, and the idea that somehow we actually aware of how much this is path, both for the economy in the near can politically balance the budget and being added to the debt. For so many term and forcasting the economy, the pain comes in 10 years and we doc- years, the average person in America something she said they were dealing tor the figures so that it looks good did not really stop and think about the with, that they have it under control. simply does not deal with the problem difference between deficit and debt. So This was in February, and then this that is a real national problem to you they listened to the President come in body rejected that budget 99 to zip. She and to me and to our kids and our and talk about, as President Clinton said more recently that we have to bal- grandkids. did during his campaign, that he had a ance the budget, we want to get a bal- So I appreciate very much the efforts program that was going to eliminate anced budget and to do it in a time cer- that the Senator has made to seek to the deficit and had great deficit reduc- tain that makes some sense. get these facts out. tions.

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00003 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8844 CONGRESSIONAL RECORD — SENATE June 22, 1995 I have often recommended to people pay 82 percent of his lifetime income Now, have we gone so far in this to read an article that was in Decem- just to support Government. country, where this generation of ber’s Reader’s Digest called ‘‘Budget I remember the other day during our Americans cares more about them- Baloney’’ where they describe how poli- national prayer breakfast we had some- selves than about their families and ticians try to deceive the people back body from one of the Communist coun- their futures? If we have, what does home as Clinton is trying to do today tries prior to the time they got their that say about the likely prospects for by making them think that they have freedom. He bragged and said they only the future of this country? have to give the Government—he said, a program that is going to eliminate or What we have is a bunch of people, ‘‘We get to keep 20 percent.’’ I said, cut the debt in some way. They de- including the President, who come be- ‘‘What do you mean?’’ He said, ‘‘Every scribe it this way: Suppose you want a fore the American people and try to $10,000 car but only have $5,000; you tell month or so, we have to give the Gov- ernment 80 percent of everything we scare them into believing that some- everybody you really want a $15,000, so how we are going to hurt them and you settle for a $10,000 car, so you have make.’’ And he is celebrating that. I thought about that. Senator that we, the Republicans, do not care cut the deficit by $5,000. That is essen- about them, and scare them into keep- tially what he is trying to do. SANTORUM’s newborn baby is going to have to pay 2 percent more than that ing the status quo in place, which they The American people are awake now know hurts future generations, but, and the people know the difference. to support Government if we do not make a change. He is too young to be frankly, future generations do not vote They are better informed. And if any now. message came from the election of No- able to come in and lobby and say do vember 8, it is that we are tired of the not do that to us. Mr. INHOFE. I suggest to the Sen- smoke and mirrors, as the Senator So we hear from all these people say- ator from Pennsylvania, your father from Pennsylvania describes it so accu- ing they are going to cut these social sounds like he was a student of history rately, and we want action for a programs. Here we are with a defense and he looked at what this country is change. system right now that is going to be all about. It reminds me that if we re- I remember in 1993, in his budget down below what it was in 1980 when member in our history, when de message, the President stood in the we could not afford spare parts. Those Tocqueville came here, he came over to House Chamber and said that the CBO things we really need Government for study our business system. He was so is the most reliable operation here— are being neglected by this administra- impressed with the great wealth this not OMB, not any of the rest, but CBO. tion, and I think the people have awak- Nation had accumulated that he wrote Yet, CBO says that his deficits are ened. a book. The last paragraph says that Mr. SANTORUM. I want to say that going to average, over the next 10 once the people of this country find out the Joint Economic Committee is years, about $200 billion. So we are they can vote themselves money out of going to have a hearing on the Presi- talking about a $2 trillion increase in the public trust, this system will fail. dent’s budget. I am a member of that our national debt. The people are not We are so close to that point, and committee. I am looking forward to yet, this great discovery that was re- going to tolerate that. hearing the President’s people on his Mr. THOMAS. If the Senator will flected in the election of November budget and these economic assump- yield, it seems to me there are a couple shows me that people are saying that tions. of reasons why we are becoming more It is, in my opinion, a very cruel we are almost there and we cannot af- aware—tangible reasons. We have had a hoax on future generations, and on the ford to let it continue. debt and deficit for a long time and we current electorate, to suggest that we The one thing that the three of us all kind of brushed it off and put it on can balance the budget without doing have in common is we are all freshmen, the credit card. But now we are going the things that are necessary in reduc- we are new here. I think maybe that is to have to raise the debt limit $5 tril- ing spending and changing Govern- why we are a little bit more exercised lion this year and probably another one ment, and that are required by any on this. We remember the mandate before this administration is out. sound economic view of the future. We very well. That is all I heard during Second, interest payments become are going to talk about that today. not just the election, but I have had 77 probably the largest single line item in Senator MACK has stepped up and said town meetings since the election. The the budget next year—probably more we are going to look at the Clinton first thing coming out of the chute is than defense. So that becomes real. It budget, examine it and give him an op- the budget. ‘‘I do not care what you do, takes money out of people’s pockets portunity to convince us that he is do something to stop the deficit.’’ That and from other things. Finally, there is right. I am looking forward to that. I is what we are committed to doing. the example, it seems to me, of Medi- am willing to give the President and care. It is not a question of whether Mr. THOMAS. The Senator men- his people their day, but I am very dis- tioned something about de Tocqueville. you do something; it is a question of tressed at this continuing pattern of whether you have reform, or you will Earlier in his book he said, as he this President, just trying to pull the looked at the new democracy and he be into reserves in 2 years and broke in wool over the eyes of the American 7 years. So we have played with this as looked at the new system of people public. governing themselves, which at that an abstract thing over the years, I be- The fact of the matter is that the time was a new experiment, he said lieve, and now all of us are beginning folks, like my son, Daniel, who was that the strength of this country was to believe it is not abstract. It is very born on Father’s Day, are the people people doing for themselves and help- real and it is there. I just think it is so that are going to have to pay the price ing each other on a local community important that we deal with facts. and consequences of the actions we basis. That is very true. Now we move There is some pain involved. But to try have today. Somebody has to come to more and more—and the budget has to and act as if there is none, that just the floor of the Senate and defend do with the direction we take in Gov- will not handle the problem. those children’s future. The Senator ernment, certainly. When we decide to Mr. INHOFE. I agree with the Sen- from Oklahoma is right. They do not have less Government which is less ator. But when you say there is pain have a chance to talk for themselves, involved, look at the pain that is asso- so someone has to stand up and do it costly, we do that as a philosophy, and ciated with continuing on the road we for them. most everybody subscribes to that. are on right now. The Senator from My father is an immigrant to this This is the labor that goes with it to Pennsylvania just had a young child, country, and I remember talking to my cause that to happen. You know, it is and I congratulate him. I hope people grandfather on many occasions about all tied together, and we cannot be re- realize this young man just had a why he came to this country and sponsible morally and fiscally, unless brand-new baby boy. During that baby brought my father over as a relatively we do something about this imbalance boy’s lifetime, if we do not change the young person. He said, ‘‘Well, the big- that has gone on for 25 years. pattern that we are on right now, ac- gest reason he came to America is be- Mr. INHOFE. We also have to real- cording to all of those who are prognos- cause he wanted a better life for his ize—I do not want to take us off the ticators of the future, he will have to children.’’ track of the budget, but de Tocqueville

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00004 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8845 was also concerned about some of the What the Senator from Wyoming said I can remember a very famous speech social problems he saw forecast in this is absolutely right. This country is a that was made, back in 1965. My col- country. He said, great country because we have people league and I, we may be freshmen here America is great because America is good. who cared about people, who did ‘‘suf- but we are the two oldest Members of When America ceases to be good, America fer with,’’ who did care about their the freshman class. We can remember will cease to be great. neighbor, who did know who their this well. The speech was called ‘‘A So a lot of people in our history, neighbors were and went out and did Rendezvous With Destiny’’ by Ronald going all the way back to Washington, something about it. And because Gov- Reagan. It was his first political talked about and addressed public debt, ernment has gotten so big and is start- speech. It was back during the Gold- and Jefferson was also outspoken on ing to do so much for people, we stop water campaign. this. I think we are here in a political doing so much for each other because it revolution in this country, and I think is not our job anymore. It is not our In this speech he said something very it is an exciting thing. The President job to help take care of our fellow profound. He said, ‘‘There is nothing will have to be very persuasive. neighbor. There is a Government pro- closer to immortality on the face of Mr. THOMAS. Does Senator gram that does that and just call this this Earth than a Government program SANTORUM have a de Tocqueville quote, office, toll free. once started.’’ also? That is not what made America I learned this lesson when I was Mr. SANTORUM. No, I do not, but I great. Toll-free numbers for calling a mayor of the city of Tulsa. This is kind do have an editorial from one of my pa- Government bureaucrat is not what of an interesting story and tells you pers, in the Lancaster Intelligencer, made America great. What made Amer- what is happening here today. which said that the difference between ica great, what the Senator from Okla- the Republican budget and the Presi- homa said, is the goodness of America. I went in and made a decision that dent’s budget, and they were very sup- I can tell you there is nothing good over a 5-year period I would keep the portive of the President’s budget, is about taking money away from people level of government, city government, that the President’s budget is compas- who work hard for it and giving it to the same size yet increase the delivery sionate. The President’s budget is com- people who we want to for whatever of services. I did this because at that passionate because it does not tear reason we want to. That is not good. time the average large city doubled in apart all these programs that are here That may be necessary in some cases. size every 5 years. I thought, let us try in place in Washington. There are people in this country who to stop that. So I started firing people I would suggest to them that compas- do need help and there are Government for inefficiency. And when I saw them sion—if compassion is measured by a programs that do it. But do not come later and said, ‘‘I thought I fired you,’’ group of people in Washington willing here and say that is good, or that is and they said, ‘‘Well I have been rein- to take people’s hard-earned money compassionate. It may be necessary stated,’’ I found out in government you and give it to people that they see fit sometimes. cannot fire people for inefficiency. I to give it to, if that is the measure of What is good is if you participate in- found the way to do it. You defund de- compassion I can tell you it is very dividually, if you get out there and partments and get them all. easy for me. It is no skin off my back help your neighbor and become part of There are some bureaucracies that to vote money from somebody else and the fabric of community, which is what were at one time performing a function give it to somebody else. de Tocqueville wrote about over 100 that was needed; the problem went Some people say that is compassion. years ago. That is what makes America away, but the bureaucracy continues. If I go to someone who is working 16- great. That is what we are trying to This is what we are talking about, hour days, 6 days a week, and I tax him get back to—understanding that fami- going through, having sunset provi- more money and give it to somebody lies and communities and neighbor- sions where we can say, Is this thing else who may not be working as hard hoods are important to the fabric of really needed? Is this in the public in- or may have a problem, whatever the our society. And if we continue to lose terest anymore, as it was 40 years ago case may be—I am sort of removed them we will lose America. when that particular agency was start- from this. It is not hurting me. I am So, the Lancaster Intelligencer is ed? not taking any money from me here. I dead wrong. There is nothing compas- am taking it from somebody else and sionate about keeping the Federal Gov- It is not a lack of compassion, as the giving it to somebody else. Where is ernment in control of people’s lives. It Senator from Pennsylvania has said in that compassion? is anything but compassionate because such an articulate way, because we are The word compassion, if you look at there is no suffering here. There is only compassionate. But when I have town- the derivation of the word compassion, more suffering out there. hall meetings, I talk to senior citizens. it means ‘‘with suffering.’’ I am not Mr. THOMAS. The Senator has made Sometimes when I have them during suffering with anybody. I am not suf- a great point. One of the exciting the day, 90 percent of them are senior fering with anybody. I am telling you things, it seems to me, about this Con- citizens or retired people. They come to give money. And I am taking it from gress is that we have for the first time up. Of course when you tell them what you and giving it to him. Where am I in many years an opportunity to take a is going to happen if we continue on involved in the suffering here? There is look at Government programs that this road, what is going to happen to no suffering. have been in place for 30 or 40 years, their grandchildren and great grand- It makes you look nice. It is great to such as the War on Poverty—which has children and generations to come, I be able to go into a community where failed. There are more people in pov- find these people are not selfish. They you are handing out money. Look, I erty now than when it began. just do not want to be cut unless others love to present checks. Oh, it is great So we are not talking about taking are cut. to take other people’s money, who away the safety net. We are not talk- The Senator might remember when worked hard for it, and have me give it ing about doing away with the assist- the Heritage Foundation did a study to people. It is a wonderful feeling. You ance to people who need assistance. In here a few years ago where they said if feel great. But are you really compas- welfare we want to help those, but help you put on a growth cap of 2 percent sionate? Is that action truly compas- them back into the workplace. And for just a matter of 5 years on all Gov- sionate? Is there any ‘‘suffering with,’’ that is exciting, to have for the first ernment spending, you will balance the that is going on here? No, no, it is not time a chance to say, Is there a better budget in that period of time and will compassion at all. It is politics. And it way to provide this assistance? Is there not have to cut or eliminate one Fed- is easy and it is fun. Oh, I know it is a more efficient way to do something, eral program. Just stop the increase, fun to just take that money away from rather than just continuing to fund the accelerated growth. That is, I those people who are making too much failed programs? I think that is the ex- think, what we are trying to do. money and give it to folks who are not citing thing we are doing. making enough. It is sort of the mod- Mr. INHOFE. I think it is inherent in Mr. THOMAS. That is the interesting ern day Robin Hood. But there is no the bureaucracy. We have to address it and not well understood point. Two suffering here. that way. years ago—when the President talks

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00005 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8846 CONGRESSIONAL RECORD — SENATE June 22, 1995 about deficit reduction, the fact is which could qualify for participation in reductions in interest rates that would there was no cut in spending. The fact the program this legislation would es- result under the Republican balanced is the spending still continues at 5 per- tablish. budget plan are not certain to mate- cent and the cuts, the deficit reduc- This legislation would help those rialize under the President’s plan. This tions were bookkeeping things and hospitals to continue offering essential means that under the President’s plan, raising taxes. We still continued. So we hospital services in at least four ways: home mortgages, business loans, credit are talking not about cutting overall It would provide more appropriate and card interest, and virtually everything spending. We are talking about reduc- flexible staffing and licensure stand- that is affected by interest rates in this ing the growth. I thank the Senator. ards. It would reimburse both inpatient country would be more expensive. And Mr. INHOFE. The Senator might re- and outpatient services on a reasonable finally, delaying balance for 10 years member, he and I were both in the cost basis. It would promote integra- runs the risk that we may never get House of Representatives back when tion of these hospitals in broader net- there if we do not put our country on a President Bush—I criticized him pub- works by requiring participating strict diet of spending discipline begin- licly because of some of the assump- States to develop at least one rural ning now. tions he came up with in his budget health network in which the rural crit- President Clinton has recognized resolution as to growth assumptions. A ical access hospital would participate. that there must be spending restraint lot of people do not realize for each 1 And it would require the Secretary of on entitlement programs, such as percent growth in economic activity, Health and Human Services to rec- Medicare and Medicaid, if we are to there is a generation of new revenue of ommend to the Congress an appro- achieve balance, and I commend him for at least talking the talk of entitle- about $24 billion. He was a little overly priate reimbursement methodology ment reform. But the President’s spe- optimistic on some of the projections under Medicare for telemedicine serv- cific proposals are troublesome. The his people put forward for him also on ices. Clinton June budget actually spends $1 gas tax revenues and some of the other Hospitals which participate in this billion more in nondefense discre- things. program could thus continue to provide tionary spending than did his February I think we want to be realistic. We an essential point of access to hospital budget. And it relies on overly opti- want to get to where we are going and level services in their rural commu- mistic estimates relating to economic that is to eliminate the deficit by the nities. Essentially, these hospitals growth and the cost of increases in year 2002. I would like to do it by the could pare back the services they offer Medicare and Medicaid. These rosy es- year 2000 instead of 2002. I think most to emergency care services and to 24- timates, while appearing to be only of us would. But we are on the road to hour nursing services, while continuing slightly different from congressional doing something realistic. Let us stay to participate in the Medicare Program estimates in the early years, are great- with it. on a reasonable cost basis. In this way, ly magnified over a 10-year period. As a Mr. THOMAS. We are. I thank the they would continue to be the major result, deficits will be much higher if Senator for his comments. point of access to emergency medical analyzed using Congressional Budget Mr. GRASSLEY addressed the Chair. care in their communities. Office figures. The PRESIDING OFFICER. The Sen- Again, I am pleased to join my col- According to the Congressional Budg- ator from Iowa. leagues, Senator BAUCUS and Senator et Office—who Mr. Clinton once ex- f ROCKEFELLER, and I commend their alted and now deplores—Mr. Clinton’s leadership on this problem. SMALL RURAL HOSPITALS latest budget will fall far short of its Mr. FRIST addressed the Chair. goals, and like the last budget Mr. Mr. GRASSLEY. Mr. President, I will The PRESIDING OFFICER. The Sen- Clinton sent to Capitol Hill, will still join Senator BAUCUS and Senator ator from Tennessee. leave the Nation in debt by as much as ROCKEFELLER in introducing the Rural Mr. FRIST. Mr. President, I ask $234 billion by the year 2002. Health Improvement Act of 1995. unanimous consent to speak as if in It is clear to me what the President The purpose of this legislation is to morning business for 6 minutes. wants to do. He very much wants to establish within Medicare a rural hos- The PRESIDING OFFICER. Without balance the budget. He knows that bal- pital flexibility program. objection, it is so ordered. ancing the budget is the right thing to Such a program is badly needed. f do. But he really does not want to Many smaller rural communities, and THE PRESIDENT’S BUDGET make the hard choices that must be their hospitals, are unable to sustain made if we are going to truly put the full range of hospital services nec- Mr. FRIST. Mr. President, I wish to America back on the road to fiscal essary to qualify for participation in continue the discussion begun this health. the Medicare Program. There are sev- morning by my fellow freshman Sen- The President’s budget proposals re- eral reasons for this. Among the most ators on the President’s budget pro- lating to health care are indicative of important is that the Medicare rules posal introduced last week. the President’s split-personality budg- and requirements for full service hos- Mr. President, I am pleased to see et. He first takes a lower baseline for pitals are burdensome and inflexible. that President Clinton has joined Re- Medicare and Medicaid, which in plain Compliance with them is difficult for publicans in at last recognizing the terms means how much these programs smaller rural facilities. Furthermore, need—the critical need—to balance the are projected to cost over the next 10 Medicare reimbursement is inadequate. Federal budget. years. This averts some pain by saying, This latter problem is compounded by But while the President’s new posi- ‘‘It’s really not as bad as we thought.’’ the fact that these hospitals are likely tion is a dramatic policy reversal from Then the President’s budget proposal to be dependent on the program—most his previously stated view, and his new reduces spending for Medicare—only by of their patients in any given year are budget proposal is an improvement cutting payments to providers. In ef- likely to be Medicare beneficiaries. over his last one which did nothing to fect, the President is saying, ‘‘Let’s re- Thus, most of their reimbursement reign in the growth of government, the duce spending for Medicare, but only if comes from the Medicare Program. President’s budget does not go nearly it doesn’t hurt anyone.’’ There are no As a consequence, under the current far enough. proposed changes for payments to Medicare rules and reimbursement lev- Mr. President, the President’s logic beneficiaries or real reform of the sys- els, many of these small, rural hos- that slowing the path of deficit reduc- tem. pitals across the country could go out tion would ease the pain on the elderly, Mr. President, this approach does not of business. If they do, their commu- on students, on the disabled, and the make any sense in 1995. We must re- nities would lose their current access economy just does not hold up. In fact, form Medicare to save Medicare, to im- to emergency medical services. the reverse is true. Delaying balancing prove it, to preserve it. We have to This legislation could make the dif- the budget is more costly in the long change the program so that it is pre- ference between survival and closure run, as we run up more and more debt served for generations to come. We will for these hospitals. In Iowa, there are and higher and higher interest pay- never ensure long-term solvency of the at least 10 hospitals, perhaps more, ments. And according to CBO, expected Medicare program by just continuing

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00006 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8847 to cut payments to health care pro- this outstanding Kansan and out- unmatched, and the deep love and de- viders. Republicans have instead pro- standing American. votion of his solders is fitting of this posed restructuring the Medicare pro- George was executive secretary to great man. gram to save it and improve it. The Re- Frank Carlson during his term as Gov- I ask my colleagues to join me in publican plan would expand choice, for ernor, and followed him to Washington commending Gen. Gordon R. Sullivan our seniors and our disabled, and would as his Senate administrative assistant. for his sacrifice, his leadership, and his increase market efficiencies and reduce He served in that role for 17 years commitment to our solders and to our waste. The President’s plan, on the with great intelligence and integrity, Nation. other hand, would only postpone bank- always reaching out to provide advice God’s speed and blessings to him and ruptcy of the Medicare program until and support to young Kansans who to his wife Gay, and their family. 2005. were new in town. f Mr. President, while I admire the In 1967, then-President Johnson ap- TRIBUTE TO CLAIRE STERLING President’s goals, I believe that the pointed George to serve on the Inter- President’s latest budget submission is state Commerce Commission. He re- Mr. MOYNIHAN. Mr. President, on yet one more case of failing to ade- mained on the commission until 1980, Saturday last, in Arezzo, Italy, Claire quately address the crisis at hand and serving as its chairman for 7 years. Sterling died, age 76. So passed, as her choosing instead to respond to critics George’s years in Topeka and Wash- great friend Meg Greenfield put it, by producing a budget designed for do- ington are not the only examples of the ‘‘one of the great journalists of all mestic political consumption rather service he gave to his country. He also time.’’ than the welfare of the American peo- defended freedom in World War II, ris- She was born in Queens, took her de- ple. ing to the rank of Captain, and receiv- gree from Brooklyn College, and went I hope the President will work with ing both the bronze star and the purple from there to the Columbia graduate the Republicans. We, on our side of the heart. school of journalism. In time she aisle, have made some tough choices, Like many in Kansas and in Wash- joined the staff of the Reporter where and there are more to come. But I ington, I was proud to call George Staf- she was a colleague of Ms. Greenfield know the American people are with us, ford my friend. for some 17 years, albeit from her post and they will put the interests of the I know that Senator KASSEBAUM in Rome. country ahead of special interests. joins with me in extending our sym- In her youth, as a student involved They voted for the fundamental change pathies to Lena Stafford, George’s wife with student politics at Brooklyn Col- that Republicans have proposed and we of 48 years; his children; Bill, Susan, lege, and later as a union organizer, must honor our commitment to the and Quincy; and his five grandchildren. she came in contact with the Stalinist Americans who sent us to Washington f left which gave her a perspective, al- most a second sense concerning ideo- last November. RETIREMENT OF GEN. GORDON I thank the Chair and yield the floor. logical politics that ever thereafter in- SULLIVAN Mr. WARNER addressed the Chair. formed her accounts of world politics The PRESIDING OFFICER. The Sen- Mr. DOLE. Mr. President, I rise at the highest, and yes, lowest, even ator from Virginia. today to commend a truly remarkable criminal and clandestine levels. What Mr. WARNER. Mr. President, I wish individual, Gen. Gordon R. Sullivan, on liberals did not wish to know—many to commend our distinguished col- his retirement after 36 years of service liberals, that is—and conservatives league. We are indeed fortunate, not to our Army and to our Nation. could not grasp, she instantly under- only here in the Senate but the United I had the distinct honor of working stood, and sublimely construed. There States, to have one who made this im- closely with General Sullivan over the is a Hebrew saying, ha mevin yavin: portant career change having dedicated years when he served as the deputy of those who understand, understand. his life to saving lives in his career. the Command and Staff College at Fort Claire Sterling understood and not just Now, he brings to the institution of the Leavenworth, KS and during his com- at metaphysical heights. Who else Senate enormous knowledge, not only mand of the Big Red One at Fort Riley, would have persuaded the rebels oppos- personal but that gained from working KS. ing French rule in Algeria to let her with his colleagues in the medical pro- Indeed, it was my pleasure to intro- know which trains she could take back fession for these many years, such that duce General Sullivan before the Sen- to the coast which were not scheduled we can have the benefit of his wisdom ate Armed Services Committee during to be blown up. and experience as we address the crit- his confirmation as chief of staff of the Meg Greenfield allows as how ‘‘it is ical issues relating to health care. I ex- Army just 4 years ago. hard to think of her as dead, for she press my appreciation to the Senator In my view, Gordon Sullivan was ex- was so alive.’’ And so we will remember for these remarks this morning. They actly the right man at the right time her, even as we offer our condolences to are very timely. to lead our Army during one of the her beloved husband Tom, and her son f most difficult periods of restructuring Luke, daughter Abigail, and her sister and downsizing. He kept the right per- Ethel. TRIBUTE TO GEORGE STAFFORD spective, and put it best in his own Mr. President, I ask unanimous con- Mr. DOLE. Mr. President, one of the words, ‘‘smaller is not better, better is sent that the full text of the articles most remarkable public servants in better.’’ from the New York Times and the Kansas history was Frank Carlson, who Throughout his 4 years as Army Washington Post be printed in the served in this Chamber for 18 years. Chief of Staff, General Sullivan kept RECORD. During his career, Senator Carlson his focus and vision. His priorities were There being no objection, the articles also served for 4 years as a member of our soldiers whom he prepared to fight were ordered to be printed in the the Kansas House of Representatives, and win our Nation’s wars. And their RECORD, as follows: 12 years in the U.S. House of Rep- families who support our solders and [From the New York Times, June 18, 1995] resentatives, and 4 years as Governor. willingly sacrifice for their purpose. CLAIRE STERLING, 76, DIES; WRITER ON CRIME Senator Carlson did many great I frequently conferred with General AND TERROR things in his career, including helping Sullivan throughout this term as Army (By Eric Pace) to draft Dwight Eisenhower for Presi- Chief. His views and counsel were al- Claire Sterling, an American author and dent in 1952. ways on the mark. Gordon Sullivan correspondent based in Italy, who was known But I am here this morning to talk brought tremendous wisdom to the job for her writings on terrorism, assassination about another great thing that Frank and a style of leadership which re- and crime, died yesterday in a hospital in Carlson did. And that is the fact that flected his greatness. Arezzo, Italy. She was 76 and lived outside of Cortona, near Arezzo. he brought George Stafford to Wash- Our Army will sorely miss General She had cancer of the colon, her husband ington, DC. Sullivan, but it is stronger and better said. George passed away last week, and I for his service. The legacy he leaves, a Mrs. Sterling was based in Italy for more wanted to take a minute to remember ready Army, a future force that will be than 30 years and traveled widely. Her most

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00007 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8848 CONGRESSIONAL RECORD — SENATE June 22, 1995 recent book, ‘‘Thieves’ World: The Threat of ding present to me was a six-month assign- In 1968, she covered the brief period of so- the New Global Network of Organized ment in Rome.’’ cial and political liberalization in Czecho- Crime’’ (1994, Simon & Schuster), was praised Mrs. Sterling’s six-month assignment slovakia under the leadership of Alexander by Stephen Handelman, of the Harriman In- lasted 17 years, ending only when The Re- Dubcek, which became known as the Prague stitute of Advanced Soviet Studies at Co- porter ceased publication in 1968. By then, Spring. In the course of reporting that story, lumbia University, as making ‘‘a significant the Sterlings were accustomed to life in she began looking into the 1948 death of Ma- contribution to post-cold-war debate’’ by af- Italy, where Mr. Sterling had written some saryk, the foreign minister, who had been firming ‘‘that the growing interdependence of his more than a dozen books. So Mrs. found dead in the courtyard of Prague’s among nation-states and financial institu- Sterling, keeping Italy as her base, began Czernin Palace, apparently after falling from tions has made it easier for crime syndicates writing her Masaryk book. a window. The death had been ruled a sui- to cooperate across national boundaries.’’ She is survived by her husband; a son, cide. In an earlier book, ‘‘Octopus: the Long Luke, of Cortona; a daughter, Abigail From previously published material, inter- Reach of the International Sicilian Mafia’’ Vazquez of San Francisco; two grand- views and new documents, Mrs. Sterling con- (1990), she examined the Sicilian Mafia and children, and a sister, Ethel Braun of Man- cluded that Masaryk, a popular political fig- charged gangster-chieftains based in Pa- hattan. ure and a leader of the Czech government in lermo with creating a multinational empire [From the Washington Post, June 18, 1995] exile during the wartime occupation by Ger- with the United States as its longtime main CLAIRE STERLING, INVESTIGATIVE WRITER, many, had been murdered by Communist target. DIES agents, probably to prevent his defection to In her 1984 book ‘‘The Time of the Assas- the West. She speculated in her book ‘‘The (By Bart Barnes) sins,’’ Mrs. Sterling examined the attempt Masaryk Case’’ that he had been over- by a Turk, Mehmet Ali Agca, to kill Pope Claire Sterling, 75, a U.S. journalist and powered by security agents, suffocated with John Paul II in 1981. She contended that Mr. author of investigative books that explored pillows and flung from the window. Agca had ‘‘come to Rome as a professional connections between the Soviet government Her second book, ‘‘The Terror Network,’’ hit man, hired by a Bulgarian spy ring.’’ She and terrorist organizations around the was based on an article she had written for presented what she called ‘‘massive proof world, died of cancer June 17 at a hospital in Atlantic Monthly in which she explored sim- that the Soviet Union and its surrogates Arezzo, Italy. ilarities between the kidnappings and mur- have provided the weapons, training and In a journalistic career that spanned al- ders in the 1970s of former Italian premier sanctuary for a worldwide terror network most five decades, Mrs. Sterling covered and Aldo Moro by the Italian Red Brigades and of aimed at the destabilization of Western wrote about armed revolutionary movements West German industrialist Hans-Martin democratic society.’’ in Third World countries, U.S. gangsters, Mrs. Sterling’s contention about a Bul- Schleyer by the German Red Army Faction. World War II refugees and political assas- In this book, Mrs. Sterling traced what she garian role in the attack was disputed, but sinations. She was based in Italy for most of writing in 1991, she maintained that Italian said were extensive political and military that period, and from there she wrote stories links between terrorist organizations, all of courts in 1988 had ‘‘expressed their moral for The Washington Post and other news- certainty that Bulgaria’s secret service was which, she suggested, received material but papers. But her work also took her to East- clandestine support from Moscow. ‘‘In ef- behind the papal shooting.’’ ern Europe, Africa, the Middle East and She also attracted wide attention with her fect,’’ she wrote, ‘‘the Soviet Union simply Asia. laid a loaded gun on the table, leaving the 1981 book ‘‘The Terror Network,’’ which Her books included ‘‘The Masaryk Case’’ others to get on with it.’’ The book was well traced connections among terrorist groups (1969), In which she argued that the 1948 received by the newly inaugurated adminis- around the globe. William Abrahams, who death of Czech Foreign Minister Jan Masa- tration of Ronald Reagan, but liberal critics edited the book for Holt, Rinehart & Win- ryk was murder, not suicide; ‘‘The Terror complained that Mrs. Sterling’s argument ston, said that while she was writing it, the Network’’ (1981), in which she argued that was unsupported by conclusive evidence. Italian Government posted a guard at her the Soviets were sponsoring and supporting In ‘‘The Time of the Assassins,’’ Mrs. Ster- house to protect her. terrorist organizations in several countries; A decade later, the New York Times col- ling investigated claims by Mehmet Al Agca and ‘‘The Time of the Assassins’’ (1984), in umnist Anthony Lewis reported that Wil- that he was acting on orders from the Bul- which she accused the Soviet Union of com- liam J. Casey, the Director of Central Intel- garian secret service in his 1981 attempt on plicity in the 1981 attempted assassination of ligence in the Reagan Administration, had the life of Pope John Paul II. In 1986, an Pope John Paul II. held up a copy of ‘‘The Terror Network’’ be- Italian jury acquitted three Bulgarians and She began her career in journalism shortly fore a group of official intelligence experts three Turks of conspiracy in the plot for after World War II, working in Italy for the and had ‘‘said contemptuously that he had lack of proof. Mrs. Sterling continued to in- now-defunct Overseas News Service. It was learned more from it than from all of them.’’ sist that the Soviet Union was behind it. an era when women were rare and often un- Mrs. Sterling’s first book was ‘‘The Masa- She married novelist Thomas Sterling in welcome in the news business, and Mrs. Ster- ryk Case’’ (1969), about Jan Masaryk, the 1951. They lived in Rome and Cortona, Italy. ling became known as an adventuresome and Czechoslovak Foreign Minister who was re- In addition to her husband, she is survived energetic reporter who sometimes used cre- ported to have leaped to his death in 1948 by two children, Luke Sterling, a painter ative methods to get her stories. from a window of his Prague apartment. She who lives in Cortona, and Abigail Vazquez of In Italy, she boarded a Palestine-bound concluded that he had been killed by Soviet San Francisco; and two grandchildren. or Czechoslovak Stalinists to keep him from ship with Jewish war refugees, taping her U.S. passport to her arm, which she had en- defecting to the West. f In her decades abroad, she also wrote arti- cased in a cast as if it were broken. The ship cles for The New York Times, Atlantic was intercepted by British authorities, and she was taken to an internment camp. But WAS CONGRESS IRRESPONSIBLE? Monthly, The Reporter magazine, Life, Read- THE VOTERS HAVE SAID YES er’s Digest, Harper’s, The New Republic, The she was released when she produced the pass- Washington Post, International Herald Trib- port proving her U.S. nationality. Mr. HELMS. Mr. President, on that une and The Financial Times. During the 1950s, she wrote about inde- memorable evening in 1972 when I Mrs. Sterling was born Claire Neikind in pendence movements in North Africa, and learned that I had been elected to the Queens, received a bachelor’s degree in eco- she often traveled with bands of armed insur- gents, including once when she was five Senate, I made a commitment to my- nomics from Brooklyn College, and worked self that I would never fail to see a for a time as a union organizer among elec- months pregnant. When her husband ex- trical workers. pressed concern about this, she told him not young person, or a group of young peo- In 1945 she received a master’s degree from to worry—the rebels had promised not to ple, who wanted to see me. the Columbia Graduate School of Jour- blow up any trains she was on. It has proved enormously beneficial nalism, which awarded her a Pulitzer Trav- Mrs. Sterling was born in New York. She to me because I have been inspired by eling Scholarship. graduated from Brooklyn College and re- the estimated 60,000 young people with She went on to work in Rome for what she ceived a degree in journalism from Columbia whom I have visited during the nearly described in a 1981 interview as ‘‘a fly-by- University. night American news agency.’’ She learned After a short stint with the Overseas News 23 years I have been in the Senate. Italian, and when the agency went out of Service, she joined the staff of Reporter Most of them have been concerned business, she returned to the United States magazine in 1949. She interviewed New York about the magnitude of the Federal and joined the staff of The Reporter maga- mob boss Lucky Luciano and wrote an un- debt that Congress has run up for the zine, which began publication in early 1949. flattering profile of Clare Booth Luce, the coming generations to pay. The young Mrs. Sterling recalled that when she ap- U.S. ambassador to Italy during the Eisen- people and I always discuss the fact plied for the Reporter job, Max Ascoli, the hower administration. She wrote stories that under the U.S. Constitution, no from sub-Saharan Africa, the Middle East magazine’s Italian-born publisher and editor, President can spend a dime of Federal said, ‘‘If anybody’s going to write about and Asia. Italy around here, it’s me.’’ After Reporter folded in 1968, Mrs. Sterling money that has not first been author- In 1951, she married Tom Sterling, a writ- wrote articles for Harper’s magazine, did ized and appropriated by both the er. She remembered that ‘‘Max Ascoli’s wed- freelance writing and wrote books. House and Senate of the United States.

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00008 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8849 That’s why I began making these Ambassador Albright, and General the building must be competitive for well daily reports to the Senate on Feb- Boyd. The creation of the American into the 21st Century and must meet western ruary 22, 1992. I wanted to make it a Center in Plzen was the personal ac- standards. The building would have a social matter of daily record precisely the complishment of a U.S. Peace Corps center, a meeting room for seminars, perma- nent offices, temporary offices for companies size of the Federal debt which as of volunteer from Barrington, RI, John R. seeking partners, an information area, and a yesterday, Wednesday, June 21, stood Hess. place for cultural displays. The building has at $4,898,068,854,045.71 or $18,593.15 for The Center is a tribute to the enthu- over 100 communication outlets for phones, every man, woman, and child in Amer- siasm and commitment of John Hess faxes, and computers. It is centrally air con- ica. and the citizens of Plzen. Significantly, ditioned and handicap accessible. In addi- tion, all offices have raised floors for ease of f it was completed without having to commit any U.S. tax dollars. I asked cabling. Ability to communicate was a major THE RECALL OF THE CHINESE Mr. Hess if he would send me a report thrust and attention to computer, fax, and AMBASSADOR telephone access was a priority of the build- on the creation of American Center ing infrastructure. The City also wanted the Mr. PELL. Mr. President, I learned Plzen, so that his work could serve as building completed in time for the 50 year with regret last week that the People’s an example to others reaching out to Liberation Ceremony to take place in May Republic of China has recalled its am- our neighbors around the world. I ask 1995. bassador to the United States, Li unanimous consent that his report on A working committee consisting of ten Daoyu, because of the visit of Taiwan American Center Plzen be printed in people was formed and met regularly to re- President Lee Teng-hui. I am dis- the RECORD. view plans. The committee assisted in hiring appointed that the Chinese government There being no objection, the report the Director for the Center as well as talking has chosen this step as a form of pro- with the U.S. and Czech business commu- was ordered to be printed in the nities about the Center. The makeup of the test over Lee’s visit. RECORD, as follows: committee included five Czechs and five President Lee came to the United REPORT ON AMERICAN CENTER PLZEN Americans. Four Czechs were from Plzen and States on a private visit after he was This is a report requested by U.S. Senator one Czech and three Americans were from invited to speak at his alma mater. He Claiborne Pell about my activities as a U.S. Prague. was granted a visa as a simple act of Peace Corps Volunteer in establishing Amer- Plans for the building were completed in courtesy and his trip does not rep- ican Center Plzen without use of American June 1994 and were approved by the City. resent a change in our government’s taxpayers money. Senator Pell was in Plzen Building restoration began in September 1994 one-China policy. The United States at the time of the Center’s opening. and was completed in late April 1995. The believes strongly that notable speakers The idea of having an American Center for City paid all the expenses for the building. American-Czech business and cultural ex- No U.S. taxpayer money was a part of the from around the world should be free to building renovations. The building is ex- travel here to speak their views. I feel change in Plzen began with then Deputy Mayor of Plzen, Zdenek Prosek when in 1993 pected to be self sufficient financially by that Beijing’s reaction to Lee’s visit is he discussed the thought with the U.S. Am- January 1997 through rental charges for of- both excessive and unproductive. Lee’s bassador, Foreign Commercial Service, fices, meetings, special services, etc. visit was a small matter and should be USIS, and representatives of the Czech The Foundation has been established and seen as insignificant for overall Sino- American Enterprise Fund (CAEF). All has two Boards, one advisory which includes United States relations. thought well of the concept. CAEF liked the American Chamber of Commerce in the There is a great reservoir of friend- plan because there would be business invest- Czech Republic, Peace Corps, an American ment opportunities for them and the others Embassy person, and Chamber of Commerce ship between the peoples of China and Plzen. The voting Board is chaired by a the United States. I think of that because it could help to create U.S. and Czech business growth as well as expand U.S. Czech who is also Chair of the Business Inno- friendship as an iceberg. Right now we and Czech cultural understanding. The pur- vation Center in Plzen. There are four Czechs may see problems at the tip, but under- pose of the Center would offer something to and one American on the voting Board. neath is a large, enduring solidness. I both the United States and to Plzen. A Cen- A few American and Czech companies have feel certain that sturdy base will help ter would make it easier for U.S. businesses made donations of operating equipment such us outlast minor irritants to the rela- to establish themselves in Western Bohemia as fax machines and computers to the Center tionship, such as this one. It is my deep as investors and for export possibilities. It which are greatly appreciated. would also enhance and build upon the warm A Peace Corps Business Volunteer will con- wish that Beijing would simply agree tinue as an advisor to the Center until late to disagree with Washington on this feelings held by the West Bohemian people toward the U.S. resulting from General Pat- January 1996. Peace Corps does not plan to matter, return Ambassador Li to his ton’s liberation of this area in 1945. Plzen assign another volunteer to this project after post quickly, and move on to the truly would benefit as the Center will open access that date. important matters we have between to U.S. business for joint ventures and could f the two countries. obtain the balanced economy sought by city CONCLUSION OF MORNING f leaders. CAEF offered to donate the equiva- lent of $35,000.00 as ‘‘seed money’’ for the BUSINESS AMERICAN CENTER PLZEN project to cover any first year operating Mr. WARNER. Mr. President, am I Mr. PELL. On May 6, 1995, I was hon- deficits. The United States Embassy clearly correct that the Senate now turns to S. ored to be part of the delegation head- stated that no U.S. funds were available for 440? ed by Ambassador Madeleine Albright the purpose of establishing the Center. Advi- sory assistance would be offered. The PRESIDING OFFICER. Morning and accompanied by Gen. Charles G. The city of Plzen made it known that it business is closed. Boyd, commander in chief, U.S. Euro- would bear all costs. Deputy Mayor Prosek f pean Command, to represent President (now Lord Mayor) told the Embassy and Clinton at ceremonies marking the CAEF that the City would donate a historic NATIONAL HIGHWAY SYSTEM 50th anniversary of the liberation of building in the city center and would restore DESIGNATION ACT Plzen in the Czech Republic. it at Plzen’s expense. Plzen certainly did The PRESIDING OFFICER. Under Having served as a foreign service of- that spending the equivalent of $1,250,000 on the previous order, the Senate will now ficer in Prague in 1946 after World War the renovation as well as donating the build- resume consideration of S. 440, which ing. Mayor Prosek also stated that a Foun- II, it was a particular personal honor dation would be created with a Czech Direc- the clerk will report. to be present at such a warm out- tor to operate the Center under Czech law The assistant legislative clerk read pouring of appreciation and gratitude and would be self supporting. It was agreed as follows: shown by the people of the Czech Re- among the parties that a Peace Corps Busi- A bill (S. 440) to amend title 23, United public toward the gallant contributions ness Volunteer as a catalyst to ensure that States Code, to provide for the designation of made by the service men and women of the project would be designed and imple- the National Highway System, and for other Gen. George Patton’s Third Army. mented in a manner to assure success would purposes. While in Plzen I was also honored to be assigned to Plzen. The Senate resumed consideration of As that volunteer I discussed with project participate in the opening of American planners and architects hired by the city the the bill. Center Plzen, with Prime Minister layout of the building to meet the purpose of Mr. WARNER. Mr. President, I see in Klaus, the United States Ambassador the project. It was agreed among the project the Chamber joining me the distin- to the Czech Republic, Adrian Basora, designers, the architects, and myself that guished Senator from Rhode Island, the

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00009 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8850 CONGRESSIONAL RECORD — SENATE June 22, 1995 chairman of the committee, and I an- of meeting with 36 farmers, who make rules. David Robinson of Jonesboro ticipate the arrival very shortly of the up an agriculture advisory board from said, distinguished Senator from Montana, across the State of Tennessee. We actu- We are tired of being held to expensive the comanager of the bill. ally met in Knoxville, TN. The women standards of production when our global Mr. President, at the conclusion of and men on that board are real farm- competitors are allowed to ignore these same the session last night, the Senate gave ers, not just representatives of farmers, standards. unanimous consent to a list of amend- but people who personally earn their These farmers also asked for tax re- ments. They are printed in today’s living on a farm. lief. This may surprise some of my col- RECORD, and the managers are very One gentleman, exhausted from the leagues across the aisle, but the tax re- anxious to work with Members to re- dawn-to-dusk pace of a farm in early lief that they asked me for, that they solve these amendments. I think sev- summer, told my staff quite candidly spoke about, was a cut in the capital eral of them can be accepted. At this that he simply would not have time to gains tax rate. These are mainly mid- time, I cannot predict whether or not meet with a Senator unless it turned dle-class Tennesseans. Some have expe- there will be further rollcall votes out to be a rainy day. That kind of rienced or been very close to bank- other than final passage associated humble feedback is in itself an impor- ruptcy, riding the roller coaster of with this bill. tant reason for us in the U.S. Senate, commodity prices. But they fully un- The leadership is quite anxious to as elected representatives, to go home derstand what seems to elude so many finish this bill today, and I indicate to and talk to real people. Some members of my colleagues, that a cut in the cap- all Members a willingness to deal with of this agriculture board from the ital gains tax rate is critical to middle- these amendments, and I am hopeful western part of my State could not join income Americans; that it will stimu- that Members will shortly come to the me at that meeting because that very late the economy to the benefit of ev- floor to work with us. day they were struggling with the eryone in America. Mr. CHAFEE. Mr. President, I wish floodwaters that were destroying and In closing, I want to tell you what to echo what the distinguished Senator threatening to destroy their crops. James Wooden of South Pittsburg, TN, from Virginia has said. We are here to Nothing—nothing—could have served said. He said, ‘‘I am going to talk to do business. The shop is open. If people to make the need for Federal disaster you just like we do under the shade have amendments, bring them on over. relief more concrete and more real for tree.’’ I will remember those words of We are working on several now to re- me than the voice of a good man on the James Wooden when the 700-page farm solve them. But others who have prob- phone near panic over the rising wa- bill, full of Washington lingo, comes by lems, now is the time. ters. my way. We all need to go out under The schedule is such that between It was a fascinating day. When I had the shade tree and listen to the people now and 11:30 there is time for discus- asked these 30 farmers to tell me what across this country and let the people, sion and debate. There will be no votes they would like their duly elected Sen- firsthand, tell us what they know. before 11:30. At 11:30, we have a chance ator to know today about agriculture, Mr. President, I yield the floor and to vote. I would like to see us move to they were forthright and firm in their suggest the absence of a quorum. final passage and vote then. But if not, advice and their counsel. On two points Mr. DOLE. Will the Senator with- at 12 o’clock, we go back on the cloture they were very clear. Sam Worley of hold? motion. And the vote on that, as I un- Hampshire, TN, said: The PRESIDING OFFICER. The derstand, is at 2 o’clock. At the conclu- We want a smaller Federal Government Chair recognizes the majority leader. sion of that vote, if we have not fin- that thinks not short term but long term. f ished this bill, we will be back on it He went on and expressed that they again. But I know the leadership is wanted to be treated fairly in the NATIONAL HIGHWAY SYSTEM very anxious to get this over with be- spending reductions that they expect DESIGNATION ACT cause there is a host of other measures and that they know are necessary for The Senate continued with the con- with which they want to deal. the long-term health of this country sideration of the bill. So I say to all within listening and for that next generation. Mr. DOLE. Mr. President, first I want viewing distance, come over, bring These hard-working Tennesseans re- to remind my colleagues the two man- your amendments and let us dispose of sent the media portraying them as agers are here on the highway bill and them. parasites. They are willing to sacrifice, have been here since 9:30 and would Mr. WARNER. Mr. President, for the each and every one, as long as all very much like to complete action on ready reference of Senators, the list of Americans do, to balance the budget. this bill by noon today because at noon amendments adopted by unanimous They shuddered when I shared with we have 2 hours of debate on the Foster consent last night appears on page 2 of them the fact that a child born today nomination and then another vote. And today’s Calendar of Business. acquires an $18,000 share in the Federal then hopefully after that we would go Mr. President, seeing no Senator debt—a share of the Federal debt that to securities litigation legislation. seeking recognition, I suggest the ab- they will be expected to pay the inter- I have just talked with Virginia Sen- sence of a quorum. est on over the course of a lifetime. ator, Senator WARNER. Maybe many of The PRESIDING OFFICER (Mr. They made it very clear to me that these amendments will never be called COVERDELL). The absence of a quorum they are ready to do their part, as long up, but it will be helpful if our col- having been suggested, the clerk will as we do not try to balance the budget leagues on either side will let the man- call the roll. on the backs of the farmers. agers know. If we are not going to call The assistant legislative clerk pro- What else did these men and women up the amendments or if you have an ceeded to call the roll. have to tell me? They are frustrated amendment, it would certainly be bet- Mr. FRIST. Mr. President, I ask with the perverse incentives of our wel- ter to offer it at 10:30 in the morning unanimous consent that the order for fare system. Mike Vaught of Lacassas, rather than 10:30 tonight. The reason the quorum call be rescinded. The PRESIDING OFFICER. Without TN, told me of being unable to find an we are here every night until 10 objection, it is so ordered. overseer to live on his farm because he o’clock, 11 o’clock, is because people Mr. FRIST. Mr. President, I ask could not provide the cable TV that will not cooperate during the daytime. unanimous consent that I be permitted was available in the public housing just They are the same ones who complain to speak as in morning business for a miles away. They are frustrated with in the evening after 7 or 8 o’clock. So period of not more than 10 minutes. the intrusive Federal agencies that I would tell my colleagues, if you have The PRESIDING OFFICER. Without often act at cross purposes with each an amendment, the managers are here. objection, it is so ordered. other. The Environmental Protection Mr. WARNER. Mr. President, if I f Agency orders action that the Soil might say to the distinguished leader, Conservation Service prohibits. Jimmy half of these amendments are not mat- HELP FOR THE FARMERS Shellabarger of Jackson, TN, told me ters related to the bill. They are not Mr. FRIST. Mr. President, during the that he is frustrated by the huge fines matters either the Senator from Mon- most recent recess, I had the privilege for minor infractions of complicated tana nor I can really settle out because

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00010 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8851 other chairmen and ranking members card out, perhaps the whole thing will Senator NICKLES’ amendment will be of other committees are involved in come collapsing down and we will fin- withdrawn. Senator MCCAIN has been the subject of the amendments. ish. In any event, we are striving. We resolved. It seems to me it takes a good deal of will call on these individual Senators That leaves Senator SARBANES, and work to get these things done by per- to see if they are satisfied. Senator SMITH is very close to rec- sons other than the managers of the I think the point the managers make onciliation. Senator CHAFEE is working pending bill. here is a very valid one. These amend- on that with Senator SMITH. There still Mr. DOLE. I note the presence of the ments, many of them, do not involve remains an amendment by Senators distinguished chairman of the com- this committee. They involve other STEVENS and MURKOWSKI, the Senators mittee, Senator CHAFEE. There are a committees. And we are caught in a from Alaska, but we are hopeful that number of amendments under the juris- crossfire here. The Commerce Com- that matter can be resolved. It relates diction of the Commerce Committee, mittee or the Energy Committee—they to the Committee on Energy, of which Energy Committee, whatever. As the have nothing to do with us. I do not Senator MURKOWSKI is the chairman. Senator from Virginia has pointed out, even know why they are on this bill. We hope that can be resolved. Neither they are not under the jurisdiction of Mr. WARNER. Mr. President, there of the managers of the pending bill the committee that has the bill on the are a number of them relating to the have any dealings with that. floor. Banking Committee. As such, I know Mr. BAUCUS addressed the Chair. In any event, I know many of my col- Senator D’AMATO has been trying to be The PRESIDING OFFICER. The Sen- leagues may have conflicts at this mo- very helpful on it. Other committee ator from Montana. ment because there are amendments chairmen are working together with Mr. BAUCUS. Mr. President, I would here by Senator BOXER, three by Sen- their ranking members. It is most un- like to join in commending Senators ator EXON, one by Senator FORD, Sen- usual. who have worked out resolutions of ator HATFIELD, Senator KERRY, Sen- Mr. DOLE. Perhaps—perhaps we can, amendments. The Senator from Vir- ator LAUTENBERG, Senator NICKLES, if our colleagues do not object, then we ginia has done an admirable job, a won- Senator MCCAIN, Senator SARBANES, can go to third reading, say at 11:30? derful job talking with Senators and Senator SMITH, Senator STEVENS, and That would be one way too expedite working out resolutions. Senator MURKOWSKI. We would hope the process. We have indicated to one On the Democratic side, we are about whoever is willing to come to the floor of our colleagues, the eldest, there may finished. Senator EXON has three would do so. If they do not intend to not be any votes until 11:30. But that amendments. I hope, because those are offer their amendments, if they would does not mean we should not proceed. I Commerce Committee amendments, notify the managers on either side then think we are making progress and I that the chairman of the Commerce we can move on because we do have a want to congratulate the managers. I Committee and his staff can work out lot of legislation we will finish before do believe I can see some of these may agreements with Senator EXON. Sen- the July 4 recess begins. It is up to our be tied together. Some may not have ator EXON is on the floor now ready to colleagues when that may happen. any—some may be more related to the proceed with his amendments. I hope Mr. WARNER. Mr. President, I might next bill than this bill, as I understand that those can be worked out. We are inform the leader Senator HATFIELD it. Some that do not want the other very close to final passage. Very close. has just withdrawn his amendment. bill to come up. I expect we can finish this bill before Mr. DOLE. We are making progress. In the meantime, while we are wait- noon. Mr. WARNER. Now we are making ing for our colleagues to come, I know The PRESIDING OFFICER. The progress. there must be a rush on the subway as Chair recognizes the Senator from Ne- Mr. DOLE. Now can we have a bit I speak. They are all heading for the braska. from the other side? floor at the same time. Mr. EXON. I thank the Chair, and I Mr. BAUCUS. I might say to the Mr. President, while we are waiting thank the managers of the bill. While leader, in response to his question, that additional action on this bill, I suggest the dialog was just briefly going on be- means automatically one or two others the absence of a quorum. tween the two managers, I have re- are dropped. Automatically, too, that The PRESIDING OFFICER. The ceived information we have clearance means others are dropped. clerk will call the roll. for the second Exon amendment now Mr. DOLE. I think that means Sen- The legislative clerk proceeded to on both sides of the aisle. I will take ator MCCAIN’s amendment will dis- call the roll. those in order. Mr. WARNER. Mr. President, I ask appear. Mr. WARNER. Mr. President, the Mr. BAUCUS. Also another one on unanimous consent that the order for Senator from Nebraska is correct. On this side, too, will not be offered as a the quorum call be rescinded. the second amendment, clearance has consequence of that last development. The PRESIDING OFFICER (Mr. been arranged. Mr. DOLE. We are making progress FAIRCLOTH). Without objection, it is so as we speak. ordered. AMENDMENT NO. 1462 Mr. BAUCUS. Maybe the Senator Mr. WARNER. The managers wish to (Purpose: To increase safety where the rails could find another one that has the thank Senators. We are making consid- meet the roads) same ripple effect? erable progress. I would like to make a Mr. EXON. Mr. President, I send an Mr. DOLE. Could I ask, will there be report, together with my distinguished amendment to the desk and ask for its any of these other amendments requir- colleague. immediate consideration. ing rollcall votes? On the horizon is the opportunity The PRESIDING OFFICER. The Mr. WARNER. Mr. President, I say to perhaps to vote final passage at about clerk will report the amendment. the distinguished leader and others, at 11:30, or at such time thereafter, or be- The bill clerk read as follows: this present time the managers of the fore 12, as the leadership of the Senate The Senator from Nebraska [Mr. EXON] bill do not know of a request for a roll- may designate. proposes an amendment numbered 1462. call vote other than final passage. But to bring Senators up to date, re- Mr. EXON. Mr. President, I ask unan- The PRESIDING OFFICER. The ferring to page 2 of today’s calendar, imous consent that the reading of the Chair recognizes the Senator from the amendments pending from last amendment be dispensed with. Rhode Island. night by the Senator from California, The PRESIDING OFFICER. Without Mr. CHAFEE. Mr. President, I agree Mrs. BOXER, are withdrawn; Senator objection, it is so ordered. with the analysis of the distinguished CHAFEE withdrawn; Senator FORD, we The amendment is as follows: Senator from Virginia. We are making have reason to believe that is going to At the appropriate place in the bill insert some progress. be withdrawn; Senator HATFIELD, with- the following: We would appreciate your sticking drawn; Senator KERRY, we have reason SEC. . SHORT TITLE. around a little longer, though. We have to believe that will be withdrawn; Sen- This amendment may be cited as the ‘‘Fed- just disposed of three in 30 seconds. It ator LAUTENBERG has resolved his eral Highway and Railroad Grade Crossing is like a house of cards. If we pull one amendment. We have reason to believe Safety Act of 1995’’.

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00011 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8852 CONGRESSIONAL RECORD — SENATE June 22, 1995 SEC.—INTELLIGENT VEHICLE-HIGHWAY SYS- Traffic Safety Administration, and the Of- Mr. EXON. Mr. President, I appre- TEMS. fice of Motor Carriers within the Federal ciate the cooperation of the two man- (a) IN GENERAL.—In implementing the In- Highway Administration, shall on a con- agers. I have been trying to work with telligent Vehicle-Highway Systems Act of tinuing basis cooperate and work with the them to move this expeditiously ahead. 1991 (23 U.S.C. 307 note), the Secretary of National Association of Governors’ Highway Transportation shall ensure that the Na- Safety Representatives, the Commercial Ve- I think we have made some great tional Intelligent Vehicle-Highway System hicle Safety Alliance, and Operation Life- progress overnight. At least two of the Program addresses, in a comprehensive and saver, Inc., to improve compliance with and amendments that were in question coordinated manner, the use of intelligent enforcement of laws and regulations per- have now been resolved. vehicle-highway technologies to promote taining to railroad-highway grade crossings. The first amendment that I have just safety at railroad-highway grade crossings. (b) REPORT.—The Secretary of Transpor- offered is the Federal highway-railroad The Secretary of Transportation shall ensure tation shall submit a report to Congress by grade-crossing safety amendment. This that two or more operational tests funded January 1, 1996, indicating (1) how the De- legislation builds on the important partment worked with the above mentioned under such Act shall promote highway traf- work already done by the U.S. Senate. fic safety and railroad safety. entities to improve the awareness of the The provisions in this amendment SEC.—STATE HIGHWAY SAFETY MANAGEMENT highway and commercial vehicle safety and SYSTEMS. law enforcement communities of regulations should be familiar and are familiar to (a) AMENDMENT OF REGULATIONS.—The Sec- and safety challenges at railroad-highway the Senate, and it is noncontroversial. retary of Transportation shall conduct a grade crossings, and (2) how resources are Mr. President, I am pleased to offer rulemaking proceeding to amend the regula- being allocated to better address these chal- the Federal highway and railroad grade tions under section 500.407 of title 23, Code of lenges and enforce such regulations. crossing safety amendment. This legis- Federal Regulations to require that each SEC. . CROSSING ELIMINATION; STATEWIDE lation builds on important work al- CROSSING FREEZE. highway safety management system devel- ready done by the U.S. Senate. The oped, established, and implemented by a (a) STATEMENT OF POLICY.— (1) Railroad-highway grade crossings provisions in this amendment should State shall, among countermeasures and pri- present inherent hazards to the safety of be familiar to the Senate and non- orities established under subsection (b)(2) of railroad operations and to the safety of per- that section— controversial. sons using those crossings. It is in the public (1) include public railroad-highway grade- Most deaths and injuries which occur interest— crossing closure plans that are aimed at in the rail industry are as a result of (A) to eliminate redundant and high risk trespassers and motorist violation of eliminating highrisk or redundant crossings railroad-highway grade crossings; and (as defined by the Secretary); (B) to limit the creation of new crossings railroad grade crossing laws. About 600 (2) include railroad-highway grade-crossing to the minimum necessary to provide for the people a year die as a result of railroad policies that limit the creation of new at- reasonable mobility of the American people crossing accidents and about 600 people grade crossings for vehicle or pedestrian and their property, including emergency ac- a year die as a result of trespassing on traffic, recreational use, or any other pur- cess. railroad property. An automobile and a pose; and (2) Elimination of redundant and high-risk train collide once about every 90 min- (3) include plans for State policies, pro- railroad-highway grade crossings is nec- utes in the United States. In 1992 ap- grams, and resources to further reduce death essary to permit optimum use of available and injury at high-risk railroad-highway funds to improve the safety of remaining proximately 2,500 people were either grade crossings. crossings, including funds provided under killed or seriously injured as a result of (b) DEADLINE.—The Secretary of Transpor- Federal law. railroad grade crossing accidents. tation shall complete the rulemaking pro- (3) Effective programs to reduce the num- This is one area of death and injury ceeding described in subsection (a) and pre- ber of unneeded railroad-highway grade which is almost entirely preventable. scribe the required amended regulations, not crossings, and to close those crossings that The amendment I offer is meant to later than one year after the date of enact- cannot be made reasonably safe (due to rea- complement landmark rail safety legis- ment of this Act. sons of topography, angles of intersection, lation approved last year as part of the etc.), require the partnership of Federal, SEC. . VIOLATION OF GRADE-CROSSING LAWS so-called Swift Rail Act, named in AND REGULATIONS. State, and local officials and agencies, and honor of former House Chairman Al (a) FEDERAL REGULATIONS.—Section 31311 affected railroads. of title 49, United States Code, is amended by (4) Promotion of a balanced national trans- Swift. adding at the end the following new sub- portation system requires that highway As the former chairman of the Sen- section: planning specifically take into consideration ate Surface Transportation Sub- ‘‘(h) GRADE-CROSSING VIOLATIONS.— the interface between highways and the na- committee, I chaired a number of hear- tional railroad system. ‘‘(1) SANCTIONS.—The Secretary shall issue ings on railroad and grade crossing regulations establishing sanctions and pen- (b) PARTNERSHIP AND OVERSIGHT.—The Sec- retary shall foster a partnership among Fed- safety. Those hearings indicated that alties relating to violations, by persons oper- eral, State, and local transportation officials although significant progress has been ating commercial motor vehicles, of laws and agencies to reduce the number of rail- made in reducing the number of rail re- and regulations pertaining to railroad-high- road-highway grade crossings and to improve lated deaths, there is still room for im- way grade crossings. safety at remaining crossings. The Secretary ‘‘(2) MINIMUM REQUIREMENTS.—Regulations provement, especially when it comes to shall make provision for periodic review to issued under paragraph (1) shall, at a min- grade crossing safety. Unfortunately, ensure that each State (including State sub- imum, require that— in the past, jurisdictional disputes with divisions and local governments) is making ‘‘(A) the penalty for a single violation shall the House of Representatives got in the substantial, continued progress toward not be less than a 60-day disqualification of achievement of the purposes of this section. way of a number of important Senate the driver’s commercial driver’s license; and (c) CROSSING FREEZE.—If, upon review, and grade crossing safety initiatives. Now ‘‘(B) any employer that knowingly allows, after opportunity for a hearing, the Sec- that the House of Representatives has permits, authorizes, or requires an employee retary determines that a State or political reorganized, I am hopeful that good to operate a commercial motor vehicle in subdivision thereof has failed to make sub- violation of such a law or regulation shall be ideas will not be slain by the sword of stantial, continued progress toward achieve- jurisdiction. subject to a civil penalty of not more than ment of the purposes of this section, then $10,000.’’. States and local governments must the Secretary shall impose a limit on the be encouraged to enforce their laws (b) DEADLINE.—The initial regulations re- maximum number of public railroad-high- quired under section 31310(h) of title 49, way grade crossings in that State. The limi- against grade crossing violations and United States Code, shall be issued not later tation imposed by the Secretary under this must be encouraged to finally close than one year after the date of enactment of subsection shall remain in effect until the crossings. The split jurisdiction be- this Act. State demonstrates compliance with the re- tween the Federal Highway Adminis- (c) STATE REGULATIONS.—Section 31311(a) quirements of this section. In addition, the tration, The Federal Rail Administra- of title 49, United States Code, is amended by Secretary may, for a period of not more than tion, States, local governments, and adding at the end the following new para- 3 years after such a determination, require graph: railroads has led to a gridlock of re- compliance with specific numeric targets for sponsibility. This amendment helps ‘‘(18) GRADE-CROSSING REGULATIONS.—The net reductions in the number of railroad- State shall adopt and enforce regulations shatter that gridlock. highway grade crossings (including specifica- It is time to make the places where prescribed by the Secretary under section tion of hazard categories with which such 31310(h) of this title.’’. crossings are associated). rails meet roads safer for rail workers, SEC. . SAFETY ENFORCEMENT. (d) REGULATIONS.—The Secretary shall drivers, and pedestrians. (a) COOPERATION BETWEEN FEDERAL AND issue such regulations as may be necessary This amendment should be very fa- STATE AGENCIES.—The National Highway to carry out this section. miliar to the Senate. Its provisions are

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00012 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8853 taken from legislation unanimously The amendment is as follows: Mr. WARNER. Mr. President, indeed, approved by the Senate last year. At the appropriate place in the bill add the we have endeavored to clear this Provisions taken from the railroad following: amendment, but we have just been no- safety bill unanimously approved by SEC. . TRUCK LENGTH AND THE NORTH AMER- tified that a Senator has interposed an the Senate in 1994 consist of provisions ICAN FREE TRADE AGREEMENT. objection to the amendment. Perhaps dropped from the final Swift Rail Act Any Federal regulatory standard for single given that objection, the Senator from trailer length issued pursuant to negotia- Nebraska might wish to expand his ex- because they were outside the jurisdic- tions and procedures authorized under the tion of the House Energy and Com- North American Free Trade Agreement, planation of this amendment in the merce Committee. shall not exceed fifty-three feet. hopes that that expanded explanation These provisions require that grade Mr. EXON. Mr. President, the Exon might meet the objections of the Sen- crossing safety be made part of at least truck-length amendment is a very sim- ator who has interposed it. two intelligent vehicle highway sys- ple and straightforward provision. It Mr. EXON. I thank my friend. I will tems projects; ensure that States in- only applies to Federal regulations on be glad to expand on it a little bit fur- clude grade crossing closure and safety length issued pursuant to the North ther and maybe satisfy the concerns of enhancement plans in their highway American Free-Trade Agreement. all in this particular area. safety management plans; stiffen pen- Last year, I chaired a hearing on this We have so many last-minute objec- alties for truck violations of grade issue. Pursuant to the NAFTA agree- tions by so many people that I do not crossing safety laws and encourage co- ment, the governments of Mexico, Can- know who they are. It has been very operation between State and Federal ada, and the United States of America difficult to kill these rats when they keep coming out of the hay bin. authorities on grade crossing safety. are negotiating the harmonization of I repeat again, we have had in the Finally, the amendment gives the traffic safety laws. The Senate has Secretary power—but only as a last re- Commerce Committee and in the com- been very concerned about these nego- mittee of jurisdiction on this par- sort—to impose a statewide freeze on tiations and following the approval of grade crossings where a State has ticular piece of legislation various NAFTA approved a resolution express- studies and indepth hearings all aimed failed to make substantial, continued ing the sense of the Senate that these at safety, safety on the highways of progress toward crossing reduction and negotiations should bring Canadian America. There is a discussion ongoing improvement. and Mexican traffic safety up to United Mr. President, with the amendment, right now as to whether or not we States levels, not to lower United should increase by law the length and the Senate can vote to save lives. States standards. I am pleased to re- the width of trucks traveling on our Again, this amendment should be non- port that the Clinton administration highways. controversial and simply represents expressed their desire to involve Con- Generally speaking, this is a matter unfinished business from last year. gress in the adoption of any new safety that has been split. The Commerce I say to the managers of the bill that rules arising out of these negotiations. Committee has been generally recog- we have agreed to strike the two provi- Since the Federal Government main- nized to have jurisdiction over truck sions that your committee had objec- tains no single trailer length standard, lengths. The committee that is headed tion to, and we are going simply with there is a risk that a future adminis- by the two distinguished managers of the proposition that was originally tration could use the NAFTA negotia- this bill have always had jurisdiction cleared by the Commerce Committee. tions to increase lengths beyond the over the width. I cannot go into an ex- Mr. WARNER. Mr. President, we ac- generally accepted 53-foot standard. If planation of why one committee has cept the amendment. the administration sets a single trailer length and the other committee has Mr. BAUCUS. Mr. President, before length standard pursuant to NAFTA width. That is too complicated a mat- accepting the amendment, I would like negotiations, that exceeds 53 feet, con- ter for me to understand, and I cannot to commend the Senator from Ne- gressional action would be necessary to explain it because I do not know the braska. About 600 people a year die at implement the longer Federal stand- reason for it myself. railroad crossings. It seems to me we in ard. But we are not changing any of that, Congress have an obligation to do what The amendment does not restrict and we are not changing any lengths of we can do to reduce that number. State action. trucks in this amendment. All that we The Senator from Nebraska came up The amendment does not affect Fed- are saying in this amendment—very with an ingenious idea to reduce the eral legislative action. clearly defined—is that the administra- deaths. All the Members are indebted The amendment does not affect Fed- tion, under the authority granted the to him for his efforts. I commend the eral regulatory action not related to administration in the NAFTA agree- Senator. the North American Free-Trade Agree- ment, cannot automatically extend the The PRESIDING OFFICER. The ment. lengths of trucks over and beyond what question is on agreeing to the amend- The amendment is consistent with is the law of the land at the present ment. the intent of the Reigle-Exon NAFTA- time. The amendment (No. 1462) was agreed truck safety resolution approved by There is some indication that in to. the Senate following the approval of order to facilitate the movement and Mr. EXON. Mr. President, I move to NAFTA and in no way disrupts the to make it easier for some of the Mexi- reconsider the vote by which the long combination vehicle freeze Sen- can trucks to enter the United States, amendment was agreed to. ator LAUTENBURG and I authored as the administration might have the au- Mr. WARNER. I move to lay that mo- part of ISTEA. thority, under the terms of NAFTA, to tion on the table. I ask my colleagues to adopt this supersede the laws presently in place in The motion to lay on the table was narrow amendment which will preserve the United States with regard to agreed to. congressional discretion over truck lengths of trucks. AMENDMENT NO. 1463 safety and the NAFTA. All this narrowly defined amendment Mr. EXON. Mr. President, I send an This does not affect truck lengths at does is it writes into law and snatches amendment to the desk and ask for its all, as far as normal processes are con- away that part of the law that some immediate consideration. cerned. What this amendment would do might interpret as authority for the The PRESIDING OFFICER. The is to prevent the administration, administration unilaterally, without clerk will report the amendment. through any real or imagined parts of any consultation with the Congress, let The bill clerk read as follows: the NAFTA agreement, to increase alone laws, unilaterally to authorize The Senator from Nebraska [Mr. EXON] truck lengths unilaterally without any longer trucks on our highways under proposes an amendment numbered 1463. consideration at all by the Congress. I NAFTA that would otherwise be pro- Mr. EXON. Mr. President, I ask unan- think this is a safety matter, but it is hibited. That is a simple, straight- imous consent that the reading of the very narrowly drawn and has been forward explanation. With that, I do amendment be dispensed with. cleared by, as far as I know, all partici- not know what the objection would be. The PRESIDING OFFICER. Without pants who have an interest in this mat- If there is an objection, I would be glad objection, it is so ordered. ter. to attempt to address it.

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00013 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8854 CONGRESSIONAL RECORD — SENATE June 22, 1995 Mr. WARNER. An objection will be So I thank my long-time friend—I What comes to mind is the debate interposed, and we will discuss the ob- will not say ‘‘old’’ friend, but ‘‘long- that took place when Ronald Reagan, jection with the Senator from Ne- time’’ friend—for the joys that we have for example, nominated Robert Bork to braska. had together and the joint achieve- be a member of the Supreme Court. I At this time, I ask unanimous con- ments that I believe we have accom- recall that debate very well. Judge sent that the pending amendment be plished. Bork’s writings were plucked from the temporarily laid aside, such that the Mr. WARNER. Mr. President, I thank past. Those writings were provocative. managers can continue with other my good friend and colleague. I hope He was, in fact, a provocative professor amendments. we have many more years working to- who challenged conventional wisdom. The PRESIDING OFFICER. Without gether here in the U.S. Senate. He disagreed with the rationale that objection, it is so ordered. I note the presence on the floor of the was found and articulated in Roe Mr. WARNER. Mr. President, the Senator from Maine. I extend to him versus Wade. He found no right of pri- managers are continuing to make an apology. On two occasions I have in- vacy lurking or hidden in the penum- steady progress. We retain our hope dicated the clearance of the Senator’s bra of the Constitution. that we can vote on final passage be- amendment. But subsequent thereto, What took place with Bob Bork is fore 12 noon. I urge those very few Sen- objections arose. I believe it is now re- that he was demonized. It was charged ators—it is down to two or three Sen- solved, and I would appreciate if the that he would take us back to the ators now that would require further Senator from Maine could advise the boneyard of conservatism, to the dark reconciliation of their views. managers. The Senator from Virginia ages, maybe even to hell itself. I say Mr. President, on a personal matter, will continue to ascertain the status of that by virtue of a photograph that I if I might make a few remarks. I com- the Senator’s amendment. I am hopeful remember that was on the cover of mend the chairman of the Environment that it can be resolved. I thank the Time magazine. and Public Works Committee. Twenty- Senator from Maine, however, for his It was a portrait, a photograph, of five years ago, I first met the then patience on this matter. Robert Bork with his judicial robes on Governor of Rhode Island. In 1969, we I suggest the absence of a quorum. looking much like a cape. Of course, he formed a team in the Department of The PRESIDING OFFICER. The had the beard. There was a red glow to the Navy where he, as Secretary, and I, clerk will call the roll. the entire cover. And one could almost as principal deputy and Under Sec- The bill clerk proceeded to call the see the hint of horns emerging from retary, undertook a task at the height roll. the top of his head. One would have of the Vietnam war to give leadership Mr. COHEN. Mr. President, I ask thought that Mephistopheles himself to the Department of the Navy and to unanimous consent that the order for was about to be appointed to the Court, participate in other activities in the the quorum call be rescinded. would corrupt the Court, would rip up Department of Defense. The PRESIDING OFFICER. Without Now, 25 years later, we are still to- objection, it is so ordered. the Constitution and shred our rights gether. I do not say this with regret, Mr. COHEN. Mr. President, I ask of privacy. I might point out, sometime there- but I do note that he is still the boss unanimous consent that I be allowed to after Judge Ruth Bader Ginsburg, who and I am still the first deputy, so not proceed as in morning business. much has changed in a quarter of a The PRESIDING OFFICER. Without actually was endorsed by Robert Bork, century. There sits a man that has al- objection, it is so ordered. also found fault with the Court’s rea- ways stepped forward to lead in this The Senator from Maine is recog- soning in Roe v. Wade. She said the country, be it in the time of war, as he nized. Court had reached the right result but did in World War II, as a marine fight- f for the wrong reason. Yet we did not ing in the Pacific, and then being re- hear much criticism coming from the THE NOMINATION OF DR. HENRY left, the liberal element in our society, called back to duty during the Korean FOSTER conflict, as a captain, company com- at that time. mander, and then as Governor. And Mr. COHEN. Mr. President, I would I mention that because I think we now as a U.S. Senator, he has distin- like to offer a few comments on the are reaching a point in the confirma- guished himself as a public servant. He nomination of Dr. Foster to be Surgeon tion process in which it is going to be is greatly respected in the U.S. Senate, General. We are going to have further very difficult to have good and decent as well as in his own State. It is a debate this afternoon. We are going to people willing to step forward and sub- privilege for me to once again be in have one more rollcall vote in terms of ject themselves to the confirmation partnership, but as always, No. 2. whether or not the proceedings should process. My own friend, John Tower —I I thank the Chair. come to a close and a vote take place think what took place in this Chamber Mr. CHAFEE. Mr. President, I thank on Dr. Foster. against John Tower was a disgrace. I the distinguished Senator from Vir- I must say that this is one of those saw a good man who had his character ginia for his generous remarks. He is issues which has really galvanized the shredded by allegations and innuendo right that in our long-time friendship American people, those who are inter- and false charges. He was so bloodied we have worked together. It has not ested in this issue. We have letters and up that the critics said, ‘‘He has been been a one-two relationship. It has calls pouring into our offices from too damaged to be a successful Sec- been a partnership. He and I worked to- those who are strongly in favor, and retary of Defense. President Bush, why gether in the Defense Department those who are equally determined to don’t you just cut him down from that starting in January 1969 in the Navy, oppose his nomination. The rhetoric is tree that he is swinging from and take as Secretary and Under Secretary, and hot. It is, in fact, intemperate. I think him back to Texas?’’ So we saw an- we were in those posts together for 31⁄2 the passion of the letters finds its voice other challenge to an individual which years. right here in the U.S. Senate. That I felt was unwarranted. The distinguished Senator from Vir- voice, at times, is angry, raw, and even How many Republican nominees were ginia then became Secretary of the ugly. rejected because of membership at all- Navy and went on after that to head Mr. President, the charge has been white clubs? It did not matter that the bicentennial commission, was made that we are sacrificing Dr. Foster they were not racist. It did not matter elected to the U.S. Senate in 1978, and on the altar of right-wing radicalism. I that they had employed blacks or His- he has served here with great distinc- must say that there have been a num- panics or other minorities in their tion. So it is indeed a marvelous friend- ber of good and decent people who have businesses or even in their homes. If ship and association that we have had found their integrity and character they were members or had member- together. And now on the Environment shredded on the altar of left-wing lib- ships in an all-white club, that was Committee, where he is handling this eralism. That is one of the problems enough to bring down their nomina- legislation so effectively, doing such an that I see taking place in this Chamber tion. excellent job as chairman of the sub- and elsewhere. There seems to be a The same rule, however, was not ap- committee dealing with this type of double standard on display, what we plied when it came to people like Web- legislation. might call a case of situational ethics. ster Hubbell, who also belonged to an

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00014 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8855 all-white club at that particular point. I think, lost some of our moorings. We The PRESIDING OFFICER. Without But we had a different standard im- now resort not only to challenges of objection, it is so ordered. posed. philosophy but to challenges of char- So I suggest we have to get away acter. In doing so, I think we have low- f ered the standard for civil debate and from this double standard that when NATIONAL HIGHWAY SYSTEM discourse in this country. those who raise questions about some- DESIGNATION ACT one’s nomination by virtue of their dif- The anger we see outside of these ference of philosophy, that we not Chambers is being reflected inside the The Senated continued with the con- charge it is based upon right-wing radi- Chambers. We do not want to tolerate sideration of the bill. calism any more than it is based on or promote barbarism outside the Mr. WARNER. Mr. President, on be- left-wing radicalism. We have to put a gates. We do not want to promote it in- half of the management, we continue stop to this situation. We have to re- side the gates. I think what we have to to make good progress. It is obvious we member that Bill Clinton won the elec- do is lower the rhetoric and the will not have a vote before 12 o’clock, tion. He is the President of the United charges and the countercharges about at which time under the previous order States. It is my own judgment he is en- who is sacrificing whom on which altar the Senate then goes forward to debate titled to the nominees of his choice. and stop imposing double standards the Foster nomination. We may disagree with those nomi- and situational ethics and come back Mr. BAUCUS. Mr. President, I thank nees, but every time we disagree with to what I believe to be the correct the Senator. I do not know if the Sen- Bill Clinton’s philosophy, President standard. Either we find Dr. Foster to ator knows this, but Senator EXON has Clinton’s philosophy, or that of the in- be medically, professionally unquali- withdrawn both his other amendments. dividuals he nominates, we should not fied to serve in this position, or we find Mr. WARNER. Good. then, by virtue of our disagreement him to be so morally bankrupt that it Mr. BAUCUS. The only potential with their ideology or practice, turn it would be a discredit and an injustice to amendments remaining, in addition to into a character issue and then begin have him serve in that position. the managers’ amendment, are poten- Frankly, I do not find that we have an all-out assault on character. tial amendments by Senator LAUTEN- measured up to that burden of proof. I We obviously have a duty to chal- BERG, Senator NICKLES, Senator SAR- believe Dr. Foster is a good and decent lenge philosophy and policies when BANES, Senator SMITH, and Senators man. I believe President Clinton is en- they are fundamentally in conflict STEVENS and MURKOWSKI. titled to have his nominee confirmed, with our own. But we also have to deal Mr. WARNER. Mr. President, I am even though we might disagree or I pleased to say to my colleague—and to fairly with these individuals. We have might disagree with his particular announce to the Senate—that Senator to remember, also, the axiom that bad views or practice. Nonetheless, that is SMITH’s amendment is now in a situa- appointments make bad politics. The not the test that should be imposed. President of the United States, when The test should be, Is he professionally tion where it will be resolved. I am not he makes an appointment, is held ac- qualified and does he have a moral sure of the final outcome. But we will countable for that individual’s record, character to serve in that position? be informed. that individual’s character, that indi- There are those on this side who be- Mr. CHAFEE. There will be an vidual’s performance. And, barring evi- lieve fundamentally he has misrepre- amendment. dence of incompetence as far as tech- sented the number of abortions that he Mr. WARNER. There will be an nical qualifications are concerned, pro- performed during the course of a long amendment, which I have learned of fessional qualifications, barring clear practice. That is, perhaps, a legitimate from the distinguished chairman of the and convincing evidence of moral defi- issue to be raised. But I do not think committee. ciencies that would prevent that per- we ought to be engaged in savaging Mr. CHAFEE. Mr. President, the son from occupying that position, I each other, in attacking each others’ Smith amendment we are working out think we have an obligation to confirm motives. This is a serious issue and is now, and the language. It is my under- the President’s nominees. one that ought to be debated in that standing that will be an amendment What we have to stop in this system fashion without resorting to a lot of that will be acceptable. is, really, shredding the character of hurtling of invective. Mr. BAUCUS. It may be acceptable. the individuals who come before the Mr. President, I hope my colleagues We are still running the trap lines over body for confirmation. If we disagree will in fact allow a consideration of Dr. on this side. philosophically, let us be very up front Foster on the merits. That was in fact Mr. CHAFEE. Well, in other words, I about it and base it on that. What I see allowed for Judge Bork. He was de- would not envision a vote on it. taking place is something of a vari- feated. It was allowed for Senator Mr. WARNER. Mr. President, I sug- ation of what Senator MOYNIHAN of Tower, whose nomination was also de- gest the absence of a quorum. New York talked about in his brilliant feated, and others whose names never The PRESIDING OFFICER. The piece a couple of years ago, called ‘‘De- really made it to the floor by virtue of clerk will call the roll. fining Deviancy Down.’’ What he was their membership in what were de- The legislative clerk proceeded to talking about at that time was events scribed as racist clubs or organizations. call the roll. that took place in the 1920’s or 1930’s, My hope is that we can return to a Mr. KENNEDY. Mr. President, I ask some decades ago, that we would look level of civil discourse in this society unanimous consent that the order for at and say, ‘‘What a horrible thing that of ours, rather than the shouting and the quorum call be rescinded. was.’’ The Saint Valentine’s Day mas- the anger that we see being displayed The PRESIDING OFFICER (Mr. from day to day, and really try to deal sacre was one he pointed to. There KYL). Without objection, it is so or- were, as I recall, seven people involved with these issues on the merits. dered. I think Dr. Foster is entitled to have in that. Four were killed by three oth- his name considered on the merits. We ers, or vice versa. That incident made f hope there will be enough Members worldwide news. It has gone in the his- who will vote to terminate any at- EXECUTIVE SESSION tory books. Today, it is likely that tempt to filibuster his nomination. might not appear in bold headlines in Seeing the hour of 11:30 is about to be the Metro section of the New York reached, I yield the floor. NOMINATION OF HENRY W. FOS- Times or the Post or elsewhere. Mr. President, I suggest the absence We have seen so much violence TER, JR., TO BE MEDICAL DIREC- of a quorum. TOR IN THE REGULAR CORPS OF spread in our society we have become The PRESIDING OFFICER. The THE PUBLIC HEALTH SERVICE inoculated against it, almost. We have clerk will call the roll. AND TO BE SURGEON GENERAL been immunized against a sense of out- The assistant legislative clerk pro- rage about the level of deviancy be- ceeded to call the roll. OF THE PUBLIC HEALTH SERV- cause we defined it down. Mr. WARNER. Mr. President, I ask ICE It seems to me we have to also talk unanimous consent that the order for The PRESIDING OFFICER. Under about defining civility down. We have, the quorum call be rescinded. the previous order, the hour of 12 noon

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00015 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8856 CONGRESSIONAL RECORD — SENATE June 22, 1995 having arrived, the Senate will now go party, but rather with strong bipar- program to deal with the problems of into executive session to consider the tisan support. teenage pregnancy and the school drop- nomination of Dr. Henry W. Foster, Jr., We have heard a great deal on the out problem. He developed a program to be Surgeon General. The clerk will floor of the Senate and in the press, that has made such a difference in the report the nomination. that Dr. Foster was selected for narrow lives of young people, that it has been The legislative clerk read as follows: partisan or political reasons. The fact recognized by a President, George The nomination of Henry W. Foster, Jr., to of the matter is that he was nominated Bush, a Republican President of the become Medical Director in the Regular because of a very distinguished record. United States. And what a record it has been—what Corps of the Public Health Service, subject Now that is the record of Dr. Foster. to qualifications therefor as provided by law a record it has been. Dr. Foster pos- and regulations, and to be Surgeon General sesses an extraordinary record of serv- That is the record that is before the of the Public Health Service. ice. We have a nominee who has dem- U.S. Senate. That is the record of serv- The Senate resumed consideration of onstrated his commitment to the need- ice before us. By voting for Dr. Foster, the nomination. iest people in our country and our soci- we are not doing Dr. Foster a favor, we Mr. KENNEDY. Mr. President, as I ety. After he graduated from medical are doing a favor to all Americans. We understand, there is an agreement to school, he could have practiced medi- are doing a favor to those parents of vote at 2 o’clock. So there is a 2-hour cine in any of the cities of this country those teenagers who are confronted time limitation, an hour to be con- and in many rural areas and had a very with the sad prospects of teenage preg- trolled by the Senator from Kansas, comfortable life. But, no, he did not do nancy, welfare dependency, and hope- lessness. We are doing a favor to all Senator KASSEBAUM, and the other that. hour to be controlled by the Senator What did he do? He went to the poor- those who struggle with the life-threat- from Massachusetts. est areas of America. Why? Because he ening illness of cancer. We are doing a The PRESIDING OFFICER. That is wanted to serve his fellow human favor to all those whose families or the order. beings. He went to the rural South— friends or neighbors are afflicted with Mr. KENNEDY. I yield myself 8 min- and treated women and their children. AIDS. We are doing the United States utes. Most of Dr. Foster’s patients had never of America a favor, which needs a high- Mr. President, over the period of the even seen a doctor before. He went into ly principled and dedicated person to last 24 hours, I have tried to look at homes and houses down there that, in serve his country. That is what we this whole nomination, including the many instances, did not even have elec- have here: A good, outstanding, selfless extensive hearings that we had as well tricity or hot water. He went there to individual. as the debate on the floor, to try to de- help and assist deliver babies. To pro- Now, you would not understand that, termine what is really before the U.S. vide pre-natal care to women who had necessarily, from those who have spo- Senate. never had access to pre-natal care be- ken in opposition to this nomination, What we have before the U.S. Senate fore. He is a baby doctor. A baby doctor because they have their own message, is an extraordinary nominee—an ex- who is about service to his community. and their message is very clear. They traordinary human being—who is emi- Service to people. He is a good and de- want to send a very particular mes- nently qualified to serve as the na- cent man who has committed his entire sage. Sure, they have distorted his tion’s Surgeon General. And I thought life—his entire life—to service. Not record, misrepresented his record, and back to the beginning, and asked my- only did he engage in an program of in spite of the fact that Dr. Foster at self: ‘‘What shape did the process service in rural Alabama, but his the committee hearings, and the com- take?’’ record shows that he was widely recog- mittee itself, thoroughly answered and We know that Dr. Henry Foster’s nized for his dedication, ability, leader- refuted the shallow allegations against name was brought to the attention of ship and expertise. him, they are repeated again and again He was recognized as a physician. He President Clinton by a very distin- and again and again and again. And was recognized as an educator. He was guished former Republican Cabinet those that repeat them do a disservice recognized as a researcher in sickle cell Member, Dr. Louis Sullivan, with to themselves, they do a disservice to anemia and infant mortality and the whom many of us worked very closely themselves. problems facing the youngest and most during his leadership at the Depart- vulnerable in our society. What their message is and why this ment of HHS. We know that Dr. Fos- He was recognized by the Institute of is being done is very clear to me. They ter’s nomination was seconded, effec- Medicine, perhaps the most prestigious are doing this because they want to say tively, by the presence of Lamar Alex- assemblage of the medical profession in to any and every doctor in America, ‘‘If ander, a Republican Governor, who rec- our country, being elected to that pres- you ever perform an abortion, if you ognized the work of Dr. Henry Foster tigious body with a regular member- ever do so, even to save the life of the and his leadership ability in con- ship of only 500 members. In 1992, he mother, you’ll never get a position of fronting the problem of teenage preg- was elected by the membership to serve confidence or leadership in the U.S. nancy and asked him to develop a pro- as one of only 21 members of the Insti- Government, because you’ll never gram to do so. Those are two Repub- tute’s governing council—one of only make it through the confirmation licans that right from the start rec- 21 members selected by the members of process by the U.S. Senate.’’ ommended Dr. Henry Foster for this the Institute—his peers. What an ex- important position. That is the message. We understand traordinary, extraordinary recognition that. They are not fooling anyone. And even on the Labor Committee, of a man who was selfless, dedicated Senator FRIST—Dr. FRIST—the one When, on one hand you have Dr. Fos- and passionate about serving those liv- ter’s extraordinary record of service Member of the U.S. Senate who is a ing in the poorest areas of this coun- doctor and who knows Dr. Foster and and on the other, you have the re- try. peated distortions, misrepresentations, who has supported his nomination, During his career, after numerous ac- and shallow allegations, the message is coming forward and speaking on behalf complishments, he was selected to be very clear and it is motivated by nar- of Dr. Foster’s extraordinary record Dean of the Meharry School of Medi- row political concerns and interests. and qualifications as a physician, edu- cine—a distinguished medical school. That is the message that is being sent cator and community leader. Did he stop with that? No. What did he to doctors in this country. That is the So, looking back from the very be- want to do? He wanted to be a teacher message that is here. ginning, we see that this nomination in the classroom as well as dean of the was borne of the effort to put forth medical school. Why? Because he want- Dr. Foster’s opponents prefer to play someone who has been recognized as ed to work with young people. He a negative card. When all of America is having a distinguished record—and he wanted to help train them, and bring struggling to look upward, higher—to has had a distinguished record, which I more qualified and compassionate doc- reach out for a better future for them- will speak to—but also someone who tors into the field of medicine. selves and their children—his oppo- was not going to be necessarily identi- Was he satisfied with that? No. He nents would have us languish in dark- fied with any one particular political went to his community and developed a ness. They do not want to recognize the

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00016 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8857 light, the hope, that Dr. Foster rep- Foster and what message and tone he message as they vote today. This man resents for the future of this country. can bring to this office. But we are not. deserves a vote on the floor of the Sen- During the course of Dr. Foster’s tes- We are here debating whether or not ate. But above all, he deserves our ap- timony at the hearings, Senator PELL Dr. Foster will have the opportunity to plause for going through this process asked him what has been one of the have an up-or-down vote on the floor of and showing us what a leader really most inspiring moments of his life. And the Senate. looks like. Dr. Foster answered, ‘‘Well, it was just I have been working with Dr. Foster I thank my colleagues and I yield the after I and my classmates had grad- for a number of months now. It is ex- floor. uated from seventh grade, and my fa- tremely disappointing to see this fine Mr. KENNEDY. I yield 5 minutes to ther brought us out to the edge of town man, after all he has been through, the Senator from California, Senator and treated all the children in our class being denied a vote on the floor of the BOXER. to an airplane ride.’’ Two children in Senate. I hope our colleagues across The PRESIDING OFFICER. The Sen- the front with the pilot, children in the the aisle can step back today and think ator from California [Mrs. BOXER] is back—Dr. Foster described the way he about the larger message. Think about recognized. Mrs. BOXER. Mr. President, I thank felt when that plane took off. what will happen if we block this vote my friend from Massachusetts and my He said, ‘‘When we got up in that air, today and do not allow this man with friend from Washington for their ex- every child that was in that class great dignity to have the vote that he traordinary leadership in trying to get looked out and they could see trees as deserves after the last 5 months. a very simple premise fulfilled, and far as the eye could see. They could see Throughout this debate, I have been that premise is that Dr. Foster de- that there was a broader land, that focusing on what Dr. Foster brings to serves an up-or-down vote. It is wrong there are lakes out there and there are this office. Certainly, he brings the to deny this man a vote. Let him stand hills.’’ issues of women’s health care clearly to the forefront of this Nation for the or fall on his merits or demerits. Perhaps for the first time, they saw I saw him standing next to the Presi- first time in our history, and that is a that there was a broader America than dent yesterday at the White House, good thing. Certainly, he brings the just the school house where they went saying, ‘‘All I ask for is fairness.’’ He ability to send a message to our teen- to the school, and their own small wants a vote, and 57 Members of the agers, a vision of hope, a vision that home where they grew up, in a seg- Senate—Democrats and Republicans— they can be somebody. That is some- regated society with little opportunity. said, ‘‘That is right, Dr. Foster; you de- thing that is needed in this Nation. He said: serve a vote.’’ But a minority said no. But I fear, Mr. President, that many That plane ride was one of the most inspir- If I were one of them, I would not have of our American viewers today do not ing moments of my life, because it taught slept very well last night because it is realize that that is not what this vote me that there is a future out there, and that a mean-spirited thing to do to a decent I could be a part of it. My hope and dream of is all about. This vote has become a American. It is not fair. If Americans service is to provide that same ‘‘airplane vote about Presidential politics, and I are anything, they are fair. ride’’ to the young people all across this find that very sad. As we have worked country. Dr. Foster is a pawn in a political to get to the last three votes, it has game—a pawn in a political game—a That is the soul of Dr. Foster. You been surprising and saddening to hear physician who went to work in rural would not know it listening to the dis- what some of my colleagues have ex- America when he could have had a tortions and misrepresentations of the pressed. They do not feel they can vote cushy job. He is a physician who went opposing side; you would not know the for this candidate—not because he is into the toughest, most difficult parts true record of the nominee who is be- not qualified, not because they think of our Nation to help lower the infant fore us. You would not know it when the process should be fair. They tell me mortality rate, and he did. He is one they repeat and repeat and repeat they do not want to be seen as giving who took on the problem of teenage these charges that any fair-minded per- one Presidential candidate a vote over pregnancy. It is incredible that my col- son would understand have been re- another Presidential candidate. It has leagues on the other side of the aisle sponded to. become an issue of winners and losers. who are trying to block this vote criti- How many political primaries are we Who are the winners? Who is going to cize his program. What did they ever do going to have on the floor of the U.S. win? I can tell you who the losers are. in their lives to help stop teenage preg- Senate? The election is 18 months The losers are the American people. nancy? Let us hear what they have away. What was yesterday? Super The American people will be the losers done. Oh, they throw the stones. What Wednesday? What is today? Super because not only will they lose a fine have they done? Have they walked into Thursday? What are we going to say to candidate for Surgeon General, they the toughest parts of America and every person that is nominated? Do we will lose because the process has been taken a problem on that nobody else tell them that they are going to go sullied, and I think that is a sad state- wants to take on? I do not think so. through this pillory to serve the Amer- ment for this Nation. They have a pretty cushy job right ican people? I think the winner—no matter what here. But they throw stones at a man That is the issue. Are we going, in the outcome of this vote—is Dr. Foster. who should be honored—and, by the this institution and in this body, to ap- He is a man of dignity, a man of cour- way, he has been honored by President peal to the better instincts of its mem- age, and he is a man of honor. Every Bush, a Republican, I might say, who bership? Or are we going to be slaves to one of us—every one in this Nation— gave him a Thousand Points of Light those kinds of interests that are hold- should stand up and give this man a Award. He was honored by Dr. Louis ing hostage the nomination process loud round of applause. He deserves it. Sullivan, a former Republican Sec- here before the U.S. Senate? I hope, He has lived through torture—name retary of HHS, who recommended him Mr. President, that the higher angels calling, watching his whole, entire life for this job. People say President Clin- of our character will come out today be put in print—and he has shown all of ton was playing politics. I have to tell when we vote at the hour of 2 o’clock. us, as he sat before the committee, you, this was the most bipartisan ap- I see my colleague on the floor, the that he is a man of dignity. Dr. Foster pointment I have seen. Senator KEN- Senator from Washington, who has certainly is the kind of person that de- NEDY made that point at a press con- been such a leader on this issue and serves to be in the Surgeon General po- ference yesterday. It is a truly bipar- who speaks with such eloquence and in- sition, and he is also a man we all want tisan appointment. sight into the qualifications of this to be like. He is a man of honor, and he Dr. Foster is being denied a vote be- nomination. should be very proud today that he has cause two Republican candidates for I yield her 5 minutes. shown this Nation how to be a leader President want to block a vote on him. Mrs. MURRAY. I thank my colleague and what we should expect of leaders The Republicans are being told, ‘‘You from Massachusetts for his outstanding and what we want our Nation’s leaders have to be loyal. Do not allow a vote work on this nomination. I remind my to look like. on this man. It will hurt our chances.’’ colleagues that we should be here de- I hope that all of our colleagues will Playing politics is not what a U.S. bating the nomination of Dr. Henry step back and think about the larger Senator is supposed to do. They are

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00017 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8858 CONGRESSIONAL RECORD — SENATE June 22, 1995 supposed to be fair. They are supposed dence of misconduct, insufficiency of A former U.S. Air Force captain; to be just. They are supposed to step up professional qualifications, or flaws in An examiner for the American Col- to the plate and put political consider- character—the Senate owes it to the lege of Obstetricians and Gyne- ations behind them and give a man a President and the nominee to conclude cologists; chance. its advise-and-consent role and grant An advisor to the National Institutes I have to tell you, maybe these two its approval. I say that particularly in on Health and the FDA on maternal political candidates for President will view of what has happened to his prede- and child health; do well in the short run. But do you cessor. A member of the National Board of know what I think? In the long run, I In my belief, it is not appropriate for Medical Examiners, the accreditation do not think they will do very well be- a minority of the Senate to prevent a council for graduate medical edu- cause they are out of step with main- vote on a Presidential selection based cation, and the board of the March of stream America. If you ask the Amer- on unsubstantiated arguments about Dimes; ican people what are the two important what Dr. Foster might have known or A Distinguished Practitioner recog- things they want to see in a President, should have said. That is not the Sen- nized in 1987 by the National Acad- it is fairness and courage. And it is not ate’s role. emies of Practice; fair to deny this man his day. It is not In addition, it is unprecedented to Acting president of Meharry Medical courageous to cower to the right wing deny the President even an up or down College, where he has served for the of one political party. So, in the long vote on a well-qualified nominee for a last 21 years as dean of Medicine and run, mainstream America is not going public health position such as Surgeon Chairman of Obstetrics. to look kindly at these two can- General. On the issue of the contradictory es- didates—mark my words. Therefore, I believe that Dr. Foster is timates of abortions Dr. Foster per- I think this debate has been some- entitled to an up or down vote by the formed and his overall credibility: what disturbing. Last night I was on a Senate. Not a procedural vote, but a A review of 38 years of medical TV show with one of the leading oppo- real majority vote that will show the records determined that the actual nents of Dr. Foster, and that Senator Nation that a majority of Senators number of abortions Dr. Foster has called Dr. Foster an abortionist. I favor Dr. Foster. performed or been the doctor of record think it is an outrage. He owes Dr. Fos- Let me also say that I believe that are small in number [39]—particularly ter an apology. Dr. Foster brought many of the concerns raised by Dr. in view of his estimated delivery of thousands of babies into this world and Foster’s opponents over the last 5 10,000 live babies. months have been a smokescreen of he is called an abortionist? Thirty-nine The initial confusion surrounding false issues, innuendo, and other dis- abortions over 38 years, a legal medical this number resulted from Dr. Foster tractions designed to obscure the cen- procedure, and he calls him an abor- having been listed as the attending tral issue here, which is a woman’s tionist on national TV. He is lucky he physician for additional procedures right to choose an abortion. cannot be sued for defamation of char- that he himself did not perform, as well However, I am grateful that Dr. Fos- acter. as disputes over whether Dr. Foster is an ob-gyn, an obstetri- ter’s nomination has been investigated hysterectomies Dr. Foster performed cian/gynecologist, a decent man, and approved by the Labor Committee by a to protect the health of women should he deserves a vote. I stand very proudly 9–7 vote and finally been brought to the be counted as abortions if pregnancies with the Senator from Massachusetts, Senate floor. It is my hope that in the were discovered during the procedure. with the Democratic women Senators, remaining time for debate, Dr. Foster’s During his hearing, Dr. Foster pro- with the 11 Republicans who had the real qualifications can be made clear vided the following explanation of the guts to stand up and say fair is fair, and any remaining issues can be raised early contradictions: ‘‘In my desire to and I hope and pray that we have a dif- and answered, once and for all, and provide instant answers to the barrage ferent result today. If we do not, I that a few more Senators can be per- of questions coming at me, I spoke think the fallout will be much greater suaded. without having all the facts at my dis- than anyone now anticipates. The concerns of Dr. Foster’s critics posal.’’ The majority of the committee Mr. President, I yield the floor. boil down to a few basic elements, The PRESIDING OFFICER. Who which we have continued to hear over found this explanation reasonable yields time? and over. These arguments are: enough to approve the nominee. Mr. KENNEDY. Mr. President, how Dr. Foster has insufficient profes- On the claim that Dr. Foster con- much time remains? sional qualifications and credentials to sented to the infamous experiments at The PRESIDING OFFICER. The Sen- serve as Surgeon General; the Tuskegee Institute: ator from Massachusetts has 40 min- Dr. Foster provided contradictory in- While Dr. Foster was at Tuskegee utes remaining. formation on the number of abortions during the time of the study, his exper- Mr. KENNEDY. I just yield myself 15 he has performed; tise was maternal and child health seconds, and then I will yield 5 minutes Dr. Foster knew about the Tuskegee rather than sexually transmitted dis- to the Senator from California. experiment, in which 400 black men eases; In one of the most important consid- with syphilis were left untreated, be- A full committee investigation erations in debate, the silence on the fore it was revealed in 1972; showed that the possibility Dr. Foster other side is deafening—their willing- Dr. Foster performed sterilizations of knew about the study is tenuous at ness to engage in this debate and dis- mentally retarded women during the best, resting on assumptions about cussion, and we have nothing to speak 1970’s; and what he should have known or might about on the other side. Dr. Foster’s I Have a Future teenage have been told, rather than direct evi- I yield 5 minutes to the Senator from pregnancy prevention program focuses dence; the doctor whose statements California. on contraception rather than absti- have been used to suggest Dr. Foster Mrs. FEINSTEIN. Mr. President, I nence. failed to act promptly has stated re- thank the Senator from Massachusetts. While most of these issues have al- peatedly that Dr. Foster did not know I thank the Senator from Washington ready been thoroughly addressed and of the study before it was revealed in for all the work she has done on this dismissed, I would like to briefly sum- 1972. matter. marize the factual responses to each of Without any direct or concrete evi- I really address my remarks, Mr. them, based on what I have learned: dence that Dr. Foster actually knew President, to 43 Members of this body, On the issue of Dr. Foster’s qualifica- about the experiments and failed to and I want to share with them some of tions and credentials, I believe that take action, it is not reasonable to my thoughts and see where they reg- they are impressive. Dr. Foster, is in judge him a participant or to burden ister with them. rough chronological order: him with the responsibility of having Let me start by saying that my basic A graduate of Morehouse College and to shut down an experiment he did not belief regarding this nominee is that— the University of Arkansas medical control nor was he a party of this ill- in the absence of any compelling evi- school; conceived study.

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00018 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8859 On the assertion that Dr. Foster per- nomination is that there is now a ques- been adequately answered leaving us formed sterilizations of mentally re- tion whether any obstetrician could with a candidate that the New York tarded women: ever hold the office of Surgeon General Times says ‘‘fails the candor test.’’ Dr. Foster sterilized retarded girls at if they have performed even one legal, These problems, problems that the the request of their parents under the medically appropriate abortion. administration and problems that the established practice guidelines and eth- That clearly is the question in my nominee himself were largely respon- ics of the times, and wrote sensitively mind. I really believe the issue is that sible for, I believe have decided the about these cases and the danger and simple. And I strongly believe that the outcome of this procedure. But I would tragedy of forced sterilization in 1974; answer to that question should be yes. like to spend a moment this afternoon If there were any real questions I believe this body has but one choice on the broader lessons that should be about Dr. Foster’s ethics, he would not and I am hopeful that, of the 43 there taken from the tenure of the former have been endorsed by every major are 3 who will come forward and simply Surgeon General, Dr. Elders, and the medical association in the United say, in fairness, Dr. Henry Foster de- apparent failure of this nominee to re- States. serves a vote in this body. ceive the necessary support for this po- On the claim that I Have a Future I yield the floor. sition, lessons that hopefully will in- Program does not promote abstinence: Mr. COATS. Mr. President, I doubt form the selection of the next nominee This after-school program focuses on that anything I say will shatter the for this office. delaying teenage pregnancy, including deafening silence the Senator from The President of the United States providing education about abstinence Massachusetts alluded to. But it will at needs to understand that there are mil- and increasing self-esteem as a way of least interrupt. We have a number of lions of Americans committed to the preventing early sexual activity. Only speakers. Mrs. KASSEBAUM, who nor- protection of innocent life and the pro- if necessary are participants referred mally would be managing this, is tection of the innocence of childhood. to medical personnel for information chairing a hearing of the Labor Com- They are not fanatics to be demonized. about contraception; mittee. I know the Senator from Mas- They are part of the responsible main- Every press article and description I sachusetts, who was a former chairman stream of American life. have seen talks about how the program of that committee, understands that They understand that this adminis- emphasizes abstinence and does not sometimes they do not end as quickly tration disagrees with them. But what just throw condoms at the kids. Wheth- as you would hope. She will be here as they do not understand is why this ad- er or not all program brochures include soon as she can. A number of other ministration has chosen to actively as- the word ‘‘abstinence’’ or not is not the Members plan to speak on our side. sault their deepest beliefs, to disdain- central issue. Several of them are tied up in that fully dismiss their highest ideals, to In fact, the central motivation for same hearing but will be here shortly. treat them as if they were beneath ci- the I Have a Future Program was Dr. Mr. President, if yesterday’s vote is vility. Foster’s observation that simply pro- any indication, Dr. Foster will not be This bias has been particularly obvi- viding contraceptives to at-risk teens confirmed as the next Surgeon General ous in the Office of Surgeon General. was not an effective form of pregnancy of the United States when we take this The former occupant of the Surgeon prevention for at-risk teens, and self- vote at 2 o’clock. I believe that conclu- General’s Office, Dr. Joycelyn Elders, esteem and personal goal-setting must sion is justified by the record. The abdicated her role as spokesman for be included. Labor and Human Resources Com- public health entirely, and became Should he be denied because absti- mittee held what everyone has de- what appeared to be a full-time spokes- nence was not on a piece of paper? scribed as thorough and fair hearings. woman for radical causes. And this In all, here is a man who has impres- Dr. Foster was given every opportunity nominee has shown, as I believe the sive qualifications, an upstanding char- to present, at whatever length of time record indicates, little sensitivity for acter, and reputation for integrity in he required and in whatever detail or the moral concerns of countless Ameri- his home community and among his depth he required, his qualifications, cans whom he himself called ‘‘right- professional peers. He has no glaring his experience, and to present his an- wing extremists.’’ flaw that justifies denying him con- swers to the questions that were raised. There is almost a mantra coming out firmation. Many have concluded, on the basis of of the White House, a mantra coming Instead—and this is increasingly that hearing, those who sat through out of the Democrat Campaign Com- clear—there is just one real reason the hearing and those who have exam- mittee, a mantra being heard on this that he is being opposed: he performed ined the record, that Dr. Foster did not floor that any opposition to the Presi- 39—the number is disputed—medically satisfactorily answer the many dis- dent, almost on any subject, is the necessary legal abortions as part of a turbing questions that were raised, work of right-wing extremists. Boy, career that includes 10,000 deliveries of that a disturbing pattern of behavior what a powerful group they are. I am live babies. and of responses—whether directed by not sure even if we can identify who What I would like to point out is that the White House or not I do not know they are. But any opposition raised to 39 is an amazingly small number, con- for sure—emanated from those hear- what the President deems his priority, sidering the human situations that Dr. ings and left many with serious ques- his agenda for America, is dismissed ei- Foster has encountered—women who tions. I detailed many of those in a let- ther by the President or by his have been raped; women whose mental ter to my colleagues, a very lengthy spokespeople as just the work of the or physical condition is such that they letter comparing the public documents, right-wing extremists and, therefore, could not give birth; questions of major matters of public record, which in to be dismissed. fetal deficiencies. many numerous instances was in direct I would suggest it goes to something The fact is that out of 10,000 live ba- contradiction to Dr. Foster’s version of far deeper than that. It goes to an un- bies delivered, there were few cases the various incidents; issues in this de- dercurrent that threads its way where Dr. Foster performed a medi- bate that arose. Some of those will be throughout American life, American cally necessary and appropriate abor- addressed here today. That, however, culture. It goes to the values that tion. To me, this is a very small num- has been a matter of examination for many Americans hold dear, people who ber. all Senators. They have all had the op- do not even belong to any particular Were the procedures legal? Were they portunity to do that, and in a suffi- political party, people who would not in accord with medical standards and cient length of time to do that. begin to identify themselves as right performed as part of his established re- I believe that the conclusion that Dr. wing or extremist or anything else— sponsibilities? The answer to these Foster is not the right man for this job just concerns that affect everyday questions, of course, is yes. Nothing is justified by the record. Questions of Americans, American families, Amer- has been raised to contradict this medical ethics that were raised are not ican parents, those of us that are con- statement. just disturbing, in my opinion they are cerned with some of the breakdown in What is clear to me from the last 5 disqualifying. Questions of credibility our culture and some of the under- months of debate over Dr. Foster’s in this Senator’s opinion have never mining of our values.

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00019 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8860 CONGRESSIONAL RECORD — SENATE June 22, 1995 So we raise questions about the bully we always agree with. But we are ask- not. I have only done those things that pulpit that is being used by the admin- ing you to send us someone who does were legal and medically necessary.’’ I istration, by the President and by the not bitterly divide us as a people. If said, ‘‘Did you ever do a trimester Office of Surgeon General to advocate your administration fails to do this, abortion?’’ He said, ‘‘Absolutely not.’’ I an agenda that many of us feel is out of the consequences will be immediate, said, ‘‘Did you ever do an abortion for the mainstream of what the Democrats and I am afraid unfortunate. Because if sex selection?’’ He said, ‘‘Absolutely describe as the mainstream, but very the President insists that the Office of not.’’ I said, ‘‘Did you ever sterilize much in the mainstream of what Amer- Surgeon General is a bully pulpit for mentally retarded girls without paren- ica has tried as America’s agenda. We radicalism, for advocacy, we will be tal involvement?’’ And he said, ‘‘Abso- can debate this. We can debate what is forced to ask if the office should exist lutely not.’’ the best course of action to take, and at all. I hope this is a decision we do So that is the record, and it is on the what direction we ought to go and not have to make. And I hope that the record. ‘‘Absolutely not.’’ And on this what our values ought to be. We are President will make his next choice sterilization study that has been dis- not very successful at legislating those with a lot more care than he exercised cussed, the record is clear. Dr. Foster’s values. And I do not think it is possible on his last two choices. name is on a study of a variety of peo- to legislate those values. These prob- Mr. President, I yield the floor. ple who conducted hysterectomies on lems are not going to be solved in this Mr. KENNEDY. Mr. President, I yield retarded women, and on those three in Chamber. They are going to be decided 5 minutes to the Senator from Mary- which he was involved—and he was in- and solved around the kitchen table, in land. volved in only three—there was paren- the family rooms, and where Ameri- The PRESIDING OFFICER. The Sen- tal involvement and parental consent. cans live and work, and where the most ator from Maryland is recognized. They were acting in loco parentis, in discourse takes place among our citi- Ms. MIKULSKI. I thank the Chair. the guardianship role of parents. Now, zens. Mr. President, this is decision day on we believe parents should be involved. I But there are many who are con- Henry Foster. This is not decision day support parental consent for abortion. cerned that the Office of Surgeon Gen- on Joycelyn Elders. This is not deci- There was parental consent in this eral has been used as an advocacy post sion day on Bill Clinton. We get to do area. Henry Foster did the right thing for a certain agenda, an agenda that that in November 1996. as a clinician, and he did the right many of us feel is out of step with This is decision day on Henry Foster. thing in involving parents. America’s agenda, and the agenda of at We should be talking about Henry Fos- So that is where we are on these least a very substantial majority of our ter and is he or is he not qualified to be issues. Now, the question becomes with people. the Surgeon General of the United Henry Foster, when is good good This use of this position for this pur- States of America. I believe he is. enough? This man has devoted his life pose makes the work of the Surgeon Now, when one wants to ask: Where to public service and the practice of General literally impossible because are those people who will unite us on medicine. To be Surgeon General of the the role of that office traditionally has broad issues of public health? Bill Clin- United States, to serve your country, been—and I think in most of our defini- ton has done it. He gave us Dr. Phil when is good good enough? Thirty- tions should be—the role of building Lee, a distinguished physician, who is eight years in the practice of medicine. consensus around important public our Assistant Secretary of Health, who When is good good enough to be Sur- health issues. Instead, it is hard to is coordinating health policy in a time geon General? When you serve in the argue any other way but that the ad- during shrinking budgets and higher U.S. military as a captain, as a physi- ministration has turned public health need. He has given us Dr. Varmus to cian, when you have done that job for into an ethical battleground by head the National Institutes of Health your country, when is good good enphasizing not issues that unite us when George Bush delayed the appoint- enough to be Surgeon General? When but issues that divide us. And more ment of the head of NIH because of a you practice medicine in a town like than that, they have ridiculed anyone litmus test on fetal tissue. But Dr. Nashville, and you are chosen to be who dares to disagree, including the Varmus is attracting the kind of young head of your own bioethics committee, Catholic Church, the pro-life move- talent and retaining the seasoned tal- you are asked to be the dean of a med- ment, and millions of parents who do ent for NIH to continue to be the flag- ical school, is that not good enough not believe that condoms are a uni- ship of research of the life science credentials? What more do we want? versal substitute for moral conviction. issues in America. Competency, well respected by your This administration by this attitude Bill Clinton is meeting his responsi- peers, 38 years of devotion, volunteer has undermined the public health dis- bility. Today, it is our responsibility to work in the community, starting a pro- cussion in America, and it has squan- pick a Surgeon General. And we are gram called ‘‘I Have a Future,’’ going dered the potential that exists for the not voting on Dr. Elders. We did that. into the public housing projects to say Surgeon General and the Office of Sur- We are voting on Henry Foster. to kids that you just say no. geon General. Henry Foster is a man unique unto Schoolmarmist admonitions with Now the President, it appears, will himself, bringing his own credentials these Victorian values only get good have again a choice to make with an- and expertise. He is not Joycelyn El- headlines. They do not get good re- other nominee—whether that nominee ders in wingtips. sults. You have to go to those kids and will bind our Nation or rend it, wheth- Now, let us get it straight. I regret reach out to them. And the way you er it will unite the Senate or divide us. that abortion has become the focal get them to say no is when they say I have some questions for the adminis- point of this debate rather than the yes to the possibilities of a life where tration, questions that I think deserve broad policy issues of public health. We they can define themselves as full men serious consideration and deserve an should be focusing on who can focus on and women, not only in terms of their answer. Mr. President, when will you prevention, primary care, and personal sexual prowess. finally nominate someone who can responsibility in a public health agen- That is what he did. And that is why unite us as Americans around impor- da. That is what it is all about, and Dr. George Bush wanted him to be a point tant issues of public health instead of Foster has done that. of light, because these kinds of pro- polarizing us? When, Mr. President, We knew that, yes, there would be grams are a point of light. will you choose a candidate for this of- those who would focus on the big A The PRESIDING OFFICER. The Sen- fice who is not an advocate of the most word, abortion, so in a public hearing ator’s time has expired. divisive issues of our times but is an at the Labor Committee, chaired in a Ms. MIKULSKI. Could I have 1 addi- advocate for those issues that can very outstanding way by Senator tional moment? bring us together as a people? When, KASSEBAUM, I asked Henry Foster Let me just conclude by saying this. Mr. President, will you allow us to re- tough questions because I felt the pub- In a room in a meeting with Dr. Foster, turn our focus from moral controver- lic had a right to know. I said to Dr. I said to him, ‘‘What do you want to do sies to issues of public health? We are Foster, ‘‘Did you ever perform an ille- as Surgeon General?’’ He said, ‘‘I want not asking you to send us someone that gal abortion?’’ He said, ‘‘Absolutely to help all Americans live better and I

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00020 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8861 want to help poor kids do better and would also remind my colleagues that tions. Only two did not make it—Abe make sure they have a future.’’ if this body is going to become em- Fortas and Sam Brown. Dr. Foster has devoted his life to giv- broiled in this kind of an ideological I might also point out, Mr. President, ing other people a chance. Let us give battle, we are not going to be able to that Democrats have never blocked a him a chance and not hide behind par- take up the issues which the American nomination of a Republican President liamentary procedure. Let us make people elected us for. They did not by filibuster and defeat of a cloture this decision day for Henry Foster. elect us in 1994 on the abortion issue. motion. Never. Not once. Now, until re- I yield the floor. They elected us to have smaller Gov- cently we never had cloture votes on The PRESIDING OFFICER. Who ernment, less spending, reduced taxes, nominations. Up until 1949 you could yields time? and strong national defense. Those are not filibuster a nomination. Then the Mrs. KASSEBAUM addressed the our core values and, if I may say, our rules were changed and you could. And Chair. core Republican values. And it is a even then comity prevailed on both The PRESIDING OFFICER. The Sen- very dangerous precedent for this body sides of the aisle. During the Eisen- ator from Kansas. to have an ideological debate. hower administration we let Ike have Mrs. KASSEBAUM. I believe the Sen- If we are going to subject people who whatever nominees he wanted. It was ator from New Hampshire has been want to be public servants to 60 votes, not until 1968 that the first filibuster waiting. Am I correct on that? not the democratic majority, we are was held. That was on Abe Fortas. And Mr. SMITH. I have been here. Yes. going to discourage people like Henry cloture was not invoked. Mrs. KASSEBAUM. I would like to Foster and other qualified individuals The second, I said, was in 1994 on yield to the Senator from New Hamp- from coming to this town, this Govern- Sam Brown. But during all those years shire 15 minutes. ment, to serve. If there had been a de- when there were Republican Presi- The PRESIDING OFFICER. The Sen- mand for 60 votes for Justice Clarence dents, a Democratic Senate never de- ator from New Hampshire is recog- Thomas, he would not be sitting on the feated, not once, by a filibuster a nomi- nized. Supreme Court of the United States nation of a Republican President. Mr. SMITH. The Senator from Penn- today. And I know there have been Those are the facts. And they cannot sylvania has said he is only asking for nominees who have had a past fili- be disputed, Mr. President. Those are 3 minutes. I will be happy to yield and buster test. But the appropriate stand- the facts. then take my time after the Senator ard, the nonideological standard is to So I would say to my friends on the from Pennsylvania. say, ‘‘Is he qualified when he performs other side of the aisle, do not hide. Do The PRESIDING OFFICER. The Sen- a medical procedure which is constitu- not hide behind this procedure. Have ator from Pennsylvania is recognized. tional?’’ I yield the floor. the guts to come out and vote up or Mr. SPECTER. I thank the Senator Mr. KENNEDY. We reserve whatever down on whether Dr. Foster ought to from New Hampshire. time we have. I believe the Senator be the Surgeon General of the United The PRESIDING OFFICER. Is the from New Hampshire has been typi- States. And for once and for all, put be- Senator from Kansas or the Senator cally courteous to permit the Senator hind us this filibuster procedure on from Massachusetts yielding time to from Iowa to proceed for 31⁄2 minutes. nominations. I believe, Mr. President, the Senator from Pennsylvania? Mr. HARKIN addressed the Chair. we are going down a very bad road, a Mr. SPECTER. I ask the Senator The PRESIDING OFFICER. The Sen- very bad road, because if we continue from Massachusetts to yield 3 minutes. ator from Iowa is recognized for 31⁄2 this, the worm will turn. There will be Mr. KENNEDY. Three minutes. minutes. a Republican President and there will The PRESIDING OFFICER. The Sen- Mr. HARKIN. Thank you, Mr. Presi- be a Democratic Senate. And then the ator from Pennsylvania is recognized. dent. shoe will be on the other foot. And I Mr. SPECTER. Mr. President, it is Mr. President, I want to focus my say that is the wrong road for us to go my hope that at least three additional comments a little on the comments down. Let us invoke cloture and have Senators will vote in favor of closing made yesterday by the majority leader, an up or down vote. Let us not hide be- debate so that Dr. Foster can receive a Senator DOLE. I have been for some hind procedure. vote on the merits. time involved in the whole issue of fili- Mrs. KASSEBAUM addressed the I believe Dr. Foster is entitled to his busters. Senators may remember I Chair. day in court. He is entitled to his vote tried earlier this year to do something The PRESIDING OFFICER. The Sen- in the Senate. The sole issue which is about filibusters. The filibuster is ator from Kansas. holding up this confirmation is the being used here today. So, I looked it Mrs. KASSEBAUM. Mr. President, I issue of abortion. Cutting to the bone, up in the RECORD, and here is what yield 15 minutes to the Senator from that is it, pure and simple. And I think Senator DOLE said yesterday. He said, New Hampshire. it is simply wrong to deny Dr. Foster ‘‘Yes, supporters must obtain 60 votes.’’ The PRESIDING OFFICER. The Sen- confirmation because he has performed That is the way it works. I had the ator from New Hampshire is recog- an operation which is lawful under the Congressional Research Service do a nized. Constitution of the United States. And little work in that area. I have heard Mr. SMITH. I thank the Senator you see the pattern emerging. In yes- people say, ‘‘Oh, this never happened from Kansas for yielding me this time. terday’s Washington Times, it is Ralph before.’’ It has happened a lot.’’ He Mr. President, I rise in very strong op- Reed, Jr., who is calling the tune for goes on to say, ‘‘Since 1968 24 nomina- position to Dr. Foster being confirmed those who are opposing Dr. Foster, and tions have been subjected to cloture as President Clinton’s nomination to in today’s Washington Post it is Gary votes.’’ As Paul Harvey might say, be Surgeon General of the United Bauer who is handing out plaudits to ‘‘Now for the rest of the story,’’ be- States. I also at this point would like those in the Senate who are opposing cause that is not quite correct. The to thank Senator KASSEBAUM for the Dr. Foster. I believe it is inappropriate fact is, Mr. President, that nomina- fine job that she did with the hearings for this body to deny this man a vote tions have been defeated by filibuster that were conducted very fairly, and I on the merits and to deny confirmation after failure to invoke cloture in only thank Senator COATS for his leadership for performing a medical procedure, two cases: the first was Abe Fortas to in bringing information to the fore- abortions, lawful under the U.S. Con- be the Chief Justice of the Supreme front regarding this nomination. stitution. Court in 1968; the other was Sam Brown As Senator COATS has ably pointed I would remind my colleagues, Mr. to be an Ambassador in 1994. Both out during this debate, there are many President, that there is nothing in the nominations were made by Democratic troubling issues surrounding the con- Contract With America, which was the Presidents and defeated by Republican firmation of Dr. Foster. And I always basis of our Republican victory last filibusters. feel somewhat sad to have to be in- November, nothing in the Contract Senator DOLE was half right. He said volved in these debates when individ- With America, on abortion. And that is that there had been 24 filibusters. What uals like Dr. Foster are brought into not a mandate from the American peo- he did not say was that 22 of them went the arena, so to speak, because appro- ple defining the Republican stand. I through, and they got their nomina- priate research was not done on the

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00021 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8862 CONGRESSIONAL RECORD — SENATE June 22, 1995 nomination prior to placing that per- throughout pregnancy at any time. Let whether this is a child now in the son in the arena, which has happened us explore for just a couple of moments hands of the abortionist. It could be a in this case, I believe. what that means. doctor, Mr. President. If it were a doc- The issues that I am concerned about Last Friday Senator GRAMM and I in- tor who wanted to save that life, the include the credibility of Dr. Foster’s troduced S. 939, the partial-birth abor- life would be saved; the baby would be responses to questions about his tion ban of 1995. Our bill is companion born and the life would be saved. The knowledge of the Tuskegee syphilis legislation to a bill called H.R. 1833 re- only difference is it is an abortionist. study, the infamous experiment with ported favorably by the House Judici- In illustration No. 4, the abortionist hundreds of black men with syphilis ary Subcommittee yesterday. takes a pair of scissors and inserts the where they were deliberately left un- Mr. President, partial-birth abortions scissors into the back of the skull and treated in the name of medical re- are first performed at 19 to 20 weeks of then opens the scissors up to make a search. gestation, very often much later. gap in the back of the skull in order to In addition, several members of the To give my colleagues a clear under- insert a catheter to literally suck the Labor Committee have indicated they standing of how well developed an un- brains from the back of that child’s remain unconvinced that Dr. Foster born child is that late in pregnancy, I head. was, as he claimed, ‘‘in the main- have with me an anatomically correct That is what happens in the so-called stream’’ of medical practice when he model of a child—not a fetus, it is a partial-birth abortion. Anywhere from performed hysterectomies on mentally child. It is a little child. Its face is the 19th or 20th week up, this can hap- retarded women without securing inde- formed; its arms, toes, fingers, eyes— pen. It is unspeakably brutal, and yet pendent-party written consent and this is a child. some say the child does not feel this. even years after the State and Federal Dr. Foster said he never performed a Take a pair of scissors and slowly in- courts, as well as the U.S. Department late-term abortion, and I have no rea- sert them into the skin in the back of of Health, Education and Welfare had son to doubt that. I do not know. That your neck a little way and see how proscribed those and similar practices. is the statement that he made, and I that feels to you. One of the principal issues sur- am not accusing him of performing According to neurologist Paul rounding this nomination is the credi- late-term abortions, but he is not Renalli, premature babies born at this bility of Dr. Foster with respect to the blocking them either. So if you are not stage may be more sensitive to painful number of abortions that he has per- a murderer but you do not stop a mur- stimulation than others. I would think formed. Various times since he was der, I think you can draw the conclu- my colleagues would be repulsed by chosen by the President to be Surgeon sion. this and most Americans would be ap- General, Dr. Foster has claimed 1, 12, I brought some photographs to show palled, sickened, and angered that such 39, and 55 abortions. And there is even that premature babies of this very age a brutal act could be carried out a transcript of a public proceeding in are the victims of these partial-birth against a defenseless child. This is a which he appears to have claimed that abortions. In this photograph, this is child, I say to my colleagues. This is a he performed 700. The interesting thing Faith Materowski. She was born at 23 child; a defenseless child. about this, whether it is 1 or whether it weeks of gestation, just 3 weeks older I ask you, would you put your dog to is 700, one of those individuals, you than this little model would be, weigh- sleep by inserting scissors in the back never know, could very well, had they ing 1 pound and 3 ounces, Mr. Presi- of the neck and using a catheter to had the opportunity to live a full life, dent. This photograph was taken about suck out its brains? Yet, under the Su- been the nominee for Surgeon General a month after she was born, and I am preme Court Roe versus Wade decision, of the United States of America at happy to report that Faith survived. the brutal partial-birth abortion proce- some point in the future. She survived because her mother want- dure that I just described is legal in all All of these doubts about Dr. Foster ed her to live not die. 50 States—all 50 States. And, in fact, were summed up just right I thought Let me explain, with the aid of a se- the National Abortion Federation has by the New York Times editorial enti- ries of illustrations, exactly what is written: tled ‘‘Ending the Foster Nomination,’’ done to children about the same age in calling Dr. Foster a flawed nominee a partial-birth abortion. As I do, keep Don’t apologize, this is a legal abortion procedure. whose nomination involved sacrificing in mind that Dr. Martin Haskell, who the principle that candidates for high by his own admission has performed 700 Exactly my point and exactly the office must fully disclose relevant facts of these partial-birth abortions as of connection with Dr. Foster. And before and attitudes. The Times concluded 1993—Lord knows how many after my colleagues stand up and accuse me that Dr. Foster’s nomination deserves that—has told the American Medical of saying it, I am not accusing Dr. Fos- to be rejected. News, the official newspaper of the ter of doing this. What I am accusing Mr. President, even though there are AMA, that the illustrations and de- Dr. Foster of is ignoring the fact that many reasons to oppose the nomina- scriptions that I am about to present it is taking place and accepting the tion other than his performance of and are accurate, technically accurate. In fact that by any means, any means advocacy of abortions, let me focus my the first illustration, the abor- legal—and this is legal—by any means remarks this afternoon on just how ex- tionist—— legal, a life can be taken. So lest my treme—I emphasize the word ‘‘ex- Mrs. MURRAY. Will the Senator views get misrepresented on the floor treme’’—Dr. Foster’s abortion policy yield? of this Senate, I am making it very views are. Polls by Gallup and others Mr. SMITH. I will not yield. I will be clear. have consistently found that over happy to yield when I finish and engage So when Dr. Foster says he wants to three-fourths of the American people in questions and answers on your time. prevent the erection of barriers to late- believe that abortion should be prohib- In the first illustration, the abor- abortion access, he is tolerating and ited except to save the life of the moth- tionist, guided by ultrasound, grabs the condoning this. That is a late abortion, er after the first 12 weeks of pregnancy. baby’s leg with forceps. and he is tolerating it and allowing it Yet in the 1984 speech to Planned Par- As you see in illustration 2, the to happen. Based on Dr. Foster’s own enthood of Eastern Tennessee, Dr. Fos- baby’s leg is then pulled from the birth statement, one can only conclude that ter expressed his strong opposition to canal. So you see the forceps now have he would oppose, and oppose strongly, restrictions on abortion after 12 weeks, grabbed the legs, pulling the baby from the very bill that I have introduced. I about 150,000 of which are performed the birth canal. have not heard otherwise. annually. Dr. Foster said—and I In the third picture, in this so-called The grotesque and brutal partial- quote—‘‘We in the movement must partial-birth abortion process, the birth abortion procedure that I just de- work to prevent the erection of such abortionist delivers the entire baby, scribed and illustrated on the floor of barriers to late abortion access.’’ That with the exception of the head—the en- the Senate today can and should be is after 12 weeks. In other words, Mr. tire baby. So I ask my colleagues to outlawed. And if the Surgeon General President, Dr. Foster’s view is that think about this, as to whether or not of the United States, whoever he or she abortion should be legal, on demand, this is some impersonal thing or may be, spoke out against it, it would

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00022 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8863 be outlawed, and that is the kind of The PRESIDING OFFICER. Who this Senator and those whom he rep- Surgeon General that I want. yields time? The Senator from Wash- resents—Senator GRAMM and the oth- The bill that Senator GRAMM and I ington. ers. have introduced would outlaw it, and Mrs. MURRAY. I yield myself 1 This is an outrage. What we are wit- our bill amends title 18 of the United minute, and then I will yield to my col- nessing here is the truth about this States Code so that: league. issue. This has nothing to do with Dr. Whoever, in or affecting interstate or for- Mr. President, I am appalled and Foster. This has to do with politics, eign commerce, knowingly performs a par- shocked that there would be this kind raw politics. I appeal to the people tial-birth abortion and thereby kills a of display on the floor of the U.S. Sen- across this country, if you think you human fetus should be fined . . . ate. Certainly, Dr. Foster has made it are being dealt with fairly, just look at Not the woman, the doctor—called a very clear, as Senator MIKULSKI ex- what took place: Decrying a law that is doctor—the abortionist. plained to all of us, that he does not on the books and a physician for doing So, Mr. President, when Dr. Foster support third trimester abortions, that his duty. We ought to get a couple of speaks of these barriers, he is talking, he does not support abortions for sex friends here with enough courage to in effect, about bills like mine, like the selection, nor does he support illegal stand up and say we are not going to bill that would ban partial-birth abor- abortions. take it anymore and we are going to tions. He is providing, when he says a I think it is really outrageous that vote on behalf of the women in this woman’s right to choose, a woman’s guilt by association occurs on the floor country. right to choose partial-birth abortions. of the Senate. I think the American Mrs. MURRAY. Mr. President, I yield This is what it means. Let us put some people deserve a debate with dignity. I my colleague from Illinois 4 minutes. meaning to the words, because that is think Dr. Foster deserves a debate with Ms. MOSELEY-BRAUN. Mr. Presi- what it means. dignity, and I hope that all of us can dent, everybody is talking about what Out of all of the controversy sur- remember that. the issue is here. I think there are a rounding Joycelyn Elders, all of the Again, I remind you, Dr. Foster’s number of American people who think unbelievable statements and the con- nomination is in front of us because he that the only real issue is fairness. It is troversy that we endured during her is a man with a tremendous history of whether or not a minority of this body all-too-long and lengthy tenure, I can- service—community service—deliv- will stop this nomination, using the not understand why the President ering more than 10,000 babies, and I time-honored trick of the filibuster in would choose as his successor someone think that is what we should be debat- order to enforce an extreme agenda on whose past record and policy views on ing today. the President of the United States the pressing social questions of our I yield my colleague from New Jersey through his nominee. It is just that time are so out of tune, so far out of 2 minutes. simple. sync, with the rest of the American The PRESIDING OFFICER. The Sen- The extreme agenda, I think, is pret- people. ator from New Jersey is recognized. ty evident. I have never seen anything The Surgeon General should be some- Mr. LAUTENBERG. Mr. President, I as horrific, as horrendous, as awful, as one that the American people have thank the distinguished Senator and ugly and graphic as the posters and the confidence in, someone who would put urge her to continue her quest to see doll figure I saw on the floor a few min- the intense controversy of the Elders that fairness is finally delivered on this utes ago. It is outrageous to bring years behind us. Yet, President Clinton floor. I am astounded by what we have something like that on the floor of the apparently, without even reviewing just seen. I assume that the pictures U.S. Senate to make whatever point. carefully Dr. Foster’s record, which that we saw reflect a woman’s decision, Whether you are for or against choice, places him, unfortunately, in this de- that she chose to have that abortion. to bring that kind of graphic depiction bate, did not do a good job of inves- You can make it look as ugly as you of ugliness on this floor, I think, only tigating his past and even recklessly want. But the fact is that it is a med- serves the purpose of inflaming people went ahead and made this nomination. ical procedure, and this woman chose Mr. President, there are over 650,000 around an issue that really inflames to have it. This same Senator—a dis- physicians in the United States of and divides the American people, and tinguished Senator and a friend of America—black, white, male, female, that does go to the heart of the opposi- mine—from New Hampshire voted the Asian, Hispanic, Indian. Surely, surely tion’s extreme agenda here. other day and led the fight to take hel- there is one out of 650,000 that could be People who say the Supreme Court mets off motorcycle riders. They could brought to the floor of the U.S. Senate was wrong in terms of Roe versus Wade be laying all over the road, and they that would not have this kind of con- are finding 9,000 ways to overturn it in wind up in a hospital as paraplegics troversy and this kind of debate fol- subtle ways. People who do not believe and quadriplegics, and we pay for it. lowing the Elders reign. that a woman has a right to choose—by That is OK. But to permit a woman My friend and colleague, Senator MI- the way, everybody is entitled to their who, under the law, has a right to KULSKI, a few moments ago said on the own view on that issue. American peo- floor that she could not understand make a choice, no, no. ple are and will be divided. That is a why this whole thing was about abor- Here we are watching a small minor- profoundly divisive issue in our body tion, why the debate was so focused on ity deciding how the behavior of the politic. But the question is: Why would abortion. In the Washington Post this majority ought to perform. This is an that profoundly divisive issue be ap- morning—I might answer the Senator outrage. Yes, this is about abortion be- plied to Dr. Foster’s nomination? from Maryland by saying this—here is cause the other side made it about Here is a man who is not an abor- what President Clinton said: abortion, instead of taking this man tionist. He is a women’s doctor. He has with superb credentials, who did what delivered tens of thousands of babies, Make no mistake about it, this was not a vote about the right of a President to choose he had to under his oath as a physician and he has made the point that he sup- a Surgeon General. This was really a vote and under his compassion as a human ports the laws in terms of a woman’s about every American woman’s right to being. He obeyed the law and delivered right to choose, but that is not his choose. excellent service. Over 10,000 babies de- practice and never has been. Dr. Foster That is why it is about abortion, be- livered. The Senator from New Hamp- has played by the rules, has promoted cause the President is making it about shire wants to pick out a procedure women’s health over the years, and he abortion, because he wants this kind of that was required and make that the has a stellar background. thing to occur. subject of this discussion. I join my colleague from New Jersey Mr. President, I am confident that No, it is a narrow minority who says in saying that this really is a nomina- when the votes are counted, it is going to the women across this country that tion now that is wrapped up in games to be the same result as yesterday, and you have no right to choose, even and politics. Indeed, I will go as far as Dr. Foster will not be the next Surgeon though the law says so. In his very to say that Dr. Foster is a political General. statement, he said that. He said if we hostage to extremism. That is the issue Several Senators addressed the had a Surgeon General who spoke here—whether or not we are going to Chair. against it, then it would be OK with allow that extremism to derail this

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That the debate, as it should be, I am not majority. What it is not is enough to nomination went to a cloture vote. In going to get into again the problem of overcome the time-honored trick of the that case, cloture was invoked. But the Dr. Foster’s credibility. Maybe it was filibuster. It is continuing that fili- point was somebody on the Democratic his fault, maybe it was the White buster that is at the heart of the vote side of the aisle felt so strongly about House’s fault, maybe it is failing mem- that will take place this afternoon. that nomination to one of the three ory, maybe it is simply a lack of under- I urge my colleagues to strike a blow most important offices in the land—the standing of the political process and for fairness and say to the American head of an entire branch of American how it works. But the bottom line is, people that we are prepared to allow a Government—that they exercised their on virtually every issue that has been majority to rule in the U.S. Senate, right. Many people did not like it, but raised, there has been a problem of like it does on other matters—the that is how our system works. In that credibility. budget, the appropriations, and all the case, the process worked. We invoked Finally, on the whole issue of abor- other things we do. Let us say we are cloture. Judge Rehnquist was con- tion. I did not see the presentation firmed. And in this case it is going to going to allow the majority vote to that my dear colleague, Senator SMITH, prevail regarding this nomination for work as well. We are not going to in- made about partial-birth abortions. the President’s administration. voke cloture, and Dr. Foster is not Maybe some people were offended by Dr. Foster was nominated by the going to be confirmed. the presentation. But I am offended Now, let me address the issue of Dr. President over 136 days ago. We have that this is happening in America. I Foster’s credentials, and let me make been sitting here in the U.S. Senate think people do have different views on it very clear that there is absolutely with all of the public issues we have be- abortion, and I respect the opinion of nothing in this debate that has any- fore us—violence and crime, the issues people who disagree with me. thing to do with anything other than in the communities, AIDS, you can go But I think it is an extreme view down the list—and they have not been his qualifications to hold this office. There are two principal qualifications when you take the view which Dr. Fos- attended to. Why? Because of the poli- ter takes, in opposition to parental tics of abortion and politics of the that our colleagues go on and on about with Dr. Foster. No. 1, he was the de- consent in cases involving abortion and Presidential campaign. I say let us free minors. Polls show that is an extreme Dr. Foster and have his nomination partment head at a medical school in America. That is true. It is also true view; 80 percent of the people in Amer- vote take place today. ica think that parents ought to be no- Mrs. KASSEBAUM. Mr. President, I that the department he headed lost its tified when abortion is going to be per- yield 10 minutes to the Senator from accreditation while he was head of that formed on a minor. I think it is an ex- Texas. department. Was it his fault? Were Mr. GRAMM. Mr. President, I thank there extenuating circumstances? Were treme view when a child is in the proc- the distinguished chairman for yield- there other factors involved? Certainly ess of being born, and its life is extin- ing. We are coming down to the final there were. There always are. But the guished. I think it is an extreme view moments of the debate. We will have bottom line is that he served as the de- that when a lady is being taken down our final vote here in a few minutes. partment head of a department that the hallway toward the delivery room, I would like simply to review the key lost its accreditation. that it is perfectly acceptable in Amer- issues. First of all, let me address the The second argument given is that he ica to make a left turn to perform an issue of the cloture vote. To listen to established a program with a wonderful abortion. The American people, by a our colleagues, it would sound as if we name, ‘‘I Have a Future.’’ That pro- margin of over 70 percent, think that is never vote on cloture in the U.S. Sen- gram’s stated goal was to reduce teen an extreme view. ate. Yet, hardly a week goes by that we pregnancy. Our colleagues make a big Why filibuster? Why force a 60-per- do not have a cloture vote. It is part of point that this program was given a cent vote? The answer to that is very, the fabric of American democracy. It Point of Light Award. It was given that very simple. A lot of us felt very was part of the process making the award because of its objective, a noble strongly about Joycelyn Elders. When I Senate the deliberative body of Con- and great objective, and one that we read the things that she had said about gress that George Washington de- need to promote all over America. But the Roman Catholic Church, when I scribed to Thomas Jefferson when Jef- the bottom line is there were two ob- read the her comments which made her ferson came back from France. Thomas jective assessments of that program, sound more potentially successful as a Jefferson had been the American Min- and both of them were made after it radio talk show host than a Surgeon ister to France while the Constitu- was given this award. Both evaluations General of the United States, when I tional Convention was occurring. concluded exactly the same thing: This looked at how extreme her views were, Our colleagues talk about cloture program did not in any statistically I did not think she ought to have that votes and filibuster. Yet, since 1968, 24 significant way reduce teen pregnancy job. times we have had cloture votes on among those who participated in the But this was the President’s first nominations, and nearly every one of program. nomination for this position, and there them occurring when we had Demo- I said it yesterday. I will say it again was no way of knowing in advance ex- cratically controlled Congresses. today. And every Member of the Senate actly what she would be like. I voted The way our system works is, if there knows it. If we had set up a distin- no; I opposed her nomination; I fought is a determined minority, that minor- guished panel of physicians to go out it; I wanted to defeat it, but I did not ity has the right to speak in the U.S. and look at qualifications of physicians use the power that the minority has in Senate. There is, today, a determined in America and to come up with a list the Senate, and that is the power to de- minority. And to accommodate the of 1,000 physicians who were eminently bate. Having made that mistake on Senate, an agreement was worked out qualified to hold the position as Amer- Joycelyn Elders, I and others were de- so that the proponents of this nomina- ica’s first physician, Surgeon General, termined that we were not going to tion had not one vote, but two. That Dr. Foster’s name would not have been make that mistake again. was agreed to by unanimous consent. on that list. I do not think anybody I believe Dr. Foster is not qualified Any Member of the Senate could have here believes that Dr. Foster is quali- for this position. I believe that there objected. No one objected. So this is a fied to be Surgeon General when con- are real credibility problems con- process that we chose and that every sidering his two major credentials: One cerning the facts that have been pre- Member agreed to. This is a process being the head of a department that sented to the country and the Con- that we all understand, and it is a proc- lost its accreditation; the other being gress. And

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00024 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8865 finally, I believe that his views are rad- you know, the Surgeon General is the Dr. Foster is a skilled communicator ical and outside the mainstream of national spokesperson to promote good who emphasizes consensus-building American thinking. health activities and to alert the na- over confrontation. Yesterday, I quoted our President tion regarding things that are harmful Dr. Foster has bipartisan support. four times from his campaign, talking or potentially harmful. In May, Dr. Dr. Foster is one of the nation’s lead- about the values of our people, talking Foster convinced the Labor and Human ing experts on, and advocates for, ma- about family values, talking about tra- Resources Committee that he was the ternal and child health, and has devel- ditional values. I do not believe that right man for the job. oped and directed teen pregnancy and Dr. Foster’s views match the Presi- Today, I am here to explain to my drug-abuse prevention programs that dent’s 1992 campaign rhetoric. colleagues why I know Dr. Foster is bolster self-esteem and encourage per- I think one thing we have a right to the right person for that job. To reit- sonal responsibility. expect Presidents to do once they are erate, soon after I set out to learn Mr. President, let us look at the Dr. elected is to put forth nominees whose more about our nominee for Surgeon Foster from Tennessee, the man who views are consistent with their cam- General, I realized that there are actu- has done so much for people who others paign rhetoric. We have a right to ex- ally two Dr. Henry Fosters. One is the have ignored. Let us follow the Labor pect that those campaign views will be Dr. Foster created by inside-the-belt- and Human Resource Committee’s lead reflected in their nominees. Do not get way groups using diversionary tactics and confirm Dr. Foster’s nomination. me wrong. When people voted for Bill to derail the nomination of a respected Mr. KENNEDY. Mr. President, I yield Clinton, they voted for more spending, physician. The other is the Dr. Foster 2 minutes to the Senator from Cali- more taxes, more regulation, more who grew up in Pine Bluff, AR, at- fornia. Government, and for the appointment tended University of Arkansas as the The PRESIDING OFFICER. The Sen- of liberals. If they did not know it, only African-American in his class, ator from California is recognized for 2 they should have known it. That is served his country as a medical officer minutes. what democracy is about. in the Air Force, and set up a practice Mrs. BOXER. Mr. President, I was But they did not vote for the radicals in Tennessee where he trained hun- not going to take the floor back, but I that this President has appointed. This dreds of the nation’s finest medical have to respond to some of the things is an appointment where the views of practitioners. done and said on this floor. I feel very this candidate are outside the main- Mr. President, I am here to tell you strongly that it is my responsibility as stream of American thinking, and I be- that I am convinced that this second a U.S. Senator from the largest State lieve we are making the right decision Dr. Foster is the real Dr. Foster. For in the Union to the say a couple of in saying no. those who doubt this and want to see things here. The PRESIDING OFFICER. The time something tangible, I urge you to visit No. 1, to my colleague from Texas, of the Senator has expired. Nashville to see his accomplishments, people in America want a fair Presi- Mr. KENNEDY. Mr. President, I yield such as the doctors he trained, the day dent. This is not fair. To deny this man 2 minutes to the Senator from Arkan- care centers he created, and the indi- a vote is not fair—period. And then to sas. viduals, young and old, he has deliv- keep bringing up Joycelyn Elders. I do The PRESIDING OFFICER. The Sen- ered into this world over his many not say about my colleague that he is ator from Arkansas is recognized. years of practice. like Richard Nixon or he is like Her- Mr. PRYOR. Mr. President, I thank I would be remiss if I did not mention bert Hoover. If I agree with him, I the Chair and I thank the distinguished one of Dr. Foster’s greatest accom- agree with him because it is him. I do manager. plishments, his I Have a Future Pro- not say he is like someone else. So let I do not know whether this debate is gram, a pioneering effort to reduce the us cut it out. If you want to fight a more about politics or more about number of teen pregnancies by improv- guy, fight it on fair terms. abortion or exactly what it is about. ing teens’ self-esteem. As you may My colleague from New Hampshire But I do not truly believe this debate is know, President George Bush named shows us pictures meant to divide this about Dr. Henry Foster. There are two Dr. Foster’s program as one of Ameri- country. He shows us pictures that Henry Fosters: The one that is depicted can’s Thousand Points of Light in 1991. should never be shown in front of the and portrayed by his opposition; and President Bush’s own Secretary of Senate pages who sit here. They should there is the real Henry Foster, a man HHS, Dr. Louis Sullivan, has lauded have been spared that. You want to of deep compassion and certainly a Dr. Foster’s nomination. outlaw abortion? You want to make it man of great ability. Let me also talk about what Dr. Fos- a crime? You want to put women in jail There have been a lot of articles ter’s peers say about him. The Amer- for having them? You want to put doc- written, a lot of stories on TV and ican Medical Association, the Amer- tors in jail? Bring the legislation to the radio and in newspapers, about who is ican College of Obstetricians and Gyne- floor. I will debate with you toe to winning in this Foster fight; whether it cologists, the National Medical Asso- toe—toe to toe. And I will win that is one of the candidates for the Repub- ciation, the American College of Pre- battle because, thank you very much, lican nomination for President or the ventive Medicine, are just some of the the women of America do not want other candidate. professional organizations that have Senators telling them how to handle Mr. President, I can say the loser in come out in support of Dr. Foster. their private lives. this fight, if we do not get 60 votes Mr. President, in addition to letters I am always amazed that the very today, will be the American people. It from his peers, I have also gotten let- people who say get Government out of will be the American people who are ters from other groups. One organiza- our lives want to put Government in going to be the great loser if we do not tion, the Council for Health and the bedrooms of the women and men of confirm this man. Human Service Ministries of the this country. He has stated time and time and time United Church of Christ wrote: You are out of the mainstream, and again his position on abortion is very, We are people of faith, committed to pro- you are stopping this nomination with very simple: That they should be safe, moting and maintaining optimum health of all people. We believe that the professional a minority vote here. It is wrong to do that they should be legal, and that credentials and experiences of Dr. Foster are that. they should be rare. That is his posi- impressive and provide sufficient evidence of I want to end my remarks with a tion on abortion. his ability to be the nation’s spokesperson positive picture—and I wish I had it—of I urge my colleagues to vote for this on matter of public health policies and prac- 10,000 little babies. splendid man as our next Surgeon Gen- tices. The PRESIDING OFFICER. The Sen- eral of the United States. In sum, Mr. President, let me make ator’s time has expired. Mr. President, it gives me great these points about Dr. Foster: Mrs. BOXER. May I have 30 addi- pleasure to support the nomination of He is a practicing physician, a schol- tional seconds? Henry W. Foster Jr., M.D. to one of the ar and academic administrator of na- Mrs. KASSEBAUM. Mr. President, I most important health care posts in tional stature, and a community lead- yield the additional time. our Government, Surgeon General. As er. Mrs. BOXER. I thank my colleague.

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00025 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8866 CONGRESSIONAL RECORD — SENATE June 22, 1995 If I had only known we were going to hysterectomy in patients with severe would have to be followed in cases of do this picture situation, I would have mental retardation.’’ the sterilization of institutionalized tried to get the picture of thousands of The operative words are ‘‘recently’’ mentally handicapped individuals. new babies—10,000 brought into the and ‘‘begun.’’ Judge Johnson required that any steri- world by this physician who went into ‘‘I have recently begun’’. lization would have to be approved by the Deep South, where no one would In a written inquiry, I asked Dr. Fos- the director of the institution, a review go, who turned around the infant mor- ter whether he had obtained the re- committee, and the court. tality rate. Did you ever see a picture corded opinion of a consultant prior to That was January 1974. of a baby who was born without pre- performing those hysterectomies. His That tells us a little bit about what natal care? I will tell you about it. I answer was—and I quote—‘‘I do not be- the climate was. happen to have one. I have two who lieve I obtained the recorded opinion of That was the moral and legal climate were born premature with prenatal a consultant.’’ in which Dr. Foster was justifying and care. But I want to tell you, it is not a But he adds: defending the practice of sterilizing pretty picture. They have tubes up I believed that***the manner in which mentally handicapped women. their noses. They suffer. They struggle. they were performed was fully consistent In the summer of that same year— They get high bilirubin. They turn yel- with prevailing rules governing informed months after the decision by Judge consent. low. And I will never forget, before my Frank Johnson, and a year after the baby was born prematurely, I remem- Dr. Foster is now—and was then—a Kennedy hearings—Dr. Foster made his bered then President Kennedy had a member of the American College of Ob- statement that he had ‘‘recently * * * baby that was born prematurely. It is stetricians and Gynecologists. But in begun to use hysterectomy in patients not a pretty sight. response to my question, Dr. Foster with severe mental retardation.’’ He turned it around. He showed those said he believes that the policies of the The physician—even more than the pictures. Dr. Foster never performed a American College of Obstetricians and average citizen—owes what our Dec- late-term abortion that was not to save Gynecologists simply are not binding. laration of Independence calls ‘‘a de- I have a problem with that. I think the life of the mother. That is on the cent respect to the opinions of man- that the position of the American Col- record. It is an unfair thing to do to kind.’’ That is way Dr. Foster’s re- lege of Obstetricians and Gyne- this man. sponses on the issue of sterilization cologists—their insistence on a re- I urge my colleagues, in light of gives cause to me for grave concern. corded opinion from a consultant— those pictures, to change your vote, They lead one to believe that Dr. Fos- should not be dismissed so cavalierly. show that you have a conscience, and ter can be tone deaf to some very im- Indeed, the whole trend of history was stand up for what is right and just. portant issues. moving toward protecting the rights of I yield the floor. It is one thing to have a controver- the mentally retarded, and away from Mrs. KASSEBAUM. Mr. President, I sial position on some issue. It is some- Dr. Foster’s position, at the time he yield 15 minutes to the Senator from thing else entirely when someone wrote that article. Ohio. chooses to remain totally indifferent to Mr. DEWINE addressed the Chair. Let me add a few more comments to the moral controversies of his time. The PRESIDING OFFICER. The Sen- put it into really historic context. If you are going to be Surgeon Gen- ator from Ohio is recognized for up to In 1972, a Federal district court—in eral, you have to be able to reach peo- 15 minutes. the case of Wyatt versus Stickney—had ple. You have to be sensitive to them. Mr. DEWINE. Mr. President, I rise placed Alabama’s institutions for the today to discuss the nomination of Dr. mentally ill and mentally retarded You have to care about what is going Henry Foster to be Surgeon General of under sweeping and detailed court or- in their hearts and their fundamental the United States. ders forbidding experimental research moral sensibilities. The role of the Surgeon General is to and certain kinds of treatment without Dr. Foster, as I have said on several be a public advocate—to persuade express and informed consent. different occasions, Mr. President, is a Americans to change their private be- In June 1973, two girls—ages 12 and good man. He is a caring person. He is havior and lead healthier lives. That is 14—were surgically sterilized in Mont- a loving human being. That is not the why the credibility of the Surgeon gomery, AL. issue. I believe, based upon the hear- General—his or her ability to commu- Without going into all the details, it ings, on my own conversations with nicate with the American people—is was an absolutely shocking set of facts. him, on his responses to my written vital to his success in that job. The When the sterilizations came to questions, that Dr. Foster simply can- Surgeon General has to be able to con- light, there was immediate public reac- not adequately perform this job; that nect with the general public in a truly tion—and a move toward nationwide he cannot use the job of the Surgeon personal way. reform. By the end of that same General of the United States to its full- To do this, the Surgeon General has month—June 1973—there was already a est capability; that he cannot use it as to be sensitive to people’s real con- lawsuit filed. In the following month— the bully pulpit that it should be used cerns. He cannot be someone who ap- July 1973—Senator EDWARD KENNEDY as; that he cannot maximize the great pears to shrug off important issues. held hearings on this controversy. The potential that office has. That is why Dr. Foster’s record on Secretary of HEW announced that new That is why I will again today vote the very important issue of steriliza- regulations on the use of Federal funds no on his nomination. tions is so troubling. for sterilizations would be published I yield the floor. What are the facts? The facts are within weeks. Mr. BRADLEY. Mr. President, I rise that in the early 1970’s, it was becom- And the regulations were published. reluctantly today to join the debate on ing increasingly clear, to a broad pub- They sought to protect the rights of all Dr. Henry Foster’s nomination as Sur- lic, to the medical profession, that persons—including the mentally re- geon General. I am reluctant because mentally retarded individuals needed tarded—with respect to federally fund- this has gone on too long; there should special protections—to prevent abuses ed sterilizations. not be such fierce opposition to a can- of the practice of sterilization. These regulations never took effect, didate so clearly qualified as Dr. Fos- In 1970, the American College of Ob- because in 1974 a Federal district court ter. However, the debate continues, and stetricians and Gynecologists issued found—in the case of Relf versus Wein- I feel it is important to point out his the following statement of policy: berger—that HEW had no authority to qualifications, and thereby separate If an operation to accomplish sterilization perform any nonconsensual—that is the germane issues from distractions, is recommended by the physician for medical what we are talking about, nonconsen- wordplay, and rhetoric. indications, the recorded opinion of a knowl- sual—sterilizations whatsoever. The facts of Dr. Foster’s career speak edgeable consultant should be obtained. On January 8, 1974—the very begin- for themselves. His work at Meharry Four years later, in 1974, Dr. Foster ning of 1974—Federal District Judge Medical College, his service for a long wrote an article in which he said—and Frank M. Johnson, Jr., issued an order list of organizations, including the I quote: ‘‘Recently, I have begun to use that specified the procedures that March of Dimes Foundation and the

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00026 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8867 American Cancer Society, are evidence Mr. FRIST. Mr. President, I ask it’s about a radical social agenda that is be- of his dedication and professionalism. unanimous consent that the following yond the bounds of mainstream America and His I Have a Future Program has statement of support for Dr. Henry traditional values. helped young men and women leave Foster’s nomination as Surgeon Gen- But, I don’t buy it. I guess as a newcomer housing projects and embark on field eral be printed in the CONGRESSIONAL to this body, I see it all very differently. I believe it is about Hank Foster, the man— trips, jobs, and college educations. The RECORD. The statement was presented the man who had delivered thousands of ba- program was aptly chosen as No. 404 of on May 26, 1995, at the Labor and the Thousand Points of Light. Who can bies into this world; the man who has com- Human Resources Committee vote on mitted his life not to making money, not to deny that teaching job skills, self-es- the nomination, and fully explains my promoting himself, but to serving others’ teem, communication skills, and coun- reasons for supporting this nominee. needs; the man who has cared for and nursed seling for at-risk youths is a light in There being no objection, the state- to health thousands of women; the man who these troubled times? Who can ques- ment was ordered to be printed in the in addition to the practice of medicine, has tion the values of a man who builds up RECORD, as follows: courageously and unselfishly stepped out a community, provides support for STATEMENT BY SENATOR BILL FRIST ON DR. into his community to give others a chance teenagers, and encourages family par- HENRY W. FOSTER, JR.—MAY 26, 1995 to step out of a world of poverty; and the man who 4 days ago, looked me in the eye ticipation in crucial life decisions? Last November, the people of Tennessee and described a fundamental commitment to Dr. Foster was there for the teen- elected me to make difficult decisions. And the principles of self-esteem, personal re- agers of Nashville when their decisions this has been a decision I’ve struggled with. sponsibility, and family values. were anything but simple. Violence, I know that thoughtful people honestly and pregnancy, drugs, and poverty are fundamentally differ on whether Hank Fos- As I stated at the Committee hearings, it problems that faced these youths, and ter should be Surgeon General. should not be our purpose to search for every which face us here today. We have a What makes my statement different from possible mistake or imperfection in Hank Foster’s life. The question before us is a chance to provide America with a Sur- those you have heard today? I know Hank Foster. I know him as a fellow Tennessean. I much more narrow one: does this man have geon General who has said that as the know him as a fellow physician and col- the commitment, the intelligence, the train- People’s Doctor, he would try to ‘‘re- league, who worked 4 miles from my office. ing, the honesty, and the integrity to be the place a culture of hopelessness with We are both members of the Nashville Acad- chief spokesman for Americans on matters one that gives young people a clear emy of Medicine, on whose Ethics Board he concerning public health? These are the pathway to healthy futures.’’ We can has served. And I know him as a fellow issues that I’ve considered, and I’m satisfied debate endlessly, lamenting the lack of Nashvillian, who has done what few physi- with what I’ve seen and heard. values in America and condemning vio- cians do—step out of the clinic into their Having known Hank Foster as a fellow lence, but when we prevent Dr. Foster’s community to address the really tough prob- Tennessean, having heard his testimony, lems in our society. having had the opportunity to talk to him nomination, we prevent him from con- Since February 2, the day the President tinuing and expanding his fight against extensively face-to-face, and having consid- announced his choice, I’ve listened carefully ered every aspect of his nomination very today’s problems. to every conceivable argument for and Dr. Foster has used his position as a carefully, I believe his nomination should be against the nominee. And over the past 3 referred out of Committee favorably and medical doctor and an educator to en- months, I’ve done my very best to remain brought before the U.S. Senate. And I also courage abstinence and to give teen- neutral—neither to blindly endorse Hank believe we should move forward with this agers hope for the future, so that they Foster because he is a fellow Nashvillian, nor process. We’ve got a lot of important busi- will take the responsible path. He has to condemn him because of allegations ness to attend to and the American people used his knowledge and his expertise to drawn from the attics of his past. I have want this Congress to press on. bring adolescent health services to waited until final testimony was submitted just last Friday so that I could thoughtfully, Madam Chairman, I think it is also impor- places where they are desperately need- and carefully, consider every aspect, every tant to mention, as I did in the Committee ed. He has performed a function beyond ramification, of his nomination. Several hearing, my belief that this confirmation the call of a traditional physician. In days ago, I again met with Hank Foster— process is not the place or the time to revisit his own words, his work ‘‘involves the one-on-one, face-to-face—to specifically and our national policy on abortion. Americans entire families and the total social ma- directly ask him about his plans as Surgeon of conscience will remain deeply divided over trix of the surrounding community.’’ General. this issue regardless of who is appointed Sur- I asked him the tough questions. Would he geon General. It’s important to remember In holding back this nomination, we that the office of Surgeon General does not hold back possible solutions to prob- be like his predecessor, Dr. Elders? Would he allow himself to be used as a political tool set social policy, nor convey with it the lems which face all of us, problems for an out-of-step President, who time and right to vote on any legislation—whether af- which will not be solved without work time again has promoted radical agendas? Or fecting abortion or otherwise. When this like Dr. Foster’s, problems which will would he represent mainstream America and body confirmed Dr. C. Everett Koop as Sur- not go away, and problems which will family values? geon General, a staunch opponent of abor- not wait for political delays. Dr. Foster told me, without hesitation, tion, that confirmation did not outlaw abor- We must listen to the facts in this that his number one goal was to reduce teen tion. If this body confirms Hank Foster, that case. By now, we are all familiar with pregnancy—a problem that we as a people confirmation won’t condone abortion. Dr. Foster’s outstanding achievements have done a miserable job addressing. It’s a No doubt, the unfortunate events that im- as a doctor, an educator, a scholar, and problem that literally threatens the very mediately followed Hank Foster’s nomina- fabric of America. His approach? He looked tion cast a shadow on his viability to be Sur- a community leader. We know that Dr. me straight in the eye, and said ‘‘number Foster has the support of the American geon General. Conflicting information raised one, build self-esteem; number two, promote questions about his credibility. I, too, was Medical Association, the American abstinence; and number three, instill family angered that the Clinton Administration had College of Obstetricians and Gyne- values.’’ badly mishandled yet another nomination by cologists, the American College of Phy- He told me that the other main issues on failing to adequately prepare Dr. Foster—a sicians, the Association of American his agenda would include screening for physician who had never had to face such ag- Medical Colleges, and hundreds of breast cancer and prostatic cancer, address- gressive public scrutiny. other respected institutions and indi- ing the AIDS epidemic, and teenage smok- ing. Dr. Foster stressed to me that he places Questions arose about Dr. Foster’s ability viduals. We cannot ignore the letters primary emphasis on family, that he under- as an administrator, his involvement in 4 which pour in from informed organiza- stands the importance of leading by building hysterectomies performed 25 years ago, and tions like these, all supporting Dr. Fos- a consensus, and that he understands that his knowledge of a study on black men con- ter, and all condemning the his agenda as Surgeon General must appeal ducted over a 40 year period in rural Ala- politicization of this issue. We should to, and be embraced by, mainstream Amer- bama. These issues concerned many, and look at Dr. Foster’s numerous achieve- ica. each and every one concerned me. But I be- Madam Chairman, many have told me that lieve that Hank Foster’s testimony, evidence ments, instead of creating a smoke- submitted to the Committee, and my own screen of accusations. We should con- this nomination is no longer about Hank Foster, the man. They say it’s about the one-on-one interviews with him, put to rest firm Dr. Foster, and allow him to con- inept way in which the Administration has those concerns. tinue his hard work for at-risk teen- handled his nomination. They say it’s about Dr. Foster, I feel, came through the hear- agers, for families, for each and every the tardy and roundabout manner in which ing process with his credibility and integrity one of us in this Chamber, and for this information has been provided to this Com- intact, and with is qualifications to be Sur- country. mittee and to the American people. They say geon General apparent.

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00027 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8868 CONGRESSIONAL RECORD — SENATE June 22, 1995 In the end, when people ask me why I sup- has performed, as well as the questions his background and proved to be an port Hank Foster’s nomination, I’ll tell them surrounding his knowledge of the honest, caring and dedicated indi- simply because he’s qualified to carry out Tuskegee syphilis study lessen his abil- vidual. the duties of Surgeon General. I am con- ity to bring Americans together on the After all that Dr. Foster and his fam- fident that he will perform his job well. Finally, Madame Chairman, I ask my col- multitude of health issues our Nation ily has endured in the past several leagues to consider this nomination, not faces. months, does he not deserve a vote? based on politics, but rather on qualifica- Mr. President, the role of Surgeon Dr. Foster has committed his life to tions and ability. In the past, the Democrats General requires the ability to bring helping others and promoting public have so often brought politics into the equa- people together, not to be divisive. The health. He is well respected by his pro- tion—we all remember the nominations of controversy surrounding Dr. Foster’s fessional peers and those whose lives he John Tower, Robert Bork and Clarence nomination has diminished his ability has touched through community serv- Thomas. I wasn’t here, but as a private cit- to play the unifier. ice. In short, this candidate is qualified izen, I recall the anger I felt and the dis- appointment in the process. Let us not make In addition, I would add that I have to serve as Surgeon General and de- the same mistakes. The American people are received numerous letters from Ida- serves a final decision. tired of politics as usual—that was the mes- hoans expressing concerns and opposi- The Labor Committee approved of sage of November 8. tion to the confirmation of Dr. Foster. Dr. Foster and passed his nomination. For that reason, I urge all of my colleagues Therefore, I have decided to vote It is now time for the full Senate to ex- to view this candidate away from the dis- ‘‘no’’ on the confirmation of Dr. Henry ercise its responsibility. I urge my col- tractions and the hype of political expedi- Foster for the office of Surgeon Gen- leagues to end this sad political spec- ency, and without regard to who nominated eral for the United States. tacle and vote on the nomination of Dr. him. Rather, look at his accomplishments, his qualifications, his statements, his goals, Mr. KOHL. Mr. President, some Henry Foster. and the testimonials of other who know him. today have presented Dr. Foster’s cre- Mr. HATFIELD. Mr. President, yes- And then—based on serious reflection— dentials and discussed his integrity. terday I voted against limiting debate make your decisions. Others simply do not support the can- on the nomination of Dr. Henry Foster I’ve done that, and I choose to support Dr. didate. We have heard the arguments. as Surgeon General of the United Henry Foster. We should be ready to vote—to go on States. It is my intention to do so Mr. CRAIG. Mr. President, the con- record, yes or no, whether we approve again today. cerns that have led me to oppose the of this nominee. I will vote against cloture today be- nomination of Dr. Henry W. Foster, Jr., Unfortunately, Mr. President, some cause I am disappointed by the han- to be Surgeon General of the United in this body do not want a vote on the dling of Dr. Foster’s nomination and States are not trivial. They are also nomination of Dr. Henry Foster. The because I do not believe debate should not intended as a criticism of the debate we are now engaged in is not be limited before it begins. This is a nominee personally. He is a fine indi- about the qualifications of the can- misuse of the cloture motion. Cloture vidual and deserves our respect. didate for the job of Surgeon General. should be a tool of last resort rather However, in deciding whether to sup- This is about a political game. than a tactic employed as soon as an port a nominee, character cannot be Machiavelli would enjoy how the Na- issue hits the Senate floor. the only consideration. We must also tion’s business is handled in Wash- In addition, I believe it is improper examine the nominee’s ability to serve ington, D.C. today. Bipartisanship is a to raise a single issue and use it as the the American people in the office to word easily tossed around, but seldom litmus test for the nomination of a which he or she was nominated. practiced. The bottom line is how to Surgeon General. The President did It is important to note that my deci- prevail in the next election, not how to that yesterday by stating that this sion to oppose the nomination of Dr. solve this Nation’s problems. vote was really a vote about abortion. Henry W. Foster was made after a Do we really think the best way to I am deeply disappointed that the de- great deal of thought and consider- find qualified candidates to serve the bate has come to this. ation. I do not take lightly the respon- United States Government is to pick The Surgeon General serves an im- sibility of the Senate in confirming apart their careers and their char- portant role as the national spokes- Presidential nominees. Nor do I take acters, groping for something that will person on matters of public health. lightly the right of the President to justify a political end? Is that what Over the years we have seen individ- nominate individuals who share his faces all those who wish to serve their uals serving in their capacity as Sur- philosophy. My own philosophy, opin- country? geon General make important state- ions or views have run contradictory to Ever since the President announced ments on the health effects of smoking, most of the nominees presented by this Dr. Foster as the Surgeon General the spread of AIDS, and teenage preg- administration. However, I have op- nominee, the Nation has witnessed a nancy. This person often becomes a posed very few of those nominees. non-stop exercise in abusive politics. lightening rod for controversy. Mr. President, as I have noted, I have For months Dr. Foster was attacked In recent years, a number of individ- concerns about Dr. Foster. I do not by those opposed to his profession and uals who have been nominated as Sur- agree with him on a number of issues, who questioned his integrity. Based on geon General have been controversial including abortion. However my oppo- allegations by ideological factions and figures. Their nominations did not pass sition on his confirmation is not based media scrutiny, some called for the the Senate without a full debate. Dr. on differing opinions. I am opposing Dr. nomination to be pulled before allow- Foster’s nomination is controversial. Foster’s nomination because the many ing Dr. Foster a chance to respond. Much of the initial information pro- problems surrounding his nomination That is not how this body should con- vided to the Senate was misleading or are issues that will be divisive. sider Presidential nominations. Nomi- inadequate. In addition, there are a An individual can have many fine nations should proceed in a fair man- number of issues that have been raised qualities and excellent experience and ner, allowing candidates to fully relating to Dr. Foster’s qualifications yet not be qualified to serve as a public present their story. to serve as Surgeon General and I be- official in the position of Surgeon Gen- We should debate those whose views lieve that both sides should have an op- eral. That position, sometimes referred differ from our own. That is called De- portunity to fully debate these issues. to as ‘‘America’s Family Doctor,’’ re- mocracy. But I do not believe every Mr. BINGAMAN. Mr. President, I rise quires someone who also has the abil- event in a person’s life should be held to express my strong support for the ity to bring groups together to work under a national microscope—espe- confirmation of Dr. Henry Foster to be toward resolving the health problems cially when the person in question has Surgeon General of the Public Health of this Nation. To his credit, Dr. Foster no chance to respond. That is called Service. In my view, it is time that the has some fine qualities and experience. persecution. Senate put personal agendas and Presi- I do not dispute that fact. However, the Fortunately, Dr. Foster finally re- dential primary politics aside. controversy surrounding his nomina- ceived a fair hearing in the Labor and It is time we let Dr. Foster get on tion, the disclosure—or lack of disclo- Human Resources Committee. He re- with the important job he has been pre- sure—of the number of abortions he sponded well to questions raised about paring for throughout his professional

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00028 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8869 career: the job of chief public health Mr. FEINGOLD. Mr. President, I ultimately to be decided by the Amer- advocate for our country. would like to express my support for ican people, and currently abortion is Based on the public hearings held by the confirmation of Henry Foster as legal in this country. I have been very the Labor and Human Resources Com- Surgeon General of the United States. concerned that individual Members are mittee and the very detailed ques- In making my decision to support Dr. using this nomination to express their tioning those hearings involved, I have Foster, I reflected upon many of the personal views about abortion. The come to the conclusion that Dr. Foster comments on this nomination that I controversy over the number of abor- is imminently qualified to serve as have received from constituents in my tions Dr. Foster performed, and his Surgeon General. home State of Wisconsin. Most Wiscon- recollection of that number, is really a Just as Presidential politics should sinites wish that fewer women had smoke screen designed to attack and not define when and under what condi- abortions, hope that fewer young demean Dr. Foster and other health tions the Senate conducts its business, women got pregnant unintendedly, and care providers who are involved in pro- neither should we in the Senate at- want sufficient access to comprehen- viding comprehensive women’s health tempt to define, based on ideology sive health care services for women and care. The underlying message is that alone, the boundaries of a Surgeon children. one can forget holding public office as General’s professional experiences. Dr. Foster’s capabilities and accom- a physician if you provide health serv- We in the Senate need to focus on the plishments in addressing women’s and ices to women that includes abortion real world we live in, not the world we community health are noteworthy. He services. wish we lived in. The reality is that is a respected medical educator and As a practitioner, the decision to per- our Nation has deplorably high rates of president of Meharry Medical School. form abortions is already risky enough. teen pregnancy, infant mortality, and He is the past president of the Associa- In January of this year, I joined my poverty. Too many of our children are tion of Professors of Gynecology and colleague, the Senator from California abused, troubled, hungry, and hopeless. Obstetrics, and has been a leader in ad- [Mrs. BOXER], in condemning violence Childhood violence and death due to dressing teenage pregnancy issues in at reproductive health clinics. I ex- suicide are increasing at alarming Nashville, TN. Lastly, by all accounts, plained then that many of the doctors rates. Incidence of AIDS and other sex- he is a sincere, compassionate, and re- in my home State of Wisconsin have ually transmitted diseases are increas- spected gynecologist who has delivered taken to wearing bullet proof vests to ing in every population in our country. thousands of babies and seeks quality go to clinics to do their work. Are we Statistics from my home State of health care for women and their fami- now saying, that in addition to endur- New Mexico illustrate these facts in lies. ing the threats of stalking, bombings, graphic detail: All of us heard numerous opinions on and shootings, physicians like Dr. Fos- We have the third worst rate of the nomination of Dr. Foster. I have ter must also pay the public political births to unmarried teens in the na- received letters from practitioners, price of ostracism and denouncement tion: From 1985 to 1992, the number of leading medical education depart- of professional credibility? births to unmarried teens grew from ments, and professional associations, Despite the controversy surrounding 41.6 to 60.1 births per 1,000 females age and have heard nothing from the med- his nomination, Dr. Foster conducted 15 to 19. That is an increase of 44 per- ical community which would impeach himself in the Labor and Human Re- cent over 7 years. Dr. Foster’s skills, abilities, and integ- sources Committee hearings in a man- In 1991, 18,234 cases of child abuse rity. For example, when President ner which convinces me both of his were reported in New Mexico, an in- Clinton nominated Dr. Foster, Dr. skill as a communicator and his com- crease of 21.4 percent from 1990. Douglas Laube, chair of obstetrics and passion as a practitioner. I believe he More than 10 percent of New Mexico’s gynecology at the University of Wis- was responsive to questions asked of children live in extreme poverty, with consin-Madison wrote the President in him, and that he clearly explained his family incomes below 50 percent of the support of that decision, and sent me a practice record including his tenure poverty level; 27.2 percent of our chil- copy of his letter. Dr. Laube has per- and involvement at Meharry in Nash- dren live in poverty, compared to the sonally worked with Dr. Foster for 7 ville, at Tuskegee in Alabama, and now national average of less than 20 per- years, serving on a number of national on sabbatical at the Association of cent. committees designed to develop the Academic Health Centers in Wash- Nearly 40 percent—4 out of 10—of our education of medical students and resi- ington, DC. children live in families with incomes dent physicians in the United States. In sum, Mr. President, I have evalu- 150 percent of the poverty level or less. Dr. Laube writes ‘‘Dr. Foster’s commit- ated the entire body of Dr. Foster’s Our teen violent death rate, though ment to medical education nationally record, and I believe him to be well declining, was still hovering at more and his activities in Tennessee under- qualified for this position. I also gen- than 70 deaths per 100,000 teens in 1992. score the efforts of an altruistic and erally believe that the President is en- I could go on, but I believe I have well-intentioned person.’’ He con- titled to select key members of his ad- made my point. tinues, ‘‘In my personal dealings with ministration and due deference should The real world is tough. The prob- him, and in my observations of his be paid to his choice, where the indi- lems we face are tremendous. It will dealings with others, I can attest to his vidual is qualified to serve. I will cast take a person who has faced reality and integrity, consistency, and dogged at- my vote to confirm Dr. Foster, and I dealt with the problems he has seen tention to detail. More importantly, admire throughout all the controversy with compassion and commitment to Dr. Foster is a physician who has spent his continued commitment and desire find solutions to the enormous public his entire career attempting to better to serve our country in this capacity. health challenges confronting our na- the life of others while serving as a role Mr. GLENN. Mr. President, I rise tion. model for countless medical students today in support of Dr. Henry Foster My impression is that Dr. Foster is and resident physicians in training.’’ for the post of Surgeon General of the such a person. His background as a With his profession behind him, how, U.S. Public Health Service. practicing physician, a scholar, and then, has all this controversy over Dr. Since his nomination several months academic administrator, and an advo- Foster arisen? In his 37 years as an ob- ago, Dr. Foster’s public and private cate for poor children, combined with stetrician and gynecologist, despite his history has been subjected to an excep- his proven ability to lead are evidence work to reduce teen pregnancy, sexu- tional level of public scrutiny, and has of his strength and compassion. ally transmitted disease and drug become a pawn in an unfair political Dr. Foster has proven his commit- abuse, and his role in delivering more game. I believe it is a compliment to ment to public service and public than 10,000 babies, Dr. Foster has also Dr. Foster’s character and achieve- health. He deserves to be judged by the performed some 39 abortions. ments, that when given the oppor- Senate on his merits as a physician and I do not believe that Dr. Foster tunity to answer his critics, a majority an educator. And he deserves the op- should be penalized for acting under of the Labor and Human Resources portunity to serve his country as the the law. The legalization of abortion is Committee voted to forward his nomi- next Surgeon General. an issue for Congress and the courts, nation to the full Senate.

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00029 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8870 CONGRESSIONAL RECORD — SENATE June 22, 1995 Mr. President, after reviewing the motivated procedural vote. I strongly dent Clinton originally promised that testimony presented at Dr. Foster’s urge my colleagues to vote for cloture his administration would be the most hearing and examining his credentials and support Dr. Foster’s nomination to ethical in American history. It is re- and accomplishments, I strongly be- the post of Surgeon General of the markable how far President Clinton lieve that Henry Foster possesses the United States. has fallen from the mark which he set skills and experience necessary to ad- Mr. FAIRCLOTH. Mr. President, for his administration. dress the many public health chal- much has already been said on the Sen- I will not recount the long list of in- lenges that face our Nation. ate floor about why Dr. Henry Foster is consistencies in Dr. Foster’s record. During his 38 years as a practicing unfit to serve as Surgeon General. Yes- Suffice it to say, that any nominee obstetrician-gynecologist, Dr. Foster terday, I voted against the petition to with such a tainted record before the has received national recognition as a invoke cloture on debate concerning Senate is de facto unqualified to hold scholar, academic administrator, and Dr. Foster’s nomination. As far as I am high public office in this Nation. Presi- advocate for maternal and child health. concerned, nothing has happened since dent Clinton should never have nomi- He has devoted much of his career to yesterday to cause me to change my nated Dr. Foster and when learning of educating medical practitioners at opinion about Dr. Foster’s qualifica- the many inaccuracies in information Meharry Medical College—serving as a tions to serve as Surgeon General. He provided to the Senate, President Clin- professor, department chairman, dean was the wrong man for the job yester- ton should have withdrawn the nomi- of medicine, and president. As a prac- day, and he is the wrong man for the nation. ticing physician and educator, Dr. Fos- job today. Many months have passed while the ter chose to work with low-income Many have testified as to their per- administration attempted to rehabili- families and children who might not sonal knowledge that Dr. Foster is a tate Dr. Foster’s reputation for verac- otherwise have access to health care. fine man—a nice man. I have no reason ity. However, nothing will change the Dr. Foster was a pioneer in the move- to disagree with that assessment. De- fact that Dr. Foster and the White ment to introduce the concept of re- spite those testimonials, many—myself House consistently provided the Senate sponsibility to at-risk youth. This con- included—do not believe that we are with false information. I cannot in cept has received a lot of attention in conducting a congeniality contest to good conscience support such a nomi- Congress lately. In 1988, Dr. Foster fill the vacancy created by Dr. Elders’ nee. founded the highly successful I Have a forced resignation. In rushing to fill Moreover, I have begun to think that Future Program devoted to preventing the position, the Clinton administra- we no longer need a Surgeon General. teen pregnancy and drug abuse. Unlike tion failed—once again—to do their Many of the responsibilities of this Of- teen pregnancy prevention efforts homework and thoroughly investigate fice could easily be fulfilled by others which focus on contraception, the I a nominee’s qualifications for the job in the Department of Health and Have a Future Program concentrates for which he is nominated. The saga of Human Services. Savings from elimi- on improving self-esteem, cultivating a Dr. Foster is yet another in a long nation of the Surgeon General’s Office sense of optimism in the lives of dis- advantaged young people, and pro- string of failed efforts by the White could be contributed toward deficit re- viding incentives to delay sexual activ- House to send to the Senate nominees duction. With the total mishandling of ity and childbearing. ‘‘I Have a Fu- who are prepared to fully disclose im- the Foster nomination, President Clin- ture’’ has won wide recognition from portant information about their back- ton has demonstrated better than any many sources, including the American ground—information essential for the of his predecessors the irrelevancy of Medical Association, and was des- Senate to exercise its constitutional the Office of Surgeon General. ignated as one of America’s Thousand duty to advise and consent on Presi- Mr. KEMPTHORNE. Mr. President, I Points of Light by President Bush in dential nominations. rise today to speak on the nomination 1⁄2 years in office, I would 1991. After 2 of Dr. Henry Foster as surgeon general Mr. President, I regret that the vote think that the White House staff would of the United States. on Dr. Foster’s nomination has really take more seriously their responsi- Let me begin by stating that I am come down to a vote on abortion. An bility toward the Senate and toward unequivocally opposed to confirming individual’s beliefs about reproductive administration nominees. Time after Dr. Foster for this post. choice, or the number of abortions per- time, we in the Senate are subjected to I have been concerned about this formed during the course of a medical unqualified nominees from the White nomination from the time it was an- career, should not be a litmus-test for House gang that can’t shoot straight. nounced. We are all well aware of the a nominee to the Surgeon General post. How much longer will our Nation con- conflicting reports which came out of Through his delivery and care of over tinue to tolerate this sort of negligence the White House about Dr. Foster’s 10,000 children, commitment to re- in office? background. I do not think I need to go search and education, promotion of Yesterday, 43 Senators sent a clear into the confusion created by the con- healthy lifestyles, and efforts to pre- message to the Clinton administration tinually changing reports about the vent unwanted pregnancies, Dr. Foster that we cannot support a nominee number of abortions which the doctor has proven his dedication to improving whose credibility is in serious doubt as has performed. But those inconsist- the health of all Americans. a result of numerous inconsistencies in encies quickly cast a shadow over the Dr. Foster has an outstanding pri- statements by Dr. Foster and the nomination as to whether the adminis- vate, public, and professional record. White House. Beginning on February 2 tration had done its job of properly in- He is uniquely qualified to lead our Na- when the President nominated Dr. Fos- vestigating a potential nominee. tion as an advocate for healthy and re- ter, a steady stream of inaccuracies While I do not believe Dr. Foster sponsible lifestyles. Mr. President, this were uncovered concerning crucial de- should be held responsible for the country has been without a Surgeon tails about his professional medical blunderings of the White House staff, General for over 6 months and we now background. Either Dr. Foster has a se- the situation raised doubts about his have the opportunity to confirm a man lective memory disability or the White forthrightness which have, in my mind, who will bring both experience and en- House early on concluded that the full never been resolved. thusiasm to our efforts to combat pub- truth about Dr. Foster would sink his One of the most glaring examples of lic health crises such as infant mor- chances in the Senate. this lack of candidness involved the tality, substance abuse, sexually-trans- After hastily confirming other Clin- Tuskegee Syphilis Study, in which mitted diseases, teen pregnancy, HIV ton nominees like Ron Brown and black men with the disease went un- infection, and others. Unfortunately, it Henry Cisneros, both of whom have se- treated as part of a study to examine appears that the will of a small minor- rious ethical and possibly even crimi- the long-term effects of syphilis. While ity will block a fair and democratic up- nal misconduct charges outstanding Dr. Foster claims he had no knowledge or-down vote on Dr. Foster’s nomina- against them, it is incomprehensible of the study prior to 1972, Public tion. that the White House would not more Health Service records indicate the Mr. President, I believe that Dr. Fos- carefully screen its nominees. Mr. Macon County Medical Society, of ter deserves more than a politically President, let us not forget that Presi- which Dr. Foster was vice-president,

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00030 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8871 and later president, knew of the study The PRESIDING OFFICER. The Sen- I yield the floor, Mr. President. as early as 1969. ator from Massachusetts has 6 minutes The PRESIDING OFFICER. Who We have received conflicting reports 17 seconds. yields time? about whether or not Dr. Foster at- Mrs. KASSEBAUM. Mr. President, I Mr. KENNEDY. Mr. President, I yield tended the meeting in which the soci- would like to yield myself 3 minutes. 2 minutes to the Senator from ety agreed to cooperate with the PHS As we close the debate today on the Vermont. in the study. Even if he did not attend, nomination of Dr. Foster, I would like The PRESIDING OFFICER. The Sen- documents from PHS officials indicate to make just a few further comments ator from Vermont is recognized for 2 further efforts were made to share in- about the process. minutes. formation on the study with all the I think it has been a good debate the Mr. JEFFORDS. Mr. President, I rise members of the Macon County Medical last 2 days. Prior to that time, the in strong support of cloture, as I be- Society. I simply do not see how Dr. Labor and Human Resources Com- lieve it is the right of the President to Foster, as the vice-president of a 10- mittee spent a considerable amount of have an opportunity to have a vote up member society, could have completely time focusing on the substantive issues or down on a very fine man who is will- avoided any knowledge of this study and raising substantive questions re- ing to dedicate his time to public serv- while so many efforts were being made garding this nomination. ice, who has an unblemished career of to keep the society fully informed on Some, including a majority of the dedication to those people who need this matter. committee, were satisfied with the an- help, those who are economically dis- But let us not focus entirely on the swers that Dr. Foster gave, and the advantaged, and those who have not past. What about the future? What vote was 9 to 7 to report him favorably seen the advantages that have been kind of role would Dr. Foster play as from committee. Others, including my- brought to so many others. surgeon general? He has stressed his self, were not. It is unfortunate that we find our- concern about the rate of teenage preg- With respect to the process in the selves in this situation because there is nancy in this country. Surely, this is a Chamber, the majority leader had a no question that this man was picked concern which all of us share. Illegit- number of options, including the op- because he would not ‘‘Raise the spec- imacy, especially among teens, is at a tion of not bringing up the nomination ter of abortion,’’ because his record, crisis level in the United States. Equal- of Dr. Foster at all. I have always be- first of all, of being an ob/gyn doctor ly important, however, is the manner lieved we should have an up-or-down who only performed 39, 40, if you want in which this issue would be addressed vote on nominations. Nevertheless, the to count another, abortions in 38 years if Dr. Foster were confirmed. course that was chosen by the majority is certainly not of one who is out seek- The basis of Dr. Foster’s efforts to re- leader is one that is a perfectly legiti- ing to make a career of abortions, by duce teen pregnancy may be seen in mate option, well within the rules of any stretch of the imagination. the ‘‘I Have a Future’’ program. From the Senate. These are rules that have In addition to that, by serving the my knowledge of the program, it leans been used frequently in the past by poor and starting his program I Have a toward the attitude that, ‘‘Kids will be Members on both sides of the aisle—as Future, he set an example we must rep- kids.’’ It assumes that when it comes has been pointed out in the course of licate around this country of how we to sex, we must teach children to be this debate. can get the young people in our schools careful rather than responsible. I could The majority leader has made this to look towards the future with hope, not possibly disagree more with this debate and these votes possible in less to understand that teenage pregnancy view. Yes, children must be allowed to than 1 month after the nomination was is a bad situation and that he had all make some decisions for themselves. reported from the committee. those kinds of rules that he followed in But we, as adults and parents, have a There is nothing that would have respect to that, teaching abstinence, of responsibility to instill strong values made this process pleasant for any of teaching parental guidance when pos- in today’s youth. us, most of all Dr. Foster. We may re- sible, things that I do not think anyone Dr. Foster’s ‘‘I Have a Future’’ pro- gret how we handle confirmation proc- disagrees with. It is true that the study gram failed to provide such guidance. esses and nominations for members of was marred by utilization of statistics, Teaching young people about sex, with- a President’s Cabinet and agency but that does not in any way diminish out stressing the importance of absti- heads. It is not an easy process, and it the importance of the message he was nence, at best, gives young people an has become, I think, increasingly a giving to those young people. incomplete message. At worst, it actu- grueling one. Mr. President, I want to remind my ally encourages the kind of behavior In this case, I believe it has been han- colleagues what this vote is about. We which we should be trying to discour- dled in a way which is well within the are here to consider whether or not we age. parameters of appropriate conduct. will limit debate on this nomination, Mr. President, we are all well aware There are those who have questioned whether we not allow a minority of of the controversy which has sur- that, but I think there has been an op- this Chamber to take this nominee hos- rounded the Office of the Surgeon Gen- portunity to air strong feelings on both tage. eral in recent years. The next surgeon sides in ways that have fit the rules We are going to vote now, not on general must be able to repair the dam- and the procedures of the Senate. I am whether Dr. Henry Foster is qualified age which has been done to that posi- not sure, Mr. President, that we can for the job of Surgeon General—which I tion. The focus must be shifted from ask for more than that. It has been my believe he is—but on whether we will the personality of the office holder to own belief that Dr. Foster has an- allow the President’s nominee the the important health issues which face swered successfully and well the ques- courtesy, the due process, of an up or our Nation. tions that were put before him in the down vote on his nomination. While I would not question Dr. Fos- committee. What reason could we possibly have ter’s level of concern about the issues The PRESIDING OFFICER. The Sen- not to vote? Whose interests are served he embraces, I do not believe he would ator’s time has expired. by allowing a minority of Senators to be able to achieve this goal. For this Mrs. KASSEBAUM. I will yield my- deny a presidential nominee a con- reason, I will oppose Dr. Foster’s nomi- self 1 more minute. firmation vote? nation. And those were important and sub- The charges against Dr. Foster that The PRESIDING OFFICER. Who stantive questions. For myself, I do not we heard yesterday and today are just yields time? believe he is the person to be a success- that—charges. They are allegations, The Senator from Kansas. ful Surgeon General of the United not fact. During the committee process Mrs. KASSEBAUM. Mr. President, States at this time and that is why I I spent hours and hours familiarizing how much time remains on our side? have opposed his confirmation. Never- myself with Dr. Foster’s record and the The PRESIDING OFFICER. The Sen- theless, I feel strongly that the nomi- specifics of his critics’ charges. I be- ator has 14 minutes and 10 seconds. nation has been debated and handled came convinced of several facts: Mrs. KASSEBAUM. And how much fairly within the scope of legitimate Henry Foster did not learn of the on the other side? procedures of the Senate. Tuskegee experiments in 1969 at the

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00031 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8872 CONGRESSIONAL RECORD — SENATE June 22, 1995 briefing given by public health offi- and now with this nomination. There is Mrs. MURRAY. I thank the chair. I cials. Not only is he documented as at- no substance to the charges against thank my colleague. tending at a complicated Caesarean this good man, this talented and hard- I want to thank Senator KASSEBAUM section birth shortly after the meeting working doctor. for having conducted fair hearings and started, but I believe the doctors who Let us not let ideology and politics allowing the process to move forward. I were at that meeting were not given get in the way of fairness. We have a hope that today’s vote is one again of the full story. Foster did not know collective responsibility to vote, even fairness. anything about the denial of treatment on controversial nominees. I do hope A filibuster on nominations has only for these men. my colleagues will join me in sup- occurred 24 times. Twenty-two of those In fact, no one did, because even the porting Dr. Foster’s nomination, but at times in this body, the body has said doctors at the meeting were not told the very least I believe he deserves an the nomination deserves an up-or-down about it. According to the FBI, the up or down vote. Let us not deny him vote; two of those other times they public health officials were already that. Please join me in voting for clo- were nominations made by Democratic covering their tracks and when they ture. Presidents and defeated by Republican briefed these six or eight doctors they The PRESIDING OFFICER. The Sen- filibusters. did not tell them the truth about the ator’s time has expired. I hope that fairness prevails as it has experiment. How could they have? Who yields time? The Senator from 22 times in the past and that this Sen- Certainly someone given the facts Massachusetts. ate votes today to allow this nomina- would have spoken out publicly and Mr. KENNEDY. I yield 2 minutes to tion to come forward so we can finally halted the 40-year-long project. the Senator from Connecticut. vote up or down on the nomination of The PRESIDING OFFICER. The Sen- Foster did not know because nobody Dr. Henry Foster. He deserves that ator from Connecticut is recognized for knew. Decades later, we cannot prove vote, and he deserves our confidence. 2 minutes. the content of the meeting because the The PRESIDING OFFICER. The Sen- minutes, trip report and file have long Mr. DODD. Mr. President, I thank the distinguished Senator from Massa- ator’s time has expired. ago disappeared from the CDC archives Mr. KENNEDY. Mr. President, no as the officials tried to cover their chusetts. Mr. President, I spoke yesterday on matter how they have tried to distort tracks. and misrepresent the record of Dr. Fos- Dr. Foster has had a distinguished this nomination, but I wish to empha- ter, he is an outstanding physician, se- medical career, treating patients with- size again today my strong support for lected by the Institute of Medicine, se- in the medical norms of his time and this nominee and my strong hope that lected to be on the governing board of even advancing new and better treat- this very fine American will be given a the most prestigious board in the ments in many cases. I hope my col- chance to be voted on, yes or no. I United States of America for a doctor, leagues will resist the temptation to think it is regrettable that there are outstandingly well qualified. judge treatments given decades ago— those who cast their votes against this On the one hand you have the sense like the sterilizations of severely men- man, who never even bothered to talk of hope, the belief in the young people tally impaired women—by the medi- to him, never met him, did not partici- of this country, someone that really cine of today. pate in the hearings. I would invite my Then as well as now, Dr. Foster has colleagues in the short time that re- wants to give something back to this enjoyed the admiration and acclama- mains to talk to their colleague from country for all that it has done for tion of his peers, and he has been sup- Tennessee, Dr. Frist. The rest of us him. And on the other side you have ported in this nomination by every talk about Dr. Foster. Although some gross distortions, misrepresentations, medical group that I can think of, of us met him and spent time with him, and negativism. That is what we have ranging from the AMA, not known for it has been just since February. Dr. seen during the course of this debate. its liberalism, to the American College Frist, our new colleague from Ten- And the opposition is basically as a re- of OB/GYNs to the American Associa- nessee, has not only known him but sult of Presidential politics. tion of Medical Colleges. worked with him. I would invite my I say again, let us leave Presidential It is undeniably true that the admin- colleagues to read his comments in the politics in Iowa and in the other pri- istration did not serve Henry Foster’s Senate Labor Committee hearings, just maries, and let us get on and give this nomination well in its characterization prior to the favorable vote coming out outstanding individual the fair vote of his record on abortion. Ever since of that committee. that he deserves. they misinformed Senator KASSE- Some of us talk at least from some The PRESIDING OFFICER. The Sen- BAUM’s office about the number of pro- experience, having spent some time ator’s time has expired. cedures he had performed back in Jan- with him, but here is someone who ac- The Senator from Kansas controls 10 uary, there has been confusion in the tually worked with him, knows him minutes 20 seconds. numbers game. from his State, knows people he has The Democratic leader is recognized. But after he had the opportunity to worked with. You can listen to speech- Mr. DASCHLE. I understand the time review his patients’ medical records, es by those who oppose him, never met allocated to this side has been expired. Dr. Foster gave us a number; he is the him, never sat down with him, in fact So, I will use my leader time to accom- physician of record for 39 surgical pro- in some cases within hours after his modate that. cedures since 1973. That number has name was sent up announced they were The PRESIDING OFFICER. Without not changed. against him. That is almost unheard objection, it is so ordered. I can understand why he did not of. I respect those who let the hearing Mr. DASCHLE. Mr. President, this is know off the top of his head, because I process go forward, gave him a chance an important moment. The vote we are would be hard pressed to give an accu- to express his views, listened to him, about to cast will affect more than one rate count of the votes I have taken on and then said they were against him. man or one position. It will help dic- a particular issue over the past 20 But to never meet the man, never give tate the way this Senate discharges years. I might volunteer an estimate, him the benefit of a hearing, even a one of its most important duties. And I but I would certainly have to do re- personal one, and then decide that he ask each of my colleagues to think search to verify the number. did not deserve to be voted on by this about that as we cast our vote. Each of Some have implied that we should body, I think is a sad moment in this us has been afforded the right to make not vote on Henry Foster’s nomination Chamber. our case to the American public. That because he was once—once in a 30-year The PRESIDING OFFICER. The Sen- is how we got here. We cannot deny career—charged with medical mal- ator’s time has expired. this afternoon the same right to a man practice. The charges were dropped. Who yields time? who is clearly qualified to be the next The case was not adjudicated. Yes, the Mr. KENNEDY. I yield 1 minute to Surgeon General. allegation of improper conduct was the Senator from Washington. The Surgeon General has been right- made, but it was not substantiated. The PRESIDING OFFICER. The Sen- ly called America’s family doctor. And I would suggest to my colleagues ator from Washington is recognized for in that capacity he or she is called that we have a similar situation here 1 minute. upon to grapple with some of the most

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00032 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8873 difficult problems of our day; problems What is really being judged here, un- Let us get the record clear right up like AIDS, problems like teen preg- fortunately, is not Dr. Henry Foster. front. You talk about fairness. That is nancy, problems like substance abuse For 6 months, Dr. Foster has been sub- 251, and not one defeated. And, second, and breast cancer, problems that are jected to intense scrutiny from the I heard about a filibuster. I do not devastating to the American people Labor Committee, from the media, and know of any filibuster going on. If so, and to families all over this country. from the American people. And he has I missed it. By unanimous consent we This Senate has talked too little passed every test. The only test he did agreed to this procedure. I think it is a about these problems during the course not pass was the litmus test of the far good one. We are giving Dr. Foster the of the last 5 hours. Instead of focusing right. What is being judged here is the same thing we gave Chief Justice on America’s future, many Members of Senate itself and the way the Senate Rehnquist back in 1986 when I had to this Senate have chosen to focus on the deals with those who come before us to file cloture because the Senator from past and, frankly, distorting it. That is offer their public service. Massachusetts would not let it come to regrettable. The distinguished major- Henry Foster is an extraordinary a vote. physician and leader. If this were not ity leader said yesterday that this is So Dr. Foster’s nomination was re- an election cycle, I have no doubt that not such an unusual occurrence. Twen- ported out of the Labor Committee on he would be Surgeon General already, ty-six times in the last 27 years, he May 26. We began this debate on June said, nominees have been denied con- that this Senate would have confirmed him overwhelmingly long ago. Henry 21, and during that period there has firmation by filibuster. been a 7- or 8-day recess. So Dr. Foster Well, just moments ago I heard the Foster is a selfless man who wants to has been treated fairly. The Labor distinguished Senator from Iowa set serve his country and is being wasted Committee has acted promptly and his the record straight on that issue. Sen- for the selfish political ambitions of a nomination has been placed before the ator HARKIN—as others have indicated few. If we prevent him from receiving a full Senate for debate and a vote. on several occasions already during fair vote, we will make it even more this debate—has attempted to correct difficult to attract good, qualified peo- Again, as I said yesterday, I have al- the record on this and so many other ple to public service. And this body, ways felt that the President should matters that have been misreported or the U.S. Senate, will be judged harshly. have a right to his nominees, but there on which only half the facts were pre- Mr. President, I close with this may be exceptions from time to time, sented. The fact is that on every occa- thought: It is the position of this Sen- and I have voted against nominees sion during the 27 years Senator DOLE ator that the process we have just seen from time to time—not very often. I cited, when it was a Republican nomi- is clearly wrong. It is wrong for the believe the record will show that we nee, that nominee ultimately was ap- United States and it must be stopped. have cooperated in nearly every case; proved with bipartisan support. Two The business of interest groups fanning in fact, even helped the President with nominees were prevented from being out through the country, digging up some of the nominations which might confirmed by a filibuster, and both dirt on a nominee, the business of have been in trouble without assist- were Democrats—Abe Fortas, who was leaks, of confidential documents put ance from this side of the aisle. nominated by President Johnson to sit out to members of the press, the idea There is plenty of precedent for re- on the Supreme Court, and Sam Brown, that absolutely anything goes that is jecting a nomination on a cloture vote. who was nominated by President Clin- necessary to stop a nominee, this Again, as I said, I will put in the whole process must end. We in the Sen- ton for the rank of Ambassador. So the RECORD for everyone to see that there ate have the power to encourage that only filibusters that have prevented were 24 nominations, including the process or the power to stop it. We nominees from receiving a fair vote nomination of William Rehnquist to be have that power by the vote we are were Republican filibusters. Let us be Chief Justice, which had to face cloture about to cast. vote hurdles. clear about that. Mr. President, those are not my So the question before us today is words. They belong to a former col- So overnight, I have done a little re- not whether Henry Foster is qualified league, Senator John Danforth. Sen- search on the Rehnquist nomination, to be Surgeon General. That is the ator Danforth issued that eloquent plea and I learned that 19 of my Democratic question we will face should we take nearly 4 years ago in the defense of colleagues who are still in the Senate the next step forward. Mr. President, Clarence Thomas’ right to a vote on his today voted against invoking cloture the question we face this afternoon nomination to sit on the Supreme on this nomination: Senators BAUCUS, with this vote before us now is one of Court. Justice Thomas received that BIDEN, BRADLEY, BYRD, DODD, EXON, fairness. And the American people have vote. He received that vote with the GLENN, HARKIN, INOUYE, JOHNSTON, made themselves abundantly clear on backing of some of the very same peo- KENNEDY, KERRY, LAUTENBERG, LEVIN, the question of fairness. The majority ple who now would deny that vote to MOYNIHAN, PRYOR, ROCKEFELLER, SAR- of people have said in poll after poll, Dr. Foster. And I urge Members, in par- BANES, and SIMON, and also then Sen- Henry Foster deserves a vote. And the ticular today on this nomination, to ator ALBERT GORE. Now, certainly, he majority of this body agrees with that put politics aside just for the moment would not be unfair, but he was, ac- sentiment. and allow Dr. Foster’s nomination to cording to all the rhetoric I heard com- Are we going to confront the health move forward. It is a question of fair- ing from the other side. problems that are devastating Amer- ness, Mr. President. And the answer— In fact, I filed a cloture motion on ica’s families and give Dr. Foster the well, the answer is in our hands. opportunity to combat those problems the Rehnquist nomination because my I yield the floor. colleague from Massachusetts, Senator as Surgeon General? Will we do that? The majority controls 10 minutes. KENNEDY, was apparently unwilling to Or are we going to allow partisan Pres- The PRESIDING OFFICER. The ma- end debate. Do not take my word for it, idential politics to stifle that debate? jority leader. The question we face right here, Mr. DOLE. As I said yesterday, I just take a look at page 23336 of the right now, is simply that. It is a ques- would like to begin with just a few Congressional RECORD for September tion of fairness. What message are we facts, facts we sometimes are not using 15, 1986. Senator KENNEDY also urged sending to Dr. Foster, to the American in debate or are not reported by the his colleagues to follow the Abe Fortas people who believed in his right to a media. Let me again say, because I did example: Defeat cloture so the fair vote? What message are we sending not read it anywhere and did not hear Rehnquist nomination will be with- to the people who look up to Dr. Foster it on television—maybe it was on drawn. That can be found on page 22805 of the CONGRESSIONAL RECORD of Sep- as a role model and to all the Ameri- radio: During these 21⁄2 years in office, cans who need the services of a quali- President Clinton has submitted 251 tember 11, 1986. fied Surgeon General today if we refuse names to the Senate for confirmation So, Mr. President, we hear a lot of to extend to Dr. Foster the opportunity of civilian positions. Of these 251, 115 talk about fairness, we hear a lot of given every one of his predecessors? have been confirmed, 1 withdrawn and talk about the need for an up-or-down Mr. President, the issue this afternoon none defeated. The rest are in the con- vote, but I do not remember all the is simply one of fairness. firmation pipeline. hand wringing about fairness back in

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00033 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8874 CONGRESSIONAL RECORD — SENATE June 22, 1995 1986, or many times since that time, not know Dr. Foster that well. I have met with a lot of the families who did when at that time the Chief Justice had one visit with him. I do not snoop not even get a vote of any kind because Rehnquist nomination was on the line. around about his past. I think Senator they were Republicans in a Democratic What does history tell us? History DANFORTH was right when he made Senate. Well, Dr. Foster is getting a tells us that 31 of my colleagues on the that statement: Tell it to the family of vote. I promised him that, and he is other side of the aisle were prepared to John Tower when you talk about alle- getting it very quickly, in 2 days. filibuster a nominee to one of the high- gations and stuff over the transom, I met with him on Monday, and here est positions of our Government, and under the transom and wrecking some- it is Thursday, and we are going to today many of those who supported body’s character; tell it to John Tow- have the second vote. I think his initial this filibuster allege unfairness when er’s family. He is gone. lack of candor and certainly lack of Republicans exercise the same right— Tell it to Robert Bork. Tell it to his truthfulness on the part of the White the same right—only this is a minor of- wife when they were harangued and House made this nomination in doubt fice compared to the Chief Justice of harassed day after day after day by the from the start. the Supreme Court. Judiciary Committee. So whether it is his misleading state- We are talking about a nominee to an Tell it to Bill Lucas and his family, ments concerning his abortion record, office with a budget of under $1 million the fine outstanding sheriff of Wayne or his alleged knowledge of the infa- with a staff of six. But he is supposed County, MI, an outstanding black mous Tuskegee syphilis study or in- to make certain everybody is taken American who did not even get a vote, volvement in sterilizing several men- care of, all the medical problems are any kind of a vote on this floor, be- tally retarded women, there are just going to be taken care of if we just cause the Judiciary Committee voted, too many questions. If the Senator vote yes on this nomination, according in a 7–7 tie, and would not report him from Massachusetts can say that some- to my distinguished colleague from out. body lacks candor, maybe we can say it South Dakota, Senator DASCHLE. That is the thing the Democrats do with the same credibility on this side In fact, I remember my colleague not tell us: How many Republicans of the aisle. Maybe we are not entitled from Massachusetts arguing against never had a hearing, were never re- to that because we are Republicans, the Justice Rehnquist confirmation be- ported out of the committee, and when only the liberals are entitled to make cause he ‘‘lacked candor in testifying they were reported out, they stayed on those judgments. But we are, too. before the Senate Judiciary Com- the calendar; never had the courtesy to As I said yesterday, we need some- mittee’’ and because of Justice even have a cloture vote. They died on body in that position to be America’s Rehnquist’s ‘‘alleged pattern of expla- the calendar. doctor—not Republicans, not pro-life, nations * * * that are contradicted by I have not heard anybody say any- not pro-choice, not Democrats, not others or are misleading or do not ring thing about that over there, and I put conservatives, not liberals, but Amer- true.’’ those facts in the RECORD. I thought ica’s doctors. It is not a policy posi- Does that sound familiar? Many of us surely somebody would get up and ex- tion, it is a public relations job, with a said this time the same thing about Dr. plain why the Democrats would do that staff of six. The world will not come to Foster. when they talk about fairness and an end if we do not ever fill this office I have talked to him personally, oth- their hearts ache and they cannot sleep or if it is abolished. ers have talked to him, others who are at night. Why do they not read the So it seems to me we do not want on the committee. We should not have RECORD and go back and call all the somebody to divide us, as the previous the right to make that judgment be- families of the people who did not even Surgeon General did, about legaliza- cause we are Republicans, but it is all get a hearing or were on the calendar tion of drugs and all the other state- right to make it against the Chief Jus- week after week after week, month ments made by that Surgeon General, tice nominee for the U.S. Supreme after month after month and never but that has nothing to do with this Court. even had the courtesy of a vote, not nomination. My point is, if there is So, Mr. President, facts can be stub- even a cloture vote. somebody out there, there are thou- born things. They are rarely noted by So I know all about it. I have been sands and thousands of good people out the media, not often used in this Cham- here a while, and I keep track of these there who can unite America, unite ber. But they show that we have a dou- things. What comes around goes Americans, whatever they can do in ble standard and it is alive and well in around, and none of us are perfect. that office, and this is not the right Washington, DC. And it goes on and on When we make arguments on the Sen- nomination. and on. We hear all the hand wringing ate floor, we ought to go back and look Again, I agree with Senator DAN- over there and all the talk of Presi- at the last argument we made and the FORTH. I wonder sometimes why any- dential politics on this side and noth- one before that to see if it is consistent body would accept a nomination, but I ing about Presidential politics down- and how did we vote on Rehnquist be- do not know anybody on this side who town. This is not about Presidential fore standing up to make a speech. has been personal about Dr. Foster. I politics. That may be a good sound I can recall in 1980 joining with the am proud of the fact he is a veteran. As bite. This is about Dr. Foster and his Senator from Massachusetts, Senator far as I can see, he is a good person. We qualifications for the office, and it is KENNEDY, when they wanted to block had a nice visit. But also we have to about our right to advise and consent. John Breyer’s nomination. I said it have a record, and the record, I think, I must say, as I look back on it, we should not be blocked, and I voted for is the problem: His lack of candor. could have chosen other options, but it cloture, and we succeeded. He was a So we are proceeding, I think, in a seemed to me this was a fair option, Democrat, so it is not politics. very fair way, as we look at history just as fair as it was for Justice This nomination was flawed from the and look at the record and look at how Rehnquist who was nominated to be start, and the President knows it. But quickly this nomination has moved. Chief Justice. he sought to divide the American peo- It seems to me cloture should not be Cloture was invoked in that case. ple on the issue of abortion. That is all invoked and this nomination would go Cloture can be invoked in this case. this nomination is about, trying to di- back on the calendar, as the unani- The issue is not whether cloture was vide the American people for political mous-consent agreement indicates. invoked on 22 of the 24 nominations purposes, and the President talks that have been subjected to cloture about politics and his Chief of Staff f procedure. This is a false distinction. Leon Panetta goes on television this What is important is we have had 24 morning in some outrageous statement CLOTURE MOTION nominations subjected to a cloture about a vengeance up here—venge- The PRESIDING OFFICER (Mr. vote. So he can get an up-or-down vote, ance—which means they must be los- THOMPSON). The hour of 2 p.m. having all he needs to do is get 60 votes on ing. arrived, under the previous order, the this, as others have done in the past. So I wish Dr. Foster well. No one clerk will report the motion to invoke I do not question those who say Dr. likes to see someone who may want to cloture. Foster is probably a fine person. I do have a job denied that opportunity. I The legislative clerk read as follows:

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00034 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8875 CLOTURE MOTION NATIONAL HIGHWAY SYSTEM (b) a safety belt use rate in each suc- We, the undersigned Senators, in accord- DESIGNATION ACT ceeding fiscal year thereafter of not less ance with the provisions of Rule XXII of the than the national average safety belt use Standing Rules of the Senate, do hereby The PRESIDING OFFICER. The rate, as determined by the Secretary of move to bring to a close debate on Executive clerk will report the pending business. Transportation. Calendar No. 174, the nomination of Dr. The assistant legislative clerk read Henry W. Foster, to be Surgeon General of as follows: Mr. GREGG. Mr. President, I rise in the United States: A bill (S. 440) to amend title 23, United support of this amendment which al- Senators Christopher Dodd, Carl Levin, States Code, to provide for the designation of lows New Hampshire to meet the safety Dianne Feinstein, James Exon, Harry Reid, the National Highway System, and for other belt use law requirements under sec- Daniel K. Akaka, Claiborne Pell, Richard purposes. tion 153 of ISTEA. Under this amend- Bryan, Patty Murray, Bob Graham, Max Baucus, Frank R. Lautenberg, Russell D. The Senate continued with the con- ment, highway safety funds would not Feingold, Barbara Mikulski, Barbara Boxer, sideration of the bill. be transferred from highway construc- Edward Kennedy, Tom Daschle, and Carol Mr. WARNER addressed the Chair. tion projects to highway safety pro- Moseley-Braun. The PRESIDING OFFICER. The Sen- grams if the safety belt use rate in fis- f ate will be in order. The Senator from cal years ending September 30, 1995, CALL OF THE ROLL Virginia. and September 30, 1996, is not less than Mr. WARNER. Mr. President, the 50 percent. In fiscal years thereafter The PRESIDING OFFICER. By unan- managers wish to report steady safety belt rate shall not fall below the imous consent, the quorum call has progress on this bill. However, we have national average as determined by the been waived. an amendment now being reviewed by Secretary of Transportation. f all parties involved in the Stevens- It is my belief that the Federal Gov- Murkowski amendment. We are await- VOTE ernment should not mandate seatbelts; ing a report back on their negotiations, The PRESIDING OFFICER. The those decisions should be left to the which I am hopeful will resolve these question is, Is it the sense of the Sen- States. I believe all individuals should issues. ate that debate on the nomination of wear seatbelts whenever they ride in a Mr. BAUCUS. Mr. President, the Sen- Henry W. Foster, Jr., to be Surgeon vehicle. Furthermore, I believe that General, shall be brought to a close? ate is not in order. The PRESIDING OFFICER. The Sen- local government, not the Federal Gov- The yeas and nays have been re- ernment, should continue to play a role quired. ate will come to order. in educating people regarding the need The clerk will call the roll. Mr. WARNER. Mr. President, I be- The legislative clerk called the roll. lieve we can now proceed. to take every precaution when oper- The yeas and nays resulted—yeas 57, Once again, I wish to inform the Sen- ating a vehicle. nays 43, as follows: ate on behalf of the managers that we As a former Governor, I realize first- [Rollcall Vote No. 280 Ex.] are making progress. The one remain- hand the frustration local government YEAS—57 ing amendment which is yet to really experiences when the Federal Govern- Akaka Feinstein Levin be fully reconciled is that regarding ment attempts to micromanage public Baucus Ford Lieberman the issues in Alaska, the amendment policy. Americans no longer want big Biden Frist Mikulski proposed, of course, by the senior Sen- Bingaman Glenn Moseley-Braun brother looking over their shoulder at- Boxer Gorton Moynihan ator and junior Senator, Mr. STEVENS tempting to force compliance with re- Bradley Graham Murray and Mr. MURKOWSKI. gard to seatbelt compliance. Breaux Harkin Nunn Until that matter is further refined, I I am pleased that this amendment, Bryan Heflin Packwood have nothing further at this time and I Bumpers Hollings Pell which allows New Hampshire to be yield the floor. Byrd Inouye Pryor judged on its safety record for safety Campbell Jeffords Reid Mr. CHAFEE addressed the Chair. belt usage, has been adopted. This Chafee Johnston Robb The PRESIDING OFFICER. The Sen- Cohen Kassebaum Rockefeller amendment will remove the current ator from Rhode Island. Conrad Kennedy Sarbanes unfair mandatory penalties forced on Daschle Kerrey Simon AMENDMENT NO. 1464 Dodd Kerry Simpson New Hampshire without regard for its Dorgan Kohl Snowe Mr. CHAFEE. Mr. President, on be- excellent seatbelt compliance record. Exon Lautenberg Specter half of Senator SMITH and Senator Feingold Leahy Wellstone GREGG, I send an amendment to the Mr. CHAFEE. Mr. President, this is an amendment that takes care of a par- NAYS—43 desk and ask for its immediate consid- ticular situation that has arisen in Abraham Gramm McConnell eration. Ashcroft Grams Murkowski The PRESIDING OFFICER. The New Hampshire and addresses the de- Bennett Grassley Nickles clerk will report. sires of the Senators there. They are Bond Gregg Pressler The legislative clerk read as follows: doing extremely well as far as their Brown Hatch Roth seatbelt usage goes. This makes them Burns Hatfield The Senator from Rhode Island [Mr. Santorum continue in that path and move up to Coats Helms Shelby CHAFEE], for Mr. SMITH, for himself and Mr. Cochran Hutchison Smith GREGG, proposes an amendment numbered the national average as time goes on. Coverdell Inhofe Stevens 1464. Craig Kempthorne It is an amendment that has been Thomas D’Amato Kyl Mr. CHAFEE. Mr. President, I ask Thompson cleared by both sides, and I think it is DeWine Lott Thurmond unanimous consent that reading of the a good one. Dole Lugar amendment be dispensed with. Domenici Mack Warner The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. Without Faircloth McCain ator from Montana. The PRESIDING OFFICER. On this objection, it is so ordered. Mr. BAUCUS. May I ask the distin- vote, the yeas are 57, the nays are 43. The amendment is as follows: guished chairman of the committee, is Three-fifths of the Senators duly cho- At the appropriate place on the bill add the sen and sworn not having voted in the following new section: this the same version the chairman affirmative, the motion is not agreed SEC. . showed me not too long ago, maybe to. The State of New Hampshire shall be about an hour or so ago? Under the previous order, the nomi- deemed as having met the safety belt use law Mr. CHAFEE. Yes. nation is returned to the calendar. requirements of section 153 of title 23 of the U.S. Code, upon certification by the Sec- Mr. BAUCUS. Mr. President, we have f retary of Transportation that the State has examined this amendment and we LEGISLATIVE SESSION achieved— think it is acceptable. (a) a safety belt use rate in each of fiscal The PRESIDING OFFICER. The Sen- years ending September 30, 1995 and Sep- Mr. SMITH. Mr. President, I want to ate will now return to legislative ses- tember 30, 1996, of not less than 50 percent; thank the managers of this bill, the sion. and Senators from Rhode Island, Virginia,

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00035 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8876 CONGRESSIONAL RECORD — SENATE June 22, 1995 and Montana, for working with me on a The amendment (No. 1464) was agreed agers’ amendment at the appropriate compromise amendment that would to. point to permit our State to have ac- provide relief to the State of New Mr. CHAFEE. Mr. President, I move cess to a visitors center just south of Hampshire from certain highway-re- to reconsider the vote. the Tennessee line. This was something lated penalties. The issue we have been Mr. BAUCUS. I move to lay that mo- that was provided for in the 1994 appro- debating for the last 2 days in section tion on the table. priations bill but has not yet been fi- 153 of ISTEA, which sanctions States The motion to lay on the table was nally resolved. We hope that this bill that have not enacted mandatory mo- agreed to. can include some language that would torcycle helmet and seatbelt laws. Mr. CHAFEE. Mr. President, if there help that situation be resolved in a sat- This section of current law penalized is no other business to come before us isfactory way. the State of New Hampshire by divert- immediately, I suggest the absence of a But all in all, this is a good bill. It is ing its scarce highway maintenance quorum. an important bill. It is a restrained and construction funds to its safety Mr. COCHRAN. Mr. President, I won- bill. The Senators have been encour- program—whether or not this makes der if the Senator will withhold just for aged not to get involved in new dem- any sense. In other words, the penalties a comment or two about the bill? onstration type projects in the bill. I are assessed regardless of whether New Mr. CHAFEE. I certainly will. know we cooperated in that. Hampshire already has an adequately Mr. COCHRAN. Mr. President, it is We want the managers to know that funded safety program directed toward my understanding it would be in order we appreciate the way that they have helmet and seatbelt usage, and irre- for comments to be made about the maintained discipline in this process spective of New Hampshire’s safety bill, not necessarily about the amend- and have shown that restraint. record. States constantly tell us that ment that is pending. Is that correct, they are in a better position to address as a parliamentary inquiry? Mr. WARNER. Mr. President, I thank these types of issues than the Federal Mr. WARNER. Mr. President, the my distinguished colleague. Government is, and I strongly agree. Senator is correct. The managers of I wish to bring this to his attention. Yesterday, the Senate voted to repeal the bill are awaiting reconciliation of He said we have asked them not to add the penalties for noncompliance with several amendments. At that point in projects. We have not added any. I motorcycle helmet laws. Today, we time, we will move toward final pas- think this bill can meet whatever test have reached an agreement on an sage, but we welcome the comments of as a clean test in terms of demonstra- amendment that would provide an in- our distinguished colleague from Mis- tion projects. The American public centive for the State of New Hamp- sissippi beforehand. does not want to see these anymore. shire, which does not have mandatory I yield the floor. The various Governors and highway seatbelt law, to maintain its 50 + seat- The PRESIDING OFFICER. The Sen- commissions in the several States do belt use rate and strive to reach the ator from Mississippi. not want to see them anymore. I think national average within 2 years. If they Mr. COCHRAN. Mr. President, let me this bill is a landmark bill in terms of do not meet these goals, then the sanc- commend the managers of the bill for its absence of that type of project. tions will be imposed as current law That is owing to the full cooperation of dictates. the good work they have done in bring- This is a very reasonable amendment ing this legislation to the floor. It is an the Senate on both sides of the aisle. and it does not compromise the Sen- important contribution to the infra- So I thank the Senator for bringing ator from Rhode Island’s objective of structure of this country for the Con- it up. I was fearful when he said add achieving a higher percentage of indi- gress to take action on this bill in a not a lot, some might in turn interpret viduals wearing seat belts. In fact, it timely fashion so States and localities that as that some had been added. creates a more effective incentive, who depend upon these allocations of Mr. COCHRAN. Mr. President, I without being punitive or infringing on funds can make plans to do it in a sys- thank the distinguished Senator from States rights. tematic way and to carry forward some Virginia for his comments. I certainly New Hampshire will continue to edu- of the important road and bridge agree with him. I recall in my early cation its citizens on the benefits of projects that would be funded in this days in the Congress. I served in the seatbelt use. Educational programs legislation. other body, and I was assigned to the like those we have in New Hampshire I know in our State of Mississippi Public Works and Transportation Com- certainly play an important role in in- hardly a bill is passed by the Congress mittee. I served on the Surface Trans- creasing highway safety. States do that is more important to the contin- portation Subcommittee. I had some have the expertise and know-how to de- ued economic progress and develop- good experience in working with Sen- velop their own programs without Fed- ment of our State than this legislation ators, like Senator CHAFEE, and other eral intimidation. that is before the Senate today. members of committee over here on In conclusion, I strongly believe that I know that there is also a continu- this side of the Capitol. it is through education, not necessarily ation of a study called corridor 18. a mandatory law, that we will achieve This is important work. I think it is That may very well provide a new work that has been well done, and I higher rates of seatbelt use. New major corridor and interstate type Hampshire is capable of ensuring the commend all Senators who have had an highway which could go through Mis- active role in the development of the safety of its citizens without the pater- sissippi, and it may very well, I am nalistic arm of the Federal Govern- bill and the managing of it on the floor sure, traverse many States in the cen- of the Senate. ment dictating to us how we should ac- tral part of the country, from Ohio complish this goal. down to Houston, TX, and maybe be- Mr. CHAFEE addressed the Chair. The PRESIDING OFFICER. The Sen- yond. There are many communities The PRESIDING OFFICER. The Sen- ator from Rhode Island. along this potential corridor that ator from Rhode Island. Mr. CHAFEE. Mr. President, is there would benefit substantially in an eco- Mr. CHAFEE. Mr. President, I want an amendment pending before this, the nomic way from the opportunities to to thank the Senator from Mississippi Exon amendment? for his very generous comments. I ap- The PRESIDING OFFICER. There grow and develop, providing jobs, pro- ducing economic activity and business preciate the kind words he had to say are two amendments pending at the about the work we have done. present time, the Smith amend- activity along the way. We hope that ment—— study can be successfully completed, I discovered that I have come to the Mr. CHAFEE. Is the Smith amend- and the feasibility of it established so conclusion after a while around here ment ready for consideration? that in a timely way we can see the ul- that there are a few bills that attract The PRESIDING OFFICER. It is. timate construction of that. more attention than highway bills. Ev- Mr. CHAFEE. All right. I urge its There are other parts of the bill in erybody shows up when there is a high- adoption. which we are interested as well. It was way bill. And I must say the Senators The PRESIDING OFFICER. If there brought to the attention of the man- have exhibited tremendous restraint. be no further debate, the question is on ager that there is some language that Maybe the restraint came about be- agreeing to the amendment. we would like to see included in a man- cause we did not adopt any. I do not

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00036 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8877 think there is a single demonstration impression that he was going to Mr. DOLE. Sure. project in this bill. I would not know. present the amendment, and unless he Mr. WARNER. There really is only Because if there was one, I would have is able to effect a resolution of the one amendment, and that is the one by one in there for Rhode Island. matter—I am prepared to accept the the two Senators from Alaska. I will go But the distinguished chairman of amendment from the Senator from back to them immediately to deter- the subcommittee has resisted any Alaska. I would have to allow the other mine what their desire is. such demonstration grants or specific side to speak for itself on this issue. Mr. DOLE. Mr. President, I suggest authorizations for projects within this Mr. CHAFEE. I wonder if we might the absence of a quorum. State or that State. And, so far, we are have a quorum? The PRESIDING OFFICER. The not through yet. We are not across the Mr. DOLE. Is it a managers’ amend- clerk will call the roll. finish line. But we have done pretty ment? I do not know which amend- The bill clerk proceeded to call the well so far. If the word should get out ments they are. I am serious. roll. that we did any, if we did, I am sure Mr. WARNER. There is a managers’ Mr. WARNER. Mr. President, I ask that we would have not four amend- amendment. unanimous consent that the order for ments left but 100. Mr. DOLE. Is that one of the four? the quorum call be rescinded. So, Mr. President, I hope we can con- Mr. WARNER. Yes. The PRESIDING OFFICER (Mr. GOR- tinue the restraint we have shown. I Mr. DOLE. An Exon amendment. TON). Without objection, it is so or- Mr. WARNER. Mr. President, that appreciate the wonderful support of the dered. amendment has been resolved, the Senator from Mississippi who has been PRIVATE PROPERTY RIGHTS Exon amendment. At this time, I ask long interested in these matters. Mr. GRAMS. Mr. President, I would unanimous consent that that amend- Mr. WARNER. Mr. President, I say to like to engage in a short colloquy with ment be deleted. our distinguished chairman of the com- The PRESIDING OFFICER. Without the Senator from Rhode Island, the dis- mittee, I wish to reiterate it has been objection, it is so ordered. tinguished chairman of the Environ- a bipartisan effort. There has been Mr. DOLE. So that would leave Ste- ment and Public Works Committee, complete cooperation. Many Senators vens-Murkowski. the manager of this bill. thinking this was an appropriate piece Mr. WARNER. That is correct. That Mr. President, I had intended to offer of legislation, as it has been in the past is one amendment. an amendment which would broaden for such projects, came up and, when Mr. DOLE. Chafee-Warner, a man- the definition of like-kind property we acquainted them with the policy de- agers’ amendment. That is the second that would allow affected landowners cision, they accepted it; indeed, in amendment. Are there two others? to defer the capital gains tax after the many respects endorsed it knowing Smith? forced sale of property which is taken that history shows that so many Mr. CHAFEE. That is resolved. There for use in various infrastructure projects of that type that were adopted are only two. projects. I simply do not believe it is by the Congress have gone back to the Mr. WARNER. Mr. President, there is fair to expect property owners who do States and have proven not to be in a remaining one from the Senator from not wish to sell their property to be terms of priorities what the States Maryland [Mr. SARBANES]. I have spo- unable to defer their capital gains tax really need. Now the States are given ken with him within the hour, and in- if they are not able to reinvest the greater discretion and the money with dicating—and I will take responsi- amount of the gain in an expanded which to exercise that discretion. bility—that I cannot accept the amend- like-kind property. It is my desire to I thank the distinguished chairman. ment. It relates to the Baltimore- work with you in your capacity as a Mr. CHAFEE. Mr. President, I want Washington Parkway. I am fearful it member of the Finance Committee to to echo what the Senator from Virginia would be construed by other Senators achieve a broader definition of like- said about the bipartisan effort, that as being in the nature of a—even kind property. the senior Senator from Montana has though it is authorized already— I have discussed this matter with the been tremendously helpful in this. It is project. And I felt that I could not ac- Finance Committee staff. However, I not easy. We all have friends that come cede to his request, regrettably. So would respectfully ask your assistance up and want to remind us of what we that amendment would not be accepted in ensuring that the Finance Com- want from their committee; and, two, on this side. mittee will examine this issue when it what a modest little item it is that Mr. DOLE. I certainly want to thank considers reconciliation this year. they are requesting. So far, so good. I the managers. I do not have any quar- If that is possible, I would be pleased hope we can continue in that regard. rel with the managers. But those who to withdraw my amendment from con- Mr. DOLE. Mr. President, I wonder if have amendments, you know—people sideration. the Senator from Rhode Island—I know are going to be wanting to get out of Mr. CHAFEE. I understand the prob- there are four amendments. Are they here for an August recess. They do not lem the Senator from Minnesota has going to be offered? Should we move on want to be here late at night. But they raised. I will ask the chairman of the to another bill and come back to this do not want to be here in the after- Finance Committee to examine this next week? We do not want to sit here noon. We cannot have it both ways. issue when the committee considers in a quorum call for a couple of hours Mr. CHAFEE. We would prefer not to reconciliation, and specifically to con- while Members are floating around the be here in the morning either. sider the problem highlighted by the Capitol. Mr. DOLE. They do not want to be Senator’s amendment. Mr. WARNER. If I could most re- here in the morning either. It is very Mr. WARNER. Mr. President, there is spectfully address our leader, I would difficult for the managers who are on the list of amendments an amend- urge that he give us a brief period of down to three amendments. They have ment by the Senator from Maryland time within which to urge the presen- been on this bill long enough—last [Mr. SARBANES]. That amendment, re- tation of these amendments. week, and 4 days this week. The bill grettably, cannot be accepted and, Mr. DOLE. Which four are they? was supposed to take 2 days. It has therefore, it will not be considered as a Maybe we can identify the players and taken almost 5. Because we want to go part of this bill. have them get over here. to securities litigation next, the only That leaves on the list the only Mr. WARNER. The principal amend- thing I know, without prejudicing the amendments being that of the Senators ment for which there could be some managers, if we cannot conclude it by from Alaska and the managers’ amend- concern is the amendment of the two 3:30, then we would move to another ment. I understand there is an amend- Senators from Alaska. Within the hour matter and this would come back ment by the Senator from Oklahoma I have consulted with them on it. sometime when we finished the next [Mr. NICKLES] that is still on the list, Frankly, they are questions in my bill. and I am not prepared to act on that judgment, and very legitimate ones. It Mr. WARNER. I would say to the dis- right now. is a problem involving State rights. It tinguished leader that the managers’ I ask my comanager if this is a time goes back many years in Alaska. I left amendment is prepared in the nature of and moment to go to the managers’ one of the two Senators with the clear a technical amendment. amendment.

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00037 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8878 CONGRESSIONAL RECORD — SENATE June 22, 1995 Mr. BAUCUS. Mr. President, if the erty or interest predates the involvement of (B) in item 29, by striking ‘‘intelligent/ve- Senator will yield, it is, I think, very a qualified organization described in sub- hicle highway systems’’ and inserting ‘‘intel- timely. I might say, I do not know paragraph (A) in the acquisition of the prop- ligent transportation systems’’. erty, the organization shall be considered to (2) Section 6009(a)(6) of the Intermodal Sur- what progress we are going to make, if be an acquiring agency or person as de- face Transportation Efficiency Act of 1991 any, on the Nickles amendment. This scribed in section 24.101(a)(2) of title 49, Code (Public Law 102–240; 105 Stat. 2176) is amend- side does not know what it is. I see the of Federal Regulations, for the purpose of ed by striking ‘‘intelligent vehicle highway Senator from Oklahoma on the floor the Uniform Relocation Assistance and Real systems’’ and inserting ‘‘intelligent trans- right now. Maybe he is in a position to Property Acquisition Policies Act of 1970 (42 portation systems’’. tell us. U.S.C. 4601 et seq.). (3) Part B of title VI of the Intermodal Mr. NICKLES. Mr. President, I will ‘‘(C) ACQUISITIONS ON BEHALF OF RECIPIENTS Surface Transportation Efficiency Act of OF FEDERAL FUNDS.—If a qualified organiza- 1991 (Public Law 102–240; 23 U.S.C. 307 note) is be happy to inform my colleagues. The tion described in subparagraph (A) has con- amended— essence of the amendment is to allow tracted with a State highway administration (A) by striking the part heading and in- States that do not have Amtrak serv- or other recipient of Federal funds to acquire serting the following: the real property or interest on behalf of the ice to use some of their mass transit ‘‘PART B—INTELLIGENT recipient, the organization shall be consid- moneys to subsidize Amtrak service. TRANSPORTATION SYSTEMS’’; ered to be an agent of the recipient for the Senator D’AMATO indicated some res- (B) in section 6051, by striking ‘‘Intelligent ervations about it. We are trying to purpose of the Uniform Relocation Assist- ance and Real Property Acquisition Policies Vehicle-Highway Systems’’ and inserting work with him. Hopefully, we will have Act of 1970 (42 U.S.C. 4601 et seq.).’’. ‘‘Intelligent Transportation Systems’’; (C) by striking ‘‘intelligent vehicle-high- that worked out in a few moments. On page 26, between lines 8 and 9, insert way systems’’ each place it appears and in- Mr. WARNER. So I understand, a few the following: serting ‘‘intelligent transportation sys- moments could be a few minutes? (3) ORANGE STREET BRIDGE, MISSOULA, MON- tems’’; TANA.—Notwithstanding section 149 of title Mr. NICKLES. That is correct. (D) in section 6054— 23, United States Code, or any other law, a AMENDMENT NO. 1465 (i) in subsection (a)(2)(A), by striking ‘‘in- project to construct new capacity for the Or- telligent vehicle-highway’’ and inserting (Purpose: To improve the bill) ange Street Bridge in Missoula, Montana, ‘‘intelligent transportation systems’’; and Mr. WARNER. Mr. President, I send shall be eligible for funding under the con- (ii) in the subsection heading of subsection gestion mitigation and air quality improve- to the desk now the managers’ amend- (b), by striking ‘‘INTELLIGENT VEHICLE-HIGH- ment program established under the section. ment on behalf of myself, Mr. CHAFEE WAY SYSTEMS’’ and inserting ‘‘INTELLIGENT On page 26, between lines 13 and 14, insert and the Senator from Montana, Mr. TRANSPORTATION SYSTEMS’’; the following: BAUCUS. (E) in the subsection heading of section (c) TRAFFIC MONITORING, MANAGEMENT, AND The PRESIDING OFFICER. The 6056(a), by striking ‘‘IVHS’’ and inserting CONTROL FACILITIES AND PROGRAMS.—The clerk will report. ‘‘ITS’’; first sentence of section 149(b) of title 23, (F) in the subsection heading of each of The bill clerk read as follows: United States Code, is amended— subsections (a) and (b) of section 6058, by The Senator from Virginia [Mr. WARNER], (1) in paragraph (2), by striking ‘‘or’’ at the striking ‘‘IVHS’’ and inserting ‘‘ITS’’; and for himself, Mr. CHAFEE and Mr. BAUCUS, pro- end; (G) in the paragraph heading of section poses an amendment numbered 1465. (2) in paragraph (3), by striking the period 6059(1), by striking ‘‘IVHS’’ and inserting at the end and inserting ‘‘; or’’; and ‘‘ITS’’. Mr. WARNER. Mr. President, I ask (3) by adding at the end the following: unanimous consent that the reading of (4) Section 310(c)(3) of the Department of ‘‘(4) to establish or operate a traffic moni- Transportation and Related Agencies Appro- the amendment be dispensed with. toring, management, and control facility or priations Act, 1995 (Public Law 103–331; 23 The PRESIDING OFFICER. Without program if the Secretary, after consultation U.S.C. 104 note), is amended by striking ‘‘in- objection, it is so ordered. with the Administrator of the Environ- telligent vehicle highway systems’’ and in- The amendment is as follows: mental Protection Agency, determines that serting ‘‘intelligent transportation sys- the facility or program is likely to con- On page 22, between lines 2 and 3, insert tems’’. tribute to the attainment of a national am- (5) Section 109(a) of the Hazardous Mate- the following: bient air quality standard.’’. rials Transportation Authorization Act of SEC. 1ll. APPLICABILITY OF CERTAIN RE- On page 30, strike line 14 and insert the fol- 1994 (Public Law 103–311; 23 U.S.C. 307 note) is QUIREMENTS TO THIRD PARTY lowing: amended— SELLERS. SEC. 119. INTELLIGENT TRANSPORTATION SYS- (A) by striking ‘‘Intelligent Vehicle-High- Section 133(d) of title 23, United States TEMS. way Systems’’ each place it appears and in- Code, is amended by adding at the end the On page 30, lines 15 and 16, strike ‘‘INTEL- serting ‘‘Intelligent Transportation Sys- following: LIGENT VEHICLE-HIGHWAY SYSTEMS’’ and in- tems’’; and ‘‘(5) APPLICABILITY OF CERTAIN REQUIRE- sert ‘‘INTELLIGENT TRANSPORTATION SYS- (B) by striking ‘‘intelligent vehicle-high- MENTS TO THIRD PARTY SELLERS.— TEMS’’. way system’’ and inserting ‘‘intelligent ‘‘(A) IN GENERAL.—Except as provided in On page 31, lines 1 and 2, strike ‘‘INTEL- transportation system’’. subparagraphs (B) and (C), in the case of a (6) Section 5316(d) of title 49, United States transportation enhancement activity funded LIGENT VEHICLE-HIGHWAY SYSTEMS’’ and in- sert ‘‘INTELLIGENT TRANSPORTATION SYS- Code, is amended— from the allocation required under para- (A) in the subsection heading, by striking graph (2), if real property or an interest in TEMS’’. ‘‘INTELLIGENT VEHICLE-HIGHWAY’’ and insert- real property is to be acquired from a quali- On page 31, lines 10 and 11, strike ‘‘intel- ing ‘‘INTELLIGENT TRANSPORTATION’’; and fied organization exclusively for conserva- ligent vehicle-highway systems’’ and insert (B) by striking ‘‘intelligent vehicle-high- tion purposes (as determined under section ‘‘intelligent transportation systems’’. way’’ each place it appears and inserting ‘‘in- 170(h) of the Internal Revenue Code of 1986), On page 31, between lines 20 and 21, insert telligent transportation’’ the organization shall be considered to be the following: On page 33, line 19, strike ‘‘intelligent vehi- the owner of the property for the purpose of (c) CONFORMING AMENDMENTS.— the Uniform Relocation Assistance and Real (1) The table in section 1107(b) of the Inter- cle-highway systems’’ and insert ‘‘intelligent Property Acquisition Policies Act of 1970 (42 modal Surface Transportation Efficiency Act transportation systems’’. U.S.C. 4601 et seq.). of 1991 (Public Law 102–240; 105 Stat. 2048) is On page 36, line 12, strike the quotation ‘‘(B) FEDERAL APPROVAL PRIOR TO INVOLVE- amended— marks and the following period. MENT OF QUALIFIED ORGANIZATION.—If Federal (A) in item 10, by striking ‘‘(IVHS)’’ and On page 36, between lines 12 and 13, insert approval of the acquisition of the real prop- inserting ‘‘(ITS)’’; and the following:

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00038 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8879 ‘‘(24) State Route 168 (South Battlefield I urge the adoption of the managers’ vestment. Recognizing that reality, Boulevard), Virginia, from the Great Bridge amendment. over 400 of our Nation’s leading econo- Bypass to the North Carolina State line.’’. The PRESIDING OFFICER. Is there mists have urged Government to in- On page 38, beginning on line 2, strike ‘‘and further debate on the managers’ crease public investment. They urged shall not’’ and all that follows through ‘‘pro- gram’’ on line 4. amendment? us to remember that public investment On page 40, strike lines 1 through 3. If not, the question is on agreeing to in our people and in our infrastructure On page 43, between lines 14 and 15, insert the amendment. is essential for economic growth. the following: The amendment (No. 1465) was agreed Clearly, the National Highway Sys- SEC. 1ll. REPORT ON ACCELERATED VEHICLE to. tem program was designed to be part of RETIREMENT PROGRAMS. Mr. WARNER. Mr. President, I move a comprehensive program of public in- Not later than 180 days after the date of to reconsider the vote by which the vestment. enactment of this Act, the Administrator of amendment was agreed to. However, as much as I support mov- the Environmental Protection Agency shall Mr. BAUCUS. I move to lay that mo- ing this legislation forward, I will vote transmit to Congress a report evaluating the tion on the table. against the NHS bill. effectiveness of all accelerated vehicle re- The motion to lay on the table was tirement programs described in section agreed to. Provisions in this bill are totally in- 108(f)(1)(A)(xvi) of the Clean Air Act (42 consistent with, and as a result radi- U.S.C. 7408(f)(1)(A)(xvi)) in existence on the Mr. WARNER. Mr. President, the two date of enactment of this Act. The report remaining amendments are being very cally undermine, the goal of increasing shall evaluate— actively worked on by their sponsors. investment and productivity. (1) the certainties of emissions reductions The managers hope to be able to report My concern here is that specific pro- gained from each program; to the Senate in a very brief period of visions, amendments to this bill, un- (2) the variability of emissions of retired time. dermine safety and will substantially vehicles; Mr. LAUTENBERG addressed the increase human and economic costs. (3) the reduction in the number of vehicle miles traveled by the vehicles retired as a re- Chair. While one amendment to the bill was sult of each program; The PRESIDING OFFICER. The Sen- excellent and requires States to insti- (4) the subsequent actions of vehicle own- ator from New Jersey. tute zero tolerance laws—that means ers participating in each program concerning Mr. LAUTENBERG. Mr. President, I almost no acceptance of any presence the purchase of a new or used vehicle or the rise to describe what I think is the re- of alcohol behind the wheel is accepted. use of such a vehicle; sult of the discussions that we have It is .02, very low, and that is the way (5) the length of the credit given to a pur- been having these past few days. chaser of a retired vehicle under each pro- it ought to be. That is very positive. It gram; First of all, let me say that I support is a proposal that I strongly supported, (6) equity impacts of the programs on the passage of legislation to designate the having been the author or father of the used car market for buyers and sellers; and National Highway System as directed 21-age drinking bill and seeing how suc- (7) such other factors as the Administrator by ISTEA, the Intermodal Surface cessful we were over the last 10 years. determines appropriate. Transportation Efficiency Act of 1991. I It was a very positive step. It will save On page 57, line 4, insert ‘‘and’’ at the end. was, in fact, an original cosponsor of lives and reduce expenditures. But in On page 57, line 8, strike ‘‘and’’ at the end. legislation in both the 103d and the On page 57, strike lines 9 through 11. total, as a result of this bill, more lives 104th Congresses to accomplish this will be lost than will be saved. Mr. WARNER. Mr. President, this task. This $6.5 billion bill authorizes Opponents of speed limits and motor- amendment makes technical changes critically needed funds, and I would cycle helmet laws—which passed this to S. 440 and minor modifications that like to consider just a few of the facts. body—argue that decisions in these have been cleared on both sides. Such Almost one-fourth of our highways areas should be the responsibility of modifications include, first, stream- are in poor or mediocre condition, the State. I could not agree more. I lining the enhancements program and while another 36 percent are rated in want to give some decisions to the the traffic monitoring program; sec- the fair category. One in five of the Na- States that would increase their flexi- ond, changing the name of ‘‘intelligent tion’s bridges is structurally defi- bility in using Federal transportation vehicle highway systems’’ to ‘‘intel- cient—20 percent—meaning that assistance. But I cannot buy into the ligent transportation systems’’; and, weight restrictions have been set to concept that removing speed limits, in- third, require a report on effectiveness limit truck traffic. creasing speeds across our Nation’s of accelerated retirement vehicle pro- On urban interstate highways, the highways and roads, is going to help grams, and other purposes. percentage of peak hour travel ap- anything except to create mayhem. The PRESIDING OFFICER. The Sen- proaching gridlock conditions in- More people will die and more expenses ator from Montana. creased from 55 percent in 1983 to 70 will be incurred. Mr. BAUCUS. Mr. President, this is percent in 1991, costing the economy basically, as most managers’ amend- $39 billion. The same thing is true with the hel- ments are, an amendment which con- Experts indicate that an additional met laws. To remove helmets is, in my tains minor modifications and tech- annual investment of $32 billion is view, positively ludicrous. I do not un- nical corrections. One I would like to needed to bring our highway and bridge derstand what it is that motivated this point out to the Senate is the change infrastructures up to date, and failure body to say take off your helmets, let in reference to the ‘‘intelligence vehi- to make those investments increases the wind blow in your hair, and God cle highway systems’’ to ‘‘intelligent the costs, both in the short and long help you if someone runs over you. I transportation systems.’’ term. supported the concept in ISTEA for The theory of the ISTEA legislation For example, failure to invest a dol- flexibility for States and, again, allow- that this is the heart of is that we are lar today in needed highway resur- ing the States to use NHS funding to trying to broaden the definition of facing can mean up to $4 in highway re- support intercity rail service. This is ‘‘transportation’’ to include intelligent construction costs 2 years from now. human rights, the right of the indi- functions; that is, more advanced tech- The ability of our country to sustain vidual to be safe. It is the right that all nologies in highway travel to include higher productivity is the key to eco- of us have not to have to spend money not only highways but other transpor- nomic growth and a higher standard of because people do foolish things in our tation modes. It, obviously, includes living. society. seaports and also intermodal connec- Higher productivity is, in part, a Mr. President, one-third of all traffic tors. function of the public and private in- accidents are caused by excessive

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00039 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8880 CONGRESSIONAL RECORD — SENATE June 22, 1995 speed. The National Highway Traffic measures to have people protect them- But, Mr. President, I am concerned. Safety Administration estimates that selves on our highways, they ought to While I applaud our inclusion of the total repeal of Federal speed limit re- pay for it when accidents and expenses zero alcohol tolerance, Mr. President, quirements will increase the number of are incurred. that noise does not disturb me. It is Americans killed on our Nation’s high- I want the Congress and the country good noise. It is the noise of settle- ways by about 4,750 persons per year. to understand what is at stake in that ment. I accept it and tolerate it. In addition, there will be substantial debate—4,900 lives, tens of thousands The PRESIDING OFFICER. We will, financial consequences associated with more injuries each year, hundreds of nonetheless, withhold so it will not a repeal. Death and injuries will in- millions of dollars in added health care interfere with the Senator giving his crease as a result of ending Federal costs and economic opportunities for- remarks. speed limit restrictions. But it is going gone. Mr. WARNER. Mr. President, if I to cost taxpayers $15 billion more each Very simply, this bill takes one step may continue, I would like to repeat year in lost productivity, taxes, and in- forward but three steps backward. myself. But I am concerned, Mr. Presi- creased health care costs. Mr. President, it pains me to say dent. I say that in all seriousness. This loss would be on top of the $24 that I am not going to support this While I applaud the Senate’s inclusion billion we already lose as a result of bill, because I believed for all of the of the ‘‘zero alcohol tolerance’’ for mi- motor vehicle accidents which are years that I have been in the Senate nors, I am concerned that the safety, caused by excessive speed. that we do not invest enough in our which I strongly support, of the public So, Mr. President, I want to restate highways, bridges, and our transpor- may be placed in jeopardy as a result of that this bill is a $6.5 billion invest- tation system, in transit and in inter- the amendments to this bill; namely, ment in our Nation’s infrastructure, city rail. So I hate to be one of the peo- the lifting of the Federal law on speed our highways. But, at the same time, ple who is going to say no to this bill. limits and opening the door for dual we have added an amendment that is But as the underlying legislation dic- speed limits on trucks and auto- going to cost us $15 billion more over tates, it says that we are going to take mobiles. the life of this bill than we are pres- more away than we give. States rights, a clarion call that I al- ently spending. The total investment It is painful to witness what has hap- most invariably support, prevailed for the whole bill is $6.5 billion. pened to what was a program intended throughout the debate on this bill. But Mr. President, the same argument to do our country some good. But when the wisdom of experience failed to pre- applies to the helmet provisions in the each of the interests raised their heads, vail. Experience has clearly dem- bill. More than 80 percent of all motor- we wound up taking care of a few at onstrated that uniform national speed cycle crashes result in injury or death the expense of the many, and that is, limits reduce the daily tragic losses of to the motorcyclist. Head injury is the unfortunately, what happened to the life and limb and economic resources on our highways. leading cause of death in motorcycle NHS bill which so many worked on so Likewise, experience has dem- crashes. Now, compared to a helmeted diligently for so many years. onstrated that different speed limits rider, an unhelmeted rider is 40 percent Mr. LAUTENBERG. I suggest the ab- for trucks and cars contribute to high- more likely to incur a fatal head injury sence of a quorum. way accidents. Our future, our fate now and 15 percent more likely to incur a The PRESIDING OFFICER. The rests with the State legislators, not clerk will call the roll. head injury when involved in a crash. the Federal Government. States rights The NHTSA estimates that the use of The bill clerk proceeded to call the now means States responsibilities, as helmets saved $5.9 billion between 1984 roll. well as the burdens now on the indi- and 1982. Now, repeal of mandatory hel- Mr. WARNER. Mr. President, I ask vidual States. Legislators of those unanimous consent that the order for met requirements will increase the States are now on the firing line. I urge the quorum call be rescinded. death rate projected for motorcycle them in the name of safety to hold the The PRESIDING OFFICER. Without riders by 391 persons per year and will line. Speed can be as intoxicating as al- objection, it is so ordered. increase the costs to society by $389 cohol. million each year. And all of us chip in Mr. WARNER. Mr. President, I am A future Congress, when ISTEA is re- to pay for those expenses. very optimistic that we will reach authorized in 1997, will closely examine The American public supports a within the next few minutes final pas- the results of our actions on this bill. I strong Federal role in transportation sage of this bill, and therefore I would would hate to see the Congress once safety initiatives because they under- like to give some closing remarks. again on a roller coaster, enacting and stand the benefit of mandatory helmet As we approach the end of our debate repealing and enacting and then repeal- and safety belt laws, mandatory 21 on the designation of the National ing these laws as the constant lobbying drinking age laws, and maximum speed Highway System, I am pleased to have between the Congress and the States limit laws. a bill that will keep America moving, drives these legislative initiatives. Unfortunately, the Senate has chosen moving ahead with progress. Mr. President, I would like to com- to ignore the majority will and the This is a big day. The National High- mend and thank the chairman of our public, and all of the empirical data on way System is intact and America will committee, Senator CHAFEE, as well as the value of transportation safety move forward with another very impor- the distinguished ranking member, measures. tant chapter. Senator BAUCUS. They are both splen- As a result, Mr. President, this bill Last year, the Senate, under the able did working partners, and Senator gives with one hand and takes away leadership of my colleague, Senator BAUCUS has helped immeasurably as a with the other. It authorizes $6.5 bil- BAUCUS, passed a clean bill, that is, a full partner and as a manager with this lion worth of spending in infrastruc- bill with no demonstration projects. Senator in seeing that this bill will be ture investment, while adding almost Today, and again this year, the Senate adopted. $15.5 billion in additional costs to our has spoken likewise—no projects. Let With their strong support, this bill society. our States direct their funding on their moved promptly through the com- My colleagues recognize this fact as own priorities, not those of the Con- mittee to the floor. Their cooperation evidenced by the rejection of the gress. and skill may soon help me to com- amendment by the Senator from Texas, Throughout these proceedings, my plete action on this bill. Senator HUTCHISON, which would have, own goal has been simple: To see that My colleagues on the Environment in effect, required States to directly this measure moved ahead in a timely and Public Works Committee have also absorb medical costs associated with manner to meet the deadline of Sep- my great respect and appreciation for motorcycle riders who were not wear- tember 30, 1995, to ensure the States their commitment and their hard ing helmets and were injured in an ac- would receive the $6.5 billion in Na- work. cident. tional Highway System and interstate I would also like to thank a very able She said, very simply—and I agreed maintenance funds that they deserve. professional staff for their efforts. with her and we got lots of votes—if a With our actions today, we are well From the beginning of our work to des- State does not want to take prudent ahead of schedule. ignate the National Highway System

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00040 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8881 there has been a great deal of coopera- spect to the Davis-Bacon provisions. As Mr. BAUCUS. Mr. President, I am tion on both sides of the aisle. So I you know, it emerged from the com- pleased today the Senate is finally thank Jean Lauver, Ann Loomis, Linda mittee with a revocation of the Davis- about to pass S. 440, the National High- Jordan, Larry Dwyer, Ellen Stein, Tom Bacon language as it pertained to high- way System Designation Act of 1995. I Sliter, Kathy Ruffalo, Alex Washburn, way construction. That was removed want to thank particularly the chair- and the one and only Steve Shimberg, on the floor of the Senate due to the man, Senator CHAFEE, for his out- staff director. presence of a filibuster on that item. I standing leadership, and also Senator Mr. President, the National Highway hope we will be able to deal with this WARNER, the chairman of the sub- System will, indeed, keep America Davis-Bacon situation in the future. committee, who has done an excellent moving toward our next generation of I deeply regret that this legislation, job shepherding this bill to this point. in my judgment, represents a giant transportation challenges. For these This is a critical bill for our States. step backward in a particular area; reasons, I support the bill and urge my Billions of dollars in highway funds are that is, highway safety. I am extremely colleagues to vote for passage of this at stake. We need to enact this bill, disappointed that the Senate made the important legislation. and I remind my colleagues, by Sep- decision to repeal the Federal speed Mr. CHAFEE addressed the Chair. tember 30; that is, passed by both limit as it pertains to automobiles. It The PRESIDING OFFICER. The Sen- Houses and signed into law. Otherwise, was maintained as to trucks. That was ator from Rhode Island. the State highway programs will be se- a half a victory. As to automobiles, it Mr. CHAFEE. Mr. President, I am riously disrupted. pleased the Senate is nearing comple- was not maintained. And as for the mo- tion of S. 440, the National Highway torcycle helmet requirements, they I hope the House will take this bill System Destination Act of 1995. And I were repealed. Again, it was half a vic- up soon so we can resolve our dif- want to thank all my colleagues for tory, if you would, or half a loss, in ferences and get a bill to the President their cooperation on this legislation. that of the two items, seatbelts and by that deadline. The passage of this legislation brings motorcycle helmets, the seatbelts were The National Highway System is the us a big step closer to the deadline we retained and the motorcycle helmet backbone of our transportation system must meet of September 30, if we are to provision was repealed. today and the framework for its receive a very substantial distribution I think that is a bad decision and will growth in the 21st century. The NHS is of some $6.5 billion—that is ‘‘b’’ for result in extremely unfortunate con- designed to have a seamless transpor- ‘‘billion’’—of needed highway funds. sequences. I believe lives will be lost tation network of roads that link all And I want to commend the manager that could have been preserved other- modes of transportation between air- of the bill, the chairman of the Trans- wise. I believe there will be more seri- ports, seaports, and rail yards with our portation and Infrastructure Sub- ous injuries that could have been population and economic centers. It committee, Senator WARNER, for the avoided. And I believe the cost to Fed- will make our businesses more com- wonderful job that he has done during eral and State governments will go up. petitive in our global economy. And by the consideration of this legislation. But that is life. We had a long debate choosing the most important roads, it He worked diligently to develop it and on it. There is no question that the will will help States to determine the most to secure the committee’s approval by of the Senate was expressed. Nothing appropriate transportation invest- a vote of 15–1. went through in the dark of night on ments. that one. Everybody knew the issues I also want to thank Senator BAUCUS That is particularly true in the rural and a vote was held. The vote was very, as a member of the Environment and West, like Montana, where highways very clear to repeal the helmet provi- Public Works Committee, who is also are often the only mode of transpor- ranking member of this subcommittee, sion. I want to take this opportunity to tation. Whether it is in the trans- for the excellent work that he has done porting of goods and services, traveling on this bill. He has been very coopera- thank the Secretary of Transportation, Mr. Pen˜ a, and Mr. Rodney Slater, the for family vacations, business, or tak- tive in moving it forward. In fact, he Administrator of the Federal Highway ing our kids to college, our highways provided the leadership in beginning System. They did a splendid job in always play a vital role in our lives and this process, as mentioned by Senator working with the States to develop our jobs. We do not have the mass tran- WARNER, in that Senator BAUCUS last this whole system. The system was sit or water transportation systems year brought this legislation to the adopted by the Senate as was proposed, like other States have. So highways floor of the Senate. It passed, but un- as it came up to us. That is a testi- are critical to the lifeblood of our fortunately we were unable to reach an mony to the effective job that was done State’s economy, which increasingly agreement with the House before Con- by the States and the Federal officials, depends on travel and tourism, and it gress adjourned. particularly Mr. Slater, who has been is our way of life. So I am pleased the Senate has ap- very helpful to us not only during the The bill includes nearly 4,000 miles of proved the National Highway System designation of the National Highway roads in Montana. That is 23 percent or as the Secretary of Transportation and System, but in the consideration of about 800 miles more than the Bush ad- the local and State officials presented this measure on the floor, and his Dep- ministration’s original proposal. The it to us. I think this underlines the fact uty Administrator, Jane Garvey, and additional routes include Highway 200 that the process to designate this sys- their staff. The staff they have was between Great Falls and Missoula, and tem has worked well and resulted in a working with us over the past several from Lewistown going west to Winnett, high degree of consensus among Fed- days. Jordan, Circle, Sidney, and Fairview. eral and State and local officials. Finally, I want to join in thanks to Highway 12 from Helena to Garrison Under this bill the cooperative proc- the staff who worked on this legisla- Junction; Highway 59 from Miles City ess will continue. State and local offi- tion. On our side, Steve Shimberg, to Broadus; Highway 87 between Bil- cials, with the Secretary of Transpor- Jean Lauver, Ann Loomis, Linda Jor- lings, Roundup, and Grassrange; and tation’s approval, will have the ability dan, and Larry Dwyer. And for the Highway 212 from Crow Agency to to continue to make changes in the Na- Democratic side, Tom Sliter, Kathy Lame Deer and Alzada. tional Highway System as long as the Ruffalo, and Alice Washburn. All have That is good news for Montana. And total mileage of 165,000 miles is not ex- been absolutely splendid. There is no the other roads in the bill mean just as ceeded. This is a dynamic entity with question we rely to a great degree on much for the entire region across the which we are involved. them, because we have confidence in Great Plains and down the Rocky This legislation preserves the impor- them built up over the years. tant principles that the Intermodal So I want to thank the Chair and Mountains. All these roads are in- Surface Transportation Efficiency Act thank all my colleagues for their as- cluded in the bill the Senate is consid- of 1991, the so-called ISTEA legislation, sistance in this measure. ering today. put in place, emphasizing flexibility. I Mr. BAUCUS addressed the Chair. Mr. President, this bill also makes regret that we were not able to provide The PRESIDING OFFICER. The Sen- major reforms by lessening the regu- the States more flexibility with re- ator from Montana. latory burdens on our States, giving

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00041 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8882 CONGRESSIONAL RECORD — SENATE June 22, 1995 them more flexibility. It allows States SEC. 1 . INTERCITY RAIL INFRASTRUCTURE IN- Mr. WARNER. Mr. President, many to set their own speed limits for pas- VESTMENT FROM MASS TRANSIT AC- commendations have been paid to the COUNT OF HIGHWAY TRUST FUND. senger cars and also repeals Federal Section 5323 of title 49, United States Code, managers of the bill. I also would like mandates on motorcycle helmets, man- is amended by adding at the end the fol- to pay a commendation to the distin- agement systems, use of the metrics on lowing new subsection: guished majority leader and the Demo- highway signs, and crumb rubber. ‘‘(m) INTERCITY RAIL INFRASTRUCTURE IN- cratic leader who have given us full, These are all good changes. VESTMENT.—Any assistance provided to a complete support and, indeed, has As I said before, this bill is not only State that does not have Amtrak service as shown great patience and indulgence in of date of enactment of this Act from the in our State’s interest, but in our na- the last hour and a half as we bring Mass Transit Account of the Highway Trust this matter to a close. tional interest. It means jobs; it means Fund may be used for capital improvements growth. So I congratulate the chair- to, and operating support for, intercity pas- Mr. President, there is one remaining men of our committee and sub- senger rail service.’’. matter. committee for their leadership, for I yield the floor. Mr. NICKLES. Mr. President, one, I Mr. STEVENS addressed the Chair. their diligence, and for their extreme wish to thank my colleagues, Senator The PRESIDING OFFICER. The Sen- patience in managing this bill. And I WARNER and Senator BAUCUS, as well ator from Alaska. particularly want to thank the staffs as Senator D’AMATO and Senator SAR- Mr. STEVENS. Mr. President, I join on both sides, particularly on the mi- BANES, for their supporting this amend- in saying we are happy the highway nority side, Tom Sliter and Kathy ment and cooperating with us in the bill is being passed. As one who has a Ruffalo, who have done a wonderful drafting of this amendment. very pressing problem, I know this bill job; and on the majority side, Jean This amendment, basically, would presents an opportunity to raise an Lauver and Ann Loomis, who have allow States to use their mass transit issue and have it decided by the Con- done an equally good job. funds to subsidize Amtrak. Many gress and have it to the President next Particularly at this point, Mr. Presi- States, as you know, have had reduc- week. I see nothing wrong with that. dent, I want to thank the Federal tions in Amtrak. There happen to be 3 That is part of the history of the Sen- Highway Administrator, Rodney States in the lower 48 that do not have ate. In a few minutes, we may work out Slater. He has been here. He has been Amtrak. We have narrowed this a situation—or we will postpone the de- in the wings helping advise us. There amendment to apply to those three cision—but we cannot work it out now were technical problems we had as States that do not have Amtrak where and, as far as I am concerned, we will amendments came up. Jane Garvey, they could use mass transit funds to stay on this bill until we can get a de- who is the Deputy Administrator, has subsidize Amtrak acquisition. cision from the Senate as to whether been just very valuable, along with I am pleased this amendment is sup- we are right about this issue. other FHA staff, and I must say that ported. This will help us in our State So let me respond to my friend from were it not for their expertise, this leg- to regain Amtrak. We are the only Rhode Island—and he is my friend— islation would be in pretty rough State in the Nation that has had Am- Senator CHAFEE and I stood behind one shape. Again, I thank all concerned, trak and lost it. It will allow us to use another in the line going into law and again particularly the chairman, mass transit—we only receive $3 mil- school more than 50 years ago, Mr. and the subcommittee chairman, Sen- lion now, we contribute $30 million but President, so we know each other very ator WARNER. They have done a great only get $3 million back—this will well. job. allow us to use part of that money to We do have some differences. I have Mr. WARNER. Mr. President, I thank subsidize Amtrak and bring about the heard my friend talk about the fact my colleague for his kind remarks. I day when we have restoration of Am- that there is a limit of 165,000 miles in join him in acknowledging the posi- trak in my State. the Interstate Highway System. How tive, constructive contribution of the I wish to compliment my colleagues would you like to be from a State one- Administrator of the Federal Highway for management of this bill. They have fifth the size of the United States and Administration. Indeed, he has been shown great patience and forbearance. have a thousand of those miles, Mr. here keeping watch, and any Senator A lot had different ideas. President, and have the post office could speak with him at any time. He I introduced legislation some time keep telling you, ‘‘You have to find has done an excellent job, a very, very ago to allow the States to set speed some way to deliver the mail up here, commendable job for this Nation. limits, thereby repealing the Federal we can’t pay the subsidy for flying I see the distinguished Senator from national speed limit. That was adopted mail?’’ Then you find that Federal Oklahoma. I yield the floor. by this body. I think it is a giant step agencies are denying you the right to in the right direction. I am pleased it is use rights-of-way across Federal lands Mr. NICKLES addressed the Chair. part of this package. I look forward to that were developed by the miners in The PRESIDING OFFICER. The Sen- the final action and completion of this 1866 and have been used since that ator from Oklahoma. bill. time. AMENDMENT NO. 1466 Mr. BAUCUS. Mr. President, the sub- What happened? In 1976, we decided (Purpose: To permit States to use assistance stance of this amendment is, frankly, that we would repeal revised statute provided under the mass transit account of not within the jurisdiction of this com- 2477, which provided every State in the the highway trust fund for capital im- mittee. Rather, it is in the jurisdiction West the right to use established, pub- provements to, and operating support for, of the Banking Committee. I have been lic rights-of-way across Federal lands intercity passenger rail service) in contact with Senator SARBANES, who as continued rights-of-way for use by Mr. NICKLES. Mr. President, I send is the ranking member of the Banking the public. They became the basis for an amendment to the desk and ask for Committee. I have been assured he the State highways, the Federal high- its immediate consideration. agrees with this amendment and has no ways and the interstate highways in The PRESIDING OFFICER (Mr. problem with it. what we call the south 48. ABRAHAM). The clerk will report. Mr. WARNER. Mr. President, I urge Has that happened in Alaska? No. The legislative clerk read as follows: the adoption of the amendment. Why? Because of arrogant bureaucrats. The Senator from Oklahoma [Mr. NICKLES] The PRESIDING OFFICER. Without In 1976, we passed a law which abso- proposes an amendment numbered 1466. objection, the amendment is agreed to. lutely stated, without any question, So the amendment (No. 1466) was that the action of Congress in repeal- Mr. NICKLES. Mr. President, I ask agreed to. ing the revised statute 2477 would not unanimous consent that the reading of Mr. NICKLES. Mr. President, I move affect our rights-of-way that had been the amendment be dispensed with. to reconsider the vote by which the established prior to 1976. That law said The PRESIDING OFFICER. Without amendment was agreed to. in section 701(a), which was signed on objection, it is so ordered. Mr. WARNER. I move to lay that mo- October 21, 1976: The amendment is as follows: tion on the table. Nothing in this act or in any amendment At the appropriate place in title I, insert The motion to lay on the table was made by this act shall be construed as termi- the following: agreed to. nating any valid lease, permit, patent, right-

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00042 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8883 of-way or other land use right or authoriza- rights. It is the incessant determina- take much time to learn some of the tion existing on the date of approval of this tion of people downtown to try to re- problems that exist there. Our problem act. verse a decision that the Congress is transportation, transportation, We interpreted that in past Con- made in 1958 when it allowed Alaska to transportation. We have to have access gresses and past administrations have become a State. If we are a State, we to our lands. interpreted that to mean that the should have the same rights as the There is one other item I will men- rights-of-way that were established other States did under this statute, and tion to the Senate. When we were seek- pursuant to State law before 1976 were in 1976 we preserved that. I helped work ing statehood, we first sought 30, 40 valid, if the State determined they on that section. We wanted to make million acres of land. Congress at that were valid. sure we had the rights that were there. As a matter of fact, there have been We knew we were not going to estab- time kept saying: But you cannot sur- specific holdings by the Federal courts lish any new rights across Federal vive as a State unless you have more of appeals, particularly the Ninth Cir- lands after that time, but certainly the land. You have to have a land base in cuit Court of Appeals, that those rights we had established prior to that order to survive. So we ended up by rights-of-way were to be established time were valid pursuant to State law, getting the right to use 103.5 million and determined on the basis of State and there is no question that they con- acres of Federal lands as State lands. law. tinue to be the basic right for the ex- Mr. President, having received the Now the Department of the Interior pansion of the highway system in Alas- right to select 103.5 million acres of the says, ‘‘Oh, wait a minute now, we have ka and other western States. Federal domain in Alaska, we pro- established since 1976 a whole series of Someone said to me once, ‘‘Why do ceeded to do that. Our rights pertain to wilderness areas, and in those wilder- you worry about that? Is there that Federal lands that were vacant, unre- ness areas are some of these rights-of- much Federal land out there?’’ I just served, and unappropriated as of 1959. A way which, in fact, access privately wish more people would come up and held lands, Native-held lands, and subsequent Congress decided that there see the amount of Federal land we have ought to be a limitation on our rights. State-held lands in our State. Other in Alaska. You cannot get anywhere in States have similar problems. So we had a process which lasted about Alaska without crossing Federal land. 7 years and led to the enactment of a I want to point out, Utah has the The Federal Government controls ac- law in 1980, the Alaska National Inter- greatest problem of all the Western cess to almost every piece of land that est Land Claims Act, which withdrew a States as far as the Bureau of Land is in private, State, or Native owner- substantial amount of lands that were Management is concerned. The last ship in Alaska. schedule I saw showed they had 3,815 Now, I do believe that there is no vacant, unappropriated, and unreserved claims pending to be validated. Vali- question about it that there are a lot of in 1959. In effect, they took away from dated by whom? There is no adminis- forces out there which, if they had us the right to select a portion of the trative process required to validate their way now, would reverse state- lands that we originally had the right these claims. Now the Department of hood. They would take away from us to consider in exercising rights under the Interior says they are going to de- the right to be a State. Not having that the Statehood Act. Similarly, the Alas- termine whether these rights-of-way ability, what they do is take away ka Natives received some 40-plus mil- are valid. This is not what we said in from us the right to have the same ac- lion acres in settlement of their his- 1976. If they were valid in 1976 under cess to our land mass that other States toric claims against the United States, State law, they were to be valid for- in the lower 48 have had. and some of those lands were to be ever. The Interior Department has now taken from vacant unappropriated, un- The language was very simple—very come up with some very narrow terms reserved lands. And they also were simple. Congress said in 1866: to define ‘‘highways’’ for the purpose of faced with the prospect of having to se- The right-of-way for the construction of revised statute 2477. That is none of lect lands that were not reserved, be- highways over public lands not reserved for their business. Our rights existed in cause the Congress had reserved lands. public uses is hereby granted. 1976 or they do not exist at all today. We ended up by selecting lands that That became revised statute 2477. It But if they existed in 1976, no Sec- was part of the original highway act of were less valuable, did not contain retary of the Interior is going to tell minerals, and were not timbered. Most the United States. The managers of the me what those rights were or what bill are saying, ‘‘What are you doing of the valuable lands of Alaska was set they are going to allow us to claim aside and not available to either the out on the floor raising this now?’’ This today. We had the right in 1976 and he State or the Natives, as originally in- is part of the highway system. The has no business being involved in this. highway system in the western United I know that there are very powerful tended. That is going to lead, in my States came into being because of re- groups in this country that would like opinion, to a historic lawsuit by my vised statute 2477. And now in my to find ways to invalidate those claims. State against the Federal Government. State, unfortunately in other States And in the past these groups have I am informed we must complete our now, the Department of the Interior taken the claims to court. These land selections before we can bring has decided it is going to determine groups have lost, because a right estab- that case. But I do think it is a valid what is valid, and why? Because it has lished prior to 1976 for public access case against the United States. And made reservations of lands since 1976 across Federal lands continues to be the perpetrators of the wrong were that it says have validity and have our right. right here on the floor of the Senate. prior rights over the rights established Alaska law defines highways in terms Some of them continue to be here, Mr. by the people of those States over Fed- of roads, streets, trails, walkways, President. Some Members of the Sen- eral lands before that date. bridges, tunnels, drainage structures, ate continue to try to deny Alaska ac- This to me is not a simple issue. My ferry systems, and other related facili- cess to the lands that Congress gave us distinguished friend, Senator MUR- ties. Obviously, nobody is going to get a right to when we became a State, in KOWSKI, the other Senator from Alaska, in our way on ferry systems. We have order to try and support the new State. is here and he knows just how impor- the right to navigable waters. Now, we come down to 1976 when we Protection of the RS 2477 grant of tant this is. It is a matter that we both decided to repeal revised statute 2477. right-of-way is essential to the preser- have tried to figure out what to do Mr. President, without that law, the vation of statehood for my State. And with. West would never have been settled. We have no way to have construction it is one of the reasons that I come to Without that law, we would not have of the highways proceed that we get this floor at times just a little bit ex- the Interstate Highway System. With- money for under this bill if the Depart- cited, because I do not believe many ment of the Interior is to tell us that people take much time to learn much out that law, we would not really have the rights-of-way we are going to use about our State. You crisscross the the unity we have as a nation. now are subject to their interpretation continental United States, but not Now, it is sad, in my opinion, to see of whether they are valid or not. many of you even come to our State. this penchant of some members of our To me it is a simple matter of States When you do, we welcome you, we are society to deny our new State the same rights. But it goes beyond States pleased to have you. But you do not rights, to say that we have no right to

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00043 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8884 CONGRESSIONAL RECORD — SENATE June 22, 1995 establish a network of highways in our Mr. DOLE. Then it has to be reviewed But I obviously want to check with State. As I said, we have one major by the Senator from Utah. Senator HATCH before I give a final highway in our State. It is the system Mr. BAUCUS. If we could just with- signoff on this issue. that connects Alaska to Canada. It hold for a few more minutes? Maybe Mr. STEVENS. Mr. President, does goes from Seward, AK, up to Fair- the other Senator from Alaska could the leader still have the floor? banks, and out to the border. speak for just a few more minutes. We The PRESIDING OFFICER. The lead- I see the leader here. I will yield. are just that close to getting this thing er has the floor. Mr. DOLE. I wonder if we can move wrapped up. I would want to do it now Mr. DOLE. I think from what I see on to the next bill and not, in any way, rather than later. developing here, it is just going to take undercut any of the rights of any of the Mr. DOLE. We were going to move on a little time. I think it can be worked Senators. As soon as you get the lan- to something else at 3:30. Now it is 4:30. out. But if we need to contact the sen- guage and agreement, we can come I would like to finish the bill. I know ior Senator from Utah, Senator HATCH, back to this bill. In the meantime, let the managers would. They have done and the Senator from Arkansas, Sen- us go ahead and start the other bill, an excellent job. I certainly want to ac- ator BUMPERS, I know that is not going the securities litigation bill. And then, commodate the Senators from Alaska. to happen in 2 minutes or 5 minutes or hopefully, you will have the language. I understood the Senator from Arkan- 30 minutes. In the meantime, we could The first vote would be on this, back- sas, Senator BUMPERS, thought he had be started on the litigation bill. Then, to-back with final passage of this bill, a satisfactory resolution. as soon as you get the agreement, we plus the amendment on litigation. Mr. BAUCUS. Mr. President, if the can come back to this bill, wrap it up, Mr. STEVENS. I might say to my Senator will again yield, it is my un- and have a vote on final passage. friend, we had an agreement last night derstanding Senator BUMPERS has not Mr. STEVENS. The question is, if we that I would have the opportunity to yet personally seen the language and do not get the agreement, do we have offer an amendment to this bill. Now he does want to see it. the understanding this will come back there has been a suggestion that we Mr. DOLE. That could take a while and be the regular order after we finish have an amendment that is being re- and we could be halfway down the trail the securities bill? viewed by the Senator from Arkansas, on the litigation bill. As soon as it is Mr. DOLE. That is right. as I understand it. That would delay worked out, we will come right back Mr. STEVENS. I would have no ob- the urgency of this amendment of and finish it. I am not going to lay it jection to that proceeding. mine. I am happy to agree to cooperate aside for a day or even an hour. We will Mr. MURKOWSKI. Then, if I could with our leader at any time. I would come back, finish it, get the yeas and ask the leader again, roughly, he an- not want to see us be put in the posi- nays on final passage and have that ticipates being back on the securities tion that we are limited as to what we vote occur along with the first vote on bill on Monday? might do when we get back on this bill. any amendment on the litigation bill. Mr. DOLE. Yes. We hope to finish the Mr. DOLE. I assume, in talking with Is that right? bill tomorrow night. If not, we will be Senator BUMPERS, it is something ev- Mr. BAUCUS. Fine. on it Monday. But we could finish this erybody can agree on. You can offer Mr. MURKOWSKI. Mr. President, I bill, the present bill, before then, in the amendment when we bring the bill wonder if I could inquire of the man- particular if we get an agreement. up. If it is not satisfactory, you can do ager and the leader, if, indeed, it is set Mr. MURKOWSKI. Mr. President, if what you want. In the meantime, we aside and not taken up for a time, if the leader gets an agreement, then it is can go ahead with the litigation bill. Senator STEVENS and I may have a my understanding that he will poten- When you have it worked out—— time to be recognized at that time cer- tially come back to this bill, the high- Mr. STEVENS. There may be more tain, right after the leader calls up the way bill, at which time we would be amendments before we are through. bill? I wonder if the leader could indi- recognized and pursue our amendments Mr. DOLE. Well, amendment or cate when he intends to do that? with no time limitation and try to re- amendments. Mr. DOLE. I think what we would do solve the differences that we currently Mr. STEVENS. Under the cir- is make certain you have agreed or dis- have been unable to clear. Then there cumstances, I am happy to continue agreed on whatever has been offered. would be final passage. Is that correct? my comments at a later time, if the Both Alaska Senators are on the floor, Mr. DOLE. But if you can reach leader wishes to go on the other bill at obviously, and the Senator from agreement with all parties and it can this time. Utah—— be done very quickly, we will do it at Mr. BAUCUS. Mr. President, if the Mr. STEVENS. If I may interrupt, any time you get the agreement, like majority leader will yield, it is my un- the Senator from Utah has as great a 30 minutes from now or an hour from derstanding that the amendment has stake or greater in the immediate out- now or 2 hours from now. been agreed to. come. We have been willing to clear Mr. MURKOWSKI. Mr. President, we Mr. STEVENS. That was this Sen- this with them, but we have not been should know very soon. ator’s understanding, too, but that is able to get an agreed version yet on Mr. DOLE. Right. That is what they not the case. this tentative moratorium. told me at 3:30. Let me get the consent. Mr. MURKOWSKI. Mr. President, we Will the leader yield to the Senator There will be one additional amend- are currently waiting to hear from from Utah so he might get involved in ment here and then we will go on. Senator BUMPERS with regard to the this, Mr. Leader? Let me ask unanimous consent that pending agreement. I assume that he Mr. DOLE. Yes. the Senate, after adoption of the man- will be forthcoming. Mr. BENNETT. I have just had a agers’ amendment, turn to the consid- Mr. STEVENS. If my colleague will quick opportunity to review this. eration of Calendar 128, S. 240, the se- yield, we have not been able to check Clearly I will want to talk to my senior curities litigation bill, and that no call that out with the Senator from Utah colleague, Senator HATCH. But my first for the regular order bring back S. 440 because we have not seen the final reaction to this is that this would be except one call by the majority leader version that is agreeable to Senator agreeable. It would delay the imple- after consultation with the Democratic BUMPERS yet. mentation, as I understand it, of the leader. The leader is right. There is nothing present rules until December and give The PRESIDING OFFICER. Without we can move ahead on now. That is us that much more time to try to work objection, it is so ordered. why this Senator is venting a little air, things out with the Department of the Mr. DOLE. I further ask, when the to try to make people understand why Interior. Senate resumes S. 440, the only amend- we feel so strongly about this amend- Our Governor made it clear to Sec- ments remaining in order to the com- ment. retary Babbitt that the proposals, as mittee substitute be the following: Mr. BAUCUS. I wonder, Mr. Presi- they currently stand, are not accept- They are going to offer the managers’ dent, if the majority leader will yield, able and cannot be fixed. We have to amendment, and then the only fol- if we can wait maybe 1 minute here. start completely from scratch. So that lowing amendment would be the Ste- There is a possibility we can get this is the position we have taken and I vens-Murkowski amendment or amend- cleared right now. take on behalf of the Governor. ments. And that would also include the

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00044 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8885 Senators from Utah, Senator BENNETT I would like to take this opportunity (b) ATTORNEY CONFLICT OF INTEREST.— and Senator HATCH. to introduce to my distinguished col- (1) SECURITIES ACT OF 1933.—Section 20 of the Mr. WARNER. Mr. President, reserv- leagues four Members of the Chilean Securities Act of 1933 (15 U.S.C. 77t) is amended ing the right to object, I shall not. We Senate. With us today are Senator by adding at the end the following new sub- section: also have an understanding that the Arturo Allessandri, Senator Sebastian ‘‘(f) ATTORNEY CONFLICT OF INTEREST.—In closing statements of the managers ap- Pinera, Senator Hernan Larrain, and any private action arising under this title, if a pear in the RECORD as the last. Senator Jaime Gazmuri. plaintiff is represented by an attorney who di- Mr. DOLE. I did get consent you We are pleased to welcome four of rectly owns or otherwise has a beneficial inter- could offer the managers’ amendment our colleagues from Chile to the U.S. est in the securities that are the subject of the right now. Senate. We are delighted you are here litigation, the court shall make a determination The PRESIDING OFFICER. Without on an important visit to our country. of whether such ownership or other interest objection, it is so ordered. [Applause] constitutes a conflict of interest sufficient to dis- qualify the attorney from representing the AMENDMENT NO. 1464, AS MODIFIED f party.’’. Mr. WARNER. Mr. President, I send PRIVATE SECURITIES LITIGATION (2) SECURITIES EXCHANGE ACT OF 1934.—Section to the desk a technical amendment to REFORM ACT 21 of the Securities Exchange Act of 1934 (15 be added to the managers’ amendment. U.S.C. 78u) is amended by adding at the end the Mr. STEVENS. Has the agreement The PRESIDING OFFICER. The following new subsection: been entered into? clerk will report. ‘‘(i) ATTORNEY CONFLICT OF INTEREST.—In The PRESIDING OFFICER. Yes, it The legislative clerk read as follows: any private action arising under this title, if a has. Without objection, the agreement A bill (S. 240) to amend the Securities Ex- plaintiff is represented by an attorney who di- is entered into. change Act of 1934 to establish a filing dead- rectly owns or otherwise has a beneficial inter- est in the securities that are the subject of the Mr. WARNER. Mr. President, this is line and to provide certain safeguards to en- sure that the interests of investors are well litigation, the court shall make a determination a technical amendment which includes of whether such ownership or other interest the State of Maine as covered by the protected under the implied private action provisions of the Act. constitutes a conflict of interest sufficient to dis- amendment of the Senator from New qualify the attorney from representing the Hampshire. The PRESIDING OFFICER. Is there party.’’. I ask that it be accepted. It is to a objection to the immediate consider- (c) PROHIBITION OF ATTORNEYS’ FEES PAID previously agreed to amendment. ation of the bill? FROM COMMISSION DISGORGEMENT FUNDS.— The PRESIDING OFFICER. Without There being no objection, the Senate (1) SECURITIES ACT OF 1933.—Section 20 of the objection, amendment No. 1464 is modi- proceeded to consider the bill, which Securities Act of 1933 (15 U.S.C. 77t) is amended had been reported from the Committee by adding at the end the following new sub- fied and is agreed to in that form. section: The amendment (No. 1464), as modi- on Banking, Housing, and Urban Af- fairs, with an amendment to strike out ‘‘(g) PROHIBITION OF ATTORNEYS’ FEES PAID fied, was agreed to, as follows: FROM COMMISSION DISGORGEMENT FUNDS.—Ex- At the appropriate place in the bill add the all after the enacting clause and insert- cept as otherwise ordered by the court upon mo- following new section: ing in lieu thereof the following: tion by the Commission, or, in the case of an ad- SEC. . SECTION 1. SHORT TITLE; TABLE OF CONTENTS. ministrative action, as otherwise ordered by the The State of New Hampshire and the State (a) SHORT TITLE.—This Act may be cited as Commission, funds disgorged as the result of an of Maine shall be deemed as having met the the ‘‘Private Securities Litigation Reform Act of action brought by the Commission in Federal safety belt use law requirements of section 1995’’. court, or as a result of any Commission adminis- 153 of title 23 of the U.S. Code, upon certifi- (b) TABLE OF CONTENTS.—The table of con- trative action, shall not be distributed as pay- cation by the Secretary of Transportation tents for this Act is as follows: ment for attorneys’ fees or expenses incurred by that the State has achieved— Sec. 1. Short title; table of contents. private parties seeking distribution of the dis- (a) a safety belt use rate in each of fiscal TITLE I—REDUCTION OF ABUSIVE gorged funds.’’. years ending September 30, 1995 and Sep- LITIGATION (2) SECURITIES EXCHANGE ACT OF 1934.—Section tember 30, 1996, of not less than 50 percent; 21(d) of the Securities Exchange Act of 1934 (15 Sec. 101. Elimination of certain abusive prac- and U.S.C. 78u(d)) is amended by adding at the end (b) a safety belt use rate in each suc- tices. Sec. 102. Securities class action reform. the following new paragraph: ceeding fiscal year thereafter of not less ‘‘(4) PROHIBITION OF ATTORNEYS’ FEES PAID than the national average safety belt use Sec. 103. Sanctions for abusive litigation. Sec. 104. Requirements for securities fraud ac- FROM COMMISSION DISGORGEMENT FUNDS.—Ex- rate, as determined by the Secretary of cept as otherwise ordered by the court upon mo- Transportation. tions. Sec. 105. Safe harbor for forward-looking state- tion by the Commission, or, in the case of an ad- Mr. WARNER. Mr. President, I move ments. ministrative action, as otherwise ordered by the to reconsider the vote. Sec. 106. Written interrogatories. Commission, funds disgorged as the result of an Mr. CHAFEE. I move to lay that mo- Sec. 107. Amendment to Racketeer Influenced action brought by the Commission in Federal tion on the table. and Corrupt Organizations Act. court, or as a result of any Commission adminis- The motion to lay on the table was Sec. 108. Authority of Commission to prosecute trative action, shall not be distributed as pay- ment for attorneys’ fees or expenses incurred by agreed to. aiding and abetting. Sec. 109. Loss causation. private parties seeking distribution of the dis- f Sec. 110. Applicability. gorged funds.’’. VISIT TO THE SENATE BY MEM- TITLE II—REDUCTION OF COERCIVE SEC. 102. SECURITIES CLASS ACTION REFORM. BERS OF THE CHILEAN SENATE SETTLEMENTS (a) RECOVERY RULES.— (1) SECURITIES ACT OF 1933.—Section 20 of the Mr. DODD. Mr. President, I wanted Sec. 201. Limitation on damages. Sec. 202. Proportionate liability. Securities Act of 1933 (15 U.S.C. 77t) is amended to take a moment, if I could, to say Sec. 203. Applicability. by adding at the end the following new sub- section: that we just had a very wonderful op- TITLE III—AUDITOR DISCLOSURE OF ‘‘(h) RECOVERY RULES FOR PRIVATE CLASS AC- portunity in the Senate Foreign Rela- CORPORATE FRAUD TIONS.— tions Committee room to have a very Sec. 301. Fraud detection and disclosure. healthy and productive discussion with ‘‘(1) IN GENERAL.—The rules contained in this TITLE I—REDUCTION OF ABUSIVE subsection shall apply in each private action a group of our colleagues, Senators LITIGATION arising under this title that is brought as a from Chile, who are here in the United SEC. 101. ELIMINATION OF CERTAIN ABUSIVE plaintiff class action pursuant to the Federal States, to meet with their counterparts PRACTICES. Rules of Civil Procedure. in the Senate and some Members of the (a) PROHIBITION OF REFERRAL FEES.—Section ‘‘(2) CERTIFICATION FILED WITH COMPLAINTS.— House and the administration on a va- 15(c) of the Securities Exchange Act of 1934 (15 ‘‘(A) IN GENERAL.—Each plaintiff seeking to riety of subject matters, not the least U.S.C. 78o(c)) is amended by adding at the end serve as a representative party on behalf of a of which—and it will not come as a the following new paragraph: class shall provide a sworn certification, which great surprise—is NAFTA. ‘‘(8) PROHIBITION OF REFERRAL FEES.—No shall be personally signed by such plaintiff and I know many colleagues share the broker or dealer, or person associated with a filed with the complaint, that— broker or dealer, may solicit or accept, directly ‘‘(i) states that the plaintiff has reviewed the view that Chile would be a welcome or indirectly, remuneration for assisting an at- complaint and authorized its filing; partner in the NAFTA agreements. torney in obtaining the representation of any ‘‘(ii) states that the plaintiff did not purchase That is a matter we will address in the person in any private action arising under this the security that is the subject of the complaint future. title or under the Securities Act of 1933.’’. at the direction of plaintiff’s counsel or in order

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00045 Fmt 0624 Sfmt 6333 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8886 CONGRESSIONAL RECORD — SENATE June 22, 1995 to participate in any private action arising State judicial action or administrative pro- ment agreement of a class action shall not be under this title; ceeding, other than an action or proceeding filed under seal, except that on motion of any ‘‘(iii) states that the plaintiff is willing to arising out of such statement. party to the settlement, the court may order fil- serve as a representative party on behalf of a ‘‘(C) STATEMENT OF ATTORNEYS’ FEES OR ing under seal for those portions of a settlement class, including providing testimony at deposi- COSTS SOUGHT.—If any of the settling parties or agreement as to which good cause is shown for tion and trial, if necessary; their counsel intend to apply to the court for an such filing under seal. For purposes of this ‘‘(iv) sets forth all of the transactions of the award of attorneys’ fees or costs from any fund paragraph, good cause shall exist only if publi- plaintiff in the security that is the subject of the established as part of the settlement, a state- cation of a term or provision of a settlement complaint during the class period specified in ment indicating which parties or counsel intend agreement would cause direct and substantial the complaint; to make such an application, the amount of fees harm to any party. ‘‘(v) identifies any action under this title, and costs that will be sought (including the ‘‘(5) RESTRICTIONS ON PAYMENT OF ATTOR- filed during the 3-year period preceding the date amount of such fees and costs determined on an NEYS’ FEES AND EXPENSES.—Total attorneys’ fees on which the certification is signed by the average per share basis), and a brief expla- and expenses awarded by the court to counsel plaintiff, in which the plaintiff has sought to nation supporting the fees and costs sought. for the plaintiff class shall not exceed a reason- serve as a representative party on behalf of a ‘‘(D) IDENTIFICATION OF LAWYERS’ REPRESENT- able percentage of the amount of damages and class; and ATIVES.—The name, telephone number, and ad- prejudgment interest awarded to the class. ‘‘(vi) states that the plaintiff will not accept dress of one or more representatives of counsel ‘‘(6) DISCLOSURE OF SETTLEMENT TERMS TO any payment for serving as a representative for the plaintiff class who will be reasonably CLASS MEMBERS.—Any proposed or final settle- party on behalf of a class beyond the plaintiff’s available to answer questions from class mem- ment agreement that is published or otherwise pro rata share of any recovery, except as or- bers concerning any matter contained in any disseminated to the class shall include each of dered or approved by the court in accordance notice of settlement published or otherwise dis- the following statements, along with a cover with paragraph (3). seminated to the class. page summarizing the information contained in ‘‘(B) NONWAIVER OF ATTORNEY-CLIENT PRIVI- ‘‘(E) REASONS FOR SETTLEMENT.—A brief such statements: LEGE .—The certification filed pursuant to sub- statement explaining the reasons why the par- ‘‘(A) STATEMENT OF PLAINTIFF RECOVERY.— paragraph (A) shall not be construed to be a ties are proposing the settlement. The amount of the settlement proposed to be dis- waiver of the attorney-client privilege. ‘‘(F) OTHER INFORMATION.—Such other infor- tributed to the parties to the action, determined ‘‘(3) RECOVERY BY PLAINTIFFS.—The share of mation as may be required by the court.’’. in the aggregate and on an average per share any final judgment or of any settlement that is (2) SECURITIES EXCHANGE ACT OF 1934.—Section basis. awarded to a representative party serving on be- 21 of the Securities Exchange Act of 1934 (15 ‘‘(B) STATEMENT OF POTENTIAL OUTCOME OF half of a class shall be calculated in the same U.S.C. 78u) is amended by adding at the end the CASE.— manner as the shares of the final judgment or following new subsection: ‘‘(i) AGREEMENT ON AMOUNT OF DAMAGES.—If settlement awarded to all other members of the ‘‘(j) RECOVERY RULES FOR PRIVATE CLASS AC- the settling parties agree on the average amount class. Nothing in this paragraph shall be con- TIONS.— of damages per share that would be recoverable strued to limit the award of reasonable costs ‘‘(1) IN GENERAL.—The rules contained in this if the plaintiff prevailed on each claim alleged and expenses (including lost wages) directly re- subsection shall apply in each private action under this title, a statement concerning the av- lating to the representation of the class to any arising under this title that is brought as a erage amount of such potential damages per representative party serving on behalf of the plaintiff class action pursuant to the Federal share. class. Rules of Civil Procedure. ‘‘(ii) DISAGREEMENT ON AMOUNT OF DAM- ‘‘(4) RESTRICTIONS ON SETTLEMENTS UNDER ‘‘(2) CERTIFICATION FILED WITH COMPLAINTS.— AGES.—If the parties do not agree on the aver- SEAL.—The terms and provisions of any settle- ‘‘(A) IN GENERAL.—Each plaintiff seeking to age amount of damages per share that would be ment agreement of a class action shall not be serve as a representative party on behalf of a recoverable if the plaintiff prevailed on each filed under seal, except that on motion of any class shall provide a sworn certification, which claim alleged under this title, a statement from party to the settlement, the court may order fil- shall be personally signed by such plaintiff and each settling party concerning the issue or ing under seal for those portions of a settlement filed with the complaint, that— issues on which the parties disagree. agreement as to which good cause is shown for ‘‘(i) states that the plaintiff has reviewed the ‘‘(iii) INADMISSIBILITY FOR CERTAIN PUR- such filing under seal. For purposes of this complaint and authorized its filing; POSES.—A statement made in accordance with paragraph, good cause shall exist only if publi- ‘‘(ii) states that the plaintiff did not purchase clause (i) or (ii) concerning the amount of dam- cation of a term or provision of a settlement the security that is the subject of the complaint ages shall not be admissible in any Federal or agreement would cause direct and substantial at the direction of plaintiff’s counsel or in order State judicial action or administrative pro- harm to any party. to participate in any private action arising ceeding, other than an action or proceeding ‘‘(5) RESTRICTIONS ON PAYMENT OF ATTOR- under this title; arising out of such statement. NEYS’ FEES AND EXPENSES.—Total attorneys’ fees ‘‘(iii) states that the plaintiff is willing to and expenses awarded by the court to counsel serve as a representative party on behalf of a ‘‘(C) STATEMENT OF ATTORNEYS’ FEES OR for the plaintiff class shall not exceed a reason- class, including providing testimony at deposi- COSTS SOUGHT.—If any of the settling parties or able percentage of the amount of damages and tion and trial, if necessary; their counsel intend to apply to the court for an prejudgment interest awarded to the class. ‘‘(iv) sets forth all of the transactions of the award of attorneys’ fees or costs from any fund ‘‘(6) DISCLOSURE OF SETTLEMENT TERMS TO plaintiff in the security that is the subject of the established as part of the settlement, a state- CLASS MEMBERS.—Any proposed or final settle- complaint during the class period specified in ment indicating which parties or counsel intend ment agreement that is published or otherwise the complaint; to make such an application, the amount of fees disseminated to the class shall include each of ‘‘(v) identifies any action under this title, and costs that will be sought (including the the following statements, along with a cover filed during the 3-year period preceding the date amount of such fees and costs determined on an page summarizing the information contained in on which the certification is signed by the average per share basis), and a brief expla- such statements: plaintiff, in which the plaintiff has sought to nation supporting the fees and costs sought. ‘‘(A) STATEMENT OF PLAINTIFF RECOVERY.— serve as a representative party on behalf of a ‘‘(D) IDENTIFICATION OF LAWYERS’ REPRESENT- The amount of the settlement proposed to be dis- class; and ATIVES.—The name, telephone number, and ad- tributed to the parties to the action, determined ‘‘(vi) states that the plaintiff will not accept dress of one or more representatives of counsel in the aggregate and on an average per share any payment for serving as a representative for the plaintiff class who will be reasonably basis. party on behalf of a class beyond the plaintiff’s available to answer questions from class mem- ‘‘(B) STATEMENT OF POTENTIAL OUTCOME OF pro rata share of any recovery, except as or- bers concerning any matter contained in any CASE.— dered or approved by the court in accordance notice of settlement published or otherwise dis- ‘‘(i) AGREEMENT ON AMOUNT OF DAMAGES.—If with paragraph (3). seminated to the class. the settling parties agree on the average amount ‘‘(B) NONWAIVER OF ATTORNEY-CLIENT PRIVI- ‘‘(E) REASONS FOR SETTLEMENT.—A brief of damages per share that would be recoverable LEGE.—The certification filed pursuant to sub- statement explaining the reasons why the par- if the plaintiff prevailed on each claim alleged paragraph (A) shall not be construed to be a ties are proposing the settlement. under this title, a statement concerning the av- waiver of the attorney-client privilege. ‘‘(F) OTHER INFORMATION.—Such other infor- erage amount of such potential damages per ‘‘(3) RECOVERY BY PLAINTIFFS.—The share of mation as may be required by the court.’’. share. any final judgment or of any settlement that is (b) APPOINTMENT OF LEAD PLAINTIFF.— ‘‘(ii) DISAGREEMENT ON AMOUNT OF DAM- awarded to a representative party serving on be- (1) SECURITIES ACT OF 1933.—Section 20 of the AGES.—If the parties do not agree on the aver- half of a class shall be calculated in the same Securities Act of 1933 (15 U.S.C. 77t) is amended age amount of damages per share that would be manner as the shares of the final judgment or by adding at the end the following new sub- recoverable if the plaintiff prevailed on each settlement awarded to all other members of the section: claim alleged under this title, a statement from class. Nothing in this paragraph shall be con- ‘‘(i) PROCEDURES GOVERNING APPOINTMENT OF each settling party concerning the issue or strued to limit the award to any representative LEAD PLAINTIFF IN CLASS ACTIONS.— issues on which the parties disagree. party serving on behalf of a class of reasonable ‘‘(1) EARLY NOTICE TO CLASS MEMBERS.— ‘‘(iii) INADMISSIBILITY FOR CERTAIN PUR- costs and expenses (including lost wages) di- ‘‘(A) IN GENERAL.—In any private action aris- POSES.—A statement made in accordance with rectly relating to the representation of the class. ing under this title that is brought on behalf of clause (i) or (ii) concerning the amount of dam- ‘‘(4) RESTRICTIONS ON SETTLEMENTS UNDER a class, not later than 20 days after the date on ages shall not be admissible in any Federal or SEAL.—The terms and provisions of any settle- which the complaint is filed, the plaintiff or

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plaintiffs shall cause to be published, in a wide- a class, not later than 20 days after the date on ‘‘(j) SANCTIONS FOR ABUSIVE LITIGATION.— ly circulated national business-oriented publica- which the complaint is filed, the plaintiff or ‘‘(1) MANDATORY REVIEW BY COURT.—In any tion or wire service, a notice advising members plaintiffs shall cause to be published, in a wide- private action arising under this title, upon of the purported plaintiff class— ly circulated national business-oriented publica- final adjudication of the action, the court shall ‘‘(i) of the pendency of the action, the claims tion or wire service, a notice advising members include in the record specific findings regarding asserted therein, and the purported class period; of the purported plaintiff class— compliance by each party and each attorney and ‘‘(i) of the pendency of the action, the claims representing any party with each requirement of ‘‘(ii) that, not later than 60 days after the asserted therein, and the purported class period; Rule 11(b) of the Federal Rules of Civil Proce- date on which the notice is published, any mem- and dure. ber of the purported class may move the court to ‘‘(ii) that, not later than 60 days after the ‘‘(2) MANDATORY SANCTIONS.—If the court serve as lead plaintiff of the purported class. date on which the notice is published, any mem- makes a finding under paragraph (1) that a ‘‘(B) ADDITIONAL NOTICES MAY BE REQUIRED ber of the purported class may move the court to party or attorney violated any requirement of UNDER FEDERAL RULES.—Notice required under serve as lead plaintiff of the purported class. Rule 11(b) of the Federal Rules of Civil Proce- subparagraph (A) shall be in addition to any ‘‘(B) ADDITIONAL NOTICES MAY BE REQUIRED dure, the court shall impose sanctions on such notice required pursuant to the Federal Rules of UNDER FEDERAL RULES.—Notice required under party or attorney in accordance with Rule 11 of Civil Procedure. subparagraph (A) shall be in addition to any the Federal Rules of Civil Procedure. ‘‘(2) APPOINTMENT OF LEAD PLAINTIFF.— notice required pursuant to the Federal Rules of ‘‘(3) PRESUMPTION IN FAVOR OF ATTORNEYS’ ‘‘(A) IN GENERAL.—Not later than 90 days Civil Procedure. FEES AND COSTS.— after the date on which a notice is published ‘‘(2) APPOINTMENT OF LEAD PLAINTIFF.— ‘‘(A) IN GENERAL.—Subject to subparagraphs under paragraph (1)(A), the court shall consider ‘‘(A) IN GENERAL.—Not later than 90 days (B) and (C), for purposes of paragraph (2), the any motion made by a purported class member after the date on which a notice is published court shall adopt a presumption that the appro- in response to the notice, and shall appoint as under paragraph (1)(A), the court shall consider priate sanction for failure of the complaint to lead plaintiff the member or members of the pur- any motion made by a purported class member comply with any requirement of Rule 11(b) of ported plaintiff class that the court determines in response to the notice, and shall appoint as the Federal Rules of Civil Procedure is an to be most capable of adequately representing lead plaintiff the member or members of the pur- award to the opposing party of all of the rea- the interests of class members (hereafter in this ported plaintiff class that the court determines sonable attorneys’ fees and other expenses in- subsection referred to as the ‘most adequate to be most capable of adequately representing curred as a direct result of the violation. plaintiff’) in accordance with this paragraph. the interests of class members (hereafter in this ‘‘(B) REBUTTAL EVIDENCE.—The presumption ‘‘(B) CONSOLIDATED ACTIONS.—If more than subsection referred to as the ‘most adequate described in subparagraph (A) may be rebutted one action on behalf of a class asserting sub- plaintiff’) in accordance with this paragraph. only upon proof by the party or attorney stantially the same claim or claims arising under ‘‘(B) CONSOLIDATED ACTIONS.—If more than against whom sanctions are to be imposed this title has been filed, and any party has one action on behalf of a class asserting sub- that— sought to consolidate those actions for pretrial stantially the same claim or claims arising under ‘‘(i) the award of attorneys’ fees and other ex- purposes or for trial, the court shall not make this title has been filed, and any party has penses will impose an undue burden on that the determination required by subparagraph (A) sought to consolidate those actions for pretrial party or attorney; or until after the decision on the motion to consoli- purposes or for trial, the court shall not make ‘‘(ii) the violation of Rule 11(b) of the Federal date is rendered. As soon as practicable after the determination required by subparagraph (A) Rules of Civil Procedure was de minimis. such decision is rendered, the court shall ap- until after the decision on the motion to consoli- ‘‘(C) SANCTIONS.—If the party or attorney point the most adequate plaintiff as lead plain- date is rendered. As soon as practicable after against whom sanctions are to be imposed meets tiff for the consolidated actions in accordance such decision is rendered, the court shall ap- its burden under subparagraph (B), the court with this paragraph. point the most adequate plaintiff as lead plain- shall award the sanctions that the court deems ‘‘(C) REBUTTABLE PRESUMPTION.— appropriate pursuant to Rule 11 of the Federal ‘‘(i) IN GENERAL.—Subject to clause (ii), for tiff for the consolidated actions in accordance with this paragraph. Rules of Civil Procedure.’’. purposes of subparagraph (A), the court shall (b) SECURITIES EXCHANGE ACT OF 1934.—Sec- ‘‘(C) REBUTTABLE PRESUMPTION.— adopt a presumption that the most adequate tion 21 of the Securities Exchange Act of 1934 ‘‘(i) IN GENERAL.—Subject to clause (ii), for plaintiff in any private action arising under this (15 U.S.C. 78u) is amended by adding at the end title is the person or group of persons that— purposes of subparagraph (A), the court shall adopt a presumption that the most adequate the following new subsection: ‘‘(I) has either filed the complaint or made a ‘‘(l) SANCTIONS FOR ABUSIVE LITIGATION.— plaintiff in any private action arising under this motion in response to a notice under paragraph ‘‘(1) MANDATORY REVIEW BY COURT.—In any title is the person or group of persons that— (1)(A); private action arising under this title, upon ‘‘(I) has either filed the complaint or made a ‘‘(II) in the determination of the court, has final adjudication of the action, the court shall motion in response to a notice under paragraph the largest financial interest in the relief sought include in the record specific findings regarding (1)(A); by the class; and compliance by each party and each attorney ‘‘(III) otherwise satisfies the requirements of ‘‘(II) in the determination of the court, has representing any party with each requirement of Rule 23 of the Federal Rules of Civil Procedure. the largest financial interest in the relief sought Rule 11(b) of the Federal Rules of Civil Proce- ‘‘(ii) REBUTTAL EVIDENCE.—The presumption by the class; and dure. described in clause (i) may be rebutted only ‘‘(III) otherwise satisfies the requirements of ‘‘(2) MANDATORY SANCTIONS.—If the court upon proof by a member of the purported plain- Rule 23 of the Federal Rules of Civil Procedure. makes a finding under paragraph (1) that a tiff class that the presumptively most adequate ‘‘(ii) REBUTTAL EVIDENCE.—The presumption party or attorney violated any requirement of plaintiff— described in clause (i) may be rebutted only Rule 11(b) of the Federal Rules of Civil Proce- ‘‘(I) will not fairly and adequately protect the upon proof by a member of the purported plain- dure, the court shall impose sanctions in accord- interests of the class; or tiff class that the presumptively most adequate ance with Rule 11 of the Federal Rules of Civil ‘‘(II) is subject to unique defenses that render plaintiff— Procedure on such party or attorney. such plaintiff incapable of adequately rep- ‘‘(I) will not fairly and adequately protect the ‘‘(3) PRESUMPTION IN FAVOR OF ATTORNEYS’ resenting the class. interests of the class; or FEES AND COSTS.— ‘‘(iii) DISCOVERY.—For purposes of clause (ii), ‘‘(II) is subject to unique defenses that render discovery relating to whether a member or mem- ‘‘(A) IN GENERAL.—Subject to subparagraphs such plaintiff incapable of adequately rep- (B) and (C), for purposes of paragraph (2), the bers of the purported plaintiff class is the most resenting the class. adequate plaintiff— court shall adopt a presumption that the appro- ‘‘(iii) DISCOVERY.—For purposes of clause (ii), priate sanction for failure of the complaint to ‘‘(I) may not be conducted by any defendant; discovery relating to whether a member or mem- and comply with any requirement of Rule 11(b) of bers of the purported plaintiff class is the most the Federal Rules of Civil Procedure is an ‘‘(II) may be conducted by a plaintiff only if adequate plaintiff— the plaintiff first demonstrates a reasonable award to the opposing party of all of the rea- ‘‘(I) may not be conducted by any defendant; sonable attorneys’ fees and other expenses in- basis for a finding that the presumptively most and adequate plaintiff is incapable of adequately curred as a direct result of the violation. ‘‘(II) may be conducted by a plaintiff only if ‘‘(B) REBUTTAL EVIDENCE.—The presumption representing the class. the plaintiff first demonstrates a reasonable ‘‘(D) SELECTION OF LEAD COUNSEL.—The most described in subparagraph (A) may be rebutted basis for a finding that the presumptively most adequate plaintiff shall, subject to the approval only upon proof by the party or attorney adequate plaintiff is incapable of adequately of the court, select and retain counsel to rep- against whom sanctions are to be imposed representing the class. resent the class.’’. that— ‘‘(D) SELECTION OF LEAD COUNSEL.—The most (2) SECURITIES EXCHANGE ACT OF 1934.—Section ‘‘(i) the award of attorneys’ fees and other ex- adequate plaintiff shall, subject to the approval 21 of the Securities Exchange Act of 1934 (15 penses will impose an undue burden on that of the court, select and retain counsel to rep- U.S.C. 78a et seq.) is amended by adding at the party or attorney; or resent the class.’’. end the following new subsection: ‘‘(ii) the violation of Rule 11(b) of the Federal ‘‘(k) PROCEDURES GOVERNING APPOINTMENT SEC. 103. SANCTIONS FOR ABUSIVE LITIGATION. Rules of Civil Procedure was de minimis. OF LEAD PLAINTIFF IN CLASS ACTIONS.— (a) SECURITIES ACT OF 1933.—Section 20 of the ‘‘(C) SANCTIONS.—If the party or attorney ‘‘(1) EARLY NOTICE TO CLASS MEMBERS.— Securities Act of 1933 (15 U.S.C. 77t) is amended against whom sanctions are to be imposed meets ‘‘(A) IN GENERAL.—In any private action aris- by adding at the end the following new sub- its burden under subparagraph (B), the court ing under this title that is brought on behalf of section: shall award the sanctions that the court deems

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00047 Fmt 0624 Sfmt 6333 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8888 CONGRESSIONAL RECORD — SENATE June 22, 1995 appropriate pursuant to Rule 11 of the Federal recorded or stored data), or tangible object that ‘‘(iii) determines that the issuer violated the Rules of Civil Procedure.’’. is in the custody or control of that person and anti-fraud provisions of the securities laws; SEC. 104. REQUIREMENTS FOR SECURITIES that is relevant to the allegations. ‘‘(B) makes the forward-looking statement in FRAUD ACTIONS. ‘‘(d) LOSS CAUSATION.—In any private action connection with an offering of securities by a (a) SECURITIES ACT OF 1933.— arising under this title, the plaintiff shall have blank check company, as that term is defined (1) STAY OF DISCOVERY.—Section 20 of the Se- the burden of proving that the act or omission under the rules or regulations of the Commis- curities Act of 1933 (15 U.S.C. 77t) is amended by alleged to violate this title caused any loss in- sion; adding at the end the following new subsection: curred by the plaintiff. Damages arising from ‘‘(C) issues penny stock, as that term is de- ‘‘(k) STAY OF DISCOVERY.—In any private ac- such loss may be mitigated upon a showing by fined in section 3(a)(51) of the Securities Ex- tion arising under this title, during the pend- the defendant that factors unrelated to such act change Act of 1934, and the rules, regulations, ency of any motion to dismiss, all discovery and or omission contributed to the loss.’’. or orders issued pursuant to that section; other proceedings shall be stayed unless the SEC. 105. SAFE HARBOR FOR FORWARD-LOOKING ‘‘(D) makes the forward-looking statement in court finds, upon the motion of any party, that STATEMENTS. connection with a rollup transaction, as that particularized discovery is necessary to preserve (a) SECURITIES ACT OF 1933.—Title I of the Se- term is defined under the rules or regulations of evidence or to prevent undue prejudice to that curities Act of 1933 (15 U.S.C. 77a et seq.) is the Commission; or party.’’. amended by inserting after section 13 the fol- ‘‘(E) makes the forward-looking statement in (2) PRESERVATION OF EVIDENCE.—Section 20 of lowing new section: connection with a going private transaction, as the Securities Act of 1933 (15 U.S.C. 77t) is ‘‘SEC. 13A. APPLICATION OF SAFE HARBOR FOR that term is defined under the rules or regula- amended by adding at the end the following FORWARD-LOOKING STATEMENTS. tions of the Commission issued pursuant to sec- new subsection: ‘‘(a) SAFE HARBOR.— tion 13(e) of the Securities Exchange Act of 1934; ‘‘(l) PRESERVATION OF EVIDENCE.—It shall be ‘‘(1) IN GENERAL.—In any private action aris- or unlawful for any person, upon receiving actual ing under this title that is based on a fraudulent ‘‘(3) except to the extent otherwise specifically notice that a complaint has been filed in a pri- statement, an issuer that is subject to the report- provided by rule or regulation of the Commis- vate action arising under this title naming that ing requirements of section 13(a) or section 15(d) sion— person as a defendant and that describes the al- of the Securities Exchange Act of 1934, a person ‘‘(A) included in a financial statement pre- legations contained in the complaint, to will- acting on behalf of such issuer, or an outside re- pared in accordance with generally accepted ac- fully destroy or otherwise alter any document, viewer retained by such issuer, shall not be lia- counting principles; data compilation (including any electronically ble with respect to any forward-looking state- ‘‘(B) contained in a registration statement of, recorded or stored data), or tangible object that ment, whether written or oral, if and to the ex- or otherwise issued by, an investment company, is in the custody or control of that person and tent that the statement— as that term is defined in section 3(a) of the In- ‘‘(A) projects, estimates, or describes future that is relevant to the allegations.’’. vestment Company Act of 1940; (b) SECURITIES EXCHANGE ACT OF 1934.—Title events; and ‘‘(B) refers clearly (and, except as otherwise ‘‘(C) made in connection with a tender offer; I of the Securities Exchange Act of 1934 (15 provided by rule or regulation, proximately) to— ‘‘(D) made by or in connection with an offer- U.S.C. 78a et seq.) is amended by adding at the ‘‘(i) such projections, estimates, or descrip- ing by a partnership, limited liability corpora- end the following new section: tions as forward-looking statements; and tion, or a direct participation investment pro- ‘‘SEC. 36. REQUIREMENTS FOR SECURITIES ‘‘(ii) the risk that actual results may differ gram, as those terms are defined by rule or regu- FRAUD ACTIONS. materially from such projections, estimates, or lation of the Commission; or ‘‘(a) MISLEADING STATEMENTS AND OMIS- descriptions. ‘‘(E) made in a disclosure of beneficial owner- SIONS.—In any private action arising under this ‘‘(2) EFFECT ON OTHER SAFE HARBORS.—The ship in a report required to be filed with the title in which the plaintiff alleges that the de- exemption from liability provided for in para- Commission pursuant to section 13(d) of the Se- fendant— graph (1) shall be in addition to any exemption curities Exchange Act of 1934. ‘‘(1) made an untrue statement of a material that the Commission may establish by rule or ‘‘(d) STAY PENDING DECISION ON MOTION.—In fact; or regulation under subsection (e). any private action arising under this title, the ‘‘(2) omitted to state a material fact necessary ‘‘(b) DEFINITION OF FORWARD-LOOKING court shall stay discovery during the pendency in order to make the statements made, in the STATEMENT.—For purposes of this section, the of any motion by a defendant (other than dis- light of the circumstances in which they were term ‘forward-looking statement’ means— covery that is specifically directed to the appli- made, not misleading; ‘‘(1) a statement containing a projection of cability of the exemption provided for in this the complaint shall specify each statement al- revenues, income (including income loss), earn- section) for summary judgment that is based on leged to have been misleading, the reason or ings (including earnings loss) per share, capital the grounds that— reasons why the statement is misleading, and, if expenditures, dividends, capital structure, or ‘‘(1) the statement or omission upon which the an allegation regarding the statement or omis- other financial items; complaint is based is a forward-looking state- sion is made on information and belief, the ‘‘(2) a statement of the plans and objectives of ment within the meaning of this section; and plaintiff shall set forth all information on which management for future operations; ‘‘(2) the exemption provided for in this section that belief is formed. ‘‘(3) a statement of future economic perform- precludes a claim for relief. ‘‘(b) REQUIRED STATE OF MIND.—In any pri- ance contained in a discussion and analysis of ‘‘(e) AUTHORITY.—In addition to the exemp- vate action arising under this title in which the financial condition by the management or in the tion provided for in this section, the Commission plaintiff may recover money damages only on results of operations included pursuant to the may, by rule or regulation, provide exemptions proof that the defendant acted with a particular rules and regulations of the Commission; from liability under any provision of this title, ‘‘(4) any disclosed statement of the assump- state of mind, the plaintiff’s complaint shall, or of any rule or regulation issued under this tions underlying or relating to any statement with respect to each act or omission alleged to title, that is based on a statement that includes described in paragraph (1), (2), or (3); or violate this title, specifically allege facts giving or that is based on projections or other forward- ‘‘(5) a statement containing a projection or es- rise to a strong inference that the defendant looking information, if and to the extent that timate of such other items as may be specified by acted with the required state of mind. any such exemption is, as determined by the rule or regulation of the Commission. ‘‘(c) MOTION TO DISMISS; STAY OF DIS- Commission, consistent with the public interest ‘‘(c) EXCLUSIONS.—The exemption from liabil- and the protection of investors. COVERY.— ity provided for in subsection (a) does not apply ‘‘(f) COMMISSION DISGORGEMENT ACTIONS.— ‘‘(1) DISMISSAL FOR FAILURE TO MEET PLEAD- to a forward-looking statement that is— ING REQUIREMENTS.—In any private action aris- ‘‘(1) knowingly made with the expectation, ‘‘(1) IN GENERAL.—If the Commission, in any ing under this title, the court shall, on the mo- purpose, and actual intent of misleading inves- proceeding, orders or obtains (by settlement, tion of any defendant, dismiss the complaint if tors; court order, or otherwise) a payment of funds the requirements of subsections (a) and (b) are ‘‘(2) except to the extent otherwise specifically from a person who has violated this title not met. provided by rule, regulation, or order of the through means that included the utilization of a ‘‘(2) STAY OF DISCOVERY.—In any private ac- Commission, made with respect to the business forward-looking statement, and if any portion tion arising under this title, during the pend- or operations of the issuer, if the issuer— of such funds is set aside or otherwise held for ency of any motion to dismiss, all discovery and ‘‘(A) has been, during the 3-year period pre- or available to persons who suffered losses in other proceedings shall be stayed unless the ceding the date on which the statement was first connection with such violation, no person shall court finds upon the motion of any party that made, convicted of any felony or misdemeanor be precluded from participating in the distribu- particularized discovery is necessary to preserve described in clauses (i) through (iv) of section tion of, or otherwise receiving, a portion of such evidence or to prevent undue prejudice to that 15(b)(4)(B), or has been made the subject of a ju- funds by reason of the application of this sec- party. dicial or administrative decree or order arising tion. ‘‘(3) PRESERVATION OF EVIDENCE.—It shall be out of a governmental action that— ‘‘(2) JUDGMENT FOR LOSSES SUFFERED.—In any unlawful for any person, upon receiving actual ‘‘(i) prohibits future violations of the anti- action by the Commission alleging a violation of notice that a complaint has been filed in a pri- fraud provisions of the securities laws, as that this title in which the defendant or respondent vate action arising under this title naming that term is defined in section 3 of the Securities Ex- is alleged to have utilized a forward-looking person as a defendant and that describes the al- change Act of 1934; statement in furtherance of such violation, the legations contained in the complaint, to will- ‘‘(ii) requires that the issuer cease and desist Commission may, upon a sufficient showing, in fully destroy or otherwise alter any document, from violating the anti-fraud provisions of the addition to all other remedies available to the data compilation (including any electronically securities laws; or Commission, obtain a judgment for the payment

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00048 Fmt 0624 Sfmt 6333 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8889 of an amount equal to all losses suffered by rea- blank check company, as that term is defined (15 U.S.C. 80a–24) is amended by adding at the son of the utilization of the forward-looking under the rules or regulations of the Commis- end the following new subsection: statement. sion; ‘‘(g) REGULATORY AUTHORITY FOR FORWARD- ‘‘(g) EFFECT ON OTHER AUTHORITY OF COM- ‘‘(C) issues penny stock; LOOKING STATEMENTS.— MISSION.—Nothing in this section limits, either ‘‘(D) makes the forward-looking statement in ‘‘(1) IN GENERAL.—The Commission shall re- expressly or by implication, the authority of the connection with a rollup transaction, as that view and, if necessary to carry out the purposes Commission to exercise similar authority or to term is defined under the rules or regulations of of this title, promulgate such rules and regula- adopt similar rules and regulations with respect the Commission; or tions as may be necessary to describe conduct to forward-looking statements under any other ‘‘(E) makes the forward-looking statement in with respect to the making of forward-looking statute under which the Commission exercises connection with a going private transaction, as statements that the Commission deems does not rulemaking authority.’’. that term is defined under the rules or regula- provide a basis for liability in any private action (b) SECURITIES EXCHANGE ACT OF 1934.—Title tions of the Commission issued pursuant to sec- arising under this title. I of the Securities Exchange Act of 1934 (15 tion 13(e); or ‘‘(2) REQUIREMENTS.—A rule or regulation U.S.C. 78a et seq.) is amended by adding at the ‘‘(3) except to the extent otherwise specifically promulgated under paragraph (1) shall— end the following new section: provided by rule or regulation of the Commis- ‘‘(A) include clear and objective guidance that ‘‘SEC. 37. APPLICATION OF SAFE HARBOR FOR sion— the Commission finds sufficient for the protec- FORWARD-LOOKING STATEMENTS. ‘‘(A) included in financial statements pre- tion of investors; ‘‘(a) SAFE HARBOR.— pared in accordance with generally accepted ac- ‘‘(B) prescribe such guidance with sufficient ‘‘(1) IN GENERAL.—In any private action aris- counting principles; particularity that compliance shall be readily ing under this title that is based on a fraudulent ‘‘(B) contained in a registration statement of, ascertainable by issuers prior to issuance of se- statement, an issuer that is subject to the report- or otherwise issued by, an investment company; curities; and ing requirements of section 13(a) or section 15(d) ‘‘(C) made in connection with a tender offer; ‘‘(C) provide that forward-looking statements ‘‘(D) made by or in connection with an offer- of the Securities Exchange Act of 1934, a person that are in compliance with such guidance and ing by a partnership, limited liability corpora- acting on behalf of such issuer, or an outside re- that concern the future economic performance tion, or a direct participation investment pro- viewer retained by such issuer, shall not be lia- of an issuer of securities registered under section gram, as those terms are defined by rule or regu- ble with respect to any forward-looking state- 12 shall be deemed not to be in violation of this lation of the Commission; or ment, whether written or oral, if and to the ex- title. ‘‘(E) made in a disclosure of beneficial owner- ‘‘(3) EFFECT ON OTHER AUTHORITY OF COMMIS- tent that the statement— ship in a report required to be filed with the ‘‘(A) projects, estimates, or describes future SION.—Nothing in this subsection limits, either Commission pursuant to section 13(d). events; and expressly or by implication, the authority of the ‘‘(d) STAY PENDING DECISION ON MOTION.—In ‘‘(B) refers clearly (and, except as otherwise Commission to exercise similar authority or to any private action arising under this title, the provided by rule or regulation, proximately) to— adopt similar rules and regulations with respect court shall stay discovery during the pendency ‘‘(i) such projections, estimates, or descrip- to forward-looking statements under any other of any motion by a defendant (other than dis- tions as forward-looking statements; and statute under which the Commission exercises covery that is specifically directed to the appli- ‘‘(ii) the risk that actual results may differ rulemaking authority.’’. cability of the exemption provided for in this materially from such projections, estimates, or SEC. 106. WRITTEN INTERROGATORIES. descriptions. section) for summary judgment that is based on the grounds that— (a) SECURITIES ACT OF 1933.—Section 20 of the ‘‘(2) EFFECT ON OTHER SAFE HARBORS.—The Securities Act of 1933 (15 U.S.C. 77t) is amended exemption from liability provided for in para- ‘‘(1) the statement or omission upon which the complaint is based is a forward-looking state- by adding at the end the following new sub- graph (1) shall be in addition to any exemption section: that the Commission may establish by rule or ment within the meaning of this section; and ‘‘(2) the exemption provided for in this section ‘‘(m) DEFENDANT’S RIGHT TO WRITTEN INTER- regulation under subsection (e). precludes a claim for relief. ROGATORIES.—In any private action arising ‘‘(b) DEFINITION OF FORWARD-LOOKING ‘‘(e) AUTHORITY.—In addition to the exemp- under this title in which the plaintiff may re- STATEMENT.—For purposes of this section, the tion provided for in this section, the Commission cover money damages only on proof that a de- term ‘forward-looking statement’ means— may, by rule or regulation, provide exemptions fendant acted with a particular state of mind, ‘‘(1) a statement containing a projection of from liability under any provision of this title, the court shall, when requested by a defendant, revenues, income (including income loss), earn- or of any rule or regulation issued under this submit to the jury a written interrogatory on the ings (including earnings loss) per share, capital title, that is based on a statement that includes issue of each such defendant’s state of mind at expenditures, dividends, capital structure, or or that is based on projections or other forward- the time the alleged violation occurred.’’. other financial items; (b) SECURITIES EXCHANGE ACT OF 1934.—Sec- ‘‘(2) a statement of the plans and objectives of looking information, if and to the extent that any such exemption is, as determined by the tion 21 of the Securities Exchange Act of 1934 management for future operations; (15 U.S.C. 78u) is amended by adding at the end ‘‘(3) a statement of future economic perform- Commission, consistent with the public interest and the protection of investors. the following new subsection: ance contained in a discussion and analysis of ‘‘(m) DEFENDANT’S RIGHT TO WRITTEN INTER- financial condition by the management or in the ‘‘(f) COMMISSION DISGORGEMENT ACTIONS.— ‘‘(1) IN GENERAL.—If the Commission, in any ROGATORIES.—In any private action arising results of operations included pursuant to the proceeding, orders or obtains (by settlement, under this title in which the plaintiff may re- rules and regulations of the Commission; cover money damages, the court shall, when re- ‘‘(4) any disclosed statement of the assump- court order, or otherwise) a payment of funds quested by a defendant, submit to the jury a tions underlying or relating to any statement from a person who has violated this title written interrogatory on the issue of each such described in paragraph (1), (2), or (3); or through means that included the utilization of a defendant’s state of mind at the time the alleged ‘‘(5) a statement containing a projection or es- forward-looking statement, and if any portion violation occurred.’’. timate of such other items as may be specified by of such funds is set aside or otherwise held for rule or regulation of the Commission. or available to persons who suffered losses in SEC. 107. AMENDMENT TO RACKETEER INFLU- ENCED AND CORRUPT ORGANIZA- ‘‘(c) EXCLUSIONS.—The exemption from liabil- connection with such violation, no person shall TIONS ACT. ity provided for in subsection (a) does not apply be precluded from participating in the distribu- Section 1964(c) of title 18, United States Code, to a forward-looking statement that is— tion of, or otherwise receiving, a portion of such is amended by inserting before the period ‘‘, ex- ‘‘(1) knowingly made with the expectation, funds by reason of the application of this sec- cept that no person may rely upon conduct that purpose, and actual intent of misleading inves- tion. would have been actionable as fraud in the pur- tors; ‘‘(2) JUDGMENT FOR LOSSES SUFFERED.—In any ‘‘(2) except to the extent otherwise specifically action by the Commission alleging a violation of chase or sale of securities to establish a viola- provided by rule, regulation, or order of the this title in which the defendant or respondent tion of section 1962’’. Commission, made with respect to the business is alleged to have utilized a forward-looking SEC. 108. AUTHORITY OF COMMISSION TO PROS- or operations of the issuer, if the issuer— statement in furtherance of such violation, the ECUTE AIDING AND ABETTING. ‘‘(A) has been, during the 3-year period pre- Commission may, upon a sufficient showing, in Section 20 of the Securities Exchange Act of ceding the date on which the statement was first addition to all other remedies available to the 1934 (15 U.S.C. 78t) is amended— made, convicted of any felony or misdemeanor Commission, obtain a judgment for the payment (1) by striking the section heading and insert- described in clauses (i) through (iv) of section of an amount equal to all losses suffered by rea- ing the following: 15(b)(4)(B), or has been made the subject of a ju- son of the utilization of the forward-looking ‘‘LIABILITY OF CONTROLLING PERSONS AND dicial or administrative decree or order arising statement. PERSONS WHO AID AND ABET VIOLATIONS’’; AND out of a governmental action that— ‘‘(g) EFFECT ON OTHER AUTHORITY OF COM- (2) by adding at the end the following new ‘‘(i) prohibits future violations of the anti- MISSION.—Nothing in this section limits, either subsection: fraud provisions of the securities laws; expressly or by implication, the authority of the ‘‘(e) PROSECUTION OF PERSONS WHO AID AND ‘‘(ii) requires that the issuer cease and desist Commission to exercise similar authority or to ABET VIOLATIONS.—For purposes of any action from violating the anti-fraud provisions of the adopt similar rules and regulations with respect brought by the Commission under paragraph (1) securities laws; or to forward-looking statements under any other or (3) of section 21(d), any person that know- ‘‘(iii) determines that the issuer violated the statute under which the Commission exercises ingly provides substantial assistance to another anti-fraud provisions of the securities laws; rulemaking authority.’’. person in the violation of a provision of this ‘‘(B) makes the forward-looking statement in (c) INVESTMENT COMPANY ACT OF 1940.—Sec- title, or of any rule or regulation issued under connection with an offering of securities by a tion 24 of the Investment Company Act of 1940 this title, shall be—

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00049 Fmt 0624 Sfmt 6333 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8890 CONGRESSIONAL RECORD — SENATE June 22, 1995 ‘‘(1) deemed to be in violation of such provi- whom a judgment is entered in any private ac- lectible shall be subject to contribution and to sion; and tion arising under this title shall be liable solely any continuing liability to the plaintiff on the ‘‘(2) liable to the same extent as the person to for the portion of the judgment that corresponds judgment. whom such assistance is provided.’’. to that person’s degree of responsibility, as de- ‘‘(e) RIGHT OF CONTRIBUTION.—To the extent SEC. 109. LOSS CAUSATION. termined under subsection (c). that a defendant is required to make an addi- Section 12 of the Securities Act of 1933 (15 ‘‘(3) KNOWING SECURITIES FRAUD.—For pur- tional payment pursuant to subsection (d), that U.S.C. 77l) is amended— poses of this section— defendant may recover contribution— (1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘(A) a defendant engages in ‘knowing securi- ‘‘(1) from the defendant originally liable to ‘‘Any person’’; ties fraud’ if that defendant— make the payment; (2) by inserting ‘‘, subject to subsection (b),’’ ‘‘(i) makes a material representation with ac- ‘‘(2) from any defendant liable jointly and after ‘‘shall be liable’’; and tual knowledge that the representation is false, severally pursuant to subsection (b)(1); (3) by adding at the end the following: or omits to make a statement with actual knowl- ‘‘(3) from any defendant held proportionately ‘‘(b) LOSS CAUSATION.—In an action described edge that, as a result of the omission, one of the liable pursuant to this subsection who is liable in subsection (a)(2), the liability of the person material representations of the defendant is to make the same payment and has paid less who offers or sells such security shall be limited false; and than his or her proportionate share of that pay- to damages if that person proves that any por- ‘‘(ii) actually knows that persons are likely to ment; or tion or all of the amount recoverable under sub- rely on that misrepresentation or omission; and ‘‘(4) from any other person responsible for the section (a)(2) represents other than the depre- ‘‘(B) reckless conduct by the defendant shall conduct giving rise to the payment that would ciation in value of the subject security resulting not be construed to constitute knowing securi- have been liable to make the same payment. from such part of the prospectus or oral commu- ties fraud. ‘‘(f) NONDISCLOSURE TO JURY.—The standard nication, with respect to which the liability of ‘‘(c) DETERMINATION OF RESPONSIBILITY.— for allocation of damages under subsections (b) that person is asserted, not being true or omit- ‘‘(1) IN GENERAL.—In any private action aris- and (c) and the procedure for reallocation of ting to state a material fact required to be stated ing under this title in which more than 1 person uncollectible shares under subsection (d) shall therein or necessary to make the statement not is alleged to have violated a provision of this not be disclosed to members of the jury. misleading, and such portion or all of such title, the court shall instruct the jury to answer ‘‘(g) SETTLEMENT DISCHARGE.— amount shall not be recoverable.’’. special interrogatories, or if there is no jury, ‘‘(1) IN GENERAL.—A defendant who settles shall make findings, concerning— any private action arising under this title at SEC. 110. APPLICABILITY. ‘‘(A) the percentage of responsibility of each any time before final verdict or judgment shall The amendments made by this title shall not of the defendants and of each of the other per- be discharged from all claims for contribution affect or apply to any private action arising sons alleged by any of the parties to have brought by other persons. Upon entry of the set- under title I of the Securities Exchange Act of caused or contributed to the violation, including tlement by the court, the court shall enter a bar 1934 or title I of the Securities Act of 1933 com- persons who have entered into settlements with order constituting the final discharge of all obli- menced before the date of enactment of this Act. the plaintiff or plaintiffs, measured as a per- gations to the plaintiff of the settling defendant TITLE II—REDUCTION OF COERCIVE centage of the total fault of all persons who arising out of the action. The order shall bar all SETTLEMENTS caused or contributed to the violation; and future claims for contribution arising out of the SEC. 201. LIMITATION ON DAMAGES. ‘‘(B) whether such defendant committed action— Section 36 of the Securities Exchange Act of knowing securities fraud. ‘‘(A) by any person against the settling de- 1934, as added by section 104 of this Act, is ‘‘(2) CONTENTS OF SPECIAL INTERROGATORIES fendant; and amended by adding at the end the following OR FINDINGS.—The responses to interrogatories, ‘‘(B) by the settling defendant against any new subsection: or findings, as appropriate, under paragraph (1) person, other than a person whose liability has ‘‘(e) LIMITATION ON DAMAGES.— shall specify the total amount of damages that been extinguished by the settlement of the set- ‘‘(1) IN GENERAL.—Except as provided in para- the plaintiff is entitled to recover and the per- tling defendant. graph (2), in any private action arising under centage of responsibility of each person found to ‘‘(2) REDUCTION.—If a person enters into a this title, the plaintiff’s damages shall not ex- have caused or contributed to the damages sus- settlement with the plaintiff prior to final ver- ceed the difference between the purchase or sale tained by the plaintiff or plaintiffs. dict or judgment, the verdict or judgment shall price paid or received, as appropriate, by the ‘‘(3) FACTORS FOR CONSIDERATION.—In deter- be reduced by the greater of— plaintiff for the subject security and the value mining the percentage of responsibility under ‘‘(A) an amount that corresponds to the per- of that security, as measured by the median this subsection, the trier of fact shall consider— centage of responsibility of that person; or trading price of that security, during the 90-day ‘‘(A) the nature of the conduct of each person; ‘‘(B) the amount paid to the plaintiff by that period beginning on the date on which the in- and person. formation correcting the misstatement or omis- ‘‘(B) the nature and extent of the causal rela- ‘‘(h) CONTRIBUTION.—A person who becomes sion is disseminated to the market. tionship between that conduct and the damages liable for damages in any private action arising under this title may recover contribution from ‘‘(2) EXCEPTION.—In any private action aris- incurred by the plaintiff or plaintiffs. ing under this title in which damages are ‘‘(d) UNCOLLECTIBLE SHARE.— any other person who, if joined in the original sought, if the plaintiff sells or repurchases the ‘‘(1) IN GENERAL.—Notwithstanding subsection action, would have been liable for the same subject security prior to the expiration of the 90- (b)(2), in any private action arising under this damages. A claim for contribution shall be de- day period described in paragraph (1), the title, if, upon motion made not later than 6 termined based on the percentage of responsi- plaintiff’s damages shall not exceed the dif- months after a final judgment is entered, the bility of the claimant and of each person ference between the purchase or sale price paid court determines that all or part of a defend- against whom a claim for contribution is made. ‘‘(i) STATUTE OF LIMITATIONS FOR CONTRIBU- or received, as appropriate, by the plaintiff for ant’s share of the judgment is not collectible TION.—Once judgment has been entered in any the security and the median market value of the against that defendant or against a defendant private action arising under this title deter- security during the period beginning imme- described in subsection (b)(1), each defendant mining liability, an action for contribution shall diately after dissemination of information cor- described in subsection (b)(2) shall be liable for be brought not later than 6 months after the recting the misstatement or omission and ending the uncollectible share as follows: ‘‘(A) PERCENTAGE OF NET WORTH.—Each de- entry of a final, nonappealable judgment in the on the date on which the plaintiff sells or repur- fendant shall be jointly and severally liable for action, except that an action for contribution chases the security.’’. the uncollectible share if the plaintiff estab- brought by a defendant who was required to SEC. 202. PROPORTIONATE LIABILITY. lishes that— make an additional payment pursuant to sub- Title I of the Securities and Exchange Act of ‘‘(i) the plaintiff is an individual whose recov- section (d) may be brought not later than 6 1934 (15 U.S.C. 78a et seq.) is amended by adding erable damages under the final judgment are months after the date on which such payment at the end the following new section: equal to more than 10 percent of the net finan- was made.’’. ‘‘SEC. 38. PROPORTIONATE LIABILITY. cial worth of the plaintiff; and SEC. 203. APPLICABILITY. ‘‘(a) APPLICABILITY.—This section shall apply ‘‘(ii) the net financial worth of the plaintiff is The amendments made by this title shall not only to the allocation of damages among persons equal to less than $200,000. affect or apply to any private action arising who are, or who may become, liable for damages ‘‘(B) OTHER PLAINTIFFS.—With respect to any under title I of the Securities Exchange Act of in any private action arising under this title. plaintiff not described in subparagraph (A), 1934 commenced before the date of enactment of Nothing in this section shall affect the stand- each defendant shall be liable for the this Act. ards for liability associated with any private ac- uncollectible share in proportion to the percent- TITLE III—AUDITOR DISCLOSURE OF tion arising under this title. age of responsibility of that defendant, except CORPORATE FRAUD ‘‘(b) LIABILITY FOR DAMAGES.— that the total liability under this subparagraph ‘‘(1) JOINT AND SEVERAL LIABILITY.—A person may not exceed 50 percent of the proportionate SEC. 301. FRAUD DETECTION AND DISCLOSURE. against whom a judgment is entered in any pri- share of that defendant, as determined under (a) IN GENERAL.—The Securities Exchange Act vate action arising under this title shall be lia- subsection (c)(2). of 1934 (15 U.S.C. 78a et seq.) is amended by in- ble for damages jointly and severally only if the ‘‘(2) OVERALL LIMIT.—In no case shall the serting immediately after section 10 the fol- trier of fact specifically determines that such total payments required pursuant to paragraph lowing new section: person committed knowing securities fraud. (1) exceed the amount of the uncollectible share. ‘‘SEC. 10A. AUDIT REQUIREMENTS. ‘‘(2) PROPORTIONATE LIABILITY.—Except as ‘‘(3) DEFENDANTS SUBJECT TO CONTRIBUTION.— ‘‘(a) IN GENERAL.—Each audit required pursu- provided in paragraph (1), a person against A defendant against whom judgment is not col- ant to this title of the financial statements of an

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00050 Fmt 0624 Sfmt 6333 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8891 issuer by an independent public accountant given) not later than 1 business day following misinformation. I look to my col- shall include, in accordance with generally ac- such failure to receive notice. leagues on the floor from Alaska for an cepted auditing standards, as may be modified ‘‘(4) REPORT AFTER RESIGNATION.—If an inde- analogy—there is gold in the hills if a or supplemented from time to time by the Com- pendent public accountant resigns from an en- firm offers a security. There are law- mission— gagement under paragraph (3)(A), the account- ‘‘(1) procedures designed to provide reasonable ant shall, not later than 1 business day fol- yers who are mining that gold for assurance of detecting illegal acts that would lowing the failure by the issuer to notify the themselves. Sometimes, even if a stock have a direct and material effect on the deter- Commission under paragraph (3), furnish to the price goes up, lawyers will race to mination of financial statement amounts; Commission a copy of the accountant’s report bring suits because they allege that ‘‘(2) procedures designed to identify related (or the documentation of any oral report given). they were not given information that party transactions that are material to the fi- ‘‘(c) AUDITOR LIABILITY LIMITATION.—No this company would have higher earn- nancial statements or otherwise require disclo- independent public accountant shall be liable in ings than anticipated. Imagine. If there a private action for any finding, conclusion, or sure therein; and is bad news, you are vulnerable. If ‘‘(3) an evaluation of whether there is sub- statement expressed in a report made pursuant stantial doubt about the ability of the issuer to to paragraph (3) or (4) of subsection (b), includ- there is good news, you are vulnerable. continue as a going concern during the ensuing ing any rule promulgated pursuant thereto. Mr. President, the purpose of the fiscal year. ‘‘(d) CIVIL PENALTIES IN CEASE-AND-DESIST courts and the American judicial sys- ‘‘(b) REQUIRED RESPONSE TO AUDIT DISCOV- PROCEEDINGS.—If the Commission finds, after tem is not to make these lawyers rich. ERIES.— notice and opportunity for hearing in a pro- It is to legitimately protect those who ‘‘(1) INVESTIGATION AND REPORT TO MANAGE- ceeding instituted pursuant to section 21C, that have been aggrieved; those who have MENT.—If, in the course of conducting an audit an independent public accountant has willfully been taken advantage of, who have suf- pursuant to this title to which subsection (a) ap- violated paragraph (3) or (4) of subsection (b), fered due to fraud, or who have suffered plies, the independent public accountant detects the Commission may, in addition to entering an or otherwise becomes aware of information indi- order under section 21C, impose a civil penalty due to the deliberate withholding of in- cating that an illegal act (whether or not per- against the independent public accountant and formation or insider trading. ceived to have a material effect on the financial any other person that the Commission finds was The question is not should these statements of the issuer) has or may have oc- a cause of such violation. The determination to suits be stopped. The contentious na- curred, the accountant shall, in accordance impose a civil penalty and the amount of the ture of this legislation comes from the with generally accepted auditing standards, as penalty shall be governed by the standards set question of how to protect the rights of may be modified or supplemented from time to forth in section 21B. our citizens and the integrity of the time by the Commission— ‘‘(e) PRESERVATION OF EXISTING AUTHORITY.— capital markets to assure there is not Except as provided in subsection (d), nothing in ‘‘(A)(i) determine whether it is likely that an insider trading, taking advantage of in- illegal act has occurred; and this section shall be held to limit or otherwise ‘‘(ii) if so, determine and consider the possible affect the authority of the Commission under formation, withholding information, or effect of the illegal act on the financial state- this title. misrepresenting facts to steal people’s ments of the issuer, including any contingent ‘‘(f) DEFINITION.—As used in this section, the money, and at the same time protect monetary effects, such as fines, penalties, and term ‘illegal act’ means an act or omission that companies from strike suits. damages; and violates any law, or any rule or regulation hav- Let me first commend my distin- ‘‘(B) as soon as practicable, inform the appro- ing the force of law.’’. guished colleagues, Senators DOMENICI (b) EFFECTIVE DATES.—The amendment made priate level of the management of the issuer and and DODD, for their tireless work in assure that the audit committee of the issuer, or by subsection (a) shall apply to each annual re- port— spearheading the effort to reform secu- the board of directors of the issuer in the ab- rities litigation. I also want to thank sence of such a committee, is adequately in- (1) for any period beginning on or after Janu- formed with respect to illegal acts that have ary 1, 1996, with respect to any registrant that Senator GRAMM for his leadership on been detected or have otherwise come to the at- is required to file selected quarterly financial this issue as chairman of the Securities tention of such accountant in the course of the data pursuant to the rules or regulations of the Subcommittee. audit, unless the illegal act is clearly incon- Securities and Exchange Commission; and Over the past 2 years, the Banking sequential. (2) for any period beginning on or after Janu- Committee has heard substantial testi- ‘‘(2) RESPONSE TO FAILURE TO TAKE REMEDIAL ary 1, 1997, with respect to any other registrant. mony that certain lawyers file frivo- ACTION.—If, after determining that the audit The PRESIDING OFFICER. The Sen- lous strike suits alleging violations of committee of the board of directors of the issuer, ator from New York. Federal securities laws in hopes that or the board of directors of the issuer in the ab- Mr. D’AMATO. Mr. President, S. 240, defendants will quickly settle. These sence of an audit committee, is adequately in- the Private Securities Litigation Re- formed with respect to illegal acts that have suits, which unnecessarily interfere been detected or have otherwise come to the at- form Act of 1995, is the bill we take up with, and increase the cost of, raising tention of the accountant in the course of the today. There is no doubt that this bill capital, are often based on nothing audit of such accountant, the independent pub- is considered by some to be rather con- more than a company’s announcement lic accountant concludes that— tentious. But this legislation is impor- of bad news, not evidence of fraud. In ‘‘(A) the illegal act has a material effect on tant and necessary to fix the problem addition, the fact that many of these the financial statements of the issuer; caused by frivolous lawsuits that are lawsuits are brought as class actions ‘‘(B) the senior management has not taken, making it difficult for companies to has produced an in terrorem effect on and the board of directors has not caused senior raise the capital needed to fuel our management to take, timely and appropriate re- corporate America. medial actions with respect to the illegal act; economy. S. 240 provides a strong disincentive and This bill seeks to strike the right for filing abusive lawsuits. It hits ‘‘(C) the failure to take remedial action is rea- balance, which is always difficult, be- strike suit artists where it hurts—in sonably expected to warrant departure from a tween protecting the rights of those the pocketbook. S. 240 does not contain standard report of the auditor, when made, or who are truly aggrieved and yet not a loser-pays provision. That would go warrant resignation from the audit engagement; opening the door to frivolous litiga- too far. A loser-pays provision makes it the independent public accountant shall, as tion. This legislation is necessary as difficult, if not impossible, for injured soon as practicable, directly report its conclu- there has developed a small but very investors to maintain a legitimate sions to the board of directors. effective cadre of lawyers who bring cause of action. ‘‘(3) NOTICE TO COMMISSION; RESPONSE TO suits not to help recover losses for Instead, the bill requires courts to FAILURE TO NOTIFY.—An issuer whose board of directors receives a report under paragraph (2) those who are truly aggrieved but be- make specific findings about whether shall inform the Commission by notice not later cause they see an opportunity to strike an attorney violated rule 11 and to than 1 business day after the receipt of such re- it rich for themselves. sanction attorneys who do. port and shall furnish the independent public There is a term for this kind of law- One study showed that, in the early accountant making such report with a copy of suit, they are called ‘‘strike suits.’’ A 1980’s every company in one part of the the notice furnished to the Commission. If the strike suit occurs when a lawyer business sector that had a market loss independent public accountant fails to receive a searches very carefully for negative of $20 million or more in its capitaliza- copy of the notice before the expiration of the news announcements by a company or tion was sued. Another survey of ven- required 1-business-day period, the independent public accountant shall— a decline in a company stock price. ture-backed companies in existence for ‘‘(A) resign from the engagement; or Then these lawyers race to the court- less than 10 years—small companies ‘‘(B) furnish to the Commission a copy of its house to file a suit alleging securities that are the engine of economic report (or the documentation of any oral report frauds, alleging mismanagement, or growth—showed that one in six of

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00051 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8892 CONGRESSIONAL RECORD — SENATE June 22, 1995 those companies had been sued at least S. 240 modifies the doctrine of joint expedition for evidence. And as one once. and several liability for peripheral de- witness told the committee, the over- These lawsuits are expensive. The fendants, who are named in the lawsuit broad discovery request in this typical statistics show that although many more for their deep pockets than their case ended up with the company pro- suits are still pending, these suits have culpability. ducing over 1,500 boxes of documents at consumed on average over 1,000 hours In the current system, if you have an expense of $1.4 million. Companies of management time and legal cost— any connection to the defendant com- cannot continue to spend the time and per case—of over $690,000 that the com- panies, if they can tie you in at all, you the money that these cases cost. So pany has had to pay out. That is a lot can be held liable for the full amount many times they are forced to settle of time and that is a lot of money. of the judgment. Even that defendant meritless cases. Does Congress want to let this trend who has only a scintilla of liability for As a result, investors do not have the continue? This Senator cannot sit idly wrongdoing, or culpability or neg- benefit of knowing about the future by and permit small businesses to be ligence—not gross negligence, not plans of a company because companies the target of abusive lawsuits. Most of knowing or wanton misconduct, not are afraid to make that information these companies are startup or high- fraud—has a chance of being held 100 available. As a former SEC Chairman technology businesses, which play an percent liable for damages. That is just told the committee, and I quote: important role in our economy. These not fair. That is wrong. Shareholders are also damaged due to the businesses provide new, innovative Who benefits from these settlements? chilling effect of the current system on the products to consumers, improving the Not the plaintiffs. According to the robustness and candor of disclosure. Under- quality of life and the way we conduct statistics, the victims of these so- standing a company’s own assessment of its business. called frauds generally get pennies on future potential would be amongst the most Small startup, high-technology firms valuable information shareholders and po- the dollar. They are just being used. tential investors could have. depend on research and development Not only is this unfair, but often the for their new products. As products investors do not understand exactly S. 240 will encourage companies to succeed, fail, or sometimes just take what the settlement represents, what make what we call forward-looking longer to develop, the stock price of their portion of the settlement is, or statements by reducing the threat of these companies may fluctuate. This why the lawyers even recommended abusive litigation. Companies that stock price fluctuation or product de- the settlement. make projections and that provide a velopment slowdown is not, on its face, S. 240 requires that certain informa- clear warning to investors that the evidence of fraud. Yet, in many States, tion be provided to class members and projections may not be accurate will be alleging that a product did not succeed that counsel be available to answer protected from costly litigation. and the price of the company’s stock questions about the settlement. Some have said that this safe harbor dropped is enough to sustain a com- No longer will attorneys be able to for forward looking statements would plaint in a securities fraud lawsuit. make a settlement for $6 million, $7 give license for companies to say any- S. 240 creates a uniform pleading million, and not properly inform the thing. That it will give license to the standard that will help to weed out people in the class. Nor will the attor- quick buck artist, the penny stock frivolous complaints before companies neys be able to pocket most of the set- guys, the people who come out with must pay heavy legal bills. S. 240, codi- tlement while class members receive IPO’s. This is not true. We have ex- fies the pleading standard of the second pennies for their losses. cluded newly started companies which circuit in New York, which requires As one witness told the committee, have not established a track record that a plaintiff plead facts giving rise and I quote: from this protection. Only recognized companies with substantial interests to a strong inference of the defendant’s As a stockholder, I feel that lawyers use fraudulent intent. the stockholders as a steppingstone, preying will get this protection. Most impor- Small, startup, and high-technology on their misfortune, as a means to file a law- tantly, if a defendant knowingly makes companies have become sitting ducks suit that will inevitably settle, in which the a false or misleading forecast, they are for securities fraud lawsuits. The costs lawyers will reap millions in fees while their not protected. of defending a securities fraud com- clients recover pennies on the dollar in their The statement that this legislation plaint, which does not have to show losses. will allow companies to knowingly lie any evidence of fraud, is enormous. Ac- S. 240 limits the award of the attor- and get away with it—and that state- cording to the American Electronics ney’s fees to a ‘‘reasonable’’ percentage ment has been made—is just not true. Association, who testified at one of the of the damages awarded to investors. If you knowingly lie, if you inten- committee’s hearings, of the 300 or so Notably, it is the investors who end up tionally mislead, you can be held lia- lawsuits filed every year, almost 93 paying the costs of these lawsuits. ble. There is no safe harbor for initial percent settle at an average settlement Institutional investors, with about public offerings, for blank check offer- cost of $8.6 million. $9.5 trillion in assets, approximately ings, for rollups, for penny stocks, for Furthermore, it is not just the com- $4.5 trillion of which are pension funds, tender offers and leveraged buyouts. pany that is sued. Other, peripheral, are long-term investors. This means Safe harbor does not affect the power deep-pocket defendants are joined to that the value of retirees’ pension fund to bring an enforcement case. ensure there is enough money available investments are adversely affected by Now, exactly who are the victims of to produce a meaningful recovery. As a abusive litigation. As the Council for securities fraud? Many times, there is result, underwriters, lawyers, account- Institutional Investors advised the no victim. Instead there is just a pro- ants, and other professionals have be- committee, and I quote: fessional plaintiff whose name appears come prime targets of securities fraud We are . . . hurt if the system allows some- in the lawsuits, these names appear lawsuits. Insurance companies that one to force us to spend huge sums of money time after time after time. In one case, provide director and officer liability in- in legal costs by merely paying ten dollars a retired lawyer appeared as the lead surance also pay up in these settle- and filing a meritless cookie cutter com- plaintiff in 300 lawsuits, he bought ments. In 1994 alone, insurers and com- plaint against a company or its accountants. small numbers of shares in many com- panies paid out $1.4 billion to settle se- Abusive litigation also severely im- panies and then served when they were curities fraud lawsuits. pacts the willingness of corporate man- sued. Last year, an Ohio judge refused Mr. President, this is not to say that agers to disclose information to the to permit class action certification, some of those suits may not have been marketplace. Many companies refuse noting that the lead defendant had bona fide. But all too often companies to talk or write about future business filed 182 class action suits in 12 years. are paying simply to stop the litigation plans, knowing that projections that Now, that is not what the private because they cannot afford the legal do not materialize will inevitably lead right of action is intended to do. bills or they cannot afford the incred- to lawsuits, many of which will simply S. 240 discourages the use of profes- ible negative exposure that a case can allege that a prediction did not come sional plaintiffs by eliminating the bring, especially under the system of true. Once discovery begins, plaintiff’s bonus payments to plaintiffs and pro- joint and several liability. counsel begins what we call a fishing hibiting referral fees. In other words, if

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00052 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8893 you are one of these people who bought curities fraud will not be left without tiveness. We are all counting on our 10 shares in 700, 800, or 900 companies remedy. The time for reform of this high-technology firms to fuel our econ- you can no longer receive a bonus when system is now. This bill has 51 cospon- omy into the 21st century. We are a lawyer uses your name for a suit. sors and I urge all of my colleagues to counting on them to lead the charge The practice of using professional support this legislation. It is well for us in the global marketplace, so to plaintiffs permits the lawyers to hire crafted. It is contentious only because speak. Those are the same firms that the client. Professional plaintiffs also it tries to strike a balance. Whenever are most hamstrung, I would point out, permit the lawyer to win the ‘‘race to you try to find a middle ground there by a securities litigation system that, the courthouse’’ in filing a complaint. are people on either side who think you frankly, works for no one, save plain- Often whoever files a claim first be- should go further in their direction. No tiffs’ attorneys. comes the lead plaintiff, the lead coun- one can doubt that the system is out of Over the past year-and-a-half the sel, even when multiple complaints are control and it needs fixing; that is process by which private individuals filed against the companies alleging se- what we attempt to do with this legis- bring securities lawsuits has been curities fraud. lation. under the microscope. The result of Because the huge settlements in Mr. President, I yield the floor. this intense scrutiny has been to dra- these cases provide significant fees to Mr. DOMENICI. Senator DODD, why matically change the terms of the de- counsel, the competition is fierce. This do you not proceed and I will follow bate. We are no longer arguing about bill creates a new procedure to ensure you, if it is all right? whether the current system needs to be that the plaintiffs who are legitimately Mr. DODD. Let me inquire, Mr. Presi- repaired. We are now focused on how damaged, who have a real stake, who dent, of my colleague from Maryland, best to repair it. Even those who once are not these professional plaintiffs, does my colleague from Maryland, the maintained that the litigation system who own 1 share or 10 shares in mul- ranking member of the banking com- needed no reform are now conceding tiple companies, can control the suit. mittee if he wishes to proceed first. I that substantive and meaningful This bill says the institutional inves- am obviously interested in the bill, but changes are required if we are to main- tors, the people who have billions in I also appreciate immensely the senior- tain the fundamental integrity of pri- pension funds, the retirees, those man- ity system. vate securities litigation. agers will have a greater stake in the Mr. SARBANES. We are quite happy The flaws, Mr. President, of the cur- case. to hear the three proponents of the bill rent system are simply too obvious to Can you imagine empowering some- who are on the floor now. We heard deny. The record is replete with exam- body who owns 10 shares to represent from Senator D’AMATO, and we would ples of how the system is being abused, you when you represent 500 million. be happy to hear from the Senator and misused. In fact, the Chairman of Someone who has a half billion dollars from Connecticut and Senator DOMEN- the Securities and Exchange Commis- invested could have no say in who the ICI. And then those of us who oppose it sion, Arthur Levitt, said at the begin- attorney will be, or what the eventual might have a chance to make our ning of this year—and I quote him— settlement will be while the case is statements. But I would be happy to ‘‘There is no denying,’’ he said, ‘‘that managed by someone who has only 10 defer to the Senator from Connecticut. there are real problems in the current shares. Then we can address his comments. system,’’—speaking of securities litiga- Mr. DOMENICI. Will the Senator Mr. DODD. I thank my colleague tion—‘‘problems that need to be ad- yield for some observations? from Maryland. dressed not just because of abstract Mr. D’AMATO. Certainly. Mr. President, let me begin by thank- rights and responsibilities, but because Mr. DOMENICI. The Senator said it ing my colleague from New Mexico. I investors and markets are being hurt would be managed by shareholders worked with him for a long time on by litigation excesses.’’ with 10 shares. this issue, Mr. President. We go back The legislation under consideration Mr. D’AMATO. That is what is tak- several years. This is not a recent today is based upon a bill that the dis- ing place now. event but rather goes back into the tinguished Senator from New Mexico Mr. DOMENICI. Actually, it is even previous Congress and before, so I and I have introduced for the last sev- worse than that because it is managed thank him for his tremendous efforts eral Congresses. While there are some by the lawyer of the shareholder of 10 in helping us fashion a piece of legisla- provisions from the original version of shares. tion here that we hope will attract the S. 240 that, frankly, I would have liked Mr. D’AMATO. Correct. Because in support of a substantial number of our to have seen included in this bill—and many cases the shareholder receives a colleagues. It has already, as my col- we will discuss that later—I under- bonus from the lawyer but is not other- league from New York pointed out— stand, as I think my colleagues do, the wise involved in the case. and I thank my colleague from New need to produce a consensus document Mr. DOMENICI. The lawyer calls York, the chairman of the Banking if you are going to proceed. Producing himself an entrepreneurial lawyer in Committee, for his leadership on this a balanced bill is never easy. The old this case. He is in business. It is not issue for setting up a set of hearings saw, Mr. President, that ‘‘if a com- the shareholder; it is the lawyer who is for us, timely hearings, and a markup promise makes everyone somewhat in the business of managing the law- of this legislation and bringing the bill angry, then it must be fair’’ is per- suit. In fact, I will quote some courts to the floor. fectly apt for today’s debate. But that that have found that to be the case. I also want to commend my colleague is what we have today, Mr. President, a Mr. D’AMATO. That is correct. I from Maryland who has a different bill that carefully and considerately thank the Senator for bringing this point of view on this legislation but balances the need for our high-growth point to the floor. Again I would like nonetheless is working cooperatively industries with the legitimate rights of to commend Senator DOMENICI and with us, expressing his points of view investors, large and small. Senator DODD who have labored for very forcefully and offered various I am proud of the spirit of fairness years to craft a bill that is fair, that is amendments in the committee, and I and equity that permeates this legisla- balanced, that protects those investors, am confident he will again on the floor. tion. I am also proud, Mr. President, of the small investors, the pension people, Mr. President, this is an important the fact that this legislation tackles a who have invested their life savings day for American investors and for the very complicated and difficult issue in and also protects businesses who raise American economy. This is the day we a thoughtful way that avoids excess the capital that keeps our communities start a full Senate debate on a bill that and achieves, I believe, and I think my healthy, from lawyers who go after would restore, in my view, fairness and colleagues from New York and New deep pocket firms and file suits against integrity to our securities litigation Mexico do, a meaningful equilibrium people just because their projections system. under which all of the interested par- did not come true. This bill will curb To some this may sound like a dry ties can survive and thrive. private securities fraud lawsuits, but and technical subject. But in reality it Moreover, Mr. President, perhaps only the frivolous ones that result is crucial to our investors, our econ- most importantly, this is a broadly bi- from abusive practices. Victims of se- omy and our international competi- partisan effort. This bill passed the

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00053 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8894 CONGRESSIONAL RECORD — SENATE June 22, 1995 Banking Committee 11–4, with strong sums of money in legal costs * * * when that It should not surprise anyone that support from both sides of the political plaintiff is disappointed in his or her invest- those who benefit most from the flaws aisles. And the 51 cosponsors of S. 240 ment. in the current system are the same in this body are composed of U.S. Sen- Our pensions and jobs depend on our em- people who are the most vociferous in ployment by and investment in our compa- ators from both parties, reflecting all nies. opposing the provisions in this bill that points on the so-called ideological If we saddle our companies with big and would clean up the mess. spectrum. H.L. Mencken once said, unproductive costs * * *. We cannot be sur- It is not the companies, nor investors every problem has a solution that is prised if our jobs and raises begin to dis- nor even plaintiffs—large or small— neat, simple, and usually wrong. Be- appear and our pensions come up short as who are fueling the opposition. lieve me, if there were a simple solu- our population ages. The loudest squeals come from the tion to the problem besetting securi- There lies the risk of allowing the lawyers who will no longer be able to ties litigation today almost everyone current securities litigation system to feather their nests by picking clean as in this Chamber would have jumped at continue to run out of control. Ulti- many corporate defendants as possible. it. But those problems are so pervasive mately, it is the average investor, the A second area of abuse is frivolous and complex that we have moved far retired pensioner who will pay the litigation. Companies, particularly in beyond the point where the public in- enormous costs clearly associated with the high-technology and bio-tech- terest is served by waiting for the this growing problem. nology industries, face groundless secu- courts or other bodies to fix them for Much of the problem lies in the fact rities litigation days or even hours us. that private litigation has evolved over after adverse earnings announcements. The private securities litigation sys- the years as a result of court decisions In fact, the chilling consequence of tem is far too important to the integ- rather than explicit congressional ac- these lawsuits is that companies, espe- rity and vitality of American capital tion. cially new companies in emerging in- markets to continue to allow it to be Private actions under rule 10(b) were dustries, frequently release only the undermined by those who seek to line never expressly set out by Congress, minimum information required by law their own pockets with abusive and but have been construed and refined by so that they will not be held liable for meritless suits. Let me be clear, Mr. courts, with the tacit consent of Con- any innocent, forward-looking state- President, private securities litigation gress. ment that they may make. is an indispensable tool with which de- But the lack of congressional in- In fact, I received a letter just this frauded investors can recover their volvement in shaping private litigation past Monday from Raytheon Co., one of losses without having to rely upon has created conflicting legal standards the Nation’s largest high-technology Government action. and has provided too many opportuni- firms. Raytheon made a tender offer of $64 a Mr. President, I cannot possibly over- ties for abuse of investors and compa- share for E-Systems, Inc., a 41-percent state just how critical securities law- nies. premium over the closing market suits brought by private individuals First, it has become increasingly price. Let me allow Raytheon to ex- are to ensuring public and global con- clear that securities class actions are plain what happened next: fidence in our capital markets. I be- extremely vulnerable to abuses by en- lieve that very deeply. These private trepreneurs masquerading as lawyers. Notwithstanding the widely held view that the proposed transaction was eminently fair actions help deter wrongdoing, help As two noted legal scholars recently to E-Systems shareholders, the first of eight guarantee that corporate officers, audi- wrote in the Yale Law Review: purported class action suits was filed less tors and directors, lawyers and others * * * The potential for opportunism in than 90 minutes after the courthouse doors properly perform their jobs. That is the class actions is so pervasive and evidence opened on the day that the transaction was high standard to which this legislation that plaintiffs’ attorneys sometimes act announced. Ninety minutes, Mr. President. seeks to return the securities litigation opportunistically so substantial that it This was a letter sent to me on June 19. system. But as it stands today, the cur- seems clear that plaintiffs’ attorneys often You tell me we do not have a problem rent system has drifted so far from do not act as investors’ ‘‘faithful cham- here. Minutes after announcement, the that noble role that we see more bucca- pions.’’ lawsuits, before any examination, any neering barristers taking advantage of It is readily apparent to many ob- inquiry is made, 90 minutes later there the system than we do corporate servers in business, academia—and is a lawsuit being filed for millions of wrongdoers being exposed by it. even Government—that plaintiffs’ at- dollars claiming unfairness. That is But there is more at risk, Mr. Presi- torneys appear to control the settle- what is wrong, and that is what this dent, if we fail to reform this flawed ment of the case with little or no influ- bill tries to correct. This ought not to system. Quite simply put, the way the ence from either the ‘‘named’’ plain- be a matter of division in this body. private litigation system works today tiffs or the larger class of investors. This is a mess, and it should be cleaned is costing millions of investors, the For example, during the extensive up. vast majority of whom do not partici- hearings on the issue before the Sub- No one lawyer could possibly have in- pate in these lawsuits, their hard- committee on Securities, a lawyer vestigated the facts this quickly. What earned cash. As Ralph Whitworth of cited one case as a supposed show- the lawyers want is to force a quick the United Shareholders Association piece—using his words—of how well the settlement. That is all this is. This is a told the securities subcommittee—I existing system works. This particular holdup. You would get arrested in most quote him—‘‘The winners in these suits case was settled before trial for $33 mil- States if you try to do this to a re- are invariably lawyers who collect lion. tailer. huge contingency fees, professional The lawyers asked the court for more The Supreme Court in Blue Chip ’plaintiffs,’ who’’—as our colleague than $20 million of that amount in fees Stamps versus Manor Drug Store from New York has already described— and costs. The court then awarded the echoed this concern about abusive liti- ‘‘collect bonuses, and, in cases where plaintiffs’ lawyers $11 million and the gation, pointing out: fraud has been committed, executives defense lawyers for the company $3 [I]n the field of Federal securities laws and board members who use corporate million. governing disclosure of information, even a complaint which by objective standards may funds and corporate-owned insurance Investors recovered only 6.5 percent of their recoverable damages. That is have very little success at trial has a settle- policies to escape personal liability. ment value to the plaintiff out of any pro- 1 The one constant,’’ he went on to say, 6 ⁄2 cents on the dollar. portion to its prospect of success at trial . . . ‘‘is that the shareholders pay for it That is a case cited by those who are the very pendency of the lawsuit may frus- all.’’ opposed to this legislation as a show- trate or delay normal business activity of And Maryellen Anderson from the case example of how the system works. the defendant which is totally unrelated to Connecticut Retirement and Trust This kind of settlement sounds good the lawsuit. Funds testified that the participants in for entrepreneurial attorneys, but it The third area of abuse is that the the pension funds, does little to benefit companies, inves- current framework for assessing liabil- * * * are the ones who are hurt if a system tors or even the plaintiffs on whose be- ity is simply unfair and creates a pow- allows someone to force us to spend huge half the suit was brought. erful incentive to sue those with the

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00054 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8895 deepest pockets, regardless of their rel- I would like to go into each of these persons who knowingly engage in a ative complicity in the alleged fraud. provisions in a bit more detail. fraudulent scheme, thus keeping a The result of the existing system of EMPOWERING INVESTORS heavy financial penalty for those who joint and severable liability is that The legislation ensures that inves- would commit knowing security fraud. plaintiffs’ attorneys seek out any pos- tors, not a few marauding attorneys, The bill restores the ability of the sible corporation or individual that has decide whether to bring a case, whether Securities and Exchange Commission little relation to the alleged fraud—but to settle, and how much the lawyers to pursue those who aid and abet in se- which may have extensive insurance should receive, and that is the way it curities fraud, a power that was dimin- coverage or otherwise may have finan- ought to work. ished by the Supreme Court in last cial reserves. The bill strongly encourages the year’s Central Bank decision. Although these defendants could fre- courts to appoint the investor with the The bill clarifies current require- quently win their case were it to go to greatest losses—usually an institu- ments that lawyers should have some trial—we all know it happens—the ex- tional investor like a pension fund—to facts to back up their assertion of secu- pense of protracted litigation and the be the lead plaintiff. rities fraud by adopting the reasonable threat of being forced to pay all the This plaintiff would have the right to standards established by the Second damages makes it more economically select the lawyer to pursue the case on Circuit Court of Appeals. Again, Mr. efficient for them to settle with the behalf of the class. President, imagine that—you have to plaintiffs’ attorneys, and that is what So for the first time in a long time, have facts to back up your assertion. I happens. plaintiffs’ lawyers would have to an- thought that is what they taught you. The current Chairman of the SEC, swer to a real client, not one they have I learned that in the first year of law Arthur Levitt, as well as two former hired. school. Now I have to write it into the Chairmen, Richard Breeden and David We are bringing an end to the days legislation here because we get these Ruder, have all spoken out against the when a plaintiffs’ attorney can crow to 90-minute lawsuits being filed. So we abuses of joint and several liability. Forbes magazine that ‘‘I have the require that in the bill as well. Chairman Levitt said at the April 6 greatest practice of law in the world. I This legislation is there for using a hearing of the Securities subcommittee have no clients.’’ pleading standard that has been suc- that he was concerned, in particular, That is one of the lawyers talking. A cessfully tested in the real world. This practice without clients, and that is ‘‘about accountants being unfairly is not some arbitrary standard pulled what this has turned into. charged for amounts that go far beyond out of a hat or crafted in committee; it The bill requires that notice of set- follows the Federal courts. their involvement in particular fraud.’’ tlement agreements that are sent to Frequently, these settlements do not The bill requires the courts, at set- investors clearly spell out important tlement, to determine whether any at- appreciably increase the amount of facts such as how much investors are torney violated rule 11 of the Federal losses recovered by the actual plain- getting—or giving up—by settling and Rules of Civil Procedure, which pro- tiffs, but instead add to the fees col- how much their lawyers will receive in hibits lawyers from filing claims that lected by the plaintiff’s attorneys. the settlement. they know to be frivolous. Again, the current system has de- This means that plaintiffs would be If a violation has occurred, the bill volved to a point where it favors those able to make an informed decision mandates that the court must levy lawyers who are looking out for their about whether the settlement is in sanctions against the offending attor- own financial interest over the interest their best interest—or in their lawyers’ ney. Though the bill does not change of virtually everybody else involved, best interest. existing standards of conduct, it does and that is the fact. Again, what a radical thought to be put some teeth into the enforcement of The bill before us today contains four included in the bill, allowing the plain- these standards. major initiatives to deal with these tiffs to decide what is in their interest The bill provides a moderate and, I complex problems. Let me identify rather than the attorneys deciding it. think, thoughtful statutory safe harbor them briefly. The fact we even have to write this for predicative statements made by First, the legislation empowers in- into law tells you volumes about the companies that are registered with the vestors so that they, not their lawyers, mess the present system is in. SEC. have greater control over their class And the bill would end the practice of Further, the bill provides no such action cases by allowing the plaintiff the actual plaintiffs receiving, on aver- safety for third parties, like brokers, or with the greatest claim to be the age, only 6 to 14 cents for every dollar in the case of merger offers, tenders, named plaintiff and allowing that lost, while 33 cents of every settlement roll-ups, or the issuance of penny plaintiff to select their counsel. dollar goes to the plaintiffs’ attorneys. stocks. There are a number of other ex- That sounds so commonsensical, I do This is the average you get back as a ceptions to the safe harbor provisions, not know why we have to write it into plaintiff under the present system. as well, Mr. President, which my col- law, but that is what you have to do. In The bill would require that the leagues can look at. fairness to the plaintiff, that ought to courts cap the award of lawyers’ fees Importantly, anyone who delib- be the lead plaintiff. based upon how much is recovered by erately makes a false and misleading Second, it gives investors better the investors. And that is what it statement in a forecast is not pro- tools to recover losses and enhances ex- ought to be, how much do the investors tected by the safe harbor. My colleague isting provisions designed to deter get back as plaintiffs, then you set the from New York made that point, and I fraud, including providing a meaning- fees. emphasize it again here this afternoon. ful safe harbor for legitimate forward- Simply putting in a big bill will not By adopting this provision, the Sen- looking statements so that issuers are guarantee the lawyers multimillion- ate will encourage, we think, respon- encouraged, instead of discouraged, dollar fees if their clients are not the sible corporations to make the kind of from volunteering much-needed disclo- primary beneficiaries of the settle- disclosures about projected activities sures that potential investors ought to ment. that are currently missing in today’s have in making decisions about wheth- Taken together, Mr. President, these investment climate. er to invest or not. provisions should ensure that de- This legislation preserves the rights Third, it limits opportunities for friv- frauded investors are not cheated a sec- and claims of small investors. The leg- olous or abusive lawsuits and makes it ond time by a few unscrupulous law- islation preserves the rights of inves- easier to impose sanctions on those yers who siphon huge fees right off the tors whose losses are 10 percent or lawyers who violate their basic profes- top of any settlement. more of their total net worth of sional ethics. The bill requires auditors to detect $200,000. Fourth, it rationalizes the liability of and report fraud to the SEC, thus en- These small investors will still be deep-pocket defendants, while pro- hancing the reliability of independent able to hold all defendants responsible tecting the ability of small investors to audits. for paying off settlements, regardless fully collect all damages awarded them The bill maintains current standards of the relative guilt of each of the through a trial or settlement. of joint and several liability, for those named parties.

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00055 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8896 CONGRESSIONAL RECORD — SENATE June 22, 1995 But while the bill will fully protect working on this legislation—actually, Now, our country is suffering from small investors, so that they will re- it came to me after reading some arti- hyperlexia. That is a nice word, and I cover all of the losses to which they cles about the litigation and the con- believe it means a serious disease are entitled, the bill establishes a pro- tention of both sides as to what was caused by an excessive reliance on law portional liability system to discour- happening to class action lawsuits as and lawyers. Hyperlexia. It is a dis- age the naming of deep-pocket defend- they applied to securities and to com- ease—and a disease it is. For those who ants, merely because they have deep panies that issued stocks and securities think that hyperlexia, relying upon pockets. and bonds—I came to a conclusion that law and lawyers, is the basic ingredient The court would be required to deter- it would be a very interesting thing to for good regulation, for good behavior, mine the relative liability of all the de- look into and, perhaps, see what I you have just told the American people fendants and thus deep-pocket defend- could do. that it is going to cost you an awful lot ants would only be liable to pay a set- I made one glaring mistake. I had ar- of money for that, because it is incon- tlement amount equal to their relative rived at the conclusion that there was clusive, and very vague. Each case sets role in the alleged fraud. something very, very wrong, but I its own pattern. So people do not know A defendant who was only a 10 per- failed to understand, I say to my friend how to behave and what the law is. cent responsible for the fraudulent ac- and cosponsor—and we varied. I put it in one time and the Senator put it in So from this Senator’s standpoint, I tions would be required to pay 10 per- do not think we would be here if it cent of the settlement amount. the next time. It was Domenici-Dodd and then Dodd-Domenici. But I failed were not for the chairman of the Bank- In some circumstances, the bill re- ing Committee, the distinguished Sen- quires solvent defendants to pay 150 to recognize how those lawyers, small in number, for this is not the whole of ator from New York, Senator D’AMATO, percent of their share of the damages who took this cause on and, obviously, to help make up for any uncollectible America, this is a small group. I failed to recognize or perceive how tough is leading it here on the floor today. He amount in the lawsuit. brought a balance to it, because he had By creating a two-tiered system of they were going to be in saving their domain—and tough they are, and tough a feel for both sides. I thank him to- both proportional liability and joint they are to this day. They are getting night because we are going to make and several liability, the bill preserves people to run advertisements in our some good, solid law. When it is inter- the best features, I think, of both sys- States—in my State, it is not so easy preted by our courts and by the bar of tems. because Representative RICHARDSON, a America, we are going to end up doing There has been an unfortunate tend- Democrat, voted for the House reform; right, because those who are cheating ency during the course of many debates I am for it here, and all the Represent- and ripping off stockholders—they are on these proposed reforms for advo- atives from New Mexico voted for it. I going to still get stuck, but those cates on both sides to increase the do not know where Senator BINGAMAN doing almost nothing wrong, except rhetoric, to use increasingly extreme is, but he was a cosponsor. Maybe he their company’s stock price goes up or examples in order to politicize and po- does not like the bill on the floor. So I down, they are no longer going to get lemicize the atmosphere of this debate. am not talking for myself on these ads. stuck for millions in settlements just When the steam of overheated rhet- Can you imagine what point we have to pay to the lawyers. oric blows off, when the extremists on reached, in terms of lawyering, and the So, from this Senator’s standpoint, I both sides have been discounted, I be- old concept of who the lawyers work do not usually use words like vexatious lieve we are left with the inescapable for? Who do they belong to? They be- or vexatiousness, but I found that the conclusion: Action is needed—and long to the justice system and they Supreme Court described this con- needed now, Mr. President—to make work for the courts of America. Here fusing system, ‘‘presents a danger of the securities litigation system work they are running ads and protecting vexatiousness, different in degree and in the manner for which it was de- their domain. It is rather amazing. I kind from that which accompanies liti- signed. never thought we were going to get gation in general.’’ I believe my good A system of litigation in which mer- into this when we started down this its and facts matter little, in which path, but I soon found out. friend Senator DODD alluded to that; plaintiffs recover less than lawyers, in I want to say that, while this cries that is, there is a degree and a kind of which defendants are named solely on out for reform, apparently our judges vexatiousness about this that is much the basis of the amount of their insur- are not going to make the reform, al- different from a normal complaint in a ance coverage, or the size of their wal- though they created the rules; these lawsuit in negligence or other Common lets, does not serve us well at all. are court-created private rights of ac- Law torts. In short, we have a system in which tion, as I understand it. Section 10b So let me define the word. I tried to there is increasingly little integrity private lawsuits are not statutory. find out what does the word means, be- and confidence—a system incapable of Judges created it. They are not going cause to me it meant to bring fear or producing confidence and integrity in to fix it. Although, there seems to be a such. It comes from a verb, to vex, our Nation’s capital markets. tendency, in the last 6 months, for the which means, ‘‘to harass, to torment, This bill is an important step in re- judges to be a little more through this to annoy, to irritate and to worry.’’ pairing an ailing system. It is a bill process. Senator DODD explained that And, as a noun it is synonymous with that has strong bipartisan support somewhere they caught them red-hand- ‘‘troublesome.’’ In the legal context it within this Chamber. And it has broad ed. Ninety minutes after an announce- means ‘‘a case without sufficient support outside these walls, as well, ment of a merger intention, they are grounds brought in order to cause an- from virtually every segment of the suing for collusion or fraud and just noyance to the defendant or a pro- business and investment community. claiming huge damages. The courts are ceeding instituted maliciously and Mr. President, this legislation needs beginning to say, ‘‘What is this?’’ without probable cause.’’ to be enacted and I urge my colleagues But I began to find out, when we to support it. started having our first hearings, that It is time that we stop vexatious se- Mr. President, I noted that our col- we were talking about some very, very curities litigation, and fix it we will. league from New Mexico was on the rich lawyers—not rich over 40 years of During our hearings—and I am no floor. I do not know whether or not he practice or an accumulation of assets, longer on the Banking Committee, and is still here. I see him now. but because they made millions every I will help the chairman out wherever I yield the floor, and we will now year—not a few hundred thousand dol- I can for the next couple of days as we hear from the Senator from New Mex- lars, but millions. And surely it would attempt to pass this legislation, but ico. be tough for them to ever appreciate obviously the responsibility and the The PRESIDING OFFICER (Mr. that maybe they were not adding very credit is to the Banking Committee INHOFE). The Senator from New Mexico much of a positive nature to the United and those who are working on it now. is recognized. States society, or to securities or During the hearings, we found that Mr. DOMENICI. Mr. President, might bonds or stocks, or to the plaintiffs the threat of a huge jury award is I first say that when I first started that they sued for as a class. being misused to sue emerging, rapidly

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00056 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8897 growing companies, especially in the guished lawyers, who said in Forbes in one case as ‘‘the unluckiest investor high-technology and biomedical tech- magazine, ‘‘The reason this is a great in the world’’ because he was always nologies where stock prices are volatile practice is because there are no cli- suing for losses. He did not invest in under the best of circumstances. A ents.’’ order to make any money. He invested drop in a stock price is all that these— These are clientless lawsuits. These so he could be a professional plaintiff, and I will call them, for the remainder are clientless lawyers who claim to be and he was in court so often the judge of my discussion on the floor, I will acting in the best interests of inves- referred to him in that manner. name those lawyers involved in this as tors. The institutional investors be- Mr. DOMENICI. I was not there when a new kind of lawyer. I will call them lieve that these lawsuits are merely that was done and I do not recall it, entrepreneurial lawyers, because they transferring money from one set of but it surely seems right to me. And if are in it to manage the suit, and in a shareholders to another with the plain- you say it, it happened. It is exactly very real sense the lawsuit becomes tiffs’ class action lawyers taking a what is happening. their business rather than the business lion’s share. That looks a lot like The race to the courthouse has been of the plaintiff. The way it is currently greenmail. described by both the chairman of the structured, they do not even have to Mr. BENNETT. Will the Senator full committee and by Senator DODD. I respond to anyone. yield for a question? will not proceed beyond saying that Let me proceed. Mr. DOMENICI. I will be pleased to whenever you find, in the American ju- Cases settle regardless of merit. We yield. dicial system, that a substantial por- could go on with many, many reasons Mr. BENNETT. You speak of tion of a certain kind of lawsuit is for this litigation not serving the pub- clientless lawyers and clientless cases. based upon the premise that whoever lic good. But let me wrap up with just Is that the reason all of the money gets to the courthouse first gets to one on this first part of my comments. goes to the lawyers and not to the cli- control the lawsuit, then it seems to ents? This system is not deterring fraud be- me you do not have to have that situa- Mr. DOMENICI. You got it. As a mat- cause insurance companies, most of the tion very long until you ought to look ter of fact, what it really means is that and see what is this all about? Because time, make the settlements and pay the lawyers have quickly become more it is an invitation to craft poor com- the money. So what we have and what interested in settling a lawsuit on plaints, to state anything you want or is wrong with this system is very, very terms that are satisfactory to their invent things and then waste a year fundamental. Lawyers, not clients, pockets. So, if it looks like they can and a half of time, money, and take control these cases. That is number fight on but they are going to get $6 depositions to try to find out whether one. million in this settlement and the oth- Number two, this system obstructs ers are going to get 8 cents on their you have a lawsuit or not. When I voluntary disclosure of information. shares, that is looking pretty good. started practicing law—maybe that is Who will voluntarily disclose informa- What prevents it from happening? passe—that was not the way to prac- tion when they are apt to be liable for Maybe the judges are getting more in- tice. Now it seems to be for many of just doing that? volved now. But, normally, for many those, and they would like to keep it And the last is defendants are forced and many a year, nobody had anything that way for this system. to settle meritless cases. When you add to say about it. In reality, although if It also makes us do sloppy legal that up, it is time to change the sys- you had a lawyer here, he would tell work—not us but those who are doing tem. you that he is bound by this and he is it—sloppy legal work. The cookie-cut- The Wall Street Journal labeled bound by that and the judge can do this ter complaint, which is probably the these cases as ‘‘the class action shake- and the judge can do that. But history one the Senator referred to as to down racket.’’ That is what it is, a says they are getting the lion’s share Raytheon—cookie-cutter complaint. shakedown racket. of the money and the client or plaintiff All the allegations are the same, case Let me talk about who wins when is not getting very much. after case. Senator D’AMATO, we have one of these lawsuits is settled, for this Does one think the client is man- one, they always use the same allega- is the most significant part of it all. In- aging the case and calling the shots? In tions and the same words. The lawyers vestors are only recovering about 7 many cases the members of the class just change the name of the company cents on the dollar when compared do not even know what is happening. being sued—it pops out of the com- with the amount of losses alleged. The Let me also tell you, plaintiffs are not puter. In fact, I think some of them lawyers earned on average $2.12 million making very much unless they are very have terminals where they are hooked per settlement, about 30 percent of the fortunate. If they are professional into the stock market. The stock is whole, during a 12-month period ending plaintiffs, they are doing pretty well going to fluctuate and the computer is July of 1993 according to a study by the because they receive bonuses of $10,000 going to spit out a lawsuit. National Economic Research Associa- to $15,000 for letting the lawyers use The lawyer just signs his name on it. tion. their names, and, frankly, we are going But a judge took one of these not so Other studies confirm that investors to prohibit that. I think that ought to lightly because a plaintiff’s lawyer in- recover only 6 to 14 cents under the be prohibited and should have been pro- serted in the complaint the name of system. Obviously, the system is not hibited. It has no place in solid the company he was suing: Philip Mor- working, because the SEC and others lawyering. What happens is some peo- ris. They accused Philip Morris of who have analyzed it say that a sys- ple have shares in 300 or 400 companies fraudulently manufacturing toys, t-o- tem, to be working, is supposed to do and the lawyers the same person’s y-s, not cigarettes. Philip Morris does the following. The primary yardstick is name on 20, 30, 50 lawsuits. These are not manufacture toys, a typical cookie that it enables defrauded investors to individuals with 10 shares and the law- cutter complaint—a demand for hun- seek compensatory damages and there- yers give them this bonus. The rest of dreds of millions of dollars in damages. by recover the full amount of their the class does not make very much, but This bill is about stopping this kind of losses. So we ought to start by meas- that fellow does very well. I think we lawsuit. It is shoot, aim, ready. Instead uring this system against the criterion had one, Mr. President, who was 92 or of ready, aim, shoot, it is shoot, aim, of full amount of losses recovered. You 94 years old that we found out—do you ready. will find it fails. On a scale of A remember that case? He had a lot of The National Association of Securi- through F—F being failure. It gets these. He had 10 shares of stock and he ties and Commercial Lawyers suggests worse than an F in terms of its ineffec- was a very big friend of these entrepre- that 56 percent of the cases they had tiveness. neurial law firms. He was readily avail- hand picked to provide data on to the As investors are recovering a few able. He pulled the trigger. Securities Subcommittee were filed cents on the dollar, attorneys are Mr. BENNETT. Will the Senator within 30 days of the triggering event. boasting that these securities class ac- yield further? A triggering event is usually a missed tions are a perfect practice, according Mr. DOMENICI. I am pleased to. earnings projection, a so-called earn- to—I think my friend from Connecticut Mr. BENNETT. It is my under- ings surprise. Twenty-one percent of quoted this one—one of these distin- standing that the judge referred to him the cases were filed within 48 hours of

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00057 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8898 CONGRESSIONAL RECORD — SENATE June 22, 1995 the triggering event. The stock prices Prof. Joseph Grundfest of Stanford the defendants may also join in this dropped, and class action suits are filed Law School has said that the plaintiffs collusion by passing on the cost of the with little due diligence to investigate lawyers have done little if anything to settlement to absent parties, such as the basis of the case. earn their hefty request. insurers.’’ But you can count on it. If the law- Says Grundfest: ‘‘much of the settle- The plaintiffs’ lawyers like to sue the yer is a good entrepreneur and sticks ment would have come about even if no officers and directors, and the account- with it, he will get paid something lawsuit was filed * * * to reward law- ants, underwriters and issuers. These even for that kind of suit, whether yers for that at all is the equivalent of cases are brought under joint and sev- there is anything to the suit. Compa- double-dipping.’’ eral liability which means that any one nies have to settle. Mesa Airlines’ officers and directors defendant could be made to pay the en- Of the 111 cases filed in 1990 and 1991, were sued for keeping their mouth tire judgment even if he or she were 25 percent were filed by pet plaintiffs, shut. They had a corporate policy not only marginally responsible. If a per- the plaintiff that we described a while to talk to analysts. The analysts make son is one percent liable he/she could ago. In 25 percent of the cases, they some projections about Mesa. The air- be asked to write a check for 100 per- went out and hired the plaintiff and line neither confirmed nor denied cent of the awarded damages. That is paid them a bonus. Even if they had a whether they agreed or disagreed with not fair. lawsuit that was decent, the point of it the analysts. The mesa officers just Our bill builds upon the State law is that was an effort to get to the tried to run an efficient airline. The trend of imposing proportionate liabil- courthouse quick with the pet plaintiff. plaintiff’s lawyers have alleged that ity. So you could be the lead counsel, or at Mesa’s failure to talk about analysts’ Under proportionate liability each least you could maybe be representing projections was ‘‘deemed to be accept- person found responsible pays a share $500 million worth of securities for a ance’’ of the content of the analysts’ of the damages that is equivalent to $150, $200, $300 pet plaintiff. prediction. The company missed the the harm he or she caused. So from this Senator’s standpoint, earnings projections, their stock price Our bill would retain joint and sev- the bill before us is a very good ap- dropped, and they got sued. eral liability for the really bad actors, proach to settling and solving these Prudential Bache Securities. Inves- but would provide proportionate liabil- problems. As I see it, the details of this tors represented by the firm who testi- ity for those parties only incidentally bill will be debated and amendments fied before the committee received 4 involved. In response to the Securities will be offered. So I am not going to go cents on the dollar under the class ac- and Exchange Commission’s staff con- into details. tion lawsuit settlement. The firm took cern we also included a special provi- But I would like to just close with $6 million plus expenses. Other inves- sion to address the problem of the in- one current situation. I know about it tors who hired their own lawyers, and solvent codefendant. We believe this because a company has one of its big- went to arbitration came away fully provision strikes the correct balance. gest production plants in New Mexico. compensated. This liability reform is important to The general counsel for Intel testified Frivolous litigation is time-con- outside officers and directors, auditors that Intel had been sued. When it was suming and distracts chief executive and others who often get named in the a startup, such a suit probably would and other corporate officials from pro- law suit but who have little if any true have bankrupted the company long be- ductive economic activity. It has been liability. It helps change the economics fore it investigated in microchips. estimated that defending one of these that drive these frivolous cases. This is an example of the innovation lawsuits is as costly as starting up a BIG MONEY DAMAGES and entrepreneurship that these cases totally new product line. The system seeks huge monetary re- are threatening to snuff out. So let me These frivolous lawsuits are such a coveries from outside directors, outside give you one about Intel. If this had menace to publicly traded companies lawyers, and independent accountants been filed when it was a young com- on the NASDAQ that the NASDAQ who may be only marginally involved pany, we would not have Intel. Self-Regulatory Organization decided in activities for which corporate offi- On December 19, 1994, Intel was sued to recommend reforms to Senator cers should be primarily liable. Experi- over the flaw in the Pentium chip. De- DODD and me. enced people are declining to serve on spite the fact that it would take 29,000 SYSTEM IS BROKEN boards because of the liability expo- years for the chip’s flaw to become ap- The conclusion of any one who has sure. This denies growing companies parent, and despite the fact that on De- examined the issue carefully is: The the expertise they need to succeed. The cember 20, 1994, Intel responded to mar- current securities implied private liti- system is not deterring fraud because ket concerns about the chip by imple- gation system is broken. The system is insurance companies pay most of the menting its ‘‘no questions asked’’ re- broken because too many cases are settlement amount. placement policy. The lawyers who pursued for the purpose of extracting The current system also discrimi- filed on December 19 are asking $6 mil- settlements from corporations and nates against defendants. People who lion in fees for 1 day’s work. Even other parties, without regard to the have deep pockets are often named in though they dropped the suit and Intel merits of the case. The settlements the law suits to coerce settlements. Ac- did not have to pay anything to the yield large fees for plaintiffs’ lawyers countants bear the brunt of our current shareholders, the lawyers have inserted but compensate investors only for a system of joint and several liability. a provision in the settlement which fraction of their actual losses. Janet Suing the accountant insures that the forbids defendants, the defendant Intel, Cooper Alexander of Stanford Univer- settlement will be 50 percent larger be- from publicly discussing the fee or any sity has proven that most securities cause of their deep pocket. other provision of the settlement. class actions are settled by the parties The fundamental purposes of the S. 240 before this Senate would re- without regard to whether the case has Federal securities laws are to promote quire disclosure of settlements, even merit. Chairman of the SEC, Arthur investor confidence and deter fraud. this kind of settlement—nothing to the Levitt acknowledged that ‘‘virtually But the system is failing its deterrent plaintiffs, everything to the lawyers. all securities class actions are settled mission. A system where the merits With better disclosure I doubt whether for some fraction of the claimed dam- don’t matter isn’t a deterrent. A sys- that will happen very often. ages, and some alleged that settle- tem where most settlement funds are Can you imagine a public disclosure ments often fail to reflect the under- paid by insurance companies isn’t a de- for that? We did not do anything for lying merits of the cases. If true, this terrent. anyone, but we get $6 million. That is means that weak claims are overcom- A system that is having a chilling ef- nice. It is interesting. Would you not pensated and strong claims are under- fect on corporate disclosure is actually like to be doing that? It is pretty good. compensated.’’ Prof. John Coffee has working at cross-purposes with its ob- It might even be better than being a concluded the plaintiffs’ attorneys in jective. Class action securities cases Senator. Who knows? many securities class actions appear to inhibit voluntary disclosure by cor- Well, there are many more like this. ‘‘sell out their clients in return for an porations, discouraging them from I have a great deal of explanation. overly generous fee award,’’ and that making any public statements except

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00058 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8899 when absolutely required, for fear that agree with investors, the SEC, and se- about certain categories of information anything they say which might move curities analysts. As the California provided that the prediction is made in the company’s stock price might trig- Public Employees Retirement System good faith with a reasonable basis. Cur- ger a lawsuit. [CALPERS] recently stated, ‘‘forward- rently, this SEC safe harbor rule actu- In order for our capital markets to looking statements provide extremely ally discourages issuers from volun- function efficiently, for Wall Street an- valuable and relevant information to tarily disclosing this information. To alysts to evaluate stocks, or for main investors.’’ quote the SEC: street investors to buy, hold, or sell a SEC Commissioner Arthur Levitt re- Some have suggested that companies that stock, they need a lot of information. cently wrote: ‘‘There is a need for a make voluntary disclosure of forward-look- An important type of information is stronger safe harbor than currently ex- ing information subject themselves to a sig- the projections of how the company ists. The current rules have largely nificantly increased risk of securities anti- will do in the future—the so-called for- been a failure * * *.’’ fraud class actions.’’ As such, ‘‘contrary to ward-looking statement. Former SEC Chairman Richard the Commission’s original intent, the safe By its definition, a forward looking Breeden testified: harbor is currently invoked on a very lim- ited basis in the litigation context.’’ Critics statement is a prediction about the fu- Shareholders are also damaged due to the state that the safe harbor is ineffective in chilling effect of the current system on the ture. Earnings projections, growth rate ensuring quick and inexpensive dismissal of robustness and candor of disclosure. . . . Un- projections, dividend projections, and frivolous private lawsuits. (SEC Securities derstanding a company’s own assessment of expected order rates are examples of Act of 1993 Release No. 7101, October 1994) forward looking statements. Pre- its future potential would be among the most valuable information shareholders and An American Stock Exchange survey dictions about the future have become potential investors could have about a firm. supports that conclusion. It found that one of the more common types of frivo- Second, if you believe that disclosure 75 percent of corporate CEO’s limit the lous securities lawsuits filed. information disclosed to investors out Few people know why it is important of information helps investors make of fear that greater disclosure would for the bill to provide a safe harbor for intelligent decisions you should be lead to an abusive lawsuit. predictive statements. Let me ask a calling for reform because the very na- As the SEC has realized, forward- few questions to help my colleagues ture of forward-looking statements looking statements are predictions— understand. makes them particularly fertile ground First, do you believe that earnings for abusive lawsuits. If a company fails not promises. This bill recognizes that projections about the future are prom- to meet analysts’ profit expectations, a reasonable basis for such information ises? or production of a new product is de- doesn’t have to be a unanimous basis. Second, do you believe stock vola- layed, it is often faced with a law suit. This bill creates a statutory safe har- tility is stock fraud? As a result, companies are increasingly bor which: Third, do you believe that projec- reluctant to disclose forward-looking Provides a clear definition of ‘‘for- tions about future earnings should be information. Numerous studies have ward looking statement’’ for both the unanimous among every single em- documented this trend. According to 1933 and 1934 acts; ployee in the company in order for that testimony given by James Morgan, Na- Covers written and oral statements; prediction to be eligible for protection tional Venture Capital Association, Requires that the predictive state- for abusive lawsuits? one study found that over two-thirds of ment contain a Miranda warning de- Fourth, do you believe that it is venture capital firms were reluctant to scribing the statement as a prediction fraud when an officer or director or discuss their performance with ana- and a disclosure that there is a risk other employee receives a significant lysts or the public because of the that the actual results may differ ma- portion of his compensation in stock threat of litigation. terially from those predicted; options sells stock regularly? Keeping quiet is not an escape route No safe harbor protection for state- Fifth, if you believe that any state- from these frivolous cases. One com- ments knowingly made with the expec- ment about future performance can, pany in my State had a policy not to tation, purpose, and actual intent of and should be used against you no mat- talk to analysts which developed from misleading investors. There is no so- ter how well intended, no matter how a fear of being sued. But they were called license to lie under this bill; well reasoned, regardless of how dra- sued anyway for failing to disagree Protects statements made by issuers, matic circumstances change? with an analysts’ projection. The legal persons acting on their behalf such as The five statements I just read are theory was that the company incor- officers, directors, employees, and out- the basis for most predictive state- porated by silence the analysis’s esti- side reviewers retained by the issuer. ment, class action securities cases. mations. Mesa Airlines is not the only Accounting and law firms are eligible To me, these cases represent every- company to be sued for keeping its for the safe harbor, brokers and dealers thing that I find discouraging about mouth shut. are not; our legal system—professional plain- Third, if you recognize that pre- No safe harbor protection for initial tiffs, fishing expeditions for docu- dictions about the future do not always public offerings [IPOs], penny stocks, ments, boiler-plate fraud accusations, come true and that investing has some roll-up transactions and issuers who contingency fee lawyers, and settle- risks attached, you should support the have violated the securities laws; ment that resemble legal blackmail. statutory safe harbor: Institutional in- Provides the SEC with new authority A safe harbor is needed to encourage vestors are the most professional, so- to sue for damages on behalf of inves- companies to make information avail- phisticated investors in our markets. tors in predictive statement cases. The able. To keep the system honest, there In addition, they have a fiduciary duty SEC’s recovery should be much better are laws on the books to make sure to retirees to prudently manage their than the average of 6 cents on the dol- that executive trades do not create pension funds. These institutional in- lar currently recovered by private at- even the appearance of illegal insider vestors have argued that forward look- torneys; trading, the process is highly regulated ing statements accompanied by warn- Encourages SEC to review the need by the SEC. In addition, most compa- ings should be per se immune from li- for additional safe harbors. nies have their own internal policies ability. The Council of Institutional In- New Mexico is a high-technology regulating when executives can make vestors told the SEC that any safe har- State. It is the home to Los Alamos trades. These controls ensure that ex- bor must be 100 percent safe. This and Sandia National Laboratories. We ecutives do not trade during lengthy means that all information in it must have more engineers and PhD’s per black out periods within months of im- be absolutely protected from law suits capita than any State in the Union. portant announcements. The SEC also even if it is irrelevant or unintention- High technology and high growth com- has imposed rules regarding executive ally or intentionally false or mis- panies are our future, yet they are the selling that require prompt reports, leading. The bill does not go as far as companies that are hit most often by which are then available to the invest- the institutional investors suggested. frivolous lawsuits. They have volatile ing public. We think it strikes the correct balance. stock. I do not really see how New First, if you believe that efficient The SEC Rule 175 permits issuers to Mexico can expect to develop the spin- capital markets need information, you make forward looking statements off companies from the labs and to

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00059 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8900 CONGRESSIONAL RECORD — SENATE June 22, 1995 grow high technology companies unless I yield the floor. Baseless lawsuits do indeed exist. Lawyers we pass legislation that has a meaning- Mr. SARBANES addressed the Chair. may earn too much from a suit, leaving de- ful safe harbor for predictions about The PRESIDING OFFICER (Mr. BEN- frauded investors too little. The incentives to sue should be reduced, but not with these the future. NETT). The Senator from Maryland is I am pleased that the final bill in- recognized. bills. They let too many crooks get away. cludes a statutory safe harbor. Origi- Mr. SARBANES. Mr. President, I And an article in the U.S. News & nally, S. 240 contained an instruction have listened to my colleagues now for World Report, the most recent issue, to the SEC to develop a new safe har- well over an hour very carefully. This by Jack Egan entitled, ‘‘Will Congress bor. However, the SEC has been work- is an important piece of legislation, Condone Fraud,’’ says in part, and I ing on it for more than a year and they and it deserves very careful attention. quote, speaking about this legislation: are gridlocked. They held some very I think perhaps the best summary, in a It just might come to be remembered as good hearings and some of the material sense, of some of the statements we legislation that has steeply tilted the play- presented before them has been very ing field against investors. It makes it very have heard was the comment made by hard for shareholders to sue over legitimate useful to the committee in developing my distinguished colleague from Con- grievances. its statutory safe harbor. necticut, who said that there might And, at the end, it goes on to say: We want to get back to basics. The well be a tendency in the course of de- The pendulum has swung too far toward central principle underlying the securi- bating this bill to use increasingly ex- ties laws is that investors should re- the lawyers, and now it is swinging too far treme examples and overheated rhet- the other way. Unfortunately, some major ceive accurate and timely disclosure of oric. I think that was his exact quote. investor frauds may have to take place be- the financial condition of publicly And we have already seen some of that fore it again moves back toward the center. traded companies. at work over the opening debate that The challenge for the Senate is to get The objective of this bill is to recog- has taken place now for well over an this pendulum in the right place to nize that litigation isn’t George Or- hour. begin with, here, now, over the course well’s 1994 version of Big Brother look- I do not know of anyone who differs of the next few days so that they do ing out for investors’ best interest. We with the goal of deterring frivolous not have to have major investor frauds reject ‘‘stock volatility is fraud’’; we lawsuits, and sanctioning appropriate in order to swing the pendulum back reject ‘‘justice is pennies for lawyers’’; parties when such lawsuits are filed. toward the center. We reject ‘‘equity is millions for law- My colleague from Connecticut at one This legislation, and certain of its yers.’’ point said this bill is an important step provisions, goes too far. In fact, two S. 240 will encourage disclosure, in repairing an ailing system. Parts of provisions that were in the original bill strengthen confidence, realine the role this bill are an important step in doing of the entrepreneurial plaintiffs’ law- as introduced were dropped in the that. Other parts of this bill will, in my yers with the best interests of their cli- course of evolving this legislation. judgment, contribute to an unhealthy ents, and change the risk/benefit equa- Those provisions, had they remained in system. And the challenge that is be- tion of taking cases to the jury. the bill, would deal with a number of The basis of our bill is to make the fore the Senate over the next few days the problems which we intend to out- plaintiffs’ bar, ‘‘Stop, think, inves- as we work through this legislation is line over the next few days in the tigate, and research.’’ to be able to distinguish between those course of its consideration. That was in The spirit motivating this bill is the parts in this legislation. the original proposed legislation, and obligation that Chairman Levitt iden- In the course of this consideration, was taken out. As a consequence, the tified, ‘‘to make sure the current sys- amendments will be offered. Amend- legislation, in my judgment, has been tem operates in the best interest of all ments were offered in committee. weakened, and the balance has tilted in investors. This means focusing not just Some were decided by very close votes. an unfair and unjust way. on the interests of those who happen to We hope by proposing those amend- The fact is that this bill will make it be aggrieved in a particular case, but ments to be able to focus on what the harder to bring securities fraud actions also on the interests of issuers and the problems are. But let me just generally and to recover losses. Individual inves- markets as a whole.’’ make the point that this legislation as tors, local governments, pension plans, With S. 240, we have decided to take now drafted will affect far more than all will find it more difficult to bring a historic step. For the first time since frivolous suits. The examples that have fraud actions and to recover their full Congress created the Federal securities been cited, the horror cases, are exam- damages as a result of this legislation. laws in 1933 and 1934, we have decided ples that any of us would want to ad- I know examples are going to be to revisit section 10(b) and rule 10b–5 in dress and try to deal with. This bill used, but I say to my colleagues, you order to fix many of the problems cre- goes beyond that. This bill overreaches have to move beyond those examples. ated by the courts and our own failure that mark and, in fact, in my judg- The provisions in the bill which deal to act during the past 60 years. If you ment, will make it more difficult for with the egregious examples that would like to put an end to the incon- investors to bring legitimate fraud ac- would be cited ought to be in this bill sistency and confusion, you should sup- tions. That is the essential question. and they ought to be passed. The dif- port S. 240. If you would like to relieve That is the discernment we have to ficulty is that the bill overreaches and the courts of the burden of revisiting make here. it goes too far. Let me give you some 10b–5 every year and put an end to the Jane Bryant Quinn said in an article instances of that. judicial activism associated with this less than a week ago in the Washington The safe harbor provision will for the area of the law, vote for this bill. If you Post, entitled ‘‘Making it Easier to first time protect fraudulent state- want to allow the abuse of investors Mislead Investors,’’ and I quote from ments within the Federal securities and companies, the stifling of job cre- the opening of this article: laws. Individual investors will not be ation and the continued shaping of the A lawsuit protection bill speeding through able to sue people who make fraudulent contours of the law to continue, you Congress will give freer rein to Wall Street’s projections of important items such as should vote against it. In the end, S. eternal desire to hype stocks. It’s cast as a revenues and earnings. 240 will give courts greater guidance to law against frivolous lawsuits that unfairly The SEC has been working to address deal with meritorious securities class torture corporations and their accountants, the question of forward looking state- actions and greater incentive to elimi- but the versions in both the House and Sen- ments, but the Chairman of the SEC, ate do far more than that. They effectively Arthur Levitt, has raised very serious nate most, if not all, of the frivolous make it easier for corporations and stock- ones. We owe it to investors, compa- holders to mislead investors. Class action questions about the safe harbor provi- nies, and our capital markets to take suits against the deceivers would be costly sion in this legislation. If I wanted to this historic step. for small investors to file and incredibly dif- engage in the Senator’s rhetorical com- Mr. President, hopefully, in the next ficult to win. I’m against frivolous lawsuits. bat that he spoke about earlier, I few days, we will change this law and Who is not? But these bills would choke mer- would say, rather than safe harbor, it go to conference with the House, and itorious lawsuits, too. is a pirate’s cove that is in this legisla- maybe before this year is out, set some At the end of this long article, she tion. The proportionate liability provi- of these things straight. concludes as follows, and I quote: sion will for the first time put fraud

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00060 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8901 participants ahead of innocent victims fact remains that it is opposed, the leg- Both Republican and Democratic and individual investors. Fraud victims islation as before us, by a host of secu- Chairmen of the Securities and Ex- will not recover their full damages. rities regulators, by State and local change Commission have stressed the The argument is made that you have government officials, by consumer crucial role of the private right of ac- people who are held liable, they vary in groups, by labor unions, by bar associa- tion in maintaining investor con- their proportionate share of the re- tions, and others, including the North fidence. sponsibility, and the deep-pocket peo- American Securities Administrators In 1991, then-Chairman Richard ple are held entirely liable when the Association, the Government Finance Breeden testified before the Banking principal malefactor goes bankrupt or Officers Association, the National Committee, and I quote: cannot pay the award. This is in a suit League of Cities, the U.S. Conference of Private actions . . . have long been recog- that is proven to be successful, been Mayors, the Consumer Federation of nized as a ‘‘necessary supplement’’ to actions upheld as being meritorious in court. America, and a number of the large brought by the Commission and as an ‘‘es- Well, there is a problem amongst the trade unions, including the Teamsters sential tool’’ in the enforcement of the Fed- malefactors. But to throw the burden eral securities laws. Because the Commission and the United Auto Workers. does not have adequate resources to detect on the innocent victim as a solution to The assault from the other side has and prosecute all violations of the Federal that problem is a departure which real- been on the lawyers. These groups do securities laws, private actions perform a ly astounds one. not represent the lawyers. These critical role in preserving the integrity of In other words, you are the victim of groups represent the public, con- our securities markets. the fraud. A number of people have par- sumers, investors, and they have all Current Chairman Arthur Levitt ticipated in it in varying degrees, and reached the judgment that this bill is echoed this very point in testimony de- you are going to be held to assume a unbalanced—unbalanced. livered this year. large part of the burden before the par- Let me just speak for a moment or The Securities Subcommittee held ticipants in the fraud have to be re- two about the background. It is as- hearings over the past 2 years review- sponsible. As a consequence, fraud vic- serted by some that there is a crisis in ing the Federal securities litigation tims will not recover the full damages. the securities litigation system that is system. It received testimony from The managers of the bill speak about threatening our capital markets. Let plaintiffs’ lawyers, from corporate de- its balance. In fact, the bill has a tilt, us take a look very quickly at our cap- fendants, from accountants, from aca- as this column in U.S. News & World ital markets and some statistics about demics, from securities regulators, and Report said, and I quote it again: it. from investors. There was considerable It just might come to be remembered as For 1993, the U.S. equity market cap- disagreement among the witnesses over legislation that’s steeply tilted the playing italization stood at $5.2 trillion, over how well the existing securities litiga- field against investors. one-third of the world total. More than tion system is functioning. Some ar- There is not included in this legisla- 600 foreign companies from 41 different gued, and my colleagues who have al- tion provisions that the SEC and the countries are listed on our exchanges ready spoken argue, American busi- State securities regulators feel are nec- and more foreign companies come ness, particularly younger companies essary to protect victims of securities every year. Average daily trading vol- in the high-technology area, face a ris- fraud. I was interested that the Sen- ume on the New York Stock Exchange ing tide of frivolous securities litiga- ator from Connecticut quoted Arthur has increased from 45 million shares in tion. Corporate executives suggested Levitt as saying in a hearing there is a 1980 to 291 million shares in 1994. From that securities class actions are filed need for change. 1980 to 1993, mutual fund assets in- when a company fails to meet pro- That is quite true. But Chairman creased by more than 10 times to $1.9 jected earnings or its stock drops. Levitt criticizes the measure that is trillion. Clearly, some frivolous securities now before us. If you are going to cite In effect, Mr. President, what this cases are filed as, indeed, some frivo- Arthur Levitt as supporting the propo- demonstrates is that the U.S. capital lous cases of every sort are filed. How- sition for change, which actually none markets remain the largest and the ever, the Director of the SEC’s Division of us is contending against here—we strongest in the world. of Enforcement testified in June 1993 are not coming to the floor and saying Now, this, I would submit, is not in with respect to statistics from the Ad- do nothing, just leave the existing law. spite of the Federal securities laws but ministrative Office of the U.S. Courts: We are saying that there are some pro- in part because of the Federal securi- The approximate aggregate number of se- visions in this legislation that ought to ties laws. This tremendous growth in curities cases, including Commission cases, be passed, but there are other provi- the American marketplace and its pre- filed in Federal district courts does not ap- sions that overreach and go too far, eminent position worldwide is not in pear to have increased over the past 2 dec- and Arthur Levitt says the same. spite of Federal securities laws but in ades. Similarly, while the approximate num- The very person cited in a sense as an part because of Federal securities laws. ber of securities class actions filed during expert for the proposition that change The Federal securities laws have gen- the past 3 years is significantly higher than erally provided for sensible regulation during the 1980’s, the numbers do not reveal ought to be made has also told us that the type of increase that ordinarily would be some of the changes contained in this and self-regulation of exchanges, bro- characterized as an ‘‘explosion.’’ kers, dealers, and issues. legislation are undesirable. Some said that these actions were in- In addition to the safe harbor issue, This regulation has helped to sustain hibiting the capital formation process. which we will come back and revisit in investor confidence in our markets. In fact, initial public offerings have the course of the amending process, is Without that confidence in the mar- been setting records in recent years: the proportionate liability issue. This kets, you are not going to get the kind $39 billion in 1992; $57 billion in 1993. bill does not extend the statute of limi- of dominant position that we have had. The $34 billion in initial public offer- tations for securities fraud actions. And confidence in the markets on the ings in 1994 was exceeded only by the Fraud victims will not have time to part of investors is a consequence not records set in the previous 2 years. bring their cases to court. That in fact only of the public regulatory scheme On May 22, the New York Times re- was a provision that was in the origi- administered by the SEC but also be- ported, and I quote: nal bill as introduced and has been cause investors know that they have One of the great booms in initial public of- dropped from the provision now before effective remedies against people who ferings is now under way, providing hundreds us. try to swindle them. of millions in new capital for high-tech com- The bill does not restore the ability In other words, if you weaken unrea- panies, windfalls for those with good enough of investors to sue individuals who aid sonably or improperly these remedies, connections to get in on the offerings and and abet violations of the securities you are going to affect investor ability millions in profit for the Wall Street firms laws. Fraud victims will not be able to to have recourse in instances in which underwriting the deals. pursue everyone who helped commit a they have been unfairly or improperly Asserting a crisis in securities litiga- securities fraud. exploited, and the consequence of that tion, which the figures do not seem to It is asserted that this bill as is has is you begin to cast a doubt over the bear out, this bill makes it harder to reached the proper balance, but the integrity of the securities markets. bring lawsuits. We should ask ourselves

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00061 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8902 CONGRESSIONAL RECORD — SENATE June 22, 1995 not simply whether these changes will looking statements. For the first time, ficulty with the proportionate liability result in fewer lawsuits, but whether such statements would find shelter section in the bill is we need to under- each proposed change will make the se- under the Federal securities law. In a stand the issue of liability for reckless curities laws serve our Nation better. letter to the committee, Chairman conduct. We should ask whether legitimate Levitt, expressing his personal views In 1976, the Supreme Court held that cases can still be brought or whether about a legislative approach to safe a defendant is liable under Federal se- the provisions in this legislation, harbor, stated: curities antifraud provisions only if he which it is asserted are designed to A safe harbor must be thoughtful so that it or she possesses the state of mind screen out the frivolous cases, will go protects considered projections but never known in the law as ‘‘scienter.’’ Con- fraudulent ones. beyond that and, in effect, make it dif- duct that is intended to deceive or mis- ficult to bring legitimate cases. The bill, as reported, provides safe lead investors satisfies the scienter re- I hope Members will focus on this harbor protection for all statements quirement. While the Supreme Court very issue. It is very important not to except those knowingly made with the did not decide the question, courts in become, as it were, mesmerized by expectation, purpose, and actual intent every Federal circuit have held that of misleading investors. The com- these extreme examples which my col- reckless conduct also satisfies the mittee report states that expectation, league from Connecticut said would ob- scienter requirement. This follows the purpose, and actual intent are separate viously be cited, because no one is pro- guidance of hundreds of years of court elements, each of which must be prov- tecting the extreme examples. decisions in fraud cases. As the Re- The question is whether the provi- en by the investor, otherwise the statement of Torts states, ‘‘The com- sions here will make it impossible or maker of the statement is shielded. mon law has long recognized reckless- highly difficult to bring legitimate ac- This language so troubled Chairman ness as a form of scienter for the pur- tions, whether it will swing the pen- Levitt that he wrote to committee poses of proving fraud.’’ dulum too far in the other direction. members on May 25, the morning of the One of the articles I quoted said: markup. He stressed that the sub- Now, the most commonly accepted Unfortunately, some major investor frauds stitute committee print failed to ad- definition of reckless conduct was set will have to take place before it, again, here to his belief that a safe harbor forth by the Seventh Circuit in the moves back toward the center. should never protect fraudulent state- Sundstrand case. That standard—and I We do not want that to happen. We ments. will quote it, an order which attached have an opportunity here on the floor I want to be very clear about this. No joint and several liability—said: by correcting this legislation to pre- one is arguing whether there should be A highly unreasonable omission involving vent that from happening. some provision for a safe harbor. The not merely simple, or even gross, negligence, Let me very quickly turn to some of question is: What should that provision but an extreme departure from the standards the major defective provisions in the be? What is reasonable? What is prop- of ordinary care and which present a danger legislation. er? What is balanced? What constitutes of misleading buyers or sellers that is either First is the so-called safe harbor pro- overreaching? The chairman of the known to the defendant or is so obvious that vision. This legislation has a statutory SEC said the following in that letter to the actor must have been aware of it. definition of an exemption from liabil- the committee on the morning of the Now, recklessness liability is often ity for forward-looking statements markup: applied to the issuers’ professional ad- which the bill broadly defines to in- I continue to have serious concerns about visers—attorneys, underwriters, ac- clude both oral and written state- the safe harbor fraud exclusion as it relates countants. And under joint and several ments. Examples include projections of to the stringent standard of proof that must liability, all parties who participate in financial items such as revenues and be satisfied before a private plaintiff can pre- a fraud are liable for the entire amount vail. As Chairman of the Securities and Ex- income for the quarter or for the year, change Commission, I cannot embrace pro- of the victim’s damages—both those estimates of dividends to be paid to posals which would allow willful fraud to re- parties who intended to mislead the in- shareholders, and statements of future ceive the benefit of safe harbor protection. vestors, and those whose conduct was economic performance, such as sales The scienter standard in the amendment reckless. trends and development of new prod- may be so high as to preclude all but the The rationale for this is that a fraud ucts. In short, forward-looking state- most obvious frauds. cannot succeed without the assistance ments include precisely the type of in- He warned that the bill’s standard of of each participant, so each wrongdoer formation that is most important to ‘‘knowingly made with the expecta- is held equally liable. investors deciding whether to purchase tion, purpose, and actual intent of mis- This bill limits joint and several li- a particular stock. leading investors’’ was a far more ability under the Federal securities The SEC currently has a safe harbor stringent standard than currently used laws to certain defendants, specifically regulation for forward-looking state- by the SEC and the courts. The com- excluding defendants whose conduct ments that protects specified forward- mittee report states that the safe har- was reckless. This change will hurt in- looking statements that were made in bor provision is intended to encourage vestors in cases where the perpetrator documents filed with the SEC. To sus- disclosure of information by issuance. of the fraud is bankrupt, has fled, or tain a fraud suit, the investor must Encouraging reasonable disclosure is otherwise cannot pay the investors’ show that the forward-looking infor- one thing. Encouraging fraudulent pro- damages. In those cases, innocent vic- mation lacked a reasonable basis and jections is obviously yet another. tims of fraud will be denied full recov- was not made in good faith. The safe harbor provision that is in The SEC, recognizing the desirability this bill, which was not in the original ery of their damages. Chairman Levitt said: of having some safe harbor for forward- bill as introduced by Senators DODD looking statements, has been seeking and DOMENICI—this safe harbor provi- The Commission has consistently opposed to define it in regulation. sion before us would hurt investors try- proportionate liability. It has been conducting, in fact, a ing to make intelligent investment de- Before the Securities Subcommittee, comprehensive review of its safe harbor cisions and penalize companies trying he said: regulation. This legislation, as origi- to communicate honestly with their Proportionate liability would inevitably nally introduced by Senators DOMENICI shareholders. It runs counter to the en- have the greatest effect on investors in the and DODD, would have allowed the SEC tire philosophy of Federal securities most serious cases (for example, where an to continue this regulatory effort. And laws, the very laws that have helped issuer becomes bankrupt after a fraud is ex- Chairman Levitt endorsed that ap- give us such strong markets, laws that posed). It is for this reason that the Commis- proach. However, the committee print rest on the premise that fraud must be sion has recommended that Congress focus substitute for S. 240, unlike the bill as deterred and punished when it occurs. on measures directly targeted at meritless introduced, abandoned this approach in That is one of the major areas in which litigation before considering any changes to favor of enacting a statutory safe har- attention will have to be focused over the liability rules. bor. the next few days. Now, even the authors of the measure The committee print now before us, Next I turn to the proportionate li- before us recognize something of a in effect, protects fraudulent forward- ability provision in the bill. The dif- problem, so they have tried to make

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00062 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8903 some compensating features with re- discover and pursue violations of secu- gree of scienter—intent to deceive or spect to proportionate liability, and we rities laws. Testifying before the Bank- recklessness toward the fraud. will address those in greater detail ing Committee in 1991, SEC Chairman Why should the aiders and abettors when we propose an amendment. Richard Breeden stated ‘‘the time- of the fraud escape any liability? As Let me just simply make this point. frames set forth in the [Supreme] Senator DODD stated at a May 12, 1994, They would provide coverage to vic- Court’s decision is unrealistically short Securities Subcommittee hearing, tims with a net worth under $200,000 and will do undue damage to the abil- ‘‘aiding and abetting liability has been who lose more than 10 percent of that ity of private litigants to sue.’’ Chair- critically important in deterring indi- net worth. Well, that hardly is mean- man Breeden pointed out that in many viduals from assisting possible fraudu- ingful. Virtually anyone who owns a cases, lent acts by others.’’ Testifying at that home has a net worth of $200,000. And Events only come to light years after the hearing, Chairman Levitt stressed the to require many small investors to lose original distribution of securities and the importance of restoring aiding and more than 10 percent of that net . . . cases could well mean that by the time abetting liability for private investors: worth—in other words, you would have investors discover they have a case, they are persons who knowingly or recklessly assist to lose $20,000 before you would be already barred from the courthouse. the perpetration of a fraud may be insulated made whole by those who have partici- The FDIC and the State securities from liability to private parties if they act pated in or condoned the fraud. regulators joined the SEC in favor of behind the scenes and do not themselves There is another provision for a 50- overturning the Lampf decision. make statements, directly or indirectly, that percent overage, but neither provision On this basis, the Banking Com- are relied upon by investors. Because this is will make fraud victims whole. They mittee in 1991 without opposition conduct that should be deterred, Congress will protect only a tiny number of in- should enact legislation to restore aiding adopted an amendment to a banking and abetting liability in private actions. vestors. For most investors, the bal- bill. The amendment lengthened the The North American Securities Ad- ance of their losses may be statute of limitations for securities ministrators Association and the Asso- uncollectible. So the innocent party is fraud actions to 2 years after the plain- ciation of the Bar of the City of New going to be called upon to bear this tiff knew of the securities law viola- York also endorsed restoration of aid- burden. Just think of the equities of tion, but in no event more than 5 years ing and abetting liability in private ac- that. after the violation occurred. Reckless participation. Participants When the bill reached the Senate tions. In summing up, let me simply say I will no longer be responsible for the re- floor in November 1991, some Senators support the goal of deterring and sanc- sult of their conduct. Innocent inves- indicated they would seek to attach ad- tioning frivolous securities litigation. tors—individuals, pension funds, coun- ditional provisions relating to securi- This bill, though, will deter legitimate ty governments—will have to make up ties litigation. They argued that the fraud actions as well. By protecting the loss. This is not fairness—certainly statute of limitations should not be fraudulent forward looking statements, not to the investors. lengthened without additional reform and by restricting the application of In addition, I am disappointed that of the litigation system. No arguments joint and several liability, this bill this legislation, as reported, does not were raised specifically against the ex- may undermine the investor confidence contain provisions to help investors tension of the statute of limitations. on which our markets depend. Further, bring meritorious suits. In his letter to To expedite consideration of the bill, the members of the Banking Com- it fails to include provisions that are the extension of the statute of limita- mittee, Chairman Levitt stated: needed to ensure that investors have tions was dropped. Senators DOMENICI In addition to my concerns about the safe adequate time and means to pursue se- and DODD included the extended stat- harbor, there is not complete resolution of curities fraud actions. ute of limitations in their comprehen- two important issues for the Commission. We are not alone in concluding this sive securities litigation reform bill, First, there is no extension of the statute of legislation will threaten our markets both in the last Congress and in this limitations for private fraud actions from 3 by undermining investor confidence. to 5 years. Congress. Since the Banking Committee ap- There was no rationale for dropping My very able, distinguished colleague proved this bill we have received let- that provision out. Chairman Levitt from Nevada, who is a member of the ters of opposition from securities regu- testified before the Securities Sub- subcommittee that considered this leg- lators, State and local government of- committee in April 1995, ‘‘extending islation, and is extremely knowledge- ficials, consumer groups and others, able on all aspects of it, will later, in the statute of limitations is warranted which I will place in the RECORD fol- because many securities frauds are in- the course of the amending process, ad- lowing this statement. herently complex, and the law should dress this specific provision. The assertion is, on the other side, For over 40 years, courts held that not reward the perpetrator of a fraud there is a certain private interest in- the statute of limitations for private who successfully conceals its existence volved. We are trying to get at the rights of action under section 10(b) of for more than 3 years.’’ abuse of the existing securities laws. the Securities Exchange Act of 1934, I defy any of my colleagues to ex- But, in effect, independent observers, the principal antifraud provision of the plain to us why the perpetrator of the as it were, the securities regulators, Federal securities laws, was the stat- fraud ought to be given a shorter pe- local government officials, State gov- ute of limitations determined by appli- riod of time in which to get away with ernment officials, have looked at this cable State law. While these statutes this fraudulent conduct. thing and they say this is excessive. varied, they generally afforded securi- Finally, let me turn to the failure to restore aiding and abetting liability. This is overreaching. ties fraud victims sufficient time to In a June 8, 1995 letter, the Govern- This was another matter touched on by discover and bring suit. ment Finance Officers Association In 1991, in the Lampf case, the Su- Chairman Levitt when he expressed his [GFOA] strongly supported our posi- preme Court significantly shortened disappointment that ‘‘the draft bill tion. Consisting of more than 13,000 the period of time in which investors does not fully restore the aiding and State and local government financial may bring such securities fraud ac- abetting liability eliminated in the Su- officials, the GFOA’s members both tions. By a 5 to 4 vote, the Court held preme Court’s Central Bank of Denver issue securities and invest billions of that the applicable statute of limita- opinion.’’ dollars of public pension and taxpayer tions is 1 year after the plaintiff knew Prior to that decision, courts in funds. In its letter, the GFOA opposed of the violation and in no event more every circuit in the country had recog- S. 240 as reported: than 3 years after the violation oc- nized the ability of investors to sue curred. This is shorter than the statute aiders and abettors of securities frauds. We support efforts to deter frivolous secu- Most courts required that an investor rities lawsuits, but we believe that any legis- of limitations for private securities ac- lation to accomplish this must also maintain tions under the law of more than 60 show that a securities fraud was com- an appropriate balance that ensures the percent of the States today. mitted, that the aider and abettor gave rights of investors to seek recovery against This shorter period does not allow in- substantial assistance to the fraud, and those who engage in fraud in the securities dividual investors adequate time to that the aider and abettor has some de- markets. We believe that S. 240 does not

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achieve this balance, but rather erodes the EXHIBIT 1 The safe harbor contained in H.R. 1058 is so ability of investors to seek recovery in cases SECURITIES AND EXCHANGE COMMISSION, broad and inflexible that it may compromise of fraud. Washington, DC, May 19, 1995. investor protection and market efficiency. It would, for example, protect companies and The North American Securities Ad- Hon. ALFONSE M. D’AMATO, Chairman, Committee on Banking, Housing, individuals from private lawsuits even where ministrators Association, which rep- and Urban Affairs, U.S. Senate, Wash- the information was purposefully fraudulent. resents the 50 State securities regu- ington, DC. This result would have consequences not lators, wrote earlier this week ‘‘to DEAR MR. CHAIRMAN: As Chairman of the only for investors, but for the market as express***opposition to S. 240 as it Securities and Exchange Commission I have well. There would likely be more disclosure, was reported out of the Banking Com- no higher priority than to protest American but would it be better disclosure? Moreover, mittee.’’ The letter expresses investors and ensure an efficient capital for- the vast majority of companies whose public ‘‘NASAA’s view that the bill succeeds mation process. I know personally just how statements are published in good faith and deeply you share these goals. In keeping with due care could find the investing public in curbing frivolous lawsuits only by with our common purpose, both the SEC and skeptical of their information. making it equally difficult to pursue the Congress are working to find an appro- rightful claims against those who com- I am concerned that H.R. 1058 appears to priate ‘‘safe harbor’’ from the liability provi- cover other persons such as brokers. In the mit securities fraud.’’ sions of the federal securities laws for pro- Prudential Securities case, prudential bro- And they mention the amendments jections and other forward-looking state- kers intentionally made baseless statements ments made by public companies. Several concerning expected yields solely to lure pertaining to safe harbor, proportional pieces of proposed legislation address the customers into making what were otherwise liability, the statute of limitations, issue of the safe harbor and the House-passed extremely risky and unsuitable investments. and aiding and abetting liability as version, H.R. 1058, specifically defines such a Pursuant to the Commission’s settlement being desirable changes to be made in safe harbor. with Prudential, the firm has paid compensa- this legislation. Your committee is now considering securi- ties litigation reform legislation that will tion to its defrauded customers of over $700 On May 23, 1995, 12 separate groups include a safe harbor provision. Rather than million. Do we really want to protect such wrote to the Committee, including the simply repeat the Commission’s request that conduct from accountability to these de- National League of Cities, the Amer- Congress await the outcome of our rule- frauded investors? In the past two years or ican Council on Education, and the making deliberations, I thought I would take so, the Commission has brought eighteen en- this opportunity to express my personal forcement cases involving the sale of more California Labor Federation of the than $200 million of interests in wireless AFL–CIO They wrote that the com- views about a legislative approach to a safe harbor. cable partnerships and limited liability com- mittee print ‘‘has not moved at all in There is a need for a stronger safe harbor panies. Most of these cases involved fraudu- the direction of the achieving the bal- than currently exists. The current rules have lent projections as to the returns investors ance we believe is so critical.’’ largely been a failure and I share the dis- could expect from their investments. Pro- The St. Louis Post Dispatch had an appointment of issuers that the rules have moters of these types of ventures would be immune from private suits under H.R. 1058 as editorial headed ‘‘Don’t Protect Securi- been ineffective in affording protection for forward-looking statements. Our capital would those who promote blank check offer- ties Fraud’’; the Los Angeles Times, markets are built on the foundation of full ings, penny stocks, and roll-ups. It should ‘‘This Isn’t Reform—It’s a Steamroller: and fair disclosure. Analysts are paid and in- also address conflict of interest problems GOP bill curbing lawsuits would flat- vestors are rewarded for correctly assessing that may arise in management buyouts and ten the small investor’’; the Philadel- a company’s prospects. The more investors changes in control of a company. phia Inquirer, ‘‘Going easy on crooks in know and understand management’s future A safe harbor must be balanced—it should 3-piece suits’’; and other papers across plans and views, the sounder the valuation is encourage more sound disclosure without en- the country. of the company’s securities and the more ef- couraging either omission of material infor- ficient the capital allocation process. Yet, Mr. President, I ask unanimous con- mation or irresponsible and dishonest infor- corporate America is hesitant to disclose mation. A safe harbor must be thoughtful— sent that the letters that I cited and projections and other forward-looking infor- so that it protects considered projections, earlier made reference to, the articles, mation, because of excessive vulnerability to but never fraudulent ones. A safe harbor and these editorials be printed in the lawsuits if predictions ultimately are not re- must also be practical—it should be flexible RECORD at the end of my statement. alized. enough to accommodate legitimate investor As a businessman for most of my life, I The PRESIDING OFFICER. Without protection concerns that may arise on both know all too well the punishing costs of sides of the issue. This is a complex issue in objection, it is so ordered. meritless lawsuits—costs that are ultimately a complex industry, and it raises almost as (See Exhibit 2) paid by investors. Particularly galling are many questions as one answers: Should the the frivolous lawsuits that ignore the fact Mr. SARBANES. Mr. President, the safe harbor apply to information required by that a projection is inherently uncertain Commission rule, including predictive infor- securities markets are crucial to our even when made reasonably and in good mation contained in the financial state- economic growth; we should evaluate faith. ments (e.g. pension liabilities and over-the- This is not to suggest that private litiga- efforts to tamper with them very, very counter derivatives)? Should it extend to tion under the federal securities laws is gen- carefully. I hope in the course of our oral statements? Should there be a require- erally counterproductive. In fact, private ment that forward-looking information that consideration of this measure over the lawsuits are a necessary supplement to the has become incorrect be updated if the com- next few days that Members will focus enforcement program of the Commission. We pany or its insiders are buying or selling se- on the issues. I mean, the issue is not have neither the resources nor the desire to curities? Should the safe harbor extend to an extreme example for which there replace private plaintiffs in policing fraud; it disclosures made in connection with a cap- makes more sense to let private forces con- are provisions in the bill to deal with, ital raising transaction on the same basis as tinue to play a key role in deterrence, than with which no one quarrels. The issues more routine disclosures as well? Are there to vastly expand the commission’s role. the are these items which I have cited categories of transactions, such as partner- relief obtained from Commission about which we have heard from the ship offerings or going private transactions disgorgement actions is no substitute for pri- that should be subject to additional condi- Chairman of the Securities and Ex- vate damage actions. Indeed, as government tions? change Commission, from the Govern- is downsized and budgets are trimmed, the ment Finance Officers Association, investor’s ability to seek redress directly is There are many more questions that have from the North American Securities likely to increase in importance. arisen in the course of the Commission’s ex- Administrators Association, from a To achieve our common goal of encour- ploration of how to design a safe harbor. We broad range of consumer groups, and aging enhanced sound disclosure by reducing have issued a concept release, received a from leading editorials and columnists the threat of meritless litigation, we must large volume of comment letters in response, across the country. strike a reasonable balance. A carefully and held three days of hearings, both in Cali- crafted safe harbor protection from meritless fornia and Washington. In addition, I have I very much hope my colleagues will private lawsuits should encourage public met personally with most groups that might support amendments to correct the companies to make additional forward-look- conceivably have an interest in the subject: flaws in this legislation. If that were to ing disclosure that would benefit investors. corporate leaders, investor groups, plaintiff’s be done, then we could move forward At the same time, it should not compromise lawyers, defense lawyers, state and federal with a piece of legislation that I think the integrity of such information which is regulators, law professors, and even federal vital to both investor protection and the effi- judges. The one thing I can state unequivo- would accomplish the proper balance. ciency of the capital market—the two goals cally is that this subject eludes easy an- Mr. President, I yield the floor. of the federal securities law. swers.

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00064 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8905 Given these complexities—and in light of tailor the breadth of the safe harbor of the sion funds and temporary cash balances, and the enormous amount of care, thought, and Securities Exchange Act of 1934 to the more issuers of debt securities as well. work that the Commission has already in- narrow safe harbor of the Securities Act of We support efforts to deter frivolous secu- vested in the subject—my recommendation 1933 was encouraging. However, I continue to rities lawsuits, but we believe that any legis- would be that you provide broad rulemaking believe that the definition should be further lation to accomplish this must also maintain authority to the Commission to improve the narrowed to parallel the items contained in an appropriate balance that ensures the safe harbor. If you wish to provide more my letter of May 19th. Moreover, there re- rights of investors to seek recovery against specificity by legislation, I believe the provi- main a number of troubling issues. those who engage in fraud in the securities sion must address the investor protection I continue to have serious concerns about markets. We believe that S. 240 does not concerns mentioned above. I would support the safe harbor fraud exclusion as it relates achieve this balance, but rather erodes the legislation that sets forth a basic safe harbor to the stringent standard of proof that must ability of investors to seek recovery in cases containing four components: (1) protection be satisfied before a private plaintiff can pre- of fraud. from private lawsuits for reasonable projec- vail. As Chairman of the Securities and Ex- The strength and stability of our nation’s tions by public companies; (2) a scienter change Commission, I cannot embrace pro- securities markets depend on investor con- standard other than recklessness should be posals which allow willful fraud to receive fidence in the integrity, fairness and effi- used for a safe harbor and appropriate proce- the benefit of safe harbor protection. The ciency of these markets. To maintain this dural standards should be enacted to discour- scienter standard in the amendment may be confidence, investors must have effective age and easily terminate meritless litiga- so high as to preclude all but the most obvi- remedies against those persons who violate tion; (3) ‘‘projections’’ would include vol- ous frauds. I believe that there should be a the antifraud provisions of the federal secu- untary forward-looking statements with re- direct relationship between the level of rities laws. In recent years, we have seen spect to a group of subjects such as sales, scienter required to prove fraud and the how investment losses caused by securities revenues, net income (loss), earnings per types of statements protected by the safe laws violations can adversely affect state share, as well as the mandatory information harbor. My letter of May 19th indicated the and local governments and their taxpayers. required in the Management’s Discussion discreet list of subjects that are suitable for It is essential, therefore, that we fully main- and Analysis; and (4) the Commission would safe harbor protection, assuming a simple tain our rights to seek redress in the courts. have the flexibility and authority to include ‘‘knowing’’ standard. Accordingly, if the S. 240 would drastically alter the way or exclude classes of disclosures, trans- Committee is unwilling to lower the pro- America’s financial system has worked for actions, or persons as experience teaches us posed scienter level to a simple ‘‘knowing’’ over 60 years—a system second to none. Fol- lessons and as circumstances warrant. standard, the safe harbor should not protect lowing are the major concerns state and As we work to reform the current safe har- forward-looking statements contained in the local governments have with this ‘‘reform’’ bor rules of the Commission, the greatest management’s discussion and analysis sec- legislation: problem is anticipating the unintended con- tion. This would be better left to Commis- Fraud victims would face the risk of hav- sequences of the changes that will be made sion rulemaking. ing to pay the defendant’s legal fees if they in the standards of liability. The answer ap- In addition to my concerns about the safe lost. S. 240 imposes a modified ‘‘loser pays’’ pears to be an approach that maintains flexi- harbor, there is no complete resolution of rule that carries the presumption that if the bility in responding to problems that may two important issues for the Commission. loser is the plaintiff, all legal fees should be develop. As a regulatory agency that admin- First there is no extension of the statute of shifted to the plaintiff. The same presump- isters the federal securities laws, we are well limitations for private fraud actions from tion, however, would not apply to losing de- situated to respond promptly to any prob- three to five years. Second, the draft bill fendants. The end result of this modified lems that may develop, if we are given the does not fully restore the aiding and abet- ‘‘loser pays’’ rule is that it would strongly statutory authority to do so. Indeed, one ting liability eliminated in the Supreme discourage the filing of securities fraud possibility we are considering is a pilot safe Court’s Central Bank of Denver opinion. I claims by victims, regardless of the merits of harbor that would be reviewed formally at am encouraged by the Committee’s willing- the cases. This is particularly true for state the end of a two year period. What we have ness to restore partially the Commission’s and local governments that have lost tax- today is unsatisfactory, but we think that, ability to prosecute those who aid and abet payer funds through investments, involving with your support, we can expeditiously fraud; however, a more complete solution is financial fraud in derivatives, for example, build a better model for tomorrow. preferable. but who simply cannot afford to risk further I am well aware of your tenacious commit- I also wish to call your attention to a po- taxpayer funds by taking the risk that they ment to the individual Americans who are tential problem with the provision relating might lose their case and have to pay the the backbone of our markets and I have no to Rule 11 of the Federal Rules of Civil Pro- legal fees of large corporations. The argu- doubt that you share our belief that the in- cedure. I worry that the standard employed ment is made that a modified loser pays rule terests of those investors must be held para- in your draft may have the unintended effect is necessary to deter frivolous lawsuits, but mount. I look forward to continuing to work of imposing a ‘‘loser pays’’ scheme. The we understand there are only 120 companies with you on safe harbor and other issues re- greater the discretion afforded the court, the sued annually—out of over 14,000 public cor- lated to securities litigation reform. less likely this unintended consequence may porations, and that the number of suits has Thank you for your consideration. appear. not increased from 1974. Sincerely, I would like to express my particular grati- Fraud victims would find it exceedingly ARTHUR LEVITT. tude for the courtesy and openness displayed difficult to fully recover their losses. Our by the Committee and its staff. I hope we legal standard of ‘‘joint and several’’ liabil- SECURITIES AND EXCHANGE COMMISSION, will continue to work together to improve ity has enabled defrauded investors to re- Washington, DC, May 25, 1995. the bill so as to reduce costly litigation cover full damages from accountants, bro- Hon. ALFONSE M. D’AMATO, without compromising essential investor kers, bankers and lawyers who help engineer Chairman, Committee on Banking, Housing, protections. securities frauds, even when the primary and Urban Affairs, U.S. Senate, Wash- Thank you for your consideration. wrongdoer is bankrupt, has fled or is in jail. ington, DC. Sincerely, S. 240 sharply limits the traditional rule of DEAR MR. CHAIRMAN: I understand that ARTHUR LEVITT. joint and several liability for reckless viola- this morning you and the members of the tors. This means that fraud victims would be Banking Committee will be considering S. GOVERNMENT FINANCE precluded from fully recovering their losses. 240 and that you will be offering an amend- OFFICERS ASSOCIATION, Wrongdoers who ‘‘aid and abet’’ fraud ment in the nature of a substitute. While I Washington, DC, June 8, 1995. would be immune from cases brought by have not had the opportunity to analyze Hon. PAUL S. SARBANES, fraud victims. As you know, aiders had been fully the May 24th manager’s amendment to U.S. Senate, Washington, DC. held liable in cases brought by fraud victims the Committee print, I appreciate your lead- DEAR SENATOR SARBANES: I am writing on for 25 years until a 5–4 Supreme Court ruling ership and efforts to address the concerns of behalf of the more than 13,000 state and local last year eliminated such liability because the Commission in drafting your alternative. government financial officials who comprise there was not specific statutory language in The safe harbor provision in the amend- the membership of the Government Finance federal securities law. If aiders and abettors ment, in my opinion, is preferable to the Officers Association (GFOA) to bring to your are immune from liability, as issuers of debt blanket approach of H.R. 1058. It addresses a attention serious concerns we have with the securities, state and local governments number of the concerns pertaining to the Securities Litigation Reform Act, S. 240, re- would become the ‘‘deep pockets,’’ and as in- size of the safe harbor and the exclusions cently approved by the Senate Banking Com- vestors they would be limited in their ability from the safe harbor. The Committee staff mittee. As you know, the GFOA is a profes- to recover losses. The Securities and Ex- appears to be genuinely interested in the sional association of state and local officials change Commission and the state securities Commission’s views of its draft legislation who are involved in and manage all the dis- regulators have recommended full restora- and has attempted to be responsive. I was ciplines of public finance. The state and tion of liability of aiders and abettors and pleased to see the latest draft deleted the re- local governmental entities our members GFOA supports that recommendation. quirement that a plaintiff must read and ac- represent bring a unique perspective to this Wrongdoers would be let off the hook by a tually rely upon the misrepresentation be- proposed legislation because they are both short statute of limitations. We had sup- fore a claim is actionable. Your attempt to investors of billions of dollars of public pen- ported the modest extension of the statute—

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00065 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8906 CONGRESSIONAL RECORD — SENATE June 22, 1995 from one year from discovery of the fraud bill succeeds in curbing frivolous lawsuits amendments when they are offered on the but no more than three years after the fraud only by making it equally difficult to pursue Senate floor. If all four amendments are not to two years after the violation was, or rightful claims against those who commit se- adopted, we respectfully encourage you to should have been, discovered but not more curities fraud. oppose S. 240 on final passage. The reality is that the major provisions of than five years after the fraud was com- NASAA regrets that the Association can- S. 240 will work to shield even the most egre- mitted—that was contained in an earlier not support the litigation reform proposed as gious wrongdoers among public companies, version of S. 240. We are disappointed that reported out of the Senate Banking Com- brokerage firms, accountants and others this extension was removed in the Commit- mittee. The Association believes that this from legitimate lawsuits brought by de- tee’s markup of the legislation and hope it issue is an important one and one that frauded investors. Do we really want to erect will be restored when the full Senate con- should be addressed by Congress. However, protective barriers around future wrong- siders the bill. NASAA believes that is more important to doers? Under S. 240, corporations could deceive in- get it done right than it is to get it done vestors about future events and be immu- NASAA agrees that there is room for con- structive improvement in the federal securi- quickly. S. 240 as it was reported out of the nized from liability in cases brought by de- Banking Committee should be rejected and frauded investors. Corporate predictions are ties litigation process. The Association sup- ports reform measures that achieve a bal- more carefully-crafted and balanced legisla- inherently prone to fraud as they are an easy tion should be adopted in its place. way to make exaggerated claims of favorable ance between protecting the rights of de- developments to attract investors. The ‘‘safe frauded investors and providing relief to hon- If you have any questions about NASAA’s harbor’’ in S. 240 is a very broad exemption est companies and professionals who may un- position on this issue, please contact and immunizes a vast amount of corporate fairly find themselves the targets of frivo- Maureen Thompson, NASAA’s legislative ad- information so long as it is called a ‘‘for- lous lawsuits. Regrettably, S. 240 as ap- viser. ward-looking statement’’ and states that it proved by the Senate Banking Committee Sincerely, is uncertain and there is risk it may not fails to achieve this necessary balance. PHILIP A. FEIGN, occur. Such statements are immunized even Although this bill has been characterized Securities Commis- if they are made recklessly. We believe this in some quarters as an attempt to improve sioner, Colorado Di- opens a major loophole through which the cause of defrauded investors in legiti- vision of Securities, wrongdoers could escape liability while fraud mate lawsuits, that simply is not the case. President, North victims would be denied recovery. Attempts to incorporate into the bill provi- American Securities Access to fair and full compensation sions that would work to the benefit of de- Association. through the civil justice system is an impor- frauded investors were rejected when the MARK J. GRIFFIN, tant safeguard for state and local govern- Banking Committee considered the bill. At Director, Utah Securi- ment investors, and is a strong deterrent to the same time, the few provisions in the ties Division, Chair- securities fraud. We believe. S. 240 as written original bill that may have worked to the man, Securities Liti- does not provide such access to state and benefit of defrauded investors were deleted. gation Reform Task local governments or to other investors. Just For example, during the Committee’ delib- Force of the North as state and local government investors are erations: (1) the rather modest extension of American Securities urged to use extreme caution in investing the statute of limitations for securities fraud Administrators Asso- public funds, the Senate should use extreme suits contained in the original version was ciation. caution in reforming the securities regula- deleted; (2) attempts to fully restore aiding and abetting liability under the securities tion system. AMERICAN COUNCIL ON EDUCATION, laws were rejected; (3) a regulatory safe har- We hope you will work to bring about CALIFORNIA LABOR FEDERATION— bor for forward-looking statements con- needed changes in the legislation when it is AFL–CIO, CONGRESS OF CALI- tained in the original version of S. 240 was considered by the full Senate. If there is any FORNIA SENIORS—LA COUNTRY, replaced with an overly broad safe harbor for way we can help in this effort, please do not CONSUMER FEDERATION OF AMER- such information, making it extremely dif- hesitate to call on us. ICA, CONSUMERS FOR CIVIL JUS- ficult to sue when misleading information Sincerely, TICE, INTERNATIONAL BROTHER- causes investors to suffer losses; and (4) ef- CATHERINE L. SPAIN, HOOD OF TEAMSTERS, GOVERNMENT forts to loosen the strict limitations on the Director, Federal Liaison Center. FINANCE OFFICERS ASSOCIATION, applicability of joint and several liability GRAY PANTHERS, NATIONAL were rejected, making it all but impossible NORTH AMERICAN SECURITIES LEAGUE OF CITIES, NEW YORK for more than a very few to ever fully re- ADMINISTRATORS ASSOCIATION, INC., STATE COUNCIL OF SENIOR CITI- cover their losses when they are defrauded. Washington, DC, June 20, 1995. ZENS, NORTH AMERICAN SECURI- The truth here is that this is a one-sided Re S. 240, the ‘‘Private Securities Litigation TIES ADMINISTRATORS ASSOCIA- measure that will benefit corporate interests Reform Act.’’ TION, U.S. PUBLIC INTEREST RE- at the expense of investors. Hon. PAUL S. SARBANES, As state government officials responsible SEARCH GROUP, U.S. Senate, Hart Senate Office Building, for administering the securities laws in our May 23, 1995. Washington, DC. jurisdictions, we know the important role Re: securities litigation reform. DEAR SENATOR SARBANES: The full Senate private actions play in the enforcement of Hon. ALFONSE D’AMATO, may consider as early as Wednesday or our securities laws and in protecting the Chairman, Committee on Banking, Housing and Thursday of this week, S. 240, the ‘‘Private honesty and integrity of our capital mar- Urban Affairs, U.S. Senate, Dirksen Senate Securities Litigation Reform Act of 1995.’’ kets. The strength and stability of our na- Office Building, Washington, DC. On behalf of the North American Securities tion’s securities markets depend in large DEAR CHAIRMAN D’AMATO: Our organiza- Administrators Association (NASAA), we are measure on investor confidence in the fair- tions have been actively involved in the se- writing today to express the Association’s ness and integrity of these markets. In order curities litigation reform debate. We are opposition to S. 240 as it was reported out of to maintain this confidence, it is critical writing today to express the very serious the Banking Committee. In the U.S., NASAA that investors have effective remedies concerns our organizations and individual is the national voice of the 50 state securi- against persons who violate the anti-fraud members have with the major provisions of ties agencies responsible for investor protec- provisions of the securities laws. S. 240, the ‘‘Private Securities Litigation Re- tion and the efficient functioning of the cap- When S. 240 is considered on the Senate form Act,’’ introduced by Senators Dodd and ital markets at the grassroots level. floor, it is expected that several pro-investor Domenici, and with the substitute language While everyone agrees on the need for amendments will be offered in an attempt to that emerged on Monday. changes to the current securities litigation inject some balance into the measure. system, not everyone is prepared to deny jus- Among the amendments we expect to be of- Let us be clear: our organizations strongly tice to defrauded investors in the name of fered are those that would: (1) extend the believe that any securities litigation reform such reform. Proponents of the bill make statute of limitations for private securities must achieve a balance between protecting two claims: first, that they have modified fraud actions; (2) fully restore aiding and the rights of defrauded investors and pro- the bill to satisfy many of the objections to abetting liability under the securities laws; viding relief to honest companies and profes- the earlier version; and second, that the bill (3) replace the expansive safe harbor for sionals who may find themselves the target will not prevent meritorious claims from foward-looking statements with a directive of a frivolous lawsuit. We agree that abusive going forward. Neither claim is accurate. to the Securities and Exchange Commission practices should be deterred, and where ap- First, the changes made to the bill do little to continue its rulemaking efforts and report propriate, sternly sanctioned. At the same to resolve the serious objections to S. 240 back to Congress; and (4) lift the severe limi- time, the doorway to the American system raised by NASAA and its members. In fact, it tations on joint and several liability so that of civil justice must remain open for those may be argued that during the Banking defrauded investors may fully recover their investors who believe they have been de- Committee’s deliberations the bill was made losses. frauded. less acceptable from the perspective of inves- On behalf of NASAA, we respectfully en- Although we understand that some of the tors. Second, it is NASAA’s view that the courage you to vote in favor of all such specifics of S. 240 remain under discussion,

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00066 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8907 we are extremely disappointed to see that course to fight back against those who have ments, and retirements. A study published in the substitute language now being circulated victimized us. We fear that is exactly what the 1991 Maine Law Review found that 87% of (and expected to be marked up on Thursday, will be the case if S. 240 or its substitute managers surveyed were willing to commit May 25th) has not moved at all in the direc- version is enacted. There should be little financial statement fraud, more than 50% tion of achieving the balance we believe is so doubt that under such a scenario many in- were willing to overstate assets, 48% were critical to resolving this debate. While we vestors will seriously reconsider whether willing to understate loss reserves, and 38% appreciate the fact that some of the provi- they want to remain in the marketplace. would ‘‘pad’’ a government contract. In addi- sions we found most objectionable in the bill Finally, we want to take this opportunity tion, securities fraud is increasing at an as introduced were deleted, we are dismayed to put to rest the frequently voiced claim alarming rate. Cases brought by federal and to find other equally troubling provisions in- that no defrauded investor with a meri- state regulators have increased by more than serted in the new draft. Perhaps most dis- torious case will be denied justice under 45% in just five years. turbing is that the one pro-investor provi- these reform proposals. That is just plainly Moreover, a new major financial fraud that sion found in S. 240 as introduced—the exten- and demonstrably untrue. could rival the savings and loan fiasco—in- sion of the statute of limitations—has been Any questions about this letter should be volving high-risk, highly speculative deriva- dropped entirely in the latest version of the directed to any of the contacts listed below: tive securities—is just being discovered. Or- bill. Contacts; ange County is not alone. Already, 40 Amer- Collectively, our organizations and those American Council on Education: Shelly ican communities and public institutions with which we have worked closely on this Steinbach. across the country have reported derivatives issue represent tens of millions of ordinary CA Labor Federation—AFL–CIO: Bill losses totalling some $3 billion. And indica- Americans who increasingly must rely on in- Price. tions are that fraud may have played a large vestments to build retirement nest eggs, fi- Congress of CA Seniors—LA County: Max role in many of those disasters. nance the college education of children, and Turchen. Clearly, this is no time to be immunizing to save for major purchases, such as a home. Consumer Federation of America: Mern fraud and removing vital investor protection The organizations represent the thousands of Horan. laws that have served American consumers state and local governments, that partici- Consumers of Civil Justice: Walter Fields. so well for decades. We urge you to vote pate in the securities markets both as inves- International Brotherhood of Teamsters: against S. 240 in the markup on Thursday. tors of pension funds and temporary cash Bart Naylor. Sincerely, balances and as issuers of municipal debt. Government Finance Officers Association: RICHARD VUERNICK, Our ranks also include colleges and univer- Cathy Spain. Legal Policy Director, sities and other institutions of higher learn- Gray Panthers: Dixie Horning. Citizen Action. ing, as well as labor organizations, that par- National League of Cities: Frank Shafroth. MERN HORAN, ticipate in the securities markets as inves- New York State Council of Senior Citizens: Legislative Represent- tors of endowment and pension funds. Eleanor Litwak. ative, Consumer Our general and primary concerns with re- North American Securities Administrators Federation of Amer- spect to the provisions of S. 240, as well as Association: Maureen Thompson. ica. with other proposals that now are under dis- U.S. Public Interest Research Group: Ed MARY GRIFFIN, cussion or are present in the House version Mierzwinski. Counsel, Consumers of this legislation, include; Union. Unreasonable standards for fraud plead- MAY 24, 1995. JOAN CLAYBROOK, ings, burden of proof and damages; Re oppose S. 240—devastating for consumers, President, Public Cit- Any form of ‘‘means testing’’ for access to seniors, investors. izen. justice of recovery, including conferring a EDMUND MIERZWINSKI, Hon. PAUL S. SARBANES, special status on certain, larger investors; Senate Committee on Banking, Housing, and Consumer Program Di- Limits on joint and several liability that Urban Affairs, Hart Senate Office Building, rector, U.S. Public will work to immunize from liability certain Washington, DC. Interest Research professional groups; Group. DEAR SENATOR SARBANES: We are writing ‘‘Loser pays’’ rules; M. KRISTEN RAND, Expansive safe harbor exemptions from to express our strong opposition to S. 240, the so-called ‘‘Private Securities Litigation Director of Federal private liability for forward looking state- Policy, Violence Pol- ments (we believe the more appropriate re- Reform Act.’’ In our earlier analysis of the bill (January 25, 1995), we discussed the eight icy Center. sponse is SEC rulemaking in this area); and Attachment. most harmful provisions for consumers, sen- Expanding the scope of this bill to go be- [From the New York Times, May 22, 1995] yond cases involving private class actions iors, and investors. We stressed that S. 240 FRIENDS OF FRAUD? brought under the 1934 Securities Exchange would effectively eliminate private enforce- Act. ment of the securities law and greatly reduce (By Anthony Lewis) At the same time, we have expressed sup- the likelihood that innocent victims of fraud Of all the bills making their way through port for major reform proposals, including: could recover their losses from corporate and this Congress, the most devastating to its An early evaluation procedure designed to individual wrongdoers. area of the law may be one that has had rel- weed out clearly frivolous cases, with sanc- Now that the Banking Committee’s sub- atively little attention: legislation to weak- tions imposed in certain instances; stitute has been issued in preparation for the en the protection of the public against secu- A more rational system of determining li- markup on Thursday, May 25, we are deeply rities fraud. ability based on proportionate liability for concerned that the bill has not moved in the The House passed a bill in March. Now the reckless violators and joint and several li- direction of balanced reform. On the whole, Senate Banking Committee is working on its ability for knowing violators, with provi- the bill is now even worse for average Ameri- version. To judge how devastating the legis- sions made for special circumstances in cans. The intentions of the Senate Banking lation would be, consider what it would have which knowing securities violators are un- Committee’s substitute bill are clear—to done to some of the most notorious recent able to satisfy a judgment; promote the interests of big corporations, fraud cases. The right to contribute among liable de- big accounting firms, big brokerage firms In the 1980’s Prudential Securities brokers fendants according to proportionate respon- and big investment banking houses at the lure customers to invest in risky securities sibility. expense of average Americans. The bill is with deliberately false statements about how Certification of complaints and improved now entirely anti-consumer, anti-senior, much they would make. The defrauded inves- case management procedures; anti-investor, and pro-defendant, pro-indus- tors and the Securities and Exchange Com- Improved disclosure of settlement terms; try, and pro-wealthy. Any pretensions of pro- mission sue Prudential Securities, and in the Curbs on potentially abusive practices on tecting small investors and meritorious S.E.C. case alone the firm agreed to repay the part of plaintiffs’ attorneys; fraud actions have been abandoned. more than $700 million to the victims. A reasonable extension of the statute of Only one of our concerns (the insider-domi- The victims would probably have been un- limitations for securities fraud suits; and nated disciplinary board for accountants) able to sue if one section of the current Restoration of liability for aiding and has been addressed, while seven deeply trou- House bill had been law. Known as the ‘‘safe abetting securities fraud. bling provisions remain or have gotten even harbor’’ provision, it immunizes from suits Although some people may mistakenly be- worse. We have attached a consumer critique by the defrauded all ‘‘forward-looking state- lieve that the markets run on money, the of the Banking Committee’s substitute ments’’ about securities. Companies and truth is that the markets run on public con- which explains our strong opposition, as well their agents could make false ‘‘projections’’ fidence. As investors ourselves and as rep- as a recent article which highlights the ur- and ‘‘estimates’’ of future performance, even resentatives of investors, we can tell you gency of our concerns. if they were deliberate lies, without fear of that the confidence we have in the market- S. 240 strikes a blow to the heart of the lawsuits by those defrauded. place will be dramatically altered if we come middle class and average, hard-working The chairman of the S.E.C., Arthur Levitt to believe that not only are we at risk of Americans who depend on the federal securi- Jr., is concerned about the ‘‘safe harbor’’ being defrauded, but that we will have no re- ties system to protect their savings, invest- provision. He has just written to the Senate

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00067 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8908 CONGRESSIONAL RECORD — SENATE June 22, 1995 committee urging it not thus to protect victims. The substitute S. 240 restricts joint ties, Senator Dodd stated ‘‘Lawyers, ac- ‘‘purposefully fraudulent’’ financial pre- and several liability even further. countants, and other professionals should dictions. Under joint and several liability, if one not get off the hook, in my view, when they That is not the only part of the pending wrongdoer is found liable but has no assets, assist their clients in committing fraud . . . legislation that would make it difficult—per- the victim can be reimbursed fully by the The Supreme Court has laid down a gauntlet haps impossible—for victims of fraud to sue. other wrongdoers, without whose assistance for Congress . . . In my view, we need to re- Another is a provision of the House bill re- the fraud could not have succeeded. This tra- spond to the Supreme Court decision quiring anyone who brings a securities fraud ditional aspect of America’s legal system for promptly and I emphasize promptly.’’ suit to show at once, when he or she sues, fraud is based on the policy that it is more (3) Discrimination against small share- the state of mind of the defendant indicating fair for other wrongdoers to pay for a loss holders. The original S. 240 contained a bla- fraudulent intent. That kind of information that cannot be collected from one of the co- tantly discriminatory wealth-test for filing is usually found only during the discovery conspirators than it is for the victims to go securities fraud class actions. The substitute phase of a case. uncompensated. The rule has enabled swin- replaces the wealthiest with an equally dis- For example, two months ago shareholders dled consumers to recover full damages from criminatory wealth-control provision. in Koger Properties Inc. won an $81.3 million accountants, brokers, bankers, lawyers and The substitute adds a new provision that judgment in a fraud suit against its account- other wrongdoers who participate in securi- sets up a strong presumption that the ‘‘most adequate plaintiff’’ in any private class ac- ing firm, Deloitte & Touche. During pretrial ties scams, even when the primary wrong- tion is the plaintiff that has the largest fi- discovery, the plaintiffs’ lawyers found that doer has no assets left, has fled, or is in jail. nancial interest in the outcome of the ac- the partner in charge of the audit owned The original S. 240 sharply limited this tion. The bill then grants this ‘‘most ade- stock in Koger, a violation of accounting rule, immunizing reckless wrongdoers from quate plaintiff’’ the power to select the lead standards. They could not have known that joint and several liability. If S. 240 had been counsel and control the case, including set- when they sued. in effect, most investors would not have re- tling for any amount or even dismissing the Still another provision of the House bill, covered their life savings in the Charles Keating/Lincoln Savings & Loan debacle. Al- case. and the Senate’s as it stands, would limit Perhaps no other change to S. 240 makes though Keating had become bankrupt, the what is called ‘‘joint and several liabilities.’’ plainer the real motives behind the bill and victims recovered their damages from the That allows the victims of fraud to recover makes hollower any pretensions to protect accountants, bankers, and lawyers who as- from others involved if the principal fraud meritorious fraud actions. This ‘‘most afflu- sisted Keating. Despite extensive testimony perpetrator is not able to pay. ent plaintiff’’ requirement would have a dev- to Congress that restricting joint and several Last month, for example, Steven astating effect on average consumers who liability will reduce recoveries for defrauded Hoffenberg of Towers Financial Corporation are defrauded in the securities markets. Mu- victims and encourage more fraud, the sub- pleaded guilty to securities fraud and crimi- tual funds and large investors, who may have stitute bill restricts joint and several liabil- nal conspiracy in a Ponzi scheme that cost close ties to big corporate fraud defendants investors $460 million. He said his account- ity even further. Under the substitute, in the all-too-often (e.g., mutual fund managers enjoy ready ac- ants and lawyers helped carry out the fraud cess to information from corporate man- by issuing false financial statements and cases where a knowing violator’s share is uncollectible, the liability of reckless viola- agers) and who may care less about full re- making misleading statements to the S.E.C. covery because its loss reflects a smaller Towers is bankrupt, so the victims are suing tors for the uncollectible share would be sub- ject to a lower ‘‘cap’’ than under the original proportion of total investment than smaller the lawyers and accountants. investors’ losses, can afford to accept less Some of the worst scams in recent history bill. The rest of the uncollectible share sim- ply will be lost to the defrauded victims. Al- than full recoveries, would have complete would have left the defrauded investors with control over class actions at the expense of little or no recourse if the ‘‘joint and several though the ‘‘cap’’ would not apply to victims with a net worth over $200,000 and recover- average investors. What makes a mutual liability’’ limit had been in effect. The vic- fund that has lost $1 million of its $1 billion tims of Charles Keating, the great savings able damages of more than 10% of their net worth, that basically eliminates anyone who portfolio more adequate to represent a class and loan swindler, would have been out of of defrauded investors than an elderly widow luck when he went to prison and said he was owns a house. Adjudged perpetrators of securities fraud who has lost $27,000 out of her $30,000 net broke. worth? The legislation sounds highly specialized, are given a gift while fraud victims are de- nied full recover of the money that was sto- Aside from raising the specter of collusive and it is. But it would have widespread ef- intervention by large investors simply to len from them—that is the policy of S. 240. fects on real people. In addition to individual dismiss cases or enter into sweetheart settle- Under the substitute, it will be virtually im- investors who have been defrauded, many ments, the substitute virtually precludes possible for many victims of fraud to recover local governments have lost large sums in small investors from being able to obtain at- recent years and are suing brokerage firms a large part of their losses. (2) Failure to restore the liability of those torneys willing to invest their time on cases and others. The big example is Orange Coun- in which they can have no control and may ty, California, which lost more than $1 bil- who aid and abet fraud. The original S. 240 failed to restore aiding and abetting liability not be paid fairly (or at all) by lead counsel. lion, but there are dozens more. This provision also directly contradicts the for accountants, lawyers, brokers, bankers It is a peculiar time to weaken legal pro- primary rationale for class actions—to give and others who assist primary wrongdoers in tections: a time of spectacular financial average investors who cannot afford to liti- committing securities fraud. The substitute frauds. The latest involves the Foundation gate against major corporate defendants on for New Era Philanthropy, whose scam at- also fails to do so. their own a means by which they could band Last year, in the Central Bank of Denver tracted many charities and such investors as together to seek a remedy for their losses. case, the Supreme Court overturned in a 5–4 Lawrence S. Rockefeller and William E. (4) Inadequate efforts to deal with unwar- ruling 25 years of established precedent (in- Simon. New Era collapsed last week, and the ranted secrecy. As we outlined in our Janu- cluding all 11 federal appellate courts that S.E.C. charged its founder with ‘‘massive’’ ary letter, the original S. 240 made no effort addressed the issue) by wiping out aiding and securities fraud. to address the serious problem of defendant- But this Congress evidently does not care a abetting liability of accountants, lawyers, coerced secrecy orders covering all the un- lot about the victims of fraud. It is listening brokers, bankers and others who assist pri- derlying documents relevant to the fraud. to the lobbyists for accounting firms and in- mary wrongdoers in committing securities These orders remain in effect throughout the surance companies, whose political action fraud. This right of action has played a vital litigation and generally require that, once a committees have made large campaign con- role in compensating swindled consumers in case is terminated, the documents be de- tributions, and others who want to operate the major financial frauds of the last several stroyed or returned to the defendants. Such without fear of being sued for securities decades and must be restored by Congress. secrecy orders block significant corporate fraud. Central Bank severely weakens the deter- wrongdoing from public scrutiny and allow rence of securities fraud because it sends a defendants, at the time of settlement, to pro- dangerous signal to the markets that a pri- CONSUMERS UNION, CONSUMER FED- claim their innocence without fear of con- mary enforcement tool has been eliminated. ERATION OF AMERICA, U.S. PUBLIC tradiction. The substitute continues to ig- That not only hurts defrauded consumers, it INTEREST RESEARCH GROUP, CIT- nore this problem, further demonstrating hurts all Americans. S. 240 fails to address IZEN ACTION, PUBLIC CITIZEN, VIO- that the bill is not really intended to solve this issue for obvious reasons—the entire LENCE POLICY CENTER the real problems in securities litigation. thrust of the bill is to further immunize de- (5) Imposition of ‘‘loser pays’’ fee shifting. CONSUMER CRITIQUE OF S. 240 ‘‘PRIVATE fendants from liability. The original S. 240 abrogated a 200-year-old SECURITIES LITIGATION REFORM ACT’’ In their Congressional testimony, the Se- legal principle reflecting our national policy (1) Abrogation of joint and several liabil- curities and Exchange Commission (‘‘SEC’’) in favor of access to justice. It did so by re- ity, which would effectively immunize pro- and state regulators recommended restoring quiring losing parties who decline to accept fessional wrongdoers. The original S. 240 aiding and abetting liability. Even Senator out-of-court resolution of their cases to pay eliminated joint and several liability in a Dodd has stressed the importance of restor- all of the prevailing parties’ legal fees and wide class of cases, favoring large corpora- ing the liability of those who aid and abet se- costs. tions, accountants, brokers and bankers— curities fraud. During a May 12, 1994 hearing The substitute simply replaces this ‘‘loser who have been found liable—over defrauded before the Senate Subcommittee on Securi- pays’’ rule with a different ‘‘loser pays’’

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00068 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8909 rule—mandatory sanctions under Rule 11 of would increase recoveries for fraud victims— Under current law, it’s all right to make a the Federal Rules of Civil Procedure which it is totally one-sided and should really be reasonable projection, even if it doesn’t includes a strong presumption in favor of called the ‘‘Wrongdoer Protection Act of come true. But a company can be held liable shifting all legal fees and costs to the loser. 1995.’’ for making an unreasonable projection that The new provision suffers from the same flaw (8) An insider-dominated disciplinary misleads investors. In many of the cases as the original—average consumers who have board for accountants. The substitute de- where lawsuits are brought, ‘‘executives are just lost their retirement savings in a finan- letes the provision of the bill that would telling the public that everything is going to cial fraud cannot afford to take the risk that have allowed the trade association for the be great while they’re bailing out and selling they might lose their house as well if they accountants—the AICPA—to be a sham self- their own stock,’’ Jonathan Cuneo, general lose their case. Moreover, the new rule would disciplinary board for public accountants. counsel of the National Association of Secu- prolong cases, waste more resources on liti- This is the only one of our original concerns rities and Commercial Law Attorneys, told gating additional issues, and add to the that has been adequately addressed by the my associate Louise Nameth. money spent on legal fees by requiring the substitute bill. If these bills become law, however, compa- court to make specific findings regarding [From the Washington Post, June 18, 1995] nies could get away with making misleading, compliance by every party and every attor- even reckless statements. To win a class ac- ney, even when no party requests it. MAKING IT EASIER TO MISLEAD INVESTORS tion lawsuit, you would have to prove that a The end result of this ‘‘loser pays’’ rule (By Jane Bryant Quinn) falsehood was uttered with a clear intent to will be a severe chill on the assertion of se- A lawsuit-protection bill speeding through deceive. That’s incredibly tough to do. curities fraud claims, regardless of their Congress will give freer rein to Wall Street’s This provision, in particular, troubles Ar- merits. eternal desire to hype stocks. thur Levitt Jr., chairman of the Securities (6) Free reign for false statements. The It’s cast as a law against frivolous lawsuits original S. 240 allowed the SEC to consider and Exchange Commission. ‘‘The law should that unfairly torture corporations and their not protect persons who make material creating a safe harbor exemption for cor- accountants. But the versions in both the porate predictive statements—the substitute statements they know to be false or mis- House and Senate do far more than that. leading,’’ he says, ‘‘nor should it protect of- creates a ‘‘safe ocean’’ exemption from fraud They effectively make it easier for corpora- liability for corporate predictions that es- ferings such as penny stocks, nor persons tions and stockbrokers to mislead investors. who have committed fraud in the past.’’ sentially grants would-be wrongdoers a li- Class action suits against the deceivers cense to lie. The substitute adopts a whole- would be costly for small investors to file Baseless lawsuits do indeed exist. Lawyers sale exemption which would completely im- and incredibly difficult to win. may earn too much from a suit, leaving de- munize a vast amount of corporate informa- I’m against frivolous lawsuits. Who isn’t? frauded investors too little. The incentives tion (‘‘any statement, whether made orally But these bills would choke meritorious law- to sue should be reduced. But not with these or in writing, that projects, estimates, or de- suits, too. They affect only claims filed in bills. They’d let too many crooks get away. scribes future events’’) so long as it is called federal court, so bilked investors would still a forward-looking statement and states that have the option of seeking justice in a state [From U.S. News & World Report, June 26, it is uncertain and may not occur, even if courts. But the federal law would set a ter- 1995] they are made with reckless disregard for rible precedent and leave the markets more WILL CONGRESS CONDONE FRAUD? their accuracy. This is a gaping loophole open to fraud. through which wrongdoers could escape li- The congressional proposals started out as (By Jack Egan) ability while fraud victims would be denied a way of protecting companies against so- Some of the most unpopular people in recovery. called strike suits—lawsuits filed against Washington these days are shareholders’ Corporate ‘‘forward-looking statements’’ companies whose stock price unexpectedly lawyers who sue companies at the drop of a are prone to fraud as they are an easy way to plunges. stock, usually claiming that management The companies complain that ‘‘vulture make exaggerated claims of favorable devel- deceived investors about the outlook and is lawyers’’ lie in wait for these drops in price. opments in order to attract cash. They con- liable for losses when shares fall. When they occur, the lawyers find willing tinue to be a favorite tool of con artists, pro- Lawmakers have concluded—without much moters and illegal insider traders to artifi- plaintiff and immediately file suit. The usual charge: that the firm, its executives and ac- supporting evidence—that this happens far cially pump up the price of public company too frequently, hamstringing corporations stock in order to profit at investors’ expense. countants misled investors with falsely opti- mistic statements. That’s not true, the com- and causing executives to be wary of making The substitute’s safe harbor provision cre- forecasts. And so legislation is zipping ates an incentive to provide bad information panies say, but they tend to settle just to avoid the legal expense. If so, this represents through Congress to curb ‘‘frivolous’’ or to consumers and a disincentive to provide ‘‘speculative’’ lawsuits against public com- the best available information. It would ef- a grave cost—on corporations, shareholders and economic efficiency. panies. The high-sounding Private Securities fect an upheaval in the mandatory corporate Litigation Reform Act of 1995 easily passed disclosure system in the United States, with But are strike suits really overwhelming corporations? There’s evidence on both sides the House in March. It was approved by the immense potential adverse market con- of this issue, but most of it fails to document Senate’s banking panel and will soon be sequences. taken up by the full body. Finally, by itself, the safe harbor would the executives’ broad complaints. As an example, take the new study by Ba- eliminate many, if not most, fraud class ac- It just might come to be remembered as ruch Lev, a professor at the University of tions. The safe harbor provision would re- legislation that steeply tilted the playing California at Berkeley. He looked at public quire, with limited exemptions, that every field against investors. The bill may make companies whose share price fell more than class action member prove actual knowledge executives feel easier about discussing what 20 percent in the five days around the time of of and reliance on the fraudulent statement, they see ahead, with shareholders benefiting a disappointing quarterly earnings report. an (almost) impossible requirement in class from more candid disclosure. But it makes it There were 589 such cases, from 1988 through action suits. Under this provision, even pur- very hard for shareholders to sue over legiti- 1990. But related class action suits were filed posefully fraudulent forward-looking state- mate grievances. The House version even against only 20 of the firms. protects management when it lies, provided ments could be made without the possibility Lev compared those 20 companies with of redress through a class action lawsuit. the deception is a projection. similar firms where no lawsuits were filed. Unhappy Levitt. The Securities and Ex- The SEC is currently in the middle of a Among other things, the litigated companies rulemaking proceeding to study forward- change Commission, which has always tended to put out rosy statements—in some viewed private actions as complementing its looking statements and has requested that cases, just before releasing the bad earnings Congress allow it to complete its process. We own limited enforcement abilities, is not report. By contrast, the firms that weren’t happy. In a letter to Senate Banking Com- believe that Congress should defer estab- sued tended to publish more sober state- lishing a safe harbor provision until the mittee Chairman Alfonse D’Amato sympa- ments and to warn investors in advance that thizing with ‘‘the punishing costs of agency experts have thoroughly reviewed earnings would be lower than expected. meritless lawsuits,’’ SEC Chairman Arthur this matter. Lev warns that his sample is too small to Levitt also wrote that the House-passed bill (7) A flawed limitations period. The cur- reach statistical conclusions. But his basic rent statute of limitations—1 year from dis- data undermine the claims that companies might ‘‘compromise investor protection.’’ covery of the fraud but in no event more are bombarded with lawsuits whenever their And while the Senate Banking Committee’s than 3 years after the fraud—is generally re- stock goes down. bill is more moderate, the SEC chairman garded as too short. The original S. 240 ex- The new bills contain many provisions to complained in another letter that share- tended the period to 2 years after the viola- worry investors. For example, if you lost a holders were still hampered from bringing tion was or should have been discovered but class action suit, you might have to pay the suits against ‘‘all but the most obvious not more than 5 years after the fraud. Rather legal fees for the other side. Psychologically, frauds.’’ than heed the SEC and the state securities that could stop you from suing no matter The crusade to throttle shareholder law- regulators, who testified that the limitations how badly you’d been burned. suits has been spearheaded by high-tech period should be even longer, the substitute The bills also give excessive protection to companies and the big accounting firms. The simply drops the extension entirely. There is so-called forward statements, which are the stocks of technology companies tend to be now not a single provision in the bill that business projections that corporations make. quite volatile, flying high and suddenly nose-

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00069 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8910 CONGRESSIONAL RECORD — SENATE June 22, 1995 diving, often when companies fail to meet That can only be done by the discovery proc- Between these two standards there perhaps ambitious earnings expectations. That ess in a lawsuit, not beforehand. The bill is a sensible middle ground—but that’s not makes them especially vulnerable to mug- would also bar any plaintiff from suing who to be found in the House bill. ging by lawsuit; according to the American had less than 1 percent or $10,000 invested in Cox casts his bill as a limitation against Electronics Association, which represents the securities in question. This will keep a so-called ‘‘strike suits,’’ brought by share- the industry, 9 out of 10 suits are settled out lot of people out of court. holders who file lawsuits when the share of court—averaging $8.6 million—simply to When they do get in, if they lose, they will price drops in a company in which they own avoid the cost of lengthier litigation. be responsible for court costs if they have a small part of the stock. The congressman But claims that nuisance lawsuits are holdings of more than very limited size, likes to point out that high-technology com- hurting the ability of such companies to clearly a deterrent to small-investor suits panies are a favorite target of such lawsuits. raise capital come at a time when tech- for securities fraud. Abuses of such lawsuits absolutely do exist nology shares have led the stock market to These are just the highlights of a complex and should certainly be curbed, but the an all-time high and initial public offerings bill whose provisions work against not only House bill, as drawn, is overly broad in its are running at record levels. ‘‘There are 200 the rights of small investors, but even large potential application. to 300 companies sued each year out of 20,000 government bodies, such as Orange County The Senate will take up the securities re- that are registered,’’ notes Democratic Sen. or the city of Joplin, Mo., which lost huge form bill soon. We urge it to take a reasoned Richard Bryan of Nevada—about the same as amounts on derivatives that may have been approach to the problems posed by frivolous 20 years ago. ‘‘I also oppose frivolous law- sold to them without full disclosure. securities lawsuits. The current House bill is suits, but that issue is really a trojan horse Among those senators on the Banking not the answer. for firms that simply want to limit their li- Committee who are in a position to slow ability.’’ down the bill is Missouri’s Christopher S. [From the Philadelphia (PA) Inquirer, June The accounting firms felt stung by large li- Bond. He should do so. His new colleague 4, 1995] from Missouri, John Ashcroft, who has yet to ability verdicts against them in connection GOING EASY ON CROOKS IN 3-PIECE SUITS take a position on the bill, should join him. with the S&L scandal of the early 1990s. But (By Jeff Brown) the cases that produced the biggest judg- [From the Los Angeles (CA) Times, Mar. 12, ments were brought not by individual share- True or false: Republicans are the law-and- 1995] holders but by the federal government, seek- order people who want to see more crooks go ing to recoup its depleted S&L insurance THIS ISN’T REFORM—IT’SASTEAMROLLER: to jail and stay there longer? fund. Nevertheless, the ‘‘Big Six’’ are eagerly GOP BILL CURBING LAWSUITS WOULD FLAT- True—unless the crook wears a three-piece backing the bill because it would bar share- TEN THE SMALL INVESTOR suit instead of a ski mask. Corporate execu- holders from suing outsiders who are parties Once again House Republicans have put tives, accountants, securities industry pooh- to securities fraud—like accountants. the timetable for their ‘‘contract with Amer- bahs—they need special protection against When the full Senate debates the bill, per- ica’’ ahead of the substance of the bills they claims they’re thieves. This, in a nutshell, is the point of the Pri- haps at the end of June, efforts may be made are ramming through the lower chamber. On vate Securities Litigation Reform Act of to make it less hostile to shareholders and to Wednesday the House approved a drastic re- 1995, approved, 11 to 4, by the Senate Bank- deal with some of the SEC’s objections. The vision of the nation’s securities laws as part ing Committee on May 24 and likely to reach Clinton administration has yet to weight in. of the GOP’s agenda for legal reform. The the Senate floor this month. It’s meant to But a veto threat from the president would proposed Securities Litigation Reform Act, discourage ‘‘frivolous’’ claims. But what be risky, since the lopsided vote in the House which is a key provision in the ‘‘contract,’’ about legitimate ones? is enough for an override. would sharply curb the ability of investors Unlike a similar House bill passed in Shareholders already are barred from suing and shareholders to sue stockbrokers, ac- March, the version sponsored by Sen. Alfonse brokerages and must arbitrate instead. ‘‘The counting firms and companies for fraud. D’Amato (R., N.Y.), the committee chair- pendulum had swung too far toward the law- The measure, authored by Rep. Chris- man, doesn’t include a sweeping requirement yers, and now it’s swinging too far the other topher Cox (R–Newport Beach), simply goes that the loser in a stock-fraud case pay the way,’’ notes Richard Kraut, an attorney with too far. It is one thing to craft legislation di- winner’s legal fees. But a trial judge could Washington-based Storch & Brenner, which rected at curbing specific abuses of securi- implement ‘‘loser pays’’ by finding the plain- specializes in securities law. ‘‘Unfortunately, ties litigation, but the House measure would tiff had engaged in ‘‘abusive litigation.’’ some major investor frauds may have to amount to a wholesale dismantling of the Loser pays could deter stockholders from take place before it again moves back to- system that enables investors and share- filing legitimate lawsuits by making it too ward the center.’’ holders to seek redress for financial fraud. Opponents, including state securities ad- risky to challenge rich corporations. The D’Amato bill has other flaws as well, [From the St. Louis (MO) Post-Dispatch, ministrators as well as consumer groups, says Securities and Exchange Commission May 9, 1995] maintain that the bill would virtually de- stroy the ability of citizens of modest means Chairman Arthur Levitt. ‘‘Willful fraud’’ DON’T PROTECT SECURITIES FRAUD to sue when they are victims of fraud. Ar- would be made easier by a ‘‘safe harbor’’ pro- The House has passed and the Senate is thur Levitt Jr., the chairman of the Securi- vision, he says, because executives would be considering a bill to make it much harder for ties and Exchange Commission, who has overly protected from lawsuits regarding defrauded investors to bring class-action worked to improve investor protections, has misleading projections about a company’s suits against investment firms that defraud reservations about the measure. So has U.S. performance. them, as well as the accountants who helped Atty. Gen. Janet Reno. Small wonder. Stock frauds usually use bloated financial them. The impetus for such legislation is the The proposed law would tilt the legal sys- projections to entice investors. D’Amato same as that driving tort revision, only with tem in favor of corporations and their ac- would require a new, higher level of proof— even less justification. counting firms, lawyers and investment essentially, that a company intended to mis- The Senate bill is sponsored by New Mex- firms by making it too easy for them to de- lead, giving defrauded investors the nearly ico Republican Pete Domenici and, surpris- fend themselves against shareholder suits. insurmountable task of establishing a cor- ingly, Christopher Dodd, Democrat of Con- What might such a law portend for cases porate executive’s state of mind. An execu- necticut. Though its final provisions have like Orange County? County officials are tive could make virtually any projection, yet to be settled, it is likely to restrict sig- seeking legal recourse against Merrill Lynch then insulate himself against a fraud verdict nificantly the rights of small investors to Co., which sold high-risk securities to the by adding that things might not turn out sue for fraud. county’s ill-fated investment pool, that way. The industry’s complaint: The explosion of utilmately triggering its bankruptcy. The The bill has some good provisions to pro- securities litigation needs to be curbed. But fear is that the proposed law could be inter- tect investors joining in a class action from there isn’t one; the number of suits has re- preted by the courts in ways that would abuse by their own attorneys, and it would mained nearly constant in the last 20 years, work against plaintiffs in cases like this one. ensure that plaintiffs are illegitimate vic- despite huge growth in the volume of securi- Under the House bill, a judge could require tims and not stooges for ambulance-chasers. ties. However, recent events have created a the losers in a securities fraud case to pay But federal court figures don’t support Re- new problem: Many accounting firms that the legal expenses of the winner if the judge publican claims there’s a flood of frivolous put their names to false documents during determined that the investors’ complaint did suits. There are only a few hundred class-ac- the junk bond craze and the thrift debacle not originally possess substantial merit. tion securities cases filed a year, while there are finding themselves in court more often Currently there is no ‘‘loser pays’’ general are more than 14,000 public companies. And, than ever before. They want protection. This provision. The proposed law also would de- of course, many securities suits are legiti- bill would give it to them. mand that the plaintiff show that the com- mate—just ask the victims in the Crazy It would prohibit lawyers and accountants pany or its officials acted knowingly and Eddie or Lincoln Savings & Loan cases. Class from being named as primary defendants in a recklessly in committing the fraud. The cur- actions are the cheapest way for small inves- class action unless the plaintiffs first can rent standards are simpler: They allow inves- tors to fight abuses by well-heeled corpora- show that these defendants had actual tors to sue for fraud if a company withholds tions. knowledge of the fraud and the precise state information or issues misleading informa- SEC lawyers say most people who commit of mind of those they helped perpetrate it. tion that affects the market price. stock fraud could be charged with criminal

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00070 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8911 violations that carry prison terms. But they the number of civil suits filed in Fed- We had testimony that the average aren’t because in criminal cases, prosecutors eral court. It is estimated that class investor received 6 or 7 cents for every need proof beyond a reasonable doubt. So action suits have increased three fold $1 lost in the market because of these most stock-fraud cases, which are tough for in just the last 5 years. suits—and this is before the lawyers jurors to grasp, go to civil court, where only a preponderance of evidence is required. The cost of these suits is no small are paid. So after the lawyers are paid, Still, a crook is a crook, whether he bur- matter. At the end of 1993, class action there is practically nothing left. gled your home or lied to sell you stocks at suits were seeking $28 billion in dam- Mr. President, I particularly want to an inflated price. And the D’Amato bill ages. note that an important part of this bill would relax the penalties for many stock The impact of these suits is having a is the reform of proportionate liability crooks. detrimental effect on our economy. rules. This bill requires that those who It would scrap rules that make each partic- Many companies are afraid to go public are responsible for causing a loss pay ipant in a fraud liable for the entire sum-or- and sell stock. By remaining private, dered returned to investors or paid in fines. their fair share. But it does not require Under the current ‘‘joint and several’’ liabil- they can avoid these kinds of suits, but them to pay more than their fair share ity rules if one defendant can’t come up with they also sacrifice an increase in except in certain extenuating cir- his share, the others have to pay it. growth and jobs that can come from cumstances. Instead, D’Amato would establish ‘‘propor- going public. This is costing America This will stop the tactic of going tional liability,’’ in which, with few excep- jobs. after the deep pockets—like the ac- tions, each defendant would pay a percentage Some have suggested that companies countants. The rule is sue everybody of the penalty equal to his share of guilt, as from overseas are afraid to establish and anybody, and then get the rich de- determined at trial. Thus, if the defendant businesses in America out of fear that who owes 80 percent is bankrupt, the de- fendants to do the paying. frauded investors would be unable to recover they too will fall victim to these suits. Under this bill, if a party to the suit is most of what they are owed, even if another This is costing America jobs as well found to have contributed to a loss but did defendant has the money. and economic growth. not do so knowingly, that person pays only This provision was aggressively sought by Money that would otherwise be spent the percentage of the loss he or she caused. the accounting profession after some firms on new job growth, and on research and For example, if this person caused 2 percent were assessed hefty penalties for S&L frauds. development is paid out to lawyers to of the loss, they pay 2 percent of the liability Proportional liability is like letting the settle these suits or money is spent claim. getaway driver off with a speeding ticket if fighting them. Mr. President, I strongly support S. he didn’t intend for his partner to shoot the 240. I think we need to act on it now. bank teller. It protects the partially guilty Furthermore, excessive costs are at the expense of the investor who is com- passed along to consumers in the form And I am going to oppose any amend- pletely innocent. of higher prices. All of this has a ripple ment that I think will weaken this bill. Surely, most corporate executives are hon- affect on our economy. Mr. President, I think it needs to be passed as it is. est. But since there’s little evidence that it is making America less competitive This bill has already been moderated frivolous lawsuits are a real problem, it and creating fewer jobs at a time in enough in committee to give it bipar- looks as if business groups seek ‘‘reform’’ this country’s history when we should tisan support. So I urge the Senate to legitimat lawsuits. pass S. 240 as soon as possible. A cynic could guess what goes through become competitive, and we should be their minds when they see a thief in a three- creating more jobs in order to stay Mr. President, I yield the floor. piece suit held to account: competitive. Mr. BRYAN addressed the Chair. ‘‘There, but for the grace of God, go I. In my home State of North Carolina The PRESIDING OFFICER (Mr. Mr. FAIRCLOTH addressed the alone, 116 companies have contacted MACK). The Senator from Nevada. Chair. me and asked for help in passing this Mr. BRYAN. Mr. President, I thank The PRESIDING OFFICER. The Sen- bill. They are united in their effort to the Chair. ator from North Carolina. end the abusive lawsuits that are being Mr. President, I rise in opposition to Mr. FAIRCLOTH. Mr. President, I filed. Together, these companies in one S. 240. I should like to make a couple of rise in strong support of S. 240. I was an small State alone, in North Carolina, preliminary observations. original cosponsor of this bill in this employ 118,000 people. That is why the This is not the kind of riveting stuff Congress, and in the last Congress. bill is so important not only to North that keeps everybody in America who Mr. President, securities litigation Carolina but to the Nation as a whole. is watching on television at the edge of reform is not a household issue. It is Mr. President, let me assure you that their seats. Much of this discussion is not one that many people follow. But nothing in this bill will prevent anyone esoteric, technical, and full of legal nu- the fact is that it is very important for from filing a legitimate fraud case ances, but no one should conclude from our economy, and very important for against any company. Not one sentence that preliminary observation that it job creation in our country. in this bill will restrict anyone’s rights does not have an enormous impact on Very simply, this bill will attempt to who has a legitimate complaint. millions and millions of Americans. put an end to frivolous class action If it did, I do not think 50 Members of Everyone who has a retirement ac- lawsuits that are filed against Amer- the Senate would have cosponsored the count in which he or she has invested ica’s publically traded companies. bill. in securities, millions of small inves- These are lawsuits that have little and Also, please do not be fooled by the tors, all have a stake in this legisla- often no bearing. They are filed for the ads you are seeing or hearing on this tion. sole purpose of blackmailing the com- bill. They are not paid for by con- The American securities market is panies. They are not lawsuits; they are sumers. They are paid for by trial law- acknowledged by all to be the world’s legalized blackmail into settling suits yers—wanting to protect their lucra- safest and most effectively regulated, rather than going to court. Everyone tive industry. and the underpinning for this system that has followed the issue at all Consumers will be helped by this bill. has been twofold. No. 1, the powers knows, or who has ever been sued Any consumer that has a job—or wants which the Congress has vested in the knows, that it is often cheaper to set- a job—or wants to keep a job will be Securities and Exchange Commission tle up front than it is to go all the way helped by this bill. Not one consumer to regulate and keep the marketplace to trial with the cost of lawyers today. with a legal, legitimate lawsuit will be honest, fair and open to investors is Of course, once the suit is settled, the hurt by this bill. one important aspect, in addition to attorneys that brought them keep the Mr. President, a point that is not the adjunctive support provided by money. They keep the larger portion of often made is that the consumers and State securities administrators in the it. It has become a cottage industry for plaintiffs in the class action suits rare- respective 50 States. But as has been certain lawyers that has been created ly benefit from these lawsuits. You pointed out by my distinguished col- over the last 20 years. I think it is time would think that the consumers and league, the senior Senator from Mary- to put an end to it. And that is the pur- plaintiffs are receiving the benefits. land, the ranking member of the Bank- pose of this bill. But they are not. Study after study ing Committee, private causes of ac- The problem is dramatic. Since 1980, shows that lawyers get the vast major tion are recognized by security regu- there has been a 73-percent increase in portion of any settlement. lators to be an equally important part

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Friday, June 9 of this year makes this friend, the junior Senator from Ala- S. 667 would also extend the statute observation, and I quote: bama, Senator SHELBY, and I intro- of limitations for security fraud action Securities regulators say they are opening duced our own bill earlier this year, S. in a manner suggested by the SEC and investigations into insider trading at a rate 667, as an alternative to the legislation virtually every other unbiased witness not seen since the mid 1980’s, the era in that is before us today. Our bill is a who appeared before the Banking Com- which Ivan Boesky, who went to jail for carefully tailored, fair approach that mittee. It codifies the reckless stand- trading on inside information, became a would prevent frivolous actions from ard of liability with current law with household name. proceeding while at the same time pro- the Sunstrand case, which Senator And then later I quote again. tecting meritorious actions. SARBANES referred to, and it restricts, ‘‘It’s a growth industry,’’ said William Let me make a comment about frivo- Mr. President, secret settlements, pro- McLucas, Director of the Division of En- lous lawsuits. I think there is a legiti- forcement of the Securities and Exchange tective orders, and the sealing of cases Commission. ‘‘In terms of raw numbers, we mate problem there, but the way in so that the public really knows what have as many cases as we have had since the which we deal with frivolous lawsuits happens in these cases. 1980’s, when we were in the heyday of merg- is to impose sanctions on attorneys In my judgment, the bill that Sen- ers and acquisition activity.’’ who file frivolous lawsuits and make ator SHELBY and I sponsored is reason- The North American Association of them be financially responsible for able, targeted, and balanced. It solved Securities Administrators estimates their misconduct in filing those frivo- those problems that have been identi- that each year there is approximately lous lawsuits. I favor enhancements to fied while preserving the system that $40 billion of fraud in the securities rule 11 under the Federal Rules of Civil has made our capital markets the envy marketplace. So millions of investors, Procedure, and earlier this year I was of the world as the strongest and most people who do not think of themselves privileged to offer the Frivolous Law- safe. By contrast, Mr. President, the as stock barons but have their small suit Prevention Act which is designed bill before us today makes radical retirements invested in the securities to provide an additional power to Fed- changes in our securities laws, laws market, can be affected by what this eral judges once a determination is that have worked exceedingly well over Congress does on this legislation. made that a frivolous lawsuit or claim the past six decades. In my view, Mr. President, the bill is made to impose sanctions, and that Let me discuss some of the argu- pits innocent investors, many of whom means financial responsibility so that ments made for these radical changes. are elderly and are dependent upon the defendant who is required to defend The primary premise of those who sup- those investments for their sole source that frivolous lawsuit can make his or port S. 240 deals with an allegation of retirement, on one side and those her or its expenses whole again. I sup- that there has been an explosion of who are trying to immunize themselves port that. class action security lawsuits and that from liability by reason of their own I submit to my colleagues that this we must undertake these radical re- fraud on the other side. legislation which we have before us forms in order to prevent this abuse. I recognize the need for some changes this evening is far more than an at- The Congressional Research Service, in our securities litigation system. I do tempt to curb frivolous lawsuits be- at my request, prepared a report that not appear before my colleagues this cause if that were its purpose, I would was issued on May 16 of this year and evening as a defender of the status quo. be in the vanguard of urging my col- entitled ‘‘Securities Litigation Reform: I commend the distinguished chair- leagues to adopt this legislation. Have frivolous shareholder suits ex- man and the sponsors of this bill be- S. 667, which has been endorsed by ploded?’’ Let me read to you some of cause in a number of areas the bill numerous groups including the North the findings of the CRS study. Again, which they have introduced improves American Association of Securities Mr. President, I quote: the present system, and it does so in Regulators, the U.S. Conference of While some current legislation . . . and the these areas without disadvantaging the Mayors, and the Government Finance outcry of various corporate executives sug- innocent investors who may have been Officers Association contains reform gest that the volume of warrantless securi- defrauded. These areas include the pro- measures that will improve the system ties litigation has exploded to crisis propor- hibition of referral fees to brokers, pro- for all Americans. tions, evidence of this ‘‘explosion’’ is far S. 667 also contains many provisions from definitive. We know that in the 1990’s, hibition on attorney’s fees paid from the number of annual Federal class action, SEC settlements, no bonus payments to eliminate abusive suits and to pro- securities cases filed has returned to the to class plaintiffs, elimination of con- tect all parties to litigation including proximate level of such filings during the flicts of interest, payment of attor- a novel proposal for an early evalua- early and mid-1970’s. ney’s fees on a percentage basis, and tion procedure designed to weed out And I continue with the quote. improved settlement notices. those cases that are clearly frivolous By the standards of the docket sizes faced Mr. President, I think all of us would cases and, as I said previously, to im- by Federal courts, the upper limits of these agree that those are important and pose sanctions when necessary. It pro- potentially ‘‘abusive’’ securities suits re- positive changes which impact the se- vides for a rational, proportionate li- main exceptionally small; the filings have curities litigation system in America. ability system. never exceeded 315 yearly in 20 years. And if we are not in unanimity, there Mr. President, it protects the de- ‘‘* * * 315 cases a year in the past 20 is virtually a consensus everywhere frauded investors fully so that when years.’’ Let me reiterate that point that these go a long way to correcting there is an uncollectible judgment again. ‘‘* * * 315 cases in 20 years.’’ abuses in the securities litigation sys- against the primary wrongdoer, they In fact, when multiple filings are tem. But any system must be balanced, can fully recover the amounts of their consolidated, because some companies and it must be fair so that it does not losses. It provides a reasonable regu- face more than one lawsuit as a result preclude meritorious suits. latory safe harbor provision, as my dis- of the allegation of securities fraud, The Trojan horse that brings this tinguished friend and colleague, the approximately 120 to 150 companies are legislation to the floor unfurls the en- Senator from Maryland, pointed out sued each year. sign of preventing frivolous lawsuits. I earlier this evening. And importantly, Mr. President, that is out of some share that conclusion, as does the dis- S. 667 also contains other measures to 14,000 registered companies —14,000 reg- tinguished ranking member, who pre- preserve meritorious suits. istered companies. And approximately viously spoke in the Chamber. But the It restores aiding and abetting liabil- 120 to 150 companies get sued each passengers inside this Trojan horse ity eliminated last year by the Su- year. have very little interest in deterring preme Court in the Central Bank of The CRS goes on to say:

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Securi- are three studies that have been called high stock price volatility often observed ties class action suits have actually de- to my attention that reject that thesis. among high tech firms. clined sharply in the last 20 years rel- One study by Prof. Baruch Lev of the However, another analysis of these ative to both the number and the pro- University of California at Berkeley, high tech firms indicates that their un- ceeds—the number and the proceeds— involved public companies whose share usually short, and unpredictable prod- of initial and secondary public offer- price dropped by more than 20 percent uct cycles may, in fact, predispose ings, stock market trading volume, and in the 5 days following a disappointing their management toward a greater every other measure of economic activ- earnings report. tendency to suppress proper disclosure ity. To claim that suits by victims of Although there were 589 such cases or to provide false ones. financial swindles have constituted an where the stock dropped at least 20 per- On balance, the evidence does not appear explosion in civil litigation is patently cent from 1988 through 1990, class ac- to be compelling enough for one to defini- false. tion suits were filed against only 20 of tively assert that warrantless class action Now, we are also told, Mr. President, those firms, approximately 3.4 percent. suits have exploded. that so many companies are being sued Moreover, Professor Lev compared Mr. President, let us take an even that they are being distracted from those 20 firms with similar firms that closer look at the underlying premise other businesses. This is simply not were not sued and found that the firms upon which opponents would rewrite, true. According to figures from Securi- that faced litigation tended to put out in my view, in a radical way, our high- ties Class Action Alert, only about 140 rosy projections, or forward-looking ly successful 60-year-old securities law. public companies were sued in securi- statements, just before releasing the First, we are told there is an explosion ties fraud actions last year out of some bad earnings report, the issue that my of securities fraud cases. The CRS re- 14,000 public companies reporting to distinguished colleague from Maryland port demonstrates that this simply is the SEC. The only suits that have been so ably addressed that operates under not the case. going up are business suits against the rubric of safe harbor, of which Let me invite my colleagues’ atten- each other; that is, companies suing much more will be said during the tion to a chart that I have had pre- companies—companies suing compa- course of this debate by him and, I am pared. These are securities class action nies, not suits by individuals against sure, my other colleagues. lawsuits filed from 1974 to 1993. In 1974, businesses. So if the companies who are By contrast, the firms that were not over here, perhaps 290 cases; 20 years suing each other are so troubled by sued tended to publish more sober later, in 1993, approximately 290 cases. litigation, why do they not just stop statements warning investors in ad- So in more than 20 years, when the suing each other? vance that earnings would be lower population of America has geometri- Mr. President, I think I have the an- than expected. cally increased, when the amount of swer. It is because they do not want to There was another study conducted general civil litigation—general civil prevent themselves from being able to by the firm of Francis, Philbrick, litigation, not securities class ac- sue. They just want to prevent private Schipper from the University of Chi- tions—has grown dramatically, the individuals from being able to sue cago which searched for lawsuits number of class actions brought on be- them. It is as simple as that. These against companies sustaining 20 per- half of securities plaintiffs has re- companies would also have us believe cent declines in earnings and sales. mained relatively constant, somewhere that because of these suits, companies The author reported that, out of 51 at the highest point, 315, and currently are fearful of going public, that they such at-risk firms during 1988 to 1992, 290 cases. cannot raise the capital in the securi- only 1 of the 51 was the target of a Mrs. BOXER. Will the Senator yield ties market. shareholder suit related to an earnings for a question on that point? Mr. President, there is no credible announcement. Mr. BRYAN. I will be pleased to evidence that I am aware of that sup- And still a third such study per- yield. ports this astounding proposition. The formed by Princeton Venture Research Mrs. BOXER. I am astounded by this existence of these suits has had no dis- shows that between 1986 and 1992, less chart. The proponents of this bill have cernible impact on capital formation of than 3 percent of the companies whose been saying, since we started in the business. The Dow Jones Industrial Av- stock dropped by more than 10 percent committee, that there has been an ex- erage has just surpassed 4,000—an all- a day were sued. plosion in class action lawsuits filed— time high. I would invite my col- So the claim that companies are an explosion. We are going to hear to- leagues’ attention to this chart. In bombarded with suits whenever their night from all quarters. What the Sen- terms of the initial public offerings, stock goes down is simply not sup- ator is showing us tonight is really ex- over the period of time that we have ported by the studies I have seen. None traordinary. There has been no explo- referenced here, they have gone up by of these studies, even using a 20-per- sion. approximately 9,000 percent in the last cent stock drop, found even 3.5 percent Mr. BRYAN. My colleague is correct. 20 years. of the companies in this classification Over the past 20 years, the numbers In the last 20 years, initial public of- that were sued. have been relatively constant. This ferings have risen by 9,000 percent— Even the Senate Banking Committee represents one-tenth of 1 percent of the now, that is the number, Mr. President, staff report published last year, under 235,000 Federal suits filed in 1994—one- of initial public offerings—while the the able direction and support of Sen- tenth of 1 percent. There were 235,000 capital raised, that is the amount ator DODD and his staff, concluded, and cases filed in the Federal court system raised by these initial public offerings, I quote: in America last year, and one-tenth of has increased by 58,000 percent. So both There is also no clear evidence of the ex- 1 percent involved class action securi- in terms of numbers and in terms of tent to which price declines drive securities ties lawsuits. So my distinguished col- the dollars raised, they have gone up class actions to be filed. league is correct in her observation. 9,000 and 58,000 percent, respectively. But the proponents of S. 240 tell us, Mrs. BOXER. May I just say to my Let me say, I am glad to hear that, be- most of these suits are filed just so the friend, thank you for this very cause that is important that we have plaintiffs can get a settlement. Again, straightforward chart because we are the necessary capital formation to fi- the documentation does not support going to hear it all over the place in nance new enterprises. That is the es- this conclusion. this U.S. Senate. And I am going to sence of the free enterprise system. The Senate staff report, to which I refer back to your chart, I say to my The contention is invariably made previously referred, examined senti- friend. Thank you very much for set- that every time a stock drops to any ments of Federal judges regarding ting the record straight. There is no degree, regardless of the reason, that meritless litigation and found, and this explosion of these class action law- there is a great rush to the courthouse again is directly from the staff report: suits. Those are the facts. And I thank and lawsuits are filed based solely upon Seventy-five percent of the judges sur- my friend for presenting it in such a the fact that the stock has declined in veyed . . . thought that frivolous litigation clear fashion. value. I want to address that assertion. was a small problem or no problem at all.

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It requires a higher standard of Federal Code of Civil Procedures, that claims. misconduct—namely, reckless conduct. deals with frivolous lawsuits, is an ab- Since 1979, the SEC, recognizing some That seems tough enough to me. Any- solutely appropriate and responsible forward-looking statements may be one who makes a projection and meets way to deal with errant and irrespon- important, has allowed limited pre- this standard ought to pay his or her sible lawyers who file clearly frivolous dictions and protected them from li- victims. lawsuits. ability if they are made in good faith A second troublesome provision in S. I believe the strengthening of those and with a reasonable basis. Neverthe- 240 is the severe limits on joint and provisions under the law, targeted and less, false predictions continue to be a several liability, even when the pri- tailored, is the most effective way of favored tool of con artists, promoters mary wrongdoer is insolvent. Amer- curtailing lawyer abuse. and the illegal inside traders to pump ica’s legal system for fraud tradition- The evidence clearly shows we ought up the price of their stock in order to ally has been based on joint and several not to throw the baby out with the profit at the expense of innocent inves- liability. Under this standard, if one bathwater. tors. wrongdoer is found liable but has no S. 240 goes well beyond what is need- S. 240 sponsors have not explained to assets, the victim can be reimbursed ed to deal with the abuses that exist in my satisfaction why corporate state- fully by the other wrongdoers without today’s system. Every Member has ments that are made in bad faith with whose assistance the fraud could not cause to be concerned, because once no reasonable basis or even with reck- have succeeded. The underlying this bill is passed and the next fraud less disregard for their falsity need to premise for this legal rationale is in comes along, whether it be a derivative be immunized from liability when that scale of justice—in the balance. disaster in your State, another fraud has occurred. I hope during the Who should bear the burden of the loss? Keating, a Milken or a Boesky, your course of this debate we might have The innocent investor, who is totally constituents will want to know why such an explanation. We are talking without fault—no fault whatsoever—or you supported legislation that took about statements made in bad faith a defendant whose conduct is at least their rights away to recover for their with no reasonable basis and with reck- reckless and may be subject to inten- losses as a result of such fraudulent ac- less disregard for their falsity. I know tional fraud? Who ought to bear the tivity. of no public policy, Mr. President, that burden? The philosophy that Unfortunately, there are provisions suggests that kind of conduct ought to undergirds the American system of ju- in S. 240 that would effectively gut pri- be shielded from liability. Unhappily, risprudence for centuries has said that vate actions under the securities laws, S. 240 in its present form would do just under those cases, the scales of justice eliminate deterrence and hurt average that. weigh in favor of the innocent victim, Americans who depend on the system Moreover, the SEC is in the middle of the one who had no responsibility, did to protect their savings, their invest- a rulemaking process to study forward- not in any way contribute to the mis- ments, and their retirements. These looking statements and has asked Con- deed which caused the loss. provisions would give free rein to the gress to allow it to complete its proc- The rule has enabled swindle victims next Charles Keating and could cause ess. The original S. 240, as my col- to recover full damages from account- incalculable damage to States and lo- league from Maryland has pointed out, ants, brokers, bankers and lawyers who calities that suffer the same fate that would have done so. It is a technical participate in securities scams when Orange County has recently faced. area, highly complex and, frankly, it is the primary wrongdoer has no assets Among the most troublesome provi- a subject best left to the administra- left, has fled the jurisdiction, or may sions in S. 240 is the safe harbor exemp- tive agency in a rulemaking process be in jail. The original S. 240 sharply tion from fraud liability for forward- rather than in a broad legislative en- limited this rule, immunizing reckless looking statements that essentially al- actment. wrongdoers from joint and several li- lows executives to say almost anything However, in committee, a virtual un- ability. and be immunized from liability as a limited exemption or safe harbor—my If that had been the law, most inves- result of such misstatements. colleague has aptly referred to this, tors would not have recovered their life Senator SARBANES has indicated he not as a safe harbor but a pirate’s cove, savings in the Charles Keating/Lincoln will be offering an amendment to cor- and I think he makes a compelling ar- Savings & Loan debacle. Although rect this problem, and I intend to join gument. Any statement either made Keating had become bankrupt, the vic- him as a cosponsor of that amendment. orally or in writing that projects esti- tims recovered their damages from the It is something that concerns the Fed- mates or describes future events, so accountants, bankers, and lawyers who eral and State regulators; the SEC has long as it is called a forward-looking assisted Mr. Keating. Of the $240 mil- written, the National Association of statement, is immunized as a result of lion in judgments imposed in favor of Securities Administrators has written, the legislative draft that is before us, class action plaintiffs, nearly 50 per- government finance officers, and con- even if that statement is made reck- cent—or $100 million of those recov- sumer groups all have written the com- lessly. eries—were against accountants, bank- mittee expressing their concern. This is a gaping loophole through ers and lawyers—not the primary Corporate predictions, called for- which wrongdoers or victims of fraud wrongdoers, but individuals who con- ward-looking statements, inherently would be denied recovery. The effects ducted and assisted Mr. Keating in per- are prone to fraud as they are an easy of these changes, I think, are difficult petrating the fraud. way to make exaggerated claims of fa- to forecast, but I think they would Despite extensive testimony, particu- vorable developments to attract inves- have a devastating impact on the mar- larly by the SEC, that restricting joint tors to part with their cash. ket. and several liability will reduce recov- In fact, the Federal securities laws I remind my colleagues that it is al- eries for defrauded victims and encour- were passed in large part because of the ready extremely difficult to win a secu- age more fraud, the bill, as reported, speculative stock projections that led rities case. Under the 1934 Securities restricts joint and several liability to the stock market crash in 1929. Act, a plaintiff must prove fraud or even further. Recognizing the inherent potential reckless behavior. Recklessness is de- In the all-too-often cases in which a for exaggerated claims, forward-look- fined as ‘‘highly unreasonable conduct knowing violator is bankrupt, in jail, ing statements by public companies that involves not merely simple or has fled, the liability of reckless viola- were not even permitted until 1979. even gross negligence, but an extreme tors to the uncollectible share would be I think that bears repeating. Until departure from standards of ordinary capped. That is, there would be a limi- 1979, no forward-looking statements care.’’ tation. Those who are proportionately

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00074 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8915 liable under the system that is incor- their relief. Instead, this provision rity Administrators, and virtually ev- porated in this print of S. 240 would be gives preference to wealthy investors eryone that testified from a regulatory subject only to their proportionate who can afford to seek redress for their public policy point of view, we give share, even though the innocent victim losses on their own. comfort to those who perpetrate fraud is unable to recover his or her full S. 240 also eliminates a principal in- on innocent investors. amount. vestor protection provision that was I will offer an amendment that deals There is one exception, as was point- originally part of S. 240, as the distin- with that issue either later this ed out, and that would be with respect guished ranking member of the com- evening or tomorrow, as our time per- to victims whose net worth is under mittee, the senior Senator from Mary- mits. $200,000 and have recoverable damages land, points out. That deals with the I might just add that Senator DODD, of more than 10 percent of their net statute of limitations issue. Currently, one of the prime sponsors, indicated he, worth. the statute of limitations is 1 year too, believes S. 240 needs to be amended May I suggest, Mr. President, that is from the point of the discovery of the to reflect that statute of limitations a very narrow window of opportunity. fraud on the part of the victim, but in issues we just talked about. Obviously People who own their own homes, auto- no event for more than 3 years after we will welcome his support. mobiles, and have the most modest of the fraud. The SEC, the North Amer- S. 240 also fails to restore the aiding assets frequently might have a net ican Association of Securities Adminis- and abetting liability for private suits worth of $200,000. So we are not talking trators—every regulator that I am and eliminates the ability of the SEC about the goliaths of business people aware of, who offered testimony or cor- to sue aiders and abettors for reckless who are extraordinary affluent; we are respondence, indicated that this period behavior as opposed to fraudulent con- talking about tens of millions of Amer- is simply too short. It provides insuffi- duct. icans who would be excluded from re- cient time for meritorious, legitimate Members will recall, Mr. President, I covery under this provision. That cap plaintiffs to bring their action. The cited in the Keating case that recovery on joint and several liability means it original S. 240 extended the period to 2 of $100 million was from aiders and will be virtually impossible for a great years after the violation was, or should abettors. If S. 240, as this legislation is many of those victims to recover their have been, discovered by the injured being processed today, was the law losses. plaintiff, not more than 5 years after back in 1991, that $100 million could The bill also does several other very the fraud itself. not have been recovered. It could not damaging things. The bill would also As the Senator from Maryland point- have been recovered because the court, turn over control of class actions to ed out, we dealt with this issue back in just last year, in another case that was the wealthiest investors, even though 1991 under the Lampf case. That case a surprise to those who follow the secu- their interests may not be as extensive will have particular relevance to a rities industry issues, held that a rul- as the small investors’ that the class number of my colleagues, because im- ing that had been in effect for 25 years, action device was designed to protect. mediately after the Lampf case, which namely, that aiders and abettors were It relegates small investors to a sec- gave a retroactive interpretation to covered under the provisions of the se- ond-class status and makes the securi- the law, surprising most securities liti- curities law, that aiders and abettors ties markets strictly a playgrounds for gators by concluding that there was were, in fact, not covered, and under a the big boys—the wealthy. only a one to three-year statute of lim- 5–4 Supreme Court decision, Central In committee, a new provision was itations, immediately thereafter, Bank of Denver, such liability for added that requires courts to designate Charles Keating filed a motion to dis- aiders and abettors is eliminated. the ‘‘most adequate plaintiff’’—words miss. We are not talking about proportion- of art—in a private class action. This A number of my colleagues joined me ately. We are not talking about joint ‘‘most adequate plaintiff’’—defined as in supporting an amendment to the and several liability. We are talking the plaintiff with the largest financial legislation that restored the 2–5 year about aiders and abettors. They have a interest in the case—is given the power provision retroactively, so that those free ride. They are home free. All you to select lead counsel, control the case, cases for dismissal would not find need to do is get yourself in the aider and even to make settlement agree- themselves dismissed simply because and abettor category and you can have ments for any amount or even dis- the statute of limitation provision a field day. It is ‘‘Katie bar the door,’’ missing the case. came as a surprise. do whatever you wish, and insofar as a This change to S. 240 makes plain the What this provision seeks to do with private cause of action, you are pre- real motives behind the bill and makes respect to the prospective cases is the cluded from recovery. hollow any protections that this is to same 2–5 year. As the distinguished Mr. President, no matter how anyone protect meritorious fraud actions. This Senator from Maryland pointed out, feels on securities litigation reform, ‘‘most affluent plaintiff″ requirement when this proposal came to the floor to can it possibly be in the best interest would simply wipe out average inves- correct the retroactive abridgement or of America to insulate from liability a tors who are defrauded. The wealthiest shortening of the statute of limitation category of persons whose conduct has investors may have close ties to big from 2–5 to 1–3, there was no objection. inflicted upon innocent investors enor- corporate defendants who can afford to Everyone agreed. mous financial loss, maybe even wiping accept less than the full recoveries. The only issue—and it was a legiti- out everything that a retired person But it gives them complete control mate question—should we not take a might have in his or her investment? over class actions at the expense of av- broader look at security litigation re- I indicated that the Supreme Court erage investors. form? There was no objection to the also imposed a limitation even on the Aside from raising a specter of collu- premise you need a longer period of SEC—even on the SEC. They can only sive intervention by large investors, time. move against aiders and abettors under and simply dismiss cases or enter into I must say that the SEC has been a much stricter standard. The defend- sweetheart settlements, the substitute very clear, and their testimony has ant must knowingly—and that is the virtually precludes small investors been compelling, that even with all of standard which even the SEC is forced from being able to obtain attorneys the resources that the SEC can com- to meet now as a consequence of the willing to invest their time on cases mand and marshal, it takes an average decision. We will be offering an amend- over which they have no control and of 2.25 years to complete an investiga- ment on this, Mr. President. for which they may not be paid. tion of an alleged securities fraud. I note that Senator DODD, who has This also directly contradicts the That is the SEC, with immense re- worked for many, many years—and all reason why class actions were devised sources. who work with him on the committee in the first instance, and that is to give We, by failing to provide for the stat- and consider ourselves his friend and average investors, who cannot afford to ute of limitations correction which was close colleague acknowledge Senator fight big corporations by their own originally part of this bill and in re- DODD’s fine work. Last year, in an means, the ability to band together jecting the advice of the SEC, the April 29, 1994, ‘‘Dear Colleague’’ letter, and collectively seek a remedy for North American Association of Secu- Senator DODD made this observation:

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00075 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8916 CONGRESSIONAL RECORD — SENATE June 22, 1995 Allowing private actions against aiders harshest standard currently used. In Breeden, who testified that the elimi- and abettors is an indispensable part of our my view, and in the view of those who nation of private actions would require securities enforcement system, and I believe regulate the securities market, it is the Commission to hire 800–900 more Congress must consider legislation to rein- not much of an improvement over the lawyers to police the markets. state liability in this area. original language and would prevent le- Even if Congress should choose to ap- Senator DODD was absolutely right gitimate plaintiffs from even asserting propriate the added money—which I se- on the mark in 1994. The reason is even a cause of action. riously doubt—the system will not be more compelling in 1995, based upon S. 240 also contains an unfair and in- as effective. some of the information that I shared flexible limit on victims for recovery. I hope each Member of this body will with Members earlier from those on The bill contains a formula designed to remember that when the next financial the SEC that tell us about the amount limit the amount wrongdoers have to debacle hits, average Americans, many of fraudulent activity. In this par- pay their victims. Basically, if the of whom may be people who live in ticular instance we talked of insider company stock goes up during a 3- your district, will be unable to runner trading. month period following public exposure their losses. Senator DODD reiterates: of the fraud, for whatever reason, the Last week, my constituents who were Lawyers, accountants and other profes- victims’ recovery is reduced accord- victims of the Keating scandal visited sionals should not get off the hook, in my ingly. Washington, along with other Keating view, when they assist their clients in com- victims from other States. mitting fraud.... The Supreme Court has Finally, Mr. President, S. 240 would laid down a gauntlet for Congress.... In shield evidence of fraud from the pub- One way Jeri Mellon from Henderson, my view, we need to respond to the Supreme lic. S. 240 purports to attempt to elimi- NV, a community just 10 miles out of Court’s decisions promptly and I emphasize nate secret settlements. The bill fails Las Vegas. She is head of the Lincoln promptly. to ban the almost universal secrecy or- bondholders committee. She and Joy As Senator DODD so often does, he ders that are required by defendants as Delfosse came to see me. speaks with precision, eloquence, and a condition of producing documents Every Member of Congress should be cogency. He is right on the mark, Mr. during discovery. standing up for the Joy Delfosses and President. We need to do that in the These orders remain in effect Jeri Mellons in their States, not the course of processing any securities leg- throughout litigation and generally re- Charles Keatings. islation. quire that, once a case is over, docu- These are retirees whose life savings Mr. President, this bill, also as re- ments be destroyed or returned. would have been wiped out if they had ported by the Banking Committee, Such secrecy orders block significant not been able to recover as a result of deals with the Securities Act of 1933— corporate wrongdoing from public scru- the Keating fraud. And that ability to that is another provision—not the 1934 tiny. recover would have been lost if aiders act. The 1933 act targets fraud in ini- Moreover, these orders allow defend- and abettors had not been liable. And tial offerings of securities to the pub- ants to proclaim their innocence after that ability to recover may have been lic. Initial public offerings historically settlement without fear of contradic- lost if the statute of limitations had have been rife with fraud by huckster tion—and permit them to claim the not been extended. And that recovery promoters peddling new securities. cases are frivolous when they visit may have been lost as a result of the The 1993 act holds such wrongdoers with Members of Congress. And be- proportionate liability proposal con- strictly liable. The bill as reported, cause the documents upon which the tained in this legislation. however, makes it nearly impossible to case was predicated are sealed, there is Mrs. BOXER. Will the Senator yield hold crooks who sell phony securities no effective rebuttal. for a question? strictly liable for their fraud. I would note one final irony of S. 240. Mr. BRYAN. I will be pleased to do S. 240 also retains some highly bur- The bill violates one of the primary so. densome pleading requirements—bur- tenets of Republican theory—this is, Mrs. BOXER. The Senator is right to dens that must be met by fraud vic- returning government functions to the bring up real people in this conversa- tims, plaintiffs in these class actions. private sector. tion. Because oftentimes we get into By ‘‘pleadings,’’ we are talking about For 60 years, private attorneys gen- the legalese and we forget what we are an illegal document that commences a eral have supplemented the antifraud doing here. So I appreciate the fact lawsuit in which a plaintiff—in this in- efforts of Federal regulators at the that the Senator from Nevada brings stance a victim of fraud—states forth SEC and at the Justice Department. up the people that he met. I was with his cause of action. Those pleading re- Such an enforcement scheme is en- him at that occasion. We met people quirements under S. 240 are exceed- tirely consistent with the Republican from Florida. We met people from Ari- ingly burdensome. contract. zona. We met people from Nevada and Under current law, fraud plaintiffs But as CBO noted in its cost estimate California. are not required to state specific facts on S. 240, if private rights of action are I want to ask the Senator a question, establishing the defendant’s intent. curtailed, substantial government in- because I think anyone watching this That is a subjective state of mind. It volvement, including increased SEC ef- debate ought to listen to the response seems pretty reasonable. It is a pretty forts, will be needed to assure that the of the Senator. My friend from Nevada onerous burden to be able to allege markets remain fair. who is addressing this Chamber is a with particularity what the subjective Morever, as CBO stated in its June 19 learned attorney. He has great experi- thought process would be of a defend- letter to the committee, the SEC will ence in seeking justice for people. ant. have to double or triple its resources Is it the Senator’s opinion that the The reason for that is because such allocated to this function—and the cost people who were bilked by Charles facts are normally only uncovered to the American taxpayer could be up Keating would have recovered as much later during a deposition or discovery to $250 million over the next 5 years. as they have recovered, which as I un- process when there is a chance to ex- That is to say, by reason of the re- derstand it is between 40 percent and 60 amine the defendant or defendants strictions placed on private causes of percent of their losses, if S. 240 had under oath. action, if one has a view of regulating been the law of the land? One of the ways the original S. 240 the marketplace effectively the burden Mr. BRYAN. The answer to the ques- tried to block cases was through im- essentially now falls almost exclu- tion of the Senator is unequivocally possible pleading standards requiring sively to the SEC, and they would have clear. They would have been unable to plaintiffs to state specific acts dem- to up staff and the cost as estimated by recover as much as they did. I would onstrating the state of mind of each de- CBO is $250 million; $250 million paid simply point out to my distinguished fendant. Witness after witness indi- by the American taxpayer. colleague from California, these are in- cated that this would prevent, for all I invite my colleagues’ attention to nocent people. These are not people practical purposes, many fraud victims pages 30–32 of the committee report for who in any way participated in any from recovering their money. CBO’s estimate. scam. They are not lawyers. They are The bill as reported merely replaces This confirms the view of the last Re- ordinary folks whose retirement was the impossible standard with the publican Chairman of the SEC, Richard on the line. These were retirees.

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00076 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8917 It is interesting. As I know the dis- what happens to people when we act You have people such as the Associa- tinguished Senator knows, they went here in this body, and to say to my tion of Governing Boards of Univer- to what they describe kind of as a friend that we ought to make any bill sities and Colleges who have expressed neighborhood bank, Lincoln Savings pass the Keating test. their concern and support the kinds of and Loan. They knew everybody and We ought to look at any bill when we amendments that we are going to be of- they would come in and say, ‘‘How are are done amending it. I hope we amend fering, and oppose the legislation in its you Suzy?’’ And, ‘‘How are you John?’’ this bill and make it better, and put it current form; the Association of Jesuit And, ‘‘How is the golf game and how to the Keating test. Would those good Colleges and Universities; the Council are you enjoying retirement?’’ people, those innocent senior citizens, of Independent Colleges; the Govern- And they would say, ‘‘Look, what is be able to recover when we are ‘‘done ment Finance Officers Association. this stock offering you have, American with reforming,’’ I put in quotes, the These are not closet groups of trial Continental Corp.?’’ securities law? Yes. We should go after lawyers. The Association of Clerks and And they were told, ‘‘You know, you those frivolous lawsuits. We all want to Recorders; Election Officials and would be crazy not to put money in do that. But there are an awful lot of Treasurers; the Municipal Treasurers that, absolutely crazy. There is a much good companies out there that need to Association of the United States and larger return than you would get just if have the frivolous lawsuit aspect of Canada; the National Association of you put this in a regular savings ac- this bill looked at. But, my goodness, College and University Business Offi- count in the bank.’’ let us not forget the real people, the re- cers; the National Association of Coun- These are the people, I tell my distin- tirees, the people who are the targets. ty Treasurers and Finance Officers; the guished colleague from California, real Let us not forget them because it re- National Association of State Univer- Americans from every State of all po- minds me of the S&L scandal. We made sities and Land Grant Colleges; the litical persuasions, of all political phi- one mistake once. I do not want to see North American Security Administra- losophies—real people, and the impact us make another one. tors. upon them is what this debate is all I thank my friend for yielding. Mr. BRYAN. Mr. President, I thank Mr. President, I do not believe that about this evening. my distinguished colleague from Cali- one can make the case that these are Mrs. BOXER. I have one last question fornia. I know some of my colleagues simply closet advocates for trial law- for my friend. As we saw these people have waited for a while. I will finish, yers, who I understand are the most tell their stories, it was very moving. and yield the floor in a couple of min- disdained group of professionals in They are older. They were targeted by utes. America. I understand that. I am not Charles Keating. And what they told us The Senator from California speaks unmindful of that. is—and this is the question for my with such clarity and conviction. She friend—they went to file their suits, But we ought not with the antipathy is absolutely right to remind us that a that we feel toward them for whatever because they were clearly led to be- little more than a decade ago a big lieve that their investments were pro- reason wipe out the right of innocent mistake was made with respect to the investors to sue. And the bill before us tected, and the salespeople for Charles savings and loan industry. We spent Keating were told to lead them down in its current print will do precisely billions and billions of dollars as a re- that unless we accept the amendments this primrose path. They called them sult. If we do not correct this legisla- the meek and the ignorant. They that the Senator from Maryland, the tion, as my distinguished colleague Senator from California, and I believe sought out ‘‘the meek, the weak and from Maryland, the distinguished col- the ignorant.’’ That is a quote from the Senator from Florida as well league from California, and others will maybe have. Charles Keating’s brochures to their point out, we are opening the door to salesmen. every charlatan and con artist in I thank my colleagues for yielding. We know that Charles Keating put America to prey on innocent investors Ms. MOSELEY-BRAUN. Mr. Presi- his whole family on the payroll and with impunity, and there almost a dent, I would like to speak on the bill. drained all this money that he stole. sense of deja vu. It may not happen to- Mr. President, the United States has And is it not true, I say to my friend, morrow. But it will happen, and the the largest and the best capital mar- that he went bankrupt? consequences will be frightening. I do kets in the world. In no small part that Mr. BRYAN. He went bankrupt. not think we want to make that mis- is because markets in the United Mrs. BOXER. I say to my friend, he take. America’s securities markets States are seen as open and fair. And it could not be touched by these people have served as the world’s finest. The is one important reason over 50 million because he had a lot of lawyers who Lincoln Savings & Loan in Orange Americans are able to participate in protected him. And he went bankrupt. County could be in my State. It could our securities markets. Every investor Is it not true that these good, decent be in your State. I do not want to have can be confident that our markets are senior citizens had to go to the aiders to explain to the good citizens of my honest, and it is very clear that private and abettors? State why I allowed this happen, and securities litigation has played an im- Mr. BRYAN. That is precisely the why my failure to take action pre- portant role in keeping them honest. case. cluded them from being recovered as a As the distinguished California Sen- At the same time, there is real need result of frauds perpetrated upon them. for reform. One study conducted in the ator knows, having read the provisions Each and every one of us share that of the print before us, the thing that is 1980’s that was cited in the Banking concern. Committee’s report on S. 240 found particularly alarming is that there are I have a number of letters from State that every single American corporation several provisions in this law that is and local officials. I am not going to that suffered a market loss of $20 mil- being proposed in its current form, as belabor my colleagues this evening lion or more in its capitalization had to the pleading standard, safe harbor, with all of those. But let me point out the ability to stay or to prevent dis- as this issue has been framed that it is been sued. In other words, every cor- covery—that is ascertaining what the the lawyers. Frankly, the lawyers do poration whose stock at one time de- facts are—so long as there is a motion bear some responsibility here. clined in value by $20 million or more to dismiss; all of those were tactics We talked about rule 11. And I am in was sued for securities fraud during the that were used by Mr. Keating and his favor of banging the lawyers that file period covered by the study. lawyers. All of those. frivolous lawsuits over the head and Another study included in the com- If the law in 1991 was the same as it hit them in the pocketbook. Count me mittee report stated that one out of will be if this is passed, together with at the head of the line for them. But every six companies less than 10 years the Supreme Court decisions that S. under the guise of getting the lawyers, old that received venture capital had 240 fails to correct, those people might unpopular since Shakespeare’s time. been sued at least once and that such never have gotten into the courthouse ‘‘Kill the lawyers first’’—every student lawsuits consumed an average of over door. of Shakespeare recalls that quote. Let 1,000 hours of time of the management Mrs. BOXER. Let me thank my us try to give here a more objective of these companies and an average of friend again for bringing this down to view. $692,000 in legal fees.

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00077 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8918 CONGRESSIONAL RECORD — SENATE June 22, 1995 What these statistics demonstrate is with the costs of fact-finding, of dis- pends on our ability to meet and beat that either our capital markets are lit- covery. It is not just a matter of docu- that international competition, and erally overrun with fraud or that there ments. The time the key employees of that means we need a continuing sup- are at least some unsupportable law- the company may have to spend re- ply of new ideas, new products, and suits being filed. The clear consensus of sponding to requests for information new companies that can produce the the Banking Committee was that the may keep them and, often does keep jobs for tomorrow. These major issues evidence did not and does not support them, from tending to the business of may seem a long way from the arcane the conclusion that our markets are the company and, therefore, that also securities law issues we are debating suffering an epidemic of fraud. Rather, works to coerce settlements. and discussing this evening. But, Mr. the committee’s conclusion was very Some might argue that this is a tech- President, the connection is both clear that there are abusive security nical legal issue and one that is not im- strong and direct. lawsuits being filed, that these suits portant to the general American pub- A recent book by Hendrick Smith en- result in significant adverse con- lic. However, I would suggest that just titled ‘‘Rethinking America,’’ I think, sequences for our capital markets and the opposite is true. Every American, illustrates the connection. That book for our economy generally and that, whether he or she invests in our capital has chapter after chapter recounting therefore, the reform is necessary. The markets or not, has an interest in see- the challenges facing American busi- fact is that securities fraud litigation ing to it that reform is enacted. ness in this new global economy. It can be very lucrative, even in cases The Director of Enforcement of the talks about how some American busi- where there is no fraud. Some would Securities and Exchange Commission nesses are succeeding and how some say particularly in cases where there is made that point very well. Testifying are not. no fraud. before the Senate Banking Committee One of the points it makes in some The Supreme Court made that point in the last Congress, he stated that: detail is the short-term focus that af- very clear in the case of Blue Chip There is a strong public interest in elimi- flicts so many American corporations, Stamps versus Manor Drug Store. The nating frivolous cases because, to the extent an affliction that is not shared by our Court in dictum stated that in securi- that baseless claims are settled solely to major international competition. avoid the costs of litigation, the system im- American corporations are all too ties fraud cases ‘‘even a complaint poses what may be viewed as a tax on capital which by objective standards may have often intensely focused on the short- formation. term price of their stock instead of the very little success at trial has a settle- Chairman Arthur Levitt of the SEC long-term growth and prosperity of the ment value to the plaintiff out of pro- reinforced the point in his testimony business. This short-term focus, which portion to its prospect of success before the Banking Committee. He the current state of our securities laws ***.’’ stated that: The Court’s opinion was, of course, helps to foster, distracts senior man- There is no denying that there are real stated in the driest possible language. agement, makes too many of our busi- problems in the current system—problems nesses less creative, and undermines In the language of my hometown of that need to be addressed not just because of Chicago what the Court was really say- the ability of American businesses to abstract rights and responsibilities, but be- make the investments that have the ing was in this area of the law plain- cause investors and markets are being hurt best long-term payoff. tiffs and lawyers who are willing to by litigation excesses. Our securities laws have also ren- game the system have all the clout. Mr. President, these excesses and the dered many of our businesses mute, These few people, and they are a few tax they impose on our capital markets virtually unable to talk to their inves- people, know that they have the cor- and on our economic growth are par- tors and owners because of the fear of porations and other ancillary parties ticularly onerous because they do not lawsuits. And that fear not only dis- over a barrel, and they are taking ad- even achieve what they are ostensibly advantages the companies and inves- vantage of that fact. They win settle- designed to achieve—the protection of tors, it also hurts all of us because it is ments in all too many cases because of investors who suffer losses. All too an impediment to the smooth func- that leverage rather than because of often, under the current system, inves- tioning of our capital markets. It the merits of the case. tors receive settlements that amount makes it less likely that capital is al- What is more, Mr. President, under to only about 10 percent, or even less, located in a way that produces the current law, small investors in a class of their damages, and that is another most and best new jobs and new prod- action case do not really control the whole set of problems, to hold out false ucts. case, their lawyers do. One plaintiff hopes to people in which they may re- Let me emphasize that point. New lawyer demonstrated the temptation ceive less than 10 percent recovery. jobs and new products. The engine of that a few lawyers have succumbed to The direct legal expenses in settle- our economy depends in large part on all too clearly. He said: ments paid are, again, only part of the the vitality of our capital markets and, I have the greatest practice of law in the tax. There are also a variety of indirect in the final analysis, Mr. President, world; I have no clients. costs, costs that fall particularly heavy that is what this debate is all about. The opportunity for coercive settle- on the entrepreneurial and high-tech I cosponsored S. 240, along with Sen- ments is not the only problem in this companies on which our future econ- ator DODD and other members of the area. The Supreme Court made it clear omy depends. committee because this bill has been again in the Blue Chip case that ‘‘the Of course, investors want to be pro- based on the recognition of all of these very pendency of the lawsuit may frus- tected from fraud, but they also want facts. S. 240 acknowledges the multiple trate or delay normal business activity to be able to get as much information rolls and multiple interests that we all of the defendant which is totally unre- as possible, and they also want to be have in this area, and it is based, I lated to the lawsuit.’’ sure that their companies are focused think, on an understanding that we are The reason for that is not just the on their business instead of on poten- all in this together. We must maintain cost of defending against litigation, it tial lawsuits and litigation. strong investor protection while mak- is the cost and disruption that flow Mr. President, it is important for us ing it more difficult to file frivolous or from the company’s attempts to re- all to remember that investors are not abusive lawsuits. spond to plaintiff’s request for dis- just investors. Investors are also em- We must create a climate where new covery, and discovery is not a minor ployees who want their companies to businesses that create new jobs and matter. The committee report again do well. There are also parents who new products can get the capital they stated: want to see expanded economic oppor- need while ensuring that defrauded in- According to the general counsel of an in- tunity for their children. They are also vestors have the right to recover their vestment bank, ‘‘discovery costs account for participants in the United States econ- damages. roughly 80 percent of the total litigation omy, and they want to see the kind of S. 240, as introduced by Senators costs in security fraud cases.’’ strong growth and job creation that DODD and DOMENICI, went a long way Companies have had to produce over goes along with a strong economy. toward achieving all of those objec- 1,500 boxes of documents and to spend Our world economy is more and more tives. The bill attempted to reduce well over $1 million just to comply competitive. Our future prosperity de- transaction costs so that investors who

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00078 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8919 are harmed see a smaller portion of people will not deal with the small en- statute may not be needed. Most cases their recoveries consumed by attor- trepreneurial, startup companies that are not filed just before the statute of ney’s fees and other miscellaneous are the most likely to be sued—and I limitations expires, so the 1-year/3-year costs. It was designed to help our cap- point out that are most likely to cre- statute of limitations does not seem to ital markets create more jobs and cre- ate jobs—because the potential liabil- be making it difficult for plaintiffs to ate greater long-term economic ity is so much greater than the profit prepare their complaints. growth, something that is also very that can be earned from doing business My own conclusion is that, in light of good for investors. with these companies. Many companies the evidence, a case has not been made The original bill has been modified in are increasingly unable to find ac- for giving section 10(b) implied private a number of important ways. Some of counting firms and law firms willing to rights of action in fraud cases a longer these changes represent improvements do business with them and are having statute of limitations than other Fed- in the original bill, others represent increasing difficulty in attracting the eral securities law related cases. new concepts. The bill before us is not best people to sit on their boards of di- Mr. President, one of the provisions perfect. In some areas, quite frankly, I rectors. And the result of that is, of this bill that has been the subject of would have written it differently and I again, less information and less protec- some attention has to do with the issue suspect everybody in the Senate al- tion for investors and greater hurdles of whether or not it includes something most always feels the same way about for the new companies on which our that has been called the English rule or major legislation. economic future depends. losers pay. That has been a rule that I think it is clear, however, that this Of course, in some cases, the parties never frankly has been applied in bill is a good-faith attempt to balance most responsible for fraud are judg- American jurisprudence. It is the the competing public objectives in this ment proof; that is, they have no assets English rule that says if you file the area and that looking at the overall at all that can be found. In those situa- lawsuit and you lose, then you have to legislation it successfully achieves bal- tions, this bill provides, I think, sub- pay the cost of litigation. However, ance and that, I think, is a very impor- stantial protection for small investors. this bill does not have loser pay in it. tant notion as we address this issue. First, it says that defendants that are The bill simply requires the judge to Achieving balance is important to proportionately liable have their share look at rule 11 of the Federal Rules of keeping our capital markets vital, and of responsibility increased up to 50 per- Civil Procedure, a rule that already ex- it is important to our economic pros- cent of their proportionate share, so ists and pertains to all kinds of civil perity. that all investors are better com- litigation and which calls for sanctions It is important, Mr. President, again pensated for the losses they have suf- for frivolous lawsuits to determine in to keep in mind what this area of the fered. For small investors, those with a these securities cases whether or not law is all about and what the bill does net worth of under $200,000, who suffer any party has violated rule 11 and, if and does not do. This may get a little a loss of at least 10 percent of their net so, to impose sanctions. technical, but I guess a lot of the con- worth, every defendant is jointly and That is a far cry, Mr. President, from versation here has gone into the par- severally liable for paying those dam- the English rule, from what has been ticular aspects of the bill that are the ages—a provision in this bill that I called ‘‘loser pays.’’ most controversial. think ensures that small investors get The bill also establishes what is What we are talking about has to do that extra protection. called a ‘‘safe harbor.’’ This provision with private rights of action for fraud The proportionate liability provi- in some ways offers more protection under section 10(b) of the Securities sions are not the only provisions, how- for investors and less, frankly, for Exchange Act and rule 10b–5 of the Se- ever, that have been the subject of crit- issuers of security than do some of the curities and Exchange Commission. icism. Some argue that S. 240 is flawed leading court decisions in this area Those laws did not expressly provide because of a provision that it does not today. private parties with a right to sue cor- include, and that is the provision that And so what is at issue here with the porations or other parties involved in has to do with an extension of the stat- safe harbor question has to do with the issuance and sale of securities. ute of limitations. what are known as forward-looking However, this area of law has evolved Mr. President, it is true that S. 240 is statements, statements by issuers of out of a long series of judicial deci- silent on the issue of the statute of securities that describe future events sions, not legislative actions. limitations. But this is not to dis- or that estimate the likelihood of se- S. 240 will help reduce frivolous and advantage small investors or any other lected future events occurring. abusive security suits, and it achieves investors. Four years ago, in a case SEC rule 175 states that forward- that objective without encouraging known as the Lampf decision, the Su- looking statements made with a rea- fraud and without undermining the preme Court of the United States de- sonable basis and in good faith cannot rights of investors, and particularly cided that the implied rights of action be used as a basis for a fraud action. small investors, to recover where there for private parties under section 10(b) That is already law. actually is fraud. were subject to the same statute of However, Mr. President, as a prac- Some argue that the bill is somehow limitations that applied more gen- tical matter, the safe harbor that it unbalanced because it limits joint and erally in other areas of the securities provides turned out to be not very safe several liability and because it does law—1 year from the date of discovery at all. What added real protection was not extend the statute of limitations in of the fraud, or 3 years from the date of a third circuit case that recognized private section 10(b) cases. The bill, the fraud. what is called the bespeaks caution however, holds everyone—I emphasize It is worth noting that the court did doctrine, a doctrine that is now recog- that—everyone who commits ‘‘know- not disadvantage section 10(b) cases nized in at least five circuits. Under ing’’ securities fraud jointly and sever- relative to other security cases; it sim- this doctrine, under the bespeaks cau- ally liable. Other defendants may be ply said that the same statute of limi- tion doctrine, forward-looking state- only ‘‘proportionately’’ liable; that is, tations applies, which is hardly a revo- ments accompanied by meaningful cau- they may be only responsible for the lutionary idea. In the 4 years since the tionary statements, that is, statements share of the harm that they cause. Lampf decision was rendered, there has that indicate the risks the forward- That ensures that parties who may be been no substantial evidence presented looking statements will not come true, only 1 percent or 2 percent responsible that investors are being harmed by are as a matter of law immaterial and for the fraud are not added defendants that decision. therefore cannot be used as a basis for in cases simply because they have deep Statutes of limitation, by their very fraud action. pockets. nature, have some degree of arbitrari- Under this bill, however, the be- Proportionate liability is far from a ness to them. In this area, the evidence speaks caution doctrine would not new concept. We have had it in the tort is that the overwhelming number of apply to issuers who made statements area in my own State of Illinois for a cases are being brought within a year with the actual intent of misleading in- number of years. It is an important and of the time the alleged fraud occurs, vestors even if they were accompanied necessary change. Without it, many which tends to indicate that a longer by meaningful cautionary statements.

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Those judges see these matters issues raised by this legislation. How- arily take up questions on the Federal day in and day out. They know what ever, I instead want to make one final Rules of Civil Procedure regarding happens in a very practical sense. They point. which the pending legislation makes a have a much deeper familiarity with A simplistic analysis of this bill says great number of very significant the way they work out than we do in this is a fight between the lawyers and changes. the Congress. the corporations and that the pro- The rules which govern court proce- As the Presiding Officer knows, and ponents of the bill, the people who sup- dure are customarily fashioned by as my colleagues know, frequently in port the bill, are somehow engaged in judges, and they are established by the our hearings in the Senate, only one or lawyer bashing. I cannot speak for Supreme Court of the United States two Senators are present. When mark- every supporter of this bill, but I want- with an advisory committee which con- up occurs it is done as carefully as we ed to make it as clear as I can that as siders the details of these provisions. can, but not with the kind of crafts- a lawyer myself, I care very much They are complicated on matters such manship which judges employ day in about the profession, and my view is as how pleadings are formulated, how and day out. that lawyer bashing has no place in specific you have to be, and what to These are some of the comments this debate. The great bulk of the work say to get in court before you are enti- which Judge Becker has made which I of lawyers in the securities litigation tled to discovery; what rules govern think are worthy of consideration. area has been of enormous benefit to when you take depositions, for exam- They are not dispositive of all of the investors and to the public generally. ple; that is, when questions are asked issues but are illustrative of the kinds The securities plaintiffs bar, frankly, by one side of the parties on the other of complex matters which we think re- has been particularly helpful in helping side. What happens with respect to quire a great deal more consideration small investors, and it has played an sanctions when lawyers do not operate than we have had so far. instrumental role in keeping our cap- in good faith or bring frivolous law- This legislation is enormously impor- ital markets respected worldwide. They suits, or what happens on class rep- tant. It is enormously important as it have provided a necessary check in a resentation. governs the securities field where cap- system that, again, presumes honesty. These are the kinds of questions ital is formed so that the free enter- I would not have agreed to cosponsor which I have had some experience with, prise system can function, so that this bill if I concluded that it would although not recently. But I had expe- when representations are made in the limit their important and legitimate rience when I practiced civil law before prospectuses that sufficient informa- role of the trial bar, of the securities coming to the U.S. Senate. And on the tion is given to investors to know what bar, or if I believed this bill would take Judiciary Committee, having been a is happening, to see to it that the rep- away from investors opportunities to member there for 141⁄2 years, I have had resentations are honest, and that the recover damages from those who, in some continuing familiarity with these millions and millions of people who in- fact, had defrauded them. issues, but nothing compared to the in- vest in securities are protected—and What makes this bill necessary, how- dividuals who are in the courts every not that there is any absolute guar- ever, are the abuses by a relatively day. antee that they will earn dividends or small number of people who have On that subject, I discussed some of make money on capital gains because thrown the system out of balance. S. the issues raised by this bill with a there is a certain amount of risk, but 240 does nothing more than restore longstanding friend of mine going back that there are representations honestly that balance, Mr. President. to college days at the University of made, that they are protected against I want to conclude by congratulating Pennsylvania, Judge Edward R. Beck- fraud, and that the procedures balance again Senator DODD and Senator er, who is now a very distinguished ju- the concerns of the companies, not sub- DOMENICI and the leadership of the rist on the U.S. Court of Appeals for jecting them to frivolous litigation but Banking Committee for all the hard the Third Circuit, and one of the pre- balance the concerns of the investors. work that has been put into this legis- mier Federal judges in the country. Judge Becker has made this com- lation and for the way everyone has Judge Becker was appointed to the ment, for example, on the rule of proce- worked together in a bipartisan fashion Federal Court in 1971. He served for 10 dure which governs the designation of and in good faith to resolve some of the years as a trial judge day in and day lead counsel: out, and for the past 14 years he has complicated issues in this area as they Most of the provisions prescribe things the have arisen. been on the court of appeals and is a courts already do—for example, designating This bill may be a bill that leaves recognized expert on Federal proce- lead counsel—or at least can do within the none of us fully satisfied, everybody is dure, lectures in the field, and is highly exercise of their discretion. Section 102 con- going to have another idea. But the regarded as one of the most knowledge- stitutes congressional micromanagement compromises represented in S. 240 are able of the Federal judges. with the untoward effect of depriving judges good ones. They will be good for our Some of the comments which Judge of the flexibility which is indispensable for capital markets. This bill will be good Becker has made to me in a relatively effective case management. for economy. This bill will be good for brief letter illustrate to some extent One of the bill’s important provisions job creation, and it will be good for the the problems which are present in the relates to sanctions, which are impor- American people, generally, in all their current legislation. tant in litigation to ensure that the roles. I compliment the Senator from Cali- court has the flexibility to manage the On that basis, I support this legisla- fornia, the Senator from Nevada, and case and that lawyers do not abuse the tion and I urge its passage by the Sen- the Senator from Maryland, the rank- process, that is, they do not bring friv- ate. I yield the floor. ing member of the committee, the olous lawsuits, and frivolous lawsuits Mr. SPECTER addressed the Chair. chairman of the committee, and also are brought. We know that as a matter The PRESIDING OFFICER. The Sen- the Senator from New Mexico, Senator of fact. Really no one contests that. Or ator from Pennsylvania. DOMENICI, and the Senator from Con- no one contests the need for limiting Mr. SPECTER. Mr. President, I necticut, Senator DODD, who have frivolous lawsuits. And there is a gen- thank the Chair. drafted this legislation, for the very erally recognized need that we ought to Mr. President, I have sought recogni- constructive work which they have have reform in this field. tion to comment briefly on the pending done. But there are many very, very Some of the provisions of current legislation and to offer a motion on be- important provisions which have not law, for example on joint and several

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00080 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8921 liability, have imposed very extensive Patrick Higginbotham of the Court of sumption that the loser will pay sanc- liability on accountants who do not Appeals for the Fifth Circuit, who is tions and that the appropriate sanction know the inner workings of the rep- chairman of the Judicial Conference of is the other party’s attorneys’ fees. resentations but are held under the the Advisory Committee on Civil This would have a very major, chilling concept of joint liability. There needs Rules. And this is what Judge effect on bringing any litigation. And to be a close look at the kind of liabil- Higginbotham says ought to be done: that presumption can be overcome but ity imposed. In any private action arising under this it starts off on an unequal footing So that when you talk about frivo- title, when an abusive litigation practice is where the same requirement is not im- lous lawsuits and how to deter them, brought to the District Court’s attention by posed on the defense, on the other side we do need to have very substantial re- motion or otherwise, the Court should in the litigation. I am sure that there promptly decide, with written findings of view of that issue. But I have found fact and conclusions of law, whether to im- will be consideration of this sub- that the provision of the bill regarding pose sanctions under rule 11 or rule 26(g)(3) stantive revision in the course of the the rule which requires mandatory of the Federal Rules of Civil Procedure or its analysis of this bill. But this again is sanctions by the court perhaps goes too inherent power. something which really ought to have far, and we do not know that for sure And that is really giving discretion the benefit of a hearing in the Judici- really until we analyze it in some de- to the court. Perhaps on analysis the ary Committee. tail. But this is what Judge Becker had provision in the bill on mandatory Mr. President, I had advised the to say about that: would be retained. But I think it is in- chairman, the Senator from New York Mandatory sanctions are a mistake and dispensable, Mr. President, that that [Mr. D’AMATO], that I would not be in will only generate satellite litigation. kind of careful analysis be made. the position to vote on this matter And by satellite litigation, Judge Other provisions set out in the cur- until others had a chance to come to Becker was referring to the situation rent bill make very substantial the floor, specifically Senator BIDEN. I where, after the case is over, then a changes to the Federal rules. There is a know that there are other Senators on whole new litigation process starts as requirement that the potential out- the floor who wish to speak at this to whether sanctions are really re- come of the suit be disclosed, and there time. And it would be my hope that we quired. are special disclosures relating to set- can move to a vote this evening. I do Under present law, the judge has dis- tlement terms. These provisions have not want to keep Senators here unnec- cretion to award sanctions, and there an impact on rule 23, the class action essarily but I believe that Senators are has to be a motion made by the party rule. The bill also contains certain present with the expectation of having that thinks that the other party has unique provisions governing the ap- a vote on final passage on the highway acted inappropriately. Before a party pointment of lead counsel in class ac- bill where there is still one matter can ask for sanctions, the party must tions, none of which have been given a which is left to be worked out. give notice to the other party of its hearing. But I do want to make that stressed view that something wrong has been I discussed with the chairman of the statement that until Senator BIDEN re- done in order to give the allegedly of- committee, the Senator from New turns we have an opportunity to have York, Senator D’AMATO, the proce- fending party an opportunity to cor- debate on this subject. There are some dures used by the committee, and I rect it. matters I want to discuss with the Sen- think I am accurate in stating—and he That is done in litigation to try to ator, the chairman, the Senator from can comment on this if the truth is to have the parties work it out. If some- New York, who is necessarily absent at the contrary—that this is a provision body does not like what the other this time. added very late, and there had not been party is doing, they say, ‘‘Wait a Before yielding the floor—I shall not hearings. hold the floor very much longer—there minute; you ought to stop that.’’ It There are also changes in the rules gives that party a chance to reflect on will not be more than one final state- relating to discovery under rule 26, and ment that I will make, as I see my col- the reasons. If it does not stop, then there are differences in rules relating the party can make a motion for sanc- league from Utah, rising. I do want to to the specificity of allegations of make a brief comment about the bill tions. But under this legislation, the pleadings, affecting rule 9. judge has the obligation on his own to generally as to information provided to Without going into any great detail, me by the chairman of the Pennsyl- review the record and to impose sanc- these are all matters which really tions. That is contrary to the Amer- vania Securities Commission who has ought to be reviewed by the Judiciary raised very substantial problems with ican system of adversarial litigation Committee, which has the expertise where the judge does not have the re- the bill. I want to call those to the at- under our Senate rules for handling tention of my colleagues. This is a let- sponsibility for making that deter- matters of this sort. It is not the kind mination on his own; one of the parties ter to me from Chairman Robert Lam, of a matter which is customarily dated April 19, 1995, in which Chairman who feels aggrieved says to the court: brought before the Banking Com- Something wrong has been done here, Lam makes this statement. ‘‘I have mittee. considered the major elements of both’’ and I make a motion to have it cor- This same issue was raised by the Senate bill 240, which is the one cur- rected. This is more like the inquisi- Chairman of the Securities and Ex- rently being considered, and Senate torial system which the French have change Commission, Arthur Levitt, in bill 667, which is a different bill intro- where the judge is the moving party. a letter dated May 25, 1995, to Senator duced by Senators SHELBY and BRYAN. Judge Becker has this to say after D’AMATO. Chairman Levitt commented It is the conclusion of Chairman Lam commenting on the satellite litigation. as follows: The flexibility afforded by the current re- of the Pennsylvania Securities Com- I also wish to call your attention to a po- mission that the other bill, the one not gime enables judges to use the threat of tential problem with the provision relating sanctions to manage cases effectively. Well to rule 11 of the Federal Rules of Civil Proce- on the floor, is much preferable. Chair- managed cases almost never result in sanc- dure. I worry that the standard employed in man Lam concludes by saying, Senate tions. The provision for mandatory review— their draft may have the unintended effect of bill ‘‘240, on the other hand, tilts the That is, without prompting by the imposing a loser-pays scheme. The greater balance too far in favor of corporate in- parties— the discretion afforded the court, the less terests and would have the practical ef- likely this unintended consequence may ap- will impose a substantial burden on the fect of depriving many defrauded inves- pear. courts and prove completely useless in the tors the ability to cover their losses.’’ vast majority of cases. Requiring courts to The loser-pays scheme, Mr. Presi- In a letter dated June 20, 1995—I shall impose sanctions without a motion by a dent, is one which Great Britain has include both of these letters for the party also places the judge in an inquisi- where the loser has to pay the costs of record, so I do not have to take much torial rule which is foreign to our legal cul- litigation, and that is a very, very ab- time. Chairman Lam writes as follows, ture, which is based on the judge as a neutral rupt and drastic change in our litiga- As presently constituted, S.240 not only arbiter model. tion procedure. would affect negatively Pennsylvania inves- The judge then refers to a rule draft- The bill currently provides for man- tors but also Pennsylvania taxpayers should ed by a very distinguished judge, Judge datory sanctions and contains a pre- the Commonwealth Treasury Department

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again become a potential victim of wrong- lawsuits, I believe there is an equally com- PENNSYLVANIA doing in securities transactions undertaken pelling need to maintain the ability to deter SECURITIES COMMISSION, on behalf of the Commonwealth. The impor- and detect wrongdoing in the financial mar- COMMONWEALTH OF PENNSYLVANIA, tance of the potential negative effects of this ketplace. June 20, 1995. Bill on the Commonwealth is reflected by Re: amendments to Senate bill 240, ‘‘Private the Treasury Department’s recent suit From my vantage point, there continues to Securities Litigation Reform Act’’ against Salomon Brothers for damages re- be an unacceptably high level of fraud and Hon. ARLEN SPECTER, sulting from alleged wrongful conduct en- abuse in today’s capital markets, particu- U.S. Senate, 530 Hart Senate Office Building, gaged in by Salomon in connection with its larly with respect to small investors. As the Washington, DC. bidding on government bonds. limited resources of government are insuffi- DEAR ARLEN: It is my understanding that And Chairman Lam of the Pennsyl- cient to pursue every case of wrongdoing, the Senate Bill 240 is now before the full U.S. Senate for consideration. vania Securities Commission concludes ability of defrauding investors to maintain a private cause of action to recover their in- The Pennsylvania Securities Commission with this statement. vestment without fear of financial ruin re- is charged under the Pennsylvania Securities As a participant in the capital formation mains critically important to the overall Act of 1972 with the protection of investors. While the Commission has stated its position process, I would like to emphasize that our successful enforcement of the securities in previous correspondence (April 17, 1995) financial markets run most efficiently when laws. there is a high degree of public confidence in that it favors certain securities litigation re- the integrity of the marketplace. Money is It is against this backdrop that I have con- forms (as contained in S.667), it believes that merely the medium of exchange between this sidered the major elements of both S. 240, S.240, as currently constituted, does not confidence and the honest entrepreneur. As the ‘‘Private Securities Litigation Reform achieve the appropriate balance between pro- written, S.240 will not advance the goal of Act,’’ introduced by Senators DOMENICI and tecting investors and discouraging frivolous making capital available to growing U.S. DODD, and S. 667, the ‘‘Private Securities En- lawsuits against honest companies and pro- companies. It will result in small investors forcement Improvements Act,’’ introduced fessionals. Instead, the practical effect of avoiding participation in our capital mar- by Senators SHELBY and BRYAN. It is my con- S.240 would be the elimination of private ac- kets when they discover that they are unable clusion that S. 667 is very much the pref- tions under federal law for Pennsylvanians to bring suit against the perpetrators of erable legislative vehicle for resolving the who found themselves to be a victim of secu- aiders and abettors of a securities fraud or, rities fraud. securities litigation reform debate. S. 667 It is my understanding that amendments upon winning such a suit, fail to be made achieves the critical balance between mak- whole because the Bill adopts the concept of to S.240 will be offered on the Senate floor to ing the litigation system more fair and more ‘‘caps’’ on total defendant liability. strengthen its investor protection provi- efficient, while preserving the critical role sions, i.e. extending the statute of limita- I do ask unanimous consent, Mr. that private actions play in maintaining the tions for civil securities fraud actions (Penn- President, that the full text of these integrity of our financial markets. S. 240, on sylvania recently extended its statute of lim- two letters from Chairman Lam be the other hand, tilts the balance too far in itations period for securities fraud to four made a part of the record at the con- favor of corporate interests and would have years); fully restoring liability for aiding and clusion of my speech. the practical effect of depriving many de- abetting securities fraud; restoring joint and The PRESIDING OFFICER. Without frauded investors the ability to recover their several liability so defrauded investors can objection, it is so ordered. losses. be made whole; and peeling back the immu- (See exhibit 1) nity for companies to make outrageous Among the provisions of S. 667 that I sup- claims of future profits or performance. Mr. SPECTER. In conclusion, Mr. port are: (1) an innovative early evaluation The Commission asks you to support adop- President—the favorite words of any procedure designed to weed out clearly frivo- tion of these amendments. If, however, all speech, and with finality—I will pursue lous cases; (2) a more rational system of de- these vital investor protection amendments this motion as the evening progresses termining liability among defendants; (3) are not adopted, the Commission, on behalf and do believe that it is very important certification of complaints and improved of Pennsylvania investors, strongly urges that the full range of considerations case management procedures; (4) curbs on you to vote against S.240. As presently constituted, S. 240 not only raised by Chairman Lam be considered, potentially abusive attorney practices; (5) improved disclosure of settlement terms; (6) would affect negatively Pennsylvania inves- issues that have otherwise been raised, tors but also Pennsylvania taxpayers should but especially these procedural ques- a reasonable safe harbor for forward looking statements; (7) restoration of aiding and the Commonwealth Treasury Department tions be considered by the Judiciary again become a potential victim of wrong- abetting liability; (8) a reasonable extension Committee which under our rules has doing in securities transactions undertaken of the statute of limitations for securities the jurisdiction to consider them. on behalf of the Commonwealth. The impor- fraud suits; (9) codification of the reckless- tance of the potential negative effects of this MOTION TO COMMIT ness standard of liability as adopted by vir- Bill on the Commonwealth is reflected by Mr. SPECTER. On behalf of Senator tually every U.S. Circuit Court of Appeals; the Treasury Department’s recent suit BIDEN, Senator SHELBY, Senator FEIN- and (10) rulemaking authority to the SEC against Salomon Brothers for damages re- GOLD, and myself, I do move to commit with respect to fraud-on-the-market cases. A sulting from alleged wrongful conduct en- the pending bill, Senate 240, to the detailed comparative analysis between S. 667 gaged in by Salomon in connection with its Committee of the Judiciary. and S. 240 is enclosed. bidding on government bonds. As a participant in the capital formation I thank the Chair and yield the floor. S. 667 proves that it is possible to craft se- process, I would like to emphasize that our curities litigation reform measures that tar- EXHIBIT 1. financial markets run most efficiently when PENNSYLVANIA SECURITIES, COMMISSION, get abusive practices without sacrificing the there is a high degree of public confidence in April 19, 1995. opportunity for recovery by defrauding in- the integrity of the marketplace. Money is Hon. ARLEN SPECTER, vestors. Therefore, I strongly encourage you merely the medium of exchange between this U.S. Senate, Hart Senate Office Building, to become a co-sponsor of S. 667. confidence and the honest entrepreneur. As Washington, DC. Securities litigation reform is one of the written, S. 240 will not advance the goal of RE: Pending Securities Litigation Reform most important issues for small investors making capital available to growing U.S. Bills S. 240 and S. 667 that will be considered by the 104th Con- companies. It will result in small investors DEAR ARLEN: In my capacity as the Chair- gress. It is my hope that the Senate will give avoiding participation in our capital mar- man of the Pennsylvania Securities Commis- serious consideration to S. 667 as the appro- kets when they discover that they are unable sion, I am writing to express my views on the priate response for constructive improve- to bring suit against the perpetrators or two major securities litigation reform bills aiders and abettors of a securities fraud or, ment in the federal securities litigation now before the Senate. The Pennsylvania Se- upon winning such a suit, fail to be made process. If you have any questions about my curities Commission is responsible for inves- whole because of the Bill adopts the concept position on securities litigation reform, tor protection and overseeing the capital for- of ‘‘caps’’ on total defendant liability. mation process in the Commonwealth. please do not hesitate to contact me at (215) Thank you for considering our views. If It is my view that any securities litigation 635–6262 or Deputy Chief Counsel G. Philip you or your staff have any questions con- reform legislation must be carefully bal- Rutledge at (717) 783–5130. I would be pleased cerning how this Bill negatively affects anced so that it provides relief to companies to provide you or your staff with any addi- Pennsylvania and Pennsylvania investors, and professionals who may be the subject of tional information you may require on this please contact G. Philip Rutledge or K. Rob- frivolous lawsuits while preserving a mean- most important issue to individual Pennsyl- ert Bertram of the Commission staff at (717) ingful private remedy for defrauded inves- vania investors. 783–5130. tors. While much of the debate in Wash- Very truly yours, Very truly yours, ington has focused on how to protect honest ROBERT M. LAM, ROBERT M. LAM, companies and professionals from vexatious Chairman Chairman.

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00082 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8923 Mr. BENNETT addressed the Chair. this bill, with which I disagree, but I linois. I thank the Senator from Con- The PRESIDING OFFICER. The Sen- want to make a very brief statement. necticut for not getting up and saying, ator from Utah. I strongly support the position taken ‘‘Why, JOE, did you not do this earlier?″ Mr. BENNETT. Mr. President, the by the Senator from Pennsylvania. I yield the floor. Senator from Illinois has been patient This litigation makes numerous prece- Mr. D’AMATO. Mr. President, I in- and is scheduled to be the next speak- dent-setting changes in the country’s tend to make a motion to table. er. judicial system. While my colleagues Mr. DODD. Mr. President, will my Before we hear from her, I have been in the Banking Committee had a colleague yield? asked to perform a few housekeeping chance to examine the changes the bill Mr. D’AMATO. I am happy to yield. details. Senator HATCH, the chairman would make to our Nation’s security Mr. DODD. Just to say, Mr. Presi- of the Judiciary Committee, has asked laws, it seems to me that we may have dent, this has been about 4 years on me to announce on his behalf that he skipped a very important step. The so- this matter. cannot come here at the moment. I am called Securities Reform Act makes This hour, we are now under consid- sure the Senator from Illinois is de- significant revisions to the Federal eration of the bill—I say this with all lighted that that means she will not be rules of evidence relating to mandatory due respect to my good friends on the delayed further. But he did ask that rule 11 sanctions and rule 26 discovery Judiciary Committee; it has been no the statement be made on his behalf proceedings, and yet, it has not been secret that this legislation has been that as chairman of the Judiciary Com- referred to the Judiciary Committee. pending—at this particular hour to se- mittee he opposes the referral con- I hold myself partially responsible cure sequential referral, in effect, tained within this motion. for that. In truth, I say to my friend would kill the legislation. I ask unanimous consent that at 8:30 from Connecticut, I should have been I think all of our colleagues ought to this evening Senator D’AMATO be rec- hollering for this in my committee be- be aware of that at this juncture. This ognized to make a motion to table the fore this time. I was mildly pre- is our opportunity in a moment to motion to commit the bill. occupied with other things before the move on this. We have had extensive The PRESIDING OFFICER. Is there committee. To tell you the truth, it hearings, heard from lawyers and oth- objection? was called to my attention by my ers on all sides, and worked closely friend from Pennsylvania, and I realize Mr. SPECTER. Reserving the right with them. this is a serious mistake, in my view, to object, there are issues, and I need With all due respect to our colleagues and that we have not had this before to discuss them with the chairman on the Judiciary Committee, I would the Judiciary Committee. which I talked to him about earlier. hope this motion to table would be ap- And also my principal cosponsor, Sen- In the past, bills that have made changes to the Federal rules of evi- proved. ator BIDEN, is not available yet to dence were referred to the Judiciary Mr. D’AMATO. Mr. President, I move make an argument. Committee to enable the committee to table the motion. I ask for the yeas Mr. BENNETT. Mr. President, I with expertise to review the work on and nays. renew the unanimous consent request this legislation. This bills is no dif- The PRESIDING OFFICER. Is there a that at 8:30 this evening Senator ferent. Similarly, limiting joint and sufficient second? D’AMATO be recognized to make a mo- several liability, restricting the stat- There is a sufficient second. tion to table the motion to commit the ute of limitations, changing the rules The yeas and nays were ordered. bill. of class action suits in favor of large The PRESIDING OFFICER. The The PRESIDING OFFICER. Is there investors, are all judiciary-related question is on agreeing to the motion objection? issues. Yet, the Judiciary Committee to table the motion to commit. The Mr. SPECTER. I object. never had a day of hearing on any of clerk will call the roll. The PRESIDING OFFICER. Objec- these specific issues. The legislative clerk called the roll. tion is heard. If the bill becomes law, companies Mr. DOLE. I announce that the Sen- Mr. SARBANES. Mr. President, par- could potentially get away with mak- ator from Texas [Mr. GRAMM], the Sen- liamentary inquiry? What is the par- ing misleading, even fraudulent, state- ator from North Carolina [Mr. HELMS], liamentary situation here? ments about their earnings. Yet, to win the Senator from Idaho [Mr. [KEMP- The PRESIDING OFFICER. There is a class action suit, you would have to THORNE], and the Senator from Mis- a motion to commit the bill to the Ju- prove a falsehood was made with a sissippi [Mr. LOTT] are necessarily ab- diciary Committee pending. clear intent to deceive. That is an in- sent. Mr. SARBANES. Is there further de- credibly tough standard. I will admit Mr. FORD. I announce that the Sen- bate in order? some frivolous lawsuits are filed. Some ator from New Mexico [Mr. BINGAMAN], The PRESIDING OFFICER. There is. lawyers do make too much from a suit, the Senator from New Jersey [Mr. Mr. SARBANES. On the motion or on leaving defrauded investors with little. BRADLEY], the Senator from Arkansas the bill? Either? But I do not believe this massive bill is [Mr. BUMPERS], the Senator from Ha- The PRESIDING OFFICER. The mo- the answer. waii [Mr. INOUYE], the Senator from tion is pending. You can debate either. So in order to protect the small in- Nebraska [Mr. KERRY], the Senator Mr. D’AMATO. At the conclusion of vestors, it seems to me that we should from New Jersey [Mr. LAUTENBERG], Senator BIDEN’s remarks, I ask unani- at least look at the significant changes and the Senator from Arkansas [Mr. mous consent that he yield the floor in the rules of evidence. If this bill PRYOR] are necessarily absent. back to me for the purpose of making passes, I make the prediction to us all The PRESIDING OFFICER. Are there a tabling motion. I would like to sim- here, we will be back in two, three, any other Senators in the Chamber de- ply state that Senator HATCH has indi- four years undoing it, after another Or- siring to vote? cated that he is not in favor of the mo- ange County or another insider trading The result was announced—yeas 69, tion for sequential referral, and that scandal, or after millions of people are nays 19, as follows: this is not a new matter. This matter defrauded with some other scam that [Rollcall Vote No. 281 Leg.] has legislatively been on an agenda occurs. YEAS—69 now for some four years. That is the Quite frankly, I think we would be only comment I will make. Abraham Coverdell Frist wise to take a close look, with a spe- Ashcroft Craig Glenn I will yield the floor. cific time for referral, if need be, to the Baucus D’Amato Gorton Mr. BIDEN addressed the Chair. Judiciary Committee, to look at these Bennett DeWine Grams The PRESIDING OFFICER. The Sen- changes in the rule of ethics. Brown Dodd Grassley ator from Delaware is recognized. Burns Dole Gregg I do not profess to have expertise in Campbell Domenici Harkin Mr. BIDEN. Mr. President, I thank the securities industry, but we do know Chafee Dorgan Hatch the Senator from New York. What I am something about the rules of evidence Coats Exon Hatfield about to say, I say standing next to my and the shifting burden of truth. Cochran Faircloth Hutchison Cohen Feinstein Inhofe good friend from Connecticut, Senator I thank my colleague for his indul- Conrad Ford Jeffords DODD, who has worked tirelessly on gence, and I thank the Senator from Il-

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00083 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8924 CONGRESSIONAL RECORD — SENATE June 22, 1995 Johnston Moseley-Braun Rockefeller The PRESIDING OFFICER. Without rium. It will simply delay the process Kassebaum Moynihan Roth Kerry Murkowski Santorum objection, it is so ordered. as far as the administrative regula- Kohl Murray Simpson ORDER OF PROCEDURE tions that were proposed by the De- Kyl Nickles Smith Mr. DOLE. There will be no more partment of the Interior. Levin Nunn Snowe Mr. MURKOWSKI addressed the Lieberman Packwood Stevens votes tonight. There will be a vote at Lugar Pell Thomas 10:55 tomorrow morning. The first vote Chair. Mack Pressler Thompson will be at 10:55. It will be on the amend- The PRESIDING OFFICER. The Sen- McConnell Reid Thurmond ment by the Senator from Alabama, ator Alaska. Mikulski Robb Warner Mr. MURKOWSKI. I thank the Chair. Senator SHELBY, and Senator BRYAN. Mr. President, I am glad we could NAYS—19 Mr. STEVENS addressed the Chair. come to an agreement on an amend- Akaka Feingold Sarbanes The PRESIDING OFFICER. The Sen- Biden Graham Shelby ator from Alaska. ment to restrict the Department of the Boxer Heflin Simon Interior or any other Federal agency AMENDMENT NO. 1467 Breaux Hollings Specter from taking any action on finalizing a Bryan Kennedy Wellstone Mr. STEVENS. Mr. President, I have rule or regulation with respect to Re- Byrd Leahy an amendment at the desk, and I ask Daschle McCain vised Statute 2477 until December 1, for its immediate consideration. 1995. This will allow some of my col- ANSWERED ’PRESENT’—1 The PRESIDING OFFICER. At the leagues, including my colleague from Bond request of the majority leader, S. 440 is Arkansas, to take a careful look at this now the pending business. NOT VOTING—11 issue. I want to make it clear that we The clerk will report. will be offering legislation in the fu- Bingaman Helms Lautenberg The legislative clerk read as follows: Bradley Inouye Lott ture to resolve this problem for Alaska. Bumpers Kempthorne Pryor The Senator from Alaska [Mr. STEVENS], R.S. 2477 simply states: The right-of- Gramm Kerrey for himself, Mr. MURKOWSKI, Mrs. HUTCHISON, way for the construction of highways So the motion to lay on the table the and Mr. BENNETT, proposes an amendment numbered 1467. over public lands, not reserved for pub- motion to commit was agreed to. lic uses, is hereby granted. The 1866 law Mr. DOMENICI. Mr. President, I At the appropriate place in title I of the bill insert the following new section: was repealed by FLPMA in 1976. But move to reconsider the vote by which SEC. . MORATORIUM. between 1866 and 1976, R.S. 2477 allowed the motion was agreed to. (a) IN GENERAL.—Notwithstanding any the creation of property rights across Mr. FORD. I move to lay that motion other provision of law, no agency of the Fed- Federal lands for rights-of-way. These on the table. eral government may take any action to pre- rights-of-way have provided essential The motion to lay on the table was pare, promulgate, or implement any rule or access through the Western States— agreed to. regulation addressing rights of way author- and especially in Alaska. Recognizing ized pursuant to Revised Statutes 2477 (43 CHANGE OF VOTE this, Congress intentionally protected U.S.C. 932), as such law was in effect prior to the R.S. 2477 rights-of-way in FLPMA. Mr. REID. Mr. President, on rollcall October 21, 1976. vote 281, I was recorded as voting ‘‘no.’’ (b) This section shall cease to have any However, the Department of the Inte- It was my intention to vote ‘‘aye.’’ force or effect after December 1, 1995. rior proposed regulations in August of Therefore, I ask unanimous consent Mr. STEVENS. Mr. President, in re- 1994 to make it much more difficult to that I be permitted to change my vote. sponse to the request, we have agreed establish right-of-way claims across This will in no way change the out- to this amendment which is a morato- Federal lands established under the Re- come of the vote. rium on proceeding with the regula- vised Statutes 2477. DOI claims the reason they are doing This request has been cleared by both tions as proposed by the Department of the regulations is to make a logical the majority and the minority. the Interior that have not been issued process to get R.S. 2477 rights-of-way The PRESIDING OFFICER. Without in final form yet, but we know they are recognized. BUT the regulations would objection, it is so ordered. under consideration. (The foregoing tally has been actually: Let me state that this amendment Override State law with restrictive changed to reflect the above order.) does not affect any judicial action or Mr. STEVENS. Regular order. new definitions of highway and con- decision instituted since 1976, any struction; f pending judicial action or any future Put a cloud on the title to R.S. 2477 judicial action. It is not intended to af- roads, treating them as invalid until NATIONAL HIGHWAY SYSTEM fect any case law with respect to rights DESIGNATION ACT proven valid; of way granted pursuant to Revised Prevent any future expansion of The Senate continued with the con- Statutes 2477. This deals simply with scope of an R.S. 2477 right-of-way, pre- sideration of the bill. the proposal to issue regulations to, in venting making the right-of-way any Mr. DOLE addressed the Chair. effect, determine through sovereign wider, so a dogsled trail will remain a The PRESIDING OFFICER. The ma- power that the rights of the States dog sled trail; jority leader. would be invaded as those States rights Set a sunset on administrative and Mr. DOLE. Mr. President, let me ex- were known under Revised Statutes court action on validity of R.S. 2477 by plain that under our previous agree- 2477, which was repealed in 1976. extinguishing claims not filed within 2 ment, when I call for the regular order, I have offered this on behalf of my years and 30 days after final rule is the highway bill comes back. I under- colleague Senator MURKOWSKI and the issued; stand they have agreed to the Stevens- two Senators from Utah, Senator Although a claimant could still turn Murkowski amendment with Senator HATCH and Senator BENNETT. I do be- to the courts, DOI states that the regu- BUMPERS. That would be adopted. lieve it will achieve the goal of just lations serve as notice to claimants for There would be speeches for the record; having a moratorium on the prepara- purpose of the Quiet Title Act, which very short. Then we would proceed to tion of regulations so that the commit- provides a 12-year statute of limita- final passage of the highway bill. tees involved and the States involved tions—but true to form, DOI did not Mr. CHAFEE. Right, by voice vote. may try to work this out without very put a time limit on themselves to proc- Mr. DOLE. Does anybody request a expensive litigation that would ensue, ess the claims; rollcall on final passage? and in the case of our State it would be Construction and maintenance will I ask unanimous consent that once just a disastrous prospect of litigating not be permitted without approval of the amendment is agreed to, and the some 600 or more separate rights-of- DOI with 3 days notice, preventing the committee substitute, as amended, is way. fixing of washed out roads until DOI agreed to, the bill will be advanced to I am grateful to the Senate for hav- approval. third reading, the bill passed, and the ing delayed the action until this time The draft R.S. 2477 regulations from motion to reconsider be laid on the to enable us to have a proposal go to the Department of the Interior are table, with the above occurring with- the House, which I hope the House will nothing more than an attempt to pre- out any intervening action. agree with, to establish this morato- vent legal access across our public

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00084 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8925 lands. It would impose an impossible the general situation regarding filed claims. Sec. 105. Applicability of transportation task on State and local governments to Few assertions are pending with Federal conformity requirements. make all claims for rights-of-way on land management agency offices overall ex- Sec. 106. Use of recycled paving material. cept for Utah BLM. Sec. 107. Limitation on advance construc- Federal lands and then have to validate tion. each one of the claims. Nowhere would CURRENT R.S. 2477 CLAIMS ON BLM PUBLIC LANDS, Sec. 108. Preventive maintenance. this be more burdensome than in my MARCH 1993 Sec. 109. Eligibility of bond and other debt State which is one-fifth the size of the instrument financing for reim- United States and more than twice the Recog- Pend- bursement as construction ex- States nized ing penses. size of Texas—yet has less roads than claims claims Vermont. Sec. 110. Federal share for highways, There regulations are clearly an ef- Alaska ...... 2 10 bridges, and tunnels. Arizona ...... 173 50 Sec. 111. Applicability of certain require- fort to make sure Alaska and other California ...... 17 36 Colorado ...... 53 8 ments to third party sellers. Western States cannot have access Eastern States ...... 1 10 Sec. 112. Streamlining for transportation en- across Federal lands. This amendment Idaho ...... 55 2 hancement projects. Montana ...... 12 11 Sec. 113. Non-Federal share for certain toll to stop the Department of the Interior Nebraska ...... 2 0 from taking any action to implement Nevada ...... 137 4 bridge projects. the final rules and will provide us time New Mexico ...... 171 0 Sec. 114. Congestion mitigation and air qual- North Dakota ...... 0 0 ity improvement program. to look at the best approach to finally Oklahoma ...... 0 0 Sec. 115. Limitation of national maximum resolving the R.S. 2477 issue. Oregon ...... 450 1 South Dakota ...... 0 0 speed limit to certain commer- I want to thank the Senator from Ar- Utah ...... 10 3,815 cial motor vehicles. kansas for his cooperation on the Ste- Washington ...... 17 0 Wyoming ...... 353 0 Sec. 116. Federal share for bicycle transpor- ven’s R.S. 2477 amendment. As chair- tation facilities and pedestrian man of the Energy and National Re- Total ...... 1,453 3,947 walkways. sources Committee I intend to have Sec. 117. Suspension of management sys- Mr. MURKOWSKI. I also want to as- hearings on this matter soon and will tems. sure my colleagues that such an effort be working on a legislative or adminis- Sec. 118. Intelligent transportation systems. to accommodate us is deeply appre- Sec. 119. Donations of funds, materials, or trative solution. The Senator from Ar- ciated, and I assure them as chairman services for federally assisted kansas has expressed interest in work- of the Energy Committee I will hold activities. ing with me on this issue, and I appre- hearings at the first opportunity on Sec. 120. Metric conversion of traffic control ciate that offer. However, if we work in signs. this matter to address the necessity of good faith, but fail to find a solution Sec. 121. Identification of high priority cor- moving along under the stipulation for by the December date in the Steven’s ridors. R.S. 2477 to the States that were af- amendment, the Senator from Arkan- Sec. 122. Revision of authority for innova- fected, and that we do this in an expe- tive project in Florida. sas has assured me that there will be a ditious manner. And the fact that we Sec. 123. Revision of authority for priority further extension. can have this input prior to the De- intermodal project in Cali- I want to join with the senior Sen- partment of Interior promulgating reg- fornia. ator from Alaska and also thank our Sec. 124. National recreational trails fund- ulations is the interest that we share. colleagues: Senator WARNER, Senator ing program. The PRESIDING OFFICER. Is there BUMPERS, Senator CHAFEE, and Senator Sec. 125. Intermodal facility in New York. further debate on the amendment? BAUCUS, and as a consequence of their Sec. 126. Clarification of eligibility. Mr. WARNER. Mr. President, I know willingness to acknowledge the con- Sec. 127. Bristol, Rhode Island, street mark- of no further debate. I urge its adop- ing. cerns expressed by the Western States, tion. Sec. 128. Public use of rest areas. I would like for the RECORD to submit The PRESIDING OFFICER. The Sec. 129. Collection of tolls to finance cer- a list of States that currently have an question is on agreeing to the amend- tain environmental projects in interest in R.S. 2477. There are 16 ment. Florida. States, and I might add for the RECORD Sec. 130. Hours of service of drivers of So the amendment (No. 1467) was ground water well drilling rigs. that the Eastern States are included agreed to. but they are taken collectively and not Sec. 131. Rural access projects. Mr. STEVENS. Mr. President, I move Sec. 132. Inclusion of high priority corridors. listed by name. So clearly this is a to reconsider the vote. Sec. 133. Sense of the Senate regarding the western issue. Mr. WARNER. I move to lay that mo- Federal-State funding relation- There being no objection, the mate- tion on the table. ship for transportation. rial was ordered to be printed in the The motion to lay on the table was Sec. 134. Quality through competition. RECORD, as follows: agreed to. Sec. 135. Federal share for economic growth USDI DRAFT REPORT TO CONGRESS—R.S. 2477, The PRESIDING OFFICER. Under center development highways. THE HISTORY AND MANAGEMENT OF R.S. 2477 Sec. 136. Vehicle weight and longer com- the previous order, the committee sub- bination vehicles exemption for RIGHTS-OF-WAY CLAIMS ON FEDERAL AND stitute, as amended, is agreed to. The OTHER LANDS, MARCH 1993 Sioux City, Iowa. bill is considered read the third time. Sec. 137. Revision of authority for conges- Existing public land records indicate that The question is, Shall the bill pass? tion relief project in California. approximately 1,453 R.S. 2477 rights-of-way So the bill (S. 440), as amended, was Sec. 138. Applicability of certain vehicle have been recognized to date across BLM weight limitations in Wis- lands. At least two R.S. 2477 highways have passed, as follows: consin. been recognized in National Park Units—the S. 440 Sec. 139. Prohibition on new highway dem- Burr Trail located in both Capitol Reef Na- Be it enacted by the Senate and House of Rep- onstration projects. tional Park and Glen Canyon National resentatives of the United States of America in Sec. 140. Treatment of Centennial Bridge, Recreation Area in Utah and the Glade Park Congress assembled, Rock Island, Illinois, agree- Road in the Colorado National Monument. SECTION 1. SHORT TITLE; TABLE OF CONTENTS. ment. Information regarding other Federal land (a) SHORT TITLE.—This Act may be cited as Sec. 141. Moratorium on certain emissions management agencies was not available for the ‘‘National Highway System Designation testing requirements. this draft report. Few recognized claims are Act of 1995’’. Sec. 142. Elimination of penalties for non- thought to exist across other agency lands. (b) TABLE OF CONTENTS.—The table of con- compliance with motorcycle PENDING CLAIMS tents of this Act is as follows: helmet use requirement. Currently, there are approximately 3,947 Sec. 1. Short title; table of contents. Sec. 143. Clarification of Eligibility. pending claims on file with the BLM nation- TITLE I—HIGHWAY PROVISIONS Sec. 144. Toll roads, bridges, tunnels, non- wide. Utah has the greatest number pending, Sec. 101. National Highway System designa- toll roads that have a dedicated with claims to 3,815 roads. Most other BLM tion. revenue source, and ferries. States have very few claims pending. Some Sec. 102. Eligible projects for the National Sec. 145. Transfer of funds between certain new assertions, that are not reflected on the Highway System. demonstration projects in Lou- table below, have been filed with various Sec. 103. Transferability of apportionments. isiana. Federal agencies since the initiation of this Sec. 104. Design criteria for the National Sec. 146. Northwest Arkansas regional air- study. However, the table below does reflect Highway System. port connector.

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Sec. 147. Intercity rail infrastructure invest- paragraph has been identified by the State, ‘‘(a) IN GENERAL.—The Secretary shall en- ment. in cooperation with local officials, pursuant sure that the plans and specifications for Sec. 148. Operation of motor vehicles by in- to applicable transportation planning activi- each proposed highway project under this toxicated minors. ties for metropolitan areas carried out under chapter provide for a facility that will— Sec. 149. Contingent commitments. section 134 and statewide planning processes ‘‘(1) adequately serve the existing and Sec. 150. Availability of certain funds for carried out under section 135. planned future traffic of the highway in a Boston-to-Portland rail cor- ‘‘(3) APPROVAL BY THE SECRETARY.—The manner that is conducive to safety, dura- ridor. Secretary may approve a request made by a bility, and economy of maintenance; and Sec. 151. Revision of authority of multiyear State for a change in the National Highway ‘‘(2) be designed and constructed in accord- contracts. System pursuant to paragraph (2) if the Sec- ance with criteria best suited to accomplish Sec. 152. Feasibility study of evacuation retary determines that the change— the objectives described in paragraph (1) and routes for Louisiana coastal ‘‘(A) meets the criteria established for the to conform to the particular needs of each areas. National Highway System under this title; locality.’’; Sec. 153. 34th Street corridor project in and (2) by striking subsection (c) and inserting Moorhead, Minnesota. ‘‘(B) enhances the national transportation the following: Sec. 154. Safety belt use law requirements characteristics of the National Highway Sys- ‘‘(c) DESIGN CRITERIA FOR THE NATIONAL for New Hampshire and Maine. tem.’’. HIGHWAY SYSTEM.— Sec. 155. Report on accelerated vehicle re- (b) ROUTE SEGMENTS IN WYOMING.— ‘‘(1) IN GENERAL.—A design for new con- tirement programs. (1) IN GENERAL.—The Secretary of Trans- struction, reconstruction, resurfacing (ex- Sec. 156. Intercity rail infrastructure invest- portation shall cooperate with the State of cept for maintenance resurfacing), restora- ment from Mass Transit Ac- Wyoming in monitoring the changes in tion, or rehabilitation of a highway on the count of Highway Trust Fund. growth along, and traffic patterns of, the National Highway System (other than a Sec. 157. Moratorium. route segments in Wyoming described in highway also on the Interstate System) shall paragraph (2), for the purpose of future con- TITLE II—NATIONAL CAPITAL REGION take into account, in addition to the criteria sideration of the addition of the route seg- INTERSTATE TRANSPORTATION AU- described in subsection (a)— ments to the National Highway System in THORITY ‘‘(A) the constructed and natural environ- accordance with paragraphs (2) and (3) of sec- Sec. 201. Short title. ment of the area; tion 103(c) of title 23, United States Code (as Sec. 202. Findings. ‘‘(B) the environmental, scenic, aesthetic, added by subsection (a)). Sec. 203. Purposes. historic, community, and preservation im- (2) ROUTE SEGMENTS.—The route segments Sec. 204. Definitions. pacts of the activity; and referred to in paragraph (1) are— Sec. 205. Establishment of Authority. ‘‘(C) as appropriate, access for other modes (A) United States Route 191 from Rock Sec. 206. Government of Authority. of transportation. Springs to Hoback Junction; Sec. 207. Ownership of Bridge. ‘‘(2) DEVELOPMENT OF CRITERIA.—The Sec- (B) United States Route 16 from Worland Sec. 208. Capital improvements and con- retary, in cooperation with State highway to Interstate Route 90; and struction. agencies, shall develop criteria to implement (C) Wyoming Route 59 from Douglas to Gil- Sec. 209. Additional powers and responsibil- paragraph (1). In developing the criteria, the lette. ities of Authority. Secretary shall consider the results of the Sec. 210. Funding. SEC. 102. ELIGIBLE PROJECTS FOR THE NA- TIONAL HIGHWAY SYSTEM. committee process of the American Associa- Sec. 211. Availability of prior authoriza- tion of State Highway and Transportation tions. (a) IN GENERAL.—Section 103(i) of title 23, United States Code, is amended— Officials as adopted and published in ‘A Pol- TITLE III—FEDERAL HIGHWAY AND (1) by striking paragraph (8) and inserting icy on Geometric Design of Highways and RAILROAD GRADE CROSSING SAFETY the following: Streets’, after adequate opportunity for Sec. 301. Short title. ‘‘(8) Capital and operating costs for traffic input by interested parties.’’; and Sec. 302. Intelligent vehicle-highway sys- monitoring, management, and control facili- (3) by striking subsection (q) and inserting tems. ties and programs.’’; and the following: Sec. 303. State highway safety management (2) by adding at the end the following: ‘‘(q) ENVIRONMENTAL, SCENIC, AND HISTORIC systems. ‘‘(14) Construction, reconstruction, resur- VALUES.—Notwithstanding subsections (b) Sec. 304. Violation of grade-crossing laws facing, restoration, and rehabilitation of, and (c), the Secretary may approve a project and regulations. and operational improvements for, public for the National Highway System if the Sec. 305. Safety enforcement. highways connecting the National Highway project is designed to— Sec. 306. Crossing elimination; statewide System to— ‘‘(1) allow for the preservation of environ- crossing freeze. ‘‘(A) ports, airports, and rail, truck, and mental, scenic, or historic values; TITLE I—HIGHWAY PROVISIONS other intermodal freight transportation fa- ‘‘(2) ensure safe use of the facility; and cilities; and SEC. 101. NATIONAL HIGHWAY SYSTEM DESIGNA- ‘‘(3) comply with subsection (a).’’. TION. ‘‘(B) public transportation facilities. ‘‘(15) Construction of, and operational im- SEC. 105. APPLICABILITY OF TRANSPORTATION (a) IN GENERAL.—Section 103 of title 23, provements for, the Alameda Transportation CONFORMITY REQUIREMENTS. United States Code, is amended by inserting Corridor along Alameda Street from the en- after subsection (b) the following: (a) HIGHWAY CONSTRUCTION.—Section 109(j) trance to the ports of Los Angeles and Long of title 23, United States Code, is amended by ‘‘(c) NATIONAL HIGHWAY SYSTEM DESIGNA- Beach to Interstate 10, Los Angeles, Cali- striking ‘‘plan for the implementation of any TION.— fornia. The Federal share of the cost of the ambient air quality standard for any air ‘‘(1) DESIGNATION.—The most recent Na- construction and improvements shall be de- tional Highway System (as of the date of en- quality control region designated pursuant termined in accordance with section 120(b).’’. actment of this Act) as submitted by the to the Clean Air Act, as amended.’’ and in- (b) DEFINITION.—Section 101(a) of title 23, Secretary of Transportation pursuant to this serting the following: ‘‘plan for— United States Code, is amended by striking ‘‘(1) the implementation of a national am- section is designated as the National High- the undesignated paragraph defining ‘‘start- way System. bient air quality standard for which an area up costs for traffic management and con- is designated as a nonattainment area under ‘‘(2) MODIFICATIONS.— trol’’ and inserting the following: section 107(d) of the Clean Air Act (42 U.S.C. ‘‘(A) IN GENERAL.—At the request of a ‘‘The term ‘operating costs for traffic mon- 7407(d)); or State, the Secretary may— itoring, management, and control’ includes ‘‘(i) add a new route segment to the Na- ‘‘(2) the maintenance of a national ambient labor costs, administrative costs, costs of air quality standard in an area that was des- tional Highway System, including a new utilities and rent, and other costs associated intermodal connection; or ignated as a nonattainment area but that with the continuous operation of traffic con- was later redesignated by the Administrator ‘‘(ii) delete a route segment in existence on trol activities, such as integrated traffic con- the date of the request and any connection as an attainment area for the standard and trol systems, incident management pro- that is required to develop a maintenance to the route segment; grams, and traffic control centers.’’. if the total mileage of the National Highway plan under section 175A of the Clean Air Act SEC. 103. TRANSFERABILITY OF APPORTION- (42 U.S.C. 7505a).’’. System (including any route segment or con- MENTS. nection proposed to be added under this sub- The third sentence of section 104(g) of title (b) CLEAN AIR ACT REQUIREMENTS.—Section paragraph) does not exceed 165,000 miles 23, United States Code, is amended by strik- 176(c) of the Clean Air Act (42 U.S.C. 7506(c)) (265,542 kilometers). ing ‘‘40 percent’’ and inserting ‘‘60 percent’’. is amended by adding at the end the fol- ‘‘(B) PROCEDURES FOR CHANGES REQUESTED SEC. 104. DESIGN CRITERIA FOR THE NATIONAL lowing: BY STATES.—Each State that makes a re- HIGHWAY SYSTEM. ‘‘(5) APPLICABILITY.—This subsection shall quest for a change in the National Highway Section 109 of title 23, United States Code, apply only with respect to— System pursuant to subparagraph (A) shall is amended— ‘‘(A) a nonattainment area and each spe- establish that each change in a route seg- (1) by striking subsection (a) and inserting cific pollutant for which the area is des- ment or connection referred to in the sub- the following: ignated as a nonattainment area; and

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‘‘(B) an area that was designated as a non- SEC. 108. PREVENTIVE MAINTENANCE. ‘‘(5) LIMITATION ON FEDERAL SHARE.—The attainment area but that was later redesig- Section 116 of title 23, United States Code, Federal share payable for an activity de- nated by the Administrator as an attain- is amended by adding at the end the fol- scribed in paragraph (1) shall be a percentage ment area and that is required to develop a lowing: determined by the State, but not to exceed maintenance plan under section 175A with ‘‘(d) PREVENTIVE MAINTENANCE.—A preven- 80 percent.’’. respect to the specific pollutant for which tive maintenance activity shall be eligible SEC. 111. APPLICABILITY OF CERTAIN REQUIRE- the area was designated nonattainment.’’. for Federal assistance under this title if the MENTS TO THIRD PARTY SELLERS. State demonstrates to the satisfaction of the SEC. 106. USE OF RECYCLED PAVING MATERIAL. Section 133(d) of title 23, United States Secretary that the activity is a cost-effec- (a) IN GENERAL.—Section 1038 of the Inter- Code, is amended by adding at the end the tive means of extending the life of a Federal- modal Surface Transportation Efficiency Act following: aid highway.’’. of 1991 (Public Law 102–240; 23 U.S.C. 109 ‘‘(5) APPLICABILITY OF CERTAIN REQUIRE- note) is amended— SEC. 109. ELIGIBILITY OF BOND AND OTHER MENTS TO THIRD PARTY SELLERS.— DEBT INSTRUMENT FINANCING FOR (1) by striking subsection (d) and inserting ‘‘(A) IN GENERAL.—Except as provided in REIMBURSEMENT AS CONSTRUC- subparagraphs (B) and (C), in the case of a the following: TION EXPENSES. transportation enhancement activity funded ‘‘(d) ASPHALT PAVEMENT CONTAINING RECY- (a) IN GENERAL.—Section 122 of title 23, from the allocation required under para- CLED RUBBER.— United States Code, is amended to read as graph (2), if real property or an interest in ‘‘(1) CRUMB RUBBER MODIFIER RESEARCH.— follows: real property is to be acquired from a quali- Not later than 180 days after the date of en- ‘‘SEC. 122. PAYMENTS TO STATES FOR BOND AND fied organization exclusively for conserva- actment of the National Highway System OTHER DEBT INSTRUMENT FINANC- tion purposes (as determined under section Designation Act of 1995, the Administrator of ING. 170(h) of the Internal Revenue Code of 1986), the Federal Highway Administration shall ‘‘(a) DEFINITION OF ELIGIBLE DEBT FINANC- the organization shall be considered to be develop testing procedures and conduct re- ING INSTRUMENT.—In this section, the term the owner of the property for the purpose of search to develop performance grade classi- ‘eligible debt financing instrument’ means a the Uniform Relocation Assistance and Real fications, in accordance with the strategic bond or other debt financing instrument, in- Property Acquisition Policies Act of 1970 (42 highway research program carried out under cluding a note, certificate, mortgage, or U.S.C. 4601 et seq.). section 307(d) of title 23, United States Code, lease agreement, issued by a State or polit- ‘‘(B) FEDERAL APPROVAL PRIOR TO INVOLVE- for crumb rubber modifier binders. The test- ical subdivision of a State, the proceeds of MENT OF QUALIFIED ORGANIZATION.—If Federal which are used for an eligible Federal-aid ing procedures and performance grade classi- approval of the acquisition of the real prop- project under this title. fications should be developed in consultation erty or interest predates the involvement of ‘‘(b) FEDERAL REIMBURSEMENT.—Subject to with representatives of the crumb rubber a qualified organization described in sub- modifier industry and other interested par- subsections (c) and (d), the Secretary may reimburse a State for expenses and costs in- paragraph (A) in the acquisition of the prop- ties (including the asphalt paving industry) erty, the organization shall be considered to with experience in the development of the curred by the State or a political subdivision of the State, for— be an acquiring agency or person as de- procedures and classifications. scribed in section 24.101(a)(2) of title 49, Code ‘‘(2) CRUMB RUBBER MODIFIER PROGRAM DE- ‘‘(1) interest payments under an eligible debt financing instrument; of Federal Regulations, for the purpose of VELOPMENT.— the Uniform Relocation Assistance and Real ‘‘(A) IN GENERAL.—The Administrator of ‘‘(2) the retirement of principal of an eligi- ble debt financing instrument; Property Acquisition Policies Act of 1970 (42 the Federal Highway Administration shall U.S.C. 4601 et seq.). ‘‘(3) the cost of the issuance of an eligible make grants to States to develop programs ‘‘(C) ACQUISITIONS ON BEHALF OF RECIPIENTS debt financing instrument; to use crumb rubber from scrap tires to mod- OF FEDERAL FUNDS.—If a qualified organiza- ‘‘(4) the cost of insurance for an eligible ify asphalt pavements. Each State may re- tion described in subparagraph (A) has con- debt financing instrument; and ceive not more than $500,000 under this para- tracted with a State highway administration ‘‘(5) any other cost incidental to the sale of graph. or other recipient of Federal funds to acquire an eligible debt financing instrument (as de- ‘‘(B) USE OF GRANT FUNDS.—Grant funds the real property or interest on behalf of the termined by the Secretary). made available to States under this para- recipient, the organization shall be consid- graph may be used— ‘‘(c) CONDITIONS ON PAYMENT.—The Sec- retary may reimburse a State under sub- ered to be an agent of the recipient for the ‘‘(i) to develop mix designs for crumb rub- purpose of the Uniform Relocation Assist- ber modified asphalt pavements; section (b) with respect to a project funded by an eligible debt financing instrument ance and Real Property Acquisition Policies ‘‘(ii) for the placement and evaluation of Act of 1970 (42 U.S.C. 4601 et seq.).’’. crumb rubber modified asphalt pavement after the State has complied with this title to the extent and in the manner that would SEC. 112. STREAMLINING FOR TRANSPORTATION field tests; and be required if payment were to be made ENHANCEMENT PROJECTS. ‘‘(iii) for the expansion of State crumb rub- Section 133(e) of title 23, United States under section 121. ber modifier programs in existence on the ‘‘(d) FEDERAL SHARE.—The Federal share of Code, is amended— date the grant is made available.’’; and the cost of a project payable under this sec- (1) in paragraph (3)— (2) in subsection (e), by striking paragraph tion shall not exceed the pro-rata basis of (A) by striking ‘‘(3) PAYMENTS.—The’’ and (1) and inserting the following: payment authorized in section 120. inserting the following: ‘‘(1) the term ‘asphalt pavement containing ‘‘(e) STATUTORY CONSTRUCTION.—Notwith- ‘‘(3) PAYMENTS.— recycled rubber’ means any mixture of as- standing any other law, the eligibility of an ‘‘(A) IN GENERAL.—Except as provided in phalt and crumb rubber derived from whole eligible debt financing instrument for reim- subparagraph (B), the’’; and scrap tires, such that the physical properties bursement under subsection (a) shall not— (B) by adding at the end the following: of the asphalt are modified through the mix- ‘‘(1) constitute a commitment, guarantee, ‘‘(B) ADVANCE PAYMENT OPTION FOR TRANS- ture, for use in pavement maintenance, reha- or obligation on the part of the United PORTATION ENHANCEMENT ACTIVITIES.— bilitation, or construction applications; States to provide for payment of principal or ‘‘(i) IN GENERAL.—The Secretary may ad- and’’. interest on the eligible debt financing in- vance funds to the State for transportation (b) FUNDING.—Section 307(e)(13) of title 23, strument; or enhancement activities funded from the allo- United States Code, is amended by inserting ‘‘(2) create any right of a third party cation required by subsection (d)(2) for a fis- after the second sentence the following: ‘‘Of against the United States for payment under cal year if the Secretary certifies for the fis- the amounts authorized to be expended the eligible debt financing instrument.’’. cal year that the State has authorized and under this paragraph, $500,000 shall be ex- (b) DEFINITION OF CONSTRUCTION.—The first uses a process for the selection of transpor- pended in fiscal year 1996 to carry out sec- sentence of the undesignated paragraph de- tation enhancement projects that involves tion 1038(d)(1) of the Intermodal Surface fining ‘‘construction’’ of section 101(a) of representatives of affected public entities, Transportation Efficiency Act of 1991 (Public title 23, United States Code, is amended by and private citizens, with expertise related Law 102–240; 23 U.S.C. 109 note) and $10,000,000 inserting ‘‘bond costs and other costs relat- to transportation enhancement activities. shall be expended in each of fiscal years 1996 ing to the issuance of bonds or other debt in- ‘‘(ii) LIMITATION ON AMOUNTS.—Amounts and 1997 to carry out section 1038(d)(2) of the strument financing in accordance with sec- advanced under this subparagraph shall be Act.’’. tion 122,’’ after ‘‘highway, including’’. limited to such amounts as are necessary to SEC. 107. LIMITATION ON ADVANCE CONSTRUC- (c) CONFORMING AMENDMENT.—The analysis make prompt payments for project costs. TION. for chapter 1 of title 23, United States Code, ‘‘(iii) EFFECT ON OTHER REQUIREMENTS.— Section 115(d) of title 23, United States is amended by striking the item relating to This subparagraph shall not exempt a State Code, is amended to read as follows: section 122 and inserting the following: from other requirements of this title relat- ‘‘(d) REQUIREMENT OF INCLUSION IN TRANS- ‘‘122. Payments to States for bond and other ing to the surface transportation program.’’; PORTATION IMPROVEMENT PROGRAM.—The debt instrument financing.’’. and Secretary may not approve an application SEC. 110. FEDERAL SHARE FOR HIGHWAYS, (2) by adding at the end the following: under this section unless the project is in- BRIDGES, AND TUNNELS. ‘‘(5) TRANSPORTATION ENHANCEMENT ACTIVI- cluded in the transportation improvement Section 129(a) of title 23, United States TIES.— program of the State developed under sec- Code, is amended by striking paragraph (5) ‘‘(A) CATEGORICAL EXCLUSIONS.—To the ex- tion 135(f).’’. and inserting the following: tent appropriate, the Secretary shall develop

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categorical exclusions from the requirement (c) EFFECT OF LIMITATION ON APPORTION- SEC. 116. FEDERAL SHARE FOR BICYCLE TRANS- that an environmental assessment or an en- MENT.—Notwithstanding any other law, for PORTATION FACILITIES AND PEDES- vironmental impact statement under section each of fiscal years 1996 and 1997, any limita- TRIAN WALKWAYS. 102 of the National Environmental Policy tion under this section or an amendment Section 217(f) of title 23, United States Act of 1969 (42 U.S.C. 4332) be prepared for made by this section on an apportionment Code, is amended by striking ‘‘80 percent’’ transportation enhancement activities fund- otherwise authorized under section 1003(a)(4) and inserting ‘‘determined in accordance ed from the allocation required by sub- of the Intermodal Surface Transportation Ef- with section 120(b)’’. section (d)(2). ficiency Act of 1991 (Public Law 102–240; 105 SEC. 117. SUSPENSION OF MANAGEMENT SYS- ‘‘(B) NATIONWIDE PROGRAMMATIC AGREE- Stat. 1919) shall not affect any hold harmless TEMS. MENT.—The Administrator of the Federal apportionment adjustment under section Section 303 of title 23, United States Code, Highway Administration, in consultation 1015(a) of the Act (Public Law 102–240; 105 is amended— with the National Conference of State His- Stat. 1943). (1) by striking subsection (c) and inserting toric Preservation Officers and the Advisory the following: (d) TRAFFIC MONITORING, MANAGEMENT, AND Council on Historic Preservation established ‘‘(c) STATE ELECTION.—A State may, at the CONTROL FACILITIES AND PROGRAMS.—The under title II of the National Historic Pres- option of the State, elect, at any time, not first sentence of section 149(b) of title 23, to implement, in whole or in part, 1 or more ervation Act (16 U.S.C. 470i et seq.), shall de- United States Code, is amended— velop a nationwide programmatic agreement of the management systems required under (1) in paragraph (2), by striking ‘‘or’’ at the this section. The Secretary may not impose governing the review of transportation en- end; hancement activities funded from the alloca- any sanction on, or withhold any benefit (2) in paragraph (3), by striking the period from, a State on the basis of such an elec- tion required by subsection (d)(2), in accord- at the end and inserting ‘‘; or’’; and ance with— tion.’’; and (3) by adding at the end the following: (2) in subsection (f)— ‘‘(i) section 106 of the National Historic ‘‘(4) to establish or operate a traffic moni- Preservation Act (16 U.S.C. 470f); and (A) by striking ‘‘(f) ANNUAL REPORT.—Not’’ toring, management, and control facility or and inserting the following: ‘‘(ii) the regulations of the Advisory Coun- program if the Secretary, after consultation cil on Historic Preservation.’’. ‘‘(f) REPORTS.— with the Administrator of the Environ- ‘‘(1) ANNUAL REPORTS.—Not’’; and SEC. 113. NON-FEDERAL SHARE FOR CERTAIN mental Protection Agency, determines that (B) by adding at the end the following: TOLL BRIDGE PROJECTS. the facility or program is likely to con- Section 144(l) of title 23, United States ‘‘(2) REPORT ON IMPLEMENTATION.—Not tribute to the attainment of a national am- Code, is amended by adding at the end the later than October 1, 1996, the Secretary, in bient air quality standard.’’. following: ‘‘Any non-Federal funds expended consultation with States, shall transmit to for the seismic retrofit of the bridge may be SEC. 115. LIMITATION OF NATIONAL MAXIMUM Congress a report on the management sys- credited toward the non-Federal share re- SPEED LIMIT TO CERTAIN COMMER- tems required under this section that makes quired as a condition of receipt of any Fed- CIAL MOTOR VEHICLES. recommendations as to whether, to what ex- eral funds for seismic retrofit of the bridge (a) IN GENERAL.—Section 154 of title 23, tent, and how the management systems made available after the date of the expendi- United States Code, is amended— should be implemented.’’. ture.’’. (1) by striking the section heading and in- SEC. 118. INTELLIGENT TRANSPORTATION SYS- SEC. 114. CONGESTION MITIGATION AND AIR serting the following: TEMS. QUALITY IMPROVEMENT PROGRAM. (a) IMPROVED COLLABORATION IN INTEL- (a) AREAS ELIGIBLE FOR FUNDS.— ‘‘§ 154. National maximum speed limit for cer- LIGENT TRANSPORTATION SYSTEMS RESEARCH (1) IN GENERAL.—The first sentence of sec- tain commercial motor vehicles’’; AND DEVELOPMENT.—Section 6054 of the tion 149(b) of title 23, United States Code, is (2) in subsection (a)— Intermodal Surface Transportation Effi- amended— (A) by inserting ‘‘, with respect to motor ciency Act of 1991 (Public Law 102–240; 23 (A) by inserting ‘‘for areas in the State vehicles’’ before ‘‘(1)’’; and U.S.C. 307 note) is amended by adding at the that were designated as nonattainment areas (B) in paragraph (4), by striking ‘‘motor ve- end the following: under section 107(d) of the Clean Air Act (42 hicles using it’’ and inserting ‘‘vehicles driv- ‘‘(e) COLLABORATIVE RESEARCH AND DEVEL- U.S.C. 7407(d))’’ after ‘‘may obligate funds’’; en or drawn by mechanical power manufac- OPMENT.—In carrying out this part, the Sec- and tured primarily for use on public highways retary may carry out collaborative research (B) in paragraph (1)(A)— (except any vehicle operated exclusively on a and development in accordance with section (i) by striking ‘‘contribute to the’’ and in- rail or rails) using it’’; 307(a)(2) of title 23, United States Code.’’. serting the following: ‘‘contribute to— (3) by striking subsection (b) and inserting (b) TIME LIMIT FOR OBLIGATION OF FUNDS ‘‘(i) the’’; and the following: FOR INTELLIGENT TRANSPORTATION SYSTEMS (ii) by adding at the end the following: ‘‘(b) MOTOR VEHICLE.—In this section, the PROJECTS.—Section 6058 of the Intermodal ‘‘(ii) the maintenance of a national ambi- term ‘motor vehicle’ has the meaning pro- Surface Transportation Efficiency Act of ent air quality standard in an area that was vided for ‘commercial motor vehicle’ in sec- 1991 (Public Law 102–240; 23 U.S.C. 307 note) is designated as a nonattainment area but that tion 31301(4) of title 49, United States Code, amended by adding at the end the following: was later redesignated by the Administrator except that the term does not include any ‘‘(f) OBLIGATION OF FUNDS.— of the Environmental Protection Agency as vehicle operated exclusively on a rail or ‘‘(1) IN GENERAL.—Funds made available an attainment area under section 107(d) of rails.’’; pursuant to subsections (a) and (b) after the the Clean Air Act (42 U.S.C. 7407(d)); or’’. (4) in the first sentence of subsection (e), date of enactment of this subsection, and (2) APPORTIONMENT.—Section 104(b)(2) of by striking ‘‘all vehicles’’ and inserting ‘‘all other funds made available after that date to title 23, United States Code, is amended— motor vehicles’’; and carry out specific intelligent transportation (A) in the second sentence, by striking ‘‘is (5) by redesignating subsection (i) as sub- systems projects, shall be obligated not later a nonattainment area (as defined in the section (f). than the last day of the fiscal year following the fiscal year with respect to which the Clean Air Act) for ozone’’ and inserting ‘‘was (b) CONFORMING AMENDMENTS.— funds are made available. a nonattainment area (as defined in section (1) The analysis for chapter 1 of title 23, ‘‘(2) REALLOCATION OF FUNDS.—If funds de- 171(2) of the Clean Air Act (42 U.S.C. 7501(2))) United States Code, is amended by striking scribed in paragraph (1) are not obligated by for ozone during any part of fiscal year 1994’’; the item relating to section 154 and inserting the date described in the paragraph, the Sec- and the following: (B) in the third sentence— retary may make the funds available to (i) by striking ‘‘is also’’ and inserting ‘‘was ‘‘154. National maximum speed limit for carry out any other activity with respect to also’’; and certain commercial motor which funds may be made available under (ii) by inserting ‘‘during any part of fiscal vehicles.’’. subsection (a) or (b).’’. year 1994’’ after ‘‘monoxide’’. (2) Section 153(i)(2) of title 23, United (c) CONFORMING AMENDMENTS.— (3) ORANGE STREET BRIDGE, MISSOULA, MON- States Code, is amended to read as follows: (1) The table in section 1107(b) of the Inter- TANA.—Notwithstanding section 149 of title ‘‘(2) MOTOR VEHICLE.—The term ‘motor ve- modal Surface Transportation Efficiency Act 23, United States Code, or any other law, a hicle’ means any vehicle driven or drawn by of 1991 (Public Law 102–240; 105 Stat. 2048) is project to construct new capacity for the Or- mechanical power manufactured primarily amended— ange Street Bridge in Missoula, Montana, for use on public highways, except any vehi- (A) in item 10, by striking ‘‘(IVHS)’’ and shall be eligible for funding under the con- cle operated exclusively on a rail or rails.’’. inserting ‘‘(ITS)’’; and gestion mitigation and air quality improve- (3) Section 157(d) of title 23, United States (B) in item 29, by striking ‘‘intelligent/ve- ment program established under the section. Code, is amended by striking ‘‘154(f) or’’. hicle highway systems’’ and inserting ‘‘intel- (b) REMOVAL OF CERTAIN FUNDING LIMITA- (4) Section 410(i)(3) of title 23, United ligent transportation systems’’. TIONS.—Section 149(b)(1)(A) of title 23, United States Code, is amended to read as follows: (2) Section 6009(a)(6) of the Intermodal Sur- States Code, is amended by striking ‘‘(other ‘‘(3) MOTOR VEHICLE.—The term ‘motor ve- face Transportation Efficiency Act of 1991 than clauses (xii) and (xvi) of such section), hicle’ means any vehicle driven or drawn by (Public Law 102–240; 105 Stat. 2176) is amend- that the project or program’’ and inserting mechanical power manufactured primarily ed by striking ‘‘intelligent vehicle highway ‘‘, that the publicly sponsored project or pro- for use on public highways, except any vehi- systems’’ and inserting ‘‘intelligent trans- gram’’. cle operated exclusively on a rail or rails.’’. portation systems’’.

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00088 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8929 (3) Part B of title VI of the Intermodal (1) erect any highway sign that establishes ‘‘(dd) United States Route 311 to United Surface Transportation Efficiency Act of any speed limit, distance, or other measure- States Route 220 in the vicinity of 1991 (Public Law 102–240; 23 U.S.C. 307 note) is ment using the metric system; or Randleman, North Carolina. amended— (2) modify any highway sign that estab- ‘‘(ee) United States Route 220 to United (A) by striking the part heading and in- lishes any speed limit, distance, or other States Route 74 near Rockingham; serting the following: measurement so that the sign uses the met- ‘‘(ff) United States Route 74 to United ‘‘PART B—INTELLIGENT ric system. States Route 76 near Whiteville; TRANSPORTATION SYSTEMS’’; (b) Upon receipt of a written notification ‘‘(gg) United States Route 74/76 to the (B) in section 6051, by striking ‘‘Intelligent by a State, referring to its right to provide South Carolina State line in Brunswick Vehicle-Highway Systems’’ and inserting notification under this subsection, the Sec- County; and ‘‘Intelligent Transportation Systems’’; retary of Transportation shall waive, with ‘‘(hh) South Carolina State line to Charles- (C) by striking ‘‘intelligent vehicle-high- respect to such State, any requirement that ton, South Carolina. way systems’’ each place it appears and in- such State use or plan to use the metric sys- ‘‘(iv) Each route segment referred to in serting ‘‘intelligent transportation sys- tem with respect to designing, preparing clause (i), (ii), or (iii) that is not a part of the tems’’; plans, specifications and estimates, adver- Interstate System shall be designated as a (D) in section 6054— tising, or taking any other action with re- route included in the Interstate System, at (i) in subsection (a)(2)(A), by striking ‘‘in- spect to Federal-aid highway projects or ac- such time as the Secretary determines that telligent vehicle-highway’’ and inserting tivities utilizing funds authorized pursuant the route segment— ‘‘intelligent transportation systems’’; and to title 23, United States Code. Such waiver ‘‘(I) meets Interstate System design stand- (ii) in the subsection heading of subsection shall remain effective for the State until the ards approved by the Secretary under section State notifies the Secretary to the contrary: 109(b) of title 23, United States Code; and (b), by striking ‘‘INTELLIGENT VEHICLE-HIGH- Provided, That a waiver granted by the Sec- ‘‘(II) meets the criteria for designation WAY SYSTEMS’’ and inserting ‘‘INTELLIGENT retary will be in effect until September 30, pursuant to section 139 of title 23, United TRANSPORTATION SYSTEMS’’; (E) in the subsection heading of section 2000. States Code, except that the determination 6056(a), by striking ‘‘IVHS’’ and inserting SEC. 121. IDENTIFICATION OF HIGH PRIORITY shall be made without regard to whether the ‘‘ITS’’; CORRIDORS. route segment is a logical addition or con- (F) in the subsection heading of each of Section 1105(c) of the Intermodal Surface nection to the Interstate System.’’; subsections (a) and (b) of section 6058, by Transportation Efficiency Act of 1991 (Pub. (2) in paragraph (18)— striking ‘‘IVHS’’ and inserting ‘‘ITS’’; and L. 102–240; 105 Stat. 2032) is amended— (A) by striking ‘‘and’’; and (G) in the paragraph heading of section (1) by striking paragraph (5) and inserting (B) by inserting before the period at the 6059(1), by striking ‘‘IVHS’’ and inserting the following: end the following: ‘‘, and to the Lower Rio ‘‘ITS’’. ‘‘(5)(A) I–73/74 North-South Corridor from Grande Valley at the border between the (4) Section 310(c)(3) of the Department of Charleston, South Carolina, through Win- United States and Mexico’’; and Transportation and Related Agencies Appro- ston-Salem, North Carolina, to Portsmouth, (3) by adding at the end the following: priations Act, 1995 (Public Law 103–331; 23 Ohio, to Cincinnati, Ohio, to termini at De- ‘‘(22) The Alameda Transportation Corridor U.S.C. 104 note), is amended by striking ‘‘in- troit, Michigan and Sault Ste. Marie, Michi- along Alameda Street from the entrance to telligent vehicle highway systems’’ and in- gan. the ports of Los Angeles and Long Beach to serting ‘‘intelligent transportation sys- ‘‘(B)(i) In the Commonwealth of Virginia, Interstate 10, Los Angeles, California. tems’’. the Corridor shall generally follow— ‘‘(23) The Interstate Route 35 Corridor from (5) Section 109(a) of the Hazardous Mate- ‘‘(I) United States Route 220 from the Vir- Laredo, Texas, through Oklahoma City, rials Transportation Authorization Act of ginia-North Carolina border to I–581 south of Oklahoma, to Wichita, Kansas, to Kansas 1994 (Public Law 103–311; 23 U.S.C. 307 note) is Roanoke; City, Kansas/Missouri, to Des Moines, Iowa, amended— ‘‘(II) I–581 to I–81 in the vicinity of Roa- to Minneapolis, Minnesota, to Duluth, Min- (A) by striking ‘‘Intelligent Vehicle-High- noke; nesota. way Systems’’ each place it appears and in- ‘‘(III) I–81 to the proposed highway to dem- ‘‘(24) The Dalton Highway from Deadhorse, serting ‘‘Intelligent Transportation Sys- onstrate intelligent transportation systems Alaska to Fairbanks, Alaska. tems’’; and authorized by item 29 of the table in section ‘‘(25) State Route 168 (South Battlefield (B) by striking ‘‘intelligent vehicle-high- 1107(b) in the vicinity of Christiansburg to Boulevard), Virginia, from the Great Bridge way system’’ and inserting ‘‘intelligent United States Route 460 in the vicinity of Bypass to the North Carolina State line.’’. transportation system’’. Blacksburg; and SEC. 122. REVISION OF AUTHORITY FOR INNOVA- TIVE PROJECT IN FLORIDA. (6) Section 5316(d) of title 49, United States ‘‘(IV) United States Route 460 to the West Item 196 of the table in section 1107(b) of Code, is amended— Virginia State line. the Intermodal Surface Transportation Effi- (A) in the subsection heading, by striking ‘‘(ii) In the States of West Virginia, Ken- tucky, and Ohio, the Corridor shall generally ciency Act of 1991 (Public Law 102–240; 105 ‘‘INTELLIGENT VEHICLE-HIGHWAY’’ and insert- Stat. 2058) is amended— ing ‘‘INTELLIGENT TRANSPORTATION’’; and follow— ‘‘(I) United States Route 460 from the West (1) by striking ‘‘Orlando,’’; and (B) by striking ‘‘intelligent vehicle-high- (2) by striking ‘‘Land & right-of-way acqui- way’’ each place it appears and inserting ‘‘in- Virginia State line to United States Route 52 at Bluefield, West Virginia; and sition & guideway construction for magnetic telligent transportation’’. limitation project’’ and inserting ‘‘1 or more SEC. 119. DONATIONS OF FUNDS, MATERIALS, OR ‘‘(II) United States Route 52 to United States Route 23 at Portsmouth, Ohio. regionally significant, intercity ground SERVICES FOR FEDERALLY AS- transportation projects’’. SISTED ACTIVITIES. ‘‘(iii) In the States of North Carolina and Section 323 of title 23, United States Code, South Carolina, the Corridor shall generally SEC. 123. REVISION OF AUTHORITY FOR PRI- follow— ORITY INTERMODAL PROJECT IN is amended— CALIFORNIA. (1) by redesignating subsection (c) as sub- ‘‘(I) in the case of I–73— Item 31 of the table in section 1108(b) of the section (d); and ‘‘(aa) United States Route 220 from the Intermodal Surface Transportation Effi- (2) by inserting after subsection (b) the fol- Virginia State line to State Route 68 in the ciency Act of 1991 (Public Law 102–240; 105 lowing: vicinity of Greensboro; Stat. 2062) is amended by striking ‘‘To im- ‘‘(c) CREDIT FOR DONATIONS OF FUNDS, MA- ‘‘(bb) State Route 68 to I–40; prove ground access from Sepulveda Blvd. to TERIALS, OR SERVICES.—Nothing in this title ‘‘(cc) I–40 to United States Route 220 in Los Angeles, California’’ and inserting the or any other law shall prevent a person from Greensboro; following: ‘‘For the Los Angeles Inter- offering to donate funds, materials, or serv- ‘‘(dd) United States Route 220 to United national Airport central terminal ramp ac- ices in connection with an activity eligible States Route 1 near Rockingham; cess project, $3,500,000; for the widening of for Federal assistance under this title. In the ‘‘(ee) United States Route 1 to the South Aviation Boulevard south of Imperial High- case of such an activity with respect to Carolina State line; and way, $3,500,000; for the widening of Aviation which the Federal Government and the State ‘‘(ff) South Carolina State line to Charles- Boulevard north of Imperial Highway, share in paying the cost, any donated funds, ton, South Carolina; and $1,000,000; and for transportation systems or the fair market value of any donated ma- ‘‘(II) in the case of I–74— management improvements in the vicinity terials or services, that are accepted and in- ‘‘(aa) I–77 from Bluefield, West Virginia, to of the Sepulveda Boulevard/Los Angeles corporated into the activity by the State the junction of I–77 and the United States International Airport tunnel, $950,000’’. highway agency shall be credited against the Route 52 connector in Surry County, North SEC. 124. NATIONAL RECREATIONAL TRAILS State share.’’. Carolina; FUNDING PROGRAM. SEC. 120. METRIC CONVERSION OF TRAFFIC CON- ‘‘(bb) the I–77/United States Route 52 con- (a) CONTRACT AUTHORITY.—Section 1302 of TROL SIGNS. nector to United States Route 52 south of the Intermodal Surface Transportation Effi- (a) Notwithstanding section 3(2) of the Mount Airy, North Carolina; ciency Act of 1991 (16 U.S.C. 1261) is amend- Metric Conversion Act of 1975 (15 U.S.C. ‘‘(cc) United States Route 52 to United ed— 205b(2)) or any other law, no State shall be States Route 311 in Winston-Salem, North (1) by redesignating subsection (g) as sub- required to— Carolina; section (i); and

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00089 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8930 CONGRESSIONAL RECORD — SENATE June 22, 1995 (2) by inserting after subsection (f) the fol- sections 103(e)(4), 104(b), and 144 of title 23, (1) by striking ‘‘Parker County’’ and in- lowing: United States Code. serting ‘‘Parker and Tarrant Counties’’; and ‘‘(g) CONTRACT AUTHORITY.—Funds author- SEC. 127. BRISTOL, RHODE ISLAND, STREET (2) by striking ‘‘to four-lane’’ and inserting ized to be appropriated under this section MARKING. ‘‘in Tarrant County to freeway standards and shall be available for obligation in the man- Notwithstanding any other law, a red, in Parker County to a 4-lane’’. ner as if the funds were apportioned under white, and blue center line in the Main SEC. 132. INCLUSION OF HIGH PRIORITY COR- title 23, United States Code, except that the Street of Bristol, Rhode Island, shall be RIDORS. deemed to comply with the requirements of Federal share of any project under this sec- Section 1105(d) of the Intermodal Surface section 3B–1 of the Manual on Uniform Traf- tion shall be determined in accordance with Transportation Efficiency Act of 1991 (Pub. fic Control Devices of the Department of this section. L. 102–240; 105 Stat. 2033) is amended by add- Transportation. ‘‘(h) FEDERAL SHARE.—The Federal share of ing at the end the following: ‘‘The Secretary the cost of a project under this section shall SEC. 128. PUBLIC USE OF REST AREAS. of Transportation shall include High Pri- Notwithstanding section 111 of title 23, be 50 percent.’’. ority Corridor 18 as identified in section (b) TECHNICAL AND CONFORMING AMEND- United States Code, or any project agree- 1105(c) of this Act, as amended, on the ap- MENTS.— ment under the section, the Secretary of proved National Highway System after com- (1) IN GENERAL.—Section 1302 of the Inter- Transportation shall permit the conversion pletion of the feasibility study by the States modal Surface Transportation Efficiency Act of any safety rest area adjacent to Interstate as provided by such Act.’’. of 1991 (16 U.S.C. 1261) is amended— Route 95 within the State of Rhode Island (A) by striking subsection (c) and inserting that was closed as of May 1, 1995, to use as a SEC. 133. SENSE OF THE SENATE REGARDING the following: motor vehicle emissions testing facility. At THE FEDERAL–STATE FUNDING RE- LATIONSHIP FOR TRANSPORTATION. ‘‘(c) STATE ELIGIBILITY.—A State shall be the option of the State, vehicles shall be per- eligible to receive moneys under this part mitted to gain access to and from any such (a) FINDINGS.— if— testing facility directly from Interstate (1) The designation of high priority roads ‘‘(1) the Governor of the State has des- Route 95. through the National Highway System is re- ignated the State agency responsible for ad- SEC. 129. COLLECTION OF TOLLS TO FINANCE quired by the Intermodal Surface Transpor- ministering allocations under this section; CERTAIN ENVIRONMENTAL tation Efficiency Act (ISTEA) and will en- ‘‘(2) the State proposes to obligate and ul- PROJECTS IN FLORIDA. sure the continuation of funding which timately obligates any allocations received Notwithstanding section 129(a) of title 23, would otherwise be withheld from the in accordance with subsection (e); and United States Code, on request of the Gov- States. ‘‘(3) a recreational trail advisory board on ernor of the State of Florida, the Secretary (2) The Budget Resolution supported the which both motorized and nonmotorized rec- of Transportation shall modify the agree- re-evaluation of all Federal programs to de- reational trail users are represented exists in ment entered into with the transportation termine which programs are more appro- the State.’’; department of the State and described in sec- priately a responsibility of the States. (B) in subsection (d), by striking paragraph tion 129(a)(3) of the title to permit the col- (3) Debate on the appropriate role of the (3); lection of tolls to liquidate such indebted- Federal Government in transportation will (C) in subsection (e)— ness as may be incurred to finance any cost occur in the re-authorization of ISTEA. (i) in paragraphs (3)(A), (5)(B), and (8)(B), associated with a feature of an environ- (b) SENSE OF SENATE.—Therefore, it is the by striking ‘‘(c)(2)(A) of this section’’ and in- mental project that is carried out under sense of the Senate that the designation of serting ‘‘(c)(3)’’; and State law and approved by the Secretary of the NHS does not assume the continuation (ii) in paragraph (5)(A)(i), by striking the Interior. or the elimination of the current Federal- ‘‘(g)(5)’’ and inserting ‘‘(i)(5)’’; and SEC. 130. HOURS OF SERVICE OF DRIVERS OF State relationship nor preclude a re-evalua- (D) in subsection (i) (as redesignated by GROUND WATER WELL DRILLING tion of the Federal-State relationship in RIGS. subsection (a)(1)), by striking paragraph (1) transportation. (a) DEFINITIONS.—In this section: and inserting the following: SEC. 134. QUALITY THROUGH COMPETITION. (1) 8 CONSECUTIVE DAYS.—The term ‘‘8 con- ‘‘(1) ELIGIBLE STATE.—The term ‘eligible secutive days’’ means the period of 8 con- (a) CONTRACTING FOR ENGINEERING AND DE- State’ means a State (as defined in section secutive days beginning on any day at the SIGN SERVICES.—Section 112(b)(2) of title 23, 101 of title 23, United States Code) that time designated by the motor carrier for a United States Code, is amended by adding at meets the requirements of subsection (c).’’. 24-hour period. the end the following new subparagraphs: (2) Section 104 of title 23, United States (2) 24-HOUR PERIOD.—The term ‘‘24-hour pe- ‘‘(C) PERFORMANCE AND AUDITS.—Any con- Code, is amended— riod’’ means any 24-consecutive-hour period tract or subcontract awarded in accordance (A) by redesignating subsection (h) as sub- beginning at the time designated by the with subparagraph (A), whether funded in section (i); and motor carrier for the terminal from which whole or in part with Federal-aid highway (B) by inserting after subsection (g) the the driver is normally dispatched. funds, shall be performed and audited in following: (3) GROUND WATER WELL DRILLING RIG.—The compliance with cost principles contained in ‘‘(h) NATIONAL RECREATIONAL TRAILS FUND- term ‘‘ground water well drilling rig’’ means the Federal acquisition regulations of part 31 ING.—The Secretary shall expend, from ad- any vehicle, machine, tractor, trailer, semi- of title 48 of the Code of Federal Regulations. ministrative funds deducted under sub- trailer, or specialized mobile equipment pro- ‘‘(D) INDIRECT COST RATES.—In lieu of per- section (a), to carry out section 1302 of the pelled or drawn by mechanical power and forming its own audits, a recipient of funds Intermodal Surface Transportation Effi- used on highways to transport water well under a contract or subcontract awarded in ciency Act of 1991 (16 U.S.C. 1261) $15,000,000 field operating equipment, including water accordance with subparagraph (A) shall ac- for each of fiscal years 1996 and 1997.’’. well drilling and pump service rigs equipped cept indirect cost rates established in ac- SEC. 125. INTERMODAL FACILITY IN NEW YORK. to access ground water. cordance with the Federal acquisition regu- (a) IN GENERAL.—The Secretary of Trans- (b) GENERAL RULE.—In the case of a driver lations for 1-year applicable accounting peri- portation shall make grants to the National of a commercial motor vehicle subject to ods by a cognizant Federal or State govern- Railroad Passenger Corporation for— regulations prescribed by the Secretary of ment agency, if such rates are not currently (1) engineering, design, and construction Transportation under sections 31136 and 31502 under dispute. Once a firm’s indirect cost activities to permit the James A. Farley of title 49, United States Code, who is used rates are accepted, the recipient of such Post Office in New York, New York, to be primarily in the transportation and oper- funds shall apply such rates for the purposes used as an intermodal transportation facility ation of a ground water well drilling rig, for of contract estimation, negotiation, admin- and commercial center; and the purpose of the regulations, any period of istration, reporting, and contract payment (2) necessary improvements to and redevel- 8 consecutive days may end with the begin- and shall not be limited by administrative or opment of Pennsylvania Station and associ- ning of an off-duty period of 24 or more con- de facto ceilings of any kind. A recipient of ated service buildings in New York, New secutive hours. such funds requesting or using the cost and York. (c) REPORT.—The Secretary of Transpor- rate data described in this subparagraph (b) AUTHORIZATION OF APPROPRIATIONS.— tation shall monitor the commercial motor shall notify any affected firm before such re- There are authorized to be appropriated to vehicle safety performance of drivers of quest or use. Such data shall be confidential carry out this section a total of $69,500,000 ground water well drilling rigs. If the Sec- and shall not be accessible or provided, in for fiscal years following fiscal year 1995, to retary determines that public safety has whole or in part, to another firm or to any remain available until expended. been adversely affected by the general rule government agency which is not part of the SEC. 126. CLARIFICATION OF ELIGIBILITY. established by subsection (b), the Secretary group of agencies sharing cost data under The improvements to, or adjacent to, the shall report to Congress on the determina- this subparagraph, except by written permis- main line of the National Railroad Passenger tion. sion of the audited firm. If prohibited by law, Corporation between milepost 190.23 at Cen- SEC. 131. RURAL ACCESS PROJECTS. such cost and rate data shall not be disclosed tral Falls, Rhode Island, and milepost 168.53 Item 111 of the table in section 1106(a)(2) of under any circumstances. at Davisville, Rhode Island, that are nec- the Intermodal Surface Transportation Effi- ‘‘(E) EFFECTIVE DATE/STATE OPTION.—Sub- essary to support the rail movement of ciency Act of 1991 (Public Law 102–240; 105 paragraphs (C) and (D) shall take effect upon freight shall be eligible for funding under Stat. 2042) is amended— the date of enactment of this Act: Provided

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00090 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8931 however, That if a State, during the first reg- vehicle that could legally operate on the 104- SEC. 142. ELIMINATION OF PENALTIES FOR NON- ular session of the State legislature con- mile portion before the date of enactment of COMPLIANCE WITH MOTORCYCLE vening after the date of enactment of this this subsection.’’. HELMET USE REQUIREMENT. Act, adopts by statute an alternative process SEC. 139. PROHIBITION ON NEW HIGHWAY DEM- Section 153(h) of title 23, United States intended to promote engineering and design ONSTRATION PROJECTS. Code, is amended by striking ‘‘a law de- quality, reduce life-cycle costs, and ensure (a) IN GENERAL.—Notwithstanding any scribed in subsection (a)(1) and’’ each place maximum competition by professional com- other law, neither the Secretary of Transpor- it appears. panies of all sizes providing engineering and tation nor any other officer or employee of SEC. 143. CLARIFICATION OF ELIGIBILITY. design services. Such subparagraphs shall the United States may make funds available The improvements to the former Pocono not apply in that State.’’. for obligation to carry out any demonstra- Northeast Railway Company freight rail line by the Luzerne County Redevelopment Au- SEC. 135. FEDERAL SHARE FOR ECONOMIC tion project described in subsection (b) that GROWTH CENTER DEVELOPMENT has not been authorized, or for which no thority that are necessary to support the rail HIGHWAYS. funds have been made available, as of the movement of freight, shall be eligible for Section 1021(c) of the Intermodal Surface date of enactment of this Act. funding under sections 130, 144, and 149 of Transportation Efficiency Act of 1991 (Public (b) PROJECTS.—Subsection (a) applies to a title 23, United States Code. Law 102–240) (as amended by section 417 of demonstration project or program that the SEC. 144. TOLL ROADS, BRIDGES, TUNNELS, NON- the Department of Transportation and Re- Secretary of Transportation determines— TOLL ROADS THAT HAVE A DEDI- lated Agencies Appropriations Act, 1993 (1)(A) concerns a State-specific highway CATED REVENUE SOURCE, AND FER- project or research or development in a spe- RIES. (Public Law 102–388; 106 Stat. 1565)) is amend- Section 129 of title 23, United States Code, ed— cific State; or (B) is otherwise comparable to a dem- is amended— (1) in paragraph (2), by striking ‘‘and’’ at (1) by revising the title to read as follows: the end and inserting ‘‘or’’; and onstration project or project of national sig- (2) in paragraph (3), by striking ‘‘section nificance authorized under any of sections ‘‘§ 129. Toll roads, bridges, tunnels, non-toll 143 of title 23’’ and inserting ‘‘a project for 1103 through 1108 of the Intermodal Surface roads that have a dedicated revenue ; and the construction, reconstruction, or im- Transportation Efficiency Act of 1991 (Public source, and ferries’’ provement of a development highway on a Law 102–240; 105 Stat. 2027); and (2) by revising paragraph 129(a)(7) to read Federal-aid system, as described in section (2) does not concern a federally owned as follows: 103 of such title (as in effect on the day be- highway. ‘‘(7) LOANS.— fore the date of enactment of this Act) (other SEC. 140. TREATMENT OF CENTENNIAL BRIDGE, ‘‘(A) IN GENERAL.—A State may loan an than the Interstate System), under section ROCK ISLAND, ILLINOIS, AGREE- amount equal to all or part of the Federal 143 of such title’’. MENT. share of a toll project or a non-toll project For purposes of section 129(a)(6) of title 23, SEC. 136. VEHICLE WEIGHT AND LONGER COM- that has a dedicated revenue source, specifi- BINATION VEHICLES EXEMPTION United States Code, the agreement con- cally dedicated to such project or projects FOR SIOUX CITY, IOWA. cerning the Centennial Bridge, Rock Island, under this section, to a public entity con- (a) VEHICLE WEIGHT LIMITATIONS.—The pro- Illinois, entered into under the Act entitled structing or proposing to construct a toll fa- viso in the second sentence of section 127(a) ‘‘An Act authorizing the city of Rock Island, cility or non-toll facility with a dedicated of title 23, United States Code, is amended by Illinois, or its assigns, to construct, main- revenue source. Dedicated revenue sources striking ‘‘except for those’’ and inserting the tain, and operate a toll bridge across the for non-toll facilities include: excise taxes, following: ‘‘except for vehicles using Inter- Mississippi River at or near Rock Island, Illi- sales taxes, motor vehicle use fees, tax on state 29 between Sioux City, Iowa, and the nois, and to a place at or near the city of real property, tax increment financing, or border between Iowa and South Dakota and Davenport, Iowa’’, approved March 18, 1938 such other dedicated revenue source as the vehicles using Interstate Route 129 between (52 Stat. 110, chapter 48), shall be treated as Secretary deems appropriate.’’. Sioux City, Iowa, and the border between if the agreement had been entered into under SEC. 145. TRANSFER OF FUNDS BETWEEN CER- Iowa and Nebraska, and except for’’. section 129 of title 23, United States Code, as TAIN DEMONSTRATION PROJECTS (b) LONGER COMBINATION VEHICLES.—Sec- in effect on December 17, 1991, and may be IN LOUISIANA. tion 127(d)(1) of title 23, United States Code, modified in accordance with section 129(a)(6) Notwithstanding any other law, the funds is amended by adding at the end the fol- of the title. available for obligation to carry out the lowing: SEC. 141. MORATORIUM ON CERTAIN EMISSIONS project in West Calcasieu Parish, Louisiana, ‘‘(F) IOWA.—In addition to vehicles that TESTING REQUIREMENTS. authorized by section 149(a)(87) of the Sur- the State of Iowa may continue to allow to (a) MORATORIUM.— face Transportation and Uniform Relocation be operated under subparagraph (A), the (1) IN GENERAL.—The Administrator of the Assistance Act of 1987 (Public Law 100–17; 101 State of Iowa may allow longer combination Environmental Protection Agency (referred Stat. 194) shall be made available for obliga- vehicles that were not in actual operation on to in this subsection as the ‘‘Adminis- tion to carry out the project for Lake June 1, 1991, to be operated on Interstate trator’’) shall not require adoption or imple- Charles, Louisiana, authorized by item 17 of Route 29 between Sioux City, Iowa, and the mentation by a State of a test-only or I/M240 the table in section 1106(a)(2) of the Inter- border between Iowa and South Dakota and enhanced vehicle inspection and mainte- modal Surface Transportation Efficiency Act Interstate 129 between Sioux City, Iowa, and nance program as a means of compliance of 1991 (Public Law 102–240; 105 Stat. 2038). the border between Iowa and Nebraska.’’. with section 182 of the Clean Air Act (42 SEC. 146. NORTHWEST ARKANSAS REGIONAL AIR- PORT CONNECTOR. SEC. 137. REVISION OF AUTHORITY FOR CONGES- U.S.C. 7511a), but the Administrator may ap- TION RELIEF PROJECT IN CALI- prove such a program if a State chooses to Notwithstanding any other provision of FORNIA. adopt the program as a means of compliance. law, the Federal share for the intermodal Item 1 of the table in section 1104(b) of the (2) REPEAL.—Paragraph (1) is repealed ef- connecter to the Northwest Arkansas Re- Intermodal Surface Transportation Effi- fective as of the date that is 1 year after the gional Airport from U.S. Highway 71 in Ar- ciency Act of 1991 (Public Law 102–240; 105 date of enactment of this Act. kansas shall be 95 percent. Stat. 2029) is amended by striking ‘‘Construc- (b) PLAN APPROVAL.— SEC. 147. INTERCITY RAIL INFRASTRUCTURE IN- tion of HOV Lanes on I–710’’ and inserting (1) IN GENERAL.—The Administrator of the VESTMENT. ‘‘Construction of automobile and truck sepa- Environmental Protection Agency (referred (a) INTERSTATE RAIL COMPACTS.— ration lanes at the southern terminus of I– to in this subsection as the ‘‘Adminis- (1) CONSENT TO COMPACTS.—Congress grants 710’’. trator’’) shall not disapprove a State imple- consent to States with an interest in a spe- SEC. 138. APPLICABILITY OF CERTAIN VEHICLE mentation plan revision under section 182 of cific form, route, or corridor of intercity pas- WEIGHT LIMITATIONS IN WIS- the Clean Air Act (42 U.S.C. 7511a) on the senger rail service (including high speed rail CONSIN. basis of a regulation providing for a 50-per- service) to enter into interstate compacts to Section 127 of title 23, United States Code, cent discount for alternative test-and-repair promote the provision of the service, includ- is amended by adding at the end the fol- inspection and maintenance programs. ing— lowing: (2) CREDIT.—If a State provides data for a (A) retaining an existing service or com- ‘‘(f) OPERATION OF CERTAIN SPECIALIZED proposed inspection and maintenance system mencing a new service; HAULING VEHICLES ON CERTAIN WISCONSIN for which credits are appropriate under sec- (B) assembling rights-of-way; and HIGHWAYS.—If the 104-mile portion of Wis- tion 182 of the Clean Air Act (42 U.S.C. 7511a), (C) performing capital improvements, in- consin State Route 78 and United States the Administrator shall allow the full cluding— Route 51 between Interstate Route 94 near amount of credit for the system that is ap- (i) the construction and rehabilitation of Portage, Wisconsin, and Wisconsin State propriate without regard to any regulation maintenance facilities; Route 29 south of Wausau, Wisconsin, is des- that implements that section by requiring (ii) the purchase of locomotives; and ignated as part of the Interstate System centralized emissions testing. (iii) operational improvements, including under section 139(a), the single axle weight, (3) DEADLINE.—The Administrator shall communications, signals, and other systems. tandem axle weight, gross vehicle weight, complete and present a technical assessment (2) FINANCING.—An interstate compact es- and bridge formula limits set forth in sub- of data for a proposed inspection and mainte- tablished by States under paragraph (1) may section (a) shall not apply to the 104-mile nance system submitted by a State not later provide that, in order to carry out the com- portion with respect to the operation of any than 45 days after the date of submission. pact, the States may—

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00091 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8932 CONGRESSIONAL RECORD — SENATE June 22, 1995 (A) accept contributions from a unit of SEC. 149. CONTINGENT COMMITMENTS. (4) the subsequent actions of vehicle own- State or local government or a person; At the end of section 5309(g)(4) of title 49, ers participating in each program concerning (B) use any Federal or State funds made United States Code, add the following new the purchase of a new or used vehicle or the available for intercity passenger rail service sentence: ‘‘The Secretary may enter future use of such a vehicle; (except funds made available for the Na- obligations in excess of 50 percent of said un- (5) the length of the credit given to a pur- tional Railroad Passenger Corporation); committed cash balance for the purpose of chaser of a retired vehicle under each pro- (C) on such terms and conditions as the contingent commitments for projects au- gram; States consider advisable— thorized under section 3032 of Public Law (6) equity impacts of the programs on the (i) borrow money on a short-term basis and 102–240.’’. used car market for buyers and sellers; and issue notes for the borrowing; and SEC. 150. AVAILABILITY OF CERTAIN FUNDS FOR (7) such other factors as the Administrator (ii) issue bonds; and BOSTON-TO-PORTLAND RAIL COR- determines appropriate. (D) obtain financing by other means per- RIDOR. SEC. 156. INTERCITY RAIL INFRASTRUCTURE IN- mitted under Federal or State law. Section 5309 of title 49, United States Code, VESTMENT FROM MASS TRANSIT AC- COUNT OF HIGHWAY TRUST FUND. (b) ELIGIBILITY OF PASSENGER RAIL AS SUR- is amended by adding at the end the fol- Section 5323 of title 49, United States Code, FACE TRANSPORTATION PROGRAM PROJECT.— lowing new subsection: Section 133(b) of title 23, United States Code, ‘‘(p) BOSTON-TO-PORTLAND RAIL COR- is amended by adding at the end the fol- lowing new subsection: is amended— RIDOR.—Notwithstanding any other provision ‘‘(m) INTERCITY RAIL INFRASTRUCTURE IN- (1) in paragraph (1), by inserting ‘‘, rail- of law, up to $3,600,000 of the funds made VESTMENT.—Any assistance provided to a roads,’’ after ‘‘highways)’’; available under this section for the rail cor- ridor between Boston, Massachusetts and State that does not have Amtrak service as (2) in paragraph (2)— of date of enactment of this Act from the (A) by inserting ‘‘, all eligible activities Portland, Maine may be used to pay for oper- ating costs arising in connection with such Mass Transit Account of the Highway Trust under section 5311 of title 49, United States Fund may be used for capital improvements Code,’’ before ‘‘and publicly owned’’; rail corridor under section 5333(b).’’. SEC. 151. REVISION OF AUTHORITY OF to, and operating support for, intercity pas- (B) by inserting ‘‘or rail passenger’’ after senger rail service.’’. ‘‘intercity bus’’; and MULTIYEAR CONTRACTS. Section 3035(ww) of the Intermodal Surface SEC. 157. MORATORIUM. (C) by inserting before the period at the Transportation Efficiency Act of 1991 (Public (a) IN GENERAL.—Notwithstanding any end the following: ‘‘, including terminals and Law 102–240; 105 Stat. 2136) is amended by other provision of law, no agency of the Fed- facilities owned by the National Railroad adding at the end the following: ‘‘Of the eral Government may take any action to Passenger Corporation’’; and funds provided by this subsection, $100,000,000 prepare, promulgate, or implement any rule (3) in paragraph (6), by inserting ‘‘, and for is authorized to be appropriated for region- or regulation addressing rights-of-way au- passenger rail services,’’ after ‘‘programs’’. ally significant ground transportation thorized pursuant to Revised Statutes 2477 (c) ELIGIBILITY OF PASSENGER RAIL UNDER projects in the State of Hawaii.’’. (43 U.S.C. 932), as such law was in effect prior CONGESTION MITIGATION AND AIR QUALITY IM- to October 21, 1976. SEC. 152. FEASIBILITY STUDY OF EVACUATION PROVEMENT PROGRAM.—The first sentence of (b) SUNSET.—This section shall cease to ROUTES FOR LOUISIANA COASTAL section 149(b) of title 23, United States Code, AREAS. have any force or effect after December 1, is amended— Notwithstanding any other provisions of 1995. (1) in paragraph (2), by striking ‘‘or’’ at the law, section 1105(e)(2) of Public Law 102–240 is TITLE II—NATIONAL CAPITAL REGION end; amended by adding at the end the following INTERSTATE TRANSPORTATION AU- (2) in paragraph (3), by striking the period new sentence: ‘‘A feasibility study may be THORITY at the end and inserting ‘‘; or’’; and conducted under this subsection to identify SEC. 201. SHORT TITLE. (3) by adding at the end the following: routes that will expedite future emergency This title may be cited as the ‘‘National ‘‘(4) if the project or program will have air evacuations of coastal areas of Louisiana.’’. Capital Region Interstate Transportation quality benefits through construction of and SEC. 153. 34TH STREET CORRIDOR PROJECT IN Authority Act of 1995’’. operational improvements for intercity pas- MOORHEAD, MINNESOTA. SEC. 202. FINDINGS. senger rail facilities, operation of intercity Section 149(a)(5)(A) of the Surface Trans- Congress finds that— passenger rail trains, and acquisition of roll- portation and Uniform Relocation Assist- (1) traffic congestion imposes serious eco- ing stock for intercity passenger rail service, ance Act of 1987 (Public Law 100–17; 101 Stat. nomic burdens on the metropolitan Wash- except that not more than 50 percent of the 181) is amended— ington, D.C., area, costing each commuter an amount received by a State for a fiscal year (1) in clause (i), by striking ‘‘and’’ at the estimated $1,000 per year; under this paragraph may be obligated for end; and (2) the volume of traffic in the metropoli- operating support.’’. (2) by inserting ‘‘and (iii) a safety over- tan Washington, D.C., area is expected to in- SEC. 148. OPERATION OF MOTOR VEHICLES BY pass,’’ after ‘‘interchange,’’. crease by more than 70 percent between 1990 INTOXICATED MINORS. SEC. 154. SAFETY BELT USE LAW REQUIREMENTS and 2020; Section 158(a) of title 23, United States FOR NEW HAMPSHIRE AND MAINE. (3) the deterioration of the Woodrow Wil- Code, is amended— The State of New Hampshire and the State son Memorial Bridge and the growing popu- (1) by striking paragraph (1) and inserting of Maine shall be deemed as having met the lation of the metropolitan Washington, D.C., the following: safety belt use law requirements of section area contribute significantly to traffic con- ‘‘(1) OPERATION OF MOTOR VEHICLES BY IN- 153 of title 23, United States Code, upon cer- gestion; TOXICATED MINORS.— tification by the Secretary of Transportation (4) the Bridge serves as a vital link in the ‘‘(A) FISCAL YEAR 1998.—If the condition de- that the State has achieved— Interstate System and in the Northeast cor- scribed in subparagraph (C) exists in a State (1) a safety belt use rate in each of fiscal ridor; as of October 1, 1998, the Secretary shall years ending September 30, 1995 and Sep- (5) identifying alternative methods for withhold, on October 1, 1998, 5 percent of the tember 30, 1996, of not less than 50 percent; maintaining this vital link of the Interstate amount required to be apportioned to the and System is critical to addressing the traffic State under each of paragraphs (1), (2), (5), (2) a safety belt use rate in each succeeding congestion of the area; and (6) of section 104(b) for fiscal year 1998. fiscal year thereafter of not less than the na- (6) the Bridge is— ‘‘(B) FISCAL YEARS THEREAFTER.—If the tional average safety belt use rate, as deter- (A) the only drawbridge in the metropoli- condition described in subparagraph (C) ex- mined by the Secretary of Transportation. tan Washington, D.C., area on the Interstate ists in a State as of October 1, 1999, or any SEC. 155. REPORT ON ACCELERATED VEHICLE System; October 1 thereafter, the Secretary shall RETIREMENT PROGRAMS. (B) the only segment of the Capital Belt- withhold, on that October 1, 10 percent of the Not later than 180 days after the date of way with only 6 lanes; and amount required to be apportioned to the enactment of this Act, the Administrator of (C) the only segment of the Capital Belt- State under each of paragraphs (1), (2), (5), the Environmental Protection Agency shall way with a remaining expected life of less and (6) of section 104(b) for the fiscal year be- transmit to Congress a report evaluating the than 10 years; ginning on that October 1. effectiveness of all accelerated vehicle re- (7) the Bridge is the only part of the Inter- ‘‘(C) CONDITION.—The condition referred to tirement programs described in section state System owned by the Federal Govern- in subparagraphs (A) and (B) is that an indi- 108(f)(1)(A)(xvi) of the Clean Air Act (42 ment; vidual under the age of 21 who has a blood al- U.S.C. 7408(f)(1)(A)(xvi)) in existence on the (8)(A) the Bridge was constructed by the cohol concentration of 0.02 percent or great- date of enactment of this Act. The report Federal Government; er when operating a motor vehicle in the shall evaluate— (B) prior to the date of enactment of this State is not considered to be driving while (1) the certainties of emissions reductions Act, the Federal Government has contrib- intoxicated or driving under the influence of gained from each program; uted 100 percent of the cost of building and alcohol.’’; and (2) the variability of emissions of retired rehabilitating the Bridge; and (2) in paragraph (2), by striking ‘‘AFTER vehicles; (C) the Federal Government has a con- THE FIRST YEAR’’ and inserting ‘‘PURCHASE (3) the reduction in the number of vehicle tinuing responsibility to fund future costs AND POSSESSION OF ALCOHOLIC BEVERAGES BY miles traveled by the vehicles retired as a re- associated with the upgrading of the Inter- MINORS’’. sult of each program; state

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Route 95 crossing, including the rehabilita- the Commonwealth of Virginia located in (4) VACANCIES.—Subject to paragraph (5), a tion and reconstruction of the Bridge; the counties; person appointed to fill a vacancy on the (9) the Woodrow Wilson Bridge Coordina- (B) the counties of Montgomery and Prince Board shall serve for the unexpired term. tion Committee, established by the Federal Georges, Maryland, and the political subdivi- (5) REAPPOINTMENTS.—A member of the Highway Administration and comprised of sions of the State of Maryland located in the Board shall be eligible for reappointment for representatives of Federal, State, and local counties; and 1 additional term. governments, is undertaking planning stud- (C) the District of Columbia. (6) PERSONAL LIABILITY OF MEMBERS.—A ies pertaining to the Bridge, consistent with (8) SECRETARY.—The term ‘‘Secretary’’ member of the Board, including any non- the National Environmental Policy Act of means the Secretary of Transportation. voting member, shall not be personally lia- 1969 (42 U.S.C. 4321 et seq.) and other applica- SEC. 205. ESTABLISHMENT OF AUTHORITY. ble for— ble Federal laws; (a) CONSENT TO AGREEMENT.—Congress (A) any action taken in the capacity of the (10) the transfer of ownership of the Bridge grants consent to the Commonwealth of Vir- member as a member of the Board; or to a regional entity under the terms and con- ginia, the State of Maryland, and the Dis- (B) any note, bond, or other financial obli- ditions described in this title would foster trict of Columbia to enter into an interstate gation of the Authority. regional transportation planning efforts to agreement or compact to establish the Na- (7) QUORUM.— identify solutions to the growing problem of tional Capital Region Interstate Transpor- (A) IN GENERAL.—Subject to subparagraph traffic congestion on and around the Bridge; tation Authority in accordance with this (B), for the purpose of carrying out the busi- (11) any material change to the Bridge title. ness of the Authority, 7 members of the must take into account the interests of near- (b) ESTABLISHMENT OF AUTHORITY.— Board shall constitute a quorum. by communities, the commuting public, Fed- (1) IN GENERAL.—On execution of the inter- (B) APPROVAL OF BOND ISSUES AND BUDG- eral, State, and local government organiza- state agreement or compact described in ET.—Eight affirmative votes of the members tions, and other affected groups; and subsection (a), the Authority shall be consid- of the Board shall be required to approve (12) a commission of congressional, State, ered to be established. bond issues and the annual budget of the Au- and local officials and transportation rep- (2) GENERAL POWERS.—The Authority shall thority. resentatives has recommended to the Sec- be a body corporate and politic, independent (8) COMPENSATION.—A member of the Board retary of Transportation that the Bridge be of all other bodies and jurisdictions, having shall serve without compensation and shall transferred to an independent authority to the powers and jurisdiction described in this reside within a Capital Region jurisdiction. be established by the Capital Region juris- title and such additional powers as are con- (9) EXPENSES.—A member of the Board dictions. ferred on the Authority by the Capital Re- shall be entitled to reimbursement for the SEC. 203. PURPOSES. gion jurisdictions, to the extent that the ad- expenses of the member incurred in attend- The purposes of this title are— ditional powers are consistent with this ing a meeting of the Board or while other- (1) to grant consent to the Commonwealth title. wise engaged in carrying out the duties of of Virginia, the State of Maryland, and the the Board. District of Columbia to establish the Na- SEC. 206. GOVERNMENT OF AUTHORITY. SEC. 207. OWNERSHIP OF BRIDGE. tional Capital Region Interstate Transpor- (a) IN GENERAL.—The Authority shall be (a) CONVEYANCE BY SECRETARY.— tation Authority; and governed in accordance with this section and (2) to authorize the transfer of ownership with the terms of any interstate agreement (1) IN GENERAL.—After the Capital Region of the Bridge to the Authority for the pur- or compact relating to the Authority that is jurisdictions enter into the agreement de- poses of owning, constructing, maintaining, consistent with this title. scribed in subsection (c), the Secretary shall and operating a bridge or tunnel or a bridge (b) BOARD.—The Authority shall be gov- convey all right, title, and interest of the and tunnel project across the Potomac erned by a board of directors consisting of 12 Department of Transportation in and to the River. members appointed by the Capital Region ju- Bridge to the Authority. Except as provided in paragraph (2), upon conveyance by the SEC. 204. DEFINITIONS. risdictions and 1 member appointed by the In this title: Secretary. Secretary, the Authority shall accept the right, title, and interest in and to the (1) AUTHORITY.—The term ‘‘Authority’’ (c) QUALIFICATIONS.—One member of the means the National Capital Region Inter- Board shall have an appropriate background Bridge, and all duties and responsibilities as- state Transportation Authority authorized in finance, construction lending, or infra- sociated with the Bridge. by this title and by similar enactment by structure policy. (2) INTERIM RESPONSIBILITIES.—Until such each of the Capital Region jurisdictions. (d) CHAIRPERSON.—The chairperson of the time as a new crossing of the Potomac River (2) AUTHORITY FACILITY.—The term ‘‘Au- Board shall be elected biennially by the described in section 208 is constructed and thority facility’’ means— members of the Board. operational, the conveyance under paragraph (A) the Bridge (as in existence on the date (e) SECRETARY AND TREASURER.—The Board (1) shall in no way— of enactment of this Act); may— (A) relieve the Capital Region jurisdictions (B) any southern Capital Beltway crossing (1) biennially elect a secretary and a treas- of the sole and exclusive responsibility to of the Potomac River constructed in the vi- urer, or a secretary-treasurer, without re- maintain and operate the Bridge; or cinity of the Bridge after the date of enact- gard to whether the individual is a member (B) relieve the Secretary of the responsi- ment of this Act; or of the Board; and bility to rehabilitate the Bridge or to comply (C) any building, improvement, addition, (2) prescribe the powers and duties of the with the National Environmental Policy Act extension, replacement, appurtenance, land, secretary and treasurer, or the secretary- of 1969 (42 U.S.C. 4321 et seq.) and all other interest in land, water right, air right, fran- treasurer. requirements applicable with respect to the chise, machinery, equipment, furnishing, (f) TERMS.— Bridge. landscaping, easement, utility, approach, (1) IN GENERAL.—Except as provided in (b) CONVEYANCE BY THE SECRETARY OF THE roadway, or other facility necessary or desir- paragraph (2), a member of the Board shall INTERIOR.—At the same time as the convey- able in connection with or incidental to a fa- serve for a 6-year term, and shall continue to ance of the Bridge by the Secretary under cility described in subparagraph (A) or (B). serve until the successor of the member has subsection (a), the Secretary of the Interior (3) BOARD.—The term ‘‘Board’’ means the been appointed in accordance with this sub- shall transfer to the Authority all right, board of directors of the Authority estab- section. title, and interest of the Department of the lished under section 206. (2) INITIAL APPOINTMENTS.— Interior in and to such land under or adja- (4) BRIDGE.—The term ‘‘Bridge’’ means the (A) BY CAPITAL REGION JURISDICTIONS.— cent to the Bridge as is necessary to carry Woodrow Wilson Memorial Bridge across the Members initially appointed to the Board by out section 208. Upon conveyance by the Sec- Potomac River. a Capital Region jurisdiction shall be ap- retary of the Interior, the Authority shall (5) CAPITAL REGION JURISDICTION.—The pointed for the following terms: accept the right, title, and interest in and to term ‘‘Capital Region jurisdiction’’ means— (i) 1 member shall be appointed for a 6-year the land. (A) the Commonwealth of Virginia; term. (c) AGREEMENT.—The agreement referred (B) the State of Maryland; or (ii) 1 member shall be appointed for a 4- to in subsection (a) is an agreement among (C) the District of Columbia. year term. the Secretary, the Governors of the Com- (6) INTERSTATE SYSTEM.—The term ‘‘Inter- (iii) 2 members shall each be appointed for monwealth of Virginia and the State of state System’’ means the Dwight D. Eisen- a 2-year term. Maryland, and the Mayor of the District of hower National System of Interstate and De- (B) BY SECRETARY.—The member of the Columbia as to the Federal share of the cost fense Highways designated under section Board appointed by the Secretary shall be of the activities carried out under section 103(e) of title 23, United States Code. appointed for a 6-year term. 208. (7) NATIONAL CAPITAL REGION.—The term (3) FAILURE TO APPOINT.—The failure of a SEC. 208. CAPITAL IMPROVEMENTS AND CON- ‘‘National Capital Region’’ means the region Capital Region jurisdiction to appoint 1 or STRUCTION. consisting of the metropolitan areas of— more members of the Board, as provided in The Authority shall take such action as is (A)(i) the cities of Alexandria, Fairfax, and this subsection, shall not impair the estab- necessary to address the need of the National Falls Church, Virginia; and lishment of the Authority if the condition of Capital Region for an enhanced southern (ii) the counties of Arlington and Fairfax, the establishment described in section Capital Beltway crossing of the Potomac Virginia, and the political subdivisions of 205(b)(1) has been met. River that serves the traffic corridor of the

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Bridge (as in existence on the date of enact- operation of the Bridge or a new crossing of (e) REMOVAL OF ISTEA AUTHORIZATION FOR ment of this Act), in accordance with the the Potomac River described in section 208; BRIDGE REHABILITATION.—Section 1069 of the recommendations in the final environmental (10) to make any payment necessary to re- Intermodal Surface Transportation Effi- impact statement prepared by the Secretary. imburse a local political subdivision having ciency Act of 1991 (Public Law 102–240; 105 The Authority shall have the sole responsi- jurisdiction over an area where the Bridge or Stat. 2009) is amended by striking subsection bility for the ownership, construction, oper- a new crossing of the Potomac River is situ- (i). ation, and maintenance of a new crossing of ated for any extraordinary law enforcement SEC. 211. AVAILABILITY OF PRIOR AUTHORIZA- the Potomac River. cost incurred by the subdivision in connec- TIONS. SEC. 209. ADDITIONAL POWERS AND RESPON- tion with the Authority facility; In addition to the funds made available SIBILITIES OF AUTHORITY. (11) to enter into partnerships or grant under section 210, any funds made available In addition to the powers and responsibil- concessions between the public and private for the rehabilitation of the Bridge under ities of the Authority under the other provi- sectors for the purpose of— sections 1069(i) and 1103(b) of the Intermodal sions of this title and under any interstate (A) financing, constructing, maintaining, Surface Transportation Efficiency Act of 1991 (Public Law 102–240; 105 Stat. 2009 and agreement or compact relating to the Au- improving, or operating the Bridge or a new 2028) (as in effect prior to the amendment thority that is consistent with this title, the crossing of the Potomac River described in made by section 210(e)) shall continue to be Authority shall have all powers necessary section 208; or available after the conveyance of the Bridge and appropriate to carry out the duties of (B) fostering development of a new trans- to the Authority under section 207(a), in ac- the Authority, including the power— portation technology; cordance with the terms under which the (1) to adopt and amend any bylaw that is (12) to obtain any necessary Federal au- funds were made available under the Act. necessary for the regulation of the affairs of thorization, permit, or approval for the con- the Authority and the conduct of the busi- struction, repair, maintenance, or operation TITLE III—FEDERAL HIGHWAY AND ness of the Authority; of the Bridge or a new crossing of the Poto- RAILROAD GRADE CROSSING SAFETY (2) to adopt and amend any regulation that mac River described in section 208; SEC. 301. SHORT TITLE. is necessary to carry out the powers of the (13) to adopt an official seal and alter the This title may be cited as the ‘‘Federal Authority; seal, as the Board considers appropriate; Highway and Railroad Grade Crossing Safety (3) subject to section 207(a)(2), to plan, es- (14) to appoint 1 or more advisory commit- Act of 1995’’. tablish, finance, operate, develop, construct, tees; SEC. 302. INTELLIGENT VEHICLE-HIGHWAY SYS- enlarge, maintain, equip, or protect the (15) to sue and be sued in the name of the TEMS. Bridge or a new crossing of the Potomac Authority; and In implementing the Intelligent Vehicle- River described in section 208; (16) to carry out any activity necessary or Highway Systems Act of 1991 (23 U.S.C. 307 (4) to employ, in the discretion of the Au- appropriate to the exercise of the powers or note), the Secretary of Transportation shall thority, a consulting engineer, attorney, ac- performance of the duties of the Authority ensure that the National Intelligent Vehicle- countant, construction or financial expert, under this title and under any interstate Highway Systems Program addresses, in a superintendent, or manager, or such other agreement or compact relating to the Au- comprehensive and coordinated manner, the employee or agent as is necessary, and to fix thority that is consistent with this title, if use of intelligent vehicle-highway tech- the compensation and benefits of the em- the activity is coordinated and consistent nologies to promote safety at railroad-high- ployee or agent, except that— with the transportation planning process im- way grade crossings. The Secretary of Trans- (A) an employee of the Authority shall not plemented by the metropolitan planning or- portation shall ensure that two or more engage in an activity described in section ganization for the Washington, District of operational tests funded under such Act shall promote highway traffic safety and 7116(b)(7) of title 5, United States Code, with Columbia, metropolitan area under section railroad safety. respect to the Authority; and 134 of title 23, United States Code, and sec- (B) an employment agreement entered into tion 5303 of title 49, United States Code. SEC. 303. STATE HIGHWAY SAFETY MANAGEMENT SYSTEMS. by the Authority shall contain an explicit SEC. 210. FUNDING. (a) AMENDMENT OF REGULATIONS.—The Sec- prohibition against an activity described in (a) SET-ASIDE.—Section 104 of title 23, retary of Transportation shall conduct a subparagraph (A) with respect to the Author- United States Code (as amended by section rulemaking proceeding to amend the regula- ity by an employee covered by the agree- 125(b)(2)(A)), is further amended— (1) in the first sentence of subsection (b), tions under section 500.407 of title 23, Code of ment; Federal Regulations, to require that each (5) to— by striking ‘‘subsection (f) of this section’’ and inserting ‘‘subsections (f) and (i)’’; highway safety management system devel- (A) acquire personal and real property (in- oped, established, and implemented by a cluding land lying under water and riparian (2) by redesignating subsection (i) as sub- section (j); and State shall, among countermeasures and pri- rights), or any easement or other interest in orities established under subsection (b)(2) of real property, by purchase, lease, gift, trans- (3) by inserting before subsection (j) the following: that section— fer, or exchange; and (1) include public railroad-highway grade- (B) exercise such powers of eminent do- ‘‘(i) WOODROW WILSON MEMORIAL BRIDGE.— Before making an apportionment of funds crossing closure plans that are aimed at main in the Capital Region jurisdictions as eliminating high-risk or redundant crossings are conferred on the Authority by the Cap- under subsection (b), the Secretary shall set aside $17,550,000 for fiscal year 1996 and (as defined by the Secretary); ital Region jurisdictions, in the exercise of (2) include railroad-highway grade-crossing the powers and the performance of the duties $80,050,000 for fiscal year 1997 for the rehabili- tation of the Woodrow Wilson Memorial policies that limit the creation of new at- of the Authority; Bridge and for the planning, preliminary de- grade crossings for vehicle or pedestrian (6) to apply for and accept any property, sign, engineering, and acquisition of a right- traffic, recreational use, or any other pur- material, service, payment, appropriation, of-way for, and construction of, a new cross- pose; and grant, gift, loan, advance, or other fund that ing of the Potomac River.’’. (3) include plans for State policies, pro- is transferred or made available to the Au- (b) APPLICABILITY OF TITLE 23.—Funds grams, and resources to further reduce death thority by the Federal Government or by made available under this section shall be and injury at high-risk railroad-highway any other public or private entity or indi- available for obligation in the manner pro- grade crossings. vidual; vided for funds apportioned under chapter 1 (b) DEADLINE.—The Secretary of Transpor- (7) to borrow money on a short-term basis of title 23, United States Code, except that— tation shall complete the rulemaking pro- and issue notes of the Authority for the bor- (1) the Federal share of the cost of any ceeding described in subsection (a) and pre- rowing payable on such terms and conditions project funded under this section shall be 100 scribe the required amended regulations, not as the Board considers advisable, and to percent; and later than one year after the date of enact- issue bonds in the discretion of the Author- (2) the funds made available under this sec- ment of this Act. ity for any purpose consistent with this tion shall remain available until expended. SEC. 304. VIOLATION OF GRADE-CROSSING LAWS title, which notes and bonds— (c) STUDY.—Not later than May 31, 1997, the AND REGULATIONS. (A) shall not constitute a debt of the Secretary, in consultation with each of the (a) FEDERAL REGULATIONS.—Section 31311 United States, a Capital Region jurisdiction, Capital Region jurisdictions, shall prepare of title 49, United States Code, is amended by or any political subdivision of the United and submit to Congress a report identifying adding at the end the following new sub- States or a Capital Region jurisdiction; and the necessary Federal share of the cost of section: (B) may be secured solely by the general the activities to be carried out under section ‘‘(h) GRADE-CROSSING VIOLATIONS.— revenues of the Authority, or solely by the 208. ‘‘(1) SANCTIONS.—The Secretary shall issue income and revenues of the Bridge or a new (d) DISTRIBUTION OF OBLIGATION AUTHOR- regulations establishing sanctions and pen- crossing of the Potomac River described in ITY.—Section 1002(e)(3) of the Intermodal alties relating to violations, by persons oper- section 208; Surface Transportation Efficiency Act of ating commercial motor vehicles, of laws (8) to fix, revise, charge, and collect any 1991 (Public Law 102–240; 23 U.S.C. 104 note) is and regulations pertaining to railroad-high- reasonable toll or other charge; amended by inserting before the period at way grade crossings. (9) to enter into any contract or agreement the end the following: ‘‘and the National ‘‘(2) MINIMUM REQUIREMENTS.—Regulations necessary or appropriate to the performance Capital Region Interstate Transportation issued under paragraph (1) shall, at a min- of the duties of the Authority or the proper Authority Act of 1995’’. imum, require that—

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00094 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8935 ‘‘(A) the penalty for a single violation shall ensure that each State (including State sub- class-action lawsuits against compa- not be less than a 60-day disqualification of divisions and local governments) is making nies whose stock values—for one rea- the driver’s commercial driver’s license; and substantial, continued progress toward son or another—have fallen. ‘‘(B) any employer that knowingly allows, achievement of the purposes of this section. These so-called strike suits are rare- permits, authorizes, or requires an employee (c) CROSSING FREEZE.—If, upon review, and to operate a commercial motor vehicle in after opportunity for a hearing, the Sec- ly filed with any evidence of fraud or violation of such a law or regulation shall be retary determines that a State or political wrongdoing—in fact, they are often subject to a civil penalty of not more than subdivision thereof has failed to make sub- filed simply with the knowledge that $10,000.’’. stantial, continued progress toward achieve- the value of a stock has dropped. (b) DEADLINE.—The initial regulations re- ment of the purposes of this section, then This is possible because of the im- quired under section 31310(h) of title 49, the Secretary shall impose a limit on the plied right of action developed by the United States Code, shall be issued not later maximum number of public railroad-high- courts under rule 10(b)–5 of the Securi- than one year after the date of enactment of way grade crossings in that State. The limi- ties Act of 1934. Because Congress has this Act. tation imposed by the Secretary under this failed to limit this right of action (c) STATE REGULATIONS.—Section 31311(a) subsection shall remain in effect until the of title 49, United States Code, is amended by State demonstrates compliance with the re- through statute, it is relatively simple adding at the end the following new para- quirements of this section. In addition, the for attorneys to file frivolous cases and graph: Secretary may, for a period of not more than harass defendants under these judge- ‘‘(18) GRADE-CROSSING REGULATIONS.—The 3 years after such a determination, require made rules. State shall adopt and enforce regulations compliance with specific numeric targets for Even worse, these attorneys rarely prescribed by the Secretary under section net reductions in the number of railroad- serve any real injured class of inves- 31310(h) of this title.’’. highway grade crossings (including specifica- tors. Instead, they use professional SEC. 305. SAFETY ENFORCEMENT. tion of hazard categories with which such plaintiffs who buy nominal amounts of crossings are associated). (a) COOPERATION BETWEEN FEDERAL AND stock, simply to serve as the pawns of STATE AGENCIES.—The National Highway (d) REGULATIONS.—The Secretary shall Traffic Safety Administration, and the Of- issue such regulations as may be necessary an expensive chess match. fice of Motor Carriers within the Federal to carry out this section. Due to the costly array of litigation Highway Administration, shall on a con- Mr. CHAFEE. Mr. President, I move expenses, such as extensive discovery, tinuing basis cooperate and work with the to reconsider the vote. defendants will often choose to settle National Association of Governors’ Highway Mr. WARNER. I move to lay that mo- cases, rather than bring them to a final Safety Representatives, the Commercial Ve- tion on the table. judgment in court. hicle Safety Alliance, and Operation Life- The motion to lay on the table was In addition, under joint and several saver, Inc., to improve compliance with and agreed to. liability, plaintiffs’ attorneys can enforcement of laws and regulations per- bring secondary defendants, such as ac- taining to railroad-highway grade crossings. f countants, directors, and others, into (b) REPORT.—The Secretary of Transpor- PRIVATE SECURITIES LITIGATION tation shall submit a report to Congress by these cases and force them to settle as January 1, 1996, indicating (1) how the De- REFORM ACT well. partment worked with the above mentioned The Senate continued with the con- These settlements are often too entities to improve the awareness of the sideration of the bill. small to benefit the alleged class of in- highway and commercial vehicle safety and The PRESIDING OFFICER. The Sen- jured investors. But they are not too law enforcement communities of regulations ator from New York. small to make a healthy living for an and safety challenges at railroad-highway Mr. D’AMATO. Mr. President, I now attorney who is motivated solely by grade crossings, and (2) how resources are being allocated to better address these chal- propound a unanimous consent request profit, not justice. lenges and enforce such regulations. that Senator GRAMS, who has been To call this the practice of law would SEC. 306. CROSSING ELIMINATION; STATEWIDE waiting for several hours now, be per- be inaccurate. It is more appropriately CROSSING FREEZE. mitted to put in his opening statement, called legal blackmail or extortion, (a) STATEMENT OF POLICY.— Senator BOXER her opening statement, and it is happening every day, at the (1) Railroad-highway grade crossings and that then we go to Senator SHELBY expense of job providers, workers, and present inherent hazards to the safety of for the purposes of submitting his consumers. railroad operations and to the safety of per- amendment on proportional liability S. 240 addresses this problem by plac- sons using those crossings. It is in the public that we have already agreed to vote on ing some important limitations on the interest— implied right of action in rule 10(b)–5. (A) to eliminate redundant and high risk at 10:55. So I propound that as a unani- railroad-highway grade crossings; and mous consent request. By helping put the brakes on the at- (B) to limit the creation of new crossings The PRESIDING OFFICER. Is there torneys’ race to the courthouse, this to the minimum necessary to provide for the objection? The Chair hears none, and it legislation would make it easier for de- reasonable mobility of the American people is so ordered. fendants to protect themselves from and their property, including emergency ac- Mr. D’AMATO. I thank the Chair. frivolous ‘‘strike’’ suits, encourage vol- cess. Mr. GRAMS addressed the Chair. untary disclosure of information from (2) Elimination of redundant and high-risk The PRESIDING OFFICER. The Sen- issuers of stock to potential investors, railroad-highway grade crossings is nec- ator from Minnesota. and reduce the cost of raising capital essary to permit optimum use of available funds to improve the safety of remaining Mr. GRAMS. Mr. President, I rise in which is so necessary for jobs creation. crossings, including funds provided under support of S. 240, the Private Securities It includes a number of important Federal law. Litigation Reform Act of 1995. provisions, including tougher pleading (3) Effective programs to reduce the num- As we all know, the United States is requirements for securities fraud ac- ber of unneeded railroad-highway grade facing a litigation crisis. Piles of new tions, mandatory sanctions for attor- crossings, and to close those crossings that and often frivolous lawsuits are being neys who file needless litigation, and cannot be made reasonably safe (due to rea- filed every day in our Nation’s court- restrictions on windfall recoveries for sons of topography, angles of intersection, rooms, bottling up our judicial system plaintiffs who profit from a rebound in etc.), require the partnership of Federal, State, and local officials and agencies, and and crowding out those suits which the market after an alleged fraud. affected railroads. have merit and demand justice. I am also pleased that S. 240 reforms (4) Promotion of a balanced national trans- Already, the Senate has addressed the rules governing secondary defend- portation system requires that highway the problems in our product liability ants. This measure establishes a two- planning specifically take into consideration laws and debated the issue of medical tiered system which allows most par- the interface between highways and the na- malpractice reform. ties to be held proportionately liable tional railroad system. But few areas of our tort system de- only for the percentage of damages at- (b) PARTNERSHIP AND OVERSIGHT.—The Sec- serve and require as comprehensive a tributable to their actions; in other retary shall foster a partnership among Fed- review as the field of securities litiga- words, it puts an end to the practice of eral, State, and local transportation officials and agencies to reduce the number of rail- tion. ‘‘deep pockets’’ litigation. road-highway grade crossings and to improve Let me briefly describe the problem. Mr. President, this legislation is not safety at remaining crossings. The Secretary For years, a small number of attorneys a perfect bill. There are many of us shall make provisions for periodic review to have made it their life’s work to bring who believe it should do more.

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00095 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8936 CONGRESSIONAL RECORD — SENATE June 22, 1995 We could, for example, have a strong- who need those investments to be I want to show you what newspapers er safe harbor protection for forward- sound. I can tell you, in those days, if have been saying about this bill, S. 240. looking statements or a ‘‘loser pays’’ I invested in a stock for an elderly per- There are many people who take it to provisions similar to the bill passed by son, I literally worried a lot about the floor and they have extolled this the House. Today, however, we cannot them, and if things turned around, I bill in its current form. They like it. let the perfect be the envy of the good. was very quick to get on the phone and Many of them have worked very hard Likewise, there will be attempts talk with them about it. I took this re- on it and they are very close to it. I made to weaken this bill—efforts which sponsibility very seriously, and most want you to see what some of the news- I urge my colleagues to reject. In par- stockbrokers do. papers are saying about S. 240. ticular, I hope this body will resist any But there are those broker-dealers, The Palm Beach Post of June 5, 1995: attempt to extend the statute of limi- investment advisers, and others who do Congress has set out to help stop market tations already found in law. If our not take their responsibilities as seri- con artists. Congress is creating legislation purpose is to reduce frivolous litigation ously as they should. So I think it is that would virtually strip the rights of de- and protect consumers from higher very important, in light of Orange frauded investors—the bill installs heat prices, any such effort must be re- County—and those were my constitu- shields around white collar crooks and bro- jected. ents who were left holding the bag be- kers or accountants who aid and abet their scams. Investors who know the legislation do There are some critics of the bill who cause there were some broker-dealers not like it. suggest that this legislation is bad for who were more than dishonest, unscru- the average American. pulous, and they had done it before and This is Jane BRYANt Quinn from Well, Mr. President, tell that to the they continued to do it. I want to make Newsweek. She is an advocate for in- innocent defendant who’s forced to set- sure that investors are protected. vestors, and she says: tle for millions of dollars simply be- When the debate opened on S. 240, we S. 240 makes it easier for corporations and cause of one crafty lawyer, tell it to heard a great deal of discussion by its stockbrokers to mislead investors. Class ac- the worker who was laid off because his proponents about companies who were tion suits against deceivers would be costly for small investors to file and incredibly dif- employer had to pay attorneys’ fees in- being sued unfairly. No one, Mr. Presi- ficult to win. stead of his salary, tell it to the con- dent, should be sued unfairly. The vast How about the Seattle Times, May sumer who has to pay higher prices for majority of businesses are decent, are 29, 1995, a month ago. They say this, everyday products simply because of good, and they do not deserve frivolous and so many colleagues have embraced the cost of frivolous litigation. lawsuits. Those frivolous lawsuits this, and some say it does not go far And most importantly, tell it to the should be stopped. I am ready to stop enough: hard-working, honest attorneys who them. They do happen. But as my watch the public image of their profes- friend from Nevada, Senator BRYAN, This legislation has proceeded almost un- sion being stomped into the ground by said, let us not use the issue of frivo- noticed because it is hideously complicated, and there may be a feeling it does not touch a few quick change artists. They are lous lawsuits to take this legislation so many lives. Wrong. Taxpayers have a vital the ones who suffer because of the far that it hurts legitimate plaintiffs, stake in these changes. Longstanding protec- abuses in our current system. They are legitimate lawyers. We do not want to tions are in jeopardy. the ones who need our help. stop decent people in their tracks, in- The Raleigh, NC, News and Observer: By voting for this legislation, we will nocent investors. We do not want them S. 240 is bad news for investors, private and take an important step forward in to be stuck or ruined. We do not want public. It would tie victims in legal knots helping reduce the cost of frivolous them, in some cases, frankly, to be fi- while immunizing white-collar crooks litigation, litigation which robs job nancially destroyed because we are against having to pay for their misdeeds. providers the opportunity to buy new writing a law that perhaps goes too far. The Philadelphia Inquirer, in June equipment for plant safety, provide Our colleague from Nevada showed us 1995: higher pay and better benefits for em- very clearly that there is no explosion A crook is a crook, and S. 240 would relax ployees, and to create new jobs. of these investor lawsuits. Indeed, it is penalties for many stock crooks. And that hurts average, hard-work- extraordinary. They have remained The St. Louis Post Dispatch, May ing, middle-class Americans—my kids very level—the same number now as we 1995: and yours. saw 20 years ago. That does not mean For their sake—in the name of jus- they are all perfect lawsuits. Some of Don’t protect securities fraud. tice—we must pass this important them are frivolous. But the fact is we The Contra Costa Times in my home measure to fix our badly broken tort have no explosion here, and that has State: system. I, tonight, urge my colleagues been clearly stated by my friend from Why would any Member of Congress vote to join me in this effort and to vote for Nevada. to protect those involved in fraud at the ex- S. 240. We need to approach this bill from pense of investors? Mr. President, I yield the floor. our own experience. I want to say that That is a reasonable question. The PRESIDING OFFICER. The Sen- this is a very complicated issue. I want The Seattle Post Intelligencer: ator from California. to say to those who may be watching The legislation is opposed by the U.S. Con- Mrs. BOXER. Thank you very much, this debate, it may be complicated, but ference of Mayors, the Government Finance Mr. President. I know it has been a it could easily affect you. It is just like Officers Association, the American Associa- very long and hard day for many of us. the S&L crisis, when the Congress tion of Retired Persons, and the North Amer- Some of us felt very strongly about Dr. acted to deregulate and walked away. ican Securities Administrators Association. Foster, and we had a tough day on that It was a complicated bill. People did Mr. SARBANES. Will the Senator one. Some of us had our bases closed, not follow it, and then they got burned. yield? and it has been awfully difficult some- So we have to be very careful. Mrs. BOXER. Yes, I am happy to. times to face disappointments like I have met the victims of Charles Mr. SARBANES. Not only is that a this. Keating. I talked about that with my diverse group from which you just But here we are, it is 9:20 and we have friend from Nevada. I met the victims cited, the U.S. Conference of Mayors, a bill before us that is very important. from the Orange County bankruptcy, the Government Finance Officers Asso- I want to speak to this bill and as I and I say to them that I do not intend ciation, the American Association of told the chairman, my friend, I will do to forget them as we go through this Retired Persons, and the North Amer- it as quickly as I can, but I wanted to bill. I want to try to make this bill bet- ican Securities Administrators Asso- cover some of the important issues ter. I will support it and perhaps offer ciation. Now, none of those groups has that we face. amendments to do that. I want to a vested interest, so to speak, in this I speak to this bill not only as a Sen- make sure investors are not shut out of conflict. ator from California but as a former the courtroom. That is not the Amer- I understand that you have the trial stockbroker, a former stockbroker will ican way. That is what motivates me. lawyers who have a vested interest and understand the sacred responsibility of I want to tell a little bit about this the corporations who have a vested in- recommending investments to people bill by way of some charts that I have. terest, and they are at one another,

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00096 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8937 and they are at sort of loggerheads Let me read a little bit: Remember, the Senator from Nevada, over this thing. One makes one set of Betty Norman was no match for the tele- who was a prosecutor, has said if S. 240 assertions and the other makes an- phone con men who emptied her pockets of had been the law of the land, the people other set of assertions. more than $40,000. who were conned by Charles Keating Everyone whom you cited there—as A plain-talking widow who runs a small would not have recovered what they did the Senator from Nevada earlier in motel in Michigan, a town of State prisons and apple orchards, Mrs. Norman, born and have now recovered. It is about 40 to 60 the debate, who listed additional orga- raised here, was taught to believe that peo- percent of their losses. nizations as well—all of whom are sort ple are essentially honest. So she trusted Mr. SARBANES. Is that an instruc- of outside the fray, they are coming salespeople who picked up details about her tion sheet they gave to their salesmen? and taking an outside, objective look life in seemingly casual telephone chats Mrs. BOXER. This is an instruction at this thing. They have reached the while pitching her pens, costume jewelry and sheet they gave to their salespeople, judgment that this legislation is defi- other trinkets. After being swindled out of exactly. This was in the period of dis- cient. We are not getting outside thousands of dollars, she lost even more to covery, when the attorneys went in to groups reaching the judgment that the people promising to recover her original in- make their case against Charles vestments. legislation, as is, is OK. The outside Keating, they were able to come up groups that say it is OK are players in Now, this is what Mrs. Norman says: with these documents which are on file the legislation. There are groups that ‘‘It makes you feel like taking your life, to at the court. We took them out. think you you’ve been skinned,’’ said Mrs. I thought it shows the people of say it is bad who are also players. But Norman, 68, who for months was too morti- these are all organizations, in effect, fied to reveal it to her grown children. ‘‘I’ve America that there are, sad to say, bad that represent the public interest, the been struggling along. People here have lent people, bad people who will try to get consumer. We have a whole list of con- me money and I’m trying to get it paid the elderly to make investments that sumer organizations as well. I think it back.’’ are no good. is very important. I think Members So, we are seeing that—whether it is As the Senator knows, the Keating really have to stop and think about selling goods to the elderly or selling case, they led people to believe that this, because we are getting the same them investments—clearly, the elderly their investments were, in fact, insured thing out of the editorial boards of the are the prime targets. by the Federal Government, and people newspapers around the country. Over- Now, I want to show something that lost everything. whelmingly, those editorial boards are I think is extraordinary. It is really Mr. D’AMATO. Might I make an in- critical of this legislation. something that ought to go to the quiry? They see it goes too far. Most write Smithsonian. It is actually one Charles Mrs. BOXER. Certainly. editorials and say there are some bad Keating gave to his salespeople when Mr. D’AMATO. I understand the hor- practices that need to be corrected, but they were trying to con innocent sen- rible and the terrible things that were this legislation goes well beyond that ior citizens. I know that every single done to these people, the unscrupulous and overreaches. Senator, from both parties, would be tactics that were used, but I ask what I appreciate the Senator yielding. I sick if they took a look at this. the relevance of insider trading is to think it is a very important point. You are now a trainee for Charles the legislative proposal that we have None of those organizations have a Keating, and they blow up this paper. before us. vested interest in this conflict, unlike Here is what it says. They want to get This legislation does not deal with many other groups that do have such someone to write a check for $20,000 to insider trading. Insider trading re- an interest. Charles Keating’s company, American mains completely banned. There are Mrs. BOXER. I thank my colleague, Continental Corp., in care of Lincoln other existing sections of the securities the ranking member of the full com- Savings & Loan. You remember Lin- law which deals with insider trading. mittee, for his statements. coln Savings & Loan, right? We do not make it any easier for in- I would say what we are doing here is Here is the training document for the sider trading to occur. just showing what the one newspaper is salespeople. To show how cruel these The fact is that this bill does not pro- quoted as saying. There is a list of people are, how awful they are, this is tect fraudulent conduct. It absolutely many, many pages, and I will at some the name they put, the fictitious name: does not. point in this debate go further into it. Edna Gert Snidlip, 1 Geriatric Way, If you knowingly advertise falsely, My friend is so right. So many con- Retiredville, California, account num- you will be in violation of this bill, the sumer groups oppose this: Consumer ber. And they are trying to get this safe harbor does not protect these false Federation of America, Consumers for sample elderly person to write a check statements nor does it apply to ITO’s Civil Justice, Consumers Union, the for $20,000. This is the way they think or to small emerging companies. Also, Fraternal Order of Police oppose this. of senior citizens. the Securities Exchange Commission Why? Because they are worried about I will show what they said on another will still have the authority to bring their retirement. They do not want piece of paper that we have blown up, any suit that it can bring today. some scam artist to get away with it. another document that shows what When we bring up the name of As this debate moves forward, we will they handed out. Charles Keating, and the terrible go more and more into the groups who At the very end, number 13, and these things that his salespeople were oppose this legislation. are all the things they have to think trained to do, we imply that this legis- I am going to ask for the next series about, ‘‘Always remember, the weak, lation will allow this kind of conduct. of charts which show who are the main meek, and ignorant, are always good This legislation will not sanction that targets of investor fraud. We talk targets.’’ kind of conduct. about the companies, and believe me, I Now, what we have to do as we look Mrs. BOXER. And I respond to my want to help the good companies. I do at S. 240 is make sure that it passes the friend that we are changing the laws not want to help the companies that Keating test. Can we get a crook like that protected the people who were defraud investors. I think we need to Charles Keating, if we weaken our se- conned by Charles Keating. look at who the targets are. curities laws too much? The fact of the matter is, Charles This is an article that appeared in What the Senator from Maryland, Keating ripped off the assets of the sav- the New York Times in May of this Senator SARBANES, is trying to do, and ings and loan, went bankrupt, and year, a month ago. ‘‘If the Hair is Gray, the Senator from Nevada is trying to these poor people who were left with Con Artists See Green, the Elderly are do, and the Senator from Alabama, and nothing had to go after other people. Prime Targets.’’ this Senator, and I hope others, we are And in this bill you make it far more When we talk about changing secu- trying to fix S. 240, so we do not allow difficult. That is why Senator SHELBY rity laws that protect investors, we these charlatans, these crooks, these is offering an amendment on this. need to step back and look at who the criminals, to target elderly people, to Mr. D’AMATO addressed the Chair. targets are, who are the ones most go after the weak, the meek, and the Mrs. BOXER. The other point—I likely to get hurt if we weaken these ignorant as targets, and get away with would like to just finish my point be- laws too much. it. cause my friend raised two issues. My

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00097 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8938 CONGRESSIONAL RECORD — SENATE June 22, 1995 colleague is asking me about insider ment as opposed to a charlatan, who and Exchange Commission. He express- trading. The Senator is exactly right. owns 10 shares of stock and now is em- ing very deep concern about the safe Mr. D’AMATO. Does the Senator ployed by lawyers. harbor provision in this legislation. So know what fraud provisions we are That is what we tried to do with this there is a very direct answer to the changing? I would like to know. If she legislation. I point this out because as Senator from New York. can point out to me a particular provi- I listen to my colleague’s statement it Second, we offered in the committee sion that will permit fraud, then I want sounds to me like this legislation will an aiding-and-abettingamendment. to strike it. You say we have changed open a door for the Charles Keatings, Earlier in the debate the distinguished the law without identifying what sec- this is just not accurate. Senator from Nevada pointed out about tion we have changed and allude to the Mrs. BOXER. If I could just reclaim half of the recovery in the Keating case practices of somebody we all agree was my time—and I will yield in a mo- that helped these elderly citizens who contemptible but his actions are not ment—I really need to say to my friend had been swindled to get at least some relevant. If you can point it out these from New York: He may not agree with of their money back, about half of the provisions I would be delighted to re- me, but to stand there and say that it money they got back was because they view them. —and my friend is a good debater—it is were able to move against aiders and The comment that we will make it unequivocal that pensioners are better abettors. possible for people to engage in fraudu- off—you should see the people who op- There is no aider and abettor provi- lent conduct and wipe away the protec- pose your bill. sion in this legislation for private liti- tions that now exist, is not, in my It seems to me— gants—which is, of course, how they opinion, square with the facts. Mr. D’AMATO. I know the people were able to proceed in order to get Mrs. BOXER. I would like to respond who oppose the bill. their money back. And later there will to my friend very clearly. I am making Mrs. BOXER. Let me read the list: be an amendment offered to provide an opening statement tonight. I told American Association of Community aider and abettor liability in private my friend, I will be supporting amend- Colleges, American Association of Re- actions. ments to make this bill better; amend- tired Persons, American Council on So there again, unless we get that ments that will not leave people prey Education, American Federation of provision in, the ability that people to people like Charles Keating. The State, County and Municipal Employ- who have been swindled in the Keating Senator wants to know specifically? ees, the Association of the Bar of the matter had to recover at least some of You can talk about the safe harbor. We City of New York, the Association of their losses would otherwise not be are going to do that. I was happy to Community College Trustees, the Asso- available to them. hear my friend from Connecticut say- ciation of Governing Boards of Univer- So I say to my friend from California, ing maybe he will have a little change sities and Colleges. It goes on. The there are two very clear examples to there. We welcome that. We are going Consumer Federation of America. Et support the proposition she was just to look at pleadings. And on insider cetera, et cetera. arguing. trading, which we are going to talk I just read before—the Senator was I thank the Senator for yielding. about, the bill is silent about it. That not on the floor—some incredible, in- Mr. DODD. May I make a comment? is my problem. credible editorials that have been writ- Mrs. BOXER. Without losing my Mr. D’AMATO. But this legislation ten across this Nation by people who right to the floor, and briefly, I yield to does not deal with insider trading. In- have no vested interest at all. my friend. sider trading provisions are as vigilant How about the Investors Rights Asso- Mr. DODD. I thank my colleague and tough as ever. If there are con- ciation of America? How about the Mu- from California. structive suggestions to make insider nicipal Treasurers Association of the Mr. President, we are dealing here trading laws more effective, to appro- United States and Canada? with apples and oranges. Talking about priately protect defrauded people, we My friend has to, I hope, leave a lit- the Keating case has the desired effect should certainly consider them. But tle bit of room for dissension here. I because people recall what happened to this bill, as it does not address insider know the bill was voted out over- innocent investors. But under the trading. whelmingly. But in the course of this Keating situation we were talking Mrs. BOXER. That is my point. debate I am going to be supporting about a failure of the bank regulatory Mr. D’AMATO. To suggest that this amendments and perhaps offering some system. Here we are talking about se- bill will somehow make it easier for in- that are going to improve this bill. Be- curities laws, two entirely different sider trading, because that is the impli- cause I do not agree with my friend. I areas of the law. cation when you cite Charles Keating do not agree with my friend that inves- What Mr. Keating and his cohorts and his misdeeds, that somehow we are tors are better protected. I will be were charged with was not violation of going to make it easier for these people happy to yield to my friend from Mary- fraud and forward-looking statements, to prey on the elderly to is not true. I land who sought to engage in a col- they lied to them about present facts. might just make one observation, this loquy. That is a vastly different situation. No bill does, makes it possible for those Mr. SARBANES. I would say to the safe harbor provisions were necessary who are truly aggrieved, not the entre- distinguished Senator from New York, in the Keating case, because he told preneurial lawyer, to bring suit against on the morning of the markup of this those people, in these absolutely ridic- violators and to receive their fair share bill in the committee, the Chairman of ulous and outrageous statements and of the settlement money. the Securities and Exchange Commis- instructions, that ‘‘your money is It allows the institutional investors sion wrote to us and stressed that the being guaranteed. You are protected.’’ and the pension managers who are at substitute committee print failed to It was not forward looking, he was risk, whose clients are at risk, to have adhere to his belief that a safe harbor lying about the present situation. the opportunity to manage a lawsuit, should never protect fraudulent state- What the safe harbor provisions deal instead of giving this control to law- ments. This is what he said: with are forward-looking statements, yers who have no concern for the de- I continue to have serious concerns about entirely different fact situations than frauded investors. These lawyers do not the safe harbor fraud exclusion as it relates existed in the Keating case. give two hoots and a holler about the to the stringent standard of proof that must I want to go into that at some length stockholders, and walk off with mil- be satisfied before a private plaintiff can pre- and I will later on, on this, but that is vail. As Chairman of the Securities and Ex- lions of dollars in settlement fees when change Commission, I cannot embrace pro- a very different fact situation than the stockholders get a penny or 2 pen- posals which allow willful fraud to receive what we are talking about here. nies per share. I suggest to the Senator the benefit of safe harbor protection. The Last, I just make this one point. that this bill helps pensioners, who scienter standard in the amendment may be One of the major provisions of S. 240 hold $4.5 trillion in securities, by giv- so high as to preclude all but the most obvi- has to deal with the requirement that ing them the authority to choose the ous frauds. we have the auditors reach out. Look, lawyers who control the suits. It gives That is not me talking. That is me this is a provision that was added by them the ability to agree to a settle- quoting the Chairman of the Securities Congressman WYDEN on the House side

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00098 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8939 who for years had 30 hearings on this ment—is to make a point that, if you Mr. DODD. S. 240 says knowingly provision which we have incorporated have a forward-looking statement in false statements. in this bill. Had that provision, by the connection with insider trades, in Mrs. BOXER. I know. But it is a way—one provision of this bill that other words, you can show—because, by much higher level. You have to know does apply to Keating—had the audi- the way, the insider trades are defi- the intent and all the rest. tors been required to seek out the nitely recorded with the SEC, fortu- All we are saying is in cases of in- fraud which does not exist on the nately; some have 40 days to do it; I sider trading—I hope my friends can go books, that is the one area, I would would like to make it 5 business days— along with this because I think it is argue, in S. 240 that might have made if you can show that there is a forward- good law; that is, ipso facto, if you can a difference in the Keating case. looking statement in connection with show that there is insider trading in What we have done with this bill is an insider trade, that you meet the connection with a forward-looking add a new requirement that auditors heightened Keating requirement and statement, that you meet the new safe must do that. That would have assisted you cannot take advantage of the safe harbor and the pleading requirements. in the prosecution of Mr. Keating. That harbor. My understanding is that if we That is all we are suggesting. is a part of this bill. But forward-look- made that change, it would be very We will be offering that amendment. ing statements and lying about present helpful to this bill. I hope we can have some support. I facts are very different, and safe harbor Mr. DODD. Will my colleague yield? think it makes a lot of sense. I want to say something about the would not have applied. Mrs. BOXER. Sure. laws that deal with insider trading. I I thank my colleague for yielding. Mr. DODD. As I see the fact situation hope my friends can help me on this be- Mrs. BOXER. I am happy to yield. here, in the Crazy Eddie case, these are cause I think we all want to go after I say it is my understanding—and we knowingly false statements that were made. The provisions of S. 240 are fine. the bad people. I know we do. are going to debate this—that it is not Mr. SARBANES. Will the Senator My point is that the insider trading as clear as the Senator made it. We are yield? going to bring that out as we move for- laws are on the books. Frankly, if you Mrs. BOXER. Yes. ward in this debate. have some new ideas on insider trad- Mr. SARBANES. I say to the Senator My friend from New York says in- ing—we do not cover cattle rustling in from Connecticut, I cannot give a de- sider trading is not in this bill; exactly this bill either. It does not mean it finitive answer to his question because my point. I would like to see us con- may not be important. there has not been a court interpreta- nect insider trading to these forward- Mrs. BOXER. May not be important? tion of the standard that you had put looking statements. And I want to ex- Mr. DODD. My point is you have very in this bill, the safe harbor. But it is plain what I am talking about. We good laws today. We wrote some laws clear that under this standard, that know insider trading. ‘‘It’s back, but on insider trading which I dealt with in Crazy Eddie was held to a standard with a new cast of characters.’’ That is our committee a few years ago. But the that was not as stringent as the stand- Business Week. That is December 1994. implication here is somehow that ard you have written into this legisla- I want to quote from a book written Crazy Eddie would have gone scot-free tion. That is clear. There is no argu- by Gene Marcial, ‘‘The Secrets of Wall if S. 240 were the law of the land. ment about that. The standard by Street’’: Mrs. BOXER. No. which Crazy Eddie was held under the Don’t kid yourselves: Very little has Mr. DODD. The Senator is not sug- existing law was a less stringent stand- changed on Wall Street. Half a dozen years gesting that, is she? ard than the standard the Senator has after the scandals of the 1980’s, when any Mrs. BOXER. No. I would like to ex- written into this bill, because his number of Street veterans were charged with plain it before my friend gets too agi- standard—he says it is knowingly made violations of securities laws and several tated. Let me explain it to my friend. with the expectation, purpose, and ac- high-profile insiders were marched off to jail, What I am suggesting—and I tried to insider trading and market manipulation—in tual intent of misleading investors, explain it to my friends in the com- and, of course, the Chairman of the cases 100 percent illegal—are still the most mittee, but no one was interested in zealously desired play in the financial world. SEC indicated he was fearful that this It’s almost the only way to make the truly talking about it. I am trying to explain would allow willful fraud and still big bucks. All the market savvy in the world it now. The Senator is right. He made enjoy the benefit of safe harbor protec- will come up short if you’re playing against clearly false statements. But he might tion. other investors who have market savvy plus get away with it under the new safe The other thing, I say to my friend, inside information: Sorry, but that is the harbor because it is a more difficult because I wanted to make this point way the game is played. standard to meet. What we are saying earlier, is that I do think that the in- How does that fit into this bill? What is that, if you can show, going into the sider trading issue is more related to this bill does not address is forward- case, unequivocally that in connection this bill by far than cattle rustling, if looking statements made in combina- and conjunction with a false state- I may state that to my colleague, be- tion with insider trading. ment, a forward-looking statement, cause, as I understand it, his effort was Let me show you what I mean. Here there is insider trading, you do not to counter my good friend from Cali- is a forward-looking statement. Crazy have to meet the requirements of the fornia to say, ‘‘Well, you know, what Eddie. Some of you may remember a new safe harbor, and you do not have has insider trading got to do with this business run by a crook. Here comes to meet the pleadings requirement be- bill? What does cattle rustling have to the forward-looking statement. cause what we are really saying is here do with this bill?’’ I think there is a We are confident that our market penetra- ipso facto, if you are unloading a stock difference between insider trading as it tion can grow appreciably . . . the day after you make a phony state- relates to this kind of legislation and Glowing evidence of consumer acceptance ment, that should meet the heightened cattle rustling. of the Crazy Eddie ‘‘Name’’ augurs well for requirement. Mr. DODD. I think my colleague continuing growth outside of New York . . . Mr. DODD. Is there anything that from Maryland fully understood the All during the time of this forward- you believe—we now know in this case point I was making on this. Yes, there looking statement, Crazy Eddie and his there were knowingly false statements is a different standard we are applying friends are unloading the stock, and that were made. Is there anything in S. here. But the implication of using they are unloading it at a high point. 240 that would in any way make it pos- Crazy Eddie as an example I think is And after awhile, just a little bit later, sible for a Crazy Eddie to have gone wrong. you see this forward-looking statement scot-free? But, second, what we are trying to do was fraudulent and the top officer flees Mrs. BOXER. Yes. here is to minimize the kind of frivo- the country with millions of dollars, Mr. DODD. Why? lous litigation where some people have and the CEO is convicted of fraud. Mrs. BOXER. Because the safe harbor a position that there should be no safe So my point, I say to my friends—and is quite different the way it is written harbor, that we should do away with what I tried to do in the committee, in S. 240, and it would be much more safe harbor altogether. I disagree with but we could not get agreement at that difficult for investors to move against that. I think you can make a case for time, I am hoping we can get an agree- this particular company. that.

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00099 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8940 CONGRESSIONAL RECORD — SENATE June 22, 1995 But the idea of arguing, on the one give and take but I am bringing it back I was in the House when we started hand, that we ought to have a safe har- to real people. And my friends can talk the whole mess with the S&L’s. Every- bor, and, second, making it so trans- all they want about safe harbor and all one thought: We can handle it; we parent that anyone can bring a lawsuit that. Let me tell you what I am talk- know what is best; we will regulate based on any kind of forward-looking ing about. them. Great. We do not need the agen- statement is going against the trend of I used to be a stockbroker, I say to cy to tell us how to do it. We are going the balance we are trying to strike my friend, and I took that job very se- to legislate. here where you have companies with- riously. And I had a lot of widows and I say to my friend from Connecticut, they came into me and, God, I worried. holding information, pulling back, whom I admire—and we are friends, I am not concerned about the good peo- fearful that anything they say, no mat- and we agree on 98 percent of the ple that my friend from Connecticut ter how well intended, becomes the things around here—on this particular talks about. I want to help them. I automatic subject of a litigation when case, I hope he can get some more pa- want to protect them from frivolous stocks fluctuate. tience because I am a little concerned So we are trying to strike that bal- lawsuits. I wish to also, however, say while I am doing that I do not want to about the direction, and it is not just ance, if I might just say to my col- me. It is list after list of consumer league from Maryland. hurt the average investor, and they can tell you from today until tomorrow it groups and senior groups and securities Mr. SARBANES. If I could bring my administrators. They have no ax to dear friend back into the parameters, has nothing to do with the Keating case. Fine, they can say it all they grind. They are scared for the inves- no one that I know of out here has ar- tors. gued that there should be no safe har- want. But I will prove it as we go We do not want to go too far. We bor whatever, which is the statement through this debate. But I wish to take you back to what happened to real peo- should find that balance. We should the Senator just made. ple. This is just one case. There are crack down on frivolous lawsuits, but Mr. DODD. I said some may. I do not many. I will show you another article let us be careful. know. Mr. SARBANES. It is a red herring. behind here. The point I am making with this, as ‘‘Regulatory Alarms Ring on Wall It is a diversionary thing. my friend from Maryland pointed out, Street’’ New York Times, Friday June Mr. DODD. Crazy Eddie is a red her- there is a tougher standard now. That 9, 1995: ring. is the whole point of the bill. Let us Mr. SARBANES. We are trying to get With the frenzy of merger deals and take- not play games with it. It is a tougher over battles these days, it seems like old standard to meet, on purpose. The Sen- at what is a proper approach on the times on Wall Street in more ways than one. safe harbor issue. Now, it is a com- Securities regulators say they are opening ator himself has said, others have said plicated issue. The Senator himself investigations into insider trading at a rate we are worried about these suits said that earlier in the day, a very not seen since the mid 1980’s, the era in against good, decent people and we are complicated issue. But the potential which Ivan Boesky, who went to jail for raising the bar; we are making it for harm and damage, if you do not get trading on inside information, became a tougher. it right, is enormous. household name. What I am suggesting is if in connec- Mr. DODD. On both sides. The point I am trying to make, my tion with a forward-looking statement Mr. SARBANES. Is enormous. friends, yes, I want to have a safe har- there is insider trading and it is clear Mr. DODD. Will my colleague agree, bor. I voted for the safe harbor that and convincing and everyone knows it on both sides? was in the Dodd-Domenici bill. And my because they have to file it, then that Mr. SARBANES. Not quite. Because friend from Connecticut said, well, we should meet the standard right away, until 1979 the SEC would not even per- have moved past that. We can do bet- and the case moves over. mit forward-looking statements and ter. I think what was in the Dodd-Domen- That is all I am saying. I hope I can yet our markets did very well. They work with my friend from Connecticut. grew. People prospered. Investments ici bill made sense to give this to the SEC and let them develop a safe har- I think when he looks at it he is going were made. The SEC would not even to think this is good. He does not want allow a forward-looking statement be- bor. They know more than any of us. Mr. DODD. Will my colleague yield to protect people who make these cause they were so worried about what on this one? statements; they are false; they dump might happen to the investors. Mrs. BOXER. Yes. their stock. Then people came in and made the Mr. DODD. The Senator is absolutely You know what happened? All the argument, well, you know, this is dif- correct. I asked a year and a half ago. people in here that bought it on the ficult; we ought to be able to make A year and a half ago I said to the SEC, basis of this lost so much. And I think some projection. And they began to try in response to the letter by the chair- there are ways we can work together to to accommodate that, which is what man, a year and a half ago I said, strengthen this bill so that when we they have been trying to do. So we ‘‘Look, let’s let you do it. Would you have this connection—by the way, it have been trying to make some get some answers back.’’ happens many, many times with this changes. But you have to get it right. Month after month we inquired: insider trading, with these false state- And when the chairman of the SEC What are you going to do on this? We ments, and the public gets it in the comes in with a letter when he came to would like to know. A year and a half neck. And now they have to meet a the committee, it ought to give you went by and the SEC basically, because higher standard. pause. You ought to pause. You ought they wanted no change whatsoever, re- to stop and think about this thing. fused to provide any response. I say And my friend from New York, I do We ought not to have to enact some- that to my colleague in frustration. We not agree with him on this business thing, then have devastation happen to have had this happen with other agen- about choosing the attorney. Now, in investors and then come back and try cies. They were not interested in doing this bill we say the richest person, the to get it right, I say to my friend. this at all, despite their claims to the person with the most invested gets to Mr. DODD. If my colleague will yield contrary. That is why we put the provi- pick the attorney. on that, we are already seeing—the sion in here. Frankly, I would have pre- Mr. D’AMATO. If I might I ask, does reason the bill exists at all is because ferred that they would have done it. the Senator mean to tell me that, for of the kind of devastation that can But, frankly, after a year and a half, example, the pension manager of the occur here. And so we are trying to the patience of a Senator runs out city of New York, a $20-some-odd bil- strike that balance here. when an agency refuses to respond. lion fund, should not be given greater Mr. SARBANES. That is right. And Mrs. BOXER. I say to my friend, I latitude given the magnitude of the in- we have to strike the balance in the know of his good faith and his good vestment they manage than a profes- right place. That is all I am saying to will and his good patience, but you sional plaintiff who buys 10 shares of my distinguished friend. know what? I think it is dangerous: stock and who is retained basically by Mrs. BOXER. If I may reclaim my Well, we tried and they did not do it, so a lawyer who rushes to file a suit? You time at this point, I have enjoyed the we are going to write this our way. would not want to give to the pension

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00100 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8941 managers the ability to have a greater balance that my friend from Con- their suits. We want to address more say in who is selected when half of the necticut talked about. investors’ concerns, not fewer. That is dollars lost are invested by pension I think this bill, in its current form, what we are attempting to do with this funds? does not do that. Now, I am not the legislation. I would say I would rather have that only one to say that. Respected people Fraudulent conduct is not protected any time. So when you say who is in this Senate have said it tonight, by the safe harbor section in this bill. going to pick the lawyer, I would rath- people like DICK BRYAN, people like This bill specifically excludes from pro- er have people who have a real stake, PAUL SARBANES. These are not people tection any statements made with the who really invested billions of dollars, who do not know their facts. These are expectation, purpose, and intent of who really have something at risk, fair people. misleading investors. If you are trying pick the lawyer. Than entrepenurial We have a list of people who look to mislead your investors you do not lawyers who simply watch for the after consumers, who look after inves- get protection. It is designed to protect stock to move 5 points one way or the tors who are begging us to fix this bill. honest companies from abusive suits. other way. The Senator feels one way, I want to make sure that when this There will be amendments to at- I feel the public needs to be protected, process ends, we have adopted some tempt to improve on the language of and the way to protect the stock- amendment, we have made sure that the bill. We will have exhaustive de- holders, the little people is to give we do not have unintended con- bate on all the issues on which my col- them a say. They do not get a say now. sequences. We certainly had them in leagues have concern and we will have They absolutely do not. What is going the S&L debacle. Not one of us ever votes on those amendments. on now is a travesty. dreamed we would have the problems I just do not think it is fair to bring Mrs. BOXER. Well, I assume that was we had when we deregulated. up the cases of Charles Keating or a question, and so I will attempt to an- Please, please view my comments to- Crazy Eddie in which criminal viola- swer it this way. I say to my friend, we night in the spirit in which they are of- tions were committed and which have have a disagreement, and so does the fered. I want to be able to support a absolutely no relation to the provisions SEC. They do not agree. They want to bill that does the right thing, but let in this legislation. One could easily as- work on this provision. Just to say be- us heed what Arthur Levitt and the sume when they hear the names of cause someone has the most money, SEC is saying in regard to the safe har- these outstandingly monstrous cases that is the end of it, they get to pick bor, in regard to joint and several, in that are indelibly imprinted on so the lawyer, I think is a problem. regard to the statute of limitations, in many people that somehow we are If you look at the Keating case, by regard to the provisions regarding se- going to open the door to these kinds the way, it is very interesting because lecting an attorney. These are com- of actions. That is just not fair, and it in some of these cases, as the SEC plicated matters, but the bottom line is not an accurate representation of pointed out in their recent communica- for me is making sure we protect the what we are attempting to do here. Al- tion, it may well be that the largest investors and that we protect the good though I certainly believe that reason- stockholder is somehow in cahoots business people, and if we do the wrong able people can disagree, as is their with the fraudulent individual. thing, we could be very, very sorry. right, but I do not believe these analo- Now, I would rather give— So let us proceed with caution, with gies are correct or fair, with respect to Mr. D’AMATO. Are you really sug- comity. I hope we can improve this this legislation. gesting— bill, and I look forward to working Finally, I will conclude by saying Mrs. BOXER. May I finish my point, with my colleagues on the amendments that I did not sponsor this legislation, I say to my friend? I so admire my that will be offered. because I thought that the initial pro- friend’s tenacity, but let me finish my I yield the floor. point and then I will be so happy to Mr. D’AMATO addressed the Chair. visions of the legislation would have yield. Two people from Brooklyn, and I The PRESIDING OFFICER. The Sen- precluded and made it impossible for know it is hard. Two people from ator from New York. many people who are truly wronged to Brooklyn, I know it is hard. I want to Mr. D’AMATO. Mr. President, I will bring a suit. It was only after we were yield to my friend. be brief considering the late hour. able to craft a compromise and some of Mr. D’AMATO. You do not have to. I cannot let go unchallenged the the most onerous provisions, both of Mrs. BOXER. I would like to remem- statement that would imply that some- the original legislation and of the ber my point, which is that under the how this legislation will open up the draft, were dropped, did I sponsor this current law, the judge gets to make the door for people like Charles Keating to bill. decision based on who is the most com- do the kinds of things that he did. This For example, along the way, there petent lawyer. I would assume judges legislation does not deal with the was thought that an intentional are not dumb. They know if there is a criminal law or criminal conduct. misstatement would be protected in phony plaintiff. I think that is another This bill does deal with the civil suits the safe harbor if a person did not rely area on which we can perhaps com- which are being brought and stating upon it, which meant that somebody promise that the SEC has found prob- that there has to be a showing of intent could actually deliberately distort the lems with. to cause harm when making forward facts and could not be sued unless the My colleagues will be glad to know statements. These forward statements person who brought the suit actually that I am reaching the end of my re- are defined in a very limited fashion, read that statement. marks tonight. I know my chairman is they include only projections. In order I could not support that, and I in- absolutely thrilled with that, but I for a statement to be a projection, the sisted that provision in the draft be want to point out that I was yielding company must state that it is a projec- dropped. We now have a provision to many of my colleagues throughout tion and warn investors that these pro- which says only that there has to be an this time. I wanted to do that. I think jections may not come true. intentional misstatement. we have some legitimate differences. If we want companies to be able to It is in that spirit that we crafted an Look, I only have one goal here. This make these projections, and most peo- agreement. I might point to the House is a tough issue for me. I represent so ple agree that it is in the consumers in- bill which has loser pays provision. We many wonderful companies who are terest that they make them, then you do not have a provision like that, but, complaining about this. I want to re- have to give them this protection yes, we do have a provision that says solve this in the right way. I represent against frivolous suits. The question of the courts shall ascertain, upon a dis- so many investors that got bilked. who should represent the people, is not, missal of a suit, whether or not there Why do I represent all these people? in my opinion, a question of rich inves- has been an abuse, because too many of Because I come from the largest State. tors trampling the concerns of small my colleagues in the law have brought I have 32 million people. I have thou- investors. We are trying to give pen- these suits because it is an easy thing sands and thousands of investors, thou- sion funds which operate on behalf of to get a company to settle. And that is sands of companies, and I want to be millions of people, many of whom are not what the judicial system should be able to support a bill that strikes the in the public sector, more control over about, to wring out settlements from

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00101 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8942 CONGRESSIONAL RECORD — SENATE June 22, 1995 people because they have wealth or be- Mr. SARBANES. Mr. President, I will As the very able Senator from Cali- cause they cannot stand the litigation be very quick. I think we have had a fornia pointed out, that is the quest that might hurt them for 2 or 3 years; good opening debate. I very strongly that she is on now, as we come to ad- litigation that is meritless, or will commend to my colleagues the very dress this legislation. keep them from doing business or ob- thoughtful and perceptive statements So, again, I strongly commend to my taining the necessary financing. That that were made by Senator BRYAN and colleagues the opening statement of is simply wrong. So, yes, we have Senator BOXER. I hope Members will Senator BRYAN and the opening state- sought to change that. review those very carefully. ment of Senator BOXER. I say to them Do we seek to change that to dis- We have to focus this debate on what that this is a complicated issue. They advantage people? No, but to make the the real issues are that divide us. There need to consider it very carefully, be- system operate on the basis that it are provisions in this legislation—I was cause we will have to live with the con- should, to protect the truly aggrieved, listening to the chairman of the com- sequences of this thing. As one com- to give them the right to sue, and to mittee talking just now, and he men- mentator observed, ‘‘The pendulum had give the people who really lose the tioned a number of provisions that we swung too far toward the lawyers, and ability to decide who is going to rep- are not contesting. We accept those now it is swinging too far the other resent them. A lawyer who finds his and think they are designed to deal way. Unfortunately, some major inves- plaintiffs by pressing a button on a with some abuses that have been tak- tor frauds may have to take place be- computer and calling up his list of in- ing place. But we do want to get the fore it again moves back toward the vestors with 10 shares in any particular focus on other provisions where we center.’’ company should not speak for the class think a proper balance has not been I want to get it to the center before of defrauded investors. That is wrong struck, where we think investors will we send it out of here, so the major in- and is making a mockery of the sys- be jeopardized, and where we think im- vestor frauds will never happen. I do tem. That is why people are angry. The munity is being provided to potential not want a situation where we send it business community is absolutely right wrongdoers that ought not to be pro- out of here, then the major investor when they say we need fundamental vided to them. frauds happen, and everybody comes change. This is a very complicated question, back and says, oh, my goodness, we As I have said, I initially had great there is no doubt about it. My good overreached. Let us correct it now and reservations about this legislation. My friend from New York, the chairman avoid it. Get the pendulum, as this friend Senator DODD knows that, as now, got very excited about the ap- says, in the center to begin with. does Senator DOMENICI. I studied this pointment of the lead plaintiff in a I thank the Chair. legislation and became convinced that class action. Well, let me read you Mr. DODD. Mr. President, very brief- many of the original reforms were nec- what the SEC said about that, and it is ly, I do not debate what my colleague essary, while others, I felt went too far. not all black and white, I admit that. has said. Some of us have been at this I mention this to explain why I have Here is what they said: for 4 or 5 years trying to strike a bal- not been a cosponsor—because I wanted One provision of section 102 requires a ance. to achieve a balance. When you have court generally to appoint as lead plaintiff As I pointed out earlier today, the balance, there are parties on both sides the class member that has the largest finan- first couple of years, any suggestion cial interest in the case. While this approach who are not happy because, unfortu- has merit, it may create additional litiga- about doing anything in this area was nately, they all want their side to be tion concerning the qualification of the lead greeted, in many quarters, with total more balanced. Some want loser pays. plaintiff, particularly when the class mem- hostility. A threshold has been reached Some want a larger safe harbor; they ber with the greatest financial interest in in the last year or so now, and the peo- would like companies to have no re- the litigation has ties to management or in- ple are finally agreeing that the sponsibility and no ability for anyone terests that may be different from other present system is not working well. to sue them. Well, that is wrong. Of class members. And it has taken some time to get peo- course on the other side, some of the Now, I am not pretending this is sim- ple to agree to that particular position. lawyers want to be able to bring suit ple. There is the problem. The SEC has As my colleague from Maryland on anything that moves and some stated this, and we need to think about knows far better than I, as you try and things that do not. They do not want it and address it. We may be making a put together a legislative package to have accountability. The judges do mistake. I am sort of puzzled a bit by here, it is in a complicated area where, not want to have to finding. They are the absolute certainty of the people on unfortunately, only a relatively small overburdened and overworked, some- the other side of this. I think this is number of people get involved in issues times they have a year or 2-year back- complicated. I am not absolutely cer- like this. The galleries are empty. log of cases. Here is Congress telling tain that the position I am advocating Not for lack of people who are prob- them they have made those findings, anticipates all of the problems. But, ably in the building covering these that they are in the public interest and clearly, outside observers, in many re- matters, but this does not help itself to the public has to be served. We are suf- spects, are far more knowledgeable the 30-second sound bite, to the 30-sec- fering in this country as a result of than we are—the State securities regu- ond campaign ad or a bumper sticker. these frivolous lawsuits. lators, the chairman of the SEC, and These are highly complicated areas. So one way for us to find the balance the finance officer people have all come Striking the balance is truly my in- is ask the Judges only to look at cases in here expressing a lot of misgivings. terest here. In the years I have spent as which are dismissed, to find out wheth- One group said, ‘‘We think you need chairman of the Security Sub- er or not sanctions should be brought. these amendments. If you get these committee and as ranking minority We hope that will help deter frivolous amendments in, we will take a dif- member, I have authored many pieces suits. Maybe after one or two sanctions ferent view of the bill. Without these of legislation in this area, and forever are imposed we will have sent a mes- amendments, we oppose the bill.’’ keeping in mind confidence. sage to those who are abusing the sys- They, in effect, are saying they recog- Investor confidence. Confidence in tem. nize that there are other aspects or fea- our markets is what has made our mar- Mr. President, I hope that we can tures of the bill that are acceptable or kets so attractive to people. Why peo- proceed on this tomorrow. As I under- desirable. ple, as the Senator from Maryland stand it, Senator SHELBY will lay down As I said earlier, parts of this bill are pointed out, why people come from the first amendment. We will come desirable; parts of it are not desirable. around the world. It is not just because into session at 9 o’clock. We will move We need to address, in my judgment, the dollars are here, but the confidence to this bill at 9:30, when Senator SHEL- the undesirable parts. If we can do they have in our markets. BY will offer his amendment dealing that, I think we can end up strength- I think there has been an erosion in with proportionate liability, and I hope ening the bill, changing its thrust, that confidence because of some of the to hear debate from both sides. We will achieving a better balance, and elimi- activities we have seen. Trying to vote at 10:55. nating, hopefully, the differences be- strike that balance is truly the inter- If there is nothing further—— tween us. est of this Senator, the Senator from

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00102 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8943 New York, the Senator from New Mex- NOTICE OF THE TERMINATION OF EC–1044. A communication from the Sec- ico, and others. THE SUSPENSION OF LICENSES retary of Energy, transmitting, pursuant to There will be some amendments. FOR THE EXPORT OF CRYP- law, the report on the Electric and Hybrid Vehicles program for fiscal year 1994; to the Some of them, as my colleagues know, TOGRAPHIC ITEMS TO THE PEO- Committee on Commerce, Science, and I support. The statute of limitations, I PLE’S REPUBLIC OF CHINA— Transportation. support that. My colleague from New MESSAGE FROM THE PRESI- EC–1045. A communication from the Ad- York wants that. I wanted to keep that DENT—PM 57 ministrator of the Federal Aviation Admin- in the bill. The PRESIDING OFFICER laid be- istration, transmitting, pursuant to law, the We will be together on a few of these report on developing and certifying the traf- fore the Senate the following message fic alert and collision avoidance system for things. When we deal with the legisla- from the President of the United the period January 1 through March 31, 1995; tive process, it is darn near impossible States; which was referred to the Com- to the Committee on Commerce, Science, to strike that perfect balance all the mittee on Foreign Relations: and Transportation. time. EC–1046. A communication from General To the Congress of the United States: The Senator from Maryland is cor- Counsel of the Department of Commerce, rect. Anyone who sits here and says Pursuant to the authority vested in transmitting, a draft of proposed legislation with absolute certainty they know me by section 902(b)(2) of the Foreign entitled ‘‘The Coastal Zone Management Act Reauthorization Amendments of 1995″; to the what will happen as a result of legisla- Relations Authorization Act, Fiscal Years 1990 and 1991 (Public Law 101–246) Committee on Commerce, Science, and tion they pass, has not been here very Transportation. long, or never been in the legislative (‘‘the Act’’), and as President of the United States, I hereby report to the EC–1047. A communication from the Chair- process. We know the system is not man of the Federal Trade Commission, working well. We are trying to correct Congress that it is in the national in- transmitting, pursuant to law, the report it. terest of the United States to termi- relative to the International Energy Pro- nate the suspension under subsection gram; to the Committee on Energy and Nat- Obviously, how the markets respond, 902(a)(3) of the Act with respect to the ural Resources. what happens down the road in many issuance of licenses for the export to EC–1048. A communication from the Chair- ways, we will have to deal with as it the People’s Republic of China of U.S. man of the Federal Energy Regulatory Com- occurs. Maybe we have not gone far Munitions List articles, insofar as such mission, transmitting, pursuant to law, the enough. Maybe we have gone far in annual report for fiscal year 1994; to the suspension pertains to export license some areas. Committee on Energy and Natural Re- requests for cryptographic items cov- No one here claims perfection. Clear- sources. ered by Category XIII on the U.S. Mu- EC–1049. A communication from the ly, we need to address a present situa- nitions List. Secretary of the Interior, transmitting, tion that is not working. My hope and License requirements remain in place pursuant to law, the report relative to the desire over the next 2 or 3 days, we for these exports and require review National Natural Landmarks; to the Com- have the four, five, six amendments and approval on a case-by-case basis. mittee on Energy and Natural Resources. that I think we will have, that possibly EC–1050. A communication from the The Department of State, in consulta- Secretary of the Interior, transmitting, we can address some of these issues, tion with the Department of Defense modify the bill if that is necessary, in pursuant to law, the report on the operation and other relevant agencies, will re- of the Colorado River; to the Committee on a few areas to accommodate some of view each request, including each pro- Energy and Natural Resources. these interests, but move the process posed use and end-user, and will ap- EC–1051. A communication from the along so we have a chance to address prove only those requests determined Secretary of the Interior, transmitting, the underlying concerns people have to be consistent with U.S. foreign pol- pursuant to law, the report on the con- raised about the present situation. tinuing studies of the quality of water in icy and national security. the Colorado River; to the Committee on I thank my colleague for listening. I WILLIAM J. CLINTON. yield the floor. Energy and Natural Resources. THE WHITE HOUSE, June 22, 1995. EC–1052. A communication from the Deputy Associate Director for Compliance, f f Royalty Management Program, Minerals EXECUTIVE AND OTHER Management Service, Department of the COMMUNICATIONS Interior, transmitting, pursuant to law, a MORNING BUSINESS report relative to the refunds of offshore Mr. D’AMATO. Mr. President, I ask The following communications were lease revenues where a recoupment or refund unanimous consent that there be a pe- laid before the Senate, together with is appropriate; to the Committee on Energy riod for the transaction of morning accompanying papers, reports, and doc- and Natural Resources. EC–1053. A communication from the business with Senators permitted to uments, which were referred as indi- cated: Deputy Associate Director for Compliance, speak for up to 5 minutes each. Royalty Management Program, Minerals The PRESIDING OFFICER. Without EC–1039. A communication from the Chair- Management Service, Department of the objection, it is so ordered. man of the Interstate Commerce Commis- Interior, transmitting, pursuant to law, a sion, transmitting, pursuant to law, the an- report relative to the refunds of offshore nual report for fiscal year 1994; to the Com- lease revenues where a recoupment or re- f mittee on Commerce, Science, and Transpor- fund is appropriate; to the Committee on tation. Energy and Natural Resources. MESSAGES FROM THE PRESIDENT EC–1040. A communication from the Chair- EC–1054. A communication from the man of the Interstate Commerce Commis- Deputy Associate Director for Compliance, Messages from the President of the sion, transmitting, pursuant to law, a report Royalty Management Program, Minerals United States were communicated to relative to transportation rates; to the Com- Management Service, Department of the In- the Senate by one of his secretaries. mittee on Commerce, Science, and Transpor- terior, transmitting, pursuant to law, a re- tation. port relative to the refunds of offshore lease EC–1041. A communication from the Sec- revenues where a recoupment or refund is f retary of Commerce, transmitting, pursuant appropriate; to the Committee on Energy to law, the report on the International Com- and Natural Resources. EXECUTIVE MESSAGES REFERRED mission for the Conservation of Atlantic EC–1055. A communication from the Tunas; to the Committee on Commerce, Deputy Associate Director for Compliance, As in executive session the Presiding Science, and Transportation. Royalty Management Program, Minerals Officer laid before the Senate a mes- EC–1042. A communication from the Sec- Management Service, Department of the sage from the President of the United retary of Transportation, transmitting, pur- Interior, transmitting, pursuant to law, a States submitting a nomination which suant to law, the report relative to eligible report relative to the refunds of offshore was referred to the Committee on the export vessels; to the Committee on Com- lease revenues where a recoupment or refund merce, Science, and Transportation. Judiciary and a withdrawal. is appropriate; to the Committee on Energy EC–1043. A communication from the Under and Natural Resources. (The nomination and withdrawal re- Secretary for Oceans and Atmosphere, De- EC–1056. A communication from the ceived today are printed at the end of partment of Commerce, transmitting, pursu- Secretary of Agriculture, transmitting, pur- the Senate proceedings.) ant to law, the report on the National Oce- suant to law, the report on the Youth anic and Atmospheric Administration’s Chesapeake Bay Office; to the Committee on Commerce, Science, and Transportation.

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00103 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8944 CONGRESSIONAL RECORD — SENATE June 22, 1995 Conservation Corps for fiscal year 1994; to suant to law, the report of the study of the transmitting, pursuant to law, the report of the Committee on Energy and Natural feasibility of constructing a four-lane high- efforts made by the United Nations and spe- Resources. way in the vicinity of Pensacola, FL; to the cialized agencies to employ Americans; to EC–1057. A communication from the Acting Committee on Environment and Public the Committee on Foreign Relations. Assistant Secretary of the Interior [Terri- Works. EC–1086. A communication from the Assist- torial and International Affairs], transmit- EC–1072. A communication from the Ad- ant Secretary of State [Legislative Affairs], ting, a draft of proposed legislation to ministrator of the General Services Adminis- transmitting, pursuant to law, the report of provide for the territories, and for other tration, transmitting, pursuant to law, the a Presidential Determination relative to an purposes; to the Committee on Energy and report of the informational copies of 12 lease assistance program for New Independent Natural Resources. prospectuses for fiscal year 1996; to the Com- States of the Former Soviet Union; to the EC–1058. A communication from the mittee on Environment and Public Works. Committee on Foreign Relations. Assistant Secretary of the Interior [Fish EC–1073. A communication from the Chair- EC–1087. A communication from the Assist- and Wildlife and Parks], transmitting, a man of the Nuclear Regulatory Commission, ant Secretary of State [Legislative Affairs], draft of proposed legislation to improve the transmitting, pursuant to law, the report on transmitting, pursuant to law, the report of administration of the national park system the Nondisclosure of Safeguards Information a Presidential Determination relative to Af- by providing general leasing authority for for the period January 1 through March 31, rican peacekeeping efforts in Liberia; to the the National Park Service, and for other 1995; to the Committee on Environment and Committee on Foreign Relations. purposes; to the Committee on Energy and Public Works. EC–1088. A communication from the Assist- Natural Resources. EC–1074. A communication from the Assist- ant Legal Adviser for Treaty Affairs, Depart- EC–1059. A communication from the ant Administrator of the Environmental ment of State, transmitting, pursuant to Secretary of Transportation, transmitting, Protection Agency, transmitting, pursuant law, the text of international agreements pursuant to law, the report on the alter- to law, the report under the Toxic Sub- other than treaties, and background state- native transportation modes feasibility stances Control Act for fiscal years 1992 and ments; to the Committee on Foreign Rela- study; to the Committee on Energy and 1993; to the Committee on Environment and tions. Natural Resources. Public Works. EC–1089. A communication from the Assist- EC–1060. A communication from the Sec- EC–1075. A communication from the Ad- ant Legal Adviser for Treaty Affairs, Depart- retary of Energy, transmitting, pursuant to ministrator of the Environmental Protection ment of State, transmitting, pursuant to Agency, transmitting, a draft of proposed law, the report relative to clean coal law, the text of international agreements legislation to authorize funding for waste- technologies; to the Committee on Energy other than treaties, and background state- water infrastructure projects for hardship and Natural Resources. ments; to the Committee on Foreign Rela- EC–1061. A communication from the Sec- cities; to the Committee on Environment tions. retary of Energy, transmitting, pursuant to and Public Works. EC–1090. A communication from the Sec- law, the report on the Coke Oven Emission EC–1076. A communication from the Ad- retary of Agriculture, transmitting, pursu- Control Program for fiscal year 1994; to the ministrator of the Environmental Protection ant to law, the report under the Inspector Committee on Energy and Natural Re- Agency, transmitting, a draft of proposed General’s Act for the period October 1, 1994 sources. legislation to authorize funding for improve- through March 31, 1995; to the Committee on EC–1062. A communication from the Sec- ments to the New Orleans, LA, wastewater Governmental Affairs. retary of Energy, transmitting, a draft of collection system; to the Committee on En- EC–1091. A communication from the Comp- proposed legislation entitled ‘‘The Federal vironment and Public Works. troller General of the United States, trans- Power Administration Transfer Act’’; to the EC–1077. A communication from the Ad- mitting, pursuant to law, the report and rec- Committee on Energy and Natural Re- ministrator of the Environmental Protection ommendation on a claim; to the Committee sources. Agency, transmitting, a draft of proposed EC–1063. A communication from the Sec- legislation to authorize funding for infra- on the Judiciary. EC–1092. A communication from the Sec- retary of Energy, transmitting, pursuant to structure improvements in Bristol County, retary of Labor, transmitting, pursuant to law, the report on the status of Exxon and MA; to the Committee on Environment and law, the report under the Freedom of Infor- Stripper Well oil overcharge funds as of De- Public Works. mation Act for calendar year 1994; to the cember 31, 1994; to the Committee on Energy EC–1078. A communication from the Assist- Committee on the Judiciary. and Natural Resources. ant Secretary of State (Legislative Affairs), EC–1064. A communication from the Sec- transmitting, pursuant to law, the report of EC–1093. A communication from the Direc- retary of Energy, transmitting, a draft of a Presidential Determination relative to the tor of the Office of Management and Budget, proposed legislation to amend the National Republic of Romania; to the Committee on Executive Office of the President, transmit- Energy Conservation Policy Act; to the Com- Finance. ting, pursuant to law, the report under the mittee on Energy and Natural Resources. EC–1079. A communication from the Sec- Freedom of Information Act for calendar EC–1065. A communication from the Sec- retary of Health and Human Services, trans- year 1994; to the Committee on the Judici- retary of Energy, transmitting, pursuant to mitting, pursuant to law, the report of the ary. law, the report on Federal Government en- initial estimate of the applicable percentage EC–1094. A communication from the Direc- ergy management and conservation pro- increase in inpatient hospital payment rates tor of the U.S. Arms Control and Disar- grams for fiscal year 1993; to the Committee for fiscal year 1996; to the Committee on Fi- mament Agency, transmitting, a draft of on Energy and Natural Resources. nance. proposed legislation entitled ‘‘The Chemical EC–1066. A communication from the Sec- EC–1080. A communication from the Acting Weapons Convention Implementation Act of retary of Energy, transmitting, pursuant to Executive Director of the Physician Pay- 1995″; to the Committee on the Judiciary. law, the report on the Strategic Petroleum ment Review Commission, transmitting, pur- EC–1095. A communication from the Post- Reserve for the period January 1 through suant to law, the report entitled ‘‘Fee Up- master General, Chief Executive Officer, U.S. March 31, 1995; to the Committee on Energy date and Medicare Volume Performance Postal Service, transmitting, pursuant to and Natural Resources. Standards for 1996’’; to the Committee on Fi- law, the report under the Freedom of Infor- EC–1067. A communication from the Sec- nance. mation Act for calendar year 1994; to the retary of Energy, transmitting, pursuant to EC–1081. A communication from the Sec- Committee on the Judiciary. law, the report entitled ‘‘The Study of Ex- retary of Health and Human Services, trans- EC–1096. A communication from the Chair- port Promotion Practices’’; to the Com- mitting, pursuant to law, the report of the man of the Board of Directors of the Ten- mittee on Energy and Natural Resources. physician fee schedule update for calendar nessee Valley Authority, transmitting, pur- EC–1068. A communication from the Sec- year 1996; to the Committee on Finance. suant to law, the report under the Freedom retary of Energy, transmitting, pursuant to EC–1082. A communication from the U.S. of Information Act for calendar year 1994; to law, the report of the ‘‘Program Update 1994’’ Trade Representative, transmitting, pursu- the Committee on the Judiciary. for the Clean Coal Technology Demonstra- ant to law, the report on eliminating or re- EC–1097. A communication from the Direc- tion Program; to the Committee on Energy ducing foreign unfair trade practices; to the tor of the National Legislative Commission and Natural Resources. Committee on Finance. of the American Legion, transmitting, pur- EC–1069. A communication from the Sec- EC–1083. A communication from the Chair- suant to law, the report of financial state- retary of Transportation, transmitting, a man of the Prospective Payment Assessment ments for calendar year 1994; to the Com- draft of proposed legislation entitled ‘‘The Commission, transmitting, pursuant to law, mittee on the Judiciary. National Highway System Designation Act the report entitled ‘‘Medicare and the Amer- EC–1098. A communication from the Acting of 1995’’; to the Committee on Environment ican Health Care System’’; to the Committee Assistant Attorney General, Office of Legis- and Public Works. on Finance. lative Affairs, Department of Justice, trans- EC–1070. A communication from the Sec- EC–1084. A communication from the Assist- mitting, pursuant to law, the report of set- retary of Transportation, transmitting, pur- ant Secretary of State [Legislative Affairs], tlements for calendar year 1994; to the Com- suant to law, the report entitled ‘‘Alaska transmitting, pursuant to law, notice of the mittee on the Judiciary. Demonstration Programs’’; to the Com- intention to obligate funds in fiscal year EC–1099. A communication from the Chair- mittee on Environment and Public Works. 1995; to the Committee on Foreign Relations. man of the Board of Governors of the Federal EC–1071. A communication from the Sec- EC–1085. A communication from the Assist- Reserve System, transmitting, pursuant to retary of Transportation, transmitting, pur- ant Secretary of State [Legislative Affairs], law, the report of the Federal Open Market

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00104 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8945 Committee for calendar year 1994; to the merce, Science, and Transportation, and to By Mr. HATCH (for himself, Mr. Committee on the Judiciary. the Committee on the Judiciary. GREGG, Mr. FRIST, Mr. KENNEDY, Mrs. EC–1100. A communication from the Attor- EC–1114. A communication from the Direc- KASSEBAUM, Mr. GRAMS, Mr. ney General, transmitting, pursuant to law, tor of the Office of Management and Budget, WELLSTONE, Mr. CHAFEE, Mrs. the report on Federal Prison Industries, Inc.; Executive Office of the President, transmit- HUTCHISON, and Mr. D’AMATO): to the Committee on the Judiciary. ting, pursuant to law, the cumulative report S. 955. A bill to clarify the scope of cov- EC–1101. A communication from the Chair- on rescissions and deferrals dated June 1, erage and amount of payment under the man of the U.S. Sentencing Commission, 1995; referred jointly pursuant to the order of medicare program of items and services asso- transmitting, pursuant to law, the annual re- January 30, 1975, as modified by the order of ciated with the use in the furnishing of inpa- port for fiscal year 1994; to the Committee on April 11, 1986 to the Committee on Appro- tient hospital services of certain medical de- the Judiciary. priations, the Committee on Agriculture, vices approved for investigational use; to the EC–1102. A communication from the Chair- Nutrition, and Forestry, the Committee on Committee on Finance. man of the Federal Election Commission, Banking, Housing, and Urban Affairs, the By Mr. GORTON (for himself, Mr. transmitting, pursuant to law, the report of Committee on the Budget, the Committee on BURNS, Mr. MURKOWSKI, Mr. STEVENS, the proposed regulations governing the pub- Commerce, Science and Transportation, the Mr. KEMPTHORNE, Mr. CRAIG, Mr. lic financing of the Presidential Primary and Committee on Environment and Public PACKWOOD, and Mr. HATFIELD): General Election Candidates; to the Com- Works, the Committee on Labor and Human S. 956. A bill to amend title 28, United mittee on Rules and Administration. Resources, the Committee on Small Busi- States Code, to divide the ninth judicial cir- EC–1103. A communication from the Sec- ness, the Committee on Finance, the Com- cuit of the United States into two circuits, retary of Health and Human Services, trans- mittee on Foreign Relations, and to the and for other purposes; to the Committee on mitting, a draft of proposed legislation enti- Committee on the Judiciary. the Judiciary. tled ‘‘The Substance Abuse and Mental By Mr. BURNS (for himself, Mr. KYL, f Health Performance Partnership Act of Mr. THOMAS, Mr. HELMS, Mr. 1995’’; to the Committee on Labor and REPORTS OF COMMITTEES SANTORUM, Mr. NICKLES, Mr. THOMP- Human Services. SON, and Mr. BROWN): EC–1104. A communication from the Sec- The following reports of committees S. 957. A bill to terminate the Office of the retary of Health and Human Services, trans- were submitted: Surgeon General of the Public Health Serv- mitting, a draft of proposed legislation enti- By Mr. HATCH, from the Committee on ice; to the Committee on Labor and Human tled ‘‘The Preventive Health Performance the Judiciary, without amendment: Resources. Partnership Act of 1995’’; to the Committee S. 457. A bill to amend the Immigration By Mr. HELMS: on Labor and Human Services. and Nationality Act to update references in S. 958. A bill to provide for the termination EC–1105. A communication from the Sec- the classification of children for purposes of of the Legal Services Corporation; to the retary of Health and Human Services, trans- United States immigration laws. Committee on the Judiciary. mitting, a draft of proposed legislation enti- By Mr. HATCH, from the Committee on By Mr. HATCH (for himself, Mr. tled ‘‘The Health Centers Consolidation Act the Judiciary, without amendment and with LIEBERMAN, and Mr. FAIRCLOTH): of 1995’’; to the Committee on Labor and a preamble: S. 959. A bill to amend the Internal Rev- Human Services. S.J. Res. 27. A joint resolution to grant the enue Code of 1986 to encourage capital forma- EC–1106. A communication from the Sec- consent of the Congress to certain additional tion through reductions in taxes on capital retary of Health and Human Services, trans- powers conferred upon the Bi-State Develop- gains, and for other purposes; to the Com- mitting, pursuant to law, the report on the ment Agency by the States of Missouri and mittee on Finance. implementation of the National Child Abuse Illinois. and Neglect Data System; to the Committee f on Labor and Human Services. f STATEMENTS ON INTRODUCED EC–1107. A communication from the Sec- BILLS AND JOINT RESOLUTIONS retary of Health and Human Services, trans- EXECUTIVE REPORTS OF mitting, pursuant to law, the report of the COMMITTEES By Mr. HATCH (for himself, Mr. Administration on Developmental Disabil- The following executive reports of GREGG, Mr. FRIST, Mr. KEN- ities for fiscal year 1993; to the Committee committees were submitted: NEDY, Mrs. KASSEBAUM, Mr. on Labor and Human Services. GRAMS, Mr. WELLSTONE, Mr. EC–1108. A communication from the Sec- By Mr. HATCH, from the Committee on CHAFEE, Mrs. HUTCHISON, and retary of Education, transmitting, pursuant the Judiciary: to law, the report of the National Advisory Donald C. Nugent, of Ohio, to be United Mr. D’AMATO): Council on Educational Research and Im- States District Judge for the Northern Dis- S. 955. A bill to clarify the scope of provement; to the Committee on Labor and trict of Ohio. coverage and amount of payment under Human Resources. Wiley Y. Daniel, of Colorado, to be United the Medicare Program of items and EC–1109. A communication from the Sec- States District Judge for the District of Col- services associated with the use in the retary of Education, transmitting, pursuant orado. furnishing of inpatient hospital serv- to law, the report under the Inspector Gen- Peter C. Economus, of Ohio, to be United ices of certain medical devices ap- eral Act for the period October 1, 1994 States District Judge for the Northern Dis- through March 31, 1995; to the Committee on trict of Ohio. proved for investigational use; to the Labor and Human Resources. Carlos F. Lucero, of Colorado, to be United Committee on Finance. EC–1110. A communication from the Sec- States Circuit Judge for the Tenth Circuit. THE ADVANCED MEDICAL DEVICES ACCESS retary of Education, transmitting, pursuant Janie L. Shores, of Alabama, to be a Mem- ASSISTANCE ACT OF 1995 to law, the report on the performance stand- ber of the Board of Directors of the State Mr. HATCH. Mr. President, today I ards and measurement systems developed by Justice Institute for a term expiring Sep- am introducing S. 955, the Advanced States for their vocational education pro- tember 17, 1997. Medical Devices Access Assurance Act grams; to the Committee on Labor and Terrence B. Adamson, of the District of Co- Human Resources. lumbia, to be a Member of the Board of Di- of 1995, which is aimed at addressing EC–1111. A communication from the Ad- rectors of the State Justice Institute for a two serious threats to high quality ministrator of the Small Business Adminis- term expiring September 17, 1997. health care in the United States: re- tration, transmitting, a draft of proposed Andrew Fois, of New York, to be an Assist- stricted access for our senior citizens legislation relative to the SBA; to the Com- ant Attorney General. to the most advanced medical tech- mittee on Small Business. Nancy Friedman Atlas, of Texas, to be nologies; and our country’s loss of clin- EC–1112. A communication from the Gen- United States District Judge for the South- ical research activities to overseas fa- eral Counsel of the Department of Defense, ern District of Texas. cilities. transmitting, a draft of proposed legislation (The above nominations were re- to amend Title 38, United States Code, to au- I am pleased to be joined in cospon- thorize the termination of Servicemen’s ported with the recommendation that sorship of this bill by Senators GREGG, Group Life Insurance when premiums are not they be confirmed.) FRIST, KENNEDY, KASSEBAUM, GRAMS, paid; to the Committee on Veterans’ Affairs. f WELLSTONE, CHAFEE, HUTCHISON, and EC–1113. A communication from the Comp- D’AMATO. troller General, transmitting, pursuant to INTRODUCTION OF BILLS AND At the outset, I want to recognize the law, the report of proposed rescissions of JOINT RESOLUTIONS outstanding leadership of our House budget authority; referred jointly, pursuant to the order of January 30, 1975, as modified The following bills and joint resolu- colleague, Chairman BILL THOMAS, who by the order of April 11, 1986, to the Com- tions were introduced, read the first introduced the companion measure as mittee on Appropriations, to the Committee and second time by unanimous con- H.R. 1744 on June 6. Representative on the Budget, to the Committee on Com- sent, and referred as indicated: THOMAS was the first in Congress to

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00105 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8946 CONGRESSIONAL RECORD — SENATE June 22, 1995 step forward and take steps to correct vice companies, those who tradition- instructed by its Counsel to avoid use of any the problem this legislation addresses. ally have been the leaders in devel- newer, incremental technologies in Medicare His leadership has been—and will con- oping innovative technology, and who patients, including pacemakers, tinue to be—invaluable as we seek to defibrillators, and interventional coronary simply cannot afford millions of dol- devices (such as angioplasty catheters and move this legislation forward. lars for clinical trials. stents) that are not final market approved. Mr. President, the Thomas-Hatch Fourth, the policy exacerbates cur- Unquestionably, this has made our Medi- legislation was prompted as a result of rent over-regulatory trends in the care patients second class citizens, as these recent changes in Health Care Financ- United States which are driving manu- newer devices are generally smaller, more ef- ing Administration [HCFA] reimburse- facturers offshore and jobs to other ficient and effective, last longer, and can be ment practices for medical procedures countries. implanted with lower operative risk. which include the use of so-called next And fifth, it runs contrary to the re- Dr. Anderson also notes a recent generation devices, that is, medical de- cent report of the Physician Payment tendency for these new devices to be vices that are undergoing clinical Review Commission, which stated that developed overseas and not readily trials, yet which have a precursor de- Congress should authorize an addi- available here. Several firms have indi- vice which has been approved by the tional coverage option for Medicare so cated to him that initial research is Food and Drug Administration as safe that: now being done in Europe and else- and effective. For devices subject to Food and Drug Ad- where and that the devices will be only In December 1994, HCFA advised its ministration approval, and for other services available here after final FDA ap- regional administrators that Medicare that the Health Care Financing Administra- proval, often with a delay of years. must only reimburse for items and tion has not approved for coverage, Medicare Or, let me put it in the words of an- services that are reasonable and nec- should pay up to the cost of standard care other distinguished Utah cardiologist, essary; according to HCFA, reimburse- when the device or service is clearly sub- Dr. James W. Long, attending ment of reasonable and necessary pro- stituting for an established one and is being cardiothoracic surgeon at LDS Hos- cedures precludes payment for the use evaluated in a Food and Drug Administra- pital. Dr. Long, has related to me: tion-approved or other approved study. of experimental or investigational As a cardiothoracic surgeon, I am ex- services. The situation giving rise to the legis- tremely troubled by the growing restrictions The HCFA policy change came on the lation we offer today was first brought which are preventing us from implementing heels of an HHS inspector general in- to my attention a year ago by officials great medical technologies for our patients quiry in which patient records were of the LDS Hospital in Salt Lake City, in Utah. Clearly, three major impediments subpoenaed from over 100 hospitals na- UT. exist: First, reimbursement problems; sec- tionwide, including virtually all of the LDS Hospital, which ranks among ond, product liability concerns; and third, the top in the Nation for cardiac proce- FDA constraints. Those barriers are exer- premier medical research bodies in this cising a major chilling effect on the develop- Nation. dures, was among the more than 100 ment and implementation of medical tech- The effect of this change in HCFA hospitals which had received a sub- nologies which offer the hope of improving policy is to deny Medicare contractors poena from the HHS inspector general quality of life while offering cost-effective- discretion to pay for any of a bene- for records relating to Medicare reim- ness. ficiary’s hospital costs and related bursement of cardiac procedures reach- Dr. Long goes on to state: services if an investigational device ing as far back as 10 years ago. The current posture of HCFA to deny were being used, even if such a device Included on the list of devices that Medicare reimbursement for any hospital were a refinement of a proven, FDA-ap- are affected by this policy are charges when a new, ‘‘investigational’’ de- proved technology. implantable cardiac defibrillators, vice is used is an example of how problems Examples might be a pacemaker which are devices that are implanted in with reimbursement lead to discrimination which is made in a smaller version or a a patient’s body and assist in cor- against the Medicare population. To illus- trate, I can no longer implant a new, im- pacemaker with a new type of lead. recting life threatening, irregular This policy denies patients in the proved heart valve undergoing clinical eval- heart rhythms. uation because reimbursement for ALL hos- Medicare population the benefits of the My colleagues may be aware of the pital charges for the surgery and care (not best available medical therapies which problem with reimbursement for state- just the heart valve charges) will be denied. are often life-saving and life-enhanc- of-the-art defibrillators, as it was re- This is even more frustrating when one con- ing. ported by John Carey in the June 12 siders that these clinical evaluations are In effect, in adopting such a policy, issue of Business Week. being conducted with the approval of the HCFA has created a two-tiered health In reporting on the HCFA policy and FDA as well as local, hospital internal re- care delivery system, consisting of pri- its impact on clinical research and pa- view boards or medical devices whose effi- vately insured individuals who can ac- cacy and safety have already been dem- tient care, Mr. Carey wrote: onstrated in preclinical testing. cess these improved devices and Medi- In some cases, the impact on the quality Mr. President, as has been dem- care beneficiaries who cannot. That is and cost of care was dramatic. Cardiac arrest a situation which must be corrected. survivors typically need defibrillators to onstrated, over time, increasingly im- Although our senior citizens are the shock their hearts back to normal whenever proved devices have been developed immediate victims of this unwise pol- the fragile organ races out of control. For that are far more efficient and effica- icy, all Americans will ultimately suf- several years, the standard device was so cious than each prior version of the de- fer. large that it had to be implanted in patients’ vice. Such refinements have not only Medicare’s position not only deprives abdomens. But Minneapolis-based Medtronic, improved the functioning of the device this Nation’s elderly population of the Inc. built a much smaller version that could from a patient perspective, but also fit in the pectoral region. In trials at the have: First, increased the longevity of most advanced, efficacious care and Mayo Clinic, says cardiologist Stephen C. treatment available, but it also signifi- Hammill, the new device reduced deaths the device, thereby minimizing the cantly interferes with clinical advance- from the actual operation from 3.8% of pa- need for replacement; second, improved ments that might otherwise be avail- tients to zero—and cut hospital costs after the ability to monitor the device with- able for generations to come. implantation from $24,000 to $18,000. Yet out the need for hospitalization; and In addition, I wish to note there are Mayo’s doctors could no longer use the de- third, minimized the invasiveness of other negative effects of the HCFA pol- vice for Medicare patients—unless they the procedure require to implant the icy. found another way to pay the bills. device. First, it undermines the Food and Let me put this in the words of one of Not only have patient outcomes been Drug Administration’s efforts to press Utah’s preeminent cardiologists, Dr. greatly improved, but the overall costs for clinical trials to prove the sci- Jeffrey L. Anderson, professor of medi- and consumption of resources within entific validity of device studies. cine and chief of the division of cardi- the health care system have been re- Second, it delays advances in medical ology at LDS Hospital in Salt Lake. duced. device technology for all Americans, Dr. Anderson has advised me: My concerns about the HCFA policy not just those eligible for Medicare. Since notification of the OIG investigation were reinforced by evidence revealed at Third, it has a disproportionate im- and statement of the HCFA policy, the Divi- a recent hearing before the Finance pact on small-to-medium medical de- sion of Cardiology at LDS Hospital has been Committee.

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00106 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8947 During the committee’s May 16 hear- Mr. President, this policy must be Association, Health Industry Manufac- ing on the solvency of the Medicare changed for the benefit of our Nation’s turers Association, Mayo Clinic, Med- Program, Dr. John W. Rowe, president elderly and all Americans. The bill I ical Device Manufacturers’ Associa- of the Mount Sinai Hospital and the am introducing today will accomplish tion, North American Society of Pac- Mount Sinai School of Medicine in New this, and will do so without increasing ing and Electrophysiology, Society of York City, shocked members by reveal- Medicare costs. Thoracic Surgeons, and last but not ing that his medical center has vir- Under S. 955, coverage would be lim- least, the Utah Life Science Industries tually discontinued clinical research ited to circumstances in which the de- Association. on investigational devices for Medicare vice in question is used in lieu of an ap- In introducing this legislation today, beneficiaries because of the HCFA rul- proved device or otherwise covered pro- it is our hope that the bill can be incor- ing. cedure. This latter provision permits porated in this year’s reconciliation Dr. Rowe related to the committee the use of devices that are often used legislation and moved swiftly to the that: in lieu of far more invasive and costly President for signature. I urge my col- The Inspector General of HHS has indi- procedures. Because these investiga- leagues to support the Advanced Med- cated that if a patient is given an investiga- tional devices reduce hospital stays, ical Devices Access Act of 1995. tional device—that is something that is not mortality and the need for repeat pro- Mr. GREGG. Mr. President, I am approved by the Food and Drug Administra- cedures, it is likely that this legisla- pleased to join my colleagues, espe- tion for general use—during their experience tion will reduce total treatment costs cially my colleague from Utah, Sen- in the hospital—let me be clear on this—then over the long term. ator HATCH, in introducing this impor- the entire reimbursement or payment for the In fact, the legislation specifically tant piece of legislation. The Advanced admission to the hospital is not allowed and the hospital is liable for treble damages. states that the amount of payment for Medical Devices Access Assurance Act any item or service associated with the of 1995 was developed to ensure that Dr. Rowe went on to make the point use of an investigational device may our senior population can be treated that, whereas Medicare historically has not exceed the amount which would with the most advanced—and most not paid for research, there are dif- have been made for the approved de- cost-effective—medical technology ferences between real research and vice. This will ensure the bill’s budget available in the United States. marginal refinements of innovations. neutrality. As chairman of the Aging Sub- In subsequent correspondence to me, Before closing, Mr. President, I want committee in the Senate, I hear con- Dr. Rowe added another critical point. to discuss for a moment one other fac- stantly from older individuals who are He said: tor which led us to introduce S. 955. concerned about their medical options: Mount Sinai’s decision to stop all clinical After Senator GREGG and I decided to They read about a breakthrough tech- trials was made after careful deliberation explore legislation in this area, we con- nology that is being explored, and want and with great regret and consternation, but an opportunity to have access to such a is the only rational position that can be tacted both HCFA and the OIG. taken by an institution which, under normal The IG’s office advised us that ‘‘This product. Believe me, these folks are circumstances, performs a large number of is an open active investigation in the often more up-to-speed about their such trials. OIG. It is the policy of the OIG not to medical choices than you or I; they This outcome is also a particularly unfor- comment on investigations which are take the time to do their homework on tunate one given our belief that the controls active.’’ their health care. put in place by the FDA’s IDE approval proc- HCFA officials, however, were ex- As my colleague, Senator HATCH, has ess and Mount Sinai’s own Institutional Re- tremely helpful, and shared with us the mentioned, this bill is designed to get view Board assure that there is an appro- results of the considerable time they at the heart of a problem which has priate level of safety, efficacy, and oversight arisen from a Health Care Financing with respect to each such device. In the end, have spent on this issue. we believe that Medicare’s position not only Two factors, however, led us to con- Administration policy. HCFA has ruled deprives this nation’s elderly population of clude that legislation is necessary. that it will not provide Medicare reim- the most advanced, efficacious care and First, we were not persuaded that the bursement for any episode—any por- treatment available, but significantly inter- agency’s efforts would be concluded as tion of the care associated with the de- feres with clinical advancements that might quickly as we would like. And, second, vice, including the hospital stay— otherwise be available for generations to while we agreed with HCFA’s conclu- which uses a medical device not de- come. sion that Medicare should not be sub- fined as ‘‘reasonable or necessary.’’ A survey released June 7 by the sidizing pure research, we did not feel ‘‘Reasonable and necessary’’ excluded Health Industry Manufacturers Asso- that these clinical investigations could medical devices which are being im- ciation reveals the problems inherent be termed as such. planted under an FDA investigation de- in this new HCFA policy. We were, however, concerned that vice exemption, or IDE. HIMA found that 71 companies have the concept underlying the agency’s In other words, if a surgeon who is had clinical trials with their products proposed rule-making could lead to performing state-of-the-art medicine brought to a halt due to the new HCFA more regulation at the Food and Drug wants to take advantage of a product policy. The response of 40 percent of Administration, in that FDA is consid- which has been granted an IDE, he or those companies was to limit the clin- ering a system whereby investigational she can only do so on their population ical research to non-Medicare patients, devices would be certified as eligible under age 65. The random nature of a in other words, denying those seniors for Medicare reimbursement. With the person’s date of birth controls their access to the latest medical tech- device approval rate lag already the ability to receive the most modern nologies. subject of mounting congressional con- care, to get that technology that we Even more indicative of this policy’s cern, a process which adds even more are constantly touting as the ‘‘best in ill effects, 59 percent surveyed had review is not viable. the world.’’ moved clinical trials overseas, and 57 As I close, I would like to note the A clear backlash from this policy has percent said they plan to move future considerable support this legislation also been seen in the form of a mass ex- trials overseas. enjoys. It is supported by the American odus of clinical trials being conducted It is clear that due the uncertainty Academy of Orthopedic Surgeons, in the United States. The brain drain generated by the recent change, clin- American College of Cardiology, Amer- in medical device development and ical trials are being stopped around the ican Hospital Association, American manufacturing in this country has al- country. Many medical technology Medical Association, Association of ready begun to have devastating re- companies are moving their life saving American Medical Colleges, Associa- sults. Not only does the United States research technologies out of the United tion of Professors of Medicine, Cali- now have an atmosphere unconducive States to Europe, Canada, and Japan. fornia Health Care Institute, Catholic to research and development, but it has This loss of research will erode the Health Association, Cleveland Clinic, evolved into an environment that is base of expertise in an industry where Coalition of Boston Teaching Hos- unattractive for investment capital to the United States has traditionally led pitals, Federation of American Health be risked on medical devices. Not only the world. Systems, Greater New York Hospital does this relegate the citizens of this

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00107 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8948 CONGRESSIONAL RECORD — SENATE June 22, 1995 country to antiquated generations of generation devices are medical devices S. 958. A bill to provide for the termi- technology, it moves jobs and innova- which are undergoing clinical trials, nation of the Legal Services Corpora- tion overseas. yet which have a precursor device tion; to the Committee on the Judici- I am hopeful that the administration which has been approved by the Fed- ary. will listen to the plea we are making eral Food and Drug Administration LEGAL SERVICES CORPORATION TERMINATION here today to address this critical [FDA] as safe and effective. Medical de- ACT issue. While it may seem like a small vices—unlike drugs—are continually Mr. HELMS. Mr. President, with a item on the agenda of the day, it is updated and improved incrementally Federal debt of $4,898,068,854,045.71 as of probably the greatest accomplishment even after they are approved by the the close of business yesterday, we could achieve for those individuals FDA. Wednesday, June 21, it is time to ask whose lives and medical care we can so But currently, Medicare just flat-out ourselves a question: Should Congress denies payment for the surgery or ill- easily improve. continue to force the American tax- ness if an investigational device is Mr. KENNEDY. Mr. President, it’s an payers to provide $400 million every used. Medicare will pay for the costs honor to join Senator HATCH and other year to pay the salaries of, and to oth- associated with the hospital stay and Members of the House and Senate in erwise fund, a cadre of liberal lawyers procedure only if the soon-to-be-obso- sponsoring this important bipartisan to push their social policies down the lete device is used and not the newest legislation. Insurance coverage for throats of local governments and citi- model. Therefore, even though the pa- physician and hospital costs in clinical zens? tient potentially benefits from receiv- trials is essential to the progress of I think not—and I suspect most medicine. ing a modified and updated pacemaker and clinical studies are necessary to Americans will agree, which is why I The current policy under Medicare is today offer legislation to put an end to especially counterproductive, because prove what works and what does not, hospitals and physicians are being Federal funding of the Legal Services it denies reimbursement even if expen- Corporation. sive care would be required if the pa- forced to exclude seniors from clinical North Carolina has been harassed by tient does not participate in the clin- trials. Providers and manufacturers the LSC for years and, adding insult to ical trials. would rather more their studies to Eu- The current rules are clearly imped- rope where everybody has health insur- injury, LSC attorneys in my State— ing research at leading hospitals ance than confront reimbursement whose salaries are federally sub- around the country. Needed medical practices that discourage participation sidized—are now demanding through care is being denied to many elderly in clinical trials. But patients want the the courts that the State of North patients. It’s time to change the rules leading-edge technologies available in Carolina pay them $320,000 in addi- and take this step to enhance research the United States as quickly as pos- tional attorney’s fees. and improve patient care. sible. Mr. President, a few details about Mr. WELLSTONE. Mr. President, I Some may surmise that Medicare has this specific outrage may be in order. am pleased to be a cosponsor of the Ad- refused to pay for this technology be- In 1975, Legal Services attorneys suc- vanced Medical Devices Access and As- cause of safety concerns. But any next cessfully took on the State of North surance Act of 1995 which would ensure generation device involved in a clinical Carolina on behalf of applicants en- that seniors can participate in clinical trial has already received approval rolled in the Federal Aid to Families trials that involve investigational from the FDA to test the device in hu- with Dependent Children and Medicaid medical devices. It signifies a bipar- mans. During a study of an FDA-ap- programs. And what was the great of- tisan first step toward addressing pa- proved investigational device, physi- fense by North Carolina’s local Depart- tient concerns about access to the lat- cians and hospitals follow strict proce- ments of Social Services to justify this est technologies. It also addresses the dures. Hospitals and physicians must law suit? In the arrogant judgment of medical research community’s con- have the informed consent of the pa- the Legal Services lawyers, it was tak- cerns about its ability to continue clin- tient in order for the patient to be eli- ing the local Departments of Social ical trials and keep our Nation at the gible to participate in the investiga- Services too long to process benefits. forefront of state-of-the-art medicine, tional device studies. And the manufac- Since that time, the local Depart- and industry’s concerns about being turer of the device is prohibited from ments of Social Services have done forced to ship all of its resources and promoting or commercializing the de- their best to follow the numerous vice or charging a price that exceeds brainpower overseas. court-imposed requirements. In the Minnesota’s patients, researchers, the amount necessary to recover its meantime, the Legal Services attor- and world-famous medical device in- costs. neys have collected—now get this, Mr. So how much would it cost the Medi- dustry have a clear stake in both the President—an estimated $1 million in care Program to pay for the most ad- upcoming Medicare and FDA reform attorney’s fees from the State of North vanced technologies? Currently, Medi- debates. Researchers and industry need Carolina. But that doesn’t satisfy care pays a lump sum for surgeries and to know that the Government will cre- them. On June 14, a little more than a hospitalization based on the illness of week ago, the Legal Services attorneys ate a favorable environment for inno- the patient. If you need a pacemaker vation, thus propelling this country’s demanded another $320,000 in attor- and choose to be a part of an FDA-ap- ney’s fees. leadership position into the 21st cen- proved clinical trial, it shouldn’t mat- tury. And, Minnesota’s patients need So, Mr. President, these Legal Serv- ter to the Medicare Program whether ices attorneys are paid with Federal to know that they will have access to you get the next generation model of funds through the Legal Services Cor- the best technologies and the latest the pacemaker or the current model— poration and with State and local treatments and that, when appropriate, as long as the FDA has approved the Legal Services agencies to sue the these will be covered by their health clinical trial and you gave your in- State of North Carolina. In addition to insurance policies. formed consent to participate. In other the taxpayers’ money they receive to Unfortunately, access to leading-edge words, Medicare should pay the hos- dismantle local government policies, technologies and next generation med- pital a lump sum based on the illness of the Legal Services attorneys are de- ical devices for seniors—the population the patient regardless of which device manding additional money for them- for whom they are often most appro- is used. priate—has recently been jeopardized This legislation provides a common- selves—out of the pockets of North by the Medicare Program’s refusal to sense solution that protects patient Carolina’s taxpayers. pay for them in clinical trials. safety, access to high-quality health The legislation I introduce today will A next generation device could be a care, and Federal dollars. For the sake fix this costly problem—by ending Fed- pacemaker that enables a person to of Minnesotans, we must meet these eral funding of Legal Services Corpora- lead a more normal life than a tradi- standards during the broader Medicare tion, which like most other social pro- tional pacemaker. It could be a pace- and FDA reform debates. grams spawned in the 1960’s, has maker that would last longer than an strayed far from any meaningful pur- older model and be more reliable. Next By Mr. HELMS: pose and deserves a quiet funeral.

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00108 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8949 For the record, the Legal Services Justice, said it best in his February 1, that will almost certainly allow for Corporation was created in 1974 osten- 1995, editorial, ‘‘Want Welfare Reform? some tax reductions, Senator sibly to provide legal assistance to low- First Fight Legal Services Corpora- LIEBERMAN and I concluded that it is income citizens in civil, noncriminal tion.’’ Mr. Mellor writes: now the right time to introduce a bi- matters. Its first annual budget, for fis- Instead of just helping the poor with prob- partisan capital gains tax reduction cal year 1976 was $92 million. It will lems such as child support and rent disputes, bill that will contribute to economic cost the taxpayers $400 million in 1995. LSC lawyers have worked for years to get growth and job creation. We are excep- It does not provide services directly, it the courts to enshrine a constitutional right tionally pleased to be joined in this ef- to welfare. makes grants to local agencies which fort by Senator FAIRCLOTH. in turn are charged with providing Mr. President, is this the kind of ar- Our bill combines the best elements legal services to those who can’t afford rogant absurdity that was intended for of the House-passed capital gains bill a lawyer—low-income individuals, mi- LSC? Why should the U.S. Congress be with a targeted incentive to give an grants and immigrants, and minorities. concerned with—as candidate Bill Clin- extra push for newly formed or expand- Mr. President, it is precisely these ton put it—‘‘changing welfare as we ing small businesses. Like the capital local agencies throughout the country know it,’’ when the taxpayers are re- gains measure the House passed in which, instead of carrying out the mis- quired to pay lawyers to convince the April, our bill would allow individual sion of providing legal assistance to Federal courts to make welfare a con- taxpayers to deduct 50 percent of any those who can’t afford it, have pro- stitutional right? net capital gain. This means that the moted a liberal public policy and prop- The American people in the 1994 elec- top capital gains tax rate for individ- aganda mechanism. It has unmercifully tion emphatically stated that govern- uals would be 19.8 percent. Also like harassed law-abiding citizens and has ment is running their lives. There is the House bill, it grants a 25-percent imposed countless dollars in litigation far more waste in government than the maximum capital gains tax rate for costs upon hapless small businessmen, American people should be forced to corporations. Our bill also includes the farmers, and so forth. pay for. important provision of the House- Another example from North Caro- Congress, for a half century, has been passed bill that would allow home- lina: wasting billions of dollars, running up owners who sell their personal resi- The Department of Labor, in con- a Federal debt of about $4.9 trillion. dences at a loss to take a capital gains junction with local legal services agen- Fortunately, for the American people, deduction. cies, has done its best to dismantle the the House of Representatives has pro- Unlike the House measure, however, H–2A Immigrant Farm Labor Pro- posed eliminating funding for the the bill we are introducing today does gram—a Federal program allowing Legal Services Corporation, the cost of not include provisions for indexing as- small farmers to employ temporary which has exploded from $92 million in sets. Many of our Senate colleagues immigrant workers for seasonal har- fiscal year 1976 to $400 million in fiscal have expressed concern that indexing vests. Since North Carolina’s farmers year 1995. And according to the Herit- capital assets would results in undue have had difficulty finding citizens to age Foundation, despite this large complexity and possibly lead to a re- work on their farms, this program is a budget and tremendous growth, only 4 surgence of tax shelters. While I sup- must for the survival of many of these percent of the Nation’s poor directly port the concept of indexing capital as- small farms. benefited from the LSC in 1993. sets to prevent the taxation of infla- There is no other reason for the local So, Mr. President, the legislation I tionary gains, we felt it important to legal service agency to harass North offer today, to eliminate Federal fund- streamline this bill to ease its passage Carolina’s farmers beyond furthering ing of the Legal Services Corporation, in the Senate. I hope that some form of the protection and rights of immi- is long past due. While saving the tax- indexing can be developed, perhaps by a grants brought in to work. payers millions of dollars, my bill will Mr. President, the North Carolina Senate-House conference committee, end the forced sponsorship by the U.S. Growers Association is today mired in that will achieve the goals of indexing taxpayers of an agency the purpose and a legal battle to protect the rights of without adding undue complexity, or farmers to participate in a program de- mission of which was laid aside and for- the potential for abuse, to the code. signed by Congress to assist farming gotten long ago in its rush to promote In addition to the broad-based provi- production. The irony is that the a leftwing social agenda. It’s time for sions listed above, our bill also in- American taxpayer is forced to fund the Legal Services Corporation to be cludes some extra capital gains incen- the LSC and its liberal assault on law- discarded—forever. tives targeted to individuals and cor- porations who are willing to invest in abiding citizens, North Carolina’s By Mr. HATCH (for himself, Mr. farmers included. small businesses. We see this add-on as LIEBERMAN, and Mr. FAIR- Of course, the LSC has not limited an inducement for investors to provide CLOTH): its activities to bullying citizens. The the capital needed to help small busi- S. 959. A bill to amend the Internal corporation has set its sights on chang- nesses get established and to expand. Revenue Code of 1986 to encourage cap- ing State laws through litigation and Mr. President, this additional tar- ital formation through reductions in direct lobbying as well as tearing apart geted incentive works as follows: If an taxes on capital gains, and for other programs designed to help the poor and investor buys newly issued stock of a purposes; to the Committee on Fi- needy. qualified small business, which is de- For example, as the Heritage Foun- nance. fined as one with up to $100 million in dation notes in its publication ‘‘Rolling CAPITAL GAINS FORMATION ACT OF 1995 assets, and holds that stock for 5 or Back Government: A budget plan to re- Mr. HATCH. Mr. President, on behalf more years, he or she can deduct 75 build America,’’ the LSC recently filed of myself, Senator LIEBERMAN, and percent of the gain on the sale of that a lawsuit in New Jersey challenging Senator FAIRCLOTH, I rise today to in- stock, rather than just the 50 percent that State’s welfare reform initiatives. troduce the Capital Gains Formation deduction provided for other capital In New York City, the LSC filed suit Act of 1995. gains. against HELP, a proven nonprofit orga- Mr. President, reducing the high rate In addition, anytime after the end of nization that assists the homeless. The on capital gains has long been a pri- the 5-year period, if the investor de- LSC has even pursued cases to provide ority of mine. Earlier this year, I cides to sell the stock of one qualified free public education for illegal aliens. joined my good friend, the chairman of small business and invest in another The Heritage Foundation report con- the House Ways and Means Committee, qualified small business, he or she can cludes, ‘‘rather than helping the poor BILL ARCHER, in introducing the Ar- completely defer the gain on the sale of settle landlord disputes, wills, and cher-Hatch capital gains bill in Con- the first stock and not pay taxes on the other common legal problems, the LSC gress. In the Senate, this was S. 182. A gain until the second stock is sold. In increasingly is concerned with public modified version of this bill was passed essence, the investor is allowed to roll policy.’’ by the House in April. over the gain into the new stock until Perhaps William Mellor, president of Now that the Congress is on the he or she sells the stock and keeps the the Washington-based Institute for verge of passing a budget resolution money. We think that this additional

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00109 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8950 CONGRESSIONAL RECORD — SENATE June 22, 1995 incentive will make a tremendous ings account—which we should all tax rate will increase, not decrease, amount of capital available for new have—a piece of land, a savings bond, revenue to the Treasury. During the and expanding small businesses in this some stock your grandmother bought period from 1978 to 1985, the tax rate on country. you, your house, your farm, your 1964 capital gains was cut from almost 50 Let me just add, Mr. President, that Mustang convertible, or any number of percent to 20 percent. Over this same these special incentives should really things that have monetary worth. It is period, however, tax receipts increased make a difference in the electronics, misleading to imply that only the from $9.1 billion to $26.5 billion. The biotechnology, and other high-tech- wealthy would benefit from this bill. opposite occurred after the 1986 Tax nology industries that are so impor- I want to elaborate on this point, Mr. Reform Act raised the capital gains tax tant to our economy and to our future. President. Current law already pro- rate. The higher rate resulted in less The software and medical device indus- vides a sizeable differential between or- revenue. tries in Utah are perfect examples of dinary income tax rates and capital Mr. President, the capital gains tax how these industries have transformed gains tax rates for upper income tax- is really a tax on realizing the Amer- our economy. While these provisions payers. The wealthiest among us pay ican dream. For those Americans who are not limited to high-tech companies up to 39.6 percent on ordinary income have planted seeds in savings accounts, by any means, these are the types of but only 28 percent on capital gains. small or large companies, family businesses that are most likely to use We certainly feel that this 28 percent is farms, or other investments, and who them because it is so hard to attract too high. But, my point is that tax- have been fortunate enough and capital for these higher risk ventures. payers in the lower bracket of 28 per- worked hard enough to see them grow, Our economy is becoming more con- cent and the lowest bracket of 15 per- the capital gains tax is a tax on suc- nected to the global marketplace every cent enjoy no difference between their cess. It is an additional tax on the re- day. And, it is vital for us to realize capital gains rate and their ordinary ward for taking risks. The American that capital flows across national income rate. Our bill would correct dream is not dead; it’s just that we boundaries these days at the speed of this problem and give the largest per- have been taxing it away. light. Therefore, we need to be con- centage rate reduction to the lowest I urge my colleagues on both sides of cerned with how our trading partners income taxpayers. the aisle to take a close look at this tax capital. Frankly, Mr. President, the introduc- bill. We believe it offers a solid plan to Unfortunately, the United States has tion of a bipartisan capital gains bill help us achieve our goal of a brighter the highest rate on individual capital couldn’t come at a better time than future for our children and grand- gains of all of the G–7 nations, except now. There are currently some indica- children. When it comes down to it, the United Kingdom. And, even in the tions that our economy is slowing jobs, economic growth, and entrepre- United Kingdom, individuals can take down. In fact, some experts feel we neurship are not partisan issues. They advantage of indexing to alleviate cap- may be on the verge of a mild reces- are American issues. This bill will help ital gains caused solely by inflation. sion. Such a concern is always impor- us get there. Germany totally exempts long-term tant, but right now, it is critical. Con- Mr. President, I ask unanimous con- capital gains on securities. In Japan, gress is in the midst of formulating a 7- sent that the text of the bill and addi- investors pay the lesser of 1 percent of year plan to balance the Federal budg- tional material be printed in the the sales price or 20 percent of the net et. The elements of this plan will have RECORD. gain. I think it is no coincidence, Mr. consequences far beyond this year or There being no objection, the mate- President, that Germany’s saving rate even beyond 2002 when we hope to rial was ordered to be printed in the is twice ours and Japan’s is three times achieve our goal. RECORD, as follows: as high as ours. In order to stay com- Crucial to the achievement of a bal- S. 959 petitive in the world, it is vital that anced budget is the underlying growth Be it enacted by the Senate and House of Rep- our tax laws provide the proper incen- and strength of our economy. Small resentatives of the United States of America in tive to attract the capital we need here changes in the behavior of the economy Congress assembled, in the United States. can make or break our ability to put SECTION 1. SHORT TITLE; AMENDMENT OF 1986 We are aware that some of the oppo- our fiscal house in order. Thus, espe- CODE. nents of capital gains tax reductions cially right now, we can ill afford to (a) SHORT TITLE.—This Act may be cited as have asserted that such changes would have our economy slow down. Such a the ‘‘Capital Formation Act of 1995’’. inordinately benefit the wealthy, leav- (b) AMENDMENT OF 1986 CODE.—Except as recession could make it impossible for otherwise expressly provided, whenever in ing little or no tax relief for the lower- us to balance the budget. With reces- this Act an amendment or repeal is ex- and middle-income classes. Nothing sion comes the fear of future job inse- pressed in terms of an amendment to, or re- could be further from the truth. In curity. Both Republicans and Demo- peal of, a section or other provision, the ref- fact, capital gains taxation affects crats alike can agree that the creation erence shall be considered to be made to a every homeowner, every employee who of new and secure jobs is imperative for section or other provision of the Internal participates in a stock purchase plan, a vibrant and growing economy. Revenue Code of 1986. or every senior citizen who relies on in- This is where a reduction of the cap- TITLE I—CAPITAL GAINS REFORM come from mutual funds for their basic ital gains rate can be so important. By Subtitle A—Capital Gains Deduction for needs during retirement. stimulating the economy and spurring Taxpayers Other Than Corporations The current law treatment of capital job creation, a cut in the capital gains SEC. 101. CAPITAL GAINS DEDUCTION. gains only gives preferential treatment rate can stave off the downturn that (a) IN GENERAL.—Part I of subchapter P of to those taxpayers who incomes lie in appears to be on its way. chapter 1 (relating to treatment of capital the highest tax brackets. Under the This is not just our opinion. Senator gains) is amended by redesignating section 1202 as section 1203 and by inserting after Capital Formation Act of 1995, the ben- LIEBERMAN and I received a letter yes- section 1201 the following new section: efits will tilt decidedly toward the mid- terday from Allen Sinai, a well-known dle-income taxpayer. A married couple and respected mainstream economist. ‘‘SEC. 1202. CAPITAL GAINS DEDUCTION. ‘‘(a) GENERAL RULE.—If for any taxable with $39,000 in taxable income who sells In his letter, Dr. Sinai concludes that year a taxpayer other than a corporation has a capital asset would, under our bill, ‘‘The enactment of this bipartisan Sen- a net capital gain, 50 percent of such gain pay only a 7.5 percent tax on the cap- ate bill* * *could well help offset shall be a deduction from gross income. ital gain. Further, this bill would slash forces contributing to the current cool- ‘‘(b) ESTATES AND TRUSTS.—In the case of the taxes retired seniors pay when they ing of the U.S. economy.’’ an estate or trust, the deduction shall be sell the assets they have accumulated Many Americans have expressed con- computed by excluding the portion (if any) of for income during retirement. cern about the wisdom of a tax reduc- the gains for the taxable year from sales or I also believe there is a tion while we are trying to balance the exchanges of capital assets which, under sec- tions 652 and 662 (relating to inclusions of misperception about the term ‘‘capital budget. However, Mr. President, we see amounts in gross income of beneficiaries of asset.’’ We tend to think of capital as- this bill as a change that will help us trusts), is includible by the income bene- sets as something only wealthy persons balance the budget. The evidence clear- ficiaries as gain derived from the sale or ex- have. In fact, a capital asset is a sav- ly shows that a cut in the capital gains change of capital assets.

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‘‘(c) COORDINATION WITH TREATMENT OF ing to exclusion for gain from certain small shall be treated as short-term capital gain in CAPITAL GAIN UNDER LIMITATION ON INVEST- business stock) shall not be taken into ac- the taxable year an amount equal to the sum MENT INTEREST.—For purposes of this sec- count.’’ of— tion, the net capital gain for any taxable (7) Subparagraph (C) of section 643(a)(6) is ‘‘(I) the amount allowed for the taxable year shall be reduced (but not below zero) by amended by inserting ‘‘(i)’’ before ‘‘there year under paragraph (1) or (2) of section the amount which the taxpayer takes into shall’’ and by inserting before the period ‘‘, 1211(b) or the adjusted taxable income for account as investment income under section and (ii) the deduction under section 1202 (re- such taxable year, whichever is the least, 163(d)(4)(B)(iii). lating to capital gains deduction) and the ex- plus ‘‘(d) TRANSITIONAL RULE.— clusion under section 1203 (relating to exclu- ‘‘(II) the excess of the amount described in ‘‘(1) IN GENERAL.—In the case of a taxable sion for gain from certain small business subclause (I) over the net short-term capital year which includes January 1, 1995— stock) shall not be taken into account’’. loss (determined without regard to this sub- ‘‘(A) the amount taken into account as the (8) Paragraph (4) of section 691(c) is amend- section) for such year.’’ net capital gain under subsection (a) shall ed by striking ‘‘sections 1(h), 1201, 1202, and (C) Subsection (b) of section 1212 is amend- not exceed the net capital gain determined 1211’’ and inserting ‘‘sections 1201, 1202, 1203, ed by adding at the end the following new by only taking into account gains and losses and 1211’’. paragraph: properly taken into account for the portion (9) The second sentence of section 871(a)(2) ‘‘(3) TRANSITIONAL RULE.—In the case of of the taxable year on or after January 1, is amended by inserting ‘‘or 1203’’ after ‘‘sec- any amount which, under this subsection 1995, and tion 1202’’. and section 1211(b) (as in effect for taxable ‘‘(B) if the net capital gain for such year (10)(A) Paragraph (2) of section 904(b) is years beginning before January 1, 1996), is exceeds the amount taken into account amended by striking subparagraph (A), by treated as a capital loss in the first taxable under subsection (a), the rate of tax imposed redesignating subparagraph (B) as subpara- year beginning after December 31, 1995, para- by section 1 on such excess shall not exceed graph (A), and by inserting after subpara- graph (2) and section 1211(b) (as so in effect) 28 percent. graph (A) (as so redesignated) the following shall apply (and paragraph (2) and section ‘‘(2) SPECIAL RULES FOR PASS-THRU ENTI- new subparagraph: 1211(b) as in effect for taxable years begin- TIES.— ‘‘(B) OTHER TAXPAYERS.—In the case of a ning after December 31, 1995, shall not apply) ‘‘(A) IN GENERAL.—In applying paragraph taxpayer other than a corporation, taxable to the extent such amount exceeds the total (1) with respect to any pass-thru entity, the income from sources outside the United of any capital gain net income (determined determination of when gains and losses are States shall include gain from the sale or ex- without regard to this subsection) for tax- properly taken into account shall be made at change of capital assets only to the extent of able years beginning after December 31, the entity level. foreign source capital gain net income.’’ 1995.’’ ‘‘(B) PASS-THRU ENTITY DEFINED.—For pur- (B) Subparagraph (A) of section 904(b)(2), as (13) Paragraph (1) of section 1402(i) is poses of subparagraph (A), the term ‘pass- so redesignated, is amended— amended by inserting ‘‘, and the deduction thru entity’ means— (i) by striking all that precedes clause (i) provided by section 1202 and the exclusion ‘‘(i) a regulated investment company, and inserting the following: provided by section 1203 shall not apply’’ be- ‘‘(ii) a real estate investment trust, ‘‘(A) CORPORATIONS.—In the case of a cor- fore the period at the end thereof. ‘‘(iii) an S corporation, poration—’’, and (14) Subsection (e) of section 1445 is amend- ‘‘(iv) a partnership, (ii) by striking in clause (i) ‘‘in lieu of ap- ed— ‘‘(v) an estate or trust, and plying subparagraph (A),’’. (A) in paragraph (1) by striking ‘‘35 percent ‘‘(vi) a common trust fund.’’ (C) Paragraph (3) of section 904(b) is (or, to the extent provided in regulations, 28 (b) DEDUCTION ALLOWABLE IN COMPUTING amended by striking subparagraphs (D) and percent)’’ and inserting ‘‘25 percent (or, to ADJUSTED GROSS INCOME.—Subsection (a) of (E) and inserting the following new subpara- the extent provided in regulations, 19.8 per- section 62 is amended by inserting after graph: cent)’’, and paragraph (15) the following new paragraph: ‘‘(D) RATE DIFFERENTIAL PORTION.—The (B) in paragraph (2) by striking ‘‘35 per- ‘‘(16) LONG-TERM CAPITAL GAINS.—The de- rate differential portion of foreign source net duction allowed by section 1202.’’ capital gain, net capital gain, or the excess cent’’ and inserting ‘‘25 percent’’. (c) TECHNICAL AND CONFORMING CHANGES.— of net capital gain from sources within the (15)(A) The second sentence of section (1) Section 1 is amended by striking sub- United States over net capital gain, as the 7518(g)(6)(A) is amended— section (h). case may be, is the same proportion of such (i) by striking ‘‘during a taxable year to (2) Paragraph (1) of section 170(e) is amend- amount as the excess of the highest rate of which section 1(h) or 1201(a) applies’’, and ed by striking ‘‘the amount of gain’’ in the tax specified in section 11(b) over the alter- (ii) by striking ‘‘28 percent (34 percent’’ material following subparagraph (B)(ii) and native rate of tax under section 1201(a) bears and inserting ‘‘19.8 percent (25 percent’’. inserting ‘‘50 percent (25⁄35 in the case of a to the highest rate of tax specified in section (B) The second sentence of section corporation) of the amount of gain’’. 11(b).’’ 607(h)(6)(A) of the Merchant Marine Act, 1936 (3) Subparagraph (B) of section 172(d)(2) is (D) Clause (v) of section 593(b)(2)(D) is is amended— amended to read as follows: amended— (i) by striking ‘‘during a taxable year to ‘‘(B) the deduction under section 1202 and (i) by striking ‘‘if there is a capital gain which section 1(h) or 1201(a) of such Code ap- the exclusion under section 1203 shall not be rate differential (as defined in section plies’’, and allowed.’’ 904(b)(3)(D)) for the taxable year,’’, and (ii) by striking ‘‘28 percent (34 percent’’ (4) The last sentence of section 453A(c)(3) is (ii) by striking ‘‘section 904(b)(3)(E)’’ and and inserting ‘‘19.8 percent (25 percent’’. amended by striking all that follows ‘‘long- inserting ‘‘section 904(b)(3)(D)’’. (d) CLERICAL AMENDMENT.—The table of term capital gain,’’ and inserting ‘‘the max- (11) The last sentence of section 1044(d) is sections for part I of subchapter P of chapter imum rate on net capital gain under section amended by striking ‘‘1202’’ and inserting 1 is amended by striking the item relating to 1201 or the deduction under section 1202 ‘‘1203’’. section 1202 and by inserting after the item (whichever is appropriate) shall be taken (12)(A) Paragraph (2) of section 1211(b) is into account.’’ amended to read as follows: relating to section 1201 the following new (5) Paragraph (4) of section 642(c) is amend- ‘‘(2) the sum of— items: ed to read as follows: ‘‘(A) the excess of the net short-term cap- ‘‘Sec. 1202. Capital gains deduction. ‘‘(4) ADJUSTMENTS.—To the extent that the ital loss over the net long-term capital gain, amount otherwise allowable as a deduction and ‘‘Sec. 1203. 50-percent exclusion for gain under this subsection consists of gain from ‘‘(B) one-half of the excess of the net long- from certain small business the sale or exchange of capital assets held term capital loss over the net short-term stock.’’ for more than 1 year or gain described in sec- capital gain.’’ tion 1203(a), proper adjustment shall be made (B) So much of paragraph (2) of section (e) EFFECTIVE DATE.— for any deduction allowable to the estate or 1212(b) as precedes subparagraph (B) thereof (1) IN GENERAL.—Except as otherwise pro- trust under section 1202 (relating to deduc- is amended to read as follows: vided in this subsection, the amendments tion for excess of capital gains over capital ‘‘(2) SPECIAL RULES.— made by this section shall apply to taxable losses) or for the exclusion allowable to the ‘‘(A) ADJUSTMENTS.— years ending after December 31, 1994. estate or trust under section 1203 (relating to ‘‘(i) For purposes of determining the excess (2) CONTRIBUTIONS.—The amendment made exclusion for gain from certain small busi- referred to in paragraph (1)(A), there shall be by subsection (c)(2) shall apply to contribu- ness stock). In the case of a trust, the deduc- treated as short-term capital gain in the tax- tions on or after January 1, 1995. tion allowed by this subsection shall be sub- able year an amount equal to the lesser of— (3) USE OF LONG-TERM LOSSES.—The amend- ject to section 681 (relating to unrelated ‘‘(I) the amount allowed for the taxable ments made by subsection (c)(12) shall apply business income).’’ year under paragraph (1) or (2) of section to taxable years beginning after December (6) The last sentence of section 643(a)(3) is 1211(b), or 31, 1995. amended to read as follows: ‘‘The deduction ‘‘(II) the adjusted taxable income for such (4) WITHHOLDING.—The amendment made under section 1202 (relating to deduction of taxable year. by subsection (c)(14) shall apply only to excess of capital gains over capital losses) ‘‘(ii) For purposes of determining the ex- amounts paid after the date of the enact- and the exclusion under section 1203 (relat- cess referred to in paragraph (1)(B), there ment of this Act.

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Subtitle B—Capital Gains Reduction for ‘‘For treatment of eligible gain not ex- (h) EFFECTIVE DATES.— Corporations cluded under subsection (a), see sections 1201 (1) IN GENERAL.—Except as provided in SEC. 111. REDUCTION OF ALTERNATIVE CAPITAL and 1202.’’ paragraph (2), the amendments made by this GAIN TAX FOR CORPORATIONS. (B) The heading for section 1203, as so re- section shall apply to stock issued after the (a) IN GENERAL.—Section 1201 is amended designated, is amended by striking ‘‘50-per- date of the enactment of this Act. to read as follows: cent’’ and inserting ‘‘partial’’. (2) SPECIAL RULE.—The amendments made (C) The table of sections for part I of sub- ‘‘SEC. 1201. ALTERNATIVE TAX FOR CORPORA- by subsections (a), (c), (e), and (f) shall apply TIONS. chapter P of chapter 1, as amended by sec- to stock issued after August 10, 1993. tion 101(d), is amended by striking ‘‘50-per- ‘‘(a) GENERAL RULE.—If for any taxable SEC. 202. ROLLOVER OF GAIN FROM SALE OF cent’’ in the item relating to section 1203 and year a corporation has a net capital gain, QUALIFIED STOCK. then, in lieu of the tax imposed by sections inserting ‘‘Partial’’. (b) EXCLUSION AVAILABLE TO CORPORA- (a) IN GENERAL.—Part III of subchapter O 11, 511, and 831 (a) and (b) (whichever is appli- TIONS.— of chapter 1 is amended by adding at the end cable), there is hereby imposed a tax (if such (1) IN GENERAL.—Subsection (a) of section the following new section: tax is less than the tax imposed by such sec- 1203, as redesignated by section 101, is ‘‘SEC. 1045. ROLLOVER OF GAIN FROM QUALIFIED tions) which shall consist of the sum of— amended by striking ‘‘other than a corpora- ‘‘(1) a tax computed on the taxable income SMALL BUSINESS STOCK TO AN- tion’’. OTHER QUALIFIED SMALL BUSINESS reduced by the amount of the net capital (2) TECHNICAL AMENDMENT.—Subsection (c) STOCK. gain, at the rates and in the manner as if of section 1203, as so redesignated, is amend- this subsection had not been enacted, plus ‘‘(a) NONRECOGNITION OF GAIN.—In the case ed by adding at the end the following new of any sale of qualified small business stock ‘‘(2) a tax of 25 percent of the net capital paragraph: gain. with respect to which the taxpayer elects the ‘‘(4) STOCK HELD AMONG MEMBERS OF CON- ‘‘(b) TRANSITIONAL RULE.— application of this section, eligible gain from TROLLED GROUP NOT ELIGIBLE.—Stock of a such sale shall be recognized only to the ex- ‘‘(1) IN GENERAL.—In the case of any tax- member of a parent-subsidiary controlled able year ending after December 31, 1994, and tent that the amount realized on such sale group (as defined in subsection (d)(3)) shall exceeds— beginning before January 1, 1996, in applying not be treated as qualified small business subsection (a), net capital gain for such tax- ‘‘(1) the cost of any qualified small busi- stock while held by another member of such ness stock purchased by the taxpayer during able year shall not exceed such net capital group.’’ gain determined by taking into account only the 60-day period beginning on the date of (c) REPEAL OF MINIMUM TAX PREFERENCE.— such sale, reduced by gain or loss properly taken into account for (1) IN GENERAL.—Subsection (a) of section the portion of the taxable year after Decem- ‘‘(2) any portion of such cost previously 57 is amended by striking paragraph (7). taken into account under this section. ber 31, 1994. (2) TECHNICAL AMENDMENT.—Subclause (II) ‘‘(2) SPECIAL RULE FOR PASS-THRU ENTI- of section 53(d)(1)(B)(ii) is amended by strik- This section shall not apply to any gain TIES.—Section 1202(d)(2) shall apply for pur- ing ‘‘, (5), and (7)’’ and inserting ‘‘and (5)’’. which is treated as ordinary income for pur- poses of paragraph (1). (d) STOCK OF LARGER BUSINESSES ELIGIBLE poses of this title. ‘‘(c) CROSS REFERENCES.— FOR EXCLUSION.— ‘‘(b) DEFINITIONS AND SPECIAL RULES.—For ‘‘For computation of the alternative tax— (1) Paragraph (1) of section 1203(d), as re- purposes of this section— ‘‘(1) in the case of life insurance companies, designated by section 101, is amended by ‘‘(1) QUALIFIED SMALL BUSINESS STOCK.— see section 801(a)(2), striking ‘‘$50,000,000’’ each place it appears The term ‘qualified small business stock’ has ‘‘(2) in the case of regulated investment and inserting ‘‘$100,000,000’’. the meaning given such term by section companies and their shareholders, see sec- (2) Subsection (d) of section 1203, as so re- 1203(c). tion 852(b)(3)(A) and (D), and designated, is amended by adding at the end ‘‘(2) ELIGIBLE GAIN.—The term ‘eligible ‘‘(3) in the case of real estate investment the following new paragraph: gain’ means any gain from the sale or ex- trusts, see section 857(b)(3)(A).’’ ‘‘(4) INFLATION ADJUSTMENT OF ASSET LIMI- change of qualified small business stock held (b) TECHNICAL AMENDMENT.—Clause (iii) of TATION.—In the case of stock issued in any for more than 5 years. section 852(b)(3)(D) is amended by striking calendar year after 1996, the $100,000,000 ‘‘(3) PURCHASE.—A taxpayer shall be treat- ‘‘65 percent’’ and inserting ‘‘75 percent’’. amount contained in paragraph (1) shall be ed as having purchased any property if, but (c) EFFECTIVE DATE.—The amendments increased by an amount equal to— for paragraph (4), the unadjusted basis of made by this section shall apply to taxable ‘‘(A) such dollar amount, multiplied by such property in the hands of the taxpayer years ending after December 31, 1994. ‘‘(B) the cost-of-living adjustment deter- would be its cost (within the meaning of sec- Subpart C—Capital Loss Deduction Allowed mined under section 1(f)(3) for the calendar tion 1012).’’ With Respect to Sale or Exchange of Prin- year in which the taxable year begins, deter- ‘‘(4) BASIS ADJUSTMENTS.—If gain from any cipal Residence mined by substituting ‘calendar year 1995’ sale is not recognized by reason of subsection for ‘calendar year 1992’ in subparagraph (B) (a), such gain shall be applied to reduce (in SEC. 121. CAPITAL LOSS DEDUCTION ALLOWED thereof. WITH RESPECT TO SALE OR EX- the order acquired) the basis for determining CHANGE OF PRINCIPAL RESIDENCE. If any amount as adjusted under the pre- gain or loss of any qualified small business (a) IN GENERAL.—Subsection (c) of section ceding sentence is not a multiple of $10,000, stock which is purchased by the taxpayer 165 (relating to limitation on losses of indi- such amount shall be rounded to the nearest during the 60-day period described in sub- viduals) is amended by striking ‘‘and’’ at the multiple of $10,000.’’ section (a). (e) REPEAL OF PER-ISSUER LIMITATION.— end of paragraph (2), by striking the period ‘‘(c) SPECIAL RULES FOR TREATMENT OF RE- Section 1203, as redesignated by section 101, at the end of paragraph (3) and inserting ‘‘; PLACEMENT STOCK.— is amended by striking subsection (b). and’’, and by adding at the end the following ‘‘(1) HOLDING PERIOD FOR ACCRUED GAIN.— (f) OTHER MODIFICATIONS.— new paragraph: For purposes of this chapter, gain from the (1) REPEAL OF WORKING CAPITAL LIMITA- ‘‘(4) losses arising from the sale or ex- disposition of any replacement qualified TION.—Paragraph (6) of section 1203(e), as re- change of the principal residence (within the small business stock shall be treated as gain designated by section 101, is amended— meaning of section 1034) of the taxpayer.’’ from the sale or exchange of qualified small (A) by striking ‘‘2 years’’ in subparagraph (b) EFFECTIVE DATE.—The amendment business stock held more than 5 years to the (B) and inserting ‘‘5 years’’, and made by subsection (a) shall apply to sales extent that the amount of such gain does not (B) by striking the last sentence. and exchanges after December 31, 1994, in exceed the amount of the reduction in the (2) EXCEPTION FROM REDEMPTION RULES taxable years ending after such date. basis of such stock by reason of subsection WHERE BUSINESS PURPOSE.—Paragraph (3) of (b)(4). TITLE II—SMALL BUSINESS VENTURE section 1203(c), as so redesignated, is amend- ‘‘(2) TACKING OF HOLDING PERIOD FOR PUR- CAPITAL STOCK ed by adding at the end the following new POSES OF DEFERRAL.—Solely for purposes of SEC. 201. MODIFICATIONS TO EXCLUSION OF subparagraph: applying this section, if any replacement GAIN ON CERTAIN SMALL BUSINESS ‘‘(D) WAIVER WHERE BUSINESS PURPOSE.—A qualified small business stock is disposed of STOCK. purchase of stock by the issuing corporation before the taxpayer has held such stock for (a) INCREASE IN EXCLUSION PERCENTAGE.— shall be disregarded for purposes of subpara- more than 5 years, gain from such stock (1) IN GENERAL.—Section 1203(a), as redesig- graph (B) if the issuing corporation estab- shall be treated eligible gain for purposes of nated by section 101, is amended— lishes that there was a business purpose for subsection (a). (A) by striking ‘‘50 percent’’ and inserting such purchase and one of the principal pur- ‘‘(3) REPLACEMENT QUALIFIED SMALL BUSI- ‘‘75 percent’’, and poses of the purchase was not to avoid the NESS STOCK.—For purposes of this subsection, (B) by striking ‘‘50-PERCENT’’ in the head- limitations of this section.’’ the term ‘replacement qualified small busi- ing and inserting ‘‘Partial’’. (g) QUALIFIED TRADE OR BUSINESS.—Section (2) CONFORMING AMENDMENTS.— 1203(e)(3), as redesignated by section 101, is ness stock’ means any qualified small busi- (A) Section 1203, as so redesignated, is amended by inserting ‘‘and’’ at the end of ness stock the basis of which was reduced amended by adding at the end the following subparagraph (C), by striking ‘‘, and’’ at the under subsection (b)(4).’’ new subsection: end of subparagraph (D) and inserting a pe- (b) CONFORMING AMENDMENTS.— ‘‘(l) CROSS REFERENCE.— riod, and by striking subparagraph (E). (1) Section 1016(a)(23) is amended—

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00112 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8953 (A) by striking ‘‘or 1044’’ and inserting ‘‘, duction Proposal would have positive im- on the verge of recession. There are 1044, or 1045’’, and pacts on U.S. economic growth, employment those who say we are already in a re- (B) by striking ‘‘or 1044(d)’’ and inserting ‘‘, and investment. The enactment of this bi- cession. One of the most effective 1044(d), or 1045(b)(4)’’. partisan Senate bill, whose main features in- things Congress can do to give our (2) The table of sections for part III of sub- clude a 50 percent exclusion for individual chapter O of chapter 1 is amended by adding capital gains (a top marginal rate of 19.8 per- economy a boost is to cut the capital at the end the following new item: cent), a 25 percent maximum capital gains gains tax rate. rate for corporations, and expansion of the We also have a shortage of savings ‘‘Sec. 1045. Rollover of gain from qualified and investment in this country. Our small business stock to another current 50 percent exclusion for small busi- qualified small business stock.’’ ness capital stock to 75 percent, as well as personal savings rate is now about one- other small business provisions, could well third of Japan’s rate and about one- (c) EFFECTIVE DATE.—The amendments help offset forces contributing to the current made by this section shall apply to stock half of Germany’s rate. We are ill pre- cooling of the U.S. economy. pared to deal with the effects of reces- sold or exchanged after the date of the enact- Indexing capital gains, not included in the ment of this Act. Hatch-Lieberman proposal, also would help sion, and we are ill prepared for the stimulate economic activity and has the economic battles of the global market- SUMMARY OF CAPITAL FORMATION ACT OF 1995 positive dimension of eliminating the distor- place. Unlike most other industrialized The Capital Formation Act of 1995 would tion from the taxation of illusory gains that nations, we stifle savings and invest- reduce the tax rate on capital gains and en- come from inflation. It would also be good to ment by over-taxing it. Nations like courage investment in new and growing busi- have. But of the two measures, capital gains ness enterprises through the following provi- Japan and Germany value capital rate reduction and indexing under limita- sions: gains. Germany exempts long-term tions set by the very important first priority capital gains from taxes for individuals I. BROAD-BASED TAX RELIEF (SIMILAR TO of moving the federal budget into balance, PROVISIONS IN HOUSE-PASSED H.R. 1215): the rate reductions and small business provi- and Japan taxes these gains at either 1 (1) Individual taxpayers would be allowed a sions provide more ‘‘bang-for-a-buck’’. percent of the sales price or 20 percent deduction of 50 percent of any net capital A stronger economy would be stimulated of the net gain. They reward invest- gain. The top effective tax rate on capital by the lower cost of capital from a reduction ment. gains would thus be 19.8 percent. in capital gains taxes, also business and per- Not only have we done too little to (2) Corporations would be subject to a max- sonal saving would rise, and more business encourage investment, too often it is imum capital gains tax rate of 25 percent. capital spending occur. This would come (3) Capital loss treatment would be allowed actively discouraged. To attack capital about, in part, from increased stock prices gains tax relief as a bonanza for the with respect to the sale of a taxpayer’s prin- and higher household net worth as investors cipal residence. shifted funds away from other investments wealthy is quite simply missing the (4) Indexing of capital assets would not be into stocks. The stronger economy would point. included. lead to increased hiring and new jobs. The benefits of this capital gains tax (5) Would be effective for taxable years cut will not flow just to people of ending after December 31, 1994. Wealth, income and profits improvement would raise spending, saving, and purchases wealth. Anyone who has stock, who has II TARGETED INCENTIVE TO INVEST IN SMALL of financial assets. money invested in a mutual fund, who BUSINESS ENTERPRISES: With a stronger economy and increased has investment property, who has a (1) Provides an exclusion of 75 percent of capital formation, greater entrepreneurship, capital gains from sale of investment in stock option plan at work has a stake as measured by new business incorporations, in capital gains tax relief. That rep- qualified small business stock held for more ought to raise productivity and thus the po- than five years. tential output of this economy. This supply- resents millions and millions of middle (2) Allows 100 percent deferral of capital side effect, although modest, would tend to class American families. We have infor- gains tax, after the five year period, if pro- limit any potential inflationary effect of the mation on 310 major firms that offer ceeds from the sale of qualified small busi- capital gains tax reductions. In addition, an their employees stock options and ness stock are rolled over within 60 days into unlocking effect on tax receipts from the un- another qualified small business stock. Gains stock purchase plans—companies like realized capital gains that would be realized accrued after the rollover would qualify for a GTE, Pfizer and Stanley Works, to ought to reduce the ex-post cost of this tax 50 percent deduction if held for more than name a few of the companies in my measure. one year, 75 percent exclusion if held for Of all the tax reductions being considered State. more than another five years, or at any by the Congress, the most beneficial, in a Each of those workers and their time, could be rolled over yet again into an- balanced way, to both the demand-side and spouses and children stand to gain other qualified small business stock for 100 supply-sides of the economy, potentially at from what we propose today. And these percent deferral. (3) Would be effective upon date of enact- the least net cost, would be the capital gains firms are just the tip of the iceberg. ment. tax rate reductions that are proposed. And we’re talking about direct bene- Example: A taxpayer buys qualified small On several criteria for judging changes in ficiaries—not even counting the many business stock in 1996 for $10,000. She sells taxes—allocative efficiency, economic middle and lower income people who the stock in 2002 for $20,000. She would be al- growth, savings and investment, inter- will get and keep jobs thanks to the in- national competition and fairness—capital lowed to exclude 75 percent of the gain, or vestments spurred by the capital gains $7,500. Of, if she chose to roll over the $20,000 gains tax reduction wins on almost all. The one exception is equity, because higher in- tax cut. proceeds from the sale into another qualified Of course, people who are wealthy small business stock within 60 days, she come families tend to hold proportionately would defer all tax until she ultimately sold more of the assets that could be subject to can benefit from this proposed capital the second stock. capital gains. gains cut, but that is the point. They Qualified small business stock is defined as Sincerely, will benefit if they invest more of their newly issued stock of corporations with up ALLEN SINAI. money in ways that help our economy to $100 million in assets and is an expansion Mr. LIEBERMAN. Mr. President, I and create jobs. That benefits every- of the current law targeted small business am delighted and proud to join Senator one. Government doesn’t make people capital gains exclusion added by the 1993 tax act. The changes in the targeted small busi- HATCH in this bipartisan introduction rich. But Government can and should ness stock incentive from current law would: of the Capital Formation Act of 1995. encourage people who have money to (1) Allow corporations to participate. As a Democrat, I have often borrowed use that money in a way that helps the (2) Remove the current law per-issuer limi- Paul Tsongas’ line that you can’t be economy as a whole. That is what this tation. pro-jobs and anti-business, because the is about. We are simply talking about (3) Repeal the working capital limitation. (4) Expand the list of qualified businesses jobs we want for people are going to letting people who are willing to risk in which the corporation may engage. come from business. The bill we are in- their money keep a little bit more of it troducing today is pro-jobs and pro- if they invest that money in our econ- LEHMAN BROTHERS, business. It gives people at all income omy. June 21, 1995. levels a reason to put their money in People who oppose cutting the cap- Hon. ORRIN HATCH, places where that money will help busi- ital gains tax are treating profit as if it U.S. Senate, nesses start and grow and that means were to be avoided. I believe that we Hon. JOSEPH LIEBERMAN, more jobs for Americans and more eco- should recognize profit as being an ad- U.S. Senate, Washington, DC. nomic prosperity for our country. vantage of the free market, and we DEAR SENATORS HATCH AND LIEBERMAN: We are introducing this bill at a time want to encourage it, reward it, help it The Hatch-Lieberman Capital Gains Tax Re- when the American economy may be spread its benefits throughout the

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00113 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8954 CONGRESSIONAL RECORD — SENATE June 22, 1995 economy to more and more of our peo- nesses. Moreover, a reduction in cap- SENATE RESOLUTION 103 ple. Opponents also frame this debate ital gains taxes would have a powerful At the request of Mr. DOMENICI, the in a winners-and-losers context that is impact on the entrepreneurial segment names of the Senator from Alabama totally inappropriate to what is at of the economy, thereby creating new [Mr. HEFLIN], the Senator from Rhode stake here. Because a rising tide of eco- start-up companies and new jobs. Island [Mr. CHAFEE], and the Senator nomic growth raises all ships, there I commend Senators HATCH and from Hawaii [Mr. AKAKA] were added as need be no losers when capital gains LIEBERMAN for working together to cosponsors of Senate Resolution 103, a taxes are cut by our bill. craft a bipartisan capital gains tax cut resolution to proclaim the week of Oc- Finally, let me point out that this proposal. I am proud to be the first co- tober 15 through October 21, 1995, as capital gains tax is broad but it also sponsor of this bill, and I sincerely National Character Counts Week, and has a targeted element. It aims at di- hope that many of our colleagues— for other purposes. recting investment in a way that maxi- Democrats and Republicans—will join f mizes the benefit for our economy. It this important effort to provide much promotes investment in small busi- needed tax relief and encourage further AMENDMENTS SUBMITTED nesses—the firms that are driving job economic growth. creation in our economy. It encourages f people to leave their investments in THE NATIONAL HIGHWAY SYSTEM ADDITIONAL COSPONSORS small businesses, start-up businesses DESIGNATION ACT OF 1995 for a longer period of time, giving en- S. 400 trepreneurs the kind of predictable At the request of Mrs. HUTCHISON, the cash flow they need to make their busi- name of the Senator from Utah [Mr. EXON AMENDMENT NO. 1462 nesses succeed. HATCH] was added as a cosponsor of S. Mr. EXON proposed an amendment to The targeted feature of our capital 400, a bill to provide for appropriate the bill (S. 440) to amend title 23, gains tax cut will be very helpful to the remedies for prison conditions, and for United States Code, to provide for the kinds of small businesses we need for other purposes. designation of the National Highway our future—the high technology busi- S. 401 System, and for other purposes; as fol- nesses that will be the source of many At the request of Mr. LEAHY, the lows: new jobs in the next century, and that name of the Senator from Massachu- At the appropriate place in the bill insert will be the source of our success in setts [Mr. KERRY] was added as a co- the following: global markets. These businesses are sponsor of S. 401, a bill to amend the SEC. 301. SHORT TITLE. high risk. They require a lot of capital Internal Revenue Code of 1986 to clarify This amendment may be cited as the ‘‘Fed- investment early on. The payoff is the excise tax treatment of hard apple eral Highway and Railroad Grade Crossing down the road. And the benefits for cider. Safety Act of 1995’’. America are, potentially, enormous. S. 495 SEC. . INTELLIGENT VEHICLE-HIGHWAY SYS- TEMS. Not just jobs and profits for Ameri- At the request of Mrs. KASSEBAUM, cans. But exciting new technological the names of the Senator from Wash- (a) IN GENERAL.—In implementing the In- innovations. New ways to educate our telligent Vehicle-Highway Systems Act of ington [Mr. GORTON] and the Senator 1991 (23 U.S.C. 307 note), the Secretary of children. New medicines and medical from Tennessee [Mr. FRIST] were added Transportation shall ensure that the Na- devices. New services, and new oppor- as cosponsors of S. 495, a bill to amend tional Intelligent Vehicle-Highway Systems tunities for recreation. All these posi- the Higher Education Act of 1965 to Program addresses, in a comprehensive and tive changes need the kind of invest- stabilize the student loan programs, coordinated manner, the use of intelligent ment our Capital Formation Act will improve congressional oversight, and vehicle-highway technologies to promote encourage. for other purposes. safety at railroad-highway grade crossings. In closing, let me say that I see this The Secretary of Transportation shall ensure S. 593 that two or more operational tests funded bill as the first leg of a tripod of tax re- At the request of Mr. HATCH, the lief for the American people. The sec- under such Act shall promote highway traf- name of the Senator from Florida [Mr. fic safety and railroad safety. ond leg is the President’s tax credit for MACK] was added as a cosponsor of S. SEC. . STATE HIGHWAY SAFETY MANAGEMENT children and tax deduction for higher 593, a bill to amend the Federal Food, SYSTEMS. education costs, which I support. Drug, and Cosmetic Act to authorize (a) AMENDMENT OF REGULATIONS.—The Sec- The third leg will be a research and the export of new drugs and for other retary of Transportation shall conduct a development tax credit that is being purposes. rulemaking proceeding to amend the regula- developed now and I hope will be intro- tions under section 500.407 of title 23, Code of S. 854 duced in the near future. Federal Regulations, to require that each With these tax proposals, we can help At the request of Mr. LUGAR, the highway safety management system devel- more Americans raise their kids today, name of the Senator from Pennsyl- oped, established, and implemented by a educate them tomorrow, and provide vania [Mr. SANTORUM] was added as a State shall, among countermeasures and pri- cosponsor of S. 854, a bill to amend the orities established under subsection (b)(2) of them with good job opportunities in that section— thriving American businesses in the fu- Food Security Act of 1985 to improve the agricultural resources conservation (1) include public railroad-highway grade- ture. crossing closure plans that are aimed at Mr. FAIRCLOTH. Mr. President, program, and for other purposes. eliminating high-risk or redundant crossings today I am joining with Senators S. 896 (as defined by the Secretary); HATCH and LIEBERMAN to introduce the At the request of Mr. CHAFEE, the (2) include railroad-highway grade-crossing Capital Formation Act of 1995. This bi- names of the Senator from Rhode Is- policies that limit the creation of new at- partisan effort sends a clear signal that land [Mr. PELL], the Senator from West grade crossings for vehicle or pedestrian Virginia [Mr. ROCKEFELLER], the Sen- traffic, recreational use, or any other pur- there is broad-based support for a cap- pose; and ator from Colorado [Mr. CAMPBELL], ital gains tax cut to stimulate job cre- (3) include plans for State policies, pro- ation, foster sound economic growth, and the Senator from Texas [Mrs. grams, and resources to further reduce death and enhance U.S. international com- HUTCHISON] were added as cosponsors of and injury at high-risk railroad-highway petitiveness. S. 896, a bill to amend title XIX of the grade crossings. Prior to my election to the Senate, I Social Security Act to make certain (b) DEADLINE.—The Secretary of Transpor- spent 45 years in the private sector technical corrections relating to physi- tation shall complete the rulemaking pro- running a small business and meeting a cians’ services, and for other purposes. ceeding described in subsection (a) and pre- scribe the required amended regulations, not payroll. I learned firsthand that a cut SENATE RESOLUTION 85 later than one year after the date of enact- in the capital gains tax rate would At the request of Mr. CHAFEE, the ment of this Act. stimulate the release of billions of dol- name of the Senator from Oklahoma SEC. . VIOLATION OF GRADE-CROSSING LAWS lars of unproductive capital, unlock [Mr. INHOFE] was added as a cosponsor AND REGULATIONS. economic assets, and encourage new in- of Senate Resolution 85, a resolution to (a) FEDERAL REGULATIONS.—Section 31311 vestment by both mature and new busi- express the sense of the Senate that ob- of title 49, United States Code, is amended by stetrician-gynecologists should be in- cluded in Federal laws relating to the provision of health care. VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00114 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8955 adding at the end the following new sub- essary to permit optimum use of available SEC. . section: funds to improve the safety of remaining The State of New Hampshire shall be ‘‘(h) GRADE-CROSSING VIOLATIONS.— crossings, including funds provided under deemed as having met the safety belt use law ‘‘(1) SANCTIONS.—The Secretary shall issue Federal law. requirements of section 153 of title 23 of the regulations establishing sanctions and pen- (3) Effective programs to reduce the num- U.S. Code, upon certification by the Sec- alties relating to violations, by persons oper- ber of unneeded railroad-highway grade retary of Transportation that the State has ating commercial motor vehicles, of laws crossings, and to close those crossings that achieved— and regulations pertaining to railroad-high- cannot be made reasonably safe (due to rea- (a) a safety belt use rate in each of fiscal way grade crossings. sons of topography, angles of intersection, years ending September 30, 1995 and Sep- ‘‘(2) MINIMUM REQUIREMENTS.—Regulations etc.), require the partnership of Federal, tember 30, 1996, of not less than 50 percent; issued under paragraph (1) shall, at a min- State, and local officials and agencies, and and affected railroads. imum, require that— (b) a safety belt use rate in each suc- (4) Promotion of a balanced national trans- ‘‘(A) the penalty for a single violation shall ceeding fiscal year thereafter of not less portation system requires that highway not be less than a 60-day disqualification of than the national average safety belt use planning specifically take into consideration the driver’s commercial driver’s license; and rate, as determined by the Secretary of the interface between highways and the na- ‘‘(B) any employer that knowingly allows, Transportation. permits, authorizes, or requires an employee tional railroad system. to operate a commercial motor vehicle in (b) PARTNERSHIP AND OVERSIGHT.—The Sec- violation of such a law or regulation shall be retary shall foster a partnership among Fed- subject to a civil penalty of not more than eral, State, and local transportation officials WARNER (AND OTHERS) $10,000.’’. and agencies to reduce the number of rail- AMENDMENT. NO. 1465 (b) DEADLINE.—The initial regulations re- road-highway grade crossings and to improve Mr. WARNER (for himself, Mr. quired under section 31310(h) of title 49, safety at remaining crossings. The Secretary United States Code, shall be issued not later shall make provision for periodic review to CHAFEE, and Mr. BAUCUS) proposed an than one year after the date of enactment of ensure that each State (including State sub- amendment to the bill S. 440, supra; as this Act. divisions and local governments) is making follows: substantial, continued progress toward (c) STATE REGULATIONS.—Section 31311(a) On page 22, between lines 2 and 3, insert achievement of the purposes of this section. of title 49, United States Code, is amended by the following: adding at the end the following new para- (c) CROSSING FREEZE.—If, upon review, and graph: after opportunity for a hearing, the Sec- SEC. 1ll. APPLICABILITY OF CERTAIN RE- retary determines that a State or political QUIREMENTS TO THIRD PARTY ‘‘(18) GRADE-CROSSING REGULATIONS.—The SELLERS. State shall adopt and enforce regulations subdivision thereof has failed to make sub- Section 133(d) of title 23, United States prescribed by the Secretary under section stantial, continued progress toward achieve- Code, is amended by adding at the end the 31310(h) of this title.’’. ment of the purposes of this section, then the Secretary shall impose a limit on the following: SEC. . SAFETY ENFORCEMENT. maximum number of public railroad-high- ‘‘(5) APPLICABILITY OF CERTAIN REQUIRE- (a) COOPERATION BETWEEN FEDERAL AND way grade crossings in that State. The limi- MENTS TO THIRD PARTY SELLERS.— STATE AGENCIES.—The National Highway tation imposed by the Secretary under this ‘‘(A) IN GENERAL.—Except as provided in Traffic Safety Administration, and the Of- subsection shall remain in effect until the subparagraphs (B) and (C), in the case of a fice of Motor Carriers within the Federal State demonstrates compliance with the re- transportation enhancement activity funded Highway Administration, shall on a con- quirements of this section. In addition, the from the allocation required under para- tinuing basis cooperate and work with the Secretary may, for a period of not more than graph (2), if real property or an interest in real property is to be acquired from a quali- National Association of Governors’ Highway 3 years after such a determination, require fied organization exclusively for conserva- Safety Representatives, the Commercial Ve- compliance with specific numeric targets for tion purposes (as determined under section hicle Safety Alliance, and Operation Life- net reductions in the number of railroad- 170(h) of the Internal Revenue Code of 1986), saver, Inc., to improve compliance with and highway grade crossings (including specifica- the organization shall be considered to be enforcement of laws and regulations per- tion of hazard categories with which such the owner of the property for the purpose of taining to railroad-highway grade crossings. crossings are associated). EPORT the Uniform Relocation Assistance and Real (b) R .—The Secretary of Transpor- (d) REGULATIONS.—The Secretary shall tation shall submit a report to Congress by Property Acquisition Policies Act of 1970 (42 issue such regulations as may be necessary U.S.C. 4601 et seq.). January 1, 1996, indicating (1) how the De- to carry out this section. partment worked with the above mentioned ‘‘(B) FEDERAL APPROVAL PRIOR TO INVOLVE- entities to improve the awareness of the MENT OF QUALIFIED ORGANIZATION.—If Federal highway and commercial vehicle safety and EXON AMENDMENT NO. 1463 approval of the acquisition of the real prop- law enforcement communities of regulations erty or interest predates the involvement of Mr. EXON proposed an amendment to a qualified organization described in sub- and safety challenges at railroad-highway the bill S. 440, supra; as follows: grade crossings, and (2) how resources are paragraph (A) in the acquisition of the prop- erty, the organization shall be considered to being allocated to better address these chal- At the appropriate place in the bill add the be an acquiring agency or person as de- lenges and enforce such regulations. following: SEC. . TRUCK LENGTH AND THE NORTH AMER- scribed in section 24.101(a)(2) of title 49, Code SEC. . CROSSING ELIMINATION; STATEWIDE ICAN FREE TRADE AGREEMENT. of Federal Regulations, for the purpose of CROSSING FREEZE. Any federal regulatory standard for single the Uniform Relocation Assistance and Real (a) STATEMENT OF POLICY.— trailer length issued pursuant to negotia- Property Acquisition Policies Act of 1970 (42 (1) Railroad-highway grade crossings tions and procedures authorized under the U.S.C. 4601 et seq.). present inherent hazards to the safety of North American Free Trade Agreement, ‘‘(C) ACQUISITIONS ON BEHALF OF RECIPIENTS railroad operations and to the safety of per- shall not exceed fifty three feet. OF FEDERAL FUNDS.—If a qualified organiza- sons using those crossings. It is in the public tion described in subparagraph (A) has con- interest— tracted with a State highway administration (A) to eliminate redundant and high risk SMITH (AND GREGG) AMENDMENT or other recipient of Federal funds to acquire railroad-highway grade crossings; and NO. 1464 the real property or interest on behalf of the (B) to limit the creation of new crossings recipient, the organization shall be consid- Mr. CHAFEE (for Mr. SMITH for him- to the minimum necessary to provide for the ered to be an agent of the recipient for the self and Mr. GREGG) proposed an reasonable mobility of the American people purpose of the Uniform Relocation Assist- and their property, including emergency ac- amendment to the bill S. 440, supra; as ance and Real Property Acquisition Policies cess. follows: Act of 1970 (42 U.S.C. 4601 et seq.).’’. (2) Elimination of redundant and high-risk At the appropriate place on the bill add the On page 26, between lines 8 and 9, insert railroad-highway grade crossings is nec- following new section: the following:

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(3) ORANGE STREET BRIDGE, MISSOULA, MON- (E) in the subsection heading of section On page 57, line 8, strike ‘‘and’’ at the end. TANA.—Notwithstanding section 149 of title 6056(a), by striking ‘‘IVHS’’ and inserting On page 57, strike lines 9 through 11. 23, United States Code, or any other law, a ‘‘ITS’’; project to construct new capacity for the Or- (F) in the subsection heading of each of ange Street Bridge in Missoula, Montana, subsections (a) and (b) of section 6058, by NICKLES AMENDMENT NO. 1466 shall be eligible for funding under the con- striking ‘‘IVHS’’ and inserting ‘‘ITS’’; and gestion mitigation and air quality improve- (G) in the paragraph heading of section Mr. NICKLES proposed an amend- ment program established under the section. 6059(1), by striking ‘‘IVHS’’ and inserting ment to the bill S. 440, supra; as fol- On page 26, between lines 13 and 14, insert ‘‘ITS’’. lows: the following: (4) Section 310(c)(3) of the Department of At the appropriate place in title I, insert (c) TRAFFIC MONITORING, MANAGEMENT, AND Transportation and Related Agencies Appro- the following: CONTROL FACILITIES AND PROGRAMS.—The priations Act, 1995 (Public Law 103–331; 23 first sentence of section 149(b) of title 23, U.S.C. 104 note), is amended by striking ‘‘in- SEC. 1 . INTERCITY RAIL INFRASTRUCTURE IN- United States Code, is amended— VESTMENT FROM MASS TRANSIT AC- telligent vehicle highway systems’’ and in- COUNT OF HIGHWAY TRUST FUND. (1) in paragraph (2), by striking ‘‘or’’ at the serting ‘‘intelligent transportation sys- Section 5323 of title 49, United States Code, end; tems’’. is amended by adding at the end the fol- (2) in paragraph (3), by striking the period (5) Section 109(a) of the Hazardous Mate- at the end and inserting ‘‘; or’’; and rials Transportation Authorization Act of lowing new subsection: (3) by adding at the end the following: 1994 (Public Law 103–311; 23 U.S.C. 307 note) is ‘‘(m) INTERCITY RAIL INFRASTRUCTURE IN- ‘‘(4) to establish or operate a traffic moni- amended— VESTMENT.—Any assistance provided to a toring, management, and control facility or (A) by striking ‘‘Intelligent Vehicle-High- State that does not have Amtrak service as program if the Secretary, after consultation way Systems’’ each place it appears and in- of date of enactment of this Act from the with the Administrator of the Environ- serting ‘‘Intelligent Transportation Sys- Mass Transit Account of the Highway Trust mental Protection Agency, determines that tems’’; and Fund may be used for capital improvements the facility or program is likely to con- (B) by striking ‘‘intelligent vehicle-high- to, and operating support for, intercity pas- tribute to the attainment of a national am- way system’’ and inserting ‘‘intelligent senger rail service.’’. bient air quality standard.’’. transportation system’’. On page 30, strike line 14 and insert the fol- (6) Section 5316(d) of title 49, United States lowing: Code, is amended— STEVENS AMENDMENT NO. 1467 SEC. 119. INTELLIGENT TRANSPORTATION SYS- (A) in the subsection heading, by striking Mr. STEVENS proposed an amend- TEMS. ‘‘INTELLIGENT VEHICLE-HIGHWAY’’ and insert- ment to the bill S. 440, supra, as fol- On page 30, lines 15 and 16, strike ‘‘INTEL- ing ‘‘INTELLIGENT TRANSPORTATION’’; and LIGENT VEHICLE-HIGHWAY SYSTEMS’’ and in- (B) by striking ‘‘intelligent vehicle-high- lows: sert ‘‘INTELLIGENT TRANSPORTATION SYS- way’’ each place it appears and inserting ‘‘in- At the appropriate place in title I of the TEMS’’. telligent transportation’’ bill insert the following new section: On page 31, lines 1 and 2, strike ‘‘INTEL- On page 33, line 19, strike ‘‘intelligent vehi- SEC. . MORATORIUM. LIGENT VEHICLE-HIGHWAY SYSTEMS’’ and in- cle-highway systems’’ and insert ‘‘intelligent (a) IN GENERAL.—Notwithstanding any sert ‘‘INTELLIGENT TRANSPORTATION SYS- transportation systems’’. other provision of law, no agency of the Fed- TEMS’’. On page 36, line 12, strike the quotation eral government may take any action to pre- On page 31, lines 10 and 11, strike ‘‘intel- marks and the following period. ligent vehicle-highway systems’’ and insert pare, promulgate, or implement any rule or On page 36, between lines 12 and 13, insert ‘‘intelligent transportation systems’’. regulation addressing rights of way author- the following: On page 31, between lines 20 and 21, insert ized pursuant to Revised Statutes 2477 (43 ‘‘(24) State Route 168 (South Battlefield the following: U.S.C. 932), as such law was in effect prior to Boulevard), Virginia, from the Great Bridge (c) CONFORMING AMENDMENTS.— October 21, 1976. Bypass to the North Carolina State line.’’. (1) The table in section 1107(b) of the Inter- (b) This section shall cease to have any On page 38, beginning on line 2, strike ‘‘and modal Surface Transportation Efficiency Act force or effect after December 1, 1995. of 1991 (Public Law 102–240; 105 Stat. 2048) is shall not’’ and all that follows through ‘‘pro- amended— gram’’ on line 4. f (A) in item 10, by striking ‘‘(IVHS)’’ and On page 40, strike lines 1 through 3. inserting ‘‘(ITS)’’; and On page 43, between lines 14 and 15, insert NOTICE OF HEARINGS the following: (B) in item 29, by striking ‘‘intelligent/ve- PERMANENT SUBCOMMITTEE ON INVESTIGATIONS hicle highway systems’’ and inserting ‘‘intel- SEC. 1ll. REPORT ON ACCELERATED VEHICLE ligent transportation systems’’. RETIREMENT PROGRAMS. Mr. ROTH. Mr. President, I would (2) Section 6009(a)(6) of the Intermodal Sur- Not later than 180 days after the date of like to announce for the information of face Transportation Efficiency Act of 1991 enactment of this Act, the Administrator of the Senate and the public that the Per- (Public Law 102–240; 105 Stat. 2176) is amend- the Environmental Protection Agency shall manent Subcommittee on Investiga- ed by striking ‘‘intelligent vehicle highway transmit to Congress a report evaluating the tions of the Committee on Govern- systems’’ and inserting ‘‘intelligent trans- effectiveness of all accelerated vehicle re- mental Affairs, will hold hearings re- portation systems’’. tirement programs described in section garding the investigation of friendly (3) Part B of title VI of the Intermodal 108(f)(1)(A)(xvi) of the Clean Air Act (42 fire incident during the Persian Gulf Surface Transportation Efficiency Act of U.S.C. 7408(f)(1)(A)(xvi)) in existence on the 1991 (Public Law 102–240; 23 U.S.C. 307 note) is date of enactment of this Act. The report war. amended— shall evaluate— This hearing will take place on (A) by striking the part heading and in- (1) the certainties of emissions reductions Thursday, June 29, 1995, in room 342 of serting the following: gained from each program; the Dirksen Senate Office Building. ‘‘PART B—INTELLIGENT (2) the variability of emissions of retired For further information, please contact TRANSPORTATION SYSTEMS’’; vehicles; Harold Damelin of the subcommittee (3) the reduction in the number of vehicle (B) in section 6051, by striking ‘‘Intelligent staff at 224–3721. Vehicle-Highway Systems’’ and inserting miles traveled by the vehicles retired as a re- ‘‘Intelligent Transportation Systems’’; sult of each program; f (C) by striking ‘‘intelligent vehicle-high- (4) the subsequent actions of vehicle own- way systems’’ each place it appears and in- ers participating in each program concerning AUTHORITY FOR COMMITTEES TO serting ‘‘intelligent transportation sys- the purchase of a new or used vehicle or the MEET tems’’; use of such a vehicle; (D) in section 6054— (5) the length of the credit given to a pur- COMMITTEE ON THE JUDICIARY (i) in subsection (a)(2)(A), by striking ‘‘in- chaser of a retired vehicle under each pro- Mr. WARNER. Mr. President, I ask telligent vehicle-highway’’ and inserting gram; unanimous consent that the Com- ‘‘intelligent transportation systems’’; and (6) equity impacts of the programs on the (ii) in the subsection heading of subsection used car market for buyers and sellers; and mittee on the Judiciary be authorized (b), by striking ‘‘INTELLIGENT VEHICLE-HIGH- (7) such other factors as the Administrator to hold a business meeting during the WAY SYSTEMS’’ and inserting ‘‘INTELLIGENT determines appropriate. session of the Senate on Thursday, TRANSPORTATION SYSTEMS’’; On page 57, line 4, insert ‘‘and’’ at the end. June 22, 1995, at 10:15 a.m. in SD 226.

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00116 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8957 The PRESIDING OFFICER. Without tificial barriers to competition in the to means testing. The amendment objection, it is so ordered. phone services markets as well as in passed. COMMITTEE ON LABOR AND HUMAN RESOURCES the cable, equipment manufacturing, Finally, I want to set forth in detail Mr. WARNER. Mr. President, I ask and other markets. I, therefore, sup- my reasons for supporting McCain unanimous consent that the Com- ported final passage of S. 652. amendment No. 1276. This amendment mittee on Labor and Human Resources Much of the debate concerning the would jettison our current crazy-quilt be authorized to meet for a hearing on bill focused on the issue of RBOC entry of universal-service subsidies, in favor the Oversight of OSHA, during the ses- into the long-distance market. An of a means tested voucher system. The sion of the Senate on Thursday, June amendment offered by Senator MCCAIN, universal-service subsidies and rate- 22, 1995, at 9:30 a.m. No. 1261, would have defined the term averaging schemes currently in place The PRESIDING OFFICER. Without ‘‘public interest’’ as it relates to the have as their principal effect the per- objection, it is so ordered. FCC’s decision as to whether to allow a petuation of telephone service monopo- Bell to enter the long-distance market. lies in rural areas. These schemes ex- SUBCOMMITTEE ON INDIAN AFFAIRS The bill as introduced did not define clude competitors from rural telephone Mr. WARNER. Mr. President, I ask that term. I voted for the McCain service markets in two ways. First, by unanimous consent that the Com- amendment because the absence of keeping rural rates artificially low, mittee on Indian Affairs be authorized such a definition would give the FCC rate averaging reduces if not elimi- to meet on Thursday, June 22, 1995, be- virtually absolute discretion as to nates the incentive of would-be com- ginning at 9:30 a.m., in room G–50 of whether a Bell can enter the long-dis- petitors to enter the rural services the Dirksen Senate Office Building on tance market—or, put differently, as to market. Second, the subsidization of S. 487, a bill to amend the Indian Gam- whether consumers will enjoy the bene- existing providers effectively bars the ing Regulatory Act, and for other pur- fits of full competition in that market. entry into those markets of competi- poses. The Senate’s rejection of McCain tors who would not be similarly sub- The PRESIDING OFFICER. Without amendment No. 1261 was part of the sidized. In contrast, a voucher system objection, it is so ordered. reason for my vote against the Dorgan- would not distort market signals or SUBCOMMITTEE ON DRINKING WATER, Thurmond amendment, No. 1265. The suppress competition in the markets FISHERIES, AND WILDLIFE Dorgan-Thurmond amendment would whose customers it seeks to help. Thus, Mr. WARNER. Mr. President, I ask have added yet another layer of regu- the need-based voucher system de- unanimous consent that the Sub- latory obstacles to the RBOC’s entry scribed in the McCain amendment committee on Drinking Water, Fish- into the long-distance market. The bill would be vastly preferable to the cur- eries, and Wildlife be granted permis- already would have required a Bell to rent and proposed cost-based schemes, sion to meet Thursday, June 22, at 10 satisfy an extensive competitive check- which make the inner-city poor pay a.m., to conduct an oversight hearing list and to secure the FCC’s public in- higher phone rates so that customers on the National Marine Fisheries Serv- terest determination before entering in remote areas, including wealthy re- ice policy on spills at Columbia River the long-distance market; and even sort areas, can enjoy lower rates.∑ hydropower dams, gas bubble trauma then, the Bell could enter that market f in endangered salmon, and the sci- only through a separate subsidiary. entific methods used under the Endan- Moreover, the bill would for the first THE ABOLITION OF THE DEATH gered Species Act which gave rise to time allow utility and cable companies PENALTY IN SOUTH AFRICA that policy. to compete for the Bells’ local cus- ∑ Ms. MOSELEY-BRAUN. Mr. Presi- The PRESIDING OFFICER. Without tomers, thereby further reducing the dent, the new Government of South Af- objection, it is so ordered. Bells’ ability to subsidize predatory rica has just abolished the death pen- SUBCOMMITTEE ON FORESTS AND PUBLIC LAND pricing in the long-distance market by alty. MANAGEMENT raising the prices paid by local cus- As we all know, South Africa has un- Mr. WARNER. Mr. President, I ask tomers. Thus, the Dorgan-Thurmond dergone incredible changes in the last 2 unanimous consent that the Sub- amendment, by requiring the Bells ad- years. They have achieved nothing committee on Forests and Public Land ditionally to secure the approval of the short of a revolution—peacefully, via Management of the Committee on En- Department of Justice before entering the ballot box. They have abolished ergy and Natural Resources be granted the long-distance market, would only apartheid and rebuilt their government permission to meet during the session delay unnecessarily the arrival of full and institutions to reflect real major- of the Senate on Thursday, June 22, competition in that market. To para- ity rule. The American people can take 1995, for purposes of conducting a sub- phrase Holmes, three layers of regu- pride in the fact that American leader- committee hearing which is scheduled latory obstacles is enough. ship in imposing international sanc- to begin at 9:30 a.m. The purpose of From the outset of the Senate’s con- tions played a significant role in mak- this hearing is to receive testimony on sideration of S. 652, I was concerned ing this negotiated revolution possible, S. 852, a bill to provide for uniform that the bill might mandate discounted and the Government of Nelson Mandela management of livestock grazing on telecommunications rates for selected a reality. Federal land, and for other purposes. groups. The cost of such mandatory South Africa has looked to the The PRESIDING OFFICER. Without discounts is inevitably passed on to United States as a model as it creates objection, it is so ordered. customers whose rates are not set by its institutions of government. I re- f Congress, and thus often falls, at least cently met with member of Parliament in part, on poorer customers who can- Johnny DeLange, chairman of the ADDITIONAL STATEMENTS not muster the lobbying clout nec- equivalent of our Judiciary Committee essary to secure special treatment. in the South African Parliament, who Moreover, apart from the equities of was in the United States to study how THE TELECOMMUNICATIONS BILL the issue, I think Government exceeds Congress and the Justice Department ∑ Mr. ABRAHAM. Mr. President, I its legitimate role when it sets special interact. Likewise, the new Constitu- want to take a few moments to set telecommunications rates for favored tional Court, the equivalent of the Su- forth the reasoning behind a number of groups. I, therefore, supported McCain preme Court, has looked to American my votes with respect to S. 652, the amendment No. 1262, which would have jurisprudence for guidance in a variety telecommunications bill. Although S. struck bill language, contained in sec- of areas of the law. 652 would not deregulate the tele- tion 310, that would force tele- As a lawyer and a Senator, I take communications industry as much or communications providers to provide pride in the fact that South Africa is as quickly as I would like, it eventu- their services to schools and hospitals looking to our legal system and our ally would lead to competition in a at discounted rates. After the Senate body of laws as a model. But in the number of telecommunications mar- rejected amendment 1262, I voted for case of the death penalty, after thor- kets that currently are monopolistic. another McCain amendment, No. 1285, oughly examining its practice in the Specifically, the bill would remove ar- that at least would subject section 310 United States, the 11 justices of the

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00117 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8958 CONGRESSIONAL RECORD — SENATE June 22, 1995 Constitutional Court of South Africa MAJ. GEN. DAVID P. DE LA great responsibility from 15 March 1988 to 27 unanimously concluded the death pen- VERGNE March 1995. In all assignments, General de la Vergne displayed unexcelled leadership and alty is cruel and unusual punishment ∑ Mr. GORTON. Mr. President, I am subject to elements of arbitrariness absolute dedication. As Chief of Staff and honored to offer my congratulations to later Deputy Commander, 124th United and the possibility of error. Maj. Gen. David P. de la Vergne, who States Army Reserve Command (ARCOM), The case before the Constitutional retires on June 25, 1995, as commanding Fort Lawton, Washington, he displayed ex- Court, Makwanyane and McHunu versus general and civilian executive officer of ceptional vision, skill, and tenacity in the State, stemmed from an intra-family Fort Lawton, WA. management and direction of major Army murder-for-hire which occurred in July The general’s career has been exem- activities. Culminating his distinguished 1987. Five people died when their hut plary. A native of Meriden, CT, he service as Commander of the 124th ARCOM, was set on fire. Both men who carried General de la Vergne took immediate steps graduated from the Citadel and was to provide the ARCOM with a positive image out the attack and the man who hired commissioned a second lieutenant in of its leaders and mission. General de la them were convicted of murder and 1961. After attending the infantry offi- Vergne’s energetic approach for improve- sentenced to death. The issues raised cer’s basic and counterintelligence offi- ment in training, logistics, and recruiting re- before the court concerned not the cers course, he served as special agent sulted in the molding of a mission-capable facts of the crime, but rather the con- in charge of the Hartford Resident Of- unit. His dynamic leadership and unique stitutionality of the death penalty. At- fice of the 108th Intelligence Corps managerial abilities were instrumental in torneys for the defendants cited the Group. He did tours in Germany as op- achieving significant improvements in the long history of racial discrimination readiness posture of the 124th ARCOM ele- erations officer of the 207th Military ments. This was most evident during the mo- and the arbitrary application of the Intelligence Detachment and as com- bilization of nine units to support Operation death penalty in the United States as mander of the Columbia Field Office of DESERT SHIELD and Operation DESERT grounds for outlawing this ultimate the 111th Military Intelligence Group. STORM. Major General de la Vergne’s un- punishment. The South African court Posted to I Corps Advisory Group, Mili- swerving dedication, outstanding service, heard that the United States practice tary Assistance Command Vietnam, he professional skill, and superb leadership re- of leaving capital punishment to the served as order of battle advisor and flect great credit upon him, the United discretion of the judge and jury opens sector intelligence advisor, and then States Army Reserve and the United States Army.’’ the door to the inevitable influences of returned from Vietnam to serve as se- race, poverty, and the quality of rep- curity officer for the Defense Language I want to thank Major General de la resentation. Institute in Monterey, CA. Vergne for his many years of service to In effect, the South African court After leaving active military duty in this country, and I wish him and his ∑ came to the same conclusion as former 1971, Major General de la Vergne was wife, Elinor, all the best. United States Supreme Court Justice assigned to the 6211th U.S. Army Garri- f Harry Blackmun, who concluded that son, Presidio of San Francisco, where the death penalty experiment has he served as inspector general, S–1, RECOGNIZING THE ACHIEVEMENTS failed. Although Blackmun repeatedly comptroller, and deputy commander OF DISTINGUISHED ANNE ARUN- voted to uphold capital punishment in before leaving to assume command of DEL COUNTY YOUTH the belief that the law could be chan- the 2d Battalion, 363d Regiment, 4th ∑ Ms. MIKULSKI. Mr. President, it is neled to guarantee its fair application, Brigade, 91st Division, training; Re- with a great deal of pride and satisfac- he ultimately decided that he could no turning to the 6211th in 1981, he served tion that I commend to your attention longer ‘‘Tinker with the machinery of as the garrison commander for 3 years a number of young adults from Anne death.’’ before leaving for the 124th ARCOM, Arundel County. These outstanding in- South Africa had a history of apply- where he served as deputy chief of dividuals are listed below, and they are ing the death penalty in an even more staff, resource management, as deputy outstanding because of their character, arbitrary fashion than the United chief of staff, operations, and then as their academic achievements, and their States. Until the use of the death pen- chief of staff and deputy commander contributions to their home commu- alty was suspended in February 1990, prior to his current assignment as com- nities. South Africa had one of the highest manding general. Three years ago, an organization was rates of judicial executions in the Major General de la Vergne is a grad- formed in Anne Arundel County by one world. The previous government exe- uate of the Command and General Staff of my college classmates, Dr. Orlie cuted 1,217 people between 1980 and College and the Army War College, and Reid. He and other caring individuals 1989. And, as in the United States, it he has completed courses at the Intel- gathered together to discuss what was much more common for a black de- ligence School, the Defense Language could be done to encourage our youth fendant to be sentenced to death than Institute, the Industrial College of the to perform at their highest levels and a white defendant. In 1988, 47 percent of Armed Forces, the Inspector General to be community minded, to reinforce black defendants convicted of mur- School, the U.S. Army Institute for Ad- the positive and discourage the nega- dering whites were sentenced to death; ministration and the Army Logistics tive. The Concerned Black Males of An- 2.5 percent of blacks convicted of mur- Management Center. napolis has done just that since its in- dering other blacks were sentenced to His decorations include the Bronze ception in 1992. death; while no whites convicted of Star, the Meritorious Service Medal On Monday, June 26, 1995, CBM is rec- killing blacks were given the death with Oak Leaf Cluster, the Air Medal, ognizing 88 young men and women at penalty. the Joint Service Commendation its first annual awards dinner. These I want to emphasize that the aboli- Medal, the Army Commendation Medal students were nominated by church, tion of the death penalty will not re- with two Oak Leaf Clusters, the Repub- school and community leaders. I ex- sult in impunity for those who commit lic of Vietnam Cross of Gallantry with tend my heartiest congratulations to the most heinous of crimes. But South Bronze Star and the Republic of Viet- them all for their efforts, and to the or- Africa concluded that even in the coun- nam Honor Medal First Class. ganizers of the Awards Dinner and the try they looked to for guidance, the Time and time again, the general has founders of Concerned Black Males of United States, the death sentence had proven his mettle and displayed most Annapolis. A concerned community not been shown to be materially more excellent leadership. To quote from the working with youth sets a fine exam- effective at deterring or preventing citation for his Distinguished Service ple, and CBM has proven over the years murder than the alternative sentence Medal, which will be awarded on the that it works. My best to all of them.∑ of life imprisonment. occasion of his official change of com- mand ceremony on June 25, 1995: f The Government of South Africa has . . . for exceptionally meritorious service come to the decision that the recogni- WHITE HOUSE CONFERENCE ON of great responsibility: SMALL BUSINESS tion of the right to life and dignity is Major General David P. de la Vergne dis- incompatible with the death penalty. I tinguished himself by exceptionally meri- ∑ Mr. KYL. Mr. President, the White applaud them for it.∑ torious service in successive positions of House Conference on Small Business

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00118 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8959 met earlier this month to consider the Government when all administra- tion Act at the White House Con- issues of concern to small business men tive costs to individuals, businesses, ference. That’s why my bill is sup- and women around the country, and to and government are considered.’’ ported by the Small Business Council make recommendations to this Con- No. 5: Reform the Superfund law— of America, the Small Business Sur- gress about what it can do to make 1,371 votes. Delegates recommended the vival Committee, Americans for Tax Federal policy more responsive to elimination of retroactive and strict li- Reform, and the 60 Plus Association. small business’s needs. ability prior to 1987, and called for The National Federation of Inde- The men and women who attended sound science, realistic risk assess- pendent Business and the Independent the conference represent a vital eco- ments, and cost-benefit analyses in as- Forest Products Association have nomic force in the country. There are sessing health and environmental haz- called for estate tax reform. more than 20 million small businesses ards. Mr. President, I want to conclude by in the United States, and they rep- Mr. President, we ought to act thanking the delegates to the White resent the fastest growing sector of the promptly on all of these issues; bring House Conference for their thoughtful, economy. Small businesses provided all them to the floor, debate them and hard work. And, I wanted to make spe- of the net new jobs created between vote on each of them at the earliest cial note of the work of Mary Lou 1987 and 1992. They employed 54 percent date practicable. I wanted to begin Bessette, who chaired the Arizona of the private work force in 1990. Small today, however, by speaking about one State delegation and carried out her businesses provide two of every three of the top five resolutions in par- responsibilities in an exemplary man- new workers with their first job. Small ticular, the one that received the ner. She kept the group focused and on businesses contributed 40 percent of fourth highest number of votes, a reso- track, and was well respected by its the Nation’s new high-technology jobs lution that endorsed the Family Herit- members. Another member of the dele- during the past decade. Together, they age Preservation Act, S. 628. gation, Sandy Abalos, served as Ari- truly represent the engine that drives I introduced that measure earlier zona tax chair. Her hard work and de- our Nation’s economy. this year with the distinguished Sen- termination were reflected in the suc- So when small business leaders speak ator from North Carolina, Senator cessful outcome of the Conference. out on issues of concern, it would be- HELMS. Representative CHRIS COX in- And finally, I wanted to commend hoove the members of the Senate and troduced the companion bill in the Joy Staveley, who was my appoint- the House to listen. These small busi- House of Representatives. ment to the Conference, and who ness people are the innovators and the The Federal estate tax is actually served as environmental chair for the job creators. They are the ones on the one of the most wasteful and unfair State. All four of her environmental front lines who have to wade through taxes on the books today, and it is no resolutions made it into the top 60 government rules and regulations wonder that small business leaders are final recommendations to emerge from every day, pay the taxes, and still find urging its repeal. By confiscating up to the Conference session. a way to compete in domestic and 55 percent of a family’s after-tax sav- A job well done to all the members of international markets. ings, it penalizes people for a lifetime Arizona’s delegation and to all the del- If we are interested in economic of hard work, savings, and investment. egates from around the country. Now growth and opportunity in this coun- It hurts small business and costs jobs. it’s time for the Senate and House to try—if we want an economy that is The result is that people spend their act on the good advice from the leaders healthy and creating new jobs, and can time, energy, and money trying to of the Nation’s small businesses. I in- compete around the world—we ought avoid the tax—for example, by setting vite my colleagues to join me as a co- to take note of what small business- up trusts and other devices—rather sponsor of the Family Heritage Preser- men and women have to tell us. than devoting their resources to more vation Act, and to begin addressing the And, Mr. President, this is what the productive economic uses. other recommendations of the White delegates to the White House Con- The estate tax hits small family busi- House Conference as well.∑ ference had to say—these are the top- nesses particularly hard. It strips com- f ten vote-getting resolutions approved panies of much-needed capital at the by the Conference: worst possible time—under a change of THE 25TH ANNUAL IRISH No. 1: Clarify the definition of inde- ownership and oversight following the HERITAGE FESTIVAL pendent contractor for tax purposes— principle owner’s death. ∑ Mr. BRADLEY. Mr. President, our 1,471 votes. The Conference called on According to a 1993 survey by Prince country is a remarkable mosaic—a Congress to recognize the legitimacy of and Associates—a Stratford, CT re- mixture of races, languages, an independent contractor; to develop search and consulting firm—9 out of 10 ethnicities, and religions—that grows more realistic and consistent guide- family businesses that failed within 3 increasingly diverse with each passing lines for IRS auditors, courts, employ- years of the principal owner’s death year. Nowhere is this incredible diver- ers and State agencies to follow. said that ‘‘trouble paying estate taxes’’ sity more evident than in the State of No. 2: Permit a 100 percent deduction contributed to their companies’ de- New Jersey. In New Jersey, school- for business meal and entertainment mise. Sixty percent of family-owned children come from families that speak expenses—1,444 votes. Small businesses businesses fail to make it to the second 120 different languages at home. These typically rely on close personal rela- generation, and 90 percent do not make different languages are used in over 1.4 tionships and customer service to com- it to a third generation. million homes in my State. I have al- pete for sales, rather than expensive If the Tax Code were revised to elimi- ways believed that one of the United advertising campaigns. Expenditures nate these transfer taxes, small busi- States greatest strengths is the diver- for meals and entertainment are often nesses would have a fighting chance; sity of the people that make up its citi- an important part of that effort. and the Nation would likely experience zenry and I am proud to call the atten- No. 3: Strengthen the Regulatory significant economic benefits by the tion of my colleagues to an event in Flexibility Act—1,398 votes. In addition year 2000. According to a report by the New Jersey that celebrates the impor- to making the act applicable to all Institute for Research on the Econom- tance of the diversity that is a part of Federal agencies, the Conference rec- ics of Taxation [IRET] ‘‘GDP would be America’s collective heritage. ommended that cost-benefit analyses, $79.22 billion greater, 228,000 more peo- On June 4, 1995, the Garden State scientific benefit analyses, and risks ple would be employed, and the amount Arts Center in Holmdel, NJ, began its assessments be required. of accumulated savings and capital 1995 Spring Heritage Festival Series. No. 4: Repeal the Federal estate, gift, would be $630 billion larger than pro- This heritage festival program salutes and generation-skipping transfer tax jected under present law’’ by the end of many of the different ethnic commu- laws—1,385 votes. As the members of the century. nities that contribute so greatly to the Conference noted in their resolu- Small business leaders recognize how New Jersey’s diverse makeup. High- tion, ‘‘the negative effect (of these counterproductive the estate tax really lighting old country customs and cul- transfer taxes) on small business, and is, and that’s why they specifically en- ture, the festival programs are an op- others, far exceeds the net income to dorsed the Family Heritage Preserva- portunity to express pride in the ethnic

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00119 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8960 CONGRESSIONAL RECORD — SENATE June 22, 1995 backgrounds that are a part of our col- National United Front for an Inde- uty, and several standing committee lective heritage. Additionally, the pendent Neutral Peaceful and Coopera- chairmen. spring heritage festivals will con- tive Cambodia [FUNCINPEC] and Hun I view this move with great concern. tribute proceeds from their programs Sen of the Cambodian People’s Party Mr. President, this situation would be to the Garden State Arts Center’s cul- [CPP]. Since 1993, outside observers analogous to a Member of the U.S. tural center fund which presents the- have often characterized the growth of House of Representatives deciding to ater productions free of charge to New democracy there as two steps forward, vote against the party line or change Jersey’s school children, seniors, and one step back. her party affiliation—a move with other deserving residents. The heritage Mr. President, the expulsion of which we are not unfamiliar—and con- festival thus not only pays tribute to Rainsy is just one such step backward. sequently being unseated and replaced the cultural influences from our past, Rainsy was a founding member of by the House leadership. The move was it also makes a significant contribu- FUNCINPEC, and was appointed the made without a vote of the assembly, tion to our present day cultural activi- party’s second representative to the or recourse to the Member’s constitu- ties. Supreme National Council—the pre- ency; in fact, that the vote would be on On Sunday, June 25, 1995, the herit- election transitional governing body. the committee agenda was secret from age festival series will celebrate the As the first Finance Minister in the its members until they had gathered to 25th annual Irish Heritage Festival. newly established government, Sam vote on unrelated legislation. More- Twenty-five years ago, when John Rainsy won praise for successfully bal- over, yesterday a report in the Hong Gallagherr chaired the very first Irish ancing the country’s first budget. Un- Kong press indicated that at least two Heritage Festival, he initiated what fortunately for him, he was also a crit- of the deputies whom purportedly has become a grand tradition. This ic of the country’s pervasive and en- signed the expulsion petition—Prince year’s celebration, chaired by Kathleen trenched political corruption which Norodom Sirivut and another MP who Hyland continues this tradition of brought him into conflict with mem- preferred to remain anonymous—have highlighting Irish entertainers, food, bers of his own, as well as other par- said they did no such thing. This is not and crafts, THe day begins early in the ties. He complained publicly that Cam- how representative government works. morning with a piping competition and bodia’s banking system was riddled The point behind the expulsion is will feature traditional Irish sports with corruption and that most private clear: internal discontent with the like hurling and Gaelic football. Addi- banks were simply fronts for money leader of the government will not be tionally, a concelebrated liturgy with laundering. His decision to contract tolerated. The move is sure to have a Msgr. Kevin Flanagan of St. Peter’s with a French company—Total—to pro- chilling effect on other MP’s who do Roman Catholic Church, in Parsippany mote efficiency in the country’s kick- not toe the exact party line such as assisted by numerous Irish clergy from back-racked oil distribution system Ieng Muli, the present Information throughout New Jersey, will be offered brought him into a jurisdictional dis- Minister and member of the Buddhist for lasting peace and justice in Ireland. pute with the CPP-headed Commerce Liberal Democratic Party. It also sig- After the liturgy a noon mall show will Ministry, and made enemies of some nals a severe blow to what many saw as feature many gifted Irish entertainers powerful and politically influential dis- the only opposition voice to the gov- including: Daniel O’Donnell, Celtic tributors. Similarly, his decision to ernment outside the Khmer Rouge. I Cross, Richie O’Shea, Willie Lynch, take on Thai Boon Rong Co. over the fear that it signals the transformation Barley Bree, Mary McGonigle, and latter’s attempts to extract payments of the National Assembly from an open Mike Byrne Band. Over 25,000 people from vendors in the Olympic Market- deliberative body into one that simply are expected to turnout to eat good place made him few high placed serves to rubber-stamp the decisions of food, enjoy traditional music and friends. the leadership. As one MP put it, if the dance, and to avail themselves of the Rainsy’s continuing allegations be- No. 2 man in the country’s largest opportunity to pay tribute to their came sufficiently embarrassing to the party can be brought down, regardless Irish heritage. powers-that-be that he was fired from of the wishes of his constituents, solely On behalf of the almost 1 million New the Cabinet in October last year. Al- for the reason of expressing his per- Jerseyans of Irish descent, who con- though fired from the Cabinet, Rainsy sonal and political opinions, then who tribute so much energy and vitality to became even more vocal in his criti- is safe? my great and diverse State, I offer my cisms. For example, he led an attempt Mr. President, I realize that my dis- congratulations on the occasion of the in the assembly to review a series of approval will likely mean little to the 25th annual Irish Heritage Festival.∑ nontransparent contracts between the forces allied against Sam Rainsy. But f government and several influential pri- they should know that I and other vate contractors, but was rebuffed. CAMBODIA Members are watching them closely, Still apparently uncomfortable with and with each increasing threat they ∑ Mr. THOMAS. Mr. President, I would Rainsy’s position, Prince Ranariddh pose to democracy there they make like to make a brief comment today —in a move that many analysts saw as one less friend here, and make much about a recent development in Cam- a power play, a flexing of his political less likely the coming forth of sup- bodia which I believe does not bode muscle as leader of FUNCINPEC—lob- port—economic or otherwise—for their well for the emergent democracy in bied to have Rainsy ousted from the country.∑ that country. Last Monday, June 19, party as well. He was successful, and the Cambodian National Assembly ex- Rainsy was expelled in May. f pelled the representative of northern Things did not stop there, though. EXECUTIVE SESSION Siem Reap khet and an outspoken crit- Ranariddh then sought to have Rainsy ic of corruption in his country’s gov- expelled from Parliament on the ernment, former Finance Minister Sam grounds that he was elected as a mem- Rainsy. The move was to be officially ber of a specific party and that, having EXECUTIVE CALENDAR announced today. decided to leave that party, should not Mr. D’AMATO. Mr. President, I ask Cambodia held its first democratic be allowed to keep his seat. At one unanimous consent that the Senate elections in May 1993, under the guid- point, he even threatened to resign if proceed to executive session and imme- ance of the U.N. Transitional Author- Rainsy was not expelled. Rainsy waged diately proceed to executive calendar ity. The fragile multiparty coalition an international campaign to retain nomination numbers 196 through 204, that emerged, less a result of electoral his seat, arguing that he was elected by and all nominations be placed on the processes than power politics and ac- the voters of Siem Reap to represent Secretary’s desk in the Air Force, commodations among the different fac- them and not the party. He was not Army, Navy, en bloc; I further ask tions, has depended for its survival successful, however. Rainsy was ex- unanimous consent that the nomina- mainly on the expedient relationship pelled by a 9 to 3 vote by a permanent tions be confirmed en bloc, the motions between the co-prime ministers: Prince committee of the assembly headed by to reconsider be laid upon the table en Norodom Ranariddh of the Royalist assembly Chairman Chea Sim, his dep- bloc, and any statements relating to

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00120 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS June 22, 1995 CONGRESSIONAL RECORD — SENATE S8961 the nominations appear at the appro- Rear Adm. (lh) Frank Matthew Dirren, Jr., To be general priate place in the RECORD, the Presi- 000–00–0000, U.S. Navy Gen. Carl E. Mundy, Jr., 000–00–0000, United dent be immediately notified of the Rear Adm. (lh) Marsha Johnson Evans, 000– States Marine Corps. 00–0000, U.S. Navy IN THE AIR FORCE, ARMY, FOREIGN SERVICE, Senate’s action and that the Senate Rear Adm. (lh) Henry Collins Giffin, III, NAVY then return to legislative session. 000–00–0000, U.S. Navy The PRESIDING OFFICER. Without Rear Adm. (lh) Lee Fredric Gunn, 000–00– Air Force nominations beginning Danny N. objection, it is so ordered. 0000, U.S. Navy Armstrong, and ending James R. Wilson, The nominations considered and con- Rear Adm. (lh) Michael Donald Haskins, which nominations were received by the Sen- firmed en bloc are as follows: 000–00–0000, U.S. Navy ate and appeared in the Congressional Rear Adm. (lh) Henry Francis Herrera, 000– Record of April 24, 1995 AIR FORCE 00–0000, U.S. Navy Air Force nominations beginning Maj. Wil- The following-named officer for reappoint- Rear Adm. (lh) Francis William Lacroix, liam M. Altman, III, and ending Maj. Philip ment to the grade of general while assigned 000–00–0000, U.S. Navy M. Abshere, which nomination were received to a position of importance and responsi- Rear Adm. (lh) Thomas Fletcher Marfiak, by the Senate and appeared in the Congres- bility under title 10, United States Code, sec- 000–00–0000, U.S. Navy sional Record of May 23, 1995 tion 601: Rear Adm. (lh) Richard Willard Mies, 000– Army nominations beginning Richard F. To be general 00–0000, U.S. Navy Anderson, and ending Igwekala E. Njoku, Gen. James L. Jamerson, 000–00–0000, Rear Adm. (lh) Robert Joseph Natter, 000– which nominations were received by the Sen- United States Air Force. 00–0000, U.S. Navy ate and appeared in the Congressional ARMY Rear Adm. (lh) Robert Michael Nutwell, Record of May 19, 1995 000–00–0000, U.S. Navy Army nominations beginning Ronald C. The following-named officer to be placed Rear Adm. (lh) James Gregory Prout III, Bredlow, and ending Kay F. Stanton, which on the retired list in the grade indicated 000–00–0000, U.S. Navy nominations were received by the Senate and under the provisions of title 10, United Rear Adm. (lh) James Reynolds Stark, 000– appeared in the Congressional Record of May States Code, section 1370: 00–0000, U.S. Navy 19, 1995 To be lieutenant general Rear Adm. (lh) Robert Sutton, 000–00–0000, Army nominations beginning James E. Lt. Gen. Kenneth R. Wykle, 000–00–0000, U.S. Navy Agnew, and ending Jeffrey M. Young, which United States Army. Rear Adm. (lh) Jay Bradford Yakeley III, nominations were received by the Senate and The following-named officer for appoint- 000–00–0000, U.S. Navy appeared in the Congressional Record of May ment to the grade of lieutenant general ENGINEERING DUTY OFFICER 19, 1995 while assigned to a position of importance To be rear admiral Army nominations beginning Robert T * and responsibility under title 10, United Aarhus, and ending Annette L * Wuest, States Code, section 601(a): Rear Adm. (lh) Paul Matthew Robinson, which nominations were received by the Sen- 000–00–0000, U.S. Navy ate and appeared in the Congressional To be lieutenant general The following-named captains in the staff Record of May 19, 1995 Maj. Gen. Hubert G. Smith, 000–00–0000, corps of the Navy for promotion to the per- Army nominations of Robert G. Kowalski, United States Army. manent grade of rear admiral (lower half), which was received by the Senate and ap- The following United States Army Na- pursuant to title 10, United States Code, sec- peared in the Congressional Record of May tional Guard officers for promotion in the tion 624, subject to qualification therefore as 23, 1995 Reserve of the Army to the grades indicated provided by law: under Title 10, United States Code, sections Army nominations beginning Joseph F. MEDICAL CORPS 3385, 3392 and 12203(a). Miller, and ending Douglas A. Schow, which To be rear admiral (lower half) nominations were received by the Senate and To be major general Capt. Michael Lynn Cowan, 000–00–0000, appeared in the Congressional Record of May Brig. Gen. Crayton M. Bowen, 000–00–0000 United States Navy 23, 1995 Brig. Gen. James D. Davis, 000–00–0000 Foreign Service nominations beginning SUPPLY CORPS Brig. Gen. Robert J. Mitchell, 000–00–0000 Robert A. Kohn, and ending Robert A. Taft, Brig. Gen. John E. Prendergast, 000–00–0000 To be rear admiral which nominations were received by the Sen- Brig. Gen. Robert E. Schulte, 000–00–0000 Capt. Raymond Aubrey Archer III, 000–00– ate and appeared in the Congressional Brig. Gen. Walter L. Stewart, Jr., 000–00– 0000, United States Navy Record of March 23, 1995 0000 Capt. Justin Daniel McCarthy, 000–00–0000, Foreign Service nominations beginning Ju- Brig. Gen. Carroll Thackston, 000–00–0000 United States Navy dith A. Futch, and ending Joy Ona To be brigadier general Capt. Paul Oscar Soderberg, 000–00–0000, Yamamoto, which nominations were re- Col. Lance A. Talmage, Sr., 000–00–0000 United States Navy ceived by the Senate and appeared in the Col. Robert A. Morgan, 000–00–0000 CIVIL ENGINEERING CORPS Congressional Record of May 15, 1995 Col. John E. Blair, 000–00–0000 To be rear admiral (lower half) Navy nominations beginning Vincent John Col. Phillip O. Peay, 000–00–0000 Andrews, and ending Jerry F. Rea, which Capt. Robert Lewis Moeller, 000–00–0000, Col. Robert D. Whitworth, 000–00–0000 nominations were received by the Senate and United States Navy Col. Ronald W. Henry, 000–00–0000 appeared in the Congressional Record of Capt. Michael William Shelton, 000–00–0000, Col. Vandiver H. Carter, 000–00–0000 March 23, 1995 United States Navy Col. Troy B. Oliver, 000–00–0000 Navy nominations beginning Robert J. Col. Don C. Morrow, 000–00–0000 MEDICAL SERVICE CORPS Adams, and ending Georgene B. Waecker, Col. Smythe J. Williams, 000–00–0000 To be rear admiral (lower half) which nominations were received by the Sen- Col. William W. Austin, 000–00–0000 Capt. Harold Edward Phillips, 000–00–0000, ate and appeared in the Congressional Col. Jean A. Romney, 000–00–0000 United States Navy Record of April 24, 1995 Col. James T. Dunn, 000–00–0000 Navy nominations beginning Milton D. MARINE CORPS Col. Paul T. Ott, 000–00–0000 Abner, and ending Thomas G. Warner, which Col. Reid K. Beveridge, 000–00–0000 The following named officer for appoint- nominations were received by the Senate and Col. Bertus L. Sisco, 000–00–0000 ment to the grade of lieutenant general in appeared in the Congressional Record of Ma, Col. Jim E. Morford, 000–00–0000 the United States Marine Corps while as- 1995 Col. Willie A. Alexander, 000–00–0000 signed to a position of importance and re- Navy nominations beginning Camilo L. Col. Steven P. Solomon, 000–00–0000 sponsibility under title 10, U.S.C., section Abalos, and ending Charlotte A. Thompson, Col. Jerry V. Grizzle, 000–00–0000 601: Col. James V. Torgerson, 000–00–0000 which nominations were received by the Sen- To be lieutenant general ate and appeared in the Congressional NAVY Maj. Gen. Paul K. Van Riper, 000–00–0000 Record of May 19, 1995 The following-named Rear Admirals (lower The following named officer for reappoint- Navy nominations beginning Carlton L. half) in the line of the United States Navy ment to the grade of lieutenant general in Jones, and ending Patrick C. Wrencher, for promotion to the permanent grade of the United States Marine Corps while as- which nominations were received by the Sen- Rear Admiral, pursuant to title 10, United signed to a position of importance and re- ate and appeared in the Congressional States Code, section 624, subject to qualifica- sponsibility under title 10, U.S.C., section Record of May 23, 1995 tions therefore as provided by law: 601: f UNRESTRICTED LINE OFFICER To be lieutenant general To be rear admiral Lt. Gen. Charles E. Wilhelm, 000–00–0000 LEGISLATIVE SESSION Rear Adm. (lh) Charles Stevens Abbot, 000– The following named officer to be placed 00–0000, U.S. Navy on the retired list in the grade indicated The PRESIDING OFFICER. Under Rear Adm. (lh) Michael Lee Bowman, 000– under the provisions of title 10, United the previous order, the Senate will now 00–0000, U.S. Navy States Code, section 1370: return to legislative session.

VerDate Aug 31 2005 05:41 May 28, 2008 Jkt 041999 PO 00000 Frm 00121 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S22JN5.REC S22JN5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S8962 CONGRESSIONAL RECORD — SENATE June 22, 1995 EXPRESSING THE SENSE OF THE ø(4) calls upon the claimants to scru- RECESS UNTIL 9 A.M. TOMORROW SENATE WITH RESPECT TO pulously observe the January, 1995 status quo ante pending any negotiations or resolu- Mr. D’AMATO. Mr. President, if PEACE AND STABILITY IN THE there is no further business to come be- SOUTH CHINA SEA tion of the conflicts between such claimants over such claims.¿ fore the Senate, I now ask unanimous Mr. D’AMATO. Mr. President, I ask (4) would view with profound concern and consent that the Senate stand in recess unanimous consent that the Senate disapproval any maritime claim or restriction on under the previous order. proceed to immediate consideration of maritime activity in the South China Sea not There being no objection, the Senate, calendar number 129, Senate Resolu- strictly consistent with international law. at 10:34 p.m., recessed until Friday, tion 97. Mr. D’AMATO. Mr. President, I ask June 23, 1995, at 9 a.m. The PRESIDING OFFICER. Without unanimous consent that the resolution, f objection, it is so ordered. The clerk as amended, be considered and agreed will report. to, the preamble as amended be agreed NOMINATIONS The legislative clerk read as follows: to, and the motion to reconsider be laid Executive nominations received by A resolution (S. Res. 97) expressing the upon the table, and any statements re- the Senate June 22, 1995: sense of the Senate with respect to peace and lating to the resolution appear at the THE JUDICIARY stability in the South China Sea. appropriate place in the RECORD. TENA CAMPBELL, OF UTAH, TO BE U.S. DISTRICT The PRESIDING OFFICER. Is there The PRESIDING OFFICER. Without JUDGE FOR THE DISTRICT OF UTAH, VICE BRUCE S. JEN- objection to the immediate consider- objection, it is so ordered. KINS, RETIRED. ation of the resolution? So the resolution (S. Res. 97), as f There being no objection, the Senate amended, was considered and agreed to. CONFIRMATIONS proceeded to consider the resolution, The preamble, as amended, was which had been reported from the Com- agreed to. Executive nominations confirmed by mittee on Foreign Relations with The resolution, as amended, with its the Senate June 22, 1995: amendments; as follows: preamble, as amended, is as follows: IN THE AIR FORCE (The parts of the resolution intended The resolution was not available for THE FOLLOWING-NAMED OFFICER FOR REAPPOINT- to be stricken are shown in boldface printing. It will appear in a future MENT TO THE GRADE OF GENERAL WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND RESPONSIBILITY brackets and the parts of the resolu- issue of the RECORD. UNDER TITLE 10, UNITED STATES CODE, SECTION 601: tion intended to be inserted are shown f To be general in italic.) ORDER FOR STAR PRINT—REPORT GEN. JAMES L. JAMERSON, 000–00–0000 S. RES. 97 TO ACCOMPANY S. 240 IN THE ARMY Whereas the South China Sea is a strategi- THE FOLLOWING-NAMED OFFICER TO BE PLACED ON cally important waterway through which Mr. D’AMATO. Mr. President, I ask THE RETIRED LIST IN THE GRADE INDICATED UNDER transits approximately 25 percent of the unanimous consent that the report ac- THE PROVISIONS OF TITLE 10, UNITED STATES CODE, World’s ocean freight, including almost 70 companying S. 240 be star printed to SECTION 1370: percent of Japan’s oil supply; reflect the following changes, which I To be lieutenant general Whereas the South China Sea serves as a now send to the desk. LT. GEN. KENNETH R. WYKLE, 000–00–0000 crucial sea lane for naval vessels of the United States and other countries, especially The PRESIDING OFFICER. Without THE FOLLOWING-NAMED OFFICER FOR APPOINTMENT objection, it is so ordered. TO THE GRADE OF LIEUTENANT GENERAL WHILE AS- in times of emergency; SIGNED TO A POSITION OF IMPORTANCE AND RESPONSI- Whereas the People’s Republic of China, f BILITY UNDER TITLE 10, UNITED STATES CODE, SECTION the Republic of the Philippines, the Socialist 601(A): Republic of Vietnam, the Republic of China ORDERS FOR FRIDAY, JUNE 23, 1995 To be lieutenant general on Taiwan, the State of Brunei Darussalam, Mr. D’AMATO. Mr. President, I ask MAJ. GEN. HUBERT G. SMITH, 000–00–0000 and Malaysia have overlapping and mutually unanimous consent that when the Sen- THE FOLLOWING UNITED STATES ARMY NATIONAL exclusive claims to portions of the South ate completes its business today it GUARD OFFICERS FOR PROMOTION IN THE RESERVE OF China Sea, especially in the Spratly Island stand in recess until the hour of 9 a.m., THE ARMY TO THE GRADES INDICATED UNDER TITLE 10, group; UNITED STATES CODE SECTIONS 3385, 3392 AND 12203(A): Whereas some of the nations which have on Friday, June 23, 1995, that following To be major general the prayer, the Journal of proceedings claims to portions of the South China Sea are BRIG. GEN. CRAYTON M. BOWEN, 000–00–0000 modernizing their military forces, strengthening be deemed approved to date, the time BRIG. GEN. JAMES D. DAVIS, 000–00–0000 their ability to project power outside their do- for the two leaders be reserved for their BRIG. GEN. ROBERT J. MITCHELL, 000–00–0000 BRIG. GEN. JOHN E. PRENDERGAST, 000–00–0000 mestic boundaries, and consequently, are alter- use later in the day, and there then be BRIG. GEN. ROBERT E. SCHULTE, 000–00–0000 ing the strategic balance of power in the region; a period for morning business until the BRIG. GEN. WALTER L. STEWART, JR., 000–00–0000 BRIG. GEN. CARROLL THACKSTON, 000–00–0000 Whereas this power projection capability fur- hour of 9:30 a.m., with Senators to ther drives the concern of nations with terri- To be brigadier general speak for up to 5 minutes each with the torial claims over acts of aggression in the South COL. LANCE A. TALMAGE, SR., 000–00–0000 China Sea by other nations with claims; exception of the following: Senator COL. ROBERT A. MORGAN, 000–00–0000 Whereas these competing claims have led DORGAN, 20 minutes, and Senator BAU- COL. JOHN E. BLAIR, 000–00–0000 to armed conflicts between several of the COL. PHILLIP O. PEAY, 000–00–0000 CUS, 10 minutes. COL. ROBERT D. WHITWORTH, 000–00–0000 claimants; Further, that at the hour of 9:30 the COL. RONALD W. HENRY, 000–00–0000 Whereas these conflicts threaten the peace Senate resume consideration of S. 240, COL. VANDIVER H. CARTER, 000–00–0000 and stability of all of East Asia; and COL. TROY B. OLIVER, 000–00–0000 Whereas the 1992 Manila Declaration of the the securities litigation bill and that COL. DON C. MORROW, 000–00–0000 HELBY COL. SMYTHE J. WILLIAMS, 000–00–0000 Association of South East Asian Nations, Senator S be immediately recog- COL. WILLIAM W. AUSTIN, 000–00–0000 also recognized by the Socialist Republic of nized to offer an amendment relating COL. JEAN A. ROMNEY, 000–00–0000 COL. JAMES T. DUNN, 000–00–0000 Vietnam and the People’s Republic of China, to proportional liability, and that at COL. PAUL T. OTT, 000–00–0000 calls on the claimants to exercise restraint the hour of 10:55 a.m., the Senate pro- COL. REID K. BEVERIDGE, 000–00–0000 and seek a peaceful negotiated solution to COL. BERTUS L. SISCO, 000–00–0000 ceed to a vote on or in relation to the COL. JIM E. MORFORD, 000–00–0000 the conflicts: Now, therefore, be it Shelby amendment. COL. WILLIE A. ALEXANDER, 000–00–0000 Resolved, That the Senate— The PRESIDING OFFICER. Without COL. STEVEN P. SOLOMON, 000–00–0000 (1) øurges the executive branch to reit- COL. JERRY V. GRIZZLE, 000–00–0000 erate¿ reiterates to the claimants in the objection, it is so ordered. COL. JAMES V. TORGERSON, 000–00–0000 South China Sea that the United States does f IN THE NAVY not take a position on any individual claim; PROGRAM THE FOLLOWING-NAMED REAR ADMIRALS (LOWER (2) calls upon all of the claimants to re- HALF) IN THE LINE OF THE UNITED STATES NAVY FOR frain from using military force or similarly Mr. D’AMATO. For the information PROMOTION TO THE PERMANENT GRADE OF REAR ADMI- RAL, PURSUANT TO TITLE 10, UNITED STATES CODE, SEC- aggressive action to assert or expand terri- of all Senators, the Senate will resume TION 624, SUBJECT TO QUALIFICATIONS THEREFORE AS torial claims in the South China Sea; consideration of the securities bill to- PROVIDED BY LAW: (3) urges the executive branch to declare morrow at 9:30. Under the previous UNRESTRICTED LINE OFFICER the active support of the United States for To be rear admiral the 1992 Manila Declaration of the Associa- order the Senate will vote on or in re- tion of South East Asian Nations, and calls lation to the Shelby amendment re- REAR ADM. (LH) CHARLES STEVENS ABBOT, 000–00–0000 garding proportional liability at 10:55 REAR ADM. (LH) MICHAEL LEE BOWMAN, 000–00–0000 upon all the claimants to observe faithfully REAR ADM. (LH) FRANK MATTHEW DIRREN, JR., 000–00– its provisions; and a.m. 0000

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REAR ADM. (LH) MARSHA JOHNSON EVANS, 000–00–0000 POSITION OF IMPORTANCE AND RESPONSIBILITY UNDER ARMY NOMINATION OF ROBERT G. KOWALSKI, WHICH REAR ADM. (LH) HENRY COLLINS GIFFIN, III, 000–00–0000 TITLE 10, UNITED STATES CODE, SECTION 601: WAS RECEIVED BY THE SENATE AND APPEARED IN THE REAR ADM. (LH) LEE FREDRIC GUNN, 000–00–0000 CONGRESSIONAL RECORD OF MAY 23, 1995. REAR ADM. (LH) MICHAEL DONALD HASKINS, 000–00–0000 To be lieutenant general ARMY NOMINATIONS BEGINNING JOSEPH F. MILLER, REAR ADM. (LH) HENRY FRANCIS HERRERA, 000–00–0000 AND ENDING DOUGLAS A. SCHOW, WHICH NOMINATIONS REAR ADM. (LH) FRANCIS WILLIAM LACROIX, 000–00–0000 MAJ. GEN. PAUL K. VAN RIPER, 000–00–0000 WERE RECEIVED BY THE SENATE AND APPEARED IN THE REAR ADM. (LH) THOMAS FLETCHER MARFIAK, 000–00–0000 THE FOLLOWING NAMED OFFICER FOR REAPPOINT- CONGRESSIONAL RECORD ON MAY 23, 1995. REAR ADM. (LH) RICHARD WILLIAM MIES, 000–00–0000 MENT TO THE GRADE OF LIEUTENANT GENERAL IN THE IN THE NAVY REAR ADM. (LH) ROBERT JOSEPH NATTER, 000–00–0000 UNITED STATES MARINE CORPS WHILE ASSIGNED TO A REAR ADM. (LH) ROBERT MICHAEL NUTWELL, 000–00–0000 POSITION OF IMPORTANCE AND RESPONSIBILITY UNDER NAVY NOMINATIONS BEGINNING VINCENT J. ANDREWS, REAR ADM. (LH) JAMES GREGORY PROUT, III, 000–00–0000 TITLE 10, UNITED STATES CODE, SECTION 601: AND ENDING JERRY F. REA, WHICH NOMINATIONS WERE REAR ADM. (LH) JAMES REYNOLDS STARK, 000–00–0000 RECEIVED BY THE SENATE AND APPEARED IN THE CON- REAR ADM. (LH) ROBERT SUTTON, 000–00–0000, To be lieutenant general GRESSIONAL RECORD ON MARCH 23, 1995. REAR ADM. (LH) JAY BRADFORD YAKELEY, III, 000–00–0000 NAVY NOMINATIONS BEGINNING ROBERT J. ADAMS, LT. GEN. CHARLES E. WILHELM, 000–00–0000 ENGINEERING DUTY OFFICER AND ENDING GEORGENE B. WAECKER, WHICH NOMINA- THE FOLLOWING NAMED OFFICER TO BE PLACED ON TIONS WERE RECEIVED BY THE SENATE AND APPEARED To be rear admiral THE RETIRED LIST IN THE GRADE INDICATED UNDER IN THE CONGRESSIONAL RECORD ON APRIL 24, 1995. NAVY NOMINATIONS BEGINNING MILTON D. ABNER, REAR ADM. (LH) PAUL MATTHEW ROBINSON, 000–00–0000 THE PROVISIONS OF TITLE 10, UNITED STATES CODE, SECTION 1370: AND ENDING THOMAS G. WARNER, WHICH NOMINATIONS THE FOLLOWING-NAMED CAPTAINS IN THE STAFF WERE RECEIVED BY THE SENATE AND APPEARED IN THE CORPS OF THE NAVY FOR PROMOTION TO THE PERMA- To be general CONGRESSIONAL RECORD ON MAY 11, 1995. NENT GRADE OF REAR ADMIRAL (LOWER HALF), PURSU- NAVY NOMINATIONS BEGINNING CAMILO L. ABALOS, ANT TO TITLE 10, UNITED STATES CODE, SECTION 624, GEN. CARL E. MUNDY, JR., 000–00–0000 AND ENDING CHARLOTTE A. THOMPSON, WHICH NOMINA- SUBJECT TO QUALIFICATIONS THEREFORE AS PROVIDED TIONS WERE RECEIVED BY THE SENATE AND APPEARED IN THE AIR FORCE BY LAW: IN THE CONGRESSIONAL RECORD ON MAY 19, 1995. NAVY NOMINATIONS BEGINNING CARLTON L. JONES, MEDICAL CORPS AIR FORCE NOMINATIONS BEGINNING DANNY N. ARM- STRONG, AND ENDING JAMES R. WILSON, WHICH NOMINA- AND ENDING PATRICK C. WRENCHER, WHICH NOMINA- To be rear admiral (lower half) TIONS WERE RECEIVED BY THE SENATE AND APPEARED TIONS WERE RECEIVED BY THE SENATE AND APPEARED IN THE CONGRESSIONAL RECORD ON APRIL 24, 1995. IN THE CONGRESSIONAL RECORD ON MAY 23, 1995. CAPT. MICHAEL LYNN COWAN, 000–00–0000 AIR FORCE NOMINATIONS BEGINNING MAJOR WILLIAM f SUPPLY CORPS M. ALTMAN III, AND ENDING MAJOR PHILIP M. ABSHERE, WHICH NOMINATIONS WERE RECEIVED BY THE SENATE To be rear admiral AND APPEARED IN THE CONGRESSIONAL RECORD ON WITHDRAWAL MAY 23, 1995. CAPT. RAYMOND AUBREY ARCHER III, 000–00–0000 Executive message transmitted by CAPT. JUSTIN DANIEL MC CARTHY, 000–00–0000 IN THE ARMY CAPT. PAUL OSCAR SODERBERG, 000–00–0000 the President to the Senate on June 22, ARMY NOMINATIONS BEGINNING RICHARD F. ANDER- CIVIL ENGINEER CORPS 1995, withdrawing from further Senate SON, AND ENDING IGWEKALA E. NJOKU, WHICH NOMINA- To be rear admiral (lower half) TIONS WERE RECEIVED BY THE SENATE AND APPEARED consideration the following nomina- IN THE CONGRESSIONAL RECORD ON MAY 19, 1995. tion: CAPT. ROBERT LEWIS MOELLER, 000–00–0000 ARMY NOMINATIONS BEGINNING RONALD C. BREDLOW, CAPT. MICHAEL WILLIAM SHELTON, 000–00–0000 AND ENDING KAY F. STANTON, WHICH NOMINATIONS U.S. MARINE CORPS MEDICAL SERVICE CORPS WERE RECEIVED BY THE SENATE AND APPEARED IN THE CONGRESSIONAL RECORD ON MAY 19, 1995. I WITHDRAW THE NOMINATION OF: To be rear admiral (lower half) ARMY NOMINATIONS BEGINNING JAMES E. AGNEW, THE FOLLOWING-NAMED OFFICER FOR REAPPOINT- AND ENDING JEFFREY M. YOUNG, WHICH NOMINATIONS MENT TO THE GRADE OF LIEUTENANT GENERAL WHILE CAPT. HAROLD EDWARD PHILLIPS, 000–00–0000 WERE RECEIVED BY THE SENATE AND APPEARED IN THE ASSIGNED TO A POSITION OF IMPORTANCE AND RESPON- SIBILITY UNDER TITLE 10, UNITED STATES CODE, SEC- IN THE MARINE CORPS CONGRESSIONAL RECORD ON MAY 19, 1995. ARMY NOMINATIONS BEGINNING *ROBERT T. AARHUS, TION 601, WHICH WAS FORWARDED ON MAY 15, 1995: THE FOLLOWING NAMED OFFICER FOR APPOINTMENT AND ENDING *ANNETTE L. WUEST, WHICH NOMINATIONS To be lieutenant general TO THE GRADE OF LIEUTENANT GENERAL IN THE WERE RECEIVED BY THE SENATE AND APPEARED IN THE UNITED STATES MARINE CORPS WHILE ASSIGNED TO A CONGRESSIONAL RECORD ON MAY 19, 1995. LT. GEN. GEORGE R. CHRISTMAS 000–00–0000

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AMERICA NEEDS THE MARITIME survived without a merchant fleet and we can- the size of government. He stepped from the SECURITY ACT not afford to lose more ground in the global sidelines on the budget debate and laid out a competition. ten-year route to a balanced budget which dramatically scales back much of what gov- HON. GERALD B.H. SOLOMON That is why Congress is now taking steps to ernment does. He wants to balance the budg- OF NEW YORK fortify our Nation's merchant marine. House et by the year 2005 while still investing in IN THE HOUSE OF REPRESENTATIVES Resolution 1350Ðthe Maritime Security ActÐ education and training, taking serious steps which I wholeheartedly support and have toward health care reform while protecting Thursday, June 22, 1995 sponsored, will stabilize our national security its beneficiaries, and targeting modest tax Mr. SOLOMON. Mr. Speaker, 50 years ago fleet. This bill proposes that $2 million be set cuts to working families. He calls for real our world was entrenched in a brutal world aside each year for 10 years in order to in- cuts in most areas of government spending war that transformed many facets of the global crease the amount of merchant vessels in the other than Social Security. arena. We would not have won World War II U.S. fleet. This same bill passed the House DIFFERENCES if it were not for the strength of the U.S. mer- last year, but stalled in the Senate. This year, Although the President and congressional chant marine. If our Nation is to continue however, Senator TRENT LOTT has spear- leadership agree on the broad outlines of bal- being a world leader, we must strengthen our headed the drive to get this bill through the ancing the budget, many differences remain. merchant marine fleet. Once the largest in the Senate and he believes that this year will be President Clinton would balance the budget over ten years; their plan says seven. He world, the 5,000-ship fleet has been dimin- different. would cut taxes only for the middle class; ished to a mere 375 ships. We as a nation Aside from creating hundreds of thousands the House leadership would also cut taxes for cannot afford to lose anymore ground to the of jobs and enhancing our economic base in upper-income taxpayers. And their tax cuts countries who are taking over the worlds the maritime industry, the Maritime Security would be much more costly—$350 billion ver- oceans. Act will ensure security overseas for all Amer- sus the $96 billion the President proposes. Many people ask where a threat is coming ican citizens who depend on the merchant The President eliminates $25 billion in cor- from that justifies the cost of strengthening the marines. During the Persian Gulf war over 20 porate subsidies; they would not. He trims U.S. merchant marine. I would answer that percent of goods, ammunition, and supplies spending for the poor while they cut it sharply. He squeezes Medicare and Medicaid; question with a question. Think back to the were transported on foreign subsidized flag they cut back these programs much more. night of November 9, 1989, just 6 years ago, ships. Some of these ships refused to enter Both he and the congressional leadership when we all rejoiced to see the Berlin Wall into enemy waters to deliver vital goods to our reach a balanced budget by making fairly op- being breached and the many Berliners who soldiers. This fact is frightening. If we do not timistic economic projections, such as as- were dancing at the Brandenburg Gate. strengthen our merchant marine fleet, we will suming that interest rates will fall sharply. On that night when we celebrated the lifting be putting our men and women in the Armed The President increases spending on edu- of the Iron Curtain in Europe and the downfall Forces in tremendous danger. cation, training, and medical and scientific of the former Soviet Empire, who could have The United States must have a strong fleet research, areas the congressional leadership would cut. On health care the President of- imagined that only 14 months later more than of American ships with American trained fers a plan far less ambitious than his origi- 1 million troops would be poised for battle in crews to supply our troops in the event of an nal health care reform proposal of a year the Persian Gulf? Who could have imagined emergency or war. During World War II, our ago. But he does propose to save $124 billion that the United States and its allies would own merchant fleet with its American crews from Medicare and $55 billion from Medicaid; shortly have to begin the largest logistical sacrificed their lives to provide their comrades the congressional leadership’s cutbacks movement of troops and material since World in foreign lands with needed supplies. We would be more than twice as much. He War II? need to have that security in today's world reaches the Medicare savings by reducing My point is simply this: The world remains also, for there are thousands of men and growth in health care costs, not by asking beneficiaries to pay more. an extraordinarily dangerous and unpredict- women in the Armed Forces overseas who able place. There is room for legitimate argu- must not be neglected. NEW STRATEGY ment about what the specific priorities in the The United States has many global interests The President has clearly chosen the path defense budget should be. But there can be that must be preserved. In order to maintain of conciliation as a better way for him than little doubt that we are rapidly reaching the these interests and further America's lead in continued confrontation with the congres- sional leadership. He dropped his stand-pat point where America's defense maritime capa- the global sphere, we must have access to budget which he submitted to Congress in bilities will be in real jeopardy. This is a risk foreign markets through the oceans. The Mari- February and joins the chorus to eliminate our country cannot afford to take and we time Security Act will be the first step toward the deficit. The President has received sharp should do anything in our power to see to it accomplishing that goal by strengthening criticism from some members of his own that America never repeats the mistakes of America's merchant marine fleet. I urge sup- party as well as some indications of openness the past, the mistakes that produced a hollow port for this vital legislation. from the congressional leadership. He is po- sitioning himself as an independent, centrist military as recently as the late 1970's. f A strong U.S. flag ship fleet will also lead to leader. He has rightly rejected the strategy THE PRESIDENT’S BALANCED of just counterpunching against congres- many economic benefits for our Nation. The sional budget proposals and has indicated creation of over 100,000 at sea and ashore BUDGET PLAN that he believes a President’s responsibil- would bring in over $4.5 billion in household ities rise above politics to leadership. earnings. With major seaports on three coasts, HON. LEE H. HAMILTON GROWING CONSENSUS there is no reason why there should not be OF INDIANA There isn’t any doubt that Congress and hundreds of ships being built. At the present IN THE HOUSE OF REPRESENTATIVES the President are now very serious about time there are only two ships being built in bringing the budget into balance. That U.S. ports. This production level puts the Unit- Thursday, June 22, 1995 means the question is not whether to bal- ed States behind Brazil, Croatia, and even Ro- Mr. HAMILTON of Indiana. Mr. Speaker, I ance the budget into balance. That means mania in shipbuilding. We cannot afford to would like to insert my Washington Report for the question is not whether to balance the budget but when and how. This is good news. lose the technological shipbuilding capabilities Wednesday, June 21, 1995 into the CONGRES- that we have at our disposal in America. The federal budget has been in the red every SIONAL RECORD. year but one, 1969, since the Eisenhower Ad- If something is not done today to strengthen THE PRESIDENT’S BALANCED BUDGET PLAN ministration. Public opinion polls which our merchant marine fleet, the size of the fleet In a nationally televised speech President show 80% of the American people favoring a could drop to 100 ships. We are already 16th Clinton recently joined congressional leaders balanced budget have had a strong impact. in the world in fleet size and we simply cannot in calling for an historic reduction in the But quite apart from politics, the economic drop any further. No world power has ever federal budget deficit and for a reduction in arguments for a balanced budget are also

∑ 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. E 1306 CONGRESSIONAL RECORD — Extensions of Remarks June 22, 1995 very strong. Consistently large budget defi- public servant from Brooklyn, NYÐMaj. Gen. Mr. Speaker, I want to thank Lt. Gen. cits endanger the country’s economic future Enoch H. Williams. General Williams retired as Charles Dominy for all of his dedicated service and cheat future generations of Americans. Commander of the New York Army National and hard work, and I am honored to join with Balancing the budget will increase national Guard on May 31, 1995, after over 30 years savings and that means greater national in- his family, friends, and colleagues in recogniz- vestment in physical, human, and techno- of active military service. ing his accomplishments and wishing him well logical capital. That in turn will increase Major General Williams earned his commis- in his future endeavors. productivity and boost incomes for Ameri- sion in 1950 after serving as an enlisted mem- f cans. ber during World War II. Rising from the rank Many Americans believe that balancing of second lieutenant to colonel, he served in EDSAT the budget is not just an economic issue but many positions, among themÐartillery officer, almost a moral issue—that the government’s transportation officer, liaison to the Deputy inability to balance the budget means the HON. GEORGE E. BROWN, JR. Chief of Staff for Logistics, and Commander of OF CALIFORNIA country has lost a moral sense of fiscal re- Selective Service, and Headquarters Detach- sponsibility. They see the huge deficits as IN THE HOUSE OF REPRESENTATIVES ment. General Williams was appointed Com- shifting the burden to the next generation. Thursday, June 22, 1995 Others look at deficits as shifting the burden mander of the New York Army National Guard to the next generation. Others look at defi- in 1990. His military education includes Field Mr. BROWN of California. Mr. Speaker, cits in more practical terms. They see no Artillery School, the Air Defense School Com- today Congresswoman CONNIE MORELLA and I great harm with a deficit in any one year, mand and General Staff Colllege, and the In- will be reintroducing legislation designed to fa- but believe the continuing deficits under- dustrial War College. Military decorations Gen- cilitate the development of an integrated, na- mine the economic underpinnings of the eral Williams has earned include the Legion of tionwide telecommunications system dedicated country. So a growing consensus has come to Merit, Army Commendation Medal, and both to education. This bill would guarantee the ac- the view that deficit spending must end. The details of balancing the budget still re- the Bronze and Silver Selective Service Sys- quisition of a satellite system to be used solely main. In the current political climate nei- tem Meritorious Service Medals. for communications among State and local in- ther Social Security nor defense spending General Williams received a B.S. in busi- structional resource providers. can be cut and taxes cannot be raised. That ness management from Long Island Univer- Certainly every student in America deserves puts enormous pressure on a rather small sity. He also attended New York University equal access to quality education. Unfortu- part of the government’s total budget com- and the New School for Social Research. nately, not every small rural or poor inner-city posed of Medicare, Medicaid, and other social In his civilian occupation, General Williams school can afford to hire specialized instruc- welfare programs. Rather than gutting im- is serving his fifth term as a New York City tors to provide the education for children the portant programs such as health care for councilman, representing the 41st older Americans, our emphasis needs to be way that schools in larger and wealthier com- Councilmanic District. The 41st district covers munities can. on reforms to make government work better the multiethnic Brooklyn communities of Bed- and cost less. One way to bridge this gap is through the ford-Stuyvesant, Brownsville, East Flatbush, ASSESSMENT use of satellite technology for distance learn- and Crown Heights. General Williams also ing. With the efficient use of an integrated, I think the President’s new position on the gives freely of his time to serve in many gov- budget is much better than his old one. He satellite-based communications system linked now wants to continue the deficit reduction ernmental positions. He is a member of the by cable and telephone lines, distance learn- that he started in the first two years of his American Institute of Housing Consultants, ing can provide children access to vase edu- administration, but he wants to do it more Community Service Society, and the New cational resources, regardless of wealth or ge- gently than others have proposed. Cutting York Urban League. He is currently civilian di- ographic location. the deficit too hard too fast could lead to a rector of the New York City Selective Service I have long been interested in helping to lot of pain which could undermine political System. General Williams' dedicated service support for a balanced budget. The President strengthen and improve the utilization of tele- to the U.S. military merits special recognition. communications in the U.S. economy and believes that a more gradual approach in- I take great pleasure and pride in entering creases the chances of getting to a balanced educational institutions. The need for a sat- budget. these words of commendation into the ellite dedicated solely to education program- I believe that both the congressional lead- RECORD. ming has been apparent since the issue was ership and the President are wrong in provid- f raised at the 1989 education summit. Since ing for tax cuts now. The President’s tax cut IN TRIBUTE TO LT. GEN. CHARLES that time, the nonprofit National Education is much smaller and more targeted than the Telecommunications Organization [NETO], congressional leadership’s. By the stretchout DOMINY in years and the smaller tax cut he gets to along with its wholly owned subsidiary, the his goal of a balanced budget without cut- HON. FRANK R. WOLF Education Satellite Corporation [EDSAT], has ting as much from important programs like been working to improve the availability of OF VIRGINIA Medicare. But I believe any tax cut at this educational programming for schools, univer- time is a bad idea. It does not make sense to IN THE HOUSE OF REPRESENTATIVES sities, and libraries across the country. me to borrow more money to provide a tax Thursday, June 22, 1995 The EDSAT Institute found that while the cut now. It is better to cut the spending, get Mr. WOLF. Mr. Speaker, I am pleased to education sector is expanding and investing the budget into balance, and then give our- heavily in telecommunications systems, they selves a tax cut. We simply make the prob- rise today to recognize the service of Lt. Gen. lem much more difficult if we add to the def- Charles E. Dominy to the U.S. Army and to are often not able to commit to expensive icit we want to reduce. our Nation as he prepares to retire. long-term contracts with satellite providers. Although I disagree with some of its specif- General Dominy's career in the Army has This puts them at a competitive disadvantage ics, I think the President has put forth a sen- spanned 33 years, including his service as a with other buyers of satellite time. In addition, sible plan for budgetary discipline. I am cadet at the U.S. Military Academy. During as occasional users, the education sector is pleased to see that both parties are now on these three decades he has served our Nation forced to pay high and variable prices for un- the same course. At the same time, no one in a number of important capacities. In his dependable services. should think the battle has been won. Much final assignment prior to retirement, General Finally, the current system is set up so that of the budget debate from this point on will be seen more as a skirmish over details, but Dominy serves as chief of the Army legislative educational programs are often spread out some major decisions still lie ahead. liaison and as director of the U.S. Army staff, among 12 to 15 satellites. Every time the user wants to switch to a different program, they f a position from which he has had to confront the numerous issues and developments sur- have to adjust their satellite dish. NETO's goal TRIBUTE TO MAJ. GEN. ENOCH H. rounding the Armed Forces in the 1990's. His is to create the infrastructure necessary to es- WILLIAMS work has received widespread praise and tablish an integrated telecommunications sys- commendation. tem at affordable costs to the education sec- HON. EDOLPHUS TOWNS As chief of the Army's Office of Legislative tor. OF NEW YORK Liaison, he worked with Members of Congress Dedicating a satellite for education and col- IN THE HOUSE OF REPRESENTATIVES and their staffs on the numerous issues affect- locating programming that is now scattered ing our Nation's military. Before his tenure in across numerous satellites will allow schools Thursday, June 22, 1995 Washington, General Dominy was a platoon to receive far more educational program- Mr. TOWNS. Mr. Speaker, I rise today with leader as well as a leader and trainer for Army mingÐwithout constantly reorienting their sat- pleasure to pay tribute to an extraordinary troops. ellite dishes. Collocation will also enhance the June 22, 1995 CONGRESSIONAL RECORD — Extensions of Remarks E 1307 marketing of programming, reduce technical with the Education Satellite Corp. [EDSAT], a INTRODUCTION OF THE CENTRAL problems, and stabilize the pricing of satellite subsidiary of the nonprofit National Education VALLEY PROJECT REFORM ACT time. Telecommunications Organization [NETO]. OF 1995 Federal backing of such a system will not This organization has been working to en- only heighten the educational opportunities for hance educational opportunities for our Na- our children, but it will also benefit State and tion's students through distance learning tech- HON. JOHN T. DOOLITTLE local educational agencies by ultimately reduc- nology. OF CALIFORNIA ing their expenses for satellite services and Other countries have education satellites. IN THE HOUSE OF REPRESENTATIVES equipment. Further, while distance learning Japan and Great Britain recognize the impor- can never replace classroom teachers, it does tant role that television plays in education. Thursday, June 22, 1995 provide educators with an additional tool with Japan relies heavily on in-school use of tele- which to teach. Mr. DOOLITTLE. Mr. Speaker, today, we vision to education children, and the British re- are fulfilling another important part of our Con- This is just the first step and certainly not quire all stations, commercial and noncommer- the only answer to solving the problems that tract With America; to bring Government to the cial, to carry educational and informative pro- people, to respond to their concerns on a bi- schools face in using satellites. However, I be- gramming for children. lieve that it is an important step for the Fed- partisan basis, to make Government more effi- An education satellite is in the Nation's best eral Government to take to help encourage cient. I have been contacted by members of interest. A satellite-based infrastructure dedi- the use of technology in the education sector. the public from all sides of the political spec- cated to education will bring equity to our edu- Improving the accessibility and quality of edu- trum to address the issues of CVPIA imple- cational system. While distance learning will cation will help our children and our national mentation. There is general agreement that never replace classroom teachers, it does pro- economy as a whole to become stronger and we must break new ground to improve our vide educators with an additional tool with more competitive in the global marketplace. water management in California. Members on which to teach. An education satellite will af- f both sides of the aisle are here today to sup- ford all Americans the opportunity they de- port new ways to approach these problems. serve to achieve their fullest potential. INTRODUCTION OF LEGISLATION In 1992, Congress passed the Central Val- TO ESTABLISH DISTANCE f ley Project Improvement Act, which substan- LEARNING THROUGH SATELLITE tially altered the way water is managed in PROTECT CALIFORNIA’S ECONOMY TECHNOLOGY California. Among its major provisions, the AND BEAUTY: KEEP THE BAN ON CVPIA provided for 800,000 acre-feet of water OFFSHORE OIL DRILLING HON. CONSTANCE A. MORELLA from the CVP to be primarily dedicated to fish OF MARYLAND and wildlife. It also established the CVP res- IN THE HOUSE OF REPRESENTATIVES HON. BOB FILNER toration fund and assessed charges against Thursday, June 22, 1995 OF CALIFORNIA both water and power interests into the fund. Mrs. MORELLA. Mr. Speaker, America's IN THE HOUSE OF REPRESENTATIVES We have spoken with a number of our con- distance education programs are in jeopardy. stituents in California, including irrigation dis- Thursday, June 22, 1995 Escalating costs and a decline in the availabil- tricts, municipalities, environmental organiza- ity of satellite capacity are putting distance Mr. FILNER. Mr. Speaker, for more than 14 tions and power customers who have ex- learning programs across the country at risk. years, Californians have enjoyed protection pressed concerns about the way certain provi- The distance education industry in the Unit- from the dangers of offshore oil drilling. It is sions of the VCPIA are being implemented or ed States provides a much needed service to imperative that the moratorium on offshore oil interpreted. They would like to see these is- health facilities and schools in hard-to-reach drilling be extended permanently. sues addressed. areas. More than 90 American colleges pro- This is an issue on which all Californians It has become increasingly apparent that vide education and instruction to school dis- agree: there are some provisions of the CVPIA that tricts, colleges, and libraries, nationally and First, local, State, and Federal elected offi- need modification. At the same time, there is internationally. If we do not address the short- cials support the ban: I have been contacted recognition by all the parties that now is not age in satellite capacity and the increased by Governor Wilson, our representatives in the the time for radical changes in the act, but costs, these programs will be curtailed. State legislature, and our local city councils in rather, for well thought out improvements The legislation that I am introducing today support of extending the ban. which ensure that the basic principles of the would create an adequate satellite system Second, business and environmentalist act are achieved in a manner which meets the dedicated to education. My bill would author- leaders support the ban: at a recent press real needs of the parties concerned. This bill ize the Secretary of Commerce to carry out a conference in San Diego, business, environ- provides reasonable and badly needed re- loan guarantee program under which a non- mental, and tourism officials came together to forms. It also clarifies and builds on the Bay- profit, public corporation could borrow funds to indicate their support for the permanent exten- Delta accord. It will ensure that there is no buy or lease satellites dedicated to instruc- sion of the ban on offshore oil drilling. double-counting of the 800,000 acre-feet of tional programming. Distance learning pro- Third, the voters of San Diego agree: in water devoted to environmental programs grams, which are now scattered across nu- 1986, more than 75 percent of San Diegans under the original CVPIA. merous satellites, could be collocated into one voted in favor of a ban on offshore oil drilling Finally, we are returning common sense to satellite. This will facilitate access to edu- within 100 miles of our coast. the CVPIA in the area of water pricing. It was cational programming, reduce technical prob- the stated intent of the CVPIA to create great- lems, and stabilize costs. Our key concern is the devastation that oil A satellite dedicated to education is an obvi- drilling would cause to San Diego's $3.6 bil- er incentives for the conservation of water. Im- ous way to improve educational opportunities lion-a-year tourism industry! Quite frankly, the plementation of the act discouraged some for all Americans. An education satellite would small amount of oil that some people guess is good water practices. For instance, there are afford students a high quality of education re- available in our kelp beds is simply not worth areas served by the Central Valley Project gardless of where they live or how much the damage to our economy that offshore oil where there is significant overdraft of the money they make. drilling would cause. aquifers. We need to provide opportunities for An education satellite will enable students in We all knowÐno matter how careful we the recharge of underground acquifers. Tiered rural America to take advanced placement areÐaccidents happen. We cannotÐwe will pricing was designed to charge higher prices chemistry, even though their school district notÐaccept the risk of offshore oil drilling so as more water is used. In a year such as this, does not have an advanced chemistry teach- that a few large oil companies can add to their when we have significant amounts of water in er. An education satellite will ensure that hear- wealth. We will not allow the economic and California, it is foolish to have a policy that dis- ing-impaired students will have access to in- environmental damage caused in Santa Bar- courages a water district from recharing its aq- structors that are certified in sign language. An bara, Prince William Sound, or the Gulf of uifer. education satellite will excite young minds and Mexico to be repeated anywhere on Califor- The reforms we propose today are bal- bring the finest instructors to our inner cities, nia's coast. anced. They address common sense issues where they are most needed. We urge this Congress to act now and pro- which must be changed. It is a bipartisan bill I have long supported the establishment of tect California's economy and beautyÐextend which will improve California's ability to man- an education satellite through my involvement the ban on offshore oil drilling permanently. age its water. E 1308 CONGRESSIONAL RECORD — Extensions of Remarks June 22, 1995 QUALITY MAMMOGRAPHY FOR stant. His faithful service has bridged the gap employees, especially those in uniform. I will OUR VETERANS by retaining those values which are critical for not be a party to those antics, and committed a healthy sense of community. By teaching public servants like Joe Kennedy illustrate the HON. JOHN D. DINGELL such traditional American values as volunta- degree of professionalism that swells the OF MICHIGAN rism, selflessness, and generosity, Wallace ranks of many agencies such as the National IN THE HOUSE OF REPRESENTATIVES Gailor exemplifies the things that have made Park Service. this country great. In the process, Wallace has Since January 1987, Joe has served with Thursday, June 22, 1995 become not only a great public servant, but a distinction and dedication as the Superintend- Mr. DINGELL. Mr. Speaker, I am pleased to model for the young people of Saratoga Coun- ent of the New River Gorge National River. He add my name as a cosponsor of H.R. 882, ty, a critical service in this day and age. arrived at a time when very little in the way of which requires the Department of Veterans Af- Mr. Speaker, I have always judged people basic infrastructure was in place at the park fairs, consulting with the Secretary of Health based on how much they return to their com- unit. I am pleased to report that under Joe's and Human Services, to put in place stand- munity. By that measure, Wallace Gailor is a leadership, a great deal has been accom- ards that will ensure quality mammography for truly great American. I ask that you and all plished including the construction of a state-of- our veterans who receive their health care in Members join me now in paying tribute to this the-art visitor center at Canyon Rim, a park Veterans Department facilities. real-life Santa Claus. We would all do well to headquarters complex at Glen Jean, a board- As a principal sponsor of the Mammography emulate his spirit of community service and walk at Sandstone Falls that is a naturalist's Quality Standards Act of 1992, I have been giving. delight, modern river access facilities at gratified to observe the impact of this legisla- f Cunard and Fayette Station, the restoration of tion. The Department of Health and Human historic Thurmond, and the establishment of Services, through the Food and Drug Adminis- TRIBUTE TO SANFORD an extensive trail system. During Joe's tenure, tration, moved quickly to establish and put in RUBENSTEIN he also supervised a very active land acquisi- place a credible process for accrediting mam- tion program, and park operations and serv- mography facilities. As of today, more than 90 HON. EDOLPHUS TOWNS ices improved vastly. These are just a few of percent of the mammography facilities in the OF NEW YORK his accomplishments. country have been certified as meeting the IN THE HOUSE OF REPRESENTATIVES Throughout this period, Joe Kennedy never standards of the American College of Radiol- Thursday, June 22, 1995 shirked from the call of duty, often going ogy. With its expert advisory committee, in- above and beyond what was required of him. Mr. TOWNS. Mr. Speaker, Sanford A. cluding input from mammography facilities After moving the park headquarters to Glen Rubenstein is the majority leader of the Rock- themselves, the FDA continues to work toward Jean, Joe received a phone call from an elder- land County legislature. He has served five development of additional standards as de- ly lady in the community who wanted him to terms as a country legislator representing the fined in the statute, which will be in place for go over to her home and remove a snake that town of Ramapo. future inspections and certification of facilities. As a practicing lawyer he has been de- was in the basement. The Superintendent did Breast cancer is the second leading cause scribed by Joana Molloy of the New York Post not hesitate to do so. Moreover, Joe has had of cancer deaths in American women. The po- as one of New York's ``High Powered Per- the distinction of serving as the Superintend- tential success of treating this frightening and sonal Injury Attorneys.'' Rubenstein, for over ent of not just one, but three, units of the Na- devastating illness is in large measure contin- 20 years has represented and presently rep- tional Park System at the same time. A little gent on accurate early diagnosis. Since mam- resents victims of the city's most terrible trage- more than 1 year after arriving at West Vir- mography is a critical and effective method for dies which have been the subject of headlines ginia, through my efforts, Congress passed detecting breast cancer early, it is crucial that in all of New Yorks daily newspapers. He has legislation to establish the Gauley River Na- this service be available, safe, and accurate. appeared on numerous television news and tional Recreation Area and the Bluestone Na- The Mammography Quality Standards Act is talks shows including ``The Phil Donahue tional Scenic River on tributaries of the New intended to achieve this result, and early indi- Show,'' ``CNN World News,'' ``Sally Jesse River. Joe has served as the Superintendent cations are that it is a whopping success. Raphael,'' ``Montel Williams,'' ``Good Day New of all three park units, making him the ``River The exemption of Veterans Affairs facilities York,'' and ``The McCory Report''. He hosts a King'' of the National Park Service. from the requirements of the MQSA should Joe Kennedy now retires after serving the weekly Manhattan cable television show called not mean that women who seek mammo- public as an employee of the National Park ``Lawyers Corner''. He also has been inter- grams in Veterans Department facilities must Service for 34 years. Starting his career at viewed by foreign journalists from Melbourne, fear receiving lower quality service. H.R. 882 Kings Mountain National Military Park in South Australia and by the BBC in England. Carolina during July 1961, he then served seeks to ensure that these facilities are in line He is a member of the board of directors of briefly at Fort Pulaski National Monument in with those of the rest of the country, so that the New York State Trial Lawyers Association Georgia before being transferred to the Na- our women veterans can be assured of the and the board of governors of the Association tion's Capital in July 1964 where he worked at safest and highest quality mammography. of Trial Lawyers of the City of New York. He the Department of the Interior until October f is a trustee of the New York State Democratic 1968. After that, he headed south again and WALLACE GAILOR, SARATOGA Committee. Rubenstein has been recognized by Presi- served at the Everglades National Park until COUNTY’S SANTA CLAUS dent Clinton for his work for democracy in October 1971 when he heeded that age old Haiti and peace in the Middle East. He is call of ``go West young man.'' Between Octo- HON. GERALD B.H. SOLOMON presently working with President Aristide of ber 1971 and August 1979, Joe worked at the OF NEW YORK Haiti on the economic revitalization of that Glen Canyon National Recreation Area, and IN THE HOUSE OF REPRESENTATIVES country's badly battered economy. then, as Superintendent of Dinosaur National Monument until moving to West Virginia in Thursday, June 22, 1995 f 1987. Mr. SOLOMAN. Mr. Speaker, I rise today to A TRIBUTE TO JOE KENNEDY I have been extremely proud to have had pay tribute to a man who has brought joy to the honor to know and work with Joe Ken- the lives of countless children and adults alike HON. NICK J. RAHALL II nedy. We have gone through a lot of dedica- in Saratoga County, NY. Wallace Gailor has OF WEST VIRGINIA tion ceremonies together, ran a goodly num- portrayed a real-life Santa Claus since 1940, ber of whitewater rapids on both the New and IN THE HOUSE OF REPRESENTATIVES over 50 years no. Clearly, he personifies the Gauley togetherÐduring which he never fell sense of giving and caring exemplified by the Thursday, June 22, 1995 out of the raft, hiked a trail or two, and had mythical Santa Claus we all adore. Mr. RAHALL. Mr. Speaker, I rise today to some great discussions. To say the least, I am What better way, Mr. Speaker, to spread the pay tribute to Mr. Joe Kennedy, who on July dismayed that he is retiring. His humor, pa- spirit of Christmas than to voluntarily entertain 3, will retire from the National Park Service tience, fortitude, and vision will be sorely one's neighbors for such a prolonged period of and his position over the last 81¤2 years as Su- missed. time. Much has changed in this country since perintendent of the New River Gorge National In conclusion, it is my understanding that 1940. However, thanks to Wallace Gailor, the River in West Virginia. Joe and his wife Jayne will move back to their depiction of Santa Claus around the commu- It is sad, but true, that many in this body native State of North Carolina. He will bring nities of Saratoga County has remained a con- these days take price in denigrating Federal with him a wealth of memories from his years June 22, 1995 CONGRESSIONAL RECORD — Extensions of Remarks E 1309 with the National Park Service, and he will Hearing after hearing has outlined the heavy to a civil monetary penalty may bring a civil bring with him our friendship and respect. fraud, waste, and abuse in health care, yet lit- action On behalf of myself and Jim Zoia of my tle is done to remedy the problem. Ample evi- V. Amendments to exclusionary provisions in fraud and abuse program staff, we wish Joe and Jayne Kennedy the dence exists to show that this activity is cost- A. The Secretary would have the addi- very best. ing us millions of wasted dollars each day. We tional authority to exclude individuals and f must not wait to enact tougher penalties and entities based on felony convictions relating enforcement procedures for health care fraud to fraud, theft, embezzlement, breach of fidu- HEALTH CARE ANTIFRAUD AND nor should we wait to simplify the administra- ciary responsibility or other financial mis- ABUSE INITIATIVE OF 1995 tive processes associated with our health care conduct in connection with the delivery of a system. The wasted dollars are far too valu- health care item or service B. The Secretary’s current discretionary HON. FORTNEY PETE STARK able. This bill should be passed this year. exclusion authority would be extended to OF CALIFORNIA The following is a summary of the bill: permit the Secretary to exclude individuals IN THE HOUSE OF REPRESENTATIVES ANTI-FRAUD AND ABUSE INITIATIVE OF 1995 who retain an ownership or control interest Thursday, June 22, 1995 TITLE: FRAUD AND ABUSE in a sanctioned entity C. Minimum period of exclusion for certain Subtitle A: Amendments to anti-fraud and abuse violations already specified in statute would Mr. STARK. Mr. Speaker, today I am intro- provisions applicable to Medicare, Medicaid, be established ducing H.R. 1912, the Health Care Fraud Pre- and State health care programs VI. Amendments to quality of care sanc- vention and Paperwork Reduction Act. This bill I. Amendments to anti-kickback statutory establishes an effective national program to tions provisions A. Practitioners or persons who violate control fraud, waste, and abuse in our health A. An intermediate civil monetary penalty quality of care obligations as determined by care system. of up to $50,000 would be established for anti- the Peer Review Organization would be sub- When Willie Sutton was asked why he kickback violations ject to a civil monetary penalty of not more robbed banks, he responded: ``Because that's B. The current criminal fine would be in- than $10,000 where the money is.'' Today's criminals con- creased to no more than $50,000 B. The additional requirement that the tinue to be attracted to where the money isÐ II. Amendments to exceptions to anti- practitioner be shown to be ‘‘unwilling or kickback statutory provisions unable’’ to meet PRO quality of care obliga- in health care. State officials in Florida report A. Current exception for discounts would that drug traffickers are changing professions tions before the Secretary may exclude the be modified to prevent providers from giving individual from participating in Medicare because the money is bigger in health care discounts in the form of a cash payment would be deleted. fraud and the risk is less. B. Current exception for bona fide employ- VII. Revision of criminal penalties Fraudulent activities involve both Govern- ment relationships would be modified to re- A. For providers who violate specified ment programs and private payers. Federal quire that any remuneration be consistent fraud and abuse provisions, penalties would outlays for Medicare along totaled $162.5 bil- with fair market value, and not be deter- include fines, treble damages, and imprison- lion in fiscal year 1994, and are expected to mined in a manner that takes into account ment the volume or value of any referral VIII. Amendments to criminal and civil exceed $177 billion in 1995 and $198 billion in C. Current exception for waiver of coinsur- laws 1996. GAO estimates that fraud and abuse in ance would be modified to allow for such ar- A. A criminal violation for health care the health care industry accounts for an esti- rangements if— fraud would be created for the following mated 10 percent of our yearly private and (1) A waiver or reduction of coinsurance is crimes public expenditures. In 1994, this would have made pursuant to a public schedule of dis- (1) Whoever knowingly executes a scheme approached $94 billion. That amounts to ap- counts which the person is obligated as a to defraud any health plan or person, in con- proximately $258 million a day or $11 million matter of law to apply; or nection with the delivery of or payment for health care items or services every single hour. (a) The person determines in good faith that the individual is indigent, or (2) Penalties would include a fine and a The bill would establish an all-payer health (b) The person fails to collect coinsurance prison term of not more than 5 years care fraud and abuse program, coordinated by or deductible amounts after making reason- B. Forfeitures for violations of fraud stat- the Office of the Inspector General [OIG] of able efforts, and utes the Department of Health and Human Serv- D. An exception would be provided for cer- (1) If the court determines that a Federal ices. In fiscal year 1994, the OIG generated tain arrangements where providers are paid health care offense is of a type that poses se- savings, fines, restitutions, penalties, and re- wholly on a capitated basis rious threat to a person’s health, or has sig- III. Amendments to civil monetary penalty nificant detrimental impact on the health ceivables of over $8 billion. This represents care system, the court could order the per- $80 in savings for every Federal dollar in- statutory provisions A. A civil monetary penalty would be es- son to forfeit property used in or derived vested in their office, or $6.4 million in savings tablished for the following improper con- from proceeds from the offense and is of per OIG employee. duct: value proportionate to the offense H.R. 1912 would extend Medicare and Med- (1) Offering inducements to individuals to Subtitle B: Establishment of all-payer health icaid's proven enforcement remedies of civil receive from a particular provider an item or care fraud and abuse control program monetary penalties and criminal penalties to service I. The Secretary of Health and Human private payers. The policies are proven and (2) Engaging in a practice which has the ef- Services (acting through the Inspector Gen- represent 25 years of experience in fighting fect of limiting or discouraging the utiliza- eral of HHS) and the Attorney General would fraud and abuse under Medicare. The bill is tion of health care services establish and coordinate an all-payer na- (3) Substantially fails to cooperate with a tional health care fraud and abuse control an improved version of the antifraud measures quality assurance program or a utilization included in last year's health reform legisla- program review activity II. The Attorney General and Inspector tion. (4) Substantially fails to provide or author- General would be authorized to conduct in- Equally important as preventing and detect- ize medically necessary items or services vestigations, audits, evaluations and inspec- ing fraud and abuse in the health care system that are required to be provided under the tions relating to the delivery of and payment is the deletion of waste. Forms, other paper- health plan, if the failure has adversely af- for health care and to have access to all work, and burdensome administrative require- fected (or had a substantial likelihood of ad- records available to health plans relating to ments increase the patient costs and frustrate versely affecting) the individuals the program B. Civil monetary penalties would be in- the provider. III. Coordination with law enforcement creased to no more than $10,000 for each false agencies and third party insurers The bill would improve the efficiency and ef- or improper item or service A. The Secretary and the Attorney General fectiveness of the health care system by es- C. The assessment would be increased to would be required to consult with, and ar- tablishing standards and requirements for three times the amount claimed and interest range for the sharing of resource data with electronic transmission of certain health infor- shall accrue on the penalties and assess- State law enforcement agencies, State Med- mation. H.R. 1912 would reduce the adminis- ments after a final decision icaid fraud control units, State agencies re- trative cost of the current system and make D. If within one year the Attorney General sponsible for the licensing and certification health insurance documents easier for patients does not initiate a criminal or civil action of health care providers, health plans, and the Secretary could initiate a civil monetary and providers to understand. A uniform health public and private third party insurers penalty proceeding IV. General provisions regarding all-payer claims card would be distributed to each bene- IV. Private Right of Action fraud and abuse program ficiary of a health plan, and all medical records A. Any person that suffers harm as a result A. All health plans, providers, and others and reporting would be transmitted using a of any activity of an individual or entity would be required to cooperate with the na- uniform electronic format. which makes the individual or entity subject tional fraud control program and to provide E 1310 CONGRESSIONAL RECORD — Extensions of Remarks June 22, 1995 such information as is necessary for the in- (1) The system would be required to be able among her colleagues. For almost half a cen- vestigation of fraud and abuse to coordinate benefit information among tury she has been the epitome of a public (1) Procedures would be established to as- health plans and Medicare servant. sure the confidentiality of the information (2) The system would also be required to required by the national fraud and abuse pro- accept inquiries from health care providers Mr. Speaker, I am proud to salute Dorothy gram and the privacy of individuals receiv- and health benefit plans electronically Brown for a lifetime of service to her commu- ing health care services through the use of electronic card readers, nity. It is people like Dorothy who make local B. Health plans and providers would be re- touch-tone telephones, or computer modems government work for its citizens, by address- quired to disclose information that the Sec- (3) Health benefit plans that fail to provide retary deems appropriate, including informa- for an electronic verification system would ing their needs on a personal level. The con- tion relating to the ownership, control and be subject to civil monetary penalties tributions of these exemplary public servants management of a health care entity III. Uniform claims and electronic claims should not be overlooked. Their hard work and IV. Establishment of fraud and abuse ac- data set commitment are the cornerstone of strong and count (A) All claims submitted by providers effective local government. Individuals such as A. Civil money penalties, fines, forfeitures would be transmitted using a uniform elec- Dorothy Brown deserve our strong support and damages assessed in criminal, civil or tronic format to be developed by the Sec- and admiration. administrative health care cases, along with retary any gifts and bequests would be deposited in (B) The Secretary would develop a single, I extend my warmest congratulations to an ‘‘All Payer Health Care Fraud and Abuse uniform coding system for procedures and di- Dorothy on this well-deserved tribute, and Control account’’ agnoses commend her for 48 years of distinguished B. The assets in the Account would be (C) The Secretary would provide for a work. I wish her many years of good health used, in addition to such appropriated unique identifier code for each health service and happiness in her retirement. amounts, to meet the operating costs of the provider and health plan national health care fraud control program (D) Health service providers and health f Subtitle C: Application of fraud and abuse au- plans that fail to submit a claim for pay- thorities under the Social Security Act to ment in a form and manner consistent with TRIBUTE TO MINA AND JORDAN the standards would be subject to civil mone- other payers RUSH I. Application of civil monetary statutory tary penalties penalties to all payers (E) All claims for clinical lab tests would A. The provisions under the Medicare and be submitted directly by the person or entity Medicaid programs which provide for civil that performed the test. HON. HENRY A. WAXMAN IV. Electronic medical records and report- monetary penalties for specified fraud and OF CALIFORNIA abuse violations (as amended by this Act) ing would apply to similar violations with re- (A) The Secretary would promulgate stand- IN THE HOUSE OF REPRESENTATIVES spect to all payers ards for hospitals concerning electronic med- B. The following activity would be prohib- ical records Thursday, June 22, 1995 ited and subject to a civil monetary penalty (B) As a condition of Medicare participa- not to exceed $10,000: tion each hospital would be required to Mr. WAXMAN. Mr. Speaker, please join me (1) Expelling or refusing to re-enroll an in- maintain hospital clinical data in electronic in saluting Mina and Jordan Rush, who will re- dividual in violation of federal standards for form in accordance with these standards ceive the service award for their vision of the health plans or State law (C) State quill pen laws that require medi- cal or health information to be maintained future at the 47th Annual Tribute Dinner of (2) Engaging in any practice that would B'nai David-Judea Congregation on June 25, reasonably be expected to have the effect of in written form would be pre-empted denying or discouraging enrollment in a V. Uniform hospital cost reporting 1995. health plan on the basis of a medical condi- (A) Each hospital would be required to re- Mina Rush has served B'nai David-Judea tion port information on costs to the Secretary in Congregation in numerous capacities for many (3) Engaging in any practice to induce en- a uniform manner consistent with standards established by the Secretary years. She has been a member of the board rollment in a health plan through represen- of directors, membership chairman, and co- tations which the person knows or should f know are false chairman of the annual banquet. Subtitle D: Advisory opinions on kickbacks and DELAURO HONORS DOROTHY Mina Rush has always generously and self- self-referral BROWN OF STRATFORD UPON lessly devoted herself to worthwhile causes. I. Issuance of Advisory Opinions HER RETIREMENT She has served the State of Israel and co- A. The Secretary would require an individ- operated with the Israel Defense Forces in her ual requesting an advisory opinion to pay a HON. ROSA L. DeLAURO work with the Volunteers for Israel. She also fee equal to the costs incurred by the Sec- led the recent Kiev emergency relief project retary to issue the opinion. OF CONNECTICUT IN THE HOUSE OF REPRESENTATIVES that provided enormous quantities of food for Subtitle E: Preemption of State corporate a starving community. practice laws Thursday, June 22 1995 I. Preemption of State Laws Prohibiting Jordan Rush has had a distinguished career Ms. DELAURO. Mr. Speaker, on Friday, Corporate Practice of Medicine in entertainment as a producer, director, and A. No provision of State or local law would June 23, 1995, the town of Stratford will pay actor. He served in these roles in ``The Mir- apply that prohibits a corporation from prac- tribute to Dorothy Irene Brown in honor of her ror,'' which was honored at the Southwest ticing medicine. retirement. After 48 years of exemplary serv- Film Festival. As a humanitarian, he has TITLE II: INFORMATION SYSTEMS AND ice to the residents of Stratford, Dorothy chaired Volunteers for Israel and Adopt a So- ADMINISTRATIVE SIMPLIFICATION Brown will be retiring from the position of town viet Family, a program of the Jewish Federa- I. Uniform health claims card purchasing agent. tion. A. Each beneficiary of a health benefit Dorothy Brown began her career with the plan, including Medicare, would be issued a town of Stratford in 1947. Since then, she has Proud parents of Tzvia, Atara, and Harel, uniform health claims card worked tirelessly to provide the highest stand- the Rushes have always been concerned with B. Each card would include a uniform ard of service to the town's citizens. Indeed, the future of our Jewish youth. Their entire health claims identification number which her dedication and attention to detail have be- family worships regularly at B'nai David-Judea would be the Social Security number of the Congregation. They have participated in nu- beneficiary come legendary. Among her many achieve- ments are the implementation of numerous merous Torah study classes and have been C. The card would be in a form similar to active in the Eliztur Sports League, of which that of a credit card and would have infor- cost-saving measures that have greatly bene- mation encoded in electronic form fited the town of Stratford and its residents. Jordan Rush was a founder. II. Requirement for entitlement verifica- Dorothy is an extremely conscientious and Mr. Speaker, I ask you and my colleagues tion systems dedicated employee and will be sorely missed to join me in congratulating Mina and Jordan A. The Secretary would provide for an elec- by her colleagues. Rush for receiving the prestigious Service tronic system for the verification of an indi- Dorothy has also served with distinction as Award of B'nai David-Judea Congregation and vidual’s enrollment in a health plan, includ- ing Medicare and entitlement to benefits president of the Stratford Supervisors Union, in expressing appreciation for their many con- B. The Secretary would establish standards and chairwoman of the Stratford employees tributions to our community. I extend to them respecting the requirements for certification pension fund. Her strong and insightful leader- great thanks and wish them every happiness of entitlement verification systems ship skills have earned her enormous respect and success in all future endeavors. June 22, 1995 CONGRESSIONAL RECORD — Extensions of Remarks E 1311 PERSONAL EXPLANATION scure—despite that criticims, the Congress couching its strategy for the Bosnian con- and informed Americans remain very appre- flict in a desire to control and limit the vio- ciative and sensitive to the extremely dif- lence. While that strategy may have worked HON. CAROLYN B. MALONEY ficult but very necessary role these to some degree within Bosnia, it does not ad- OF NEW YORK UNPROFOR troops have assumed in Bosnia. dress the question of avoiding further con- IN THE HOUSE OF REPRESENTATIVES France and Britain, in particular, have flict driven by ethnic hatreds elsewhere. And played a central role in this operation and Thursday, June 22, 1995 in the long run, such a strategy concedes the their troops have suffered accordingly. game to the party that is willing to be the Mrs. MALONEY. Mr. Speaker, on rollcall As our NATO allies, you have our support worst thug on the block. vote No. 390, I inadvertently missed the vote. and solidarity and will continue to have it as Quite understandably a great many people Had I been present, I would have voted ``no.'' your troops try to conduct their difficult in my country, and in yours as well, believe mission in Bosnia. that it is the parties in the Yugoslavian con- f America is fully engaged as your ally in flict themselves who ultimately will decide NATO in the advanced contingency planning THE CRISIS IN BOSNIA whether to live or die with one another, in to withdraw UNPROFOR from Bosnia if this other words they have concluded that we proves necessary. If NATO needs to assist the cannot force peace in Bosnia among people HON. GERALD B.H. SOLOMON UN in withdrawing from Bosnia, I would whose deep hatred sets them to kill each urge that NATO goes in with overwhelming other. In the end, the most the international OF NEW YORK force and that the operation is executed IN THE HOUSE OF REPRESENTATIVES community may be able to say about Bosnia swiftly. We are committed by our President is that we tried, albeit haltingly, inad- to provide approximately half of the personal Thursday, June 22, 1995 equately, and timidly. But humanity de- for such an operation. mands that the effort be made. Mr. SOLOMON. Mr. Speaker. I commend to Certainly we must recognize that the attention of Members a thoughtful state- UNPROFOR cannot stay in Bosnia forever. The American delegation supports the res- olution. ment concerning the crisis in Bosnia that was The force has already been there for three delivered on May 29, 1995 at the North Atlan- years. It may be that the parties in Bosnia f tic Assembly by our good friend and col- no longer want UNPROFOR to stay or that they will continue to try to manipulate TRIBUTE TO NAVY LT. COMDR. league, Representative DOUG BEREUTER: UNPROFOR for their own interests. In No- TOM DEITZ NORTH ATLANTIC ASSEMBLY DEBATE ON vember, if UNPROFOR has not already been BOSNIA withdrawn, and if the parties have not Thank You, Mr. President. The events agreed on the outline of a peace settlement, HON. ROBERT K. DORNAN which have led this Assembly to undertake we should then consider not renewing the OF CALIFORNIA today’s special debate on Bosnia are both current mandate as it expires. In approach- IN THE HOUSE OF REPRESENTATIVES compelling and tragic. At the outset, I know ing that decision, however, we also must rec- I can speak for the Congress and the Amer- ognize that the prospect of the withdrawal of Thursday, June 22, 1995 ican people in one regard and that is to con- UNPROFOR may influence the warring sides Mr. DORNAN. Mr. Speaker, I rise today to vey our grave concern for the safety of all in Bosnia to come to a negotiated settle- recognize Lt. Comdr. Tom DeitzÐour resident ment. Or withdrawing UNPROFOR may only personnel serving for the UN in Bosnia. On Navy Seal and special operations warfare spe- this America’s Memorial Day our thoughts be the prelude to a total bloodbath that will and prayers are now especially for those be appalling to the civilized world. Which cialist here in CongressÐfor his distinguished troops who have been detained as hostages or will it be? There have never been any single service to the U.S. Special Operations Com- who are under imminent threat by the or easy solutions to the conflict in Bosnia. mand, the U.S. Navy, and the entire nation as Bosnian Serbs. We especially convey our There are none in the current crisis either. the Special Operations Command legislative li- condolences to the families and the French The American Government strongly be- aison for Naval Special Warfare programs. In government for the French soldiers who were lieves that despite the stark conditions in this capacity, Tom quickly established a solid so recently killed in the line of duty. Bosnia we must keep the negotiating track open. The work of the Contract Group should reputation with both members of Congress There is very little consensus on the situa- and their staff due to his extensive knowledge tion in Bosnia but strong views in America continue. Together as allies we must keep as in your own countries. striving to find a negotiated solution to the of all special operations issues. Fresh from his The Clinton Administration supports the conflict acceptable to all sides. Hopeless as daring and highly decorated exploits in the view that UNPROFOR should remain in that seems, we cannot give up, but neither Persian Gulf during Desert Storm, Tom was Bosnia. Present circumstances may dictate should we delay remedies to the current dan- able to give us an insider's view to the unique that UNPROFOR will have to leave, but gers faced by UNPROFOR and civilians while and powerful special operations force which America’s view is that every effort must be we seek a negotiated settlement. In conclusion, I would say that the present we in Congress have worked so hard to sup- made to keep the UN there—but I stress turn of events in Bosnia makes it plain that port during defense budget deliberations. under acceptable conditions. our policies and the means provided to con- We must all recognize that there has al- Tom Deitz has played a vital part in building duct them are not bringing the conflict in ways been a tension and a contradiction be- this congressional support by earning our trust Bosnia closer to an end. It seems plain that tween the tough mandates adopted at the UN and respect. His effective work on Capitol Hill either we alter our objectives and strategy, Security Council in New York and the hard is legendary. Because of Tom's dedication or we must escalate UNPROFOR’s resources realities on the ground in Bosnia. The cur- and their use. and commitment to excellence, the U.S. Navy rent crisis dictates that we have to decide Our policymakers, myself included, do un- Seals, the U.S. Special Operations Command, once and for all whether UNPROFOR is a derstand that the Bosnian ethnic conflict or and the entire Department of Defense will long peacekeeping force or a peace making force, civil war is probably not an isolated situa- reap the benefits of his tenure on Capitol Hill. i.e., an enforcer. As we tragically learned in tion. The aftermath of the age of Com- All of my colleagues and I bid Tom, his wife Somalia it cannot be both. munism and the end of the Cold War has left We must work together within the UN Pam, and their son and future Seal Tyler, a Europe and other continents with hundreds fond farewell. Good luck and Godspeed at framework to firm-up the UNPROFOR man- of situations of potential ethnic conflict or date and eliminate its ambiguities to the ex- severe civil strife, many of them with the po- your next assignment at Seal Central on Coro- tent possible. We must examine the increas- tential of being as serious as Bosnia. How nado Island, California. ingly cumbersome and dangerous relation- then do we send the right signal to those f ship between NATO and the UN in Bosnia; it elsewhere in Europe, the parts of the former is disastrously slow and obviously, in my Soviet Union and Africa that the West can RECOGNITION OF SENIOR CHIEF personal view, Mr. Akashi is not the right and will take measures necessary to ensure GROSS man for is position. Specifically, we must that there is not a violent spiralling or allow military commanders on the ground ethnicly driven violence in or around Eu- more decision-making discretion, especially rope? HON. WALTER B. JONES, JR. concerning the disposition, safety and well- I do not have an answer for this question, OF NORTH CAROLINA being of peacekeeping troops. I have con- but I would like to close with an observation IN THE HOUSE OF REPRESENTATIVES fidence in General Rupert Smith and his key by Robert Tucker, a distinguished American multinational officers. professor of diplomacy, ‘‘Interdependence it- Thursday, June 22, 1995 Many countries represented here today self is not constitutive of order. . . . Inter- Mr. JONES. Mr. Speaker, I rise today to have troops serving honorably in Bosnia. I dependence creates the need for greater want to reassure those colleagues here that order because it is as much a source of con- recognize and honor Ship's Serviceman Sen- we in the U.S. Congress, despite criticism flict as consensus.’’ ior Chief David Gross, as he retires upon com- you may have heard from time to time from Some may therefore submit that the UN pletion of over 23 years of faithful service to individual Members, both prominent and ob- and the international community has been our Nation. E 1312 CONGRESSIONAL RECORD — Extensions of Remarks June 22, 1995 A native of Moyock, NC, Senior Chief Gross plane, and visited 13 states and 42 Indiana Losing the 1972 election did not end was inducted in the Navy in 1972. After grad- counties. Welsh’s public service or his contributions to uating from recruit training at Naval Training Major accomplishments of his administra- Indiana. tion were creation of the Indiana Civil He served on numerous boards, commis- Center, Great Lakes, IL, he served in various Rights Commission, which investigates com- sions and agencies for both the city of Indi- managerial billets including Navy exchanges plaints of discrimination; formation of the anapolis and the state. Welsh was particu- and bachelor enlisted quarters. In addition, he Department of Administration; and improv- larly instrumental in working for the im- served as a shore patrol officer and as a re- ing the general quality of state government provement of mental health facilities and cruiter. During his most recent shore duty, he by extending the merit system. treatment in Indiana. He also joined other served as a logistics management assessment As Gov. Evan Bayh said, he led the state at political, educational, religious and civic team member at the NAVSURFLANT Readi- a time of great growth and presided over the leaders in lobbying against legalized gam- building of the state’s interstate highway bling in the state. ness Support Group. system, construction of flood-control res- Furthermore, he maintained an active in- Senior Chief Gross accumulated 16 years of ervoirs, improvement in the mental health volvement in the Democratic Party and sea duty aboard various ships including the system and the first land acquisition plan for served as an advisor to many Hoosier politi- U.S.S. Vulcan (AR±5), U.S.S. Conolly (DD± public recreation since the 1920s. cians, including former Indiana Sen. Birch 979), U.S.S. America (CV±66), U.S.S. Coontz Welsh took pride in biting the bullet in Bayh. (DDG±40), U.S.S. Hayler (DD±997). He was a proposing Indiana’s first sales tax. But much ‘‘Governor Welsh was a great man,’’ said plank owner aboard U.S.S. Supply (AOE±6), of the public expressed pain and resentment Gov. Evan Bayh, who also received consider- the Navy's newest class of fast combat sup- when the 2 percent bite was enacted in 1963. able help and advice from Welsh. ‘‘He was Forming Indiana Citizens Against Legal- greatly loved by all Democrats and admired port ships, during his last tour afloat. ized Gambling, working to improve mental and respected by Democrats and Republicans His impact on crew morale and readiness health treatment facilities, serving on a task alike.’’ has been immeasurable. In addition to provid- force on property tax control and the May- He will be sorely missed by Hoosiers of all ing the finest ship's store, laundry, and barber or’s Intergovernmental Relations Task political persuasions who benefited from his services to crew members, he maintained tight Force, serving on the Greater Indianapolis leadership. financial accountability. Senior Chief Gross Progress Committee and heading its task f was also instrumental in providing logistics force on poor relief were but a few of his many contributions to city, state and na- TRIBUTE TO REPUBLIC, MI, IN support to the fleet during his tour as a logis- tional life. HONOR OF ITS 125TH ANNIVER- tics management team member. Always a modest and able leader, a perfect SARY Producing one success story after another, gentleman, gracious, with a sparkling sense Senior Chief Gross was awarded three Navy of humor, Matt Welsh won many honors, Commendation Medals, the Navy Achieve- made many friends and had many admirers HON. BART STUPAK ment Medal, the Meritorious Unit Commenda- during a productive public life. His death at OF MICHIGAN tion, the Battle ``E,'' five Good Conduct Med- 82 takes an honorable, respected and charm- IN THE HOUSE OF REPRESENTATIVES als, two Navy Expeditionary Medals, two Na- ing public servant from the Indiana scene. Thursday, June 22, 1995 tional Defense Service Medals, Southwest [From the Indianapolis News, May 30, 1995] Mr. STUPAK. Mr. Speaker, I rise today to Asia Service Medal with Bronze Star, four Sea MATTHEW E. WELSH offer my sincere congratulations to the Village Service Deployment Ribbons and Kuwait Lib- Matthew E. Welsh, Indiana’s 41st governor of Republic in Michigan's Upper Peninsula eration Medal. In addition, he attained Enlisted and one of the most decent and able men which is celebrating its 125th anniversary this Surface Warfare Specialist qualification. ever to serve in Indiana politics, passed away year. A man of Ship's Serviceman Senior Chief over the weekend. The pioneers who settled in northern Michi- Gross' talent and integrity is rare indeed. Welsh, a lawyer and former state legisla- gan, and especially in the area later known as While his honorable service will be genuinely tor, first attempted to capture the gov- Republic, survived boom times and bad times ernor’s seat in 1956, losing the Democratic missed, it gives me great pleasure to recog- with traditional American fortitude. nize him before my colleagues and to wish nomination to Ralph Tucker. Many consid- ered that loss a blessing in disguise for From the first recorded purchase of land in him ``Fair Winds and Following Seas,'' as he Welsh, believing that the election of Repub- the area by William Pratt on March 13, 1851, concludes a long and distinguished career in lican Harold Handley was inevitable. the town, originally known as Iron City, flour- the U.S. naval service. Four years later, Welsh got his party’s ished. f nomination and, with some help from a From the beginning, iron mining was an im- strong presidential run by John Kennedy, portant industry to Republic. In 1856, an iron TRIBUTE TO THE LATE HONOR- won with a 23,177-vote victory over former vein was discovered by explorer Silas Whet- ABLE MATHEW E. WELSH, Lt. Gov. Crawford Parker. stone Smith, for whom the bay and mountain FORMER GOVERNOR OF INDIANA A moderate Democrat, Welsh was credited with boosting merit employment in state or iron were named. The first and most suc- government, creating the Indiana Civil cessful of the iron companies was formed in HON. ANDREW JACOBS, JR. Rights Commission, pushing school consoli- 1870. On November 3, 1871, Peter Pascal, an OF INDIANA dation and presiding over construction of the agent of the Republic Iron Mining Co., directed IN THE HOUSE OF REPRESENTATIVES interstate highway commission. He has also clearance of lands for the company. The first been credited with, or blamed for, imposing Thursday, June 22, 1995 permanent settlers arrived in 1872, and mining the state sales tax. operations began by 1873. Mining and lumber- Strongly believing in the necessity for Mr. JACOBS. Mr. Speaker, former Gov- ing industries attracted railroads, and the town ernor, Matthew E. Welsh, was nothing less overhauling the state’s revenue system, in- cluding the imposition of the sales tax. flourished. than a noble legend in Indiana and to a con- Like many other towns in Michigan, Repub- siderable extent our entire nation. Welsh had to battle a Republican-controlled Indiana General Assembly to get the job lic had a prosperous lumbering industry, espe- He was a giant among Hoosiers. We lost done. cially from the 1870's to the early 1900's. him on May 28, 1995. The Indiana Constitution prevented him Lumbering was an important source of em- He was a man of extraordinary scholarship from seeking another consecutive term. In ployment, and it continues to be a thriving in- and civility, quite literally a scholar and a gen- 1972, however, he ran for governor again. Scars from that sales tax battle, coupled dustry. tleman. By 1928, the economy slowed down, and The following tributes were editorials in both with having weak presidential coattails from Democratic presidential nominee George Republic residents, along with the rest of the the Indianapolis Star and the Indianapolis country, found themselves in the midst of the News: McGovern and a strong Republican oppo- nent, Otis Bowen, led to Welsh’s defeat the Great Depression. With the advent of the New [From the Indianapolis Star, May 31, 1995] second time he sought the governor’s office. Deal and the creation of the Works Progress MATTHEW E. WELSH With Welsh and Bowen running for the of- Administration, many improvements were As Indiana’s 41st governor from 1961 to fice, however, it was a race Hoosier voters made to the town and surrounding area. 1965, Matthew E. Welsh was one of the state’s could not lose. Although Republic was for many years a ‘‘There was no one in government or poli- busiest and most productive public servants. mining community, the closing of the mine in In public life for half a century, as an at- tics I respected more,’’ said Bowen of his torney and Democratic elected official, he former opponent. ‘‘Matt Welsh was a most 1980 presented an enormous challenge to was respected by members of both parties. honorable and dedicated public servant. Indi- local residents. Fires in the area also took a In his first year as governor, he gave 260 ana is better off for his having been gov- tool, but the village rebuilt. Today, Republic is speeches, traveled 27,000 miles by car and ernor.’’ a viable, dynamic, and friendly community. June 22, 1995 CONGRESSIONAL RECORD — Extensions of Remarks E 1313 As part of its celebration of its 125th anni- Today Maury County mourns the loss of ful that upon her return to her home State, versary, Republic residents, the Republic Area one of its greatest native sons. Sister Anne has continued to help those in Historical Society, and the Ethnic Days Com- Lindsey Nelson was loved and we will all need. We constantly benefit from her efforts to miss him. mittee have planned several events, including model for others the values she upholds as a a Mid-Summer Festival in Munson Park, a f servant to the Church of Christ. Quasquicentennial Home Tour, and construc- ASSOCIATED GENERAL In New Haven, Sister Anne has continued tion of a Heritage Quilt. CONTRACTORS OF AMERICA her mission of healing and comforting the sick I know my colleagues join me in honoring for over two decades at Saint Raphael's Hos- the residents of the Village of Republic as they pital. First as associate administrator, then as celebrate the 125th anniversary of the found- HON. BILL BAKER president of the hospital, and finally as presi- ing of Republic. OF CALIFORNIA dent and chief executive officer of the Saint f IN THE HOUSE OF REPRESENTATIVES Raphael Healthcare System, Sister Anne has Thursday, June 22, 1995 provided Connecticut residents with the high- TRIBUTE TO THE LATE LINDSAY est quality health care. It has been my per- Mr. BAKER of California. Mr. Chairman, on NELSON sonal pleasure to work with her to extend June 29, 1920, California's first chapter of the health care to those in the Greater New Associated General Contractors of America HON. ED BRYANT Haven area. Her inner strength has been a [AGC] met in Los Angeles. Since then, the OF TENNESSEE true inspiration. California AGC has played a vital role in the IN THE HOUSE OF REPRESENTATIVES Sister Anne's commitment to enhancing the growth of California's economy and become community by helping others extends well be- Thursday, June 22, 1995 the largest regional construction association yond Saint Raphael's and includes efforts on Mr. BRYANT of Tennessee. Mr. Speaker, I west of the Mississippi River. behalf of causes as diverse and worthwhile as wish to make all of my colleagues in this body Next year, the AGC is likely to contribute the Mercy Center and the Shubert Opera aware that one of America's most famous over one-half million jobs to our economy. Board. voices in sports television and radio recently Tens of thousands of men and women, from passed away. Mr. Lindsey Nelson was a long- Redding to Escondido, will find rewarding em- Her many contributions, especially her out- time announcer for numerous sporting teams ployment in construction and its related crafts. standing work to further the Easter Seal Good- and events at both the collegiate and profes- Membership of the AGC includes building, will Rehabilitation Center's mission, have sional level. I am proud to say that Mr. Nelson highway, underground, and utility construction earned her the Laurel Distinguished Service was a native of the Seventh Congressional contractors, as well as subcontractors, mate- Award. Sister Anne knows that many people District of Tennessee, hailing from Columbia in rial producers, and service providers. The with special challenges, not just those who are Maury County. One of my good friends, Don AGC works closely with professional groups able to pay, need the rehabilitation center's Hinkle, is the editor of the Daily Herald in Co- like the American Institute of Architects and help to become more independent. As chair- lumbia, and he recently wrote a fitting editorial State organizations such as the Bay Area person of the Easter Seals Telethon over the in memory of Mr. Nelson and his illustrious ca- Rapid Transit District and the California de- last 2 years, Sister Anne has been the key to reer. I would like to bring Mr. Hinkles' work to partments of transportation and corrections. the fundraising operation, raising over the attention of my colleagues, for it would do Such affiliations result in the specifications that $285,000 to make sure that the rehabilitation each of us well to reflect upon the life of one set the standard for California's construction center will be able to help all those in need. of the most celebrated sports announcers in industry. I congratulate Sister Anne on this well-de- the history of this country. Mr. Hinkles' moving It is pleasure for me to recognize the AGC, served honor and express my sincere grati- editorial reads as follows: and to thank the many dedicated people who tude for all of her good works. Lindsey Nelson was arguably the most fa- have literally helped build California. My best f mous person to ever come out of Maury to the AGC for many years of continued suc- TRIBUTE TO NANDOR MARKOVIC County. cess. Though the Polk daughters and the Ster- ling Marlin fans can rightly claim an equally f lofty position for their beloved sons, perhaps HON. HENRY A. WAXMAN no one has been as enduring to living Maury IN HONOR OF SISTER ANNE OF CALIFORNIA countians—and to all American sports fans— VIRGINIE IN THE HOUSE OF REPRESENTATIVES as the talented Nelson. Known for his colorful sports jackets, Nel- HON. ROSA L. DeLAURO Thursday, June 22, 1995 son began his career in the news media here OF CONNECTICUT Mr. WAXMAN. Mr. Speaker, I ask my col- at the Daily Herald in the early 1930’s, work- leagues to join me in paying tribute to Nandor IN THE HOUSE OF REPRESENTATIVES ing first as a carrier then later as this news- Markovic, who will be honoree of the evening paper’s first sports writer. Thursday, June 22, 1995 He went on to the University of Tennessee of B'nai David-Judea Congregation's 47th An- and a Hall of Fame career as a sportscaster— Ms. DELAURO. Mr. Speaker, I would like to nual Tribute Dinner on June 25, 1995. both on radio and television. He distin- congratulate one of Connecticut's most out- Mr. Markovic survived the Holocaust, the guished himself as ‘‘The Voice’’ of the New standing citizens, Sister Anne Virginie, whose most horrible episode in Jewish history, but York Mets in the 1960’s and 1970’s and the wealth of good works has earned her the not before witnessing the destruction of his Cotton Bowl football game for 26 years. He Easter Seal Goodwill Rehabilitation Center's hometown and suffering the travail of six con- also founded the far-flung UT Radio Net- centration camps, including the notorious work, now one of the largest in the nation. Laurel Award. ‘‘Hello Everybody, I’m Lindsey Nelson,’’ Growing up in Waterbury, CT, Margaret camp at Auschwitz. became one of the most familiar introduc- Mary Grimes joined the Sisters of Charity of Despite his terrible suffering during this dark tions in all of sports broadcasting. Those St. Elizabeth and has ever since embodied the period, Nandor Markovic never abandoned his words became so famous, that Nelson elected loving service characteristic of her order. De- faith in God or his confidence in the ultimate to use them as the title of his autobiography voting her life to the Sisters of Charity and survival of the Jewish people. published in 1985. their mission, Sister Anne has brought many Steeped in the sophisticated Judaic studies His articulate descriptions of the action of the Yeshivot of his native Czechoslovakia, were not only exciting, but downright com- skills acquired during her undergraduate study fortable—kind of like your favorite of business at the College of Saint Elizabeth he became a leader in the struggle for the cre- easychair. His voice was clear and his style and her graduate study in hospital Administra- ation of the State of Israel and served as a gracious, typical of the Southern gentleman tion at Saint Louis University. commander in the war of independence. he truly was. The Sisters of Charity have made good use Nandor Markovic and his wife, Frances, Sadly we have all lost an old friend. of Sister Anne's tremendous talents and her have devoted themselves to numerous worth- Even those who never had the privilege of tireless commitment to serving others. She while activities in Los Angeles and Israel. Mr. meeting Nelson felt like they knew him any- way. Too many of us sat huddled up against tended to the sick as an administrator of two Markovic has served as president or chairman our radios to hear him call a Tennessee foot- hospitals in New Jersey and then strength- of the board of B'nai David-Judea Congrega- ball game or sat in our dads’ laps and ened her order by serving as provincial supe- tion for 15 years and has applied his erudition watched him on Sunday afternoon NLF tele- rior of the Northern Province of the Sisters of in matters of Jewish law to the work of B'nai casts. Charity. We in Connecticut are eternally grate- David-Judea Congregation since 1960. E 1314 CONGRESSIONAL RECORD — Extensions of Remarks June 22, 1995 Mr. Speaker, I ask the Members of the His school years were marked by his aca- can take much of the credit for sustaining and House of Representatives to join me in salut- demic achievements and leadership in law giving direction and vision to this important ing Nandor Markovic, his courage, and the and Latino organizations. American theater. great achievements he has made in his ex- Dennis soon became active in Latino civil f traordinary life. I wish him happiness, good rights issues. He was one of the founders of health, and enduring vigor to lead B'nai David- the largest Latino employee organization in ALWAYS IN MY HEART Judea Congregation and to continue in his the Department of Justice and later, in Califor- role as prominent leader of our community. nia, he worked as regional counsel for Califor- HON. MAURICE D. HINCHEY f nia Rural Legal Assistance, an organization OF NEW YORK which provided legal assistance to migrant IN THE HOUSE OF REPRESENTATIVES SUPPORT FOR AGRICULTURAL workers. EXPORT PROGRAMS In 1982, he was appointed to serve as sen- Thursday, June 22, 1995 ior assistant corporation counsel in the New Mr. HINCHEY. Mr. Speaker, during the Me- HON. HELEN CHENOWETH York City Law Department where he provided morial Day recess, I had the privilege of visit- OF IDAHO litigation supervision on civil rights issues in- ing the Republic of China on Taiwan. I was IN THE HOUSE OF REPRESENTATIVES cluding immigration, gay and lesbian anti- especially pleased that my visit coincided with discrimination, and gender discrimination. President Clinton's decision to grant President Thursday, June 22, 1995 Besides being an excellent attorney, Dennis Lee a visa to visit our country on the occasion Mrs. CHENOWETH. Mr. Speaker, I would has written a number of publications on of his reunion at Carnell University in Ithaca, like to have the following letter from my friends human rights, Hispanic labor and discrimina- NY, in my district. President Lee was clearly at the Idaho Farm Bureau Federation inserted tion issues. very pleased and grateful to have the oppor- into the CONGRESSIONAL RECORD. In 1986, New York City Mayor Edward Koch tunity to return to his alma mater. New York- IDAHO FARM BUREAU FEDERATION, appointed Dennis to serve as executive direc- ers were delighted to see him, and he re- Boise, ID, June 13, 1995. tor of the Commission on Hispanic Concerns. ceived a warm welcome. Re Agricultural export program appropria- In 1988, Manhattan Borough President David His Olin lecture on June 9 conveyed his tions. Denkins appointed him to serve as deputy message and the message of his country ex- Hon. HELEN CHENOWETH, House of Representatives, Longworth House Of- borough president. He later served as chair- ceptionally wellÐa story of hopes, expecta- fice Building, Washington, DC. man of the New York City Commission on tions, and determination and Taiwan's every DEAR CONGRESSMAN CHENOWETH: The Idaho Human Rights. changing status in the global community. I Farm Bureau Federation recognizes the im- Dennis continued fighting for the rights of would like to share it with the House in its en- portance of foreign markets to United Latinos, gays, women, lesbians, immigrants, tirety. States’ agriculture. We support FY 1996 full and other minorities. Presently, he leads the Mr. Speaker, I therefore ask for your per- funding of the following programs at the in- Latino Commission on AIDS. Dennis is tireless mission to print President Lee Teng-hui's Olin dicated levels: Foreign Market Development (FMD)—$33 in his commitment to the enhancement of lecture, ``Always in My Heart,'' in its entirety in million. services for Latino AIDS victims and their fam- the RECORD for the enjoyment of my col- Market Promotion Program (MPP)—$110 ilies. leagues and others interested in Taiwan. million. He is a board member of a number of orga- ALWAYS IN MY HEART Export Enhancement Program (EEP)— nizations, including the New York State Bar It is a great honor for me to be invited to $912.3 million. Association, Puerto Rican Bar Association, deliver the Olin Lecture at my alma mater, Vegetable oilseed products SOAP&COAP— Gay and Lesbian Alliance Against Defamation, Cornell University. It has been a long and $53 million. Persons with AIDS Coalition, and the Latino challenging journey, with many bumps in Dairy products & livestock—$203.1 million. Coalition for a Fair Media. the road, yet my wife and I are indeed very Please enter this letter into the record and happy to return to this beloved campus. express our support of these programs and Mr. Speaker, I ask my colleagues to join me to recognize this outstanding individual who is This trip has allowed both of us to relive funding levels at the mark-up of the FY ’96 our dearest Cornell experiences. The long, agriculture appropriations bill during the being honored today for his human rights ef- exhausting evenings in the libraries, the House Appropriations Subcommittee hearing forts and his dedication to the Latino commu- soothing and reflective hours at church, the on Wednesday, June 14. nity. hurried shuttling between classrooms, the Thank you very much for all you do for f evening strolls, hand in hand—so many Idaho and Idaho agriculture. We’ve heard memories of the past have come to mind, many very positive remarks from our mem- TRIBUTE TO SOMERSET R. filling my heart with joy and gratitude. bers who attended and testified at the recent WATERS III I want to thank you, President Rhodes, for Boise hearing. Thank you again. your hospitality and for your unflagging sup- Sincerely, port of my visit here to my alma mater. V. THOMAS GEARY, HON. ESTEBAN EDWARD TORRES I thank you, my fellow alumni, for your President. OF CALIFORNIA understanding and support as I undertake f IN THE HOUSE OF REPRESENTATIVES this important sentimental journey. Thursday, June 22, 1995 I thank the many, many friends in the TRIBUTE TO DENNIS DELEON United States who have been so supportive of PRESIDENT OF THE LATINO Mr. TORRES. Mr. Speaker, I wish to ex- my visit to your great country again. COMMISSION ON AIDS press the appreciation of this body regarding And I also want to thank the people of this Mr. Somerset R. Waters III, because of his academic community, my professors and ´ tireless support of the Baltimore Theatre classmates, for the deep and lasting influ- HON. JOSE E. SERRANO ence that Cornell University has had on my OF NEW YORK Project over more than a decade, and his life. The support each of you has given IN THE HOUSE OF REPRESENTATIVES championing of the key role that that institution means a great deal to me. has played in the growth and development of Thursday, June 22, 1995 I deem this invitation to attend the re- the International Theatre InstituteÐboth the union at Cornell not only a personal honor, Mr. SERRANO. Mr. Speaker, I rise today to U.S. Centre and the international body. but, more significantly, an honor for the 21 pay tribute to Dennis DeLeon, a human rights The values of the International Theatre Insti- million people in the Republic of China on advocate, AIDS activist, Hispanic community tuteÐa UNESCO-founded institution that en- Taiwan. In fact, this invitation constitutes leader, and, I am proud to say, a friend. He compasses 75 countriesÐpromote the free recognition of their remarkable achieve- will be honored today for his great contribution ments in developing their nation over the exchange of theater artists, build bridges past several decades. And it is the people of to the community by Manhattan Borough across the supposed boundaries of culture, my nation that I most want to talk about on President Ruth W. Messinger at the ``Unity in language, and politics, refute the cynicism of this occasion. Community'' event. our time, and offer, through the clearer eyes of LISTENING TO THE PEOPLE Born in Los Angeles to Mexican-American art, hope for the future. My years at Cornell from 1965 to 1968 made parents, young Dennis started a career of The Baltimore Theatre Project, celebrating an indelible impression on me. This was a community activism, serving as the president its 25th anniversary season, embodies that time of social turbulence in the United of the student body at Occidental College. He sense of hope and international fellowshipÐas States, with the civil rights movement and later graduated from Stanford School of Law. Mr. Waters retires as Theatre Project chair, he the Vietnam War protest. Yet, despite that June 22, 1995 CONGRESSIONAL RECORD — Extensions of Remarks E 1315 turbulence, the American democratic system For many developing nations, the process Today, the institutions of democracy are prevailed. It was also the time I first recog- of moving to a democratic system has been in place in the Republic of China; human nized that full democracy could engender ul- marked by a coup d’etat, or by the kind of rights are respected and protected to a very timately peaceful change, and that lack of ‘‘political decay’’ suggested by Professor high degree. Democracy is thriving in my democracy must be confronted with demo- Samuel P. Huntington. In short, it is not un- country. No speech or act allowed by law cratic methods, and lack of freedom must be usual for such a process of transformation to will be subject to any restriction or inter- confronted by the idea of freedom before it be accompanied by violence and chaos. How- ference. Different and opposing views are would be possible to hasten the day of genu- ever, the case of the Republic of China on heard every day in the news media, including ine democracy and freedom. I returned to my Taiwan is a notable exception. Non-existent harsh criticism of the President. The free- homeland determined to make my contribu- is the vicious cycle of expansive political dom of speech enjoyed by our people is in no tion toward achieving full democracy for our participation, class confrontation, military way different from that enjoyed by people in society. coup and political suppression, which have the United States. Ever since I became president of the Re- occurred in many developing countries. The I believe that the precept of democracy and public of China in 1988, I have sought to as- process of reform in Taiwan is remarkably the benchmark of human rights should never certain just what the people of my country peaceful indeed, and as such is virtually vary anywhere in the world, regardless of want and to be always guided by their wish- unique. In addition to the ‘‘economic mir- race or region. In fact, the Confucian belief es. Ancient China’s Book of History from acle,’’ we have wrought a ‘‘political mir- that only the ruler who provides for the over 2000 years ago, contains the phrase, acle,’’ so to speak. needs of his people is given the mandate to ‘‘Whatever the People desire, the realm must The Taiwan Experience has regional and rule is consistent with the modern concept of follow.’’ My criterion for serving as president international dimensions as well. In 1994, the democracy. This is also the basis for my phi- is that I do it with the people in my heart. indirect trade between Taiwan and mainland losophy of respect for individual free will And it is obvious to me that most of all they China reached US$9.8 billion. Taiwan’s indi- and popular sovereignty. want democracy and development. Democ- rect investment in southern mainland China, Thus, the needs and wishes of my people racy entails respect for individual freedom, made through Hong Kong, amounted to near- have been my guiding light every step of the social justice, and a sense of directly partici- ly US$4 billion, according to estimates from way. I only hope that the leaders in the pating in the destiny of their nation. Eco- various quarters. Taiwan’s trade and invest- mainland are able one day to be similarly nomic development goes beyond attaining ment have also been extended to members of guided, since then our achievements in Tai- prosperity, it also involves equitable dis- the Association of Southeast Asian Nations, wan can most certainly help the process of tribution of wealth. Vietnam, Russia, U.S. and countries in economic liberalization and the cause of de- Today we are entering a new post-Cold War Central America and Africa. mocracy in mainland China. era, where the world is full of many uncer- Although the Republic of China on Taiwan I have repeatedly called on the mainland tainties. Communism is dead or dying, and has been excluded from the United Nations, authorities to end ideological confrontation the peoples of many nations are anxious to it has accelerated the formation of an inter- and to open up a new era of peaceful com- try new methods of governing their societies national network with economic ties as the petition across the Taiwan Straits and reuni- that will better meet the basic needs that key link. Recently, it has even begun to fication. Only by following a ‘‘win-win’’ every human has. There are many pitfalls in launch a project to build Taiwan into an strategy will the best interests of all the this search for a new rationale, and Man Asian-Pacific Regional Operations Center, Chinese people be served. We believe that must strive to make the right choices with aiming at further liberalization and mutual respect will gradually lead to the all the wisdom and diligence he can com- globalization of our economy. peaceful reunification of China under a sys- mand. I never allow myself to ever forget for a Czech President Vaclav Havel said, ‘‘The moment that Taiwan’s achievements have tem of democracy, freedom and equitable salvation of this human world lies nowhere been realized only through the painstaking distribution of wealth. else but in the human heart.’’ In my heart, I effort and immense political wisdom of the To demonstrate our sincerity and goodwill, believe that the Taiwan Experience has people. However, success comes from dif- I have already indicated on other occasions something unique to offer the world in this ficulty, and the fruits of the Taiwan Experi- that I would welcome an opportunity for search for a new direction. This is not to say ence are all the sweeter today from a rec- leaders from the mainland to meet their that our experience can be transplanted en- ognition of the arduousness of the process. counterparts from Taiwan during the occa- sion of some international event, and I would tirely to fit the situation faced by other na- POPULAR SOVEREIGNTY tions, but I believe that, without a doubt, not even rule out the possibility of a meeting We in the Republic of China on Taiwan between Mr. Jiang Zemin and myself. there are certain aspects of this experience have found that peaceful transformation that offer new hope for the new age. must take place gradually, and with careful YEARNING TO PLAY A POSITIVE ROLE THE TAIWAN EXPERIENCE planning. Five years ago, on my inaugura- When a president carefully listens to his By the term Taiwan Experience I mean tion day, I pledged to initiate constitutional people, the hardest things to bear are the what the people of Taiwan have accumulated reform in the shortest possible period of unfulfilled yearnings he hears. Taiwan has in recent years through successful political time. My goal was to provide the Chinese na- peacefully transformed itself into a democ- reform and economic development. This ex- tion with a legal framework that is in accord racy. At the same time, its international perience has already gained widespread rec- with the times, and to establish a com- economic activities have exerted a signifi- ognition by international society and is prehensive model for democracy. These goals cant influence on its relations with nations being taken by many developing nations as a have since been realized with the support of with which it has no diplomatic ties. These model to emulate. Essentially, the Taiwan the people. are no minor accomplishments for any na- Experience constitutes the economic, politi- Our constitutional reform was conducted tion, yet, the Republic of China on Taiwan cal and social transformation of my nation in two stages. First, all the senior par- does not enjoy the diplomatic recognition over the years, a transformation which I be- liamentarians last elected in 1948 were re- that is due from the international commu- lieve has profound implications for the fu- tired. Then, in the second stage, comprehen- nity. This has caused many to underestimate ture development of the Asia-Pacific region sive elections for the National Assembly and the international dimension of the Taiwan and world peace. the Legislature were held in 1991 and 1992 re- Experience. It is worth remembering what we in the spectively. This enabled our representative Frankly, our people are not happy with the Republic of China on Taiwan have had to organs at the central government level to status accorded our nation by the inter- work with in achieving all that we now have: better represent the people. national community. We believe that inter- a land area of only 14,000 square miles Last year, the governor of Taiwan prov- national relations should not be solely seen (slightly less than 1/3 the area of New York ince, and the mayors of Taipei and in terms of formal operations regulated by State) and a population of 21 million. My Kaohsiung, the two largest cities in Taiwan international law and international organi- country’s natural resources are meager and which used to be directly administered by zations. We say so because there also are its population density is high. However, its the central government as special munici- semi-official and unofficial rules that bind international trade totaled US$180 billion in palities, were directly elected by the people the international activities of nations. This 1994 and its per capital income stands at US for the first time. Next spring, the president being so, we submit that a nation’s sub- $12,000. Its foreign exchange reserves now ex- and vice president of the Republic will also stantive contribution to the international ceed US$99 billion, more than those of any be directly elected by the people for the first community has to be appreciated in light of other nation in the world except Japan. time. such non-official activities as well. The Taiwan Experience bases peaceful po- With the completion of constitutional re- During last year’s commencement, Presi- litical change on a foundation of stable and form, we have established a multiparty sys- dent Rhodes brought up the old saying, ‘‘Be continuous economic development. Taiwan, tem and have realized the ideal of popular realistic. Demand the Impossible!’’ Well, under Presidents Chiang Kai-shek and sovereignty. This has led to full respect for over the last four decades, we have been ex- Chiang Ching-kuo, experienced phenomenal individual freedom, ushering in the most free tremely realistic while always trying to look economic growth. Currently, aside from eco- and liberal era in Chinese history. I must re- forward, not backward, and to work, not nomic development, Taiwan has been under- iterate that this remarkable achievement is complain. Accordingly, we have created the going a peaceful political transformation to the result of the concerted efforts of the 21 very fact of our existence and economic pros- full democracy. million people in the Taiwan area. perity. We sincerely hope that all nations E 1316 CONGRESSIONAL RECORD — Extensions of Remarks June 22, 1995 can treat us fairly and reasonably, and not ALWAYS IN MY HEART hard to believe. ``We thought we were going to overlook the significance, value and func- Whatever I have done as president of my win the State title,'' Wolfpack coach Glenn tions we represent. nation, I have done with the people in my McKoy told the Davidson County newspaper. Some say that it is impossible for us to heart. I have thought long and hard about break out of the diplomatic isolation we ``I guess we still have something to work for what my people want, and it is clear that next year. Hey, Lexington has a real fine ball face, but we will do our utmost to ‘‘demand most of all, they desire democracy and devel- the impossible.’’ Ultimately, I know that the opment. These wishes are no different than club. My hat goes off to them.'' world will come to realize that the Republic those of any other people on this planet, and Our hats go off to all of the members of the of China on Taiwan is a friendly and capable represent the direction in which world trends Yellow Jacket basketball squad. Congratula- partner for progress! will certainly continue. tions to head coach Michael Gurley and his If we view the recent economic, political As I have spoken to you today, I have done assistant coaches Robert Hairston and Jim and social developments in the ROC in this so with the people in my heart. I know that Snyder. Congratulations are extended to every light, we have a basis for defining the status what my people would like to say to you now member of the team: Courtney Adams, Chad of my country in the post-Cold War and post can be expressed by this simple message: Communist era. Only in this way can we pro- The people of the Republic of China on Tai- Griffith, Vince Williams, LeMar Hargrave, pose a new direction for the new world order wan are determined to play a peaceful and Rocke Shivers, Jason Zimmerman, Chad as we enter the 21st century. constructive role among the family of na- Walker, Antonio Threadgill, Marcus Hargrave, CLOSE TRADITIONAL TIES tions. Toy Cade, Martin Saddler, Bernard McIntosh, We say to friends in this country and I want to once again express how grateful J.D. Harris, Bert Davis, Chad Hearst, and around the world: I am to be with you. My gratitude extends Todric Jenkins. We are here to stay; not only to Cornell but also to the United We stand ready to help; As with every successful endeavor, the new States as a whole. When we look back in his- And we look forward to sharing the fruits champions could not have achieved what they tory, we can immediately realize how close of our democratic triumph. did without a great supporting cast. A tip of the traditional ties between our two coun- The people are in my heart every moment the cap is in order for administrative assistant tries are. Indeed, our shared ideals for of the day. I know that they would like me coaches Ellen Garner and Heather Gurley, human dignity, and peace with justice have to say to you, that on behalf of the 21 million student assistant coach Paul Lyon, managers united our two peoples in the closest of people of the Republic of China on Taiwan, Rick Conner, Tyrone McCandies, Michael bonds. we are eternally grateful for the support— The United States was extremely helpful spiritual, intellectual and material—that Evans, Jake Rowe, and Josh Lovell and mas- in the early stages of Taiwan’s economic de- each of you has given to sustain our efforts cot Hayden Gurley. Three cheers for velopment. We have never forgotten Ameri- to build a better tomorrow for our nation cheerleading director Ginger Fritts and her ca’s helping hand in our hour of adversity, so and the world. In closing, I say God bless squad of cheerleaders: Antionette Kerr, your nation occupies a special place in our you, God bless Cornell University, God bless Carsha Cravon, Angie Harris, Heather Cox, hearts. Today, as the 6th largest trading the United States of America, and God bless Tory Wilson, Emily Halverson, and Tamika An- partner of the United States, the Republic of the Republic of China. China imports and exports US$42.4 billion derson. Thank you very much. To Principal Ashley Hinson, Athletic Director worth of goods through our bilateral trade. f We also are the number two buyer of US West Lamoureaux, the faculty, staff, students, treasury notes. About thirty-eight thousand CONGRATULATIONS LEXINGTON, families, and friends of Lexington High School, students from Taiwan are studying in the LEDFORD, AND ANDREWS BAS- we offer our congratulations on winning the United States. Students who have returned KETBALL TEAMS North Carolina 2±A high school boys' basket- have made important contributions to our ball championship. society. The other Davidson County high school to The Republic of China’s development has HON. HOWARD COBLE win a State basketball title this year was the been partly influenced by the experiences of OF NORTH CAROLINA Lady Panthers of Ledford High School of its people while studying abroad. I gained IN THE HOUSE OF REPRESENTATIVES substantial know-how in the mechanics of Thomasville, NC. On March 25, the Lady Pan- national growth and development from the Thursday, June 22, 1995 thers traveled to Chapel Hill to play in Car- faculty and students I worked with here in Mr. COBLE. Mr. Speaker, before we bring michael Auditorium and capture the girls' 2±A America at both schools where I studied. I this year's basketball season to a close, I crown with a 65±60 win over Southwest had the chance to see democracy at its best must say a few words about three basketball Guildord, another Sixth District high school. in the United States, and to observe its teams in my congressional district. The Sixth Head Coast John Ralls told the Thomasville shortcomings as well. We in Taiwan believe District of North Carolina was fortunate Times that it was the third straight game of the that we have much to learn from an ad- playoffs that his team used a timely last- vanced democracy such as the United States; enough this year to have three high school however, we also believe we should develop squads capture State championships. minute drive to seal the victory. ``That's hitting our own model. The success of our demo- We are proud that Lexington High School of the nail on the head,'' Ralls told the Thomas- cratic evolution has provided tremendous Davidson County won the boys' 2±A cham- ville newspaper. ``They had poise and hope for other developing nations, and we pionship, Ledford High School also of David- composure under pressure . . . and lots of wish to share our experience with them. Our son County won the girls' 2±A championship, pressure, especially (tonight). They just han- efforts to help others through agricultural and High Point Andrews High School of Guil- dled themselves well and did the things they development have been well received, and we ford County won the boys' 3±A championship. had to do to win.'' That included turning to a are eager to expand our technical assistance On Saturday, March 25, 1995, two Davidson youngster for leadershipÐwhen needed. programs to friendly nations in the develop- ing world. County high schools captured North Carolina Freshman Stacey Hinkle was named MVP for Taiwan has grown from an agricultural ex- basketball titles. The Lexington boys and her 15-point performance in the title contest. porting economy to a leading producer of Ledford girls won their respective State 2±A Congratulations to Coach Ralls and his as- electronics, computers and other industrial championships. Let's begin with the Lexington sistant coaches Joe Davis and Allen Patter- goods. We are ‘‘paving the information high- Yellow Jackets, a team many people did not son. In addition to Hinkle, the freshman MVP, way’’ with disk drives, computer screens, think could win a championship this year. every member of the Lady Panther team can laptop computers and modems. We are poised Lexington finished third in the Carolina Con- equally share this year's championship: Ruth to become a major regional operations cen- ference with a 22±9 record. The Yellow Jack- Armstrong, Laurie Smith, Kelly Thomas, Quinn ter as well as to buy more American prod- ucts and services to develop our infrastruc- ets were playing the title game against the Homesley, Amy Wells, Amanda Reese, Misty ture. 27±1 Whiteville Wolfpack, considered to be Sharp, Ginger Cox, Sara Day, Courtney Pat- We stand ready to enhance the mutually the best 2±A team in the State. Lexington won terson, Marcy Newton, and Tracie New. beneficial relations between our two nations. the title game with a thrilling 69±67 victory Strong support was given to the Lady Pan- It is my sincere hope that this visit will open when center Bernard McIntosh followed his thers throughout the year by manager Sarah up new opportunities for cooperation be- own missed free-throw attempt with a putback Hester, video manager Aaron Kindley, statisti- tween our two countries. basket at the buzzer. McIntosh, who scored cian Zac Herrmann, and scorekeeper Shelly It is for this reason that I want to publicly 28 points and pulled down 12 rebounds in the Barrett. express my appreciation and admiration to President Clinton for his statesman-like de- game was named MVP of the game which This is the second time Coach Ralls has led cision. We are equally grateful to others in was played at the Dean Smith Center in the Lady Panthers to a State title. In 1991, the administration, to the bipartisan leader- Chapel Hill. Ledford High School won the State softball ship in Congress, and to the American peo- The Wolfpack coach told the Lexington Dis- crown. Coach Ralls told the Thomasville ple. patch that the loss to the Yellow Jackets was Times, ``It's kinda neat. I really like it. I mean June 22, 1995 CONGRESSIONAL RECORD — Extensions of Remarks E 1317 whatever sport you're coaching in that's what POSTHUMOUS TRIBUTE TO MR. eloquent, memorable role during the 1980 you're working forÐto try to get your team to DEWEY W. KNIGHT riots in Miami in a manner evoking a calm but win a state championship. So, it's something forceful leadership that comes once in a life- we wanted to do.'' This year's Lady Panthers HON. CARRIE P. MEEK time. He always projected the subtle serenity finished their championship season with a OF FLORIDA of maintaining the grace and insight of an old record of 29±3. Over the past five basketball pro. He was indeed a class act, and his per- seasons, Coach Ralls has guided the Ledford ALCEE L. HASTINGS sonality will cast a giant shadow of void girl hoopsters to a 113±27 record, an 80.7 OF FLORIDA among those he left behind. His presence was winning percentage. IN THE HOUSE OF REPRESENTATIVES at once endlessly fascinating and entirely un- Thursday, June 22, 1995 forgettable. Congratulations to Principal Max Cole, Ath- We have since learned from him that com- letic Director Gary Hinkle, the faculty, staff, Mrs. MEEK of Florida. Mr. Speaker, Mr. mon people convinced of their role in amelio- students, families, and friends of Ledford High HASTINGS of Florida and I rise to pay tribute to rating the lives of their fellow human beings School for joining with Lexington High School Dade County's quintessential leader, the late are in a better position to shift the balance of to make sure that the State's 2±A basketball Dewey W. Knight. His untimely demise last power-sharing and coalition-building much championship trophies reside within the Wednesday, June 21, 1995, is indeed a great more so that those who hold the reins of gov- boundaries of Davidson County. loss for our community, and for all in south ernment. Communality of interests, he advo- Florida. cated, should begin with our doing away with The third high school in the Sixth District to Mr. Dewey was indeed a delicately drawn any negative perceptions we have with one win a basketball championship this year was character of honest leadership whose power another. Any overt or covert suggestion of any T. Wingate Andrews High School of High and influence contributed to the transformation form of subtle superiority or inferiority by the Point, NC. On March 25, the Red Raiders of Dade County into the cultural and racial one ethnic group over another should never dominated Wake Forest-Rolesville High mosaic that it is. Although he lived within the be entertained if we are to bridge the gaps School 71±51 to secure the State boys' 3±A ambience of power, he did not lose his com- that divide us. basketball championship. mon touch with the common folks from Mi- We are touched by his most cogent exhor- Andrews thoroughly dominated a Rolesville ami's Liberty City, teaching them the rudi- tations during the many community meetings team that entered the title contest onÐas its ments of government and personal respon- he spearheaded to resolve the ethnic-racial tensions which were then gripping Miami. He name impliesÐa roll. The Cougars had won sibility. From the sweat of his brow he subsequently would unabashedly state over and over again their previous 20 contests this season and earned the financial wherewithal to live com- that living in harmony with each other does have won six State titles over the years. But fortably in suburbia. But he chose to stay put not rest in resolutions or promises alone. It ul- at the Dean Smith Center in Chapel Hill this in his innercity abode for more than 36 years. timately lies in the hearts and minds of com- year, the Cougars couldn't even score for the Underneath a tree by his home, he held court mon, ordinary folks. first 4 minutes 40 seconds of the contest for the ordinary folks who came and shared He sought to embolden us into believing against the Red Raiders of Andrews. with him their problems and concerns, as well that the problems and the opportunities of di- ``We had a lot of support,'' Andrews Head as their hopes and dreams. Virtually, he be- versity in any given urban community are not Coach Robert Clemons told the Greensboro came the innercity's government-in-action par beyond the reach of those who are willing to News & Record, ``the kids played hard and we excellence. share the fruits of success won for us by won this thing. I feel relieved. I put a lot of Born in Daytona Beach into a home of ac- those who came from generations past. He pressure on myself. Our administration, they complished Black professionals, he learned took a bold stand by moving our community to were very supportive. They didn't put any early on the basics of honest living, from his live together in harmony sensitive to our diver- pressure on me. I did it all myself. And then grandfather who became Florida's first Black sity on one hand, and yet strengthened by the police officer. In the 1930's his lawyer-uncle power that emanates from it on the other. I just put the responsibility on the kids and ``E Pluribus Unum * * * '' From many, we they responded well.'' served in President Franklin Roosevelt's ad- ministration. Another uncle spearheaded the are one. This is the American way, he urged That may be the understatement of the Nation's first Black radio station in Atlanta, us. His enduring legacy to our community is year. I am sure that Coach Clemons will be while an aunt became New York's first Black indeed forever etched in our covenant with the first to say it was a total team effort, but woman judge. one another. We shall miss him so. But we special mention must be made of champion- The years of segregation burdened by the are blessed that his noble presence graced ship MVP David Wall who led all scorers with onerous separate-but-equal doctrine molded our lives. 20 points. Each Red Raider, however, played his character so deeply. He pursued his col- f lege education at Bethune-Cookman College a vital role in the title drive for Andrews. Con- COMMENDING THE MEMBERS OF after which he volunteered to serve in the U.S. gratulations are given to Torrey Bright, Jason LA SIERRA UNIVERSITY Blackwood, Antwan Hilton, Cory Dawkins, Air Force. Having given his share of service to Jimmy Mangum, Marcus Wilson, Cardise the Nation, he sought to get his master's de- HON. KEN CALVERT Reed, Brian Gane, Quincey Dixon, B.J. Rog- gree in social work due to his immense love and caring for children. OF CALIFORNIA ers, Rico Leach, J.J. McQueen, and Steve IN THE HOUSE OF REPRESENTATIVES Myers for bringing home the trophy. It is this compassionate trait that he brought with him when he came to Miami to live for Thursday, June 22, 1995 In addition to Coach Clemons we offer our good. Working through the ranks he suc- Mr. CALVERT. Mr. Speaker, it is with great thanks to assistant coaches Myron Grimes ceeded immensely in every endeavor, until he pleasure that I commend the members of the and Dana Conte and scorekeeper Liz Kimbro was appointed assistant, then deputy county La Sierra University chapter of Students In for their efforts during the run to the top. Con- manager. Subsequently after that, his superi- Free Enterprise [SIFE] for winning the 1995 gratulations to Principal Jerry Hairston, Athletic ors called upon his wisdom and expertise to International Championship at the SIFE Inter- Director Sue Shinn, the faculty, staff, students, serve twice as interim county manager until a national Exposition in Kansas City, MO, May families and friends of T. Wingate Andrews for permanent successor could be named. 19. capturing the State 3±A boys' basketball Although he was offered the top job many The students brought back six giant trophies championship. times, he did not court the pump and glamour and $7,500 for their championship title and for North Carolina is known as a basketball hot- that came with it. By then he was already im- their win in four special competitions: Success bued with the more enduring respect and ca- bed. Thanks to Lexington, Ledford, and An- 200, Halt the Deficit, G.E. Foundation ``Teach- maraderie from his Liberty City neighbors. He drews, those of us who call the Sixth District ing America to Compete,'' and Best In-Depth opted to retire in 1989, relishing to serve from Education. home can truthfully say that we are at the cen- time to time as a consultant to both govern- This year's presentation team consists of ter of the North Carolina basketball universe. ment and business. eight students: Andy Wongworawat, Redlands; While his leadership style charmed the John-Patterson (J±P) Grant, Newbury Park; mighty and the powerful in county politics and Heidi Serena, Long Beach; Maria Lafser, Es- the business elite, he never lost his common- condido; Patria Wise, Calmesa; Tamara Tal- sense approach to government. He played an bot, Redlands; Steve Taggart, Colton; and E 1318 CONGRESSIONAL RECORD — Extensions of Remarks June 22, 1995 Ismael Valdez, Hemet. John Thomas, assist- Jim Holshouser to the North Carolina Banking which means they are essential in keeping ant professor of economics and finance and Commission and later, served on the North American workers and products on the cutting SIFE faculty sponsor, accompanied the team Carolina Board of Transportation. edge of innovation. to Kansas City. Mr. Callahan was a devoted father and f ``The Next Generation'' was the title of La leader in the business community. He was Sierra University's winning presentation, which president and owner of Callahan Building Sup- REFORM OF THE REA ELECTRIC summarizes the 122 projects the team created ply Co., and a former board member of Lum- LOAN PROGRAM this year. Project highlights include the ``Find berman's Merchandising Corp. He contributed a Dollar in the Debt'' giant sandbox in Feb- much of his time to public service as a former HON. RICHARD H. BAKER ruary trip helped the community visualize the president of the Kiwanis Club, a member of OF LOUISIANA size of the national debt, the annual Adopt-a- the Rutherford-Spindale Jaycees and as a IN THE HOUSE OF REPRESENTATIVES Child Christmas Party for area Headstart chil- member of the Rutherfordton County Chamber Thursday, June 22, 1995 dren, ``Touch the World/Tech'' a child reading of Commerce. Mr. BAKER of Louisiana. Mr. Speaker, I rise and mathematics tutoring program at a local His direction helped lead the Rutherfordton to discuss an important issue that has re- elementary school, homeless shelter employ- County Republican Party to new heights. We ceived little attention thus far in the 104th ment weekly seminars, a signature campaign should all admire a person like Jim Callahan Congress: reform of the REA's subsidized to halt the deficit, SIFE collector ``Slam the who believed in the principals of honesty and loan program for electric cooperatives. Deficit'' POGs for elementary schoolchildren, hard work. When thinking of Jim Callahan, The REA has long been the target of loud SIFE-Net cyberspace bulletin board and train- words such as friend, business leader, and criticism by many who believe the Federal ing sessions, ``Rent-a-Brain'' consulting serv- patriot come to mind. His efforts in the com- Government's role in direct, subsidized lending ice for local businesses, SIFE ABC publication munity will be sorely missed as will he. to utilities should be curtailed. The REA has series to provide fundamental information on f changed its name to the Rural Utilities Service important topics to the community such as [RUS], but it continues to provide subsidized drug abuse, interest rates, free trade, social THE ENTERPRISE CAPITAL loans to many healthy, financially stable elec- responsibility, and the national debt, Strive-On FORMATION ACT OF 1995 tric co-ops at a cost of millions of dollars each minority role modeling, and many others. year. Legislation I have introduced today, the Some 500 students from 50 college and uni- HON. ROBERT T. MATSUI Rural Electrification Loan Reform Act, would versity teams in the eight regions competed at OF CALIFORNIA bring reform to this program which needs an the international exposition. Dow Chemical IN THE HOUSE OF REPRESENTATIVES overhaul. CEO and Chairman Frank Popoff was the key- Thursday, June 22, 1995 I believe we should reform the REA electric note speaker. The 150 judges for competition loan program in a manner consistent with the were CEO's from Fortune 500 companies. Mr. MATSUI. Mr. Speaker, I am pleased to free-market principles that motivate our bal- Approximately 75 La Sierra University stu- join my House colleague and fellow member anced budget proposal. The concept driving dents led out in this year's projects, which of the Ways and Means Committee, Con- this reform legislation is simple: If an electric reached some 15,000 schoolchildren and a gressman PHIL ENGLISH, and my Senate col- co-op is able to obtain credit at a reasonable total of about 33,000 community people. Fifty leagues, Senator ORRIN HATCH and Senator rate and terms from private lenders, then that of the projects were new this year, while more JOE LIEBERMAN, in their efforts to promote eco- co-op should not be able to participate in the than 70 were continued from previous years. nomic growth and job creation through capital taxpayer-subsidized REA program. The Fed- The La Sierra University SIFE team swept gains incentives. Senators HATCH and eral Government simply should not be the the western regional competition April 10 in LIEBERMAN are introducing the Capital Forma- lender of first resort for many of these co-ops. San Francisco, winning the Success 2000 tion Act of 1995. Hatch/Lieberman utilizes a Other Federal programs, including Small Busi- Award and the Halt the Deficit Award, along two-tiered approach: broad capital gains relief ness Administration [SBA] and Farmers' Home with the Regional Finalist Award. They came and a second targeted capital gains provision. loans, now use this reasonable credit-else- home with three regional trophies and $3,500 The House has already passed a broad-based where test in an effective manner. Farmers cash from that competition, and a chance to capital gains provision earlier this year. The and small businesses must try to obtain credit compete at the international exposition. Matsui/English legislation is designed to be from banks and other private lenders before The students of the La Sierra University complimentary with the Hatch/Lieberman bill turning to Federal loan programs. We should SIFE team have made their community and and with broad based capital gains passed by enact this reform to bring the REA program in their Congressman proud. It is truly an honor the House. Accordingly, it includes only the line with other Federal lending programs. to represent such fine individuals and I give targeted capital gains provision. Instituting a credit-elsewhere test is a re- them the highest compliments. They deserve I have worked for many years to enact leg- sponsible way to reform the program in order it. islation which provides capital incentives for to push the healthier electric co-ops toward f high-risk, high-growth firms. In 1993, I was private lenders, while preserving a scaled- able to work with Senator BUMPERS to enact back REA subsidized loan program for the IN MEMORY OF JAMES ARTHUR the Enterprise Capital Formation Act of 1993. struggling co-ops in the most distressed parts CALLAHAN Matsui/English is bipartisan legislation built on of rural America. My legislation will not termi- the 1993 legislation. It will be called the Enter- nate this REA program. Rather, it would con- HON. CHARLES H. TAYLOR prise Formation Act of 1995. Like the Hatch/ centrate the loan program for only those co- OF NORTH CAROLINA Lieberman bill, the legislation will provide a ops that can show a true need for assistance. IN THE HOUSE OF REPRESENTATIVES 75-percent exclusion for capital gains resulting Many do not realize that most electric co-ops from direct investments in the stock of a small now must obtain 30 percent of their financing Thursday, June 22, 1995 companyÐdefined as $100 million or less in from private sources, while the other 70 per- Mr. TAYLOR of North Carolina. Mr. Speak- aggregate capitalizationÐif the stock is held cent comes from the REA loan program at a er, I rise today to honor a very special person for 5 years or more. subsidized interest rate. Congress should re- from western North Carolina, James Arthur Biotech and high technology companies are quire co-ops to try to obtain 100 percent of Callahan. Jim Callahan passed away on June particularly dependent upon direct equity in- their credit from a source other than the Fed- 2 at the age of 72. With great sadness, I offer vestments to fund research and to grow. A tar- eral Government, and retain the REA program my condolences to his wife, Janie Callahan geted capital gains incentive is crucial for en- for those co-ops that cannot access private and his children, Chris Callahan, and Susan couraging investors, including venture capital capital. I certainly recognize the continuing McGowan. He was a native of Rutherfordton, investors, to purchase the stock of these com- need for subsidized credit assistance in some NC and a life long member of the First United panies, thus putting their capital at risk with a parts of rural AmericaÐincluding some parts Methodist Church. long-term speculative investment. These small of rural Louisiana. And if this legislation is en- He was active for many years in the Repub- venture backed companies create high-skilled acted, these areas would continue to receive lican Party, serving as county chairman and jobs, grow to create more jobsÐat an average loan assistance from the REA program. But was also district chairman of the Republican rate of 88 percent annuallyÐand are aggres- Congress must now make many difficult Party for the 10th Congressional District. Jim sive exporters. According to one survey, their choices if we want to reach a balanced budget served the State of North Carolina in many dif- export sales grew by 171 percent annually. Fi- by 2002. I believe these are Federal dollars ferent capacities, he was appointed by Gov. nally, these companies are R&D intensive which could be better spent. June 22, 1995 CONGRESSIONAL RECORD — Extensions of Remarks E 1319 As a longtime member of the House Bank- one learns better than to ask ``so what is your have their own potential for preventing the cor- ing Committee and the current chairman of the next project,'' especially when one under- ruption of Federal elections themselves.'' 424 Subcommittee on Capital Markets, I have an stands that his churning mind is 50 percent in- U.S. 264, (1976). interest in encouraging the use of private novation, 50 percent determination, and 50 The amendment I propose contains 13 sources of credit wherever possible. I believe percent divine intervention. It just isn't fair for words: ``The Congress shall have authority to there is a larger, more active role private lend- anyone to deal with him. limit expenditures in elections for Federal of- ers can play in addressing the credit needs of Mr. Speaker, Father Cunningham is devoted fice.'' While brief, the weight of these words is electric co-ops. I ask the House Agriculture to his church, devoted to his cause, and de- mighty. This amendment, possibly combined Committee to hold hearings to explore these voted to people. He is truly a model of what with other reforms, would allow the Federal reforms of the electric loan program. is best in our Nation. If each State had just election process to be returned to the people, f one Bill Cunningham. I shudder to think what and permit those who seek and hold elective we could accomplish. I urge all of our col- office to place their energies into solving pub- FORTY YEARS TO CARE, MOST leagues to join me in wishing him the happiest lic policy problems rather than political prob- WITH A FOCUS OF HOPE and most blessed 40 anniversary of his ordi- lems. nation to the priesthood. I hope that any commission designated to HON. JAMES A. BARCIA f make a recommendation to Congress on cam- OF MICHIGAN paign finance reform consider the virtue of IN THE HOUSE OF REPRESENTATIVES A CONSTITUTIONAL AMENDMENT turning off the constant flow of cash into Fed- TO LIMIT CAMPAIGN EXPENDI- Thursday, June 22, 1995 eral campaigns through a Constitutional TURES amendment to limit campaign expenditures. Mr. BARCIA. Mr. Speaker, what do you do f when you have someone who keeps coming HON. JOHN D. DINGELL to you saying that there is a problem, and OF MICHIGAN INTRODUCTION OF GILPIN COUNTY something needs to be done about it? You let IN THE HOUSE OF REPRESENTATIVES EXCHANGE LEGISLATION them come up with the solution. That is ex- actly what happened nearly 27 years ago Thursday, June 22, 1995 HON. DAVID E. SKAGGS when the Bishop of the archdiocese of Detroit Mr. DINGELL. Mr. Speaker, in a recent OF COLORADO told Father William T. Cunningham, Jr., that meeting between you and the President, it IN THE HOUSE OF REPRESENTATIVES he had his permission to stop teaching as an was agreed that you would support the cre- English professor at Sacred Heart Seminary, ation of a blue-ribbon panel to recommend Thursday, June 22, 1995 become a pastor of Madonna Catholic Church, long-overdue reforms to our campaign finance Mr. SKAGGS. Mr. Speaker, I am joining my and the full-time director of Focus: HOPE, an system. colleague from Colorado, Mr. MCINNIS, to in- organization he cofounded. In this fashion was It has been almost two decades since some troduce a bill to facilitate acquisition by the born a wonderful organization many of us of the reforms enacted by Congress in the United States of more than 8,700 acres of know as Focus: HOPE, and the beginning of Federal Election and Campaign Act of 1971 lands elsewhere in Colorado that are impor- a relationship for millions of Michiganders who [FECA] were overturned in the landmark Su- tant for recreational and environmental pur- have come to know and love Father William preme Court case Buckley versus Valeo. The poses, in exchange for about 300 acres of Cunningham, who this weekend celebrates his Court ruled that while the Federal Government Federal lands near the town of Black Hawk, in 40th anniversary as a Roman Catholic priest, has an overriding interest in limiting campaign Gilpin County. The bill is similar to one I intro- with masses at his home parish of our Lady of contributions to candidates, it has no compel- duced in the last Congress, on which action the Madonna. ling reason to limit expenditures under any was not completed before adjournment. I am privileged to call attention to the ac- First Amendment test of free speech and ex- Under the exchange, the Gilpin County complishments of Father Cunningham be- pression. The Court concluded that, unlike lim- lands would be transferred to Lake Gulch, Inc. cause he originally comes from Ruth and its on contributions, spending caps serve no There are 133 separate parcels, ranging in Ubly, in the thumb of Michigan in my congres- legitimate purpose in guarding against corrup- size from 38 acres to 0.01 acre, and 90 of sional district. He comes back frequently and tion of the electoral process. them are less than an acre. This part of Colo- is well-known to many of my constituents. He However, several years ago a bipartisan rado was originally acquired by the United has been a parish priest, a teacher, and a commission, the Committee on the Constitu- States from France through the Louisiana Pur- leader. He has been a friend and helper to tional System, concluded that one of the chase. After the discovery of gold in Gilpin many, and a bane to others who failed to greatest threats to our political system is the County, most of the lands in question were share his belief that people need a helping rapidly escalating cost of campaigns and the claimed under the mining laws and thus hand out of poverty. He is caring. He is iras- growing dependence of incumbents and can- passed into private ownership. The 133 par- cible. He is tender. He is tenacious. He is didates on money from donors who might ex- cels the bill would earmark for transfer are left- unique. pect a favorable vote in exchange for a con- over fragments. Father Cunningham has helped spearhead tribution. Moreover, the Commission found The Gilpin County lands are essentially un- efforts to revitilze portions of Detroit that had that gridlock could take hold by leaving office manageable, and have been identified as suit- been ravaged by riots, and more importantly holders open to multiply-conflicted opponents, able for disposal by the Bureau of Land Man- to reinvigorate the people who had to live with all of whom may believe their contributions agement [BLM]. However, they can be con- the riots themselves, or with the aftereffects of should engender a legislator's support. Such solidated with other lands already held by the riots. He helped push for food programs activities frustrate all participants in the system Lake Gulch. Thus, they do have some value for women, infants, and children. He helped and encourage the promulgation of unsound for Lake Gulch, but because of their frag- push for food assistance to the needy elderly. public policy. mented nature the United States cannot read- He worked tirelessly for the creation of a ma- The Committee on the Constitutional Sys- ily realize that value through normal BLM dis- chinists training institute that has grown to a tem concluded that there was only one effec- posal procedures because of the high costs of world-class facility, winning quality awards, tive way to fix the problem, through an amend- surveys and other necessary administrative and helping people get well-paying jobs have ment to the United States Constitution. There expenses. Enactment of the bill will enable the a future. He has succeeded in using food as is no doubt that concerns about limiting the United States to realize this value, through the the first step toward independence, and many quantity of speech will be vigorously debated. acquisition of lands with values, including po- of us have heard him say time and time again They should be, since no one should take tential for recreational uses, which give them that his fondest hope is that one day he can lightly any proposal to amend that sacred doc- priority status for acquisition by Federal land- close the food program and throw away the ument. However, limits on some kinds of management agencies. key because everyone has all the food they speech, such as debate on the floor of this Under the bill, the Gilpin County lands need. chamber, are well established as necessary to would be transferred to Lake Gulch if that cor- Over the years, people never cease to be orderly deliberation. The underlying logic of poration, within 90 days after enactment, of- amazed by his seemingly inexhaustible en- time limits on debate is the realization that un- fers to transfer the specified lands to the Unit- ergy. They are warmed by his bright smile, limited speech inhibits our ability to govern. ed States. Lake Gulch would be required to sometimes beguiled and other times delighted In his dissenting opinion to Buckley versus hold the United States harmless for any liabil- by the twinkle in his eye. After a period of time Valeo, Justice White wrote, ``Expenditure limits ity related to use of the Gilpin County lands E 1320 CONGRESSIONAL RECORD — Extensions of Remarks June 22, 1995 after their transfer, and future uses of those the northwestern California highway system, Urbaszewski has visited numerous schools lands could not include gaming. The bill also running approximately 300 miles north and and shopping centers exhibiting his creative protects the interests of local governments in south, and 70 to 80 miles from east to west, talents and stimulating the minds of his audi- the lands, including an easement for a county including a portion of historic Highway 101. In ences. His storefront and museum exhibits are road. 1964, he was able to expedite the recovery of instant show stoppers and crowd pleasers. The lands that the United States would re- the north coast's highway system from a Grandpa Moses clearly demonstrates the ceive under the exchange include about 40 record winter storm. creative powers of the mind in a very enter- acres within Rocky Mountain National ParkÐ Frank P. Belotti served as a member of the taining and practical manner. known as the Circle C Church Camp tractÐ California Legislature from 1950 to 1972. He that has been a long-time acquisition priority was an effective advocate of preserving the f for the National Park Service; nearly 4,000 unique scenic beauty of the redwood groves CONGRATULATIONS DELPHI CHAS- acres in Conejos CountyÐknown as the Quin- and was instrumental in securing the legisla- SIS SYSTEMS SAGINAW—LIGHT- lan Ranches parcelÐbordering on the scenic tion that made possible the freeway bypass of WEIGHT BRAKE CORNER CAP- La Jara Canyon, that is intermingled with Fed- the groves and the preservation of the existing ITAL OF THE WORLD eral lands managed by the BLM and the For- State highway designated as the ``Avenue of est Service and that has recreational values the Giants.'' as well as elk winter range and other wildlife It is a fitting tribute to each of these men HON. JAMES A. BARCIA habitat; and about 4,700 acresÐknown as the that portions of the highway that meant so OF MICHIGAN Bonham RanchÐthat is intermingled with much to them is being named in their honor. BLM-managed lands along Cucharas Canyon I offer my congratulations to their families, in- HON. DAVE CAMP in Huerfano County and whose acquisition will cluding Mrs. Sam ``Dordy'' Helwer of west OF MICHIGAN enable BLM to protect more than 5 miles of Sacramento, and Mrs. Delphine Belotti of Eu- the scenic canyon, with its important wildlife reka. IN THE HOUSE OF REPRESENTATIVES habitatÐincluding raptor nesting areasÐcul- f Thursday, June 22, 1995 tural resources, and recreational uses. In addition, if the Secretary of the Interior PERSONAL EXPLANATION Mr. BARCIA. Mr. Speaker, many of us have should determine that the value of the Gilpin believed for years that the best cars are made County lands is greater than the value of the HON. EARL POMEROY in the United States, and that the best con- lands transferred to the United States, Lake OF NORTH DAKOTA tinue to be build here today. I rise today with Gulch will be required to pay the difference. IN THE HOUSE OF REPRESENTATIVES my colleague, Representative DAVE CAMP, to Any such payment would be used to acquire honor these world-class workers who are cele- Thursday, June 22, 1995 from willing sellers land or water rights to aug- brating 25 years of manufacturing automotive ment wildlife habitat in the BLM-managed Mr. POMEROY. Mr. Speaker, on rollcall brake components and systems at Delphi Blanca wetlands near Alamosa, an area with number 216, I was unavoidably detained at Chassis SystemsÐSaginaw Operations. crucial winter habitat for bald eagles and a the Base Closure and Realignment Commis- The 1,400 workers and management of this very productive area for ducks and geese. sion [BRAC] meeting. The Commission mem- outstanding facility will celebrate this 25th an- Mr. Speaker, this bill is good for economic bers were voting on matters directly impacting niversary with a Family Day, this Monday, development in Gilpin County and good for my State of North Dakota. Had I been present, June 26. They will celebrate the production of protecting the priceless environment of Colo- I would have voted ``aye'' on rollcall number the 175 millionth quality brake corner at this rado. I believe it is completely noncontrover- 216. location. Plant manager Pat Straney and UAW sial. It has the support of Governor Romer, the f Local 467 shop chairman Kent Wurtzel can be Colorado Division of Wildlife, and affected proud of their achievement. They have worked local governments including Black Hawk, GRANDPA MOSES to produce the best product that they possibly Central City, and Gilpin County. It is also sup- can, while recognizing that they must con- ported by a broad coalition of environmental HON. HENRY J. HYDE stantly enhance the skills of their workers to and conservation organizations, including the OF ILLINOIS keep their competitive edge. The plant quality Colorado Environmental Coalition, the Colo- IN THE HOUSE OF REPRESENTATIVES council composed of both labor and manage- rado Wildlife Federation, the National Parks Thursday, June 22, 1995 ment has implemented quality network action and Conservation Association, the National strategies that have improved the product for Audubon Society, the National Wildlife Federa- Mr. HYDE. Mr. Speaker, ingenuity and the benefit of consumers. imagination are cherished commodities in an tion, the Wilderness Society, and the Rocky Car and truck buyers have been positively era which demands that we do more with less. Mountain chapter of the Sierra Club. I intend impacted by this facility every time they push Our continued prosperity demands that we to work hard for its enactment into law during their brake pedal. The consistently high quality challenge our minds, see beyond the obvious, this session of Congress. of the components and the simplification of the and extend our vision. It is our intellect that f brake mechanism bring people throughout the sets us apart. SAM HELWER AND FRANK P. Mr. John Urbaszewski of Oak Park, IL, pro- country to safe stops millions of times each BELOTTI MEMORIAL FREEWAYS vides a very practical example of the creativity day. of the mind and the power of imagination. Mr. CAMP. I fully concur with the remarks of HON. FRANK RIGGS A retired, State-government employee, my colleague. The investment of over $90 mil- keenly intent on staying active and keeping his lion to bring in new brake manufacturing tech- OF CALIFORNIA nology will set world class manufacturing IN THE HOUSE OF REPRESENTATIVES mind sharp, Urbaszewski, without benefit of a single art lesson, has become a very popular, benchmarks for future General Motors prod- Thursday, June 22, 1995 local folk artist, affectionately referred to as ucts. Supported by the city of Saginaw and Mr. RIGGS. Mr. Speaker, this month, two ``Grandpa Moses.'' the State of Michigan, this upgrade secures portions of U.S. Highway 101 in California's What most of us identify as abandoned the future of this outstanding facility in the First Congressional District will be dedicated in soda bottles, plastic coffee creamers, old but- Saginaw Valley. honor of noted CaliforniansÐSam Helwer and tons, film packs, cereal boxes, cocktail stirrers, Mr. Speaker, our workers and our busi- Frank P. Belotti. and other such ``trash,'' Urbaszewski sees as nesses are world leaders, and can compete Sam Helwer was born in Russell, KS, on the basic building blocks for his versions of with anyone in the world in a fair and open August 23, 1913. He served as district engi- Frank Lloyd Wright's Mile High Center sky- market. They have succeeded before, are suc- neer for the State of California, Department of scraper, the Taj Mahal, Rome's Piazza di ceeding now, and will continue into the future. Transportation, district 1, from 1957 to 1967. Spagna, Brasilia's baroque opera house, and Congressman BARCIA and I urge all of our col- Beginning his career in 1936, he eventually Disney's castles. His creations, all constructed leagues to join us in wishing Delphi Chassis served with five department of transportation from rubbish, also include birdhouses, res- Systems Saginaw OperationsÐthe Lightweight districts. He developed a particular expertise taurants, office buildings and cathedrals. Brake Corner Capital of the WorldÐa very in freeway interchange design. As district 1 Packing many of his art works into the happy 25th anniversary, and best wishes for a engineer, he was responsible for all units of Grandpa Moses Mobile Traveling Museum, most prosperous future. June 22, 1995 CONGRESSIONAL RECORD — Extensions of Remarks E 1321 TRIBUTE TO THE 125TH ANNIVER- WOMEN IN MILITARY SERVICE morphine and meperidine which resulted in SARY OF THE PHILADELPHIA the death of a child. A parallel event proved CHINATOWN HON. BARBARA B. KENNELLY fatal when a physician confused the names of OF CONNECTICUT painkillers. Finally, confusion over like drug HON. THOMAS M. FOGLIETTA IN THE HOUSE OF REPRESENTATIVES names led to a mistaken and ultimately fatal dosage of a medication for a bone-marrow- OF PENNSYLVANIA Thursday, June 22, 1995 IN THE HOUSE OF REPRESENTATIVES transplant patient. This drug was involved in a Mrs. KENNELLY. Mr. Speaker, today, our comparable case when, again the name of the Thursday, June 22, 1995 country honors U.S. servicewomen at a drug was confused and the patient was Mr. FOGLIETTA. Mr. Speaker, I rise to com- groundbreaking ceremony for the Women in overmedicated. These events show a pattern memorate the 125th Anniversary of Philadel- Military Service for America Memorial at Ar- of drug therapy deaths that could have been phia's magnificent Chinatown. lington Cemetery. avoided and prevented had they been mon- In 1870, a small laundry was established on When this memorial is completed, it will itored and had medical workers been made Race Street, between 9th and 10th. From that contain the names of all U.S. servicewomen, more aware of the potential for mistakes. single, small business a bustling community past and present, along with a photo and biog- In October, 1993, the Pittsburgh Post-Ga- grew. In 1995, the Chinese American commu- raphy. They will be women who served in zette published a series of articles that de- nity is proudly celebrating the 125th anniver- peacetime and war, women who still serve this tailed medication errors. Reporter Steve sary of Chinatown with events throughout the country as veterans and those who gave their Tweedt's series contained some disturbing year. Chinatown has developed into one of the lives. statistics in this area. He reported that a Pitts- most significant contributors to the Social, eco- The list will include Connecticut women like burgh-Post Gazette study of 250 hospital nomic, and cultural vitality of Philadelphia. In- Wanda Charlinsky who is president of her pharmacists across the country estimated that deed, Chinatown is the city's premier market- local WAVES unit; Viola Bernstein, active in there were 16,000 medication errors in their place for Chinese food and oriental products, the Jewish War Veterans; Linda Schwartz, a institutions in 1992; 106 of them caused pa- but it is so much more. It is a meeting place member of the National Board of Vietnam Vet- tient deaths. for friends and relatives. It is a home and erans of America, and Cindy Beaudoin who Presently, there are a variety of reporting source of comfort for newly arrived immi- gave her life during the Persian Gulf war. systems. Only two States require reporting; grants. Chinatown is where traditional culture This memorial will be a reminder to the Na- New York has a mandatory program for hos- is preserved and ethnic identify perpetuated. tion that our liberty and freedom were secured pitals and North Carolina has a required re- The central event of Chinatown's 125th Anni- with the efforts of more than 2 million women porting system for pharmacies. However, noth- versary will be a parade and dedication cere- who dedicated themselves to our country and ing obliges these States to share the informa- mony at 2:00 p.m. on Sunday, June 25th. The our ideals. tion they collect with other States. starting and ending point of the parade and It is also a symbol of the respect of a grate- Nationally, there are two primary voluntary the location of the ceremony will be where ful country. reporting systems that track errors and deaths Chinatown startedÐRace Street between 9th f that result from drug therapy. The U.S. Phar- and 10th. Other celebration events include an macopeia [USP], working with the Institute for art exhibit by Asian American artists; a benefit SAFE MEDICATIONS ACT OF 1995 Safe Medication Practices, has received over recital; and an ``Honor The Elders Day.'' 1,100 reports since it was established in 1991. Chinatown's rich, historical roots and ethnic HON. WILLIAM J. COYNE And, it is estimated that the voluntary system diversity have contributed greatly to the City of OF PENNSYLVANIA operated by the Food and Drug Administration Brotherly Love. I am proud of the contributions IN THE HOUSE OF REPRESENTATIVES [FDA], MedWatch, collects information on only of the Philadelphia Chinatown and I congratu- Thursday, June 22, 1995 1 percent of the errors that occur. Since these late Chinatown on its 125th Anniversary. reports are voluntary, however, it is unclear f Mr. COYNE. Mr. Speaker, I rise today on what the actual error and death rate is what behalf of myself and my colleagues Rep- their tracking represents. TENTH ANNUAL FILM FESTIVAL resentatives PETE STARK and JOHN LEWIS to At the Ways and Means Health Subcommit- OF PARIS reintroduce the Safe Medications Act. This bill tee hearing on this issue last September, improves public health and safety by creating David Work, the executive director of the HON. KEN BENTSEN a clear and uniform reporting system for North Carolina Board of Pharmacy, testified OF TEXAS deaths that occur while prescribing, admin- that ``about 10,000 deaths occur nationwide IN THE HOUSE OF REPRESENTATIVES istering, or dispensing drugs. Needless trage- from pharmaceuticals each year.'' Joshua dies would be avoided by its enactment. Perper, M.D., chief medical examiner, Browder Thursday, June 22, 1995 Billions of prescriptions are written, dis- County, FL, cited in his testimony a study pub- Mr. BENTSEN. Mr. Speaker, today I rise to pensed, or administered in hospitals, phar- lished in the New England Journal of Medicine bring the attention of the House to an ex- macies, and other health care facilities across in 1991 that charted an annual mortality rate tremely special constituent in my district, Ms. the United States every year. Yet, if something of 503 per 100,000 hospital discharges due to Julie L. Harms. Ms. Harms, a student at Bel- goes wrong during drug therapy there is no re- drug errors. laire High School, has recently added another quirement for facilities to report adverse inci- These trends can and must be changed. major accomplishment to an already impres- dents. As a result, the public could be vulner- We must have a greater understanding of sive list. Ms. Harms has been selected to rep- able to recurring drug-related mishaps and fa- these incidents and take precautions to see resent the United States as a member of the talities that are preventable. that they are not repeated. The Safe Medica- Jury Panel at the Tenth Annual Film Festival Occasionally, a health care professional tions Act of 1995, which I am introducing of Paris. The selection process, which is co- misreads a prescription, administers the wrong today, provides a solution to this problem and ordinated by the U.S. Information Agency, is a dosage of a drug, or dispenses medication in- would significantly improve the public health. nationwide competition that picks only 2 can- correctly. These errors will sometimes have lit- The Safe Medications Act creates a national didates, one male and one female. tle or no consequence. Other times, they may data bank for information on deaths that result Young men and women from 15 countries produce fatal results. When an individual dies from the prescribing, dispensing, or admin- will be taking part in the festival as jurors and in these cases, there is no place for the practi- istering of drugs. This data bank would be judge various films from all over the world. tioner to report the death. Ultimately, the same maintained by the USP for the Secretary of while in Paris, the film jurors will meet with po- mistake can be made a number of times. Re- Health and Human Services. litical and film industry leaders. The Tenth An- peated errors lead to unacceptable risks to pa- Within 10 working days after the discovery nual Film Festival will also provide these out- tient safety and public health. of a death due to the prescribing, dispensing, standing men and women the opportunity to Let me sketch how patients and consumers and administering of drugs, the health care fa- view many of the outstanding historical and are susceptible to multiple errors. A young boy cility in which the error occurred would be re- cultural landmarks in Paris. in New York died when he was administered quired to report the incident to the U.S. Phar- Mr. Speaker, I want to recognize this excep- the wrong dosage of a sedative. A similar inci- macopeia. tional young woman and her distinguished col- dent happened with the same drug to a 4- The Secretary will analyze these reports leagues for this wonderful accomplishment. year-old girl in Texas. In another instance, a and work with USP and the appropriate health Thank you. community pharmacist confused the names of care provider associations so that they can E 1322 CONGRESSIONAL RECORD — Extensions of Remarks June 22, 1995 notify and alert their constituencies of potential Temple Israel Brotherhood Award, the Bishop club donate a wheelchair to the UCR Health problems. Donnelly Alumni Award, the Jefferson Award, Center. The identity of the facilities that report the UCS Executive of the Year Award, the Ralph Hill, President in 1972±73 kept up the deaths would remain confidential. Jessie Slaton Award of the Detroit Association good work from prior years and added to it by Finally, this bill would not supersede any of Black Organizations, the National Gov- hosting the United Fund Kickoff luncheon. This voluntary reporting systems or State systems ernor's Association Award, twice, the 1987 was significant since many of our members in place. Detroit News Michiganian of the Year Award, were key contributors to the United Fund. It is clear that a central reporting system is the Salvation Army's William Booth Award, the In 1973±74 Rotary was involved in many long overdue and needed. The medical com- Marquette University Alumni Award, and the events. Irv Hall led the club this year. Some munity must develop a greater awareness and University of Michigan 1993 Business Leader- different things Rotary became involved in in- understanding of fatal drug reactions and must ship Award and honorary membership in the cluded sending scholarships to Cuautia, Mex- ensure that they are not repeated. The fun- Society of Manufacturing Engineers. ico, which was a sister city of Riverside. Ro- damental goals and benefits of the Safe Medi- Father Cunningham has dedicated his life to tary also contributed to the Ralph Johnson cations Act are indisputable. I urge my col- serving others. After 40 years in the priest- Memorial at Twin Pines Ranch. The old YMCA leagues to support this important health care hood and more than 26 at the helm of Focus: building, known as the Gheel House, had its measure. HOPE, Father Cunningham has touched the interior painted by Rotarians. The club also f lives of thousands. In this day and age, with enjoyed itself through a trip to the Queen our city suffering from decades of neglect, it is Mary. HONORING THE 40TH ANNIVER- important to recognize the accomplishments of In 1974±75 Jim Davidson, our president, SARY OF THE ORDINATION OF those who have dedicated themselves to im- continued work at Twin Pines Ranch through FATHER CUNNINGHAM INTO THE proving the lives of those less fortunate. So I the club's donation for the ranch's swimming PRIESTHOOD hope that you will all join me in congratulating pool. We also celebrated a joint meeting with Father Cunningham for his years of hard work the Soroptomists, a women's organization dedicated to community service. and perseverance. Detroit is a better place to HON. JOHN CONYERS, JR. The Mission Inn had been closed for some OF MICHIGAN live because of Father Cunningham's hard time but in 1975±76, Herman Reed's year as IN THE HOUSE OF REPRESENTATIVES work and dedication to making Detroit president, we moved back to the Mission Inn. Thursday, June 22, 1995 healthier, stronger, friendlier and more pros- Apparently, it was a welcomed return since perous. Father Cunningham is a true hero. the club had been having problems with the Mr. CONYERS. Mr. Speaker, I rise today to f celebrate the 40th anniversary of the ordina- different establishments in which it had been tion of Father William T. Cunningham into the OUTSTANDING VOLUNTEERISM meeting. During this 1975±76 year many service priesthood, which he will observe this Sunday, FROM RIVERSIDE ROTARY CLUB June 25, at the Catholic Church of the Ma- projects were accomplished. Rotary contrib- donna, in Detroit, MI. Father Cunningham has uted carpeting and linoleum to the Riverside HON. KEN CALVERT County Association for Crippled Children. We served as pastor there since 1969. OF CALIFORNIA Father Cunningham is a life-long Detroiter also contributed significantly to the Special IN THE HOUSE OF REPRESENTATIVES and has committed his life to social and eco- Olympics. As usual, we celebrated our special meetings for our significant others as well as nomic justice in Detroit. In 1968, following the Thursday, June 22, 1995 our continued sponsorship of the ROTC Detroit riots, Father Cunningham founded Mr. CALVERT. Mr. Speaker, one of the awards at Poly High School. Focus: HOPE, a civil and human rights organi- things that makes America truly great is our In 1976±77 Bill Williams was our president zation with the goal of resolving the effects of spirit of volunteerismÐthe willingness of citi- and he led the club in starting the ambitious discrimination and injustice and to build inte- zens from all backgrounds to give of their time project of repairing and remodeling the kitchen gration in our riot-torn community. Over the and their efforts to make the community better portion of the Carriage House which is located years, Focus: HOPE grew to develop the in which they live and work. One organization in the Heritage House property. This required Food Prescription Program, which distributes that has been a shining example of this is the many Rotarians to roll up their sleeves and do USDA commodities to 52,000 low-income Riverside Rotary Club. During its 75-year his- some worthwhile manual labor. The results, mothers and children each month, and devel- tory, members have worked to make Riverside which were realized some years later, were oped the Food for Seniors Program, which a better place for all its residents. outstanding and very much appreciated by the provides a monthly food supplement to 34,000 In its recent history, Sherm Babcock was community. elderly poor in the Detroit area. our Rotary Club president for the 1970±71 Frank Lindeburg, our president for 1977±78 Under Father Cunningham's leadership, year. Sherm started out by going to the inter- was active in continuing the Carriage House Focus: HOPE expanded its scope in the national convention in Atlanta, GA. He also led project. We also organized an auction which 1980's to include manufacturing training. a large delegation of Rotarians to the district was tied into the party for a club fundraiser. Today three manufacturing technology training assembly the following month. Being the UCR athletic director, he organized programs function for minority youth and oth- A significant administrative charge took a baseball game against the Riverside ers. The latest, and most advanced, is the place with the new position of sergeant at Kiwanians. He was also instrumental in de- Center for Advanced Technologies which arms. Frank Lindeburg, an entertaining char- signing a program for the fire department's opened 2 years ago. This national demonstra- acter, was the fine master and made the emergency program. The club's budget tion project offers a 6-year curriculum which change a success. To this day the position of seemed to be in good shape because Frank combines structured work experience with ap- sergeant at arms is a coveted position in our led the club to invest its surplus funds. And, of plied engineering study conducted by a con- club. course, the food service at the Mission Inn sortium of Michigan universities. Graduates Sports were a big transition in Rotary in came under some criticism. Some things will be engineer/technicians; able to build, op- Sherm's year. Some of the activities were: the never change. erate, maintain, repair, and modify advanced club sponsored a team in the UCR baseball In 1978±79, San Landis was club president manufacturing equipment at world-competitive tournament; the club fielded a team in the and kept the club operating smoothly. The levels. service club bowling league; and a number of work at the Carriage House was still going on Father Cunningham has served on a num- golf tournaments were conducted. and the usual special meetings with our wives ber of public service boards including the The scholarship fund that had been initiated and others brought enjoyment to all. State of Michigan's Task Force on Vandalism the prior year by past president John Cote Ron Drayson, our president in 1979±80, and Violence in the Schools, the State and was enhanced considerably. Today, this schol- kept the Carriage House project going. He city Task Forces on Hunger and Malnutrition, arship fund exceeds $170,000 and numerous was also responsible for sponsoring the 4H the State Holiday Commission for Martin Lu- academic scholarships are awarded each year contest which was held at the Agricultural ther King Jr., the Citizens Commission to Im- to deserving high school students. Park. He redesigned club banners presented prove Michigan Courts, and many others. During the 1970's, Rotary was led by many to visiting Rotarians and organized a River- Father Cunningham's accomplishments prominent individuals. Jack Williams, president side-San Bernadino golf match at Arrowhead have not gone unnoticed. He has been hon- in 1971±72 led our club in constructing plat- Country Club. ored with many notable awards including the forms for tents at the Boy Scout camp in The new work project was undertaken under NAACP's Ira W. Jayne Memorial Medal, the IdylwildÐwas also instrumental in having our the presidency of Greg MacDonald in 1980± June 22, 1995 CONGRESSIONAL RECORD — Extensions of Remarks E 1323 81. Greg being one of our youngest presi- Tom Holienhorst and was our first female The highlight of Jim Milam's year was the dents, had a lot of energy and was respon- member. Bill also saw our meetings moved to visit of then President Bush to Riverside. Ro- sible for starting the work on Agricultural Park. the Sheraton Hotel as the Mission Inn was still tary was the host and it was a great success John Beal, our president in 1981±82, had being restored. The Riverside East Club, a as many Rotarians from all over the district at- an extraordinary year for the club. He was new Rotary club, was nurtured by our club as tended to listen to our President. reponsibile for inviting the then Rotary inter- well as hosting the GSE team from Australia. During Jim's Year, Rotary reached out to national president, Stan McCraffey, to River- This was the year we established our scholar- our youth by adopting an elementary school in side to speak at the Paul Harris Foundation ship committee as a permanent standing com- the downtown area. Bryant School became Dinner at Raincross Square. This was the only mittee. the recipient of work projects by Rotarians, of time in Riverside Rotary's history that the Lee Lombard, our president in 1987±88, books donated to the school, and of the pres- international president had visited our commu- started the Dinner Theater which became our ence of Rotarians at monthly school assem- nity. principal fundraiser. We also hosted the GSE John also organized the only joint effort ever team from Denmark. It was in Lee's year that blies. held with the Kiwani's Club of Riverside. The the Rotary International committed to eradicat- Gary Orso, club president in 1993±94, saw joint meeting was held to honor members of ing polio worldwide. Our club successfully con- the club return to the Mission Inn as well as the law enforcement community. The speaker tributed to the program under Lee's leader- continuing the Bryant School project. The Din- was the then-Attorney General, George ship. ner Theatre tradition continued but was aug- Deukmejian. John also had the club host the Palle Gylov became our president in 1988± mented by a silent auction which was respon- District 4 speech contest along with having 89 and vigorously promoted the Dinner Thea- sible for raising a significant sum of money for club members man the Salvation Army Kettle. tre which was a resounding success. Palle our community projects. Of course, our youth In 1982±83 Gene LaHusen became presi- also held up well during his year considering dent and continued the work on the Agricul- continued to be served by our club through that our long time executive secretary, Floretta tural Park. Harvey Ostzon, president in 1983± our contributions to RYLA and our scholarship Pico, retired during his tenure. 84, was most responsible for making the Agri- program. In 1989±90 Bob Probizanski, our new presi- cultural Park a reality. He led the work parties Bob Brown became our president in 1994± dent, continued the tradition of the Dinner to refurbish the park. He also led the club in 95 and had overseen the celebration of the Theatre. He involved many Rotarians and it organizing an auction which was a major fund- club's 75th anniversary. Being recognized by continued to be the highlight of our Rotary raiser. our District 5330 at numerous district events year. He also organized a tour of the jail newly In 1984±85, Frank Gooley was our presi- has brought price to our club. The Bryant constructed in downtown Riverside. dent and promptly faced a problem about School project has been expanded to include Hark Kline, our president in 1990±91, con- where we would meet since the Mission Inn tutoring and mentoring to club members. Stu- tinued the Dinner Theatre tradition with a new was closing down for restoration purposes. dents from Bryant School worked with our club twist: it became the Mystery Dinner Theatre. We finally moved to the UCR commons and and the Riverside Downtown Association in Although a little lengthy, it still raised funds for then to the Holiday Inn. Frank's major accom- planting a Rotary garden in the downtown our club for the good works we were contribut- plishment was organizing a raffle with the area. Although finances have always been a ing to. We also attended a Red Wave baseball other Rotary Club's in the city which raised problem Bob has led the club through the $13,500 for the Agricultural Park. game, a new minor league team, based in Riverside and playing out of the UCR Sports toughest of recessionary times and the future Paul Birgdain, our leader during the 1985± looks very bright. 86 year kept the club moving along in fine Center. fashion. We finished our work at the Agricul- De Armstrong, our president for 1991±92, Indeed, Mr. Speaker, the Riverside Rotary tural Park during Paul's year. continued trying to solve the problem about Club has been an important fixture in the Riv- Bill McGuian became our president for the where our club should meet. We moved to the erside community. On behalf of the people of 1986±87 year which became significant in club Art Museum during his year. De, being a mu- the 43d Congressional District, I wish to ex- history since ours was the first club in the dis- sician, did a tremendous job in organizing our tend my thanks and sincere congratulations trict to admit a woman member. Sandra Leer, Dinner Theatre, adding a touch of class with for their exceptional work throughout the com- a family law practitioner, was sponsored by his musical talents. munity during their 75-year history. Thursday, June 22, 1995 Daily Digest

HIGHLIGHTS Senate passed National Highway System Designation Act. Senate (5) Stevens/Murkowski Amendment No. 1467, to Chamber Action restrict the Department of the Interior from finaliz- Routine Proceedings, pages S8841–S8962 ing a rule with respect to Revised Statute 2477 until Measures Introduced: Five bills were introduced, December 1, 1995, regarding the right-of-way for as follows: S. 955–959. Page S8945 the construction of highways over public lands. Measures Reported: Reports were made as follows: Pages S8924±25 Withdrawn: S. 457, to amend the Immigration and National- ity Act to update references in the classification of Exon Amendment No. 1463, to establish that any children for purposes of United States immigration federal regulatory standard for single trailer length laws. issued pursuant to negotiations authorized under the S.J. Res. 27, to grant the consent of the Congress North American Free Trade Agreement shall not ex- to certain additional powers conferred upon the Bi- ceed fifty-three feet. Pages S8853±54, S8877 State Development Agency by the States of Missouri Peace in South China Sea: Senate agreed to S. and Illinois. Page S8945 Res. 97, expressing the sense of the Senate with re- Measures Passed: spect to peace and stability in the South China Sea, after agreeing to committee amendments. Page S8962 National Highway System Designation Act: Senate passed S. 440, to amend title 23, United Private Securities Litigation Reform Act: Senate States Code, to provide for the designation of the began consideration of S. 240, to amend the Securi- National Highway System, after agreeing to a modi- ties Exchange Act of 1934 to establish a filing dead- fied committee amendment in the nature of a sub- line and to provide certain safeguards to ensure that stitute, and taking action on amendments proposed the interests of investors are well protected under the thereto, as follows: Pages S8849±55, S8875±85, S8924±35 implied private action provisions of the Act, with a Adopted: committee amendment in the nature of a substitute. (1) Exon Amendment No. 1462, to increase safety Pages S8885±S8924, S8935±43 at railroad-highway grade crossings. Pages S8851±53 During consideration of this measure today, the (2) Chafee (for Smith/Gregg) Amendment No. Senate took the following action: 1464, to establish that New Hampshire shall be By 69 yeas to 19 nays, 1 responding present (Vote deemed as having met the safety belt use law re- No. 281), Senate tabled a motion to commit the bill quirements at a rate of not less than 50 percent. to the Committee on the Judiciary. Pages S8922±24 Pages S8875±76, S8885 Senate will resume consideration of the bill and Subsequently, the amendment was modified. amendments to be proposed thereto, on Friday, June Page S8885 23. (3) Warner/Chafee/Baucus Amendment No. 1465, Message From the President: Senate received the to make technical changes and modifications. following message from the President of the United Pages S8878±79 States: (4) Nickles Amendment No. 1466, to permit Transmitting notice of the termination of the sus- States to use assistance provided under the Mass pension of licenses for the export of cryptographic Transit Account of the Highway Trust Fund for cap- items to the People’s Republic of China; referred to ital improvements to, and operating support for, the Committee on Foreign Relations. (PM–57). intercity passenger rail service. Page S8882 Page S8943 D 773